Monday, March 14, 2011

Belvidere Could Redo Liquor License Fees

The following is taken from the March 11, 2011 Boone County Journal which is available free at merchants across the county or on line at:

http://boonecountyjournal.com/news/2011/Boone-County-News-03-11-11.pdf#page=1

City Could Redo Liquor License Fees
By James Middleton
Belvidere Alderman Robert Bowley (Ward 2) has set
forth, with the support of his colleague on the Belvidere City
Council, Alderman Ray Pendzinski (Ward 4), to revise the
current liquor license application fee schedule. The purpose,
according to the aldermen, is to enhance commercial
development in the city’s downtown business district. Over
the last couple years, two entrepreneurs have tried to create
full-service restaurants in the downtown area, but each has
failed. One sought to create a dining establishment, and the
city agreed to allow him to pay the $20,000 liquor license
application fee over a contract schedule, but the entrepreneur
chose to site his establishment elsewhere.
In both instances, part of the reason given for the
failure of their effort to open their dining establishments in
Belvidere was the $20,000 liquor license application fee.
Mr. Bowley advanced his thoughts in a memorandum
delivered to his City Council colleagues on February 18. In
the document he reasoned why the fees should be altered
and, in some cases, reduced. Before he stated his suggested
fee changes, he reminded his colleagues, “Back in May of
2010, I wrote out my thoughts on repealed Ordinance #751-
G, the downtown business district redevelopment.”
Mr. Bowley referred to the former façade redevelopment
grant program that was repealed last year due to more than
two years in which the city did not fund the program. Mr.
Bowley and Mr. Pendzinski have expressed their belief that
the loss of the façade redevelopment program and the cost
of the liquor license application contributed to the lack of
downtown redevelopment.
For years aldermen and Belvidere Mayor Frederic
Brereton have supported the idea that the downtown district
should be revitalized. As recent as the February 2011 budget
retreat Mayor Brereton repeated he and the City Council
were committed to redeveloping the downtown district but
were also in need of ideas how to accomplish that goal.
In Monday’s City Council meeting, Aldermen Michael
Chamberlain (Ward 3), chairman of the city Finance
Committee, presented a number of motions that emerged
from a previous Committee of the Whole meeting. Item
“H” of his list identified, “Motion to direct the city attorney
to review and rewrite the city liquor license ordinance using
Alderman Bowley’s memo dated February 18, 2011.” After
Mr. Chamberlain read the item, and a second to the motion
was received, no discussion followed. The only words came
from the mayor who said, “We have an additional memo
from Alderman Pendzinski.”
A vote approved the motion to have City Attorney
Michael Drella be instructed to perform a review and rewrite
of the existing liquor license ordinance governing the fee
for that an application. The city attorney indicated after the

meeting that he would perform his review and evaluation
and deliver a result in a future meeting.
In the memo from Mr. Bowley, he proposed that a tavern
license remain at $20,000, with an annual renewal fee of
$1,400. He also proposed that a food-serving liquor license,
such as what would apply to a restaurant, should be reduced
to $10,000, with an annual renewal fee of $700. A wine
and beer license for a restaurant without full liquor service,
according to Mr. Bowley, would be reduced to $5,000, with
an annual renewal of $500.
Mr. Bowley also proposed in his memo, “The Sunday
endorsement would stay the same as current fee or $350
annually.” He further suggested “The catering endorsement
would stay the same as current fee or $200 annually,” and,
“The definition of a ‘restaurant’ and the percentage of food
sales to qualify as a restaurant needs to be determined.”
Mr. Pendzinski offered thanks in his memo for Mr.
Bowley’s ideas. Mr. Pendzinski wrote, “I am sure no one
would argue the fact that Belvidere’s application fee is the
highest in the area, possibly the entire state. The only thing
such a high fee does is to encourage businesses to look
outside of our community.”
Mr. Pendzinski also wrote, “Even if the fee that was
suggested (by Mr. Bowley) was reduced by 50 percent,
we would still be the highest. If we were reduced by 75
percent we would be more in line with the area standards.”
He summarized, “This proposal (that of Mr. Bowley) would
keep our money right here.”
The result of the motion offered in the Monday City
Council meeting was for a voice vote of approval after
no discussion. The city attorney will review and rewrite
the existing liquor license application fee ordinance to
correspond to what Mr. Bowley had presented in his memo.
The result of this review is expected to arrive to the full City
Council in an upcoming Committee of the Whole meeting
when a potential new ordinance could be debated.

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