HomeMy WebLinkAboutResolution No. R25-78 RESOLUTION NO. R25-78
RESOLUTION OF THE CITY COUNCIL TO APPROVE A CONDITIONAL USE
PERMIT FOR THE OWL CAFE TO ALLOW ON-SITE SALE AND CONSUMPTION
OF ALCOHOL AT 203 EAST MAIN, LAUREL,MONTANA.
WHEREAS, on June 27, 2025, Shelly Van Atta submitted a Special Review
Application on behalf of property owner Jodi Roberg, requesting a Conditional Use Permit to
allow on-site sale and consumption of alcohol at the Owl Cafe,located at 203 East Main,legally
described as Laurel Realty Subdivision, Block 2, Lots 7, 8, and 9, Section 09, Township 02
South, Range 24 East, P.M.M., City of Laurel, Yellowstone County, Montana;
WHEREAS, pursuant to Laurel Municipal Code §17.68.040, the Zoning Commission
held a duly noticed public hearing, evaluated the request against the applicable standards of
review, and considered the effect of the proposed use on surrounding land use, city services,
and the Laurel Comprehensive Plan;
WHEREAS, notice of the public hearing was properly advertised and mailed to
surrounding property owners within 300 feet of the subject property in accordance with law;
WHEREAS, on August 20, 2025, after considering public comment, the Zoning
Commission voted 5-2 to recommend that the City Council approve the requested Conditional
Use Permit, finding that the application meets or exceeds all required standards; and
WHEREAS, the City Council finds that the proposed use is consistent with the
objectives of Title 17 of the Laurel Municipal Code, is compatible with surrounding land uses,
and will not adversely affect the public health, safety, and welfare.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Laurel,
Montana, as follows:
1. Approval. The Conditional Use Permit for the Owl Cafe at 203 East Main,
Laurel, Montana, to allow on-site sale and consumption of alcohol, is hereby approved.
2. Conditions. The use shall comply with all applicable provisions of the Laurel
Municipal Code and any other requirements imposed by the State of Montana regarding alcohol
sales and consumption. The City Council may impose additional conditions if necessary to
ensure compatibility with surrounding uses.
3. Effective Date. This Resolution shall be effective immediately upon adoption.
Introduced at a regular meeting of the City Council on the 91' day of August, 2025, by
Council Member Sparks.
R25-78 Approve Owl Cafd Conditional Use Permit
PASSED and APPROVED by the City Council of the City of Laurel the 9th day of
August, 2025.
APPROVED by the Mayor the 91h day of August, 2025.
CITY OF LAUREL
(I-D
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Dave Waggoner,Mayor(
ATTEST: ��° G��j•OF(,qU
re y tr er, C erk-Treasurer
APPROVED AS TO FORM:
Michele L. Braukmann, Civil City Attorney
R25-78 Approve Owl Cafe Conditional Use Permit
CITY
115 WHALS �i� Of Laurel J
PUB.WORKS:628-4796 y iL
WATER OFC.:628-7431
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COURT:628-1964 P.O.Sox 10 IJ�
FAX 628-2241 Laurel,Montana 59044
Office of the Director of Public
Works
Zoning Commission Recommendation
CONDITIONAL USE PERMIT REPORT CUP-25-02
Owl Cafe—On Premise Alcohol Sales and Consumption
August 25, 2025
INTRODUCTION
On Friday,June 27,2025, Shelly Van Atta submitted a Special Review Application for onsite sales
and consumption of alcohol within the Laurel Central Business Zoning District (CBZD). The
property involved in the request is the Owl Cafe owned by Jodi Roberg, 203 East Main, and is
described as Laurel Realty Subdivision, Block 2 Lots 7, 8, and 9, Section 09, Township 02 South,
Range 24 East, P.M.M., City of Laurel, Yellowstone County, Montana.
The project will be presented to the Laurel—Yellowstone City County Planning Board on August
20, 2025, with a recommendation to the Laurel City Council for final decision in late September.
