A city subcommittee involved in downtown alcohol policy may take steps to eliminate a rule restricting downtown tavern owners if they adopt recommendations proposed by many members of the public.
The city’s Alcohol Licensing Density Ordinance subcommittee also unanimously approved appointing subcommittee member Mark Woulf as vice chair at Thursday night’s meeting.
The majority of the meeting focused on the relationship between ALDO and entertainment venues. Local real estate and business owners all supported the elimination of the 365-day rule, which limits the amount of time for property owners to find a new tenant in order to keep their current alcohol license.
Local business owners also expressed disappointment with ALDO’s limitations regarding entertainment venues. Currently, entertainment-based establishments are categorized as an “exceptional circumstance” and can have no more than 25 percent of the gross revenue attributed to alcohol sales.
Business Improvement District Director Mary Carbine advocated a raise in the alcohol limits to allow for more entertainment options downtown because the venues would primarily generate revenue through alcohol sales to offset the cost of entertainment acts.
Additionally, local commercial real estate broker John Bergh said the current alcohol sales limit prevents national entertainment chains from even considering opening a venue in Madison.
“The fact is, tenants won’t even take a look at Madison because of the clause,” Bergh said. “There’s not even a conversation; they’re unwilling to take a look at the marketplace.”
Carbine proposed an amendment to address the dilemma by creating a separate subsection for entertainment licenses that caps alcohol sales at 65 percent. She said the number is a fair compromise between the current ALDO limits and what BID would prefer that would still create economic viability for new entertainment venues.
While Carbine said the BID preferred the limit be raised to 75 or 80 percent, she said the city’s Alcohol License Review Committee should focus on analyzing a business’s costs instead of revenues in order to better identify the type of establishment.
One such entertainment act currently seeking a venue in the downtown area is a dueling piano group, local real estate broker Mitch Quade said. He said ALDO’s licensing barriers have prevented the act from coming to Madison.
Subcommittee member Pamela Bean said the subcommittee must be wary of relaxing alcohol limits because businesses could exploit the rules. She added she believes the public’s claims have not matched reality because she has not heard concrete examples of conflict.
“I agree that we need to have a long term law to allow opportunities for entertainment to come downtown,” Bean said. “But I want to be cautious because Segredo, which we thought would be a breakthrough, was not a successful venture.”
The subcommittee used a survey presented by Downtown Madison Inc. president Susan Schmitz as a guide, which asked college students and adults alike what establishments they desired to see more of downtown.
Schmitz said “more entertainment venues” topped the respondents’ wish list. She added students also most commonly desired a first-run movie theater, late night shopping and late night dining.
After numerous hours of public input over the past several months, Bean said the next subcommittee meeting needs to be dedicated to discussion among members. The meeting, which will be held next Tuesday at 4 p.m., is the final meeting before the subcommittee’s annual review.
