The city of Madison, which usually distributes between 25 and 30 liquor licenses per year, has only six remaining Class B-combination liquor and beer licenses to distribute, for which seven businesses have already applied.

The Tavern League of Wisconsin initiated the quota in 1997, according to Ald. Mike Verveer, District 4. Verveer, who also serves as a member on the Alcohol License Review Committee, the group responsible for reviewing all applicants for liquor licenses, said the committee does not know how it will distribute the remaining licenses.

“Many potential combination liquor license applicants have already approached me and are worried,” Verveer said. “It’s not the city’s making, and no one is happy with the position we find ourselves in with the quotas.”

Ald. Judy Olsen, District 6, also a member of the ALRC, said it will take some time before the committee knows the best way to deal with the quota.

“I think the only thing the ALRC can do is to develop a thoughtful plan for how to distribute licenses in the future,” Olsen said. “The first thing we will do is establish a policy or statement that says we’ll be giving licenses on a first-come first-serve basis until we have some set of criteria to rely upon.”

The population of the city determines the quota of liquor licenses. Madison’s population will be reevaluated this fall, Verveer said. Madison is expected to receive fewer than 10 new combination licenses, he added.

A Class B-combination liquor and beer license allows restaurants and bars to have a full bar, including hard alcohol. A beer and wine license, which is not subject to the quota, is a cheaper alternative for businesses that may not be able to receive a combination liquor license, Verveer said.

According to Verveer, once all of the combination liquor licenses are distributed, the only way a business would be able to offer a full bar would be to buy an establishment that already owns a combination liquor and beer license, clarifying that the licenses are tied to the addresses of the businesses.

Verveer said he does not believe all businesses will be hurt. Some restaurants only have enough room for a cooler of beer or offer a menu with which most customers typically only drink beer or wine. These restaurants, he added, do not need a full liquor license.

Other businesses, such as steakhouses, may be affected because patrons are more willing to drink hard alcohol with their dinners.

Kami Eshraghi, owner of the Kimia Lounge, said he does not understand why people are surprised about the lack of licenses.

“It’s like getting your student loans and spending them in the first month and you’re broke,” Eshraghi said.

Eshraghi, who will also be running for City Council this year, said he believes the licenses were given out too freely over the years and now future businesses are dealing with the effects.

According to Eshraghi, restaurants with seating for 300 or more people are not included in the quota and can still open after all the licenses are given out.

“[This limits] the ability of local small-business people … to be part of the community,” Eshraghi said.

Verveer said he is not worried about large businesses dominating the city because there are few restaurants or bars in Madison that are large enough to have a 300-person capacity. Club Majestic and Madison Avenue are the exceptions, he added.

“I don’t know what other communities in the state have come against the quota,” Olsen said. “It seems to me it’s time for a review.”