Council reviews proposed exception to tobacco license transfer rules for gas stations; second reading set for May 27

City staff presented an ordinance (first reading) proposing an amendment to the code to allow exceptions for transfer of tobacco retail licenses for vehicle service stations (gas stations). The ordinance would modify the city’s transfer rules to permit transfers in some cases where current proximity restrictions to youth‑oriented properties would otherwise bar a transfer.

Kelly (city staff) told council the proposal responds to a problem: many of the city’s tobacco retail licenses are within 1,000 feet of youth‑oriented properties, which can prevent license transfers when a business changes ownership. The staff memo included alternate options explored in April, including an arms‑length transfer test or a broader transfer allowance; the presented text recommends an exception specifically for vehicle service stations.

Councilmember Cynthia Vermillion asked what percentage of gas‑station sales come from tobacco; Kelly said the city does not track site‑specific tobacco sales and any data would come from private businesses. Vermillion also asked whether underground storage tanks and potential contamination make gas‑station sites difficult to redevelop; staff responded that underground tank regulation is a state function and that environmental cleanup can make redevelopment less attractive to buyers.

Staff said the second reading public hearing on Ordinance 25‑14 will be held May 27. No vote on the ordinance occurred at the May 12 meeting.

Ending

Staff said they will research additional information requested by council (for example, prevalence of tobacco sales at gas stations and any known state records on underground‑tank issues) before the May 27 second reading; no transfer changes take effect until ordinance adoption.