City Hall Diary
Last Tuesday, the city council had two agenda items to vote on that would allow for applicants to sell alcohol: one for a Whole Foods grocery store and the other for a gas station.
State law limits the number of liquor licenses in an area. The City of San Jose went one step further by blocking certain new liquor licenses at the planning commission level. The planning commission must deny liquor licenses so they are heard at the council level upon appeal. I understand this is because the prior council wanted to ensure that the council would hear liquor license applicants. Unfortunately, I think the extra step is a hurdle in encouraging new grocery stores.
Who should sell alcohol? Restaurants? Grocery stores? Gas stations? My answer: grocery stores and restaurants. I believe we should use the prize of a liquor license as a carrot to promote neighborhood-facing businesses.
Liquor licenses are a source of major revenue for the grocery and restaurant industry.Most grocery stores and restaurants would go out of business if they did not have a liquor license. The profit margins from alcohol allow for the creation of new business, jobs, sales tax and community. Residents feel a sense of community around grocery stores and restaurants as they are where we gather.
In a prior blog, I wrote about grocery store economics and the sad fact that grocery stores are missing in San Jose’s neighborhoods. I think of the many grocery stores that have closed and have been converted to gyms, drugstores, discount shops or, worse, converted from commercial land to housing. Grocery stores make very thin margins on food, but they make good margins on beer, wine and spirits. Carrying a variety of different products is how grocery stores keep the doors open.
There are arguments that if you grant a liquor license to a gas station, they will make more money which they can use to spruce up the station. I acknowledge this point and would agree. However, what happens if one gas station gets a liquor license and the one across the street doesn’t? What happens when all the gas stations in one area take all the liquor licenses? What happens when someone wants to open a grocery store or restaurant in an area that is already concentrated with liquor licenses and they are not able to open for business? Let’s face it: alcohol will produce profits for anyone who sells it.
Can you imagine a young family buying a house and one spouse saying to the other, “Wow, honey, let’s buy this house. Even the local gas station sells beer!” Or, can you imagine the same person saying, “Let’s buy this house. It even has a neighborhood grocery store.”
I voted for the grocery store and against the gas station. Both passed.
I’ve not been one to side with these people who lobby against liquor stores in their neighborhood, but I can appreciate the preventative side of things, too. It’s best to plan properly instead of reacting emotionally. I like your modest and moderate approach to SJ’s growth as a city.
Liquor and Gasoline don’t mix well and in hands of irresponsible teenagers or adults can cause drunken driving and accidents as we frequently see
Food and wine / beer mix better and are normal part of life
San Jose has too many liquor only stores for off site sales If San Jose applies different rules to different liquor outlets we will get challenged in court and possibly lose a generally good city liquor control law since using planning approvals is the only way city and residents can control liquor stores
The few grocery stores that do not meet the reasonable liquor off site planning criteria ( distance from homes, schools etc) can go before Planning & Council and easily get approval is justified as recently happened with Whole Foods, Fresh and Easy etc
What businesses can sell liquor? Absolutely the wrong thing to focus on or spend time on.
But I get it: that’s what brings the little old church ladies out to vote.
So I guess we have to talk about it. Wake me up when we’re done.
#2- Much TO DO about nothing.
The phrase is “much ADO about nothing”.
This topic is no Coyote Valley however it makes sense. Cities are shaped by smaller laws or votes. Frankly I don’t care if the gas station sells beer but I do care if the restaurant has a bar or not having to drive multiple miles to a grocery store. Thanks
Pierluigi,
The service stations in our country are in transition. The big oil companies are forcing the Franchise/licence operators out of business.When big oil takes over stations that were owner operated, they close down the grocery part of the station, they also close down the service bays in stations that do repairs. The just want to pour gas and take their profits, move the little guy out of the middle and raise prices.
I understand the point you are making but, times are changing, we are in transition.