Exempts certain parcels of land from the provisions of law which generally restrict manufacturers, wholesalers and retailers from sharing an interest in a liquor license

1 Co-sponsor

• David J. Valesky

Title of bill

An act to amend the alcoholic beverage control law, in relation to exempting certain parcels of land from the provisions of law which generally restrict manufacturers, wholesalers and retailers from sharing an interest in a liquor license

Purpose or general idea of bill

To allow a developer in the City of Syracuse to apply for a farm brewery license and a craft microbrewery license while still operating retail locations in Central New York.

Summary of specific provisions

Section 1: Amends Section 101(1) of the Alcohol Beverage Control Law to exempt a property in Syracuse New York properties in from the State's "three-tier" law. This will allow the owner to apply for and construct a farm brewery in the City of Syracuse in a previously abandoned building.

Section 2: Amends Section 106 (13) of the Alcohol Beverage Control Law to exempt four properties with retail liquor licenses from the State's "three-tier" law.

Section 2: Establishes the effective date.

Justification

The Alcoholic Beverage Control Law prohibits an establishment with an interest, whether direct or indirect, from manufacturing and selling product at retail. The original intent of the law was to encourage competition in the post-prohibition era; however, in many circumstances it now discourages economic development and hinders job and tax revenue growth.

This bill will allow a local developer in the City of Syracuse to renovate an abandoned industrial building into a new farm brewery that will include manufacturing, hospitality, retail, high-end residential units, and office space. This exemption will allow his other businesses (hotels) in the area to keep their retail licenses and sell products produced at the farm brewery. The exemption is needed because of the ownership structure of the hotels, mortgages on the properties that require the locations to maintain their separate retail licenses, and the limits of the current farm brewery law.

The goal of the farm brewery legislation was to encourage the production and sale of craft beer in New York, as well as encourage craft beverage tourism. Allowing this exemption, will create a new tourism destination in the City of Syracuse, facilitate the redevelopment of a previously unused building, and encourage new economic activity in the City. The project is estimated to create 38 full time jobs over the first 5 years of operation.

Prior legislative history

None.

Fiscal implications

Increased tax revenue.

Effective date

Immediately.