Annual Review of the Alcohol License Density Ordinance

Submitted March 15, 2013

What did the Alcohol License Density Ordinance (ALDO) set out to accomplish?
• Adopted October 2007. • Decrease the incidences of alcohol-related problems in the downtown area. • Maintain or gradually reduce the number and capacity of certain type of alcohol beverage licenses.
___________________________________________________________

• Decrease the strain on public resources. • Provide opportunities for businesses that sell alcohol incidental to their principal business.

Changes to ALDO in 2011
• Allowed flexibility for establishments operating as “entertainment venues” to locate within the ALDO area.
– Up to 70% gross annual revenue from alcohol – Only 7 of these types of licenses available

• Increased the time for property owners to replace tenants from 1 to 2 years. • Allowed for the possibility of capacity increases with physical changes. • Placed a sunset of August 1, 2013 on the ordinance. • Changes to annual review of ALDO • Common Council adopted an accompanying resolution

Resolution #23090
• Directs the Food and Alcohol Policy Coordinator, Economic Development staff, Public Health, and Police Department staff to develop an alcohol license management and business development plan for the Central Commercial District including:
 Basic data on downtown alcohol-related and business development.  A review of how alcohol license holders are reviewed and regulated.  A review of best practices in peer cities for both alcohol license management and downtown business development, including ways in which other cities promote a healthy mix of retail and entertainment and promote locally-owned, and non-formula businesses.  How the City deploys and coordinates its resources (Alcohol Policy Coordinator, police, City Attorney's Office, Alcohol License Review Committee, Economic Development, and Business Resources staff, Madison Police Department and Downtown Safety Initiative).  Recommendations of policies to incentivize recruitment and retention of desired business models, potentially including alcohol license management, planning, zoning and other appropriate tools.

Purpose of Annual Review
• To review the efficacy of the Alcohol License Density Ordinance (ALDO) through:
– Alcohol-related problems (crime data)
– Total number of alcohol beverage licenses by type – Capacity of establishments with liquor licenses – Business mix data

Downtown Safety Initiative (DSI)
• Launched in 2007, $100,000 was appropriated to fund the Central District (MPD) for overtime costs, purchasing cameras, and other safety-related items. • DSI had three stated goals:
1. Work to reduce violent street level crime, especially from approximately 11 p.m. to 3 a.m. for the Central District. 2. Enhance district-wide community policing efforts and engage the community in crime reduction efforts and reduce levels of fear from crime. 3. Improve voluntary compliance with alcohol-related ordinances in licensed and unlicensed establishments.

Downtown Safety Initiative (DSI)
• DSI funding was reduced to $50,000 in 2010. • Funding was restored to $100,000 in July 2012. • In 2013, DSI was reformed into a city-wide safety initiative; $50,000 available for Central, $50,000 available city-wide.

Crime Data Set
• 2001-2012 • 10pm-4am • Measuring certain types of Calls for Service (CFS) by address:
• • • • • • • Liquor law investigation Battery Fight Call Disturbance Call Aggravated Battery Alcohol Conveyance OWI • Intoxicated Person • Protective Custody Conveyance • Local ordinance violation • Domestic disturbance • Sexual Assaults • Noise Complaint

Alcohol Related CFS by Year in ALDO Area
3200

3100

3000

2900

# of CFS

2800

2700

2600

2500

2400 CFS

2001 2945

2002 2972

2003 2925

2004 3084

2005 2930

2006 3105 Year

2007 3141

2008 3037

2009 2756

2010 2953

2011 2788

2012 2706

Heat Maps
• What are heat maps?
– Shows calls for service by address – Shows where the activity is concentrated in the area – Gives a more dynamic perspective than just raw numbers

Alcohol Beverage License Data
• Tracking the total number of licenses from 2003-2012
– Reference: State of WI Department of Revenue Data, active licenses each year – Total number of taverns by year

Total Tavern Licenses in ALDO Area
49

47

45

43

41

39

Total Taverns
37

35

33

31

29 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Total Liquor Licenses In ALDO Area
165

160

155

150

145 Total Licenses 140

135

130

125

120 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

180 160 140 120 100 80 60

139

135

136

138

138

136

141

145

146

148

Taverns All Licenses

40
40 20 0 2003

42

41

43

42

40

41

37

38

37

2004

2005

2006

2007

2008

2009

2010

2011

2012

Alcohol License Density vs. CFS Density
• Shows comparison of concentration in heat maps
– 2003 – 2007 – 2012

Why National Data?
• To paint big picture, put data into context • Difference between arrested persons and calls for service
– Not an apples to apples comparison

