The Cottage Grove City Council voted Dec. 7 to reprimand local restaurant Las Margaritas for multiple recent underage alcohol violations. The popular restaurant on East Point Douglas Road failed its second liquor compliance check in 24 months, bringing the total of violations to nine since its opening in Cottage Grove in 2005.

Detective Sergeant Mike McCormick explained the police department’s compliance check system, which involves two yearly undercover visits by a minor to establishments that serve alcohol. The minor, or decoy, works with the department by attempting to order alcohol at an establishment while legally underage. The decoy must not change their normal appearance, cannot lie about their age if asked, and must present their official state ID for examination by the establishment upon request.

Minnesota is one of 46 states that have adopted vertical licenses for residents under 21 years of age, including a red bar under the picture that states the ID holder is under 21, to make it easier for servers to recognize underage customers.

Police conducted the most recent compliance check on Nov. 7, which a bartender failed at Las Margaritas. McCormick detailed the process, saying that the 20-year-old decoy sat at the bar and ordered a beer. Her vertical license was checked by the bartender, and the beer was served. The bartender then came back and asked to see the ID again, looked at it a second time, and then ultimately left the drink for the underage customer.

Officers monitoring the transaction then contacted the server to inform her that she had sold to a minor, and that a citation would be forthcoming. The manager was made aware of the violation and that there would be an official letter delivered explaining the next steps following the violation.

“The charge of serving to minor is a gross misdemeanor in the state of Minnesota, which is jailable. However, we use the city ordinance, which is a misdemeanor,” said McCormick. “This is more for a learning tool, because this affects the individual that serves quite a bit more when you throw a gross misdemeanor on someone. As stated, this is the second violation in two years, the last one being Nov. 22, 2021.”

On March 13, the council imposed sanctions for the 2021 violation, which included a 90-day training program for Las Margaritas staff, a $500 fine and a one-day alcohol sales suspension. Upon completing the training, the council rescinded the fine and suspension.

The nine violations since Las Margaritas’ opening occurred in 2005, 2007, 2008, 2009, two in 2011, 2015, 2021 and now 2022. Noting that the number of violations from the restaurant far outstrips the general compliance shown by other local establishments, the council this time approved a heavier penalty. They imposed a $1,000 fine and a three-day alcohol sales suspension, to be placed on a weekend, as opposed to mid-week. The council decided on Friday, Jan. 13 through Sunday, Jan. 15, 2023 for the suspension. The restaurant will remain open on those days, but no alcohol can be sold to customers.

“Responsible alcohol sales are a respected part of our business community, and their efforts to help us keep alcohol out of the hands of youth are commendable,” said McCormick. “Our goal is 100% compliance, which has been achieved by others in our community.”

While councilmembers noted their enjoyment of the restaurant in the Cottage Grove community, they expressed disappointment at having to recognize the severity of the situation in regard to public safety.

Councilmember Justin Olsen said, “I just had lunch at Las Margaritas with my wife a week ago. It’s one of our favorite places to go on a Saturday or Sunday for lunch. There are a lot of very loyal customers who appreciate having them in the community, but this sort of behavior seems to be pervasive. We need to get this fixed.”

“As somebody who’s worked in restaurants and had to manage people, I know how difficult it is, and it’s especially hard being the owner or manager and have these things keep coming up,” said Councilmember Tony Khambata. “I empathize with the owners that this is going to sting a little, but I do really think it needs to drive home the point that maybe they need to do their own compliance checks in the lead-up to our compliance checks.” He said that he understands that the owners did not personally serve the underage customer, but as owners they have to be responsible for the actions of their employees.

Councilmember Dave Thiede commented that the vertical ID is a good deterrent, but asked if there were other means to help avoid underage sales. Public Safety Director Pete Koerner responded, “One of the owners is here tonight, and they have admitted the violation. It was a new employee that hadn’t had the training yet. Years ago, Las Margaritas did get some age verification systems, but as they wore out they just didn’t replace them. Things we’ve talked about are having age verification and better onboarding when they get new employees on, as opposed to waiting until the next year when they get their training.”

“Being an individual that holds a liquor license here in the city, I always like to remind people that the license is a privilege, not a right or guarantee,” said Councilmember Steve Dennis. “If you meet the conditions of the issuing body and stay in a good position with them, you continue to have the benefit of that license. These things are always difficult to come before the council, and I’m sure we all feel the same way. There’s a degree of sadness that happens when you see these things. We like to embrace success, not failure. The goal is for everybody to pass. This is a tough one, and when I saw that list of nine violations, and I know that’s over a number of many years, the question was asked ‘is there anybody out there that’s had this much trouble?’ The answer is no, it’s unparalleled. I’m really hoping that they can get their hands around this.”

Speaking to the owner in attendance, Mayor Myron Bailey added, “I think can we all can speak to this. We don’t like to be here and deal with these kinds of things. We’re asking for you to really work to get this under control.”

Las Margaritas co-owner Nora Perez spoke to the council, citing high turnover and the difficulty of keeping experienced staff. In reference to the new employee who committed the violation, she said, “When we talked to her and asked her what was going on, she didn’t know what happened. She was really good at looking at the dates, and the date she saw, she was not sure. She thought she was looking at the right date, even though the ID is hard to not know that it was an under 21.” Perez then requested that the three-day alcohol suspension take place on a Monday through Wednesday to minimize loss to the business. That request was noted by the council, but due to the number of violations, was ultimately denied.

An example of an underage ID compared to an over 21 ID. Photo courtesy of the City of Cottage Grove