BY Ann Genader
WEST MILFORD — New business competition might soon be a reality for the 31 township liquor license owners in West Milford — who now face losing the security of a decades-old local requirement for a 2,500-foot distance buffer between them and neighboring competitors. Township officials feel the rule is antiquated and is now a detriment to establishing new businesses.
Currently, just 21 of the licenses are active. State law, passed in 1969, allows one liquor license per 3,000 residents. According to the 2010 census, there are 25,850 people living in West Milford Township.
Supporters of the ordinance believe eliminating the distance buffer will increase the value of licenses currently dormant, enabling their owners to either reactivate them in places previously ineligible for use due to the distance requirement, or sell them to people interested in opening new businesses.
The ordinance The Township of West Milford Council at their Wednesday, April 18 meeting will have a public hearing on Ordinance 2018-03 before voting on whether to eliminate the distance stipulation. The ordinance was introduced by the council on March 28.
According to the ordinance, the council has concluded that the township character, development and business climate, as well as the needs of the current-day residents, have changed significantly in the years since the restriction was originally adopted.
It states that the council finds it to be in the best interest of the township and its citizenry to amend the current township code to do away with the restrictions.
Township representatives have concluded there is no practical business rationale for maintaining a certain distance between establishments having any types of liquor licenses — nor any rational relationship between the asserted purpose for having the 2,500-foot restriction.
Noted in the ordinance is that the township does not have restrictions on similar or competing businesses for any other industry, license or use within the municipality.
It mentions the current 2,500-foot distance limitation was enacted prior to the municipality being subject to the restrictions of the Highlands Act, that in combination with the distance restriction, place significant limitations on the transfer and/or the location of licensed premises within the community.
The document says that records do not indicate any overwhelming or clear justification for retaining the distance limitation.
Township has received requests
The township received three requests in the last 24 months from potential licensees or business owners who were restricted by the distance limitation. The distance requirement impacts the transfer of existing licenses or the establishment of new businesses in the township.
The ordinance states the limitation as it stands, essentially drives zoning decisions and economic development decisions in the township based on location of various licenses. The council wants to promote free enterprise for all property owners and business establishments that have abided by the limitation rule.
Licensees would have the ability to relocate, remain at the same location, or sell their licenses without the distance restrictions.
Distribution liquor licensesLast year, the council adopted an ordinance permitting warehouse-type liquor distribution businesses to encourage economic growth within the township. No one has yet applied for the license.
When advocating the passage of the ordinance, local officials said its sale could earn more than $250,000 for the township.
But not everyone is in favor of the new changes. James Aiello, owner of Greenwood Lake Liquors, Matt Mehta of Uncorked Wines, and several other township liquor store owners all oppose the new ordinances. They claim that the new distribution licenses will devalue the licenses of those operating under a rule that they must provide a bar or pub with their liquor store business. They are involved in litigation seeking to overturn the council action that adopted the ordinance allowing distribution liquor licenses.