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Colona staff seeks code updates to clarify liquor-license classes and fees; committee asks for more research

Colona Finance Committee · July 15, 2026
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Summary

Staff presented proposed updates to Colona's liquor-code definitions and fee schedule to clarify on-premise/off-premise classifications and video gaming allowances; the committee asked for more research on limiting license counts and classification language before forwarding anything to council.

Staff presented a packet proposing updates to chapter 2 of the city code governing liquor control and said the current definitions and classifications are outdated and ambiguous. The packet included sample language and fee schedules from neighboring municipalities for committee review.

The staff member described ambiguity businesses reported during license renewals, particularly around combined on-site consumption and carry-out sales and whether video gaming should be treated within certain classes. "As we renewed licenses this year, there was a great deal of ambiguity when I talked to the business owners in regards to what our ordinance ... how we define each class," staff said. The packet showed examples from Silvis, Moline and Coal Valley and proposed a resolution-based approach to set fees while the ordinance would establish classifications.

Committee members asked whether the city should cap the number of liquor licenses or set closing-time caps tied to license classes; several members noted the prior use of caps for video gaming and suggested a cap could provide leverage to preserve a small-town character. Staff said they did not do a focused review on license caps but would research which neighboring municipalities impose caps and how they align caps to population and square footage.

No ordinance language was adopted. Staff and the committee agreed to continue work in August, with staff to return with suggested classification text, fee values, and information on caps and closing-time controls.

The committee also discussed enforcement and licensing counts (staff said the city currently issues 10 licenses) and asked staff to solicit input from affected businesses prior to a final recommendation to council.