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Expanding Your Restaurant or Bar Concept Out of State? We Can Help!
Did you know that Carlin, Edwards, Brown & Howe, PLLC has a national liquor licensing and development practice? We represent numerous multi-unit restaurant and hotel operators in connection with their licensing and development of new units throughout the United States. We are the exclusive Michigan member firm of the Alliance of Alcohol Industry Attorneys and Consultants, which is an organization of 50 hospitality law firms with a focus similar to ours. We utilize this unique network to coordinate the development of restaurants and hotels throughout the country, and represent our clients before state regulatory agencies and local boards (i.e. planning commission, ZBA, city council). Our membership in the Alliance is a great asset to our clients, as we can help you expand outside of Michigan without doing any legwork to find the right experts in an area of the country that is new to you. We regularly conduct due diligence inquiries on behalf of our clients to obtain pricing for liquor licenses, lease rates, real estate, regulatory fees etc. The Alliance's annual conference is coming up on January 15-17 in Miami, Florida, and we will be there. Please contact us if you have a concept that you are looking to expand out of state, as we would be happy to discuss it with the appropriate Alliance members this January. |
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Congratulations to our Clients on Their Recent
Openings
September-December
2009
TJ's River BBQ
(Howell)
Lucky's Pub & Grille
(Detroit)
Know-Good Pub & Grub
(Atlanta)
Peppino's Grille Pizzeria & Sports Lounge
(Grand Rapids)
Rustica
(Kalamazoo)
Epoch Catering
Genesys Conference and Banquet Center
(Grand Blanc)
Next Door Store
(22 locations in MI)
Toby Keith's
I Love This Bar & Grill*
(Auburn Hills)
*Opening in late December
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Thank You for Another Great Year
John B. Carlin, Jr. (jcarlin@cebhlaw.com) (248) 816-3210
Scott D. Edwards (sedwards@cebhlaw.com) (248) 816-3205
Michael J. Brown (mbrown@cebhlaw.com) (517) 321-4616
J. Patrick Howe (jphowe@cebhlaw.com) (248) 816-3175 |
 Apply for a Quota Liquor License Before It's Too Late
The most common type of on-premise liquor license in Michigan is the Class C Quota License, which are allocated to each municipality at the ratio of 1 license per 1,500 persons. These licenses are issued for a fee of $600 by the Michigan Liquor Control Commission (MLCC) upon the recommendation of the local legislative body (i.e. City Council, Township Board) and approval of the MLCC. Most of the state's municipalities have issued all of the Quota licenses allocated to them under the quota system, and those licenses are either in active use, held in escrow pending sale to a new licensee, or held in escrow for future use by the current licensee. There are however hundreds of Quota licenses still available for issuance by our state's municipalities.
So why is it important to apply for these licenses now? Two words: declining population. The 2010 Census figures will soon be generated, and they likely won't be very uplifting for the state of Michigan. Early census estimates show that "since 2001, migration has cost Michigan 465,000 people, the equivalent of the combined populations of Grand Rapids, Warren and Sterling Heights -- the state's second-, third- and fourth-largest cities." The Detroit News, April 2, 2009. That could mean a decline of over 300 Quota licenses! No matter what the population figures turn out to be, there is no doubt that most unissued Quota licenses will not be available for issuance once the Census figures are finalized, and the MLCC adjusts the quota limitations for each municipality. Quota licenses serve as an economic development tool for municipalities, and many municipalities are eager to issue these licenses because they know they will not be available for issuance after 2010. We are currently processing many Quota license applications on behalf of our clients, and we would be happy to talk to you about whether a Quota license will work for your next project. Call Patrick Howe at (248) 816-3175 for more information regarding the Quota license application process and to request a Quota license availability report. |
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Legislative Update: 5 Year Escrow Period for On-Premise Liquor Licenses Will Likely Be Extended for "Good Cause"
On December 2, 2009, the Michigan Liquor Control Commission unanimously approved an amendment to Rule R436.1107(2) of the Michigan Liquor Control Commission Administrative Rules, which allows a licensee to renew an escrowed license beyond the five year limitation upon a showing of "good cause" to the Commission. The amendment states: "The commission may extend the length of time for which a licensee may renew the license upon written order of the commission after a showing of good cause." The proposed amendment will now move on to the Joint Committee for Administrative Rules for formal approval.
If your escrowed license expired on April 30, 2009, or is set to expire next April, there are certain steps that you must take to preserve your rights under the proposed "good cause" standard. We encourage you to call us to discuss your scenario, as the "good cause" standard is certainly not a bright line test - the individual facts of your situation will truly determine whether you will be able to preserve the rights to your escrowed license. |
Reminder: MLCC Holiday Hours
December 24-26: All On-Premise and Off-Premise Licensees must stop selling alcoholic beverages at 9:00 PM on December 24, and may resume selling alcoholic beverages at 7:00 AM on December 26th. Consumption of alcoholic beverages at on-premise establishments must cease at 9:30 PM on December 24. Alcoholic beverages may not be sold on December 25th.
January 1: On-premise establishments may sell alcoholic beverages until 4:00 AM the morning of January 1. Consumption of alcoholic beverages at on-premise establishments must cease at 4:30 AM on January 1st, and may resume at 7:00 AM. Off-premise licensees must stop selling alcoholic beverages on January 1st at the standard time of 2:00 AM.
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Upcoming Hospitality Industry Events
Liquor Law Enforcement Seminar
January 14, 2010, Hillsdale
http://www.mlba.org/page.cfm/36/
TAM® Train the Trainer Seminar
January 18-19, 2010, Lansing
http://www.mlba.org/page.cfm/36/
ICSC Continuing Education Program
Retail Real Estate Issues
January 28, 2010, Rock Financial Showplace - Novi
http://www.icsc.org/srch/mt/descs/2010S02/2010S02.pdf
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