Sunday, October 6, 2013

Guest Post on Off-site Alcohol Sales Permits

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I wanted to thank Josh for allowing me to bring to light what may seem like a very technical and inconsequential issue in San Jose that is actually a very important problem that impacts the lives of many owners and employees of small businesses and residents who live in neighborhoods that are saturated with stores that sell off-site hard alcohol and other spirits.

Specifically, the City of San Jose’s troubling policy of approving essentially all off-site alcohol sales permit requests in areas that have been deemed "over-concentrated" by the state Department of Alcoholic Beverage Control (ABC) as long as the applicant is a big "full service" grocery store like Walmart. Case in point, the city recently approved a liquor license for a Walmart neighborhood market at 4080 Stevens Creek Boulevard even though ABC deemed the area over-concentrated with liquor licenses. And now, the City is looking to rubber stamp yet another request by Walmart to obtain an off-site alcohol sales permit at their location in the Westgate Shopping Center; again, this area is also deemed over-concentrated with liquor licenses by ABC and experiences a fair amount of crime.

Residents, neighbors and merchants have come out in big numbers opposing these alcohol permits in their neighborhoods because they are rightfully worried about the increase in crime and decrease in property values that typically occurs in neighborhoods that are over-saturated with off-site hard alcohol sales. In fact, the San Jose Police Department has stated at public hearings for these permits that an increase in hard alcohol sales in a community results in an increase in crime; which in turn results in decreased property values and other various problems.

Despite this fact, the planning commission and city council consistently continues to approve off-site alcohol sales permits for stores like Walmart regardless if the area is in a high crime area and/or is over-concentrated with liquor licenses. However, if the store requesting an off-site permit is a convenience store or stand-alone liquor store, the commission and council have decided that these small mom and pop businesses are not worthy of the same treatment. In fact, the City's policy is to deny any off-site alcohol sales permits for small businesses that are not "full service grocery" as they are all grouped together as attracting crime and mischief which may be the case for some but certainly not all. Such a blanket policy is both unfair and reeks of greedy tax revenue favoritism of big businesses like Walmart over our small mom and pop businesses that are often run and owned by real people and employees who actually live in San Jose.

Furthermore, when asked what actually constitutes "full service grocery" the city apparently does not even have a working definition or required sales percentage of what that means. So if only 4% of Walmart’s floor space is "grocery" they are still considered full service grocery by the City even if 20% of their floor space is alcohol sales and the rest, other goods. However, if a convenience store has the same percentages they are "a liquor store" and under the city's policy will not be given any new off-site alcohol sales permits because they aren't Walmart essentially and don't generate as much tax revenue for the City.

This unfair treatment of our small businesses over big box stores like Walmart and the approval of off-site alcohol licenses in areas that are already over-concentrated with off-site sales permits and/or are in high crime areas has to stop. This short sighted and greed influenced planning on the City's part will have the long term effect of pushing out mom and pop businesses that have been around for decades while also continuing to increase crime and decrease property values as more and more off-site alcohol permits are granted above and well beyond what should be allowed. The city can start to rectify this problem by denying Walmart’s request for an off-site alcohol sales permit as the Westgate Shopping Center which is already “over-concentrated” with off-site alcohol permits.


If you are interested in more information or updates on this issue or would simply like to comment, please send an email to keepwestgateshoppingcentersafe@gmail.com.

Sincerely,

A Concerned Resident

16 comments:

  1. The Walmart Neighborhood Market at Westgate replaced a Safeway store at the same location. The Safeway store sold beer wine and liquors when it operated at that location. The Walmart Neighborhood Market is not a complete Walmart Superstore. It is primarily a grocery store, carrying a similar array of products one would expect of Safeway or Lucky. Between that and the Target store, there would be two off-site alcohol sales permits at Westgate shopping center—an increase of zero from when the Safeway operated in the same location.

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    1. Exactly. I can't believe Josh allowed this incredibly biased guest post (which also contains some incorrect generalizations). The point about denying off-site sales to non-grocery businesses is wrong. Just in the downtown area Market Beer Co., ISO:Beers, and the new BJ's have gotten off-site permits.

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    2. I am sorry but you are incorrect. If you check with the city, ABC has deemed Walmart’s location at Westgate mall as being over concentrated with liquor licenses which is why the city has to hold a public convenience and necessity hearing on Walmart's license. If approved, Walmart's license at Westgate would be off-site alcohol license number FIVE within only a 1,000 foot radius of Walmart. While 1,000 feet may sound like a lot, it would be five stores selling hard alcohol all within less than 1/5th of a mile from Walmart- 3 is the amount deemed acceptable by ABC. The fact that the location was a Safeway before doesn’t mean that the neighborhood should be ok with being overrun with off-site alcohol licenses. We deserve better long term planning from the city.

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    3. Anon #2 (who I assume wrote the guest post), just admit that you aren't worried about the off-site alcohol sales and that you are against Walmart (and not even a Supercenter, it's just a grocery store) and think it'll "destroy" your neighborhood.

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  2. Sounds like NIMBY to me.

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  3. I for one live in a neighborhood in SJ that has over five stores selling off-site alcohol when there are only supposed to be three and do not like the way my neighborhood is perceived in part because of this. I appreciate this post and Josh allowing it on his blog. Just because someone is against a particular policy or type of business that arguably impacts their community does not make them just another NIMBY.

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    1. Yes they are. Look at the email address they use: "keepwestgateshoppingcentersafe@gmail.com". They don't want the Walmart Neighborhood Market and are using the alcohol sales issue as a way to get their point of view heard.

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    2. Also, based on my experience of how things work in San Jose, we have no idea if this "group" is being backed by other liquor stores in the area who are afraid it will cut into their sales.

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  4. I have yet to see a Wal-Mart or indeed any box store (unless BevMo counts) that contains 20% floorspace dedicated to alcohol sales.

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  5. Is there any evidence that allowing hard alcohol sales will "cause" an increase in crime? If not, I call shenanigans

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    1. I think you may be correct in that. I also haven't seen any statistics or data about off-site sales even correlating to an increase in crime. If I walk into my local Target, say, and buy a bottle of Jack Daniels, does that mean I'm going to immediately pop it open in the parking lot and become drunk and disorderly and looking for car windows to smash in the surrounding neighborhood (where I presumably live)? Of course not! I'm going to take it home and consume it slowly there, one dram at a time (or perhaps two).

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  6. They may or may not be NIMBY Walmart folks posting this but the bigger picture and problem that I agree with as a resident is that the city is pushing through an excessive number of permits for big businesses wanting to sell off-site alcohol sales regardless of what the state recommends or what may be better for the community long term. Just because someone- me included- may not agree with Walmart’s business practices and may not want them in their community doesn’t mean that any arguments against a bad policy the city has should be discredited simply for that reason. Its the equivalent of the "no, you shut up" comeback.

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    1. Did you not see the above reply? The city isn't just approving permits for big businesses and denying "mom and pop" shops as the guest post is claiming.

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  7. If it was a Whole Foods (which also sells beer, wine, and hard alcohol), I'm sure nobody would be against it.

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  8. Hello Guys,

    You can obtain a liquor license in South Australia without representation. However, though it seems easy on the surface the process involves a lot of follow up and documentation that if not done correctly can lead to long delays and financial costs if you a first timer to the industry. You can get it done faster and keep the cost down if you choose to work with a liquor licensing expert.

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