For the first time since its inception, Madison’s City Council unanimously approved an amendment to the alcohol ordinance originally intended to limit the number of taverns in downtown Madison.

Ald. Scott Resnick, District 8, said the Alcohol License Density Ordinance was enacted with the intention of promoting safety, limiting alcohol consumption and increasing retail business in downtown Madison.

However, Resnick said the unintended consequence was the restriction of new businesses and concepts, such as live music venues, from opening downtown because their proposals involved alcohol.

“ALDO allowed entertainment venues to open up, but kept a cap on the number of taverns,” said Ald. Bridget Maniaci, District 2. “No more than 65 percent of their sales could come from alcohol.”

Resnick said in the past month, City Council received recommendations from both the Economic Development Commission and the Downtown Coordinated Committee that the city allow ALDO to sunset. This is the first time since the ordinance began in 2007 that a city committee recommended an end to the ordinance.

“Essentially, ALDO isn’t working the way City Council had envisioned it,” Resnick said.

Ald. Mike Verveer, District 4, said during the last council meeting four alders proposed a substitute amendment that offered a two-year transition period away from ALDO.

Most importantly, this amendment allows for capacity extensions for taverns, providing an incentive for “good behavior” from operators.

Resnick said the proposal received unanimous consent among the alders.

Under the amendment, “good” operators will be given the ability to add capacity. Resnick said operators can now go before the Alcohol License Review Committee and request expanded capacity.

“If you operate within the community and you’re a good operator, those few extra seats would mean extra profit,” Resnick said.

Verveer said the most immediate effect of the amendment concerns the “very robust” entertainment exemption, something he had been fighting for the past two years.

Verveer said he has had to turn down a number of inquiries trying to open establishments in his district.

“People have talked to me about very interesting entertainment venues, particularly some that would cater to those under the age of 21,” he said.

Verveer said there is currently a law that allows those between the ages of 18 and 21 to legally be in bars if those establishments choose to have an 18 and older entertainment license, which requires them to meet certain entertainment guidelines. For example, Segredo is always an 18 and older establishment because they offer a live DJ.

“Underagers are legally allowed to be there and coexist with 21 [and older],” Verveer said. “I’m excited that this ALDO amendment will allow for many cool new places to open up downtown in the next year that are open to underagers.”

Associated Students of Madison representatives testified in favor of the amendment at the City Council meeting, in large part because of the entertainment exemption, Verveer said.

Additionally, the alders offered a resolution to start discussing an alternative to ALDO. Verveer said the resolution has been sent to city hall to discuss implementing a new downtown alcohol plan.

“Theoretically, in two years we’ll have a new plan separate from ALDO to be voted on,” Resnick said.

Maniaci said the ordinance would be discussed again in July 2013.