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Albert Lea opens hearing on proposed 40% liquor-license fee increase; small-business owner urges a smaller hike
Summary
The Albert Lea City Council opened a Nov. 24 public hearing on a proposed increase to on-sale liquor license fees from $2,000 to $2,800 and off-sale fees from $450 to $560; staff said the on-sale fee has not been raised in 21 years. A Bleachers Sports Bar co-owner told the council the hike would strain small businesses and urged a lower, phased approach; no vote was taken.
The Albert Lea City Council on Nov. 24 opened a public hearing on staff’s proposal to raise the city’s liquor license fees, citing inflation and increased enforcement costs as the rationale.
City Manager (staff) told councilors the on-sale liquor license — currently $2,000 and held by 17 businesses — has not increased in 21 years and that staff recommends raising it to $2,800. Off-sale licenses would rise from $450 to $560, staff said, and the city’s Best Practices training — provided without charge — helps reduce businesses’ liability insurance costs. The manager said notice of the proposal was mailed to license holders and that only one written inquiry had been received to date.
“This is about reflecting actual costs,” the city manager said, pointing to police overtime and administrative time for compliance checks and paperwork. Staff said adoption of the revised fee schedule is expected in December and that the fees would not be due until August 2026.
James Hagen, co-owner of Bleachers Sports Bar & Grill, spoke against the 40% on-sale increase. “I’m here to express my strong opposition to the proposal of 40% increase in liquor license fee, raising it from 2,000 to 2,800,” Hagen said, adding that his business paid $21,973.45 in liquor tax and $31,829 in food tax this year and employs 25 local staff. Hagen warned the increase could force reduced hours, staff cuts or even closure and urged the council to consider a much lower fee.
Several councilors voiced sympathy for small businesses and suggested a phased or smaller increase. Councilor Christiansen said he favored a smaller increase in 2026 even if the city needed to find other levy sources to make up the difference. Councilor Howland and Councilor Anderson said they would support some increase but not a single 40% jump.
City staff and the council discussed procedural constraints: the city manager said state law requires a public hearing for liquor license fee changes and indicated that each separate increase could require its own hearing unless the city attorney determines an alternative approach.
No final vote was taken at the Nov. 24 meeting. Staff indicated the fee schedule adoption is expected to be considered at the council’s first meeting in December, likely Dec. 8, when the council will also act on the budget.
