CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the ordinance amending Section 3-3-11 of the Naperville Municipal Code pertaining to the Class M-Recreational or Lifestyle Amenities Facility cap by increasing the number of recreational facility liquor licenses available by one license (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On May 8, 2025, the Liquor Commission unanimously recommended the proposed amendment.
BACKGROUND:
The City has enacted the Class M liquor license (“M License”) for the sale at retail and service of wine and beer at recreational and/or lifestyle amenities facilities. Recreational facilities include an art studio, indoor sports facility, golf course, bowling alley or billiards, having a minimum of ten regulation billiard tables. Lifestyle amenities facilities include beauty shops, hair salons, spas, and personal cosmetic establishments. The M License provides:
• At least 60% of the recreational facility or 90% of the lifestyle amenities facility’s annual revenue must be derived from sources other than the sale of wine or beer.
• No wine or beer may be sold to people on the business premises except as a complement to the purchase of a paid lifestyle amenities service or when the recreational portion of the premises is open and available for use.
• An annual fee of $2,200.00 and cap of twelve for recreational facilities.
• An annual fee of $500.00 and cap of five for lifestyle amenities facilities.
DISCUSSION:
On May 8, 2025, Clubhouse540 sought an increase in the number of Class M - recreational facility liquor licenses available by one to 13. Clubhouse540, located at 1466 Chicago Avenue, offers a five-bay virtual golf simulator. This location previously housed a virtual golf simulator without issue.
The City's Code requires City Council approval to increase the cap to make a liquor license available for Clubhouse540. Clubhouse540 intends to sell beer and wine for patrons utilizing the virtual golf simulator. If the ordinance is approved, Clubhouse540 is still required to apply and meet all the City’s liquor license requirements. After reviewing the concept, the Liquor Commission unanimously approved the request.
Draft minutes from May 8, 2025 Liquor Commission meeting is attached.
FISCAL IMPACT:
An increase of $2,200 in liquor license fees and corresponding increase in sales tax related to sales of alcoholic beverages.