Relates to a license to manufacture and sell alcoholic beverages in a premises commonly known as a restaurant-brewer

BILL NUMBER:S5182A

Title of bill

An act to amend the alcoholic beverage control law, in relation to the exemption of certain parcels of land

Purpose

To add a certain parcel of land in the City of Schenectady to the list of premises which are exempt from the provisions of law which generally restrict manufacturers, wholesalers and retailers from sharing an inter- est in a liquor license.

Summary of provisions

Amends Sections 101(1)(a) and 106(13) of the Alcoholic Beverage Control Law, which restrict the relationships between manufacturers, wholesalers and retailers, by adding a specific parcel of land in the City of Sche- nectady to the list of parcels which are exempt from these laws.

Existing law

Current law restricts ownership interests between alcohol manufacturers, wholesalers and retailers. However, the law has been amended on occasion to create specific exemptions from these general prohibitions.

Justification

This bill seeks to assist the economic revitalization of the City of Schenectady by enabling the reopening of the Van Dyck, which has oper- ated as a restaurant, jazz club and brewery in the historic Stockade neighborhood of Schenectady. The Van Dyck has been an important part of the cultural life of the City of Schenectady since it first opened in the late 1940s, and it has provided an economic boost and vitality to the area, especially for downtown.

Unfortunately, the Van Dyck went out of business in 2007. Late last year, it was sold at auction to a family which is successfully operating a few restaurants in the City of Schenectady. Given their track record, there is excitement about the rebirth of the Van Dyck. However, an obstacle arose when it was learned that the provisions of the ABC Law would restrict the ability to resurrect the brewery at the Van Dyck.

Since the 1930s, when Prohibition was repealed, New York State law has restricted owners of alcohol manufacturer's licenses, wholesale licenses and retail licenses from having an interest in each other. Efforts have been underway to propose a comprehensive update of the Alcoholic Bever- age Control Law, and these types of ownership issues will likely be evaluated as part of any such review.

In the meantime, this bill creates a limited exception to allow the owner of a licensed restaurant to be eligible to reopen the brewery operation which was part of the experience and attraction of the Van Dyck. The Alcoholic Beverage Control Law has previously been amended to create a few specific, limited exemptions from the "tied house"

restrictions. This bill would create a similar exemption in recognition of the economic value of the Van Dyck to the City of Schenectady.

The reopening of the Van Dyck is an important development for the Sche- nectady region. The Van Dyck has historically been a positive asset for the downtown area, helping attract visitors to the City and generating tax revenue. The reestablishment of the brewery at the Van Dyck is an important component of this project.

Legislative history

New bill.

Fiscal implications

None.

Local fiscal implications

The affected parcel has previously been an important economic contribu- tor to the City of Schenectady, and will help generate sales tax and property tax revenues for the City and County of Schenectady.

Effective date

Immediate.