Mayor’s Moratorium on Food/Drink/Alcohol Establishments in Downtown

This will be discussed tonight at the Plan Commission, Wednesday at ALRC and Thursday at Downtown Coordinating Committee. Question is, does anyone but the mayor think this is a good idea? Or necessary?

What is the Mayor’s Proposal?
Here’s the memo:
March 15, 2016
To: Members of the Alcohol License Review Committee
From: Mayor Paul R. Soglin
Re: Draft Policy for a Temporary Food/Drink/Alcohol Moratorium

State Street and the Capitol Square serve as two of the most vibrant public spaces within the entire
city. Previously, I have spoken with you about the importance of a healthy mix of business types to
ensure that these spaces retain their vibrancy. We know that we need more data, research, and public
input to help determine the proper course of action to maintain a healthy downtown. To that end, the
City is in the final stage of hiring a consultant to conduct a retail study that will help guide our decision. That retail study process, including more robust public input, will take at least a year.

Without immediate action, I fear that we will continue to lose traditional retail on and around State
Street and the Capitol Square. The public has invested tens of millions of dollars in the State Street
Mall and I strongly believe that we will lose the vitality of the street that we worked so hard to build
if we don’t act before the completion of the study.

I appreciate the committee’s time to discuss this important issue at your March 16 meeting. To begin
our discussion, I am outlining my goals for an interim policy. I ask your support for a moratorium
that would cover the following scope:

Retail Preservation Overlay District (draft policy)
Purpose: The Planning Department conducted a review of retail business and retail square footage on State Street and the Capitol Square that demonstrates a significant loss in both business and total square footage of traditional retail over the past 20 years. The Common Council has already directed the City Planning Department to engage a consultant to conduct a retail study on the downtown area. The City’s interest is in maintaining the current business mix until the completion of the larger retail study and the consideration of final recommendations based on the study.

Geographic area: Encompassing, at a minimum, an area that extends two blocks in each direction beyond State Street and the Capitol Square.

Provisions:
a) No new Class A, B, or C alcohol license shall be issued within the described area.
b) No new entertainment license shall be issued within the area.
c) No physical expansions of current alcohol licensed establishments shall be allowable within the area.
d) No new Food/Drink license shall be issued to establishments that are occupying space not previously licensed through Public Health Madison & Dane County within the area.
e) Transfers of alcohol licenses to new locations within the area are not permitted.

Exceptions:
a) Alcohol licenses will be allowable for new construction involving the replacement of a building(s) within the area
for comparable licensed premises that existed on the site previously.
b) New alcohol licenses for hotels will be allowable in the overlay area.
c) Alterations (not expansions) will be allowable for currently licensed establishments in the overlay area.
d) The sale of an existing licensed establishment and subsequent new alcohol license will be permissible within the overlay area at the same location of the existing business for substantially similar licensed premises.

Sunset: The Retail Preservation Overlay District shall expire on December 31, 2018 unless extended or replaced by the Common Council prior to the expiration date.

Why does he want this?
The retail study that was done on the 100- 600 blocks of state street show that there has been a huge shift in what kind of establishments are at the ground floor on State Street from 1989 – 2014.
1989 vs. 2014
Retail/Service (includes services like optical, hair salon, etc.) – 71% vs 49%
Bar/Restaurant – 20% vs. 48%
Vacant/Other – 9% vs 3%
This did not include the 100 Block Foundation Project, the Overture Center (200 block) and the Hub (500 block).

The shift isn’t as dramatic if you look at it in terms of square footage instead of number of businesses:
1989 vs. 2014
Retail/Service – 253,783 sq ft (68%) vs. 202,868 sq ft (54%)
Bar/Restaurant – 65,765 sq ft (18%) vs. 144,761 sq ft (39%)
Vacant/other – 52,917 sq ft (14%) vs. 24,836 sq ft (7%)

There is more details in the report, but that is the gist of it.

Studying State St.
The Council passed this resolution in March of 2015: Directing the Department of Planning and Community and Economic Development to conduct a one or two year collaborative effort to implement many of the recommendations in the 2012 adopted Downtown Plan, and to take an expanded and more detailed look at a number of issues associated with State Street, the Capitol Square, and adjacent areas I really haven’t heard much about progress on this. The actions in that resolution called for:

NOW, THEREFORE, BE IT RESOLVED, that the Department of Planning and Community and Economic Development shall lead a one to two year effort to implement many of the recommendations in the 2012 adopted Downtown Plan, and to take an expanded and more detailed look at the issues noted above relative to the State Street, the Capitol Square and adjacent areas. This effort will consider both the public realm, private realm and the interface between the two, and to consider all possible ideas.

BE IT FURTHER RESOLVED, that this resolution calls for a collaborative effort that includes the full participation of City Staff, elected officials, City commissions and committees, business and property owners, downtown residents, downtown advocacy groups as referenced above and, the citizens of Madison.

BE IT FURTHER RESOLVED, that this resolution directs staff to consider options for preparing a market study and retail analysis to determine what effects recently approved housing, other downtown development, general market forces and a changing retail environment will have on the health of State Street; and, to determine what efforts are needed to strengthen State Street as a retail shopping district.

BE IT FINALLY RESOLVED, that the Downtown Coordinating Committee shall serve as the lead working committee for this effort until another entity is so designated by the Mayor and Common Council.

In October and this week there is an item on the Downtown Coordinating Committee’s agenda that says “Ensuring a Vibrant Downtown Retail Destination: A Retail and Market Analysis for the State Street – Capitol Square – King Street Area” – but there are no attachments.

Is this a real issue?
Is the mayor just blowing smoke? Is this a real issue that people are concerned about? What kind of businesses do people who go to State St. want on State St.? I live 5 blocks from the top of State St. and can’t remember the last time I went there to shop, or go to a bar or restaurant with State St. in mind as a destination. I spend my time and money on the near east side for the most part. And, I don’t really shop. I stay mostly in areas like Willy St, High Noon/Brink, etc. I occasionally go to State St. for meetings – mostly at 122 State St. non-profit ghetto or gulp, Michaelangelos. (I don’t know why people insist on meeting there.) I did buy my glasses on State St., but only cuz I like that eye doctor. Sometimes we go to the comedy club or the Orpheum for a show. But then again, I usually don’t go to the farmer’s market either, and that’s just 3 blocks from my house, I’d rather belong to a CSA. I guess I’m just not a fan of crowds. What do you think? Is this a real issue? Would more stores make you go to State St.? Or, maybe this isn’t about us, but about tourism? Curiously enough, I don’t have strong opinions on this issue. This seems to be one area where the market decides and I’m ok with that. If people want restaurants, bars and coffee shops instead of trinket shops, that might be ok. The internet kinda changed things and I’m not sure that any amount of studying is going to change what State St. is and will be. Now, if we were talking about banning chain restaurants, bars, and stores . . . I’d be all over that! 🙂 I think that is the real issue, if it remains unique . . . there will be a reason to go there as a destination.

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