PLANNER RESPONSIBILITY
A. Consult with other departments of the City or County to evaluate the impact of the special
review upon public facilities and services; ACCOMPLISHED
B. Study each application with reference to it appropriateness and effect on existing and
proposed land use, and reference to the comprehensive plan; ACCOMPLISHED
C. Advertise twice in a newspaper of general circulation in the jurisdictional area of the Laurel
—Yellowstone City County Planning Board; ACCOMPLISHED
D. Notify by mail, the applicant or his agent at least five days prior to the date of the public
hearing of the date, time and place of such hearing; ACCOMPLISHED
E. Notify, by mail, all property owners within 300 feet of the exterior boundaries of the
property subject to the special review of the date, time and location of the public hearing;
ACCOMPLISHED
F. After the public hearing and as part of the public record, report findings and conclusions
and recommendations to the Zoning Commission. ACCOMPLISHED
STANDARD OF REVIEW Zoninp, Commission/City Council
➢ The request complies with the requirements of§17.68.040 of the City of Laurel Zoning;
➢ The request is consistent with the objectives and purpose of Title 17 of the Laurel
Municipal Code;
➢ The proposed use is compatible with surrounding land use or is otherwise screened and
separated from adjacent land in such away as to minimize adverse effects;
➢ The zoning commission shall consider and may impose modification or conditions
concerning, but not limited to:
o Street and road capacity,
o Ingress and egress to adjoining streets,
o Off-street parking,
o Fencing, screening and landscaping.
o Building bulk and location,
o Usable open space,
o Signs and lighting,
o Noise, vibration, air pollution and similar environmental influences.
VARIANCES REQUESTED
N/A. None Requested.
RECOMMENDATION:
The Zoning Commission(on a 5-2 Vote)finds that the application, supporting documentation meet
or exceeds the Standard of Review and Recommends that the City Council approve the Conditional
Use for the onsite sale and consumption of alcohol at the Owl Cafe (203 East Main, and is
described as Laurel Realty Subdivision,Block 2 Lots 7, 8, and 9, Section 09, Township 02 South,
Range 24 East, P.M.M., City of Laurel, Yellowstone County, Montana).
J
CITY ALL
115 W H G ST.PLANNING.628-4796 City Of Laurel
WATER OFC.:628-7431 P.O.Box 10 V f,
COURT:628-1964
FAX 628-2241 Laurel,Montana 59044
Office of the City Planner
PUBLIC HEARING NOTICE
The Laurel—Yellowstone City-County Planning Board and Zoning Commission will conduct a public hearing
on Wednesday,August 20,2025,on the following applications. The meeting will begin at 6:00 p.m. in the
City Council Chambers at City Hall, 115 West First Street, Laurel, Montana.
1. A conditional use request for the on premise sale and consumption of alcohol at the Owl Cafe
located at 203 East Main Street, Laurel Montana. The property is a part of the Laurel Central
Business District (CBD) and may be described as LAUREL REALTY SUBD, Section 09, Township 02
South, Range 24 East, BLOCK 2, Lots 7, 8, and 9.
In addition to the requirements of the CBD,the Zoning Commission/City Council will consider the
following items in the Special Review Process:
➢ The request complies with the requirements of the City of Laurel Zoning;
➢ The request is consistent with the objectives and purpose of Title 17 of the Laurel Municipal
Code;
➢ The proposed use is compatible with surrounding land use or is otherwise screened and
separated from adjacent land in such a way as to minimize adverse effects;
➢ The zoning commission shall consider and may impose modification or conditions
concerning, but not limited to:
o Street and road capacity,
o Ingress and egress to adjoining streets,
o Off-street parking,
o Fencing,screening and landscaping.
o Building bulk and location,
o Usable open space,
o Signs and lighting,
2. Noise,vibration, air pollution and similar environmental influences.
Public comment is encouraged and can be provided in person at the public hearings on August 20th and
again at the City Council meeting on September 91h. Public comment can also be made via email to the
Planning Director, or via letter to the Planning Department office at 115 West 1"Street Laurel, MT 59044.
