From:                                         Mary Carbine [MCarbine@visitdowntownmadison.com]

Sent:                                           Tuesday, February 15, 2011 1:16 PM

To:                                               Allen, Roger; Austin Buerosse; Barb Mercer; Bidar-Sielaff, Shiva; Christianson, Eric; David Hart; Dawn Crim; Schumacher, Michael; Verveer, Mike; pambean; Tom Farley; Tom Landgraf; Tretow-Schmitz, Jean; Witzel-Behl, Maribeth; Schauf, Mary

Cc:                                               Woulf, Mark

Subject:                                     BID - ALDO - ALRC meeting Feb. 16

Attachments:                          BID_ALDO_Position_Brief_2011.pdf; Leasing Timelines.pdf

 

Dear ALRC members,

 

The BID Board and stakeholders look forward to continued discussion of the final report from the ALRC Downtown Subcommittee at the Feb. 16 meeting (agenda item 22).

 

The BID shares the goals of a safe and vibrant downtown, reduced alcohol-related disorder, and a positive business mix in the downtown.  The BID continues to maintain that the ALDO does little to reduce alcohol related disorder, and that other measures (such as proactive regulation of licensed establishments) are more effective.  The BID maintains that the ALDO should be allowed to sunset, and be substantially amended if extended.

 

Specific BID feedback on the “Summary of suggested changes” (i.e., amendments to ALDO, http://legistar.cityofmadison.com/detailreport/matter.aspx?key=21985):

 

-365 day limit – BID recommended eliminating this, or extending to at least 1095 days (3 years) rather than the 730 days discussed at the last ALRC meeting.  Attached is a sample commercial leasing timeline prepared and endorsed by commercial real estate brokers and presented to the ALRC Subcommittee in December, which shows that leasing a downtown commercial property can take 3+ years.

 

-The BID supports the concepts of an “Entertainment Venue” category that permits license applications for businesses that are neither a restaurant nor bar, and which offer entertainment.

 

-For proposed “Entertainment Venue,” BID recommends an allowable alcohol revenue percentage of at least 75% (lower than that does not match realistic business models).  As pointed out at the Jan. 19 ALRC meeting, any 65% figure discussed is a compromise percentage, not the ceiling for percentages discussed at the ALRC Subcommittee meetings (which I attended). Some subcommittee members indicated they would consider higher than 65%.

 

-Entertainment Venue Capacity – BID is concerned about limitation of licensed capacity to dedicated seating capacity.  What about business models that involve dancing or audience participation?  This may limit viable business plans.

 

-Entertainment Venue - Business Plan – BID opposed the requirement of detailed business plan “with level of detail normally required by lending institution.” This level of detail would require public disclosure of confidential, competitive information. BID instead recommends a set of standard questions on the application, or asking for a standard-format business outline (3 pages).

 

-Entertainment Venue- Annual Audit. BID opposes as an undue financial burden on business.  Audits costs at minimum $1,000-$1,500, with likely cost for analyzing receipts more like $3,500 -$5,000 – a real burden, especially for small or locally owned businesses.  Also, revenues tell only one part of the business story.  What about expenses? BID instead recommends that Entertainment venue businesses submit standard set of information (such as percentage of revenues and expenses devoted to entertainment) at renewal time.

 

--Exceptional circumstances: BID supports the original proposed change of regular (non entertainment) Exceptional Circumstances alcohol revenue percentage from 25% to 50%.  This change was fully discussed and approved by consensus at the January 11 ALRC Subcommittee meeting (which I attended).

 

-Annual Review: The BID supports the proposed changes to the annual review.

 

Thank you & see you Wed. evening.

 

My best,