Will Crest Go from Dry to Wet?

WILDWOOD CREST – “People are drinking in Wildwood Crest,” Mayor Don Cabrera said April 3.
In hotels and private homes, a glass of wine is enjoyed with dinner or a celebratory beer.
Although a “dry town” since 1940, the Crest’s policy may change if a petition is signed and passed in a possible November referendum.
Crest commissioners, however, want residents to know that change will only result if the public desires an alcohol license.
Cabrera, with Commissioners Joyce Gould and David Thompson, continues to discuss the benefits of allowing one license in the borough. Cabrera believes the license would help retain and create business.
“We (Crest) lose tourists to our neighbors,” Cabrera said. The mayor clarified his statement, explaining how summer guests (and some residents) patronize restaurants in neighboring communities.
As the Crest seeks to revitalize New Jersey Avenue’s business district, allowing a restaurant to serve alcohol would bring additional revenue. 
History
Borough Solicitor Ronald Gelzunas prepared a memorandum April 3 for the governing body, detailing the history behind the Crest’s 1940 referendum.
Commissioners want the public to be aware of Gelzunas’ findings and its impact on the community.
According to Gelzunas, the Alcoholic Beverage Control (ABC) Board was created in 1944.
“It was a different world,” Gelzunas said.
In 1940, three alcohol licenses were held in the Crest and, prior to the Nov. 5 vote, alcohol was sold and consumed.
“This referendum was presented to the Board of Commissioners by a petition signed by 15 percent of the qualified voters of the borough and was approved… on Sept. 23, 1940,” according to the memorandum.
However, Gelzunas discovered a petition from 1935, requesting “a referendum to permit the sale of alcohol for consumption on Sundays.” 205 voted in favor while 129 voted against the measure.
The information was “derived from correspondence received from the Division of Alcoholic Beverage Control correspondence dated Jan. 26, 1935,” Gelzunas wrote.
“This 1935 referendum was denied by the ABC as there was no statutory authorization for such a referendum. It is further unclear why the borough would seek to permit sales of alcohol for consumption only on Sundays,” continued Gelzunas.  
Why the Reversal?
According to Gelzunas, the “ultimate and actual effect” of the referendum was to curtail further issuance of licenses.
Because of this step, the Crest Tavern relocated approximately 250 feet south “of the center line of Jefferson Avenue and Green’s Liquor Store… approximately 130 feet from the center line of Cresse Avenue,” stated Gelzunas.
If the referendum was ever “reversed,” the borough could only issue “one plenary retail consumption license and one plenary retail distribution license,” per state statute.
In 1947, state legislation limited licenses based on a municipality’s population. The “population cap” stands at 3,000 people per consumption license.
According to Gelzunas, the borough was concerned with being “overrun with tap rooms” due to the lack of limitation.
Gelzunas said this explains why Wildwood and North Wildwood “currently have so many licenses.”
However, the 1947 legislation secured the limitation, making the prior concern “irrelevant.” 
Bring Alcohol Back?
Gelzunas said commissioners could place restrictions on the license and also decide how the license is bestowed. The BYOB (bring your own bottle) policy allows patrons to bring their own alcohol, but tension exists concerning advertising.
According to Gelzunas, advertising is allowed under state law. New Jersey’s ban on advertising BYOB was deemed unconstitutional by the U.S. District Court in November 2018.
Gelzunas agreed on the issue’s complexity but told commissioners the borough would lose if a suit ever arose.
Commissioners agreed on restricting the license to the business and/or hotel zones. Cabrera said the administration would work with the Planning Board.
According to Cabrera, a committee would form to address questions concerning the possible referendum. Residents were urged to participate and ask questions.
Cabrera said the committee and public interaction would help guide the process and provide transparency. Police Chief Joseph McGrath would also be consulted.
Gould said the referendum would be included in the general election and not pose additional costs.
Thompson and Cabrera said the license would be “highly regulated” and restrictions, i.e., hours of sale, would be enforced.
To contact Rachel Rogish, email rrogish@cmcherald.com.
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Wildwood Crest released the following April 8:
The Borough of Wildwood Crest is currently soliciting opinions from its residents on whether the borough should permit the sale of alcohol in the borough.
Those who wish to express their thoughts are invited to attend any upcoming meetings of the Wildwood Crest Board of Commissioners, which meets twice per month at Wildwood Crest Borough Hall. A schedule of meetings is available on the borough’s website, www.wildwoodcrest.org.
Should a referendum allowing for the sale of alcohol in Wildwood Crest be passed, the borough would be permitted to issue just one plenary retail consumption license (restaurant/bar license) and one plenary retail distribution license (liquor store) based on a New Jersey statute that limits the issuance of liquor licenses by a municipality with respect to its total year-round population. The borough is not required to issue any such license, however.
Should a referendum pass, the Wildwood Crest Board of Commissioners may elect to issue the borough’s allowable one consumption license for use in a restaurant and within a designated business zone, which could stimulate additional business growth within that district. The borough can also place restrictions on hours of use of such a license.
If such a license is approved, special event permitting could also be considered by the Board of Commissioners on a case-by-case basis for those events that are in accordance with the character of the borough.
There is an exception to the population limitation statute for hotels or motels that contain at least 100 sleeping rooms. Currently, there are a number of such hotels, motels or condotels in Wildwood Crest. Such hotels and motels would qualify for a consumption license, should the borough decide to issue such licenses upon the passage of a referendum allowing for the sale of alcohol.
Any potential issuance of a liquor license would serve as a one-time financial benefit to the borough via the sale – through auction, bid or other process – of said license.
Wildwood Crest has been a “dry” town since a referendum prohibiting the sale of alcohol in the borough was passed in November 1940. Prior to that referendum, alcohol sales were permitted in Wildwood Crest, in which, at one time, there were two liquor licenses.
The 1940 referendum can only be reversed by another referendum, which could be placed on the ballot for the general election this November. In order for the matter to go to referendum, a petition signed by a minimum of 212 registered voters must be presented to the Board of Commissioners. This petition would have to be organized by a registered voter who cast a ballot in the 2017 general election. Following the submission of such a petition, the governing body must then adopt a resolution requesting the Clerk of Cape May County to include this potential referendum in the next general election.
The Borough of Wildwood Crest Police Department and many of the borough’s various volunteer boards – including the Tourism Development Commission, Recreation Commission, Green Team and Wellness Committee – are currently reviewing the issues related to the potential sale of alcohol in the borough. In addition, the borough has already met with several professional planners, all of whom have stated that the addition of one liquor consumption license is vital to a town that prides itself on being a tourism destination, particularly when all of Wildwood Crest’s surrounding communities all permit the sale of alcohol.
Residents of Wildwood Crest may also express their thoughts on this issue via email to borough administrator Connie Mahon at cmahon@wildwoodcrest.org, borough clerk Patricia Feketics at pfeketics@wildwodcrest.org or to the borough’s general email address, info@wildwoodcrest.org.
For further information, contact the borough clerk’s office at (609) 729-8040.