Loading...
2025-05-13 Resolution 12319City of Richfield May 27, 2025 County of Hennepin State of Minnesota 1 of 5 RESOLUTION NO. 12319 Motion by: Hayford Oleary Seconded by: Coleman-Woods FINDINGS AND DECISION RELATED TO THE SUSPENSION OF THE TOBACCO LICENSE OF LYNDALE PUMP N’ MUNCH (D/B/A “PUMP N’ MUNCH”) LOCATED AT 6300 LYNDALE AVENUE SOUTH, RICHFIELD, MINNESOTA WHEREAS, Lyndale Pump N’ Munch (“Licensee”), a Minnesota company, operates a retail establishment located at 6300 Lyndale Avenue S., Richfield, Minnesota (“Licensed Premises”) and sells tobacco products pursuant to a tobacco license issued by the City of Richfield (“City”); and WHEREAS, pursuant to Richfield City Code Subsection 1146.05, tobacco retailers are required to be licensed by the City to legally operate; and WHEREAS, the City takes pride in the ongoing efforts to keep tobacco, cannabis, and flavored products out of the hands of underage individuals; and WHEREAS, the Richfield City Council supports strict enforcement of its tobacco ordinance to accomplish its goal of curbing sales to underage individuals while respecting the due process rights of license holders; and WHEREAS, City staff are recommending a suspension of Licensee’s tobacco license based on the egregious nature of certain violations by Licensee and blatant disregard for requirements in the City’s tobacco ordinance; and WHEREAS, after reviewing and discussing the pertinent files and information from staff and the public safety department and consideration of the testimony and input from Licensee, the City Council makes the following findings with respect to Licensee’s tobacco license: A.Richfield City Code Subsection 1146.09, subd. 1 prohibits licensees from selling tobacco products to any person under the age of 21; and B.Richfield City Code Subsection 1146.09, subd. 6 prohibits the sale of flavored products by licensed establishments; and C.Richfield City Code Subsection 1146.03, subd. 20 defines “flavored product” as “[a]ny licensed product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by an ordinary consumer either prior to or during the consumption of the product, including, but not limited to, any taste or smell relating to chocolate, cocoa, menthol, mint, wintergreen, vanilla, honey, fruit, or any candy, dessert, alcoholic beverage, herb, or spice. A public statement or claim, whether express or implied, made or disseminated by the manufacturer of a licensed product, or by any person authorized or permitted by the manufacturer to make or disseminate public statements concerning such products, that a product has or produces a taste or smell other than a taste or smell of tobacco will constitute presumptive evidence that the product is a flavored product.” D.In August 2023, City staff personally visited all licensed tobacco retailers, including the Licensed Premises, to provide educational materials related to the flavor prohibition and answered retailer questions about the new ordinance. The Association for Non-Smokers- Minnesota also sent a postcard size graphic of what was legal and illegal to sell. The new ordinance gave retailers five months to sell their flavored products before going into effect on City of Richfield May 27, 2025 County of Hennepin State of Minnesota RESOLUTION NO. 12319 2 of 5 January 1, 2024. E. In February 2024, Richfield Police received a tip alleging the Licensee was engaged in the illegal sale of tobacco and THC products to juveniles and were not requiring proof of any identification or age in the sale of such products. F. In December 2024, Richfield staff were notified of possible fraud by a tip that alleged the Licensee was selling tobacco products stolen from other area metro gas and tobacco shops and the information from the tip was shared with the Minnesota Department of Revenue (“DOR”) as the gas station had previously been investigated for tax evasion under similar reports. G. On January 13, 2025, DOR conducted an inspection of the Licensed Premises and during such inspection seized numerous items as contraband and noticed a locked backroom of the store and asked for access. Licensee’s staff denied entry on the grounds that only the owner had access. H. The property seized by the DOR in their investigation on the Licensed Premises classified as contraband under Minn. Stat. § 297F.21are subject to statutory civil and criminal penalties and were described by the DOR as: a. Cigarette packages or tobacco products obtained from an unlicensed seller. b. Tobacco products on which the tax has not been paid by a licensed distributor. c. Any cigarette packages or tobacco products offered for sale or held as inventory for which there is not an invoice from a licensed seller as required under section 297F.13, subd. 4. I. On January 14, 2025, the DOR provided written notice to Licensee of all seized contraband and informed Licensee of its right to judicial review. J. On January 17, 2025, the Richfield Police Department received an additional tip with photos of tobacco flavored products displayed for sale at the Licensed Premises, together with a complaint that juveniles are allegedly admitting to purchasing flavored vapes from Licensee in violation of the City Code. K. On February 12, 2025, based on the previous tips received, the Richfield Police Department conducted an undercover buy of flavored tobacco at the Licensed Premises and attempted to purchase flavored nicotine products. Licensee’s employee told the Officers they did not sell any vaporizers containing nicotine. L. Later in the day on February 12, 2025, a Richfield Police Officer conducted a traffic stop near the area of the Licensed Premises of a speeding vehicle whose occupants appeared to be under the age of 21. During the stop, Officers observed a vaporizer in the center console of the vehicle and the occupants handed over an additional