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August 30, 2012

Alcohol’s economic impact

County’s first package store opening soon

Staff CNHI The Suwannee Democrat Thu Aug 30, 2012, 04:09 PM EDT

Live Oak — It’s been just over a year since Suwannee County voters ended prohibition and the county is set to get its first package store.

The Keg Room on SR 247 near Branford is in the process of opening the package store by Oct. 15, owner Randy Thomas said. The establishment will be located in The Keg Room complete with a drive-thru window.

Thomas secured one of the five coveted quota liquor licenses that allows the sales of liquor and strong spirits by the package, or for consumption off premises.  

Each wet county in Florida is entitled to one license for every 7,500 residents. According to the 2010 U.S. Census Bureau numbers, there were 41,551 residents in the county at that time. Therefore, Suwannee was entitled to five licenses.  

The Department of Business and Professional Regulations held a drawing on May 9 for the five licenses. Seven-hundred and fourteen applications were filed for the liquor license drawing. 

The winners were Harold James and Lynda Dale Holmes of Live Oak, Ronald and Fain Skinner of Live Oak, David Christopher Dunn of Scottsdale, Ga., David Charles Roberts of Winter Haven and Lauren Victoria Casey of Tallahassee.

 According to DBPR spokesperson Sandi Copes Poreda, four of the licenses are in escrow which means they are inactive.  

Casey’s license was transferred to RLT Enterprises, or The Keg Room, on Tuesday, Aug. 21 and is the only license that is currently active.

 The license for Holmes was issued on June 6 and is in escrow. The license for Roberts was issued on June 19 and has been transferred to KAMU Inc., a Lafayette County company, and is currently listed in escrow. The license for Skinner was issued on July 20 and is currently in escrow and the license for Dunn was transferred to Aryan C LLC, a Hamilton County company, on Aug. 22. This license is in escrow.

Alcoholic beverages containing more than 6.243 percent of alcohol by volume, with the exception of liquor, are currently being sold to be consumed off premises at some local retailers and on premises at some local eateries and bars. Liquor by the drink can also be sold to be consumed on premises if the establishment has the proper license.  

While alcoholic beverage sales at local establishments may help, Horace Moody, of the Beverage Law Institute Inc. in Tallahassee, said the local economy will be impacted in terms of people being hired.

“Restaurants can apply for COP (consumption on premises) licenses,” Moody explained.

Since COP liquor licenses have been made available for purchase, a number of restaurants and bars have obtained such licenses and began serving strong alcohol and spirits.

Because Suwannee County is what Moody refers to as an interior county, he doesn’t anticipate the number of businesses to locate in the county that might locate in a coastal community. However, he emphasized that existing businesses can capitalize on the availability of liquor licensing.

“It’s really an exciting time in Suwannee County,” Moody said.

Moody, who is an expert witness in liquor liability and a liquor license broker, warned that people going into business must understand the economics of Suwannee County.

According to Moody, the quota licenses have value because there are only so many of them. They are worth more than $100,000 and some of the money goes to the state. The fee for the license and transfer fee could exceed $20,000, he added.

While the license holder cannot hold an inactive license for an indefinite amount of time, Moody said the buyer has to decide what it is worth to them. Moody did note that the pool of interested parties in obtaining a liquor license in Suwannee County appears to be dwindling.

Although it is difficult to predict the number of new businesses that might be attracted to Suwannee County’s new wet status, the county will receive about 1.75 cents for every dollar spent to buy alcohol in Suwannee County, according to the Florida Department of Revenue. In addition, a portion of the licensing fee will benefit the county according to the Florida Department of Revenue. 

Thomas has asked the Suwannee County commission to amend the hours of sale for alcoholic beverages so establishments such as his could stay open later on the weekends to accommodate their customers.  

A public hearing is set for Oct. 16 at 7 p.m. for possible amendment of the ordinance regarding the issue.

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