Here's toast-worthy news: "Dozens of new liquor licenses could soon be issued in the city of Detroit," Kurt Nagl writes at Crain's Detroit Business.
As many as 63 special licenses for on-site alcohol consumption could be issued, the city says, if the state OKs them in a redevelopment area established by Detroit late last year. More could follow every three years.
The licenses would be above and beyond the city's maxed-out quota of Class C liquor licenses, the most common — and coveted — type for restaurants and bars. They would also cost one-fourth the price of a typical license.
Bad Luck Bar opened in December 2016 at 1218 Griswold St. downtown. (Photo: Facebook)
As a first step, a pending City Council resolution would OK 20 special licenses, Nagl reports.
Mayor Mike Duggan's administration backs the move as an economic development stimulus, though existing bars obviously dislike the idea.
"Liquor licenses are very expensive at the moment because of a high demand and a limited supply," according to a summary of the proposal provided by the city. "To mitigate this high expense for small and medium-size businesses, we are proposing to establish a City Redevelopment Area, which would allow for businesses to purchase a liquor license, straight from the State Liquor Control Commission."
Nagl pours this background as an ingredient in his article:
Detroit has 429 active Class C liquor licenses and 131 in escrow. . . .
Because the city's quota has been tapped out for many years, and its population has declined, no new licenses have been available. The only way for a new business owner to obtain a license is to buy one from escrow from license holders who have, in many cases, held onto the license for decades.
With areas of the city seeing a flood of new restaurants and bars, the supply of licenses is shrinking and demand is increasing.
