Title
Resolution to Establish the Ann Arbor Downtown Development District as a Redevelopment District Under the Michigan Liquor Control Act
Memorandum
The Michigan Liquor Control Act was recently amended to create a new type of on-premise liquor license, the Development District Liquor License, which are not regulated by the Michigan Liquor Control Commission’s “quota system.” The current quota system limits the number of new on-premises liquor license for Ann Arbor to 1 license for every 1,500 persons living in the City. The new liquor license supplements the quota system and allows the State and the City to use liquor licensing as a means to promote development and revitalize communities.
There are a number of requirements that a business must meet in order to qualify for a Development District Liquor License. In addition, the applicant must show that a quota license is not available from the City and that an escrowed license is not available in the City.
The licenses differ from other Class C or Tavern quota licenses in that:
(i)Development District Liquor Licenses are not transferable to another location;
(ii) If the licensee were to go out of business, the license must be surrendered to the MLCC and the MLCC will make it available to the municipality for reissuance; and
(iii) A Development District Liquor License surrendered to the MLCC must remain within the Development District. The MLCC may approve reissuance of the license to an applicant within the District that meets the eligibility requirements.
The Ann Arbor Downtown Development Authority is supportive of establishment of its district as a Development District for liquor licensing.
Staff
Prepared by: Mary Joan Fales, Senior Assistant City Attorney
Sponsored by: Council Ad-hoc Liquor License Committee
Body
Whereas, Public Act 501 of 2006 created a new type of public on-premise liquor license, the Downtown District Liquor License, to allow local municipalities and the Michigan Liquor Control Commission to use liquor licensing as a means to promote redevelopment and revitalization of downtowns;
Whereas, A Downtown Development Authority may receive one license for each $200,000.00 of investment reached in the District and for each major fraction thereof after the initial threshold is reached;
Whereas, A Downtown District Liquor License is not regulated by the MLCC quota system and must remain within the development district;
Whereas, In order to recommend issuance of a Downtown District Liquor License, the City must first adopt a resolution certifying the existence of the downtown district established under the Downtown Development Authority Act, confirm that the district is recognized as a “Redevelopment Project Area” and provide evidence of the boundaries of the downtown district to the MLCC; and
Whereas, The Ad-hoc Liquor License Committee being fully apprised of the provisions concerning the Downtown District Liquor License recommends to City Council the establishment of the Development District;
RESOLVED, That City Council certify the existence of the Ann Arbor Downtown Development District established by City Council Ordinance No. 14-82 pursuant to Act 197 of the Public Acts of 1975;
RESOLVED, That City Council certifies that the boundaries of the Ann Arbor Downtown Development District as adopted in Section 1:154 of the Ann Arbor City Code are recognized as a “Redevelopment Project Area” consistent with the adopted Development Plan for the Downtown District;
RESOLVED, That City Council establishes Ann Arbor Downtown Development District as a Redevelopment District under the provisions of the Michigan Liquor Control Act; and
RESOLVED, That City Clerk be directed to forward a copy of this Resolution to the Michigan Liquor Control Commission with all required supporting documentation to record the establishment of the Redevelopment District.