vaporizer. Both vaporizers contained nicotine, and the occupants admitted purchasing the vaporizers at the Licensed Premises without being asked for identification. M. In early February 2025, the City received a tip that unlicensed “marijuana” sales were occurring at the Licensed Premises. City of Richfield May 27, 2025 County of Hennepin State of Minnesota RESOLUTION NO. 12319 3 of 5 N. On February 13, 2025, the Richfield Police Department obtained a search warrant to search the Licensed Premises. During execution of the warrant, Richfield Officers found roughly 2412 items containing flavored nicotine that were seized from the store. The following items were taken as inventory of the search warrant: a. 43 flavored "Geek Bar" nicotine vapes. b. 43 miscellaneous flavored nicotine vapes. c. A box containing 63 "Loon" flavored vapes. d. 60 sealed packs of flavored cigarettes and vapes. e. 75 packs of flavored cigarettes. f. 78 tins of flavored nicotine and tobacco products. g. 93 flavored nicotine vapes. h. 12 miscellaneous flavored products. i. 294 flavored nicotine products. j. A fabric bag that contained miscellaneous receipts, three Viagra prescription pill bottles, that contained Viagra, a sign written in Arabic, with a price of $49.00 and $1,720 cash. k. 16 flavored American Spirit cigarettes. l. 256 flavored Hookah tobacco packs. m. An envelope that contained $6,000 cash. n. $5,765 in cash. o. 7 different flavored vapes . p. 859 flavored tobacco items. q. 513 flavored items. O. On April 9, 2025, the City received notice from DOR that although Licensee had the right to judicially challenge the seizure of the contraband by DOR, it did not do so, and all property seized was forfeited to the State. WHEREAS, Richfield City Code Subsection 1146.05 states that a license may be denied, suspended or revoked by the council, after an investigation and public hearing where the licensee is granted the opportunity to be heard, for one (1) or more of the following reasons: (a) The operation of the business is in conflict with any provision of this code. (b) The operation of the business is in conflict with any health, fire, building, building maintenance, zoning, or any other applicable codes or laws. (c) The applicant or licensee has failed to comply with one (1) or more provisions of this section or any statute, rule or ordinance pertaining to the sale of tobacco, tobacco products, tobacco-related devices, electronic delivery devices or nicotine or lobelia delivery products. (d) The applicant has committed fraud, misrepresentation or bribery in securing or renewing a license. WHEREAS, on April 7 and April 14, 2025, the City sent notices to the Licensee stating the staff’s intent to recommend to the City Council that Licensee’s tobacco license be revoked based on the city code violations discovered as a result of the findings during the traffic stop on February 12, 2025, and executed search warrant and investigation performed by the Richfield Police Department on February 13, 2025 and informing Licensee of its right to a hearing. City of Richfield May 27, 2025 County of Hennepin State of Minnesota RESOLUTION NO. 12319 4 of 5 WHEREAS, after discussions between staff, Licensee’s legal counsel, and the City Attorney, staff agreed to recommend to the City Council a lengthy suspension of the license in lieu of revocation conditioned upon certain terms and Licensee has indicated consent of the same. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. The recitals outlined above are hereby adopted by the Council as factual findings and are fully incorporated herein. 2. The findings of the Richfield Police Department upon the voluntary statements from underage individuals during a valid traffic stop and the execution of a valid search warrant of the Licensed Premises substantiate the Licensee’s violations of City Code Subsection 1146.09, subd. 1 (prohibition of the sale of tobacco products to persons under the age of 21) and Subsection 1146.09, subd. 6 (prohibition of the sale of flavored products by licensed establishments). 3. The failure of the Licensee to comply with the provisions of the Richfield City Code pertaining to the sale of tobacco and flavored products as cited above is grounds for the suspension of a license by the City Council as authorized under City Code Subsection 1146.05, subd. (c). 4. The Minnesota Department of Revenue’s seizure of contraband from the Licensed Premises and Licensee’s failure to contest such seizure substantiates violation of state law applicable to tobacco products and is a basis for suspension of the license pursuant to City Code Subsection 1146.05. subd. (c). 5. The tobacco license for Lyndale Pump N’ Munch, d/b/a “Pump N’ Munch”, which business was most currently located at 6300 Lyndale Avenue South, Richfield, Minnesota, 55423, is hereby suspended for 90 calendar days beginning on May 13, 2025. and ending on August 11, 2025. 6. During the suspension period, Licensee must comply with all applicable local and state laws and regulations. Any additional violations of City code or state law relating to the operation of the business or the sale of tobacco products before February 12, 2028, will result in immediate revocation of the license. Licensee has acknowledged and agreed to these terms. 7. The City Council finds that the egregious circumstances and violations involved in this matter warrant a lengthy suspension. City of Richfield May 27, 2025 County of Hennepin State of Minnesota RESOLUTION NO. 12319 5 of 5 Adopted by the City Council of the City of Richfield, Minnesota, this 13th day of May, 2025. VOTING AYE VOTING NAY Supple, Mary Supple, Mary Burk, Walter Burk, Walter Christensen, Sharon Christensen, Sharon Coleman-Woods, Rori Coleman-Woods, Rori Hayford Oleary, Sean Hayford Oleary, Sean Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk