Balancing public support with trepidation from competing businesses is the meal plan before city government when it comes to food trucks.
The issue was before the Baxter City Council Tuesday in a work session. The council didn’t take action, but did identify a direction. Issues to consider include whether the food trucks will compete with other options, particularly fast food establishments, or whether the people at the various businesses are buying lunch from the food truck when they would have regularly packed their own instead. Another question may be how much should the free market decide where the food dollars should go and how much city government should regulate to protect existing businesses against competition.
Gordon Heitke, city administrator, listed four options for the city council Tuesday. Beyond the stark options of either allowing food trucks to operate without regulation or prohibiting them altogether, the city looked at the ground in between. Staff recommended not allowing food trucks to sell to the general public, but allowing them for use as an outdoor catering service.
With this recommendation, food trucks would be allowed to operate on private property at the request of the property owner. But even this recommendation is not without further question as the Mayor Darrel Olson noted the Westgate Mall owners could request a food truck as the property owner while individual businesses in the mall may object. Either way, staff recommendation was against sales to the general public.
Prairie Bay, which largely started the food truck debate with its Side Dish Mobile Kitchen, asked Baxter to extend its temporary merchant license. The city issued the temporary transient/peddlers license in December and extended it through March. Prairie Bay asked for a month-long extension into June.
Questions for the city included what actually constitutes a food truck and where does a food cart or a hot dog stand fit in the mix. Heitke said the real term may be mobile vending. Heitke said other vendors have expressed interest in mobile operations, so he noted the idea isn’t limited to food.
“There is some interest here that goes even beyond food in terms of mobile vending,” Heitke said.
Baxter and Brainerd are both researching the intricacies and mine fields related to licensing food trucks. The respective city councils expressed concern for traditional and current taxpaying brick and mortar businesses. Prairie Bay also meets that description with its Baxter restaurant.
Council member Jim Klein said he has no problem with a catered event at a private business but didn’t think the food truck should be able to go to an event at a public park.
“I don’t think it should be allowed at any public venue,” Klein said.
Heitke said the city concerns include public safety regarding where food trucks are parked for traffic and competition to an existing business, and visual impacts.
Klein said the language on the ordinance will have to cover many topics as operators will be looking for ways to get around it.
Heitke said if the plan is to prohibit food trucks from selling to the general public, but allow them to sell to a specific business’ employees, customers or guests, it will mean the food truck can’t announce locations via social media. With that scenario, the food truck’s fans wouldn’t be allowed to follow it to different locations.
Council member Mark Cross noted that will mean city staff will have to become Facebook friends with the food truck operators. Council member Todd Holman said he liked the option that allowed the food trucks to be used for outdoor catering.
Olson said after meeting with representatives from the city of Brainerd, it appeared they were hoping Baxter was further along in the process. Olson said places like the Essentia Health-Baxter Clinic represent a new term as a “food desert” without a lot of nearby food options for competition.
“Can we set the permit fee high enough to discourage a lot of people?” Klein asked.
Heitke said the license fee has to reflect the city’s administrative costs.
To throw in another consideration, Cross noted community events such as the Fourth of July bring in vendors from outside the area, one as far away as Miami.
A next step includes looking at a draft ordinance.
RENEE RICHARDSON, senior reporter, may be reached at 855-5852 or renee.richardson@brainerddispatch.com. Follow on Twitter at www.twitter.com/Dispatchbizbuzz.
Comments (32)
Add commentWow...
'free enterprise. n. The freedom of private businesses to operate competitively for profit with minimal government regulation.'
So much for that concept!
Here's a novel idea...how about you let the PEOPLE decide where they want to go for lunch? Instead, you are going to TELL me where I can and can't go?
It would serve Baxter Council right if Prairie Bay packed up their entire operation and relocated to Nisswa or Lake Shore and allowed a low-class fast food dump to move in to the spot.
Maybe we could start to look more like Brainerd. Throw in a smoke shop and adult toy store while you're at it, maybe.
Brainerd/Baxter need to check out NYC.
Lots of food stands on the streets and a wide variety available.
And isn't competition good for everybody?
OR....
You could just go to Prarie Bay sit down and eat lunch?
Go to Prairie Bay to sit down and eat lunch?
Ain't nobody got time for that!
Ain't nobody got time for that
That's funny stuff. But let's really look into this. Its a food truck, its a business the government needs to sit back, relax and let the people decide if they want to eat from it or not. This really shouldn't be an issue for brainerd or baxter. C'mon people we need to let our council members know we are big enough to decide where we want to eat lunch without them limiting our options for us
I agree with the last two posts
A., in a way, he's right. "Ain't nobody got time for that"
People are working more hours and taking less time for lunch breaks.
B., "its a business the government needs to sit back, relax and let the people decide if they want to eat from it or not. This really shouldn't be an issue for brainerd or baxter."
- I completely agree.
Next
Next thing they will look at removing food and beverage from convienance stores or the "Brat" stands they use for fund raising and how about the food stands at the fair?