• National Markers
– Disorderly Conduct, Drunkenness, Liquor Law violations, Aggravated Assault

UCR Estimated Arrested Persons United States 2005-2011
750,000

700,000

650,000

600,000

Total Arrested Persons

Aggravated Assault 550,000

Liquor Law Violation Drunkeness Disorderly Conduct

500,000

450,000

400,000

350,000

2005

2006

2007

2008

2009

2010

2011

US Estimated Arrests vs. ALDO Calls For Service 2005-2011
2,400,000 3200

3100 2,300,000

3000 2,200,000

2900

Total Arrested 2,100,000 Persons
2800

Total Calls for Service

2,000,000 2700

1,900,000

US Arrested Persons (UCR) using criteria from previous slide CFS ALDO

2600

1,800,000 2005 2006 2007 2008 2009 2010 2011

2500

Business Mix Data
• Food and Drink • Retail • “Other”
– Services (fitness, salons, banks, etc.)

• Complete Business Improvement District (BID) data from 2002, 2009, 2011, 2013.

Business Improvement District (BID) Business Mix March 2002

36.3

34.5 Retail Food/Drink Other

29.2

Business Improvement District (BID) Business Mix March 2009

35.1 28.9 Retail Food/Drink Other

36

Business Improvement District (BID) Business Mix March 2011

38

26.4

Retail Food/Drink Other

35.6

BID Business Mix March 2013

39%

26% Retail Food and Drink Other

35%

Gibbs Study Comparison
1998 Gibbs Market Study (Amended w/ BID Data)

BID Business Mix March 2013

38%
26%

39%

50% 12%
Retail
Food and Drink Service

35%

Retail Food and Drink Other

BID Ownership Mix-March 2013

9.7%
10.3% 3%

Locally owned***

Regional companies, chainlets Nonprofits
77%

National Chains, Companies

***Includes Wisconsin ownership

Demographic Data
ALDO Area Population
29000 27000 25564 25000 23000 21000 19000 1990 2000 2007 2012 22202 22168
ALDO Area Population

24339

http://www.uwex.edu/ces/cced/downtowns/Madison/documents/Madison_ DMA_Consumers_Section1_final9_26a.pdf

Demographic Data
Households in Income Base
12000 11029 10239 10000 8773 $30,000 $27,274 $35,000 $31,607

Average Household Income

$25,000
8000 $20,000 6000 Households in Income Base 4000 $10,000 $15,000

$23,651

Average Household Income

2000

$5,000

0
2000 2007 2012

$0 2000 2007 2012

http://www.uwex.edu/ces/cced/downtowns/Madison/documents/Madison_ DMA_Consumers_Section1_final9_26a.pdf

National Retail Trends
• For the past three decades, the restaurant industry has consistently posted yearly sales gains. Today’s consumers regard food prepared away from home as a necessity. Convenience, a need for socialization and gains in real disposable income have led consumers to spend more of their food dollars in restaurants (2003).
– Let’s Talk Business, Issue 84, Aug 2003

• Despite sluggish recovery by the nation’s economy, the restaurant industry is projected to expand in 2012, according to the National Restaurant Association’s 2012 Restaurant Industry Forecast.
– Reports indicate fast food expanded in 2012, while more formal dining was stable (NPD's Fall 2012 ReCount).

National Retail Trends
Reported Closing Survey Data
Location of Retail Store Regional Mall Neighborhood Center Downtown/Main Street Anchor/Large Retail Smaller Chain Retailer Locally Owned

18% 16% 4%

27% 36% 14%

15% 42% 63%

*Percentage of city officials that reported a retail closing.
• National League of Cities survey of city officials, 2009.

This survey was conducted by the National League of Cities in 2009. The data was collected by polling city officials from various different cities. The survey asked city officials if they had reported closings of retail and if so, what type and location of those closings in the past calendar year.

Recent market activity
• Vacancy rate slightly up
– Excludes projects under development (only those currently marketed) – A couple of retail closings – A couple restaurant closings (Logan’s, Quaker Steak, S2) – Not unusual for Spring data

Key Take-a-Ways and Observations
• Increase in licenses is mostly in new restaurants. • Retail has been replaced by a mix of services and food/drink. • Definitions in ALDO have been constraining, inconsistent in application.

Next Steps
• Staff team will meet through beginning of June. • Recommendations will be provided to all impacted committees in June/July. • Recommendations will be a combination of ordinance, policy, and proposed programs. • Goal is to have entire package approved by Common Council before August 1 sunset.

Questions?

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