ARTICLE IV. LICENSING

10-181 Definitions.

Alcoholic liquor/beverages shall mean any beverage containing one-half of one percent or more of alcohol by volume which is fit for human consumption hereinafter referred to as “spirits.”

Applicant shall mean any person who seeks approval from the city council to sell alcoholic liquor.

Floor/wall area shall be defined as the floor and wall area of useable space for the display, storage and/or sale of spirits.

Licensee shall mean any person who has been granted a license to sell alcoholic liquor in the city by the state liquor control commission.

Michigan Liquor Control Commission shall refer to the sale of a liquor control license and hereinafter shall be referred to as the “liquor control commission.”

Occupancy rate shall mean the number of patrons that can be accommodated within the licensed premises as established by the state police, fire marshal division.

Restaurant shall mean an establishment where the cooking and serving of food for consumption on the property is the principal use. Such determination will be made by size of the kitchen area, the equipment in the kitchen area as required by Oakland County, its hours of operation of serving food equally or exceeding the hours of selling spirits, and the sale of spirits is accessory to the sale of food.

Sale shall mean and include exchange, barter, traffic or furnishing any alcoholic liquor.

(Ord. No. 2038, § 1(4-51), 11-9-95)

10-182 Number of licenses permitted.

The city council may establish by resolution the number of establishments within the city in which the sale or consumption of alcoholic liquor, beer, wine or spirits shall be permitted. The number of such establishments may be less, but in no case greater than the number of such establishments permitted by law of this state.

(Ord. No. 2038, § 1(4-52), 11-9-95)

10-183 State license.

No person shall engage in the business of selling alcoholic liquor, beer, wine or spirits for consumption in the City of Pontiac or elsewhere without first obtaining the appropriate liquor license as required by the liquor control commission.

(Ord. No. 2038, § 1(4-53), 11-9-95)

10-184 Council approval.

No person shall sell alcoholic liquor, beer, wine or spirits for consumption on or off the premises within the City of Pontiac without first having obtained the approval of the council of the city of the application for the license as required by the liquor control commission.

(Ord. No. 2038, § 1(4-54), 11-9-95)

10-185 License applications.

(a)    The council shall not approve any new application for a license to sell beers and/or wine and/or spirits for consumption on and/or off the premises unless:

(1)    The use of the license shall be in connection with and incidental to a bona fide restaurant operation or gourmet/specialty store. The determination as to whether such operation exists or will exist shall be made by the council after its review of the information provided by the appropriate city staff and/or qualified sources and a decision by majority thereof shall be conclusive.

(2)    The use shall be incidental to grocery stores, convenience, and/or party store/drug store.

(b)    Fees shall be established by the director of community development and/or his/her designee and approved by council and may be amended by resolution from time to time.

(Ord. No. 2038, § 1(4-55), 11-9-95)

10-186 Application for license.

(a)    In addition to such application(s) as may be required by the liquor control commission for licensing by the State of Michigan, application shall be made to the council to sell alcoholic liquor, beer, wine or spirits.

(b)    A separate application shall be filed in writing with the licensing technician and forwarded to the Oakland County Health Department, and/or Michigan Department of Agriculture, Department of Police, Fire, Planning and Community Development, and Treasurer/Finance. The application shall be signed by the applicant, if an individual, or by a duly authorized agent thereof, if a partnership or a corporation, verified by oath or affidavit, and seal if available, and shall contain the following statements and information:

(1)    The name, age and address of the applicant in the case of an individual; or, in the case of a copartnership, the persons entitled to share in the profits thereof; in the case of a corporation, the objects for which organized, the names and addresses of the officers and directors and the resident agent; and the names and addresses of the person(s) and/or his nominee of stock holders.

(2)    The citizenship of the applicant; his/her place of birth; and, if a naturalized citizen, the time and place of the naturalization.

(3)    The character of business of the applicant; and in the case of a corporation, the object for which it was formed.

(4)    The length of time said applicant has been in business of that character; or in the case of a corporation, the date when its charter was issued.

(5)    The location and description of the premises or place of business which is to be operated under such license.

(6)    The location and description of any other places of business of the same nature of which the applicant owns or any of his/her stockholders own, or in the case of partnership, any of the other partners own either individually or jointly.

(7)    A statement whether applicant has operated or made application for a similar or other license on any premises other than described in this application, and the disposition of such license or application.

(8)    A statement that applicant has never been convicted of a felony and is not disqualified to receive a license by reason of any matter of thing contained in this article or the laws of the State of Michigan.

(9)    A statement that the applicant will not violate any of the laws of the State of Michigan, any of the United States or any ordinances of the City of Pontiac or the administrative rules of any regulatory agency and the conduct of its business.

