Liquor Licenses for Sale, Hours Questioned

WEST CAPE MAY — The borough will offer two liquor licenses for sale, a restaurant license for a minimum bid of $500,000 and a package store license for $600,000.
At a Wed., Oct. 26 meeting, Borough Commission reduced the minimum bid for two licenses from their initial offering two years ago of $750,000 for the restaurant license and $650,000 for a package store license.
Mayor Pamela Kaithern said she received a message from a resident who was concerned about extending the hours of operation from 10 p.m. to midnight, a change from the first offering in 2009.
She said a voter referendum in 2008 on the matter made no mention of hours of operation.
Borough Clerk Elaine Wallace said the referendum only asked if West Cape May should sell one consumption license and one retail license. A third question on the referendum asked if 100 percent of the proceeds of the liquor license fees be used for tax relief.
Kaithern said zoning regulations covering operations of two establishments with liquor licenses did not take effect until 2009.
Deputy Mayor Peter Burke said neither license received a bid two years ago. He said there was a lot of fear about the nation’s economy at that time.
In the 2008 voter referendum, the question of offering a consumption (restaurant) license won by a vote of 348-196, the retail license by a vote of 336-204, said Burke.
Even at a reduced minimum bid, the borough would receive more than $1 million from the sale of the two licenses, he said.
During public comment, innkeeper James Labrusciano said discussion at meetings prior to the voter referendum, “implied very strongly” no liquor would be served in a restaurant after 10 p.m. He said if food is served until midnight, another hour would be needed to clean the kitchen producing more noise in the neighborhood.
Kaithern said live music in a restaurant serving liquor must end by 11 p.m. and comply with the borough’s noise ordinance.
Burke said the plan was not for food to be served until midnight. He said more recent discussion focused on food service until 10 p.m. which led to the possibility food would not be delivered to a table for some time after that and the patrons may want to order a drink while eating their meal, not just at the time they ordered their meal.
He said that was concern was voiced by a party that may bid on the restaurant liquor license.
Burke said alcohol may only be served in conjunction with food service except for patrons waiting for a table in the restaurant. Sale of liquor without food service is not permitted, he said.
A public hearing on the ordinance will be held at commission’s November 9 meeting. The ordinance would take effect 20 days after passage, according to Borough Solicitor Frank Corrado.