Tuesday, July 4, 2017

Funny you should ask: "Why can't the VFW get a liquor license?"

The most common question I get asked as mayor is, “How's the mayor-ing going?” but from time to time I do get a legitimate query that perhaps more than one person wants to know the answer to. Recently I was asked this question, “There is supposedly a liquor license available so why not let the VFW have it? These men and women have defended our country for countless years it's the least we can do for our local VFW members.”

Its a reasonable request, isn't it? If the city has an available liquor license why not let the vets have it? Except we don't. That's the short answer to this individual's question - we really don't have an extra license just laying around for the taking – or the buying. And why is that? Why don't we just have intoxicating beverage licenses available for anyone willing to purchase them? To answer that question requires a little bit more explaining.

If you go to our city's website and click on the 'government' tab, you'll find the 'Code of Ordinances', the laws by which we live by. Chapter 10 is all about Alcoholic Beverages and it's a pretty long one. Within it, you find (among many other clarifications):

A great resource

  • Section 10-23: You have to have a license to sell alcoholic beverages.(Well, you probably already knew that but just so you know.)
  • Sections 10-24 thru 10-26: There are various “classes” of licenses (And this gets to the heart of why we can't offer the vets a liquor license.)
    • Class A”: Think “A as in away”. You can sell the booze and the customer can walk away from the premises and consume it so long as its in its original container. The city sets the quota of how many licenses are available and it's currently at 3: Kwik Trip, Gordy's and Keg 'n Kork. These establishments apply for this license annually and the council approves them. (I'm told that the council can't just 'cancel' a license without a proper revocation hearing. In other words, you gotta have a good reason for canceling it.) These cost $300/year.
    • Class A Fermented Malt Beverage/Wine Coolers”: Just like the “Class A” license, you can buy your six or twelve pack and go home with it. The city also sets the quota for these licenses and that number is currently 4: Kwik Trip, Gordy's, Chetek's Express and Keg 'n Kork. These also are approved by the council and the going rate is $50/year.
    • Class B Fermented Malt Beverage”: Like it says, this is a “beer only” license for establishments that allow you to sit down and enjoy a cold one or take a 12-pack home. The city allows 4 of these, two of which are currently available. The other two have been issued to the American Legion and the VFW. These cost $50/year as well.
    • Class B Intoxicating Liquor”: In the world of liquor retail sales, these are golden. If you own one of these you have the ability to sell both beer and the hard stuff at the relatively princely sum of $600/year. But unlike the other quotas which are set by the city council, the State sets the limit based on a formula that factors in our population. At the present time – and more than likely for a long time to come – based on that formula we are only allowed 5 Class B Intoxicating Liquor licenses: Red's, Phil's, B&B, Mary's and Indianhead.

"Back in the day"
If Indianhead has not been open for two years why do they continue to be issued a valuable liquor license? For the simple fact that the current owner – Linda Homme – continues to apply for it and pay the fee. And why does the council continue to issue it to her even though she hasn't sold a drop of hooch in two years? The reasoning is simple: she is trying to sell the place as an establishment that has a Class B Intoxicating Liquor license which gives her property value (a sale is currently pending on the place.) Honestly, if, for whatever reason, the sale fell through the best way for the vets to get the license they'd like is to buy the place from her.

So, that's why we can't offer the vets a Class B Intoxicating Liquor license – there isn't one currently available. The only way to fix that problem is for our city's population to grow over 2,500 which probably isn't going to happen any time soon. 

Happy 4th everyone and please celebrate responsibly!






5 comments:

  1. Thank you Mayor Jeff for the informative reporting. You intuitively know how to hand the keys to your community back to the people...informed constituents make for a happy town of teamwork! Long live the Mayor!

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    1. Thank you, Susan. My aim and goal is to keep people in the loop and share what I'm learning as I continue through my learning curve.

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  2. Well said Mr. Mayor. The VFW wanted the liquor license from the former Stringer's (now Phill's) I am a charter (founding) member of the local VFW and a lifetime member. I would like them to have a liquor license so I advised them to buy the former Stringer's and live happily ever after. They didn't like that. What value would that building have that was built for the purpose of a bar have without the liquor license? Very little would be the correct answer. The so called big shots got into a huff and decided I was the bad guy. Well, I did suggest they buy the place and move there. Had they done that they would be serving liquor across the bar. The VFW will see its own demise, the young veterans eligible don't want any part of it. When I returned from Vietnam the VFW didn't allow us to be members, that was before the local club was chartered. There were and still are tens of thousands of VN vets that refuse to become members. There was once twenty some VFW posts in St. Paul, MN. Now there's just one. The local American Legion is likely going to surrender their charter in the next few years. I heard that face to face from a very reliable and credible person. I am also a member of the local American legion.

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  3. Lack of Liquor licenses may be one of the reasons why VFW's are failing these days. What time limit is there on a bar business that has stopped operating and the only reason for the license is to help the building retain value? A license has to be approved by the municipality each year and it seems like Chetek has taken the position that it is there job to maintain the value of a building that is not in operation as a bar rather than allow a VFW to have that license.

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  4. You raise a valid point. We may have to reexamine this if, for whatever reason, the sale that is pending falls through.

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