A copy of the applications and supporting documentation is available for review upon request at the
Planning Department office. Questions regarding this public hearing may be directed to the Planning
Director at 628.4796 ext. 5302, or via email at cityplanner@laurel.mt.gov.
June 27, 2025
Laurel City Council
115 West First Street
Laurel, MT 59044
Dear Friends,
In compliance with Laurel Municipal Code 17.68, this letter is a request for a Special Review to
approve the Montana Department of Revenue's application to purchase the Sonny O'Day's, Inc.,
All-Alcoholic Beverages License, by the owners of the Owl Cafe: Jodi Roberg and her family.
In order to verify the truthfulness of all facts presented in this letter, we pre-submitted this letter
to, and received approval to send it to you by, the Montana Departments of Revenue and Justice.
This letter also was approved by the law offices of Crist, Krogh,Alke &Nord, PLLC.
In this letter, I will be providing a more extensive explanation than you might be expecting,but I
am doing so with the sole intent of eliminating any preconceived ideas in the greater-Laurel
community that are based on rumors instead of fact. I want to put to rest any falsehoods that
might negatively affect Jodi Roberg and her family; their future purchase of this license; and,
their future bar-and-casino operation using this license.
The Purchase Application submitted by Jodi Roberg and her family is the only Purchase
Application the State of Montana has received and will consider for this license. Because Jodi
Roberg and her family, owners of another bar-and casino in Montana, have an existing license
that has been in, and remains in, good standing with the State of Montana, their Purchase
Application for this license enjoys broad support from the Montana Departments of Revenue and
Justice.
As you may be aware, this license is historic,being the longest solely-held liquor license in the
State of Montana. It has been an integral part of the greater-Laurel community for nearly 80
years.
Because this license holds an irreplaceable chapter in Montana and Laurel history, I know well
that its loss to the City of Laurel would be immeasurable. That is why, at my great expense, I
have worked diligently to keep the license in Laurel.
Because of the license's historical importance, dating back decades, well before Montana
established a quota system, I have been told that I may sell my license,without the gambling
component, in Billings. The liquor license, alone, sells for more in Billings than I can get for
both the liquor and gambling components in Laurel. I have had a number of inquiries from
prospective Billings purchasers; however, I am reluctant to sell outside of Laurel because I know
what a loss it would be to the City of Laurel, financially and historically. If I can keep the license
in Laurel, adding to the city's tax base, I will.
Page Two
I understand that the Montana Department of Revenue mistakenly allocated more liquor licenses
than their quota system allows within the City of Laurel boundaries, and thus, the state will issue
no new liquor licenses for the City of Laurel. This would mean that if I sell my license to a
Billings purchaser, Laurel would have one less liquor license on which it may earn lucrative tax
revenue; and, more importantly for me, it would be the end of celebrating a nearly 80-year
legacy for my beloved father, Sonny O'Day.
My father would be extremely unhappy to know how very expensive his license has been for me
to operate under the recent concessionnaire in Laurel. It has cost my family and me dearly. I have
earned absolutely no revenue—not one single penny of profit from its use under the recent
concessionaire. I have paid, myself, for all the alcohol that was sold by the recent concessionaire,
without receiving any of the profit he received: profit that the State of Montana laws require me
to receive from the concessionaire. Even after the recent concessionaire was ordered by the State
to pay me what I was owed, it never happened. In addition, I paid for insurance, license
application-and-transfer fees, state and city fees, costs, expenses, attorneys' fees, and more,
without receiving one single cent in return. This has been a tremendous financial burden, one I
will not continue to impose on my family.
Taking care of the paperwork, alone, is exhausting at my age. Last fall, I paid thousands of
dollars and spent over 100 hours of my time to draft, complete and submit the paperwork by
myself, without help, to transfer this license, at the recent concessionaire's request, to a larger
downtown facility that he owned.
Much to the State's and my dismay, the recent concessionaire decided to cancel the license
transfer just one week prior to the State's assurance that the license transfer would be approved.
