CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving a variance from Section 3-3-11 to issue a Class D - Package Store liquor license to Shree Balchandra 2 LLC d/b/a AJ’s Liquorland for the business located at 1474 East Chicago Avenue.
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DEPARTMENT: Legal Department
SUBMITTED BY: Sabrina Spano, Deputy City Attorney
BOARD/COMMISSION REVIEW:
On August 8, 2024, the Liquor Commission unanimously recommended to Council that AJ’s Liquorland’s request for a variance be granted.
BACKGROUND:
Solo Liquors is a package liquor store located at 1474 East Chicago Avenue.
Class D - Package Store licenses are generally located in large shopping centers unless they are grandfathered in as having been established prior to regulations that contain square footage limitations.
Solo Liquors has a Class D - Package Store license that requires that it be in a shopping center containing at least 60,000 square feet. Because it was grandfathered in, Solo Liquors is currently in a shopping center of less than 60,000 square feet.
Recently, the City was contacted by Aadi Patel (Shree Balchandra 2 LLC d/b/a AJ’s Liquorland) who is seeking to acquire and purchase Solo Liquors. After speaking with staff, Shree Balchandra 2 LLC submitted a variance petition to the square footage requirements so that Class D - Package Store may continue to operate at 1474 East Chicago Avenue to the Liquor Commission. Please see a copy of the variance petition (attached hereto as Exhibit A) and Liquor Commission Minutes (attached hereto as Exhibit B).
Mayor Wehrli (as Liquor Commissioner) recommends approval of the requested variance.
DISCUSSION:
On September 6, 2016, the City Council approved repealing and replacing Chapter 3 (Liquor and Tobacco Control) in its entirety. The new chapter created a procedure for processing variances to liquor license requirements and set 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.
Solo Liquors is in a unique position in that it is an existing business that was grandfathered in prior to Class D - Package Store square footage requirements. It is being sold and acquired by Shree Balchandra 2 LLC d/b/a AJ’s Liquorland. Shree Balchandra 2 LLC, d/b/a AJ’s Liquorland, has submitted the $400 fee for processing the variance. If the variance is granted, it is still required to comply with all other conditions of the Class D license and the Naperville Municipal Code. The only exception would be as to the size of the shopping center.
FISCAL IMPACT:
Continued receipt of annual liquor license fee and corresponding sales tax.