MONROE - Monroe's License Committee took a half step to loosening the city-imposed limit on restaurant wine and Class A packaged liquor licenses Wednesday, in response to a request to change the Class A quota.
The city is currently at its limit of 12 licenses, in any combination, of Class A and restaurant wine licenses. Nine Class A licenses and three restaurant licenses have been approved.
Unlike Class B licenses for liquor served by the drink, with limits set by the state, municipalities sets their own limits of other alcohol licenses.
The request to increase the Class A limit came from an attorney representing a businessman wanting to open a convenience store in the city.
The committee considered the ramifications of eliminating the limits altogether, but chose to simply open the limit to 12 and 12, for restaurant and Class A licenses, in effect doubling the quota. Some committee members were concerned that eliminating the quota entirely could lead to complaints about the discretion used to approve applications.
"The council has great discretion when applications are made," City Clerk Carol Stamm said. "Each and every new application is always going to be reviewed."
Stamm, City Administrator Phil Rath and most of the committee members agreed that increasing the limit would promote competition and development.
The perceived drop in value of a license by approved applicants when more licenses become available was discussed. However, Stamm explained the city is the actual holder of the licenses and is not bound by agreements made between private parties during the sales of businesses, which might include relinquishing a license if the city awards it to the new owner.
There are no pending applications for liquor, beer or wine licenses, although Stamm said she has had calls inquiring about them. Committee members do not foresee an onslaught of new applications coming in the near future just because more licenses are available.
"Usually the market does regulate itself," Stamm added.
The recommendation of the License Committee to increase the limit, which passed unanimously, will need the Judiciary and Ordinance Review Committee's recommendation before going to the council. No date for when the Judiciary and Ordinance Review Committee will take up the issue has been set yet.
The city is currently at its limit of 12 licenses, in any combination, of Class A and restaurant wine licenses. Nine Class A licenses and three restaurant licenses have been approved.
Unlike Class B licenses for liquor served by the drink, with limits set by the state, municipalities sets their own limits of other alcohol licenses.
The request to increase the Class A limit came from an attorney representing a businessman wanting to open a convenience store in the city.
The committee considered the ramifications of eliminating the limits altogether, but chose to simply open the limit to 12 and 12, for restaurant and Class A licenses, in effect doubling the quota. Some committee members were concerned that eliminating the quota entirely could lead to complaints about the discretion used to approve applications.
"The council has great discretion when applications are made," City Clerk Carol Stamm said. "Each and every new application is always going to be reviewed."
Stamm, City Administrator Phil Rath and most of the committee members agreed that increasing the limit would promote competition and development.
The perceived drop in value of a license by approved applicants when more licenses become available was discussed. However, Stamm explained the city is the actual holder of the licenses and is not bound by agreements made between private parties during the sales of businesses, which might include relinquishing a license if the city awards it to the new owner.
There are no pending applications for liquor, beer or wine licenses, although Stamm said she has had calls inquiring about them. Committee members do not foresee an onslaught of new applications coming in the near future just because more licenses are available.
"Usually the market does regulate itself," Stamm added.
The recommendation of the License Committee to increase the limit, which passed unanimously, will need the Judiciary and Ordinance Review Committee's recommendation before going to the council. No date for when the Judiciary and Ordinance Review Committee will take up the issue has been set yet.