Mixed drink measure

could be on September ballot
By Frank Ruggiero
ruggiero@wataugademocrat.com

The Boone Town Council was neither stirred nor shaken by discussion of a liquor-by-the-drink referendum, and a vote to initiate it could take place in May.

Before then, residents will have the opportunity to share their thoughts at a special public hearing, scheduled for April 24 at 6:30 p.m., tentatively at the Watauga County Courthouse, indicating the council’s expectations for a large turnout.

At the council’s regular meeting March 20, Stephen “Skip” Sinanian, chairman of the ABC Task Force, appeared to present information on the referendum.

As owner and operator of the Boone Saloon, Sinanian said that throughout the bar’s four years in Boone, he’s been approached by many residents (full-time and part-time) and tourists, who have requested mixed beverages.

Restaurants are only allowed to serve beer and wine in Boone.

“Often, I’ve had to send them away to either Blowing Rock or Banner Elk, even West Jefferson,” Sinanian said.

“For those who do stay, the conversation continually arises as to why Boone does not allow mixed beverages.”
As a result of his and the business community’s concern, Sinanian said the ABC Task Force was formed, representing a broad base of area business, including insurance agents, real estate brokers, bankers, small business owners, restaurateurs and university professors.

The cause is also endorsed by the Downtown Boone Development Association and the local Tourism Development Authority.

In a letter to the council, TDA president Jim Wooten said the availability of mixed drinks in Boone will encourage group and meeting business, increase revenues in dining establishments, allow “free dining” restaurants to be successful, and improve the economic well-being of the town.

“One and one-half ounces of 80-proof spirits, 12 ounces of 5-percent beer or a 5-ounce glass of 12-percent wine contain exactly the same amount of exactly the same ingredient,” Wooten writes in the letter.

“To allow two but not the third is not logical. Local option is the sound policy of North Carolina.

“Blowing Rock and Seven Devils have exercised that option. We believe Boone residents deserve the same opportunity to vote on this issue.”

In describing the ABC Task Force’s mission, DBDA president Rich Jacobs says in a letter, “Downtown Boone has been experiencing a very discouraging trend in the last year.”

Privately owned restaurants have relocated to towns offering the sale of mixed drinks in their restaurants, and Sinanian said those particular owners attribute the revenue loss to Boone’s mixed-drink restrictions.

“Currently, we have a very limited number of downtown restaurants that serve dinner or high-end fare,” Jacobs says in the letter. “The result has created a negative economic and psychological impact for downtown Boone, locals and tourists.”

In addition, the letter notes that the sale of liquor by the drink would help retain or expand existing businesses, encourage downtown redevelopment and promote small business development.

Sinanian told council members that between 2005 and 2006, Boone ABC (Alcohol Beverage Control) saw annual retail sales of $3.7 million, while mixed beverage sales in private clubs showed $28,802. For 2006-07, the figures were $4.02 million and $37,477, respectively. In 2006-07, Blowing Rock ABC saw ABC retails of $886,344 and mixed beverage sales (in restaurants and private clubs) of $845,546.

Were Boone to share a similar sales model with Blowing Rock, Sinanian said one half of Boone ABC sales would be purchased by restaurants.

“As an example, the average purchase price for a standard liter of vodka is $42; the added tax revenue generated would be approximately $238,095.23 annual,” Jacobs says in the letter. “Of the profits created from restaurant purchases, 50 percent is returned to the local ABC board to be distributed into the town general fund.”

Apart from economic benefits, Sinanian said the availability of mixed drinks also helps public safety. He cited statistics from Union County, Tenn., showing there has been less crime since laws were changed to permit mixed drinks, “and this phenomenon is not unusual, as less driving equates to less auto accidents.”

Jacobs’ letter cites a 2003 study conducted, in part, by S.L.S. Gary, called “Consideration of driver home county prohibition and alcohol-related vehicle crashes: Accident Analysis and Prevention,” and the research suggests that towns prohibiting mixed beverages sales show higher numbers of alcohol-related incidents, as residents of dry counties drive farther from their homes to consume alcohol.

Sinanian said Boone should promote itself as a “self-sufficient community with a highly effective downtown area, accessible to walking.” He also noted that the High Country’s economy is based on second-homeowners, tourists and the university.

“Fine dining (in Boone) cannot seem to stay above water, but restaurants are starting to sprout up in West Jefferson, from the simple fact that not everyone enjoys beer and wine with their meal,” Sinanian said.

“We feel that maybe Boone is pigeon-holing itself to cater to the college-age students, while ignoring a more established clientele of retirees and second-homeowners.”

By providing consumers with what they want, Sinanian said more businesses could open and expand their wares, thus expanding the economic base of Boone.

In his letter, Jacobs tells how the DBDA executive board, in 2006, approved the hiring of a professional survey company, Talk2Rep, to determine whether or not community members would like mixed beverages in Boone restaurants.

Residents were asked whether they were more than 25 years old and if they owned a residence or business. If respondents answered yes, they were asked if they felt the law should be changed to allow mixed drinks.

The results showed 1,001 surveys completed, with 54.8 percent of the respondents agreeing that the restriction should be lifted.

Sinanian said the ABC Task Force took the matter to the town council versus the other option of gathering 35 percent of residents’ signatures, a difficult task considering voter registration is purged every seven years, and many of those registered voters no longer live in the area.

Sinanian requested that the council vote on the matter in May to meet statutory requirements, which would place the referendum, if approved by the council and scheduled by the Watauga County Board of Elections, in September, when most Boone residents are in town.

The council agreed to schedule a special public hearing for Thursday, April 24, at 6:30 p.m. in the Watauga County Courthouse to gauge public sentiment.

After the meeting, council member Stephen Phillips said he looks forward to hearing community members’ opinions on the matter.

Phillips said he’d like to speak with the police department and other associated agencies to determine proper precautionary measures, such as bartender training, as well as inquire about the food/alcohol sales ratio.

“I’ve met a lot of people who are interested in having liquor by the drink, and I’ve talked to a few who are sort of indifferent...” he said, “but I haven’t really talked to anyone who’s adamantly opposed to it. I have heard that a lot of smaller restaurants are interested, which has changed from the past. Before, most restaurants were pretty opposed to it.”

For more information on the ABC Task Force, e-mail abctaskforce@gmail.com.