McPINZ Operating Agreement Modification Discussion

Casey McCoy (McPINZ) has expressed concern that the city might deny his liquor license renewal, which would severely hamper his plans to rebuild on the PINZ site.  Christina has confirmed that Liquor licenses can be dormant for a period of two years (State Law 35-22-5.3) before council can consider denying his license.  So, the only way that the McPINZ liquor license would not be renewed this fall is if council decided not to renew the Operating Agreement which does not have anything to do with inactivity.  The City needs a valid reason to not renew his operating agreement.  Non-payment of alcohol invoices could be considered a breach of his Operating agreement but, the Staff and Council have been willing to work with him on this in the past.  Any breach of the operating agreement has nothing to do with inactivity.  Inactivity is governed by SDCL 35-22-5.3.   There are no concerns about his inactivity this year or next year, only breach of the operating agreement.  If he is compliant with the agreement there are no worries about renewals.  To my knowledge he is compliant in all areas except the payment of his invoices which the council has been willing to work with. 

Staff recognizes that this is a critical time for Mr. McCoy and his rebuilding plans, and so Christina S and I recommend that staff confer with Dean H (city attorney) and work together to see if some wording can be added about inactivity, however that does not help if he is in breach of the agreement. Christina will also look over the operating agreements to see if any other wording can be updated.

Discussion on an amending McPINZ Operating Agreement during renewal process (November 2026).