Page 12 - Issue 46 Oct2020

10 OCTOBER 2020
Apublic policy debate that looms large for the commercial real estate industry — one that was complex and highly charged before the pandemic — may now become even more contentious.
With many restaurants struggling
to survive, advocates of updating New Jersey’s decades-old liquor license statutes are now hoping
to rekindle the discussion among state lawmakers. Supporters say
the need to make licenses more affordable and available is even greater amid the economic fallout from COVID-19, citing the important role of dining establishments in successful downtowns and mixed-use developments.
It remains to be seen if that sways existing license holders and others who have been staunchly opposed to
reform in recent years, arguing that it would significantly devalue their investment.
“It’s impossible to overstate the importance of restaurants to mixed-
than Morristown or Red Bank or Montclair,” said Goldberg who co- chairs the executive committee at the Rutgers Center for Real Estate. “And if you’re going to try to duplicate that kind of thing, especially in a post- COVID economic recovery in more suburban communities, restaurants are going to be an essential part of that.”
State Assemblyman John Burzichelli, a leading advocate of liquor license reform, said he hopes lawmakers
will revisit the issue now that they’ve completed the pandemic-delayed budget process. The Gloucester County Democrat has sponsored bills in recent years that would create specialized, lower-cost liquor permits while compensating businesses that have paid market price for traditional consumption licenses, which can command more than $1 million in
towns such as Montclair.
Burzichelli said it was too early to tell if the health crisis and the struggles of restaurateurs have changed the debate in Trenton — for better or worse. Leaders
of both the
Senate and
Assembly have
balked at the
proposal amid
the concerns of
existing license
holders, despite
widespread,
vocal support from NAIOP New Jersey and the commercial real estate sector at large.
“Every liquor license in New Jersey at the moment is less valuable than
it was pre-pandemic, so I don’t
know what it means in the larger discussion,” Burzichelli said in an interview in early October. “This is just an interesting time because the hospitality business is in great danger at the moment.”
The crisis is only set to worsen as the temperature drops and as outdoor dining becomes less practical for many operators. With indoor dining limited to 25 percent capacity, stakeholders agree more restaurants are likely to close in the months ahead.
Those that can serve beer, wine and cocktails stand a better chance of making up the lost revenue, meaning they’ll be even more protective of that advantage.
“Everyone needs to sit back and decide what makes sense in today’s world, which is very different,” said Bill Harrison, a Newark-based attorney with Genova Burns and chair of the firm’s land use group. “Do people really think a year from now that everything is going to go back to the way it was, or is there going to be significant fallout with a lot of licensed and unlicensed restaurants going out of business? And are people going to be
HARDER TO SWALLOW
Liquor license debate may become
even more contentious post-pandemic, insiders say
Carl Goldberg
use projects,” said Carl Goldberg, the managing member of Canoe Brook Associates. “They bring foot traffic, they create
John Burzichelli
neighborhood, they generally formulate this whole concept of live- work-play.”
The veteran developer pointed to some of New Jersey’s more acclaimed downtowns.
“Nothing is a better example of that
By Joshua Burd
With many restaurants struggling to survive, advocates of updating New Jersey’s decades-old liquor license statutes are now hoping to rekindle the discussion among state lawmakers, but it remains to be seen if that sways existing license holders and others who have opposed reform.