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Legislator Seeks To Reform State Liquor Licensing In The Name Of Economic Development

Simon Thompson

There are only 1411 liquor licenses in New Mexico and the limited supply means selling liquor can be financially impossible for small businesses.

New Mexico licenses can sell for anywhere from $300,000 to $1 million. Compare that to Colorado where liquor licenses are about $2500.00.

With a big farmers market, the Rio Grande theatre and a soon to be completed plaza, Las Cruces is trying to revitalize its downtown.  Main Street Bistro owner manager Nick Ray said business is looking good.  But even when the plaza is completed Ray said there may still be something missing.

“We do get on a daily basis upwards of 10 requests for a margarita or a martini or bloody mary’s.” Ray said.

The restaurant can’t serve liquor; not straight up or even in mixed drinks.  The Main Street Bistro is only licensed to sell beer and wine.

http://www.youtube.com/watch?v=yGf1HAM4008&feature=youtu.be

“You have to apologize and a lot of them kind of understand, a lot of them will turn around and leave.They are here just to party and they want what they are use to. They want their whiskey and coke and their jack and coke.” Ray said.

In New Mexico there are only 1411 liquor licenses- and the limited supply means the licenses sell for anywhere from $300,000 to 1 million dollars. Compare that to Colorado where licenses sell for about $2500.00.
 

Credit Simon Thompson
Once completed the Las Cruces downtown plaza is expected to attract more foot traffic and businesses to main street.

“The shear massive weight of the money it would require!” Ray said  “Most of the people that have the New Mexico licenses are Walgreens, Walmart’s and conglomerate. Food chains like Chilli’s and Applebee’s. They come in big shoulders and buy it right away. Little places like us can’t do it.”

Senator Bill Soules is pushing legislation that would offer a special liquor license for $2,500. But not without restrictions.

“It would be a limited liquor license that would allow them to sell spirits hard liquor, not just beer and wine. But they would not be able to sell any brand, just those that were distilled in New Mexico. That would go into New Mexico branding, into New Mexico true campaign it would support New Mexico industries.” Soules said.

While the Main Street Bistro and other small businesses would benefit from Soules’ proposal some who already own liquor licenses are vehemently opposed to the idea.

“People have told me ohhh it is so hard to find a liquor license, you can’t even buy one if you want to”.  I can have a new liquor license under contract, in 30 minutes from today, from this moment if I had the money to do it.” said  Marci Dickerson.

Marci Dickerson owns The Game sports bar and restaurant as well as a catering business.   She said it’s not impossible to get a liquor license in New Mexico, she holds three in Dona Ana County.   Dickerson admits the state’s liquor licensing isn’t ideal, but offering special licenses for 25-hundred dollars would unfairly devalue existing licenses. Even with the proposed restrictions requiring the liquor sold to be produced in the state.

“Whether the vodka is made in New Mexico or the vodka is made any where else in the world, it is still vodka.” Dickerson said

“Liquor licenses in New Mexico are one of the safest investments you can have. Because they constantly appreciate in value. so banks are willing to loan against them.” Dickerson said.

Dickerson says her $300,000 investment has gone up $30,000 in value in the past 3 years. 

But Soules says that investment growth is coming at the expense of economic development in the region.

“Quality of life we know on bringing bright sharp minds, in whatever business they are in . There has been a real push in downtown Las Cruces on having housing down there, apartment style housing where people can live and work in a walk-able community. Part of a walkable community means you have to have grocery stores, you also have to have entertainment and activities for them to do. Having a few businesses and restaurants that have a pub license like this allows for more vibrant music scenes down there, a night life scene other kinds for things that are responsible kinds of entertainment. That also to build to all the economic development.“

Soules said the concerns of existing license owners like Dickerson are not unjustified. But can be managed by county governments. The bill allows counties to determine the areas where the special licenses could be used.

 “A downtown revitalization area, historic zone. There are a couple of other designation zones.”

Main Street Bistro owner Nick Ray sayid he hopes it could not only help his profits but also attract more businesses and make for a more vibrant downtown.

”I’d be open later, because I’d be getting the bar people in. I’d serve different types of appetizers. I could open after 9 pm or something and be just a bar.“ Ray said.

KRWG also reached out to the New Mexico restaurant association. The organization acknowledged both the pros and cons of the proposal, but is choosing to remain neutral on the legislation.

New Mexico is one of 25 states to limit the number of liquor license, which keeps many small businesses from ever owning one.

 

Simon Thompson was a reporter/producer for KRWG-TV's Newsmakers from 2014 to 2017. Encores of his work appear from time to time on KRWG-TV's Newsmakers and KRWG-FM's Fronteras-A Changing America.