From InTheNews: Liquor License Limits Set by State

Liquor license abundance raises concerns to city
By AARON AUPPERLEE Staff Writer
April 26, 2007 - 6:28AM
BARSTOW - A high concentration of liquor licenses in Barstow has raised concerns that potential bans on licenses could affect future development in Barstow.

At Monday's Planning Commission meeting, Mike Massimini, the associate planner for the city, said the number of liquor licenses in Barstow exceeds limits made by the state legislature. Barstow has 39 stores licensed to sell liquor and 42 restaurants and bars.

However, according to limits contained in the state Business and Professions code, cities may only have one store license for every 2,500 people and one restaurant or bar license for every 2,000 people. Massimini said in order for Barstow's number of licenses to comply with population requirements, the population would have to swell to more than 84,000 people.

John Carr, a spokesman for the California Department of Alcoholic Beverage Control, said the state legislated the ratios in the 1960s as a guide for communities to determine how many licenses to allow. There is no punishment or penalty placed on a city with more licenses than the ratio recommends, Carr said, but the department works with the community to make sure licenses are granted with the best interest of the community in mind.

The recent request of a license brought the issue to the city's attention, according to John Rader, a spokesman for the city. Because Barstow's number of licenses exceeds limits set by the state, the city needs a basis to approve or deny applications for new licenses and looked to the Planning Commission to establish standards and criteria for the process.

According to Rader, the city cannot revoke licenses but can direct the California Department of Alcoholic Beverage Control to deny an application.

Tim Clark, Barstow's district administrator for Alcoholic Beverage Control, said the number of stores selling beer and wine prompted the state legislature to place a moratorium on that type of license in many cities, including Barstow. The moratorium, which went into effect in Barstow on January 1, 2005, and continues for five years, prohibits granting new licenses to sell beer and wine in stores.

"I guess they (the legislature) were concerned," Clark said. "It's giving the city entities a little more control over what's going in their city."

Barstow joins other San Bernardino County cities on the moratorium list. Big Bear Lake, Chino, Colton, Grand Terrace, Montclair, Needles, Ontario, San Ber nardino, Victorville and Yucca Valley also have bans on new beer and wine licenses for stores. Clark said there are no other bans in place on other types of liquor licenses.

The ban of one type of license, however, raised concern at the city level. City officials hope more restaurants, such as the recently announced Chili's, will soon come to Barstow. Massmini asked the commission to consider giving the city direction in the issuing of licenses and whether the commission wants to limit the number of permits.

Bob Clemmer, a planning commissioner, said the city can expect upscale dining to come along with liquor licenses and worried limits on licenses would hamper growth.

"We don't want to handicap ourselves," he said. "I just want to make sure we can bring in the growth."

Rader stated that the city is also concerned the effect licensing guidelines would have on future growth. The city is evaluating guidelines of other cities and will present the Planning Commission with guidelines for review, according to Rader.

Some local businesses do not depend on alcohol sales to stay open or grow. Michael Lewis, owner of Quigley's on Lenwood Road, said the opening of a sports bar area at his restaurant about two years ago has not contributed to significant growth in his business. Lewis, also a planning commissioner, recused himself from Monday's liquor license discussion.

"It has helped some," Lewis said. "It's more of a convenience to our customers."

He said the restaurant customers that come through Lenwood are mainly travelers making a stop, not the clientele that tend to frequent a bar.

"The Lenwood area is essentially eating," he said. "People are not going out to be entertained."

Lewis said that perhaps if Lenwood Road develops a high concentration of restaurants or a casino, a liquor license might become essential to survival.

For owners of small markets along Main Street, selling beer and wine tends not to make or break a business. Sam Hanhan is a manager at Cactus Market on Main Street and said that although beer and wine make up a large portion of his sales, they do not turn a large profit.

"If you sell a 12 pack of beer, you only make a dollar," Hanhan said. Large-profit items include groceries, candy and other merchandise available at the Cactus Market.

Romeo Alhattawi, owner of Shop For Less in Lenwood, only relies on the sale of groceries to stay in business.

"Everyone needs them," he said. "In our area here, people are far from the big grocery stores."

He does not have a liquor license in order to avoid the high overhead cost of stocking alcohol and to keep his shop focused on grocery items.