§ 6-9. Grocery sales for package sales of beer and wine.

(a)

General qualifications. A package licensee must prove that it is a grocery store.

(b)

Making application. The licensee must prove that it has experienced grocery sales of at least $25,000.00 during the three months immediately preceding the filing of the application at the licensed premises or the premises to be licensed, excluding the sale of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). Such proof shall be made by providing copies of sales tax returns and cancelled checks or other evidence of payment of sales tax together with an affidavit from the licensee or the person who shall hold the license on behalf of the licensee, swearing or affirming under oath that the premises have experienced grocery sales of at least $25,000.00 excluding the sale of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). The mayor and council may, in their discretion, require an audited financial statement by a certified public accountant providing for a detailed analysis of sales, categorizing sales of gasoline, motor oil, cigarettes, and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). The cost of such audited financial statement shall be borne by the licensee.

(c)

Checks and audits after issuance. The licensee is subject to subsequent checks and audits of its books and records after issuance of the license by the city clerk or his designated agent during regular business hours, the cost of which shall be borne by the city. The licensee shall maintain grocery sales of at least $50,000.00, excluding the sale of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items), during the 12-month period immediately preceding such licensee's application for renewal. If the license has been issued for a period of less than 12 months immediately preceding the filing of the application for renewal by such licensee, the $50,000.00 grocery sales requirement shall be prorated for the period in which such licensee has held a license immediately preceding the filing of the application for renewal.

(d)

Checks and audits prior to renewal. The licensee must prove that it has experienced grocery sales of at least $50,000.00 for the period immediately preceding the filing of the application as set forth in subsection (c). Such proof shall be made by providing copies of sales tax returns and cancelled checks or other evidence of payment of sales tax together with an affidavit from the licensee or the person who holds the license on behalf of the licensee, swearing under oath that the premises have experienced grocery sales of at least $50,000.00 during the 12-month period immediately preceding such licensee's application for renewal (or in an amount prorated for the period in which such licensee has held a license immediately preceding the filing of the application for renewal) excluding the sale of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). The mayor and council may, in its discretion, and upon reasonable suspicion that the licensee has not experienced the requisite grocery sales, require an audited financial statement by a certified public accountant, providing for a detailed analysis of sales, categorizing gasoline, motor oil, cigarettes, and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items), the cost of which shall be borne by the licensee.

(e)

Exceptions, chain grocery stores; purchase of going business.

(1)

Chain grocery stores. The provision of this section requiring an applicant to prove grocery sales of at least $25,000.00 during the three months immediately preceding the filing of the application shall not, at the option of any chain grocery store applicant, apply to chain grocery stores. If such applicant's sales do not equal or exceed $250,000.00 for the first three months of operation subsequent to the issuance of a malt beverage and wine license, such license shall be revoked and the applicant must reapply for a malt beverage and wine license, which application shall not be considered for a period of three months subsequent to revocation under this section. The holder of the license on behalf of the applicant must furnish the city clerk sales tax returns and cancelled checks or other evidence of payment of sales tax for its first three months of operation within 30 days of the end of the three-month period in order to demonstrate requisite grocery sales, together with an affidavit from the person holding a license on behalf of the licensee that the subject chain grocery store has experienced grocery sales of at least $250,000.00 during the three-month period. Additionally, the mayor and council may, in its discretion, require an audited financial statement providing for a detailed analysis of sales, categorizing sales of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). The cost of such audited financial statement shall be borne by the licensee.

(2)

Purchase of going business. The provision of this section requiring an applicant to prove grocery sales of at least $25,000.00 during the three months immediately preceding the filing of the application shall not, at the option of the purchaser of a going business holding a valid malt beverage and wine license in the city, apply to such applicant. If such applicant's sales do not equal or exceed $25,000.00 for the first three months of operation subsequent to the issuance of a malt beverage and wine license, such license shall be revoked and the applicant must reapply for a malt beverage and wine license, which application shall not be considered for a period of three months subsequent to revocation under this section. The holder of the license on behalf of the applicant must furnish the city clerk sales tax returns and cancelled checks or other evidence of payments of sales tax for its first three months of operation within 30 days of the end of the three-month period in order to demonstrate requisite grocery sales, together with an affidavit from the person holding a license on behalf of the licensee that the subject grocery store has experienced grocery sales of at least $25,000.00 during the three-month period. Additionally, the mayor and council may, in its discretion, require an audited financial statement providing for a detailed analysis of sales, categorizing sales of gasoline, motor oil, cigarettes and prepared food cooked or heated on the licensed premises (including but not limited to hot dogs, hamburgers, pizza, fried chicken, sandwiches and bakery items). The cost of such audited financial statement shall be borne by the licensee.

(Ord. No. 411, 10-2-02)