City ponders new liquor class

By Libby John

DeKalb may add another liquor license class.

At the city council meeting on Feb. 9, 5th Ward Alderman Patrick Conboy suggested the council should consider adding a liquor license class for grocery stores.

The reason, he said, is because it would be a way to attract new businesses.

Recently, two grocery stores in DeKalb shut down, leaving the city with three stores all located on Sycamore Road.

“People who live on the southwest side of the city don’t have easy access to things like milk,” Conboy said.

He said there have been stores that have wanted to move to DeKalb but didn’t when they found out they couldn’t sell liquor.

“There are a limited number of licenses, and there aren’t enough to [attract businesses],” Conboy said.

DeKalb Mayor Greg Sparrow said he hasn’t heard of any stores that didn’t come here because they couldn’t sell liquor.

Last week, the Plan Commission approved construction of a grocery store on the corner of Annie Glidden and Dresser roads. Principal Planner Russ Farnum said at the meeting that DuWayne Andresen, owner of the property, would not build a grocery store if it wasn’t able to sell liquor.

Currently, if a grocery store wanted to sell liquor, it would have to get a Class A license. It is not allowed to sell the liquor within the premises of where the food and other grocery items are.

There are 16 available Class A liquor licenses and all currently are issued.

Jewel-Osco, 1320 Sycamore Road, is the only grocery establishment in DeKalb that sells liquor.

However, Jewel-Osco needed to have a separate corporation, Osco Liquor Inc., to do so. The store that sells liquor has a separate entryway and only those over 21 years old can enter that part.

Juanita Kocanda, who works public affairs for Jewel-Osco, said they held the license between the late 1980s and early 1990s.

Sparrow said the company bought out a tavern, which was on the east side of town on Market Street, and then came to him to ask if they could move the license to their current location.

“Class A is required to have 75 percent of its sales from liquor,” said City Clerk Donna Johnson.

Johnson said it would be unfair for the council to consider adding a separate class just for grocery stores. She said Jewel-Osco had to go through a lot, in terms of buying one of the Class A licenses, to be able to sell liquor.

It wouldn’t be fair to store owners who set up their stores years ago under the current system to have a new class added, Johnson said.

“Bigger companies have huge buying power,” she said. “It could put liquor stores out of business.”

Also, these bigger companies would be able to sell their product cheaper, she said.

The liquor stores depend on the sale of liquor to stay in business, Johnson said. If a grocery store violated a liquor ordinance, it still would be able to sell food and other grocery items. If a liquor store violated the ordinance and got its license suspended or revoked, it would affect the business a lot more.

Louis Schoenburg, owner of American Liquors, said he was against any more additions concerning liquor licenses. He said his establishment is already dealing with a loss in sales.

“We don’t need any more [licenses],” he said. “It’s very difficult right now.”

Sparrow said whether to issue a liquor license to any grocery store or establishment is up to the council.

Johnson said the prior city council ruled to add another Class A liquor license when the population of DeKalb reached 40,000 people. Currently, DeKalb’s population is a little more than 39,000.

Before, the council ruled to add a Class A license when the population reached 35,000 people. When that time came, the council decided to wait until the population was 40,000. Johnson said it was possible that the same thing could happen again.

Conboy said he thought it was time for the council to re-evaluate the liquor license regulations.

“We have to deal with the issue outside of the box,” he said. “I wanted to generate some thought and conversation.”

Johnson said she didn’t think it was necessary to offer a liquor license in order to get grocery stores to open here.

“People need food and if the demand is there, businesses will come,” she said.