(1) As used in this section, "hotel" means the same as that term is defined in Section 32B-8b-102. (2) The commission may issue a hotel license for a proposed location that does not meet the proximity requirements under Section 32B-1-202, if: (a) (i) the proposed hotel is: (A) located in a city classified as a city of the first class under Section 10-2-301; (B) within 650 feet of two community locations, as measured from the nearest patron entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to the property boundary of each community location; (C) not within 300 feet of a community location, as measured from the nearest patron entrance of the proposed hotel by following the shortest route of ordinary pedestrian travel to the property boundary of the community location; and (D) not within 200 feet of a community location, as measured in a straight line from the nearest patron entrance of the proposed hotel to the nearest property boundary of the community location; or (ii) the community location is not a school or church, a local authority: (A) includes in the consent of the local authority an acknowledgment and authorization of the hotel's proximity to a community location; and (B) subject to Subsection (5), at least 30 days before the day on which the local authority issues the consent of the local authority, holds a public meeting in which the local authority shall give the public the opportunity to comment on the proposed location of the hotel; (b) the proposed sublicensed premises of a bar establishment sublicense under the hotel license: (i) is on the second or higher floor of a hotel; (ii) is not accessible at street level; and (iii) is only accessible to an individual who passes through another area of the hotel in which the bar establishment sublicense is located; and (c) the applicant meets all other criteria under this title for the hotel license. (3) The commission may issue authority to operate as a package agency to a hotel licensee who meets the requirements described in Subsection (2). (4) (a) The commission may issue an arena license for a proposed location that does not meet the proximity requirements described in Section 32B-1-202, if, on the day before the day on which the commission issues the license, each proposed sublicense of the arena license: (i) operates as an outlet or restaurant; and (ii) (A) operates on the proposed sublicense premises under a variance to one or more proximity requirements in accordance with Section 32B-1-202; or (B) has been in operation on the proposed sublicense premises for at least 10 years. (b) After the commission issues an arena license in accordance with Subsection (4)(a), the commission may not issue the arena licensee an additional sublicense. (5) In addition to the meeting requirement described in Subsection (2)(a)(ii)(B), if the local authority is the Point of the Mountain State Land Authority created in Section 11-59-201, before the day on which the local authority holds the public meeting described in Subsection (2)(a)(ii)(B), the municipality in which the local authority is located shall hold a separate public meeting in which the municipality shall give the public the opportunity to comment on the proposed location of the hotel.
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