CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the ordinance amending 3-3-3 and 3-3-11 of the Naperville Municipal Code by adding a definition of artisanal tequila, allowing the sale of artisanal tequila at a Class S1 - Specialty Food and Liquor Shop, and lowering the cap on the Late-Night Permit to 21 (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On January 8, 2026, the Liquor Commission (“Commission”) considered the request to allow the sale of artisanal tequila at a Class S1 - Specialty Food and Liquor Shop and unanimously recommended approval. Draft minutes from January 8, 2026, are attached.
BACKGROUND:
The Class S1 - Specialty Food and Liquor Shop liquor license authorizes off-premises sales of alcoholic beverages, including beer, wine bearing the establishment’s private label, and craft-distilled or small-batch whiskey. The license also permits limited on-premises consumption, capped at 3 ounces of craft or small-batch whiskey, 18 ounces of wine, or 32 ounces of craft beer per person per day.
Barrel & Heritage, formerly known as Tasting deVine, is seeking a text amendment to allow the service and package sale of artisanal tequila. The request would apply the same on-premises consumption limits and conditions that currently govern craft-distilled and small-batch whiskey. The proposed tequila offerings are attached for reference.
DISCUSSION:
At its meeting, the Commission heard from Barrel & Heritage, which is seeking to broaden its customer base by adding artisanal tequila to its offerings. Given that the business has operated without incident since introducing small-batch whiskey in 2021, the Commission issued a positive recommendation.
The Class S1 - Specialty Food and Liquor Shop category is capped at two liquor licenses, both of which are currently in use; therefore, any future applicants would require a text amendment to obtain this license.
In addition, City staff reviewed current liquor licenses and late-night permits. With three restaurants closing and another business surrendering its permit, staff recommends reducing the downtown late-night permit cap to twenty-one. This reduction ensures that City Council will review and approve any future requests.
FISCAL IMPACT:
Corresponding increase in sales tax for the sale of artisanal tequila.