Increasing the number of licenses for establishments allowed to serve alcohol to 31 instead of the current 23 got the unanimous support of the Juneau Assembly on Monday night after a proposal seeking a near-doubling of current licenses to 43 was rejected.
A resolution seeking the smaller increase in Restaurant or Eating Place Licenses (REPLs) through a petition to the Alaska State Alcoholic Beverage Control Board was approved by the Assembly after hearing mixed testimony about the larger increase. Business owners with current licenses were largely opposed to the idea, while people seeking expanded venues for events such as music performances were in favor.
“More beer and wine licenses would allow restaurants and similar establishments to host events, and provide affordable, accessible venues for small groups and emerging artists on tight budgets,” said Zach Pease, technical director for the Juneau Arts and Humanities Council. “Eateries are already equipped to offset space and labor costs with food and beverage sales, eliminating financial burden on event organizers and creating opportunities for community engagement. New licenses would not only foster more-inclusive event spaces for under-served groups, but also support a broader range of affordable, creative events.”
But Leeann Thomas, who is trying to sell the Triangle Club Bar she’s owned for the past 25 years, said there’s already too many alcohol licenses in Juneau, and the problem is the laws governing transfers and sales.
“When I called (the state) to try to transfer my liquor license, it’s four to 10 months to transfer a liquor license,” she said. “And then one person…told me just the other day 12 months, so they’re very behind.”
Entrepreneurs in favor of expanding the number of licenses said they’re not seeing many current ones for sale — and those that are come with prohibitively high price tags from the current licensee.
“Limited licensees serves no clear purpose other than to limit competition and create a market for the licenses themselves, which tend to get more expensive,” said Richard Bloomquist, who co-owns a restaurant with his wife that doesn’t have an alcohol license. This causes problems for new business owners that gets worse over time, the licenses get more expensive, and has more and more of a barrier.”
Bloomquist said he can sympathize with “license holders who are opposed to additional competition and/or losing value on an investment,” but doesn’t believe that’s justification to not allow more of them.
“Multiple times per week customers come to our restaurant, sit down, look at the menu, and later leave because we’re not carrying beer and wine,” he said. “This happens more in the summer than in the winter since many locals are aware of the menu.”
Local business owners seeking alcohol licenses have said a transfer of a REPL for year-round establishments can cost $50,000 or more. Recent changes in state law allow the Assembly to petition the state for additional REPLs, and allow them to be issued to seasonal businesses for periods of six months every year rather than the former year-round requirement. The fee for a biennial seasonal restaurant or eating place tourism license from the state is $1,250.
The proposal seeking 20 more REPLs was considered by the Assembly in February, but members voted 5-3 to table the matter until this month to allow more time for evaluation of the impacts and public input, possible further changes in state law for REPLs during the legislative session, and to reconsider the matter after the October municipal election.
A proposed amendment Monday by Deputy Mayor Greg Smith to reduce the increase to eight additional licenses rather than 20 was defeated by a 4-4 vote, with Assembly member Wade Bryson absent from the meeting. However, after further discussion a slightly modified amendment by Alicia Hughes-Skandijs setting the number at eight was approved unanimously.
The Assembly also unanimously approved a wording change in the resolution proposed by Smith noting Juneau is a regional economic hub with nearly 40,000 residents outside the city — in addition to the estimated 32,000 city population already mentioned. He said that will help ensure the petition meets the state statutory requirements related to the ratio of licenses to the petitioner’s resident and visitor populations.
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