They need to call
Adolf Bloomberg and get his advice.
Did I miss something??
“I don’t think it should be allowed at any public venue,”
Why is Klein so opposed to the food truck serving to the public?
“Can we set the permit fee high enough to discourage a lot of people?” Klein asked. - Nothing like discouraging a local business to try a new way to get their products out.
Up next...Girls Scouts can't sell cookies out of the back of the minivan without proper permits.
What a stupid debate. Fast
What a stupid debate. Fast food has enough hand outs with the government heavily subsidizing their crappy food products to begin with. Now we need to make sure they unhealthy, unsavory and environmentally unfriendly are free from competition as well.
Food Trucks
are viable in large cities because of the high density of humans concentrated in a relatively small area mostly traveling by foot or some type of mass transit. Baxter/Brainerd is exactly the opposite. The relatively low population, personal vehicle travel, combined with the oversaturation of available restaruants makes the mobile food vendor unessesary at this time. If it is a matter of convienience there is always the option of delivery. If it is a matter of "aint havin enough time" call the order in. Besides where are all of the people going to park when they "drive up" to the food truck between 12:00 and 12:30 or 12:30 and 1:00?
BTW
Debating food trucks... Aint nobody got time for dat!
Hayseed...
So, what you are saying is that the area doesn't, and shouldn't, have any additional restaurants? Brainerd is getting a new Chinese buffet, should the city have said "Sorry, we already have enough restaurants"?
As for the parking...
I have yet to hear or read about any parking issues. Also, not everyone gets to take lunch between 12 and 1.
Hayseed
"Food Trucks are viable in large cities because of the high density of humans concentrated in a relatively small area mostly traveling by foot or some type of mass transit. Baxter/Brainerd is exactly the opposite."
If it's a matter of the food truck industry not succeeding or not being unnecessary, doesn't that rest on the shoulders of the trucks to make that decision? I think if someone wants to gamble and see if they can make a profitable company out of their food truck... isn't that their decision?
I'm for certain government regulations, but I don't think the city has any business in. Maybe some unemployed entrepreneurs want to give it a shot.
Let the best food win!
Hayseed,
I will agree with your second comment about debating food trucks, but for some reason I'm doing it anyway. Haha!
raising the fees to discourage growth
I think they got that idea from the building department! Seemed to work well for them!
Step Back
Government, whether it be state, federal, or in this case, local, needs to step back and let the market do what it does best. If the people of Brainerd/Baxter want to eat at the food truck, they will. If people don't want to eat there, they won't, and the food truck will disappear. The city of Brainerd/Baxter and other restaurant owners can look at their books after a time period of more than just 2 months and see if having the food truck really made a difference in their own business, instead of just assuming it will.
Kittenlover123
" So, what you are saying is that the area doesn't, and shouldn't, have any additional restaurants?"
I didn't say anything like that!
The parking comment was a poor attempt at a joke, poking fun at how all of the people in the area drive everywhere they go.
The parking comment was an attempt at a little humor, poking fun at the way everyone around here including myself drive themselves everywhere. One person to a car...
I dont care for the current Chinese food offerings. Lets hope the new buffet is better....
Question
This is stupid! What would stop them from going to the "farmers market"! What's next. May'be they should ban garage sales! Get with the times Baxter! Since " prairie bay" is an established business they should be allowed to sell out of a truck!
Could these two city councils
Could these two city councils be concerned about lawsuits in case someone gets sick?
I just hope they don't have any big decisions to make in the near future.
Gosh
Sounds like a post I made earlier... Make the fees high enough or the hoops to jump through hard enough so no one will want to do it... Let the market decide weather or not we need a food truck! Best of luck to Prairie Bay!
Baxter City Red Tape Dance
This is nuts!!! City council will talk it to death and eventually say NO and give unfounded reasons why they won't allow it. This is a typical "pocket veto" move! PB will have to stand in limbo and watch their investment and new services lose money each month without approval from the city!
Prairie Bay I am sorry and embarrassed as a resident of this city! I wish I could do more than just eat at your restaurant but in the end without public support from other local business owners they will never pass it.
I proclaim that If the city allows PB to only put it on private property I will be willing to open up my driveway once a month on a set date to host the PB food truck and I will publish it on my FB, twitter and all social media networks I can that target this area! I am happy to support local business! I welcome all residents to offer their patronage to the PB food truck and open up their properties to this great business idea! I am happy to offer my driveway and front yard!
Winners and Losers
Government should not be in the business of picking winners and losers. Let the free market decide whether we want free standing of fixed restaurants. Baxter city council - get out of the way.
Who is this city council
Who is this city council trying to protect? Why all the members against free enterprise? Is this the good ole boy network raising its head?
The two cities
The two cities have every right to tax the income the food trucks make and make sure all of the food they are serving is up to code, along with the kitchen they use.
But to decide whether or not they will allow more business in the area is lame. Let the customers decide, not the city council.