(10)    An accurate record and history of any liquor license complaint violations by the applicant, by a corporation or entity the applicant has worked for or had a substantial interest in, or by a parent or subsidiary corporation of the applicant for the immediate preceding five years.

(11)    The application shall be accompanied by building and site plans showing the entire structure of the premises, and in particular the specific areas where the license is to be utilized. The plans shall demonstrate adequate off-street parking, lighting, refuse disposal facilities, and where appropriate, adequate plans for sound barriers and noise control.

(12)    The total cost and dollars to be expended by the licensee for the licensed premises.

(13)    The menu for the proposed licensed establishment together with the breakdown of the anticipated revenues from food and nonalcoholic beverages, alcoholic beverages and other revenues.

(14)    In the case of the transfer, the same information is required as required in this subsection.

(15)    In addition to subsection (13), the transferee-applicant shall furnish a copy of any and all files which may be in the Michigan Liquor Control Commission’s possession regarding that commission’s investigation of the transferee as a present licensee, or as a previous licensee, or in which transferee has or has not a partial interest in.

(16)    A letter of agreement shall be completed by the applicant, signed, dated, and notarized to comply with the ordinances, rules, and regulations set forth in the Municipal Code of Pontiac, Michigan, including, but not limited to:

a.    Private security guard as required.

b.    Parking lot security-cameras, lighting.

c.    Parking lot properly stripped/handicapped designation.

d.    Posting of no loitering signs.

e.    Fencing.

f.    Privacy wall.

g.    Contained dumpster.

h.    Proper landscape.

i.    Training from Oakland County Environmental Health.

j.    Training from Pontiac Police Department-Vice Section.

k.    “Single-sales” of cigarettes not allowed.

l.    Repackaging or “single-sales” of ice/cups not allowed.

m.    No pornographic material displayed; must be covered behind counter.

(Ord. No. 2038, § 1(4-56), 11-9-95; Ord. No. 2148, § 1, 10-10-02)

10-187 Restrictions on licenses.

No license shall be issued to:

(1)    A person whose license has been revoked for cause.

(2)    A person who, at the time of application or renewal of any license issued hereunder, would not be eligible for such license upon a first application.

(3)    A co-partnership, unless all of the members of such co-partnership shall qualify to obtain the license.

(4)    A corporation, if any officer, manager or director thereof, or a stock owner or stock holders of such corporation would not be eligible to receive a license hereunder for any reason.

(5)    A person whose place of business is conducted by a manager or agent, unless such manager or agent possesses qualifications similar to those required of the licensee.

(6)    A person who has been convicted or been found responsible for a violation of any federal or state law or administrative rules of the liquor control commission concerning the manufacture, possession or sale of alcoholic liquor, beer, wine or spirits; or similar violation of another state or country.

(7)    A person who does not own the premises for which a license is sought or does not have a lease therefor for the full period for which the license is issued.

(8)    Any law enforcement official or any member of the council, or to any such official having interest in any way either directly or indirectly in the manufacture, sale or distribution of alcoholic liquor, beer, wine or spirits.

(9)    Where there exists a violation of the applicable electrical, building, mechanical, plumbing, and fire prevention codes, applicable zoning regulations, or other applicable health regulations where such violation can be corrected as practicable as possible.

(10)    Where it is determined by a majority of the council after its review of documentation from the appropriate city staff and/or qualified sources that the premises do not, or will not reasonably soon after commencement of operations, have adequate off-street parking, lighting, refuse disposal facilities, noise or nuisance control, or such new construction or remodeling as proposed would not be completed.

(11)    Where council determines by majority vote that the location proposed for a licensed liquor establishment will have an adverse effect on the community with consideration given to traffic safety conditions, access ability to major streets or highways, distance from public or private schools, impact on adjacent residential districts, zoning classifications and the availability of parking.

(Ord. No. 2038, § 1(4-57), 11-9-95)

10-188 Locations where sale for consumption prohibited.

No place where alcoholic beverages are sold for consumption on and/or off the premises shall be permitted:

(1)    In the case of a tavern or “Class C” license, within 500 feet of any other establishment where alcoholic beverages are sold for consumption on the premises excepting the central business district.

(2)    Within 500 feet of an improved and equipped school ground or playground excepting the central business district.

(3)    Within 500 feet of a church, such distance to be measured from the nearest point of the church property to the nearest point of the building in which such business is to be conducted.

(4)    On the street where, by virtue of density of traffic or other conditions, the proposed use would, in the judgment of the city council, after its review of documentation from the appropriate city staff and/or qualified sources, constitute a traffic hazard excepting the central business district.

