Relates to the exemption of certain parcels of land for alcoholic beverage control purposes

1 Co-sponsor

• Terrence P. Murphy

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 certain parcels of land in the City of Peekskill and Town of Greenburgh to the list of premises which are exempt from the provisions of law which generally restrict manufacturers, wholesalers and retailers from sharing an interest 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 parcels of land in the Town of Greenburgh and the City of Peekskill to the list of parcels which are exempt from these laws. Amends Section 64-c to add a new subdivision 19 by adding a specific parcel of land in the City of Peekskill 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 for specific parcels of land.

Justification

This bill seeks to assist the economic revitalization of the City of Peekskill by enabling the reopening of the Charles Point Marina, which has operated as a restaurant, catering hall and Distillery. The Charles Point Marina was an important part of the cultural life of the City of Peekskill, and its revitalization will provide an economic boost and vitality to the area.

Unfortunately, almost all of the business at the Charles Point Marina have left in the last few years. It was sold in 2014 to Diamond Properties, a business in which two of the partners are successfully operating bowling alley/amusement centers and restaurants throughout Westchester County. Given their track record, there is excitement about the rebirth of the Marina. However, an obstacle arose when it was learned that the provisions of the ABC Law would restrict the holder of a manufacturing license from opening a restaurant-brewery at another location.

Since the 1930s, when Prohibition was repealed, New York State law has restricted owners of alcohol manufacturer's licenses, wholesale licenses and retail licenses from having an interest in each other.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 Beverage 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 a manufacturer to operate a restaurant brewery and for the operation of a restaurant/catering hall in the Marina building.

The Alcoholic Beverage Control Law has previously been amended to create a specific, limited exemptions from the "tied house" restrictions. This bill would create a similar exemption in recognition of the economic value of the Charles Point Marina re-development would have to the city of Peekskill. LEGISLATIVE HISTORY :

New bill.

Fiscal implications

None.

Local fiscal implications

The affected parcel has previously been an important economic contributor to the City of Peekskill, and will help generate sales tax and property tax revenues for the City and County of Westchester.

Effective date

This act shall take effect immediately.