Mr Jim Klein ...
... I don't know where you work, or even if you do, perhaps we should petition your employer to lower your salary enough to discourage you from continuing on there.
Real problems under the surface here
And that is exactly what cities that dove right into food trucks--or had no ordinance prohibiting them and then had to deal with them and their lawyers at a high cost to the residents.
Even right here in MN. This is Marquette street in downtown Minneapolis!
http://stitchesndishes.com/wp-content/uploads/2013/01/MarquetteFoodTruck...
Think of a restaurant owner on that block!
LONG TIME businesses who employ people and operate a brick and mortar store have complained about lines of food trucks taking up all their parking in front of their store.
Pedestrians have complained about the stink from idling diesel trucks and noise from generators.
Restaurants have complained about people selling food at a huge competitive advantage over them--namely the taxes and fees that a brick and mortar restaurant has to pay that the food trucks don't.
Then there's issue of who will actually come in these food trucks.
People need to think about this for a minute as there ARE real examples of real problems out there.
Will every food truck be run by a brick and mortar place like Prairie Bay? Maybe less of an issue if that's the case.
Or--as has happened in other cities--will large numbers of out of area trucks arrive to compete with our local restaurant businesses?
Don't think of your local friend selling a high priced sandwich out of a Prairie Bay truck--think of a dozen taco stands run by people with no ties to the area.
I guess it would give Sadie and others another reason to argue for picture ID and illegal alien crackdowns...:-)
+1
Well said ProudRINO!
to ProudRino
How did illegal immigrants come into this picture? Are you concerned about immigrants taking away your business? If you were that concerned about saving the American businessman you shouldn't be purchase anything sold at a local grocery store or retail store because a majority of those products/produce are made in foreign countries that have taken business away from small towns like Brainerd/Baxter because its more affordable. I am not for legalization or even support people who break the laws in such a manner, but you are pulling a routine deflection move.
It's not about the potential issues that arise because like any good businessman/woman knows there are always unforeseeable problems but that doesn't mean we don't venture out and take the risks. You just propose problems and potential issues but offer no solution but try to scare us into thinking if we allow food trucks our city will be overrun with illegal alien taco trucks thus bring in undesirables. Does that sum up your argument? I guess I will have to take that at face value.
Long live the "American Entrepreneur" as long as your not a immigrant or illegal alien, polluting our streets with smells of ethnic foods, diesel fumes and blocking our side walks with customers. Oh wait, you pointed out its not fair cause the local government finds it necessary to tax the heck out of brick and mortar business so the solution is to get rid of competition not address the fact they are being over taxed!!!
Free market is not the same without regulation
So many folks saying "let the free market work" aren't taking any time to think about how this would work!
The playing field is NOT level without some careful regulation here!
Lets say you are a seller of widgets, with a physical store in Baxter. And here I come, a budding entrepeneur from the twin cities, with grand plans to sell the same exact widgets.
Only instead of opening a store, I'm going to come along in a truck. And I'm going to park it right in front of your widget, store, and I am going to sell my widget a few dollars cheaper than you are.
Free market in play there?
No--because you have to pay taxes and fees to the local government, and I don't. I can run you right out of business in short order!
Or lets say this--lets say I have a store that sells the same thing you do,located right next to you--but you have to pay local taxes. And I don't.
This isn't that hard to understand, just take a moment to THINK.
Oh and regarding illegals, no not an issue for me. Not that I want to support anyone in the country illegally, but I was just pointing out a very real possibility that other cities have had happen.
No prejudice there either. Should either baxter or brainerd allow food trucks, the one I would want to see start up would be the folks from the Mexican restaurant out in the old Reeds building. GOOD stuff there!
What I would NOT want to see is a mexican food truck parked in Von Hansen's lot, a block away from the brick and mortar mexican place.
All about fairness and a level playing field. Create a more level playing field for food trucks and then let the best seller win!
ProudRino
I agree and some regulations are required in any establishment whether it be a local public park or new retail store. I am not arguing for no regulation. What I am saying is that this "free market" should be cultivated with very limited regulations.
It appears that everyone is alright with two different Gas stations directly across the street from each other with relatively same prices because the must be competitive but when it comes to these trucks immediately people assume the worse of people and business and totally disregard the customer. If you are a good business and provide a good or even great product your loyal customers will incur the additional cost to the competitors inferior product and services.
In today's market, business don't care about the customer loyalty but the quantity of customers. PB seems to try to generate a loyal following, and if a competitor came in with better food or even equal food and similar prices but provided better service than PB I would eat there. PB knows that and is looking for other avenues to create great innovative services to our community while increase their customer base and bottom line. There is nothing wrong with that and I just don't like local government deciding that its not legal to do so.
Any food business poses a threat to any other food business in the area. Do you want Chinese, Mexican, American, Italian or fast food tonight? Italian, OK then here are you options: blah blah blah. We must allow business to evolve in order to compete!