Dennis Liquor Store Stuck in Litigation

DENNISVILLE — Do you live in South Dennis or South Seaville and have to travel all the way to Rio Grande or Marmora for a case of Bud or a bottle of white zin?
If so you might be wondering:
What ever happened to the liquor store that was supposed to open in Dennis Township?
Answer: Although the township awarded its only liquor store license following an auction in November 2006, the matter is still tied up in litigation.
William Wenzel, of Cape May Point, owner of Cape May Wicker, won the closed auction with a bid of $1.1 million, likely one of the highest prices ever paid for a New Jersey liquor license. The minimum bid price set by the township committee was $700,000 and the only other bid of $756,000 was by Clermont Discount Liquors, Inc.
Just like those in the commercial who don’t have Chapman Ford’s emblem on their car or truck, Wenzel “probably paid too much.” According to a Herald story from the time, Malcolm G. Robertson Jr., of Middle Township, Clermont’s president, said afterward that it was the “most expensive liquor license in the state.”
Carol Humes, a Cherry Hill real estate agent familiar with the sale of New Jersey liquor licenses, told the Herald the that the most recent sale in her area was over $1 million and that was for a restaurant license, which are usually less expensive than those for liquor stores. She said prices are usually based on previous sales in the municipality, but when there had been no previous sales there is no benchmark to follow.
On June 15, 2007, Wenzel filed a complaint against the township.
Wenzel’s lawsuit asks that the resolution awarding the license be rescinded and the bid price be returned with interest. He claimed that the township failed to issue the license in a timely manner.
“Since they (Wenzel and his family) were declared to be the successful bidder, they have had several business opportunities that were not pursued because of the delays in the issuance of the license,” Wenzel’s attorney Anthony Monzo wrote to the township.
“It has now come to our attention that the statutory time frame for the issuance of a new license under N.J.S.A. 33:1-19.2 is six months. Accordingly, my clients object to issuance of the license at this point as there is no statutory authority to do so, and demand an immediate return of the entire bid amount together with interest thereon.”
“It was close to nine months after bid was accepted and eight months from full payment before the resolution awarding the license was adopted,” Wenzel’s attorney Anthony Monzo told the Herald.
Wenzel blamed township administration and State Police officers for delaying the licensing process, which involves extensive paperwork, fingerprinting and background checks. According to court documents, township Clerk Jacqueline Justice and State Police Detective Jamie Champ were both unfamiliar with the liquor licensing process.
On June 4, 2007, the Woodbine State Police barracks commander wrote to township officials that any delay resulted from Wenzel’s failure to provide the requested documentation in a timely manner.
On Aug. 29, 2008, Superior Court Judge Valerie Armstrong wrote an opinion transferring the matter to the state Division of Alcoholic Beverage Control (ABC), which has “special agency expertise over which this court does not have jurisdiction.”
But Armstrong vacated her decision on Oct. 10, 2008 and issued a final judgment dismissing Wenzel’s lawsuit and opening it up to appeal.
Where is the appeals process now?
According to Winnie Comfort, spokesperson for the New Jersey courts, Wenzel (appellant) would file briefs to the courts by Feb. 2. The township (respondent) then has until March 4 to file its briefs. Sometime after that, an appellate panel will hear the case and later issue a decision.
If the court sides with Wenzel, there could be some difficult ramifications for Dennis Township taxpayers, who would have to make up for the $1.1 million loss to their coffers.
The saga of liquor in Dennis Township began in 2001 when voters approved a binding referendum to permit the sale and distribution of alcoholic beverages. Based on its population, the township could sell two retail consumption (bar/restaurant) licenses and one retail distribution (liquor store) license. Prior to that, the township had been “dry” since its incorporation in 1826.
The township auctioned one of its restaurant licenses in November 2002. The winner of that license was to Shore Gate Golf Club, owned by the Turner family, with an offer at the minimum bid price of $300,000.
Until the township sells its remaining restaurant license, that golf course is the only game in town if you’re looking for a cocktail.
Whichever side prevails in the Wenzel litigation, Dennis residents can only hope that it is decided quickly so they can stop making their regular trips out of the township for intoxicating beverages.
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com