Douglas Council Approves New "Redevelopment Project Area" Allowing More City Liquor Licences
A newly developed district covering the entire Douglas Blue Star Highway Corridor has opened the doors for new liquor license opportunities for qualified businesses.
Douglas city officials discussed it two weeks ago, and at Monday’s meeting officially passed the resolution designating a “redevelopment project area,” one of the prerequisites the State of Michigan requires from municipalities seeking what are called “redevelopment liquor licenses.”
“The redevelopment district essentially runs from one end of the town to the other,” announced Douglas City Manager Bill LeFevere. “This creates a business opportunity…” he added.
These type of licenses are much cheaper—$20,000—than a prospective business owner can expect to pay on the open market, (those usually) averaging from $40,000 to $60,000, depending on the type of license, said Douglas Zoning Administrator and Community Development Director Lisa Imus.
“The redevelopment license is based on the increased taxable value of a business during the preceding three years,” said Douglas City Manager Bill LeFevere.
The redevelopment license was made possible by PA 501 of 2006, which allows the issuance of public, on-premise licenses in addition to those quota licenses allowed, provided the seeking businesses meet the Michigan Liquor Control Commission (LCC) requirements.
The existing Douglas Downtown Development Authority District (DDA) also meets the LLC requirements for a redevelopment project area.
As a result, qualified businesses in that district can also take advantage of the opportunity, said city officials.
“We qualify for a couple (of licenses) in the Blue Star corridor and an additional one in the DDA,” said Imus.
Unlike other liquor licenses, a redevelopment liquor license is bound to the building and business the license is conferred on and once the business is terminated, then the license also expires.
Other type of liquor licenses are retained in the owner’s portfolio and they can sell them if they choose to as long as it is sold to someone that has a business that maintains the characteristics for which that license was granted (relative to the type of business and what zoning district that business is located in, in accordance with the LCC), explained Limus during Monday’s city council meeting.
Liquor licenses are approved at the local level before the Michigan Liquor Control Commission grants an approval.