Business & Tech

Duluth ARB Recommends Ordinance Change

Change in city's Alcoholic Beverage Ordinance would allow businesses to serve complimentary alcoholic beverages to customers and guests.

Duluth’s Alcohol Review Board Wednesday recommended that the Duluth City Council consider removing wording that gives the city the authority to regulate the distribution of alcoholic beverages.

The change in the city’s Alcoholic Beverage Ordinance would allow downtown merchants to serve complimentary alcoholic beverages to customers and would also apply to all Duluth businesses.

A delegation of downtown Duluth merchants had appealed to the board at its Sept. 14 meeting to add wording to the ordinance that would allow them to serve a glass of wine or beer to their customers or guests within the confines of their businesses at special events and on celebratory occasions. There wasn’t a quorum present, so the decision was postponed until Sept. 28.

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All five members of the board were in attendance this time. Slade Lail was elected chairman, and Gary Anderson was elected vice chairman of the board. Joy Thompson will serve as alternate.

“I think we’re all in agreement that we want to see some form of this allowed,” said ARB member Terry Swaim.

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A lengthy discussion ensued on adding the requested wording to the ordinance including requiring a license or permit for serving free alcoholic beverages, limiting customers to two six-ounce glasses, and allowing service only from noon to 8 p.m. Monday through Saturday.

Anderson raised the issue of whether businesses should have to apply for a permit on a special occasion basis or for an annual license and whether the city should charge a fee. “It’s less than an alcohol permit or license,” he said. “If it’s that important to the businesses we should charge something for it.”

This approach would have allowed the city to monitor the practice. A six-month trial period was also discussed as well as a process for revoking permits/licenses for businesses who abused the privilege. It became clear that this way was becoming complicated.

“If we start regulating it, I think we will be creating a whole new can of worms,” said Swaim.

City Attorney Stephen Pereira explained that Georgia law requires cities to regulate the sale, but not the non-sale or giving away of alcoholic beverages. Duluth’s current ordinance allows it to regulate sale and distribution. Some cities don’t regulate non-sale, he said. Their ordinances are silent on the matter. A silent ordinance doesn’t mean a city sanctions the practice. “It’s just silent,” Pereira said.

“This (change) would be easiest to draft,” Pereira said.

Duluth had included distribution in its ordinance, Pereira said, to discourage adult entertainment businesses from locating in the city. The city now has an ordinance regulating adult entertainment establishments that should protect it, he said.

Pereira also said that city can’t pick and choose the businesses where serving complimentary alcoholic beverages to customers and guests would be allowed. The change would have to apply to businesses throughout the city.

Most hair and nail salons in the city are already serving a glass of wine to customers, City Clerk Teresa Lynn said. “Most of our businesses won’t abuse it, but there will be some who will abuse it.”

The ARB vote to recommend the council eliminate regulating distribution from the city’s ordinance was unanimous.

The recommendation would be forwarded to the city council for consideration at its Oct. 24 work session. Pereira said if the council directs him to draw up an amendment to the ordinance, it could probably be acted upon at the council’s regular meeting Nov. 14.

The board also discussed charging a permit fee for ballroom/special event facilities at the request of Lynn due to increased paperwork. She was asked to come up with suggested fees.


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