CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass the ordinance amending Section 3-3-11:2 of the Naperville Municipal Code to increase the cap on the Class S1 - Specialty Food and Liquor Shop by one and pass the ordinance approving a variance from Section 3-3-11:2 to issue a Class S1 - Specialty Food and Liquor Shop license to Buttermilk Naperville, Inc. (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On April 8, 2025, the Liquor Commission considered Buttermilk Naperville Inc. d/b/a Buttermilk Café’s (“Buttermilk”) request for a Class S1 - Specialty Food and Liquor Shop and recommended City Council approval by a 4-3 vote.
BACKGROUND:
The Class S1 - Specialty Food and Liquor Shop is a combined license, which allows off-premises consumption and limited on-premises consumption of not more than three ounces of craft distilled/small batch whiskey, or 18 ounces of wine, or 32 ounces of craft beer per day. The Class S1 liquor license is currently capped at one with Tasting deVine Cellars, located at 21 West Jefferson Avenue, holding the sole license.
DISCUSSION:
Buttermilk operates as a restaurant and does not intend to alter the essential nature of the business. Rather, it is seeking to sell co-branded bourbon whiskey bottles in a closed display unit for customers to enjoy at home. The co-branded whiskey bottles are currently served in the restaurant’s mixed drinks.
The variance process for liquor licensing sets forth the following factors for consideration of a variance:
1. The variance is in harmony with the general purpose and intent of the Liquor Control Ordinance and the variance is not precedent setting; and
2. Strict enforcement of the Liquor Control Ordinances would result in practical difficulties due to special and/or unusual circumstances surrounding the party and circumstances substantially outside the petitioner’s control; and
3. The variance, if granted, will not alter the essential character of the liquor establishment or underlying liquor license requirements and will not be a substantial detriment to adjacent property.
At the Liquor Commission meeting, concerns were raised about other restaurants seeking to sell bottles of alcoholic liquor for off-premises consumption and the ease with which alcoholic liquor can be co-branded. The Liquor Commission narrowly approved the request due to the cap on the liquor license.
As part of the variance request, Buttermilk submitted the $400 fee for processing the variance. If the variance is granted, Buttermilk is still required to comply with all other conditions of the Class S1 - Specialty Food and Liquor Shop and the Naperville Municipal Code. The only exception would be as to the size of the premises and sale of specialty food.
Minutes from the April 8, 2025 Liquor Commission meeting, the variance request, and photographs of the co-branded bourbon whiskey are attached.
FISCAL IMPACT:
Corresponding increase in liquor license fee and corresponding sales tax.