Both the State and I tried hard to talk him into completing the license transfer. The State and I
even collaborated on a legal way to force him to comply, but he remained steadfast. His decision
was looked on very unfavorably by the State and generated for himself much negative will with
the State of Montana, which could have compromised my license and jeopardized any chance he
might have hoped for to purchase the license, himself. His decision to stop the license transfer
devastated me. It wasted all the time and money I invested in the license-transfer process. It cost
my family and me substantially, both financially and emotionally.
If the State and I thought the recent concessionaire stopped the transfer for an exigent reason, his
decision might have been better tolerated, but we could not discern a cogent reason for his
decision. We still are seeking answers, as explained more frilly, below.
I cannot and will not go through that debilitating process again. This is why my professional
advisors and I have asked the Montana Departments of Revenue and Justice, in collaboration
with the IRS to conduct a complete and thoroush financial audit and investigation of my license
and its use during the period of time it was operating with the recent concessionaire in Laurel;
this includes the failed transfer of my license to the recent concessionaire's new building. Thus
far, no bookkeeping or records from the concessionaire of any kind have been provided, as
Page Three
requested, to the State or to me. We hope that through this audit and investigation, both the State
and I will receive answers to questions we long have been asking.
My recent experience in my hometown, regarding this license, has not been a fortunate one, and
if the rumors I hear are true, my actions have been falsely represented. The State will attest that I
went above and beyond, at my sole expense, to make the operation of this license profitable for
the recent concessionaire, receiving nothing in return.
Regardless of my financial loss, I recently was delighted to learn that history will be playing a
positive, recurring role in saving the Sonny O'Day's license once again.
When my father died, in 2001, his dear friends, business neighbor, and owners of the Owl Cafe
came to my family's rescue and offered to keep the license operating in good faith until we made
other arrangements. Without the then-owners of the Owl Cafe, it is conceivable that our family,
and the City of Laurel, would have lost this valuable license.
Recently, the Owl Cafe's owners, Jodi Roberg and her family, once again came to the rescue of
the Sonny O'Day's license by offering to purchase it at a generous price that will help my family
and me make a profitable return for the financial drain the license has cost us using a
concessionnaire. The Owl's ownership will keep the license operating in Laurel, earning
lucrative revenue, much of which will be spent in Laurel, in addition to decades of tax revenue
that will be reinvested in the city.
Thank God for Jodi Roberg and family! Without them, I have no doubt that this important license
will be in Billings before year's end.
I understand that there are rumors that my license could be purchased by a different Laurel
purchaser. Based on the recent handling of my license, the State of Montana will not allow that
to happen. The State's job is to protect this long-held license which, according to Montana law,
belongs to the State of Montana, with me as only a temporary holder of that license. It is the
State of Montana, not 1, that will determine who will purchase this license.
The State will allow an all-alcoholic beverage license to be sold only to a purchaser who has
submitted a Purchase Application with the attendant required paperwork. and who is in good
standing with the State. The only prospective purchaser to have submitted a Purchase
Application and attendant required paperwork is Jodi Roberg and her family. They also are the
only prospective purchasers who are in and remain in good standing with the State. They
currently are owners of another bar and casino that has remained in exemplary standing with the
State, and are, therefore,the only purchasers the State will consider.
The Sonny O'Day's license has passed two previous Special Reviews by the Laurel City
Council, and we ask that the same approval be granted once more so that Sonny's legacy and his
license may remain in Laurel, his and his family's treasured hometown.
Page Four
Thank you in advance for your consideration of this Special Request. We ask that you place us
on your July agenda, and we pray that you will grant us long and valued service in Laurel.
Warmest regards,
tZ� -U�a*ir—
Shelley Van Atta
Owner, Sonny O'Day's, Inc.
Jodi Roberg
On Behalf of the Owners, The Owl Cafe
Cc: Departments of Revenue and Justice, Elizabeth Burns, Brett Krueger, et al.
Crist, Krogh,Alke &Nord, PLLC
David Sibley,Attorney for Purchasers
Bcc: Various