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Council revokes grandfathered Class B liquor license for '507' after three strikes
Summary
After extended debate about precedent and a last‑minute offer from the building owner, the Mankato City Council voted to adopt a resolution imposing a $2,000 civil penalty and revoking the grandfathered Class B liquor license held by MLJB Companies LLC (doing business as 507).
The Mankato City Council on Dec. 8 voted to revoke the grandfathered Class B liquor license held by MLJB Companies LLC — the license tied to the downtown venue known as the 507 — and imposed a $2,000 civil penalty.
City licensing staff told the council the license had accumulated three strikes for violations related to underage consumption, service and employee training. Staff noted the licensee had closed the location after the building owner did not renew the lease and that, late Friday, the building owner indicated an intent to purchase the license. Staff presented two options: immediate revocation with a civil penalty, or a conditioned acceptance allowing the building owner to assume the license under strict deadlines and retained strikes.
Council members debated both options at length, citing the purpose of the strike matrix, fairness to other businesses and the potential for a new owner to correct operations. Council member Lavin moved to adopt the original staff recommendation for revocation and the penalty; the motion carried by voice vote. The council clerk read the roll call and recorded affirmative votes on the motion.
City staff clarified that strikes remain tied to the license regardless of ownership changes and that a revoked grandfathered Class B license would eliminate the location’s grandfathered status under city code; a new operator may instead apply for a different class of liquor license in the future and would need to meet applicable food‑service ratio and licensing requirements.
The council’s action ends the current Class B privilege at the location; the building owner may still pursue a new license under the ordinary application process.