(5)    At any place where, by reason of insufficient lighting or lack of private security, or other conditions, the proposed use would constitute a nuisance or a moral hazard in the judgment of the city council after its review.

(6)    In a residential zone.

(7)    In addition to (1) through (6), any place where it is not permitted as found in the Pontiac City Zoning Ordinance.

(Ord. No. 2038, § 1(4-58), 11-9-95)

10-189 Required seating capacity of licenses at hotels and motels.

(a)    All holders of Class “A” and Class “B” licenses shall have the following accommodations:

(1)    All motels and hotels selling alcoholic liquor for consumption on the premises shall contain 50 or more guest rooms and have a dining table capacity for 100 or more persons, and if additional counter space is provided for the dispensing and sale of alcoholic liquor, such counter space shall accommodate not more than 20 percent of the seating capacity of the entire dining room.

(b)    Section 10-188 of this article does not apply to this section.

(Ord. No. 2038, § 1(4-59), 11-9-95)

10-190 Transfer of existing licenses.

(a)    In addition to any other restrictions in this article, the transfer of any existing liquor license covered hereunder shall be subject to each of the requirements, criteria and procedures, including fees, set forth in this article for the granting of a transfer of the existing liquor license.

(b)    In addition, the transferee/applicant shall furnish a copy of any and all files which may be in the liquor control commission’s possession regarding that commission’s investigation of the transferee as a present licensee, or as a previous licensee, or in which transferee has or had a partial interest.

(c)    The transfer of any existing liquor license from one location to another location will be subject to the scrutiny by the city council after its review of documentation from the appropriate city staff and/or qualified sources and as found under section 10-191

(Ord. No. 2038, § 1(4-60), 11-9-95)

10-191 Term of license.

(a)    Each license shall be displayed in a conspicuous spot in the building for that current year.

(b)    Licensee shall remove any expired license on display and replace it with the current license. Licensee shall not attempt nor act in any fraudulent manner in regard to the display of any liquor license.

(c)    Approval of a license shall be for a period of one year subject to review by the council upon continued compliance with the regulations of this article. Approval of a license shall be with the understanding that any necessary remodeling or new construction for the license shall be completed within six months of the action of the council or the liquor control commission approving such license, whichever last occurs. Any unusual delay in the completion of such remodeling or construction may subject the license to revocation.

(Ord. No. 2038, § 1(4-61), 11-9-95)

10-192 Annual license review.

(a)    The council shall undertake a review of any license annually for purposes of making recommendations to the liquor control commission regarding renewal of said licenses. Council shall consider whether a licensed establishment has been operated during the existing license year in a manner consistent with the provisions of this chapter and all other applicable laws and regulations; whether continued operation of the licensed establishment is reasonably likely to affect adversely investment in real property in the neighborhood of the establishment, and this consideration shall include, inter alia, entertainment, events or promotions; and whether impact upon a neighborhood is otherwise contrary to the peace, order and tranquility of the community.

(b)    There shall be a fee for each application for renewal. All responses to the application and accompanying letter must be answered.

(c)    Fees for renewal shall be established by the director of community development and/or his/her designee and approved by council and may be amended from time to time by resolution.

(d)    The dates for review by council shall be completed by the last day of February, annually to provide for any hearings that may arise as a result of a recommendation of nonrenewal of said license to the liquor control commission.

(e)    A written notice shall be mailed to any licensee whose license is not recommended for renewal and shall be given ten days to make written request to the city clerk for a hearing. A hearing date shall be set by city council for hearing proceedings to be conducted during the city’s liquor license annual review to ensure all findings are forwarded to the liquor control commission prior to the state liquor license renewal period between April and May, annually.

(Ord. No. 2038, § 1(4-62), 11-9-95; Ord. No. 2148, § 1, 10-10-02)

10-193 Revocation of license.

Each establishment within the city for which a liquor license is granted shall be operated and maintained in accordance with all applicable laws and regulations, and in a clean and sanitary manner meeting the approval of the Oakland County Health Department and/or Michigan Department of Agriculture. Upon any violation of this section or any section of this chapter, the council may, after a notice and hearing, request the liquor control commission to revoke such license as hereinafter provided.

(Ord. No. 2038, § 1(4-63), 11-9-95)

10-194 Procedure for denial, recommendation of nonrenewal, suspension, or revocation.

(a)    The city may refuse to issue a license or grant renewal of the license or suspend or revoke the license pursuant to Pontiac City Ordinance section 1-24 and the following subsections.

