Does Liquor License Loom in Middle?

COURT HOUSE – Middle Township has been eligible for a sixth plenary liquor license since the 2010 Census but only recently discovered the fact. 
Mayor Michael Clark said that the fact that the township qualified for another license came to light when officials were dealing with the state on the licensing of breweries that have recently opened.
Although the auction price for such a license could run from $500,000 to $1 million, it is not clear that the township wants to take that step.
At a recent meeting of the Middle Township Committee, members of the committee and business owners with the township’s current licenses expressed concern that profits from a new license might not be sustainable given the general downward trajectory of the county’s population.
The argument from current license holders is that a new license would reduce the value of what they already own. They point to the opening of new breweries in the township which has already cut into their business.
The seasonal nature of the county economy is also a concern. Few worry about sustaining a new venture in the summer months, but off-season business is already hurting.
How it Works
For decades, the State of New Jersey has used the decennial population reports by the U.S. Census Bureau to regulate the number of full liquor licenses a municipality can have.
Unnoticed by a number of officials, the 2010 census qualified the township for a new plenary liquor license, one that allows for on-site consumption in bars or restaurants as well as the sale of package goods.
What makes that a big deal is the amount of revenue the sale of that liquor license can bring in to the township. It is a onetime sale, but it represents a sizable influx of dollars.
The long tradition of home rule in the state gives municipalities discretion on how to proceed with liquor licenses through the regulatory power of ordinances. Governing bodies can even create a “dry town.”
For the sixth liquor license to become a reality in Middle Township, the governing body would have to approve the new license through an ordinance and then put it out to bid in an auction. 
Once a municipality, with the state’s regulations cleared, sells a liquor license, the license holder can resell the license on a private market provided the sale meets the requirements of the municipality’s ordinances.
The expense of these licenses and the population thresholds that govern the distribution of the licenses under state law keep the process constrained. It is difficult to get a New Jersey liquor license and very expensive.
Throughout the state, chains and larger establishments can usually outbid smaller dining establishments, setting up a system of local BYOB (bring your own bottle).
The over 7,000 retail license holders in the state have displayed little interest in changing that process since change risks interfering with the high investment they have already made and the value of that investment on the private market. 
Next?
What happens next and when is unclear. The governing body must decide whether or not to pursue the sixth license.
The committee must also think about what role an available license could have in the redevelopment of the township’s commercial base, one of the committee’s top priorities.
The choices are not easy ones.
A new liquor license could mean a sizable one-time influx of capital at a time when the township is entering its budget season following a year that saw a 5 percent increase in the property tax levy.
That same license could also put pressure on an existing business base in an environment where the population is not expanding.
In the face of it all, the township has expressed a goal of expanding its commercial base and grabbing a larger share of the tourist dollars.
To contact Vince Conti, email vconti@cmcherald.com.