RECENT COMMENTS
Name two more good spots to sell liquor in the East End
An message from House of Delegates representative Jennifer McClellan seeks your input on the proposal to privatize ABC sales in Virginia:
On September 8th, Governor McDonnell’s ABC Privatization Plan was presented to a subcommittee of the Government Reform & Restructuring Commission. […] the number of stores selling liquor would likely triple (from the current 332 stores to 1,000) with only a 25 percent increase in ABC enforcement officers (22 new officers). Such an increase in liquor retail establishments could have a negative impact our neighborhoods that already struggle with the state-owned stores.
I’d like to hear what you think. Email me at deljmcclellan@house.virginia.gov, call my office at 804-698-1171, or share your thoughts on my Facebook page or website.
In December 2009, the ABC store at 25th and Venable Streets, rumored to be the most profitable in the state, became the only ABC store in the state that does not sell minis (singles, airplane bottles) in large part with the help of Delegate McClellan.
I don’t really care either way if the ABC is private or state run, I get the arguments on both sides. What scares me more than a little is the impact of more wide-open ABC sales on the parts of the neighborhood that already suffer widespread alcohol problems.
I doubt there would be a plethora of liquors stores popping up in the area due to the initial cost of a license…starting bids at $100K?
Does anyone know if the current ABC store in Venable would be grandfathered in, or could this perhaps lead to that store closing?
Why not privatize and let the neighborhoods judge whether or not to allow sales in their area. I assume getting a liquor license will be like any other alcohol retail license. You apply for the license, it is posted to the public, and local businesses and property owners will have a chance to protest the license if they don’t approve. That’s how it’s done in many states. The only good argument I have heard on the side of keeping things state run, is that the ABC stores will be hurt financially. That is one thing I can agree with. I feel bad for them, but would still love to see a fine spirits store. Most of the selection in the ABC stores suck.
This hasn’t been very effective. The right to conduct your business on your property has been given higher precedence than community concerns in every case that I have seen.
ABC privatization will lead to the sale and likely closure of the Venable Street location. That store is one of the few actually owned by ABC.
I think SEW is correct in guessing that our local guys are not going to fork over $100,000+ for a liquor retail license.
John, I think the efforts of the anti-privatization groups would be better directed towards this. I think the community should always have a say in the businesses and sales that enter their area, especially when they will be directly effected. Privatization of liquor sale itself is only better for the consumers.
Which leads to this: does anyone familiar with the proposal have information about how this aspect may or may not be different?
This whole thing is a side show from more important state issues.
I am not necessarily against privatization, but its not going to solve budget crises or the long term need for better mass transportation.
I would prefer our state representatives keep their eyes more on priorities and less on their opponents. Yet another reason we need third, fourth, and fifth parties.
This is a little off topic but what will privatization do to the price of liquor?
According to a Price Waterhose study done for the state in 1994, prices would increase 30%.
Jeff Shapiro of the Times Dispatch did a back of the envelope calculation in his column the other day and he figures prices would go up 18%.
The entire ABC store issue is going to be McDonnell’s version of the famous Car Tax and just about as appropriate and helpful. I wonder how VDOT finding big heaps of money sitting around will impact this fraud of selling the stores.
The State has no business selling liquor. Tax it and be gone. Competition is a good thing. It will never happen in VA because of anecdotal surveys…”Four out of five dentists recommend sugarless gum to their patients who chew gum.” All I know is that P-Diddy drinks Roc and Courvoisier. Thanks VA ABC!
ray #11 – I saw Jeff Shapiro’s column and figures, and the 18% increase was very logical.
Right on Broad #12 – I’ve been thinking about the car tax analogy for awhile, your comment is the first time I’ve seen anyone make the same analogy.
Also, I don’t think we would end up with a store here in the east end, other than Sam’s Club out in White Oaks. I can’t see anyone putting up 100k to keep the one up on 25th St. open, and I suspect it would just be sold and closed. No clue where some residents w/out cars would go then unless they start a bus route out to White Oaks. I’ve been thinking, and cannot come up with a suggestion as to where else to locate one in the east end. Although the one on 25th supposedly has high sales, so maybe we’re about to get a Walmart liquor store on 25th?! Or maye a private individual or group will see it as a viable business and buy the license as well as the store? How would that fit with the supposed revitalization of 25th St. and what do you reckon Bon Secours would think of that?
The Venable location is far from being the most profitable in the state or even the city. See Virginia ABC’s 2009 annual report at http://www.abc.virginia.gov/admin/annual/docs/2009ar.pdf
The privatization proposal would grant 1,000 operating licenses state-wide: 600 for large establishments such as grocery stores, 150 for smaller locations such as package stores and wine and beer shops and 250 for convenience stores and retail pharmacies.