(b)    Before filing any objection to renewal or request for revocation of a license with the liquor control commission, council shall serve the licensee by first class mail mailed not less than seven days prior to hearing with notice of a hearing, which notice shall contain the following:

(1)    Notice of proposed action.

(2)    Reasons for the proposed action.

(3)    Date, time and place of hearings.

(4)    A statement that the licensee may present evidence, any testimony, and confront adverse witnesses.

(c)    Said hearing shall be open to the public and notice of said public hearing shall be mailed to each residence within 500 feet of the property of the licensed establishment, and shall be published in a newspaper of general circulation in the City of Pontiac.

(d)    Following hearing, the council shall submit to the license holder and the commission a written statement of its findings and determination.

(e)    No license shall be revoked or not renewed unless revoked or not renewed by a roll call vote of five members elect of the council.

(Ord. No. 2038, § 1(4-64), 11-9-95)

10-195 Criteria for nonrenewal or revocation.

The council may recommend nonrenewal or revocation of a license to the liquor control commission upon a determination by it that based upon a preponderance of the evidence presented at public hearing than any of the following exist:

(1)    Violation of any of the restrictions on licenses set forth in sections 10-139 and/or 10-140, or any provision of this chapter or any other law or ordinance or statute and the administrative rules or provision of the Michigan Liquor Control Act.

(2)    Maintenance of a nuisance upon the premises, including, but not limited to, any of the following:

a.    Existing violations of building, zoning, plumbing, mechanical, electrical, health, fire prevention or regulatory codes.

b.    A pattern of patron conduct in the neighborhood of the licensed establishment which is in violation of the law and/or disturbs the peace, order and tranquility of the neighborhood.

c.    Failure to maintain the grounds and exterior of the licensed establishment, including litter, debris, refuse blowing or being deposited on adjoining properties.

d.    Entertainment without a permit and/or entertainment which disturbs the peace, order and tranquility of the neighborhood.

e.    Any advertising, promotion or activity which by its nature causes, creates or contributes to disorder, disobedience to rules, ordinances or laws, or contributes to the disruption of normal activity of those in the neighborhood of the licensed establishment.

(Ord. No. 2038, § 1(4-65), 11-9-95)

10-196 License approval procedure.

No license under this chapter shall be approved or disapproved unless approved or disapproved by a roll call vote of at least four elected members of the council.

(Ord. No. 2038, § 1(4-66), 11-9-95; Ord. No. 2148, § 1, 10-10-02)

10-197 Approval of city departments.

Before the approval of the council is given of the issuance, renewal or transfer of a liquor license, the application for such issuance, renewal or transfer shall be referred to the following city departments: planning, community development, police, fire, and treasurer/finance. The written reports of all such departments certifying compliance with all applicable laws and regulations shall be received by the mayor before such application shall be approved by the council.

(Ord. No. 2038, § 1(4-67), 11-9-95)

10-198 Payment of obligations to the city.

All personal property taxes, real property taxes, delinquent water bills, parking fees, city loans, or other obligations due and payable to the city shall be paid in conjunction with any liquor license request requiring council approval prior to said request being processed for issuance, transfer, or renewal of such license.

Failure to comply with payment obligations shall result in disapproval for issuance, transfer, or renewal of any liquor license request.

(Ord. No. 2038, § 1(4-68), 11-9-95; Ord. No. 2148, § 1, 10-10-02)

10-199 Discretion of council.

Nothing in this chapter shall be construed to require the council to approve any application nor to limit the discretion granted to the council by section 17 of Act No. 8 of the Public Acts of Michigan of the 1933 Extra Session (M.C.L. 436.17, et seq.) as amended, except as expressly provided for in this chapter.

(Ord. No. 2038, § 1(4-69), 11-9-95)

10-200 Bowling establishments.

In cases where the sale of alcoholic liquor for consumption on the premises is conducted in connection with a bowling alley, all sale, delivery and/or consumption of alcoholic liquor shall be carried on within the limits of an area physically separated by walls from the premises where the bowling is conducted. The walls shall extend from the floor to the ceiling and access doors shall be kept closed except when actually being used for ingress or egress. No alcoholic liquor shall be sold, delivered and/or consumed within the area devoted to bowling at any time unless a concourse permit is approved by the city and issued by the liquor control commission. Violation of this provision shall be considered grounds for the council to request the revocation of, or refuse to approve the renewal of, the liquor license for such establishment.

(Ord. No. 2038, § 1(4-70), 11-9-95)

10-201 Reserved.

Editor’s note—Ord. No. 2148, § 1, adopted Oct. 10, 2002, repealed § 10-201, which pertained to penalties and derived from Ord. No. 2038, § 1(4-71), adopted Nov. 9, 1995.