The Blaine City Council revoked the on-sale Sunday liquor license for Onsen, Inc., doing business as Umisushi & Hibachi (Umi), following a notice from the Minnesota Department of Revenue that the license holder had delinquent taxes.

City Clerk Kathy Sorensen told the council staff had received a Department of Revenue notice and that state statute requires revocation when tax clearance has not been received. At a public hearing, owner Mike Sun described a difficult 2024 for his restaurant and asked the council for a second chance. "I put in 90 hours a week," Sun said, explaining his business and family hardships and asking for reinstatement. His wife, Kylie Tran, told the council the restaurant opened in 2020 and struggled through the pandemic and a slow recovery: "Without our liquor license, we've been losing $1,000 over the holiday weekend," she said.

City Attorney Lunan told the council the city had limited options. "Minnesota statute 270C.72 states that if we receive this notice from the Department of Revenue ... the city must revoke the license unless we receive clearance from the Minnesota Department of Revenue," Lunan said, noting the statute removes local discretion. Clerk Sorensen added the Department of Revenue notice had come to the office in late October and the city provided additional time before scheduling the hearing.

Council members expressed sympathy for the owners’ situation and offered to help identify next steps. Council Member Ford said he wanted to ensure the owners received guidance on how to obtain state clearance and any available resources from city staff and departments. Police Chief Pedani confirmed the city had no local law-enforcement violations on the business in recent inspections.

Council Member Newland moved to revoke the license; Council Member Fleming seconded. By voice vote the motion carried and the council revoked the on-sale Sunday liquor license for Umisushi & Hibachi. Clerk Sorensen told the council the license holder could reapply after receiving tax clearance from the Department of Revenue.

The council and several members said they would follow up after the meeting to provide information and offers of assistance to the owners regarding next steps and state processes.