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 create a Class G2 - Boutique Market liquor license (requires six positive votes)
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DEPARTMENT: Legal Department
SUBMITTED BY: Jennifer Bonner, Senior Assistant City Attorney
BOARD/COMMISSION REVIEW:
On December 5, 2024, the Liquor Commission recommended approval of a text amendment to allow on-premises consumption of beer and wine, at a grocery store, with wine service through a customer operated dispensing device.
BACKGROUND:
Heinen’s Inc., a new grocery store being constructed at 1244 East Chicago Avenue, petitioned for a text amendment to allow the on-premises consumption of beer and wine with wine service through a customer operated dispensing device. Heinen’s operates this business model in the following four other Illinois locations without issue: Barrington, Glenview, Bannockburn and Lake Bluff.
DISCUSSION:
Heinen’s will serve and sell draft beer for on-premises consumption while shopping throughout the store with a maximum consumption of two beers per customer. Wine will also be available through an electronic, automated wine dispensing and preservation system designed to keep opened bottles of wine fresh and ready to use over time (“cruvinet wine”), which dispenses wine in servings of 1 ounce, 3 ounces, or 5 ounces. On-premises consumption is already allowed at Mariano’s, a Class U - Specialty Market, however the Heinen’s model is different as it will not have a customer bar. Heinen’s operates on weekdays from 8:00 a.m. to 8:00 p.m. with weekend hours from 8:00 a.m. to 7:00 p.m.
After reviewing potential text amendments to the code, staff determined that the creation of a new liquor license would be appropriate to address the self-service of wine.
The G2 - Boutique Market liquor license requires that:
1. the grocery store premises be at least 45,000 square feet;
2. no more than 8% of the total merchandise display footprint may be used for displaying alcoholic liquor;
3. groceries must account for at least 80% of the store’s total gross sales;
4. at least one sales counter dedicated for on-premises sale of beer and cruvinet wine;
5. Submission to the Liquor Commissioner of a drawing designating the beer and wine service areas along with continuous video monitoring and supervision by a BASSET certified employee;
6. An annual fee is $5,000 and
7. there is a cap of 1, requiring that any future business seeking to obtain this liquor license will need to seek approval from City Council to increase the cap.
Draft minutes from the December 5, 2024 Liquor Commission meeting are attached.
FISCAL IMPACT:
Corresponding increase in liquor license fee and sales tax.