Wisconsin State Rep. Gordon Hintz, D-Oshkosh, introduces bill for new restaurant exemption to liquor licenses

SOURCE: Oshkosh Northwestern

As the Oshkosh Common Council continues to debate the best way to assign liquor licenses, its members hope a local legislator will bring help from the state level.

Councilor Tony Palmeri has asked councilors and city staff to develop ideas for a formula or series of factors for councilors to consider when weighing competing proposals for liquor licenses. Palmeri sought input from both councilors and city staff in the weeks after the council debated the merits of five businesses that were seeking one of two available liquor licenses.

Ultimately, relief may come to license-strapped cities like Oshkosh from the state legislature.

State Rep. Gordon Hintz, D-Oshkosh, has introduced a bill that could end a problem the Oshkosh Common Council has faced whenever liquor licenses became available — multiple proposals with positive merits get passed up due to lack of licenses. The bill would allow local governments to exceed license quotas for restaurants that derive 50 percent or more of their business from on-premise food sales.

"It has to be for a restaurant and it would be up to the council, which I think a lot of these decisions should be," Hintz said. "It might be that way too many people think they can make it in a tough business. But we have a number of communities like Oshkosh that are tapped out."

Oshkosh Tavern League President Pat Purtell said more licenses are not the way to ensure regions of Oshkosh revitalize or grow. He supports efforts like the city's Marion Road Redevelopment Area and South Shore Redevelopment Area, but said new businesses should look to buy an existing license from a business or create 300 seats and receive an exempt licenses.

"If a multimillion dollar business wants to come to town, they could easily buy out one of these places barely getting by," Purtell said. "Our business has been diluted and ways already exist to create a license if someone needs one."

Hintz said there is room in between the buyout option and total elimination of the quota system.

"I think this is a reasonable middle ground between opening up caps and creating a narrow restaurant exemption," Hintz said. "I don't think you'd see 50 new restaurants launch if this was enacted. I do think the council needs to set up some objective criteria on how to award these. And I would expect if this bill became law, they would use their discretion."

Palmeri said the Tavern League's argument needs to be considered in any discussions about changing the quota system. He said major businesses or developers should be able to factor the cost of buying a license from a smaller tavern into the project costs. He also suggested "a more aggressive system to revoke licenses could free more up."

Hintz said communities across the state face the same problem as Oshkosh and have gone to greater lengths to secure licenses when none were available. He said the state budget Gov. Jim Doyle signed in June created liquor license exemptions for St. Francis and Monona. And last year, a significant development in Pewaukee lacked a license until the Legislature voted to create one after the local tavern league gave its blessing.

"We do it on an individual basis and it's most tedious," Hintz said. "It shows the quotas are an obstacle and it shows local decision makers should have the tools and authority this bill would give them."

If the bill does not move forward, Hintz said, he would be prepared to push for a special exemption license for the Marion Road Redevelopment Area in the same fashion other communities have done the last two years.

Councilor Jessica King said she would like to see an exemption for convention centers added to state laws, as well.

"I definitely agree the quotas and parameters need to change," she said. "It's really affecting the economic development of our city."