City’s concentration of liquor stores has some saying ‘when’
CITYWIDE When Holly Wright walks with her two young children through their Ocean Park neighborhood, she can’t help but notice the word “liquor” plastered in large letters on the side of a convenience store... and neither can her children.
“I don’t know if (the number of businesses selling liquor in the neighborhood) has been a big issue, but for me, it’s kind of offensive,” Wright said. “Here are my kids wanting to go to a store to buy some candy or snacks and they are bombarded by these huge advertisements for alcohol.
“I don’t have easy access to any health food stores to feed my kids, but I can go a block and get alcohol in two minutes.”
Wright isn’t alone. Citywide, residents have expressed concern about the number of establishments selling beer, wine and hard liquor.
In 2006, there were 266 liquor licenses in Santa Monica. While that number pales in comparison to the city of Los Angeles (5,667 liquor outlets), Santa Monica — with its large selection of gourmet restaurants and hotel bars — has a far greater count of licenses than neighboring cities of a comparable size, including Culver City (119) and Beverly Hills (166).
There are fears that the number of people driving under the influence increases with the number of liquor licenses issued by the California Department of Alcohol and Beverage Control (ABC). Residents have also complained about the clientele that frequents the businesses — mainly corner liquor stores — where undesirables tend to gravitate.
STEMMING THE TIDE Opposition to certain establishments, coupled with strict zoning laws that require adequate parking before issuing a permit to operate, has made obtaining a liquor license in Santa Monica difficult and costly, with some licenses selling for as much as $80,000 on the open market (a license in New Jersey recently sold for $1.25 million).
That’s just for an already existing license. If a business owner wants to increase the size of a restaurant or club, or start one from scratch, they’ll likely have to pay more. Just obtaining a conditional use permit from City Hall to operate the business costs $10,198, plus a $899 administrative fee for an alcohol determination hearing. Even after paying all that, there is still no guarantee that one will be granted a license.
“The difficulty varies from city to city, state to state. Santa Monica is one of the toughest cities, mainly because of the lack of parking and well-organized neighborhood groups that can put an end to process quickly if not consulted at the beginning of the process,” said Jon C Mejia, national sales manager for the American Liquor License Exchange, which specializes in guiding businesses through the often complex and frustrating application process for a liquor license.
“Twenty-five years ago, all you had to do was apply to the state,” Mejia added. “Cities were getting flooded with applications, so now there is a more labor intensive process, including applying for a conditional use permit, which requires the applicant to hold a public hearing.
“That’s when you can really run into problems.”
If a business owners fail to go out into the community before the hearing, they can easily run into a room full of angry residents determined to stop them in their tracks.
“It’s always easiest when you come to the table with the community’s support, and that includes interacting with the police chief, councilmen, city planners and local homeowner groups,” Mejia said. “If you just fill out an application and go to the hearing expecting to get the support of the community, you’ll more often than not run into a situation where everyone is against you and now you’ve just sunk your life savings.”
Still, many are willing to take that chance because of the profits promised to those holding a license.
“With a liquor license you can offer a wider selection of drinks for your guests and that means more people are going to come here to eat instead of going across the street or across town,” said Ricardo Avila, manager at El Cholo on Wilshire Boulevard and 10th Street.“Compare the prices of beer and wine to liquor. There’s just no way to compete without (liquor). A beer or glass of wine can sell for $6 each. But we have shots of tequila that are $24, even one that is $90. Having a license definitely brings in more money.”
But with great cash flow comes responsibility. Liquor stores, restaurants and night-clubs must follow strict zoning laws and state regulations or face hefty fines, and in some extreme cases, the revocation of their license, which could mean the end of a business.
ABC, with the help of the Santa Monica Police Department and other law enforcement agencies, frequently conducts compliance checks to reduce the availability of alcohol to minors.
Minor decoy operations have been conducted by local law enforcement throughout the state since the 1980s. When the program first began, the violation rate of retail establishments selling to minors was as high as 40 to 50 percent. When conducted on a routine basis, the rate has dropped in some cities as low as 10 percent, according to John Carr, a spokesman for ABC.
The SMPD periodically reaches out to restaurants and nightclubs to keep employees informed about laws regulating the sale of alcohol.
Originally published in the Santa Monica Daily Press print edition on February 17, 2007. Read the original PDF.