I would expect the Market to try to get one of these licenses.
I also expect bidding will keep the licenses out of mom and pop store owners’ hands. New stores will also likely be in high-traffic areas. They need high-volume sales to pay for the license. If a license cost $100,000 a year, then they need almost $275 in profit a day from it just to break even.
Oops. I stand corrected on that last sentence. It’s not $100,000 per year.
From the Associated Press:
“Licenses would be granted in perpetuity, but could be sold, transferred or leased.
No single company could control more than 25 percent of the licenses within any of the three levels.
Businesses that already hold wine and beer licenses and have a good track record will get special consideration.
License prices can range from $477,000 for a major chain retailer seeking a Level One license in a major market to nearly $103,000 for a mom-and-pop license in a rural area.”
With the Venable St. ABC store making nearly $300,000 in profit in 2009. It could be well worth someone paying $100,000 for a liquor license that never expired and could be sold for a profit later on.
And if a mom and pop store can’t afford to buy a license, they could still lease one from someone who bought it as an investment.
I don’t think you folks are tough enough. I am old enough to remember when we drove from Portsmouth to DC to stock up, and hoped we didn’t get stopped on the way home. (no, we didn’t have to use covered wagons)
Due to cost of the liquor license, I believe that there will be no place that sells liquor anywhere near our neighborhood. The closest outlet would probably be the Walmart unless the local grocery stores want to stock liquor. We would lose all that tax money, of course.
I think it is absurd that we will now not have immediate neighborhood access to liquor. I agree with edg in saying that its interesting that we will now loose all that tax money as well. I wonder if there is an ulterior motive behind this increase.
And for the record, Right on Broad and crd, it never occurred to me, but McDonnell’s car tax does seem like an apt comparison.
Ugh, just thinking about having to go to Wal-Mart for my liquor gives me the heebie jeebies. I’m hoping some mom and pop or local grocery stores can be successful if they purchase a liquor license. I know I’ll do my best to support them!
So if we lose out on some of this tax money, I can only imagine what our roads/sidewalks will look like in the future!
What is the logic behind charging $100k to $500k for a liquor license? Sounds like this was made to only benefit high volume chains. Maybe this is the states way of protecting the ABC stores.
Jeb, Have you been to the 25th and Venable Street location? You don’t know “heebie jeebies” until you have.
Houdon, yes, you are right, I have been there and try to spend as little time as possible in that store. I would just like to see some smaller stores be successful rather than the large retail outlets.
James,
The logic (if you want to call it that) is to make money for the state.
I really don’t see anything wrong with the way things are set up now…who the hell wants to go to Wal-Mart for their liquor? Granted 25th and Venable is sketchy but at least it’s not Wal-Mart!
Jeb, I agree with you. I’ll support our local businesses before I’ll go to a big box place any day.
SEW,
It seems that by making money for the government, they will ruin any chance of having small specialty liquor stores to cover high end spirits. That was the one thing I was hoping for. I am not worried about going to Walmart for liquor, as there is no Walmart near us. I am tired of going to state run liquor stores which have only main stream spirits.
As it stands, I am not sure I am in favor of the new privatization. $100k a year is outrageous for a liquor license. Doesn’t the state take enough money from us in the form of taxes?
why would anyone live up here in what seems to be a constant state of fear ?wow if the venable location is one of the least profitable does that mean that theargument that the locals portrayed as a bunch of boozers loses creedence?what is the density of liquor store locations in more affluent hoods? any brainiac got the 411 on that bit of info?
If you are intersted in a little adventure tourism, take a drive through Anastasia in SE DC. The soul food stores are all run by Koreans and there’s a liquor store every couple of blocks. Hope this map works, otherwise use this link
Liquor stores in DC
View Larger Map
There is a contingent of neighborhood folks who don’t even want the corner stores to sell beer or wine, much less liquor. I wonder where they stand on this issue.
Paul #29, don’t you mean Anacostia?
Yeah, I just realized that, Marion Barry’s home turf I think. I visited once looking for some authentic cuisine and came across the quintessential confrontation of a local malcontent accusing the Korean shop owner shop of cheating her. Neither one spoke the other’s language.
i am not playing trump my ghetto! anybody know how many beer,wine and liquor venues are within a five minute drive in and around say short pump? i mean we probably need to make sure those suburb types dont have TOO much access to alcohol. i mean everybody knows how THOSE people act with too much temptation close by. somebody oughta do something,maybe a task force can be formed. perhaps a faith based initiative would help. pray for those unfortunates my fellow residents or you know ….dont.buddycorbett
#30 TO THE FAR RIGHT WHERE THEY ALWAYS STAND!
Wow, I agree with Buddy here.