Prior Lake attorney: City doesn't have jurisdiction to license paddle pub idea

Prior Lake American

Though it’s the city’s namesake, what happens on the surface of (or under the water of) Prior Lake is not within the city’s jurisdiction, city attorney Sarah Schwarzhoff said.

The Prior Lake City Council decided during a work session Monday night not to move forward with a process that would license a paddle pub — an idea proposed to the city that would include a captain who would provide tours of the lake to 8-10 people on a pontoon. The customers would bring their own alcohol as it would not be sold or provided by the business.

“We don’t really have authority to issue a liquor license on the lake,” Schwarzhoff said.

Other lakes have special rules that would or wouldn’t allow for a similar business, Schwarzhoff said. For instance, Lake Minnetonka has a lake association that takes control of regulating the lake, whereas Lake Superior and Lake St. Croix have special legislation ruling over the water.

Issuing a bring-your-own liquor license (not the official name of the permit) would place the liability on the city if someone were to be injured or die as a result of drinking on the lake, due to the city not having jurisdiction over the water, Schwarzhoff said.

“The risk would be someone falls off the boat and drowns, they’re going to sue the city,” she said. “Obviously, we would fight that, but I can’t promise you that you would win that argument.”

Personally, Schwarzhoff said she has no issue with the idea and thought it seemed “like a lot of fun.” However, legally, Schwarzhoff advised the council against issuing a license.

“If we don’t have authority for it, it puts us in a tough spot,” she said.

City Manager Frank Boyles said he emailed the Scott County Sheriff’s Office about the idea to ask for advice on the matter and the office told him the county has its own inspections for businesses like the paddle pub. In addition, the state has regulations and processes in place.

“If you rent a boat ... of course you can bring your own alcohol,” Schwarzhoff said. “If you have a captain, however, you’re not renting a boat, you’re renting a tour, a cruise. It’s a bit arbitrary, but that’s how the state looks at it.”

From a law enforcement perspective, the Prior Lake Police Department has no way to enforce liquor laws on the lake, Prior Lake Police Chief Mark Elliott said.

“The sheriff’s department by statute has to enforce the laws on the lake,” Elliott said. “As far as people going and having fun, we don’t care about that — just abide by the law. I think most people going out would do that.”

Unlike with land pubs, a server wouldn’t be there watching consumption to be able to cut a person off.

“In this, because you’re bringing your own, there’s no one able to cut you off,” Schwarzhoff said. “Again, most people are able to handle it reasonably, but it only takes one.”

Most of the city staff and council members agreed that on a personal level, the idea sounded fun.

“I like the idea,” council member Zach Braid said. “It’s more commerce into Prior Lake and shows off Prior Lake.”

The idea was originally a pedal boat where customers would pedal the boat as they drank, but the pedaling aspect was removed later on.

“Now it’s worse,” council member Annette Thompson said.

Ultimately, Schwarzhoff said she would tell the proposer that the city doesn’t have authority to issue a license on the surface of the water. “Or underwater,” Prior Lake Mayor Kirt Briggs added.

However, that’s not necessarily the end of the paddle pub idea. The proposer could still go through the county and state to get registered and inspected and be able to put the idea into action and on the water.