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Date: 2/28/2023
NORTHAMPTON — During their Feb. 16 meeting, the Northampton City Council voted for special legislation that would ask the state to add seven additional all-alcohol licenses to the city’s restaurant and entertainment industry.
Background
Back on Feb. 2, Mayor Gina-Louise Sciarra presented a plan that would call on the Legislature to provide Northampton with seven additional above-quota all-alcohol licenses on top of the 44 already allowed within the city’s bars, restaurants and inns.
Without this all-alcohol license, many businesses in the city are limited to only serving certain types of alcohol, like wine and malt. With an all-alcohol license, a business – particularly a bar or restaurant – can broaden what they serve on the premises.
Due to a state-controlled law relating to population, Northampton is already over its quota for how many all-alcohol licenses it can hand out to businesses. By petitioning for these additional seven licenses, the city will give more alcohol-serving businesses a chance to secure one.
“I think this is something that’s really important for our economic development,” said Sciarra, on Feb. 2. “We are struggling to bring in new restaurants because they can’t get a license.”
Aside from deterring new businesses, the absence of additional licenses is also making it harder for existing businesses to offer an expansive list of alcoholic beverages.
Because of these issues, many businesses either must buy another restaurant or bar’s license in the secondary market or make do with what they already have.
The only real way for a business to receive an all-alcohol license is by going through a “Hunger Games-style” system when one finally becomes available.
Sciarra explained that when a business with an all-alcohol license closes in Northampton, that license comes back to the city for re-issuance by the Northampton License Commission. But because multiple businesses vie for that license, the city normally must spearhead a lottery process to determine who gets the license.
For example, four current businesses were interested in acquiring Sylvester’s special act license after the longtime restaurant closed last spring: The Dirty Truth, the Tea Pot restaurant, Jake’s Restaurant and Paul & Elizabeth’s. The license was eventually redistributed by lottery to Paul & Elizabeth’s during the last License Commission meeting in January.
“The addition of all alcohol is significant for the financial model for restaurants,” said Alan Wolf, the mayor’s chief of staff. “That is a major driver behind the mayor’s initiative here.”
The impact on businesses
On Feb. 8, the council’s Community Resources and Finance Committee met to discuss the licenses issue further with city officials.
During the meeting, Wolf read a letter from an interested party looking to open a restaurant in Northampton but decided not to since the acquisition of an all-alcohol license was not guaranteed. Polly Normand, the aspirational business owner who wrote the letter, said that liquor has “by far” the greatest profit margin of any goods sold in a restaurant, and without an all-alcohol license, the business would most likely end up “in the red”, financially.”
“It was evident it would be irresponsible to lease the space without a liquor license,” Normand said, adding that liquor carries the least waste and is the least labor intensive.
Normand said that she had experience owning a restaurant and she could have funded the new business on her own, but the absence of an all-alcohol license would have made her venture unaffordable, even if her desired storefront would have required little upgrades.
The dearth of all-alcohol licenses has left a major impact on existing businesses, too. Kyle Anderson, the general manager of The Dirty Truth-which lost out on an all-alcohol license in that aforementioned lottery-said he is a proponent for this extension.
“We are at a place where the restaurant and cultural side of our community can really benefit from that attraction, not only of new restaurants but also workers within the industry of hospitality,” said Anderson.
Anderson explained that his business’ wine program is growing, but without an all-alcohol license, the bar is unable to serve liquor. With the spirits industry growing, Anderson said that serving liquor cocktails is becoming more valuable for bars and restaurants, but an all-alcohol license is often required.
Not all are for this change
While Amy Cahillane, the executive director for the Downtown Northampton Association, explained that she is in favor of this special legislation, she also said that not every business wants more all-alcohol licenses.
“I’ve had two restaurants reach out to me upset that I am speaking out in favor of these licenses,” said Cahillane. “One of whom feels my position is a slap in the face to all of the hard work and hard-earned dollars that he has invested in his licenses.”
Despite some dissenting opinions, Cahillane said she is in favor of the additional licenses because this is a crucial time for Northampton where an all-alcohol license can be the difference between a business staying or leaving.
Cahillane added that she finds the Hunger Games-style mechanism for assigning all-alcohol licenses to be counterproductive when it comes to future planning for businesses seeking a license.
“It does nothing to boost economic development,” she said.
Heather Warner, a local Northampton resident who used to work for a local public health nonprofit, said she felt Northampton should find more creative ways to promote economic vitality outside of alcohol or cannabis substances.
“I think there are other social costs that come with increased alcohol use,” Warner said.
Despite Warner’s safety concerns, Police Chief Jody Kasper said that she does not think these additional licenses would cause more safety problems.
Public Health Director Merridith O’Leary, meanwhile, spoke in favor of this special legislation during the Feb. 8 meeting.
The council voted 8-1 in favor with only Councilor Alex Jarrett against it. Jarrett expressed some public health concerns with more licenses.
The state now has to approve the special legislation for the licenses to be added.