After failing to get the OK from state lawmakers, Greenwood has found a way to get more alcohol permits that would allow more restaurants to move into key redevelopment areas.
Under state law, a maximum of 34 licenses can be issued to restaurants and bars in the city that would serve beer, wine and liquor — the most desired type of license. But all of those licenses have already been issued, meaning attracting new restaurants, such as to the downtown area where redevelopment is underway, is a struggle.
After a proposal that would have allowed Greenwood, Bargersville and two other communities in the state additional alcohol permits didn’t get a hearing earlier this year, Greenwood Mayor Mark Myers began exploring options.
What he found was a law that has been in effect since 2004, which allows communities to establish a riverfront district along any moving body of water. That district allows a community to get an unlimited amount of alcohol permits to be used in a specific area, which have to be reviewed by the city and state.
For Greenwood, Pleasant Creek that runs through Old City Park is the perfect location since it would cover the downtown area, including the former Greenwood Middle School the city purchased to redevelop as a space for restaurants, shops and apartments, Myers said.
If approved, restaurants could get a one-year alcohol permit for $1,000, which is the only way that the city will be able to attract high-quality restaurants to the downtown area, Myers said. A high-end steakhouse is one type of restaurant that Myers would like to see come to the downtown area, but he said that they are looking at everything from popular national chains to locally owned cafes.
“We are still talking to restaurant owners that want to come downtown, but can’t do it without the alcohol license,” Myers said.
For now, Myers is working with city council members who would need to approve the designation. He hopes to make the proposal later this summer. Earlier this week, the Greenwood Redevelopment Commission approved paying a law firm up to $40,000 for legal work to establish a riverfront district in the city. The riverfront district would need to be approved by the Greenwood City Council, which can set a limit on how many permits can be issued for the district, per state law.
At least 20 other Indiana communities have also set up riverfront districts, Kokomo Deputy Mayor David Tharp said. Kokomo set up a riverfront district in 2009 along a section of Wildcat Creek.
The decision resulted in significant investment in their downtown area, including a cluster of new restaurants, which led to an increase of visitors and millions of dollars in private investment, including luxury apartments and a hotel, Tharp said.
“The program has been incredibly successful,” Tharp said. “I would definitely encourage others to do it.”
Columbus set up its riverfront district in 2009 and currently has 10 restaurants that use alcohol licenses acquired through it, said Heather Pope, director of redevelopment for Columbus.
“This has really helped grow our downtown dining options,” Pope said.
In both Kokomo and Columbus, the city’s redevelopment commission reviews the permit and votes on whether to recommend approval or rejecting the license. The mayor then makes a final recommendation, which is given to the Indiana Alcohol and Tobacco Commission. The permit lasts one year and restaurants must pay a fee of $1,000 to the commission.
In Greenwood, because all of the licenses allowing the sale of beer, wine and liquor have been issued, a new restaurant often will have to purchase a license from someone who is no longer using it because a restaurant has closed or is no longer selling alcohol.
Steve Campbell, who plans to open Campbell’s Highland Grille later this summer in Greenwood, said the price for those licenses ranged from $50,000 to $200,000, but that purchasing one was essential to opening his restaurant.
With plans to redevelop the 16-acre former middle school site, the ability to attract restaurants will be key, redevelopment commission president Brent Tilson said. Restaurants play a vital role in keeping a downtown area active, as they draw people in to shop at other stores, Tilson said.
City officials envision the former middle school as one day being redeveloped into a multi-use commercial area, with restaurants, stores, offices, apartments and townhomes. Demolition is set to take place this fall. Next year, the city will begin to accept proposals from developers of what they would like to do with the site, with the possibility for some of that development beginning in the summer or fall of 2019.
But the process of getting the riverfront district set up has just started, Tilson said.
While the riverfront district will be a good way to get additional restaurants downtown, the city needs to be careful about some of the issues this could present, such as making the distribution of liquor licenses a decision made by the city, rather than an outside board, and bringing more alcohol to an area that includes city parks and trails, said Chuck Landon, a member of the city council and redevelopment commission.
The need to draw additional visitors downtown is why the riverfront district is needed, city council president and redevelopment commission member Mike Campbell said.
“I like the opportunities this would create,” he said. “This allows us to create something in the downtown area that could be a draw from a tourist perspective.”
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Greenwood is considering establishing a riverfront district in the downtown area that would allow it to bring in additional restaurants. Here’s what is proposed:
Where: The district would be around Pleasant Run Creek in downtown Greenwood and would cover properties north to Pearl Street and south to the former middle school.
What: A riverfront district allows the city to issue alcohol licenses to restaurants that wouldn’t count against the state-mandated cap for the city. The licenses last a year and the restaurant must pay a $1,000 fee to the Indiana Alcohol and Tobacco Commission.
The process: The city has hired a law firm to create the plans for the district, which will need to be approved by the Greenwood City Council.
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