With some of the largest 2011 general election issues already decided in the first dump of data from elections officials, there’s one extremely important question likely on your mind.
The boozy question has implications not just for CHS’s next cantaloupe daiquiri but for the many bars and restaurants of the Hill’s food and drink economy that currently receive shipments through the stores or swing by for piecemeal additions to their inventories.
Initiative 1183, Costco-backed and with the state’s liquor system in its crosshairs, has been declared a winner. By June, the Seattle Times reports, “the state Liquor Control Board will wind down its liquor business, including selling its inventory and Seattle distribution center, and auctioning off state-run liquor stores.”
Yes, Capitol Hill, those auctions will include the stores at 400 Broadway E and at 12th and Pine — the sites of so many happy memories. Both of Capitol Hill’s liquor stores are operated by the state and would be part of the, um, liquidation.
Per the initiative’s line items, locations of former state-run stores would be grandfathered in as legal locations to operate private liquor stores even if they aren’t large enough to meet 1183’s 10,000 square-foot provision.
The 400 Broadway E location is leased in a retail space owned by Pano Properties, LLC that also houses Pho Cyclo. The less than 3,000-square foot space could, indeed, host a boutique liquor shop if an entrepreneur wanted to make a go of it. A more likely future is a corner store, a cafe or an expanded Pho Cyclo.
The 12th Ave location is a different beast. Owned by Richmark Label which operates an adjoining space, the 6,400 square-foot store could be sucked into the industrial space if no entities come forward interested in operating a private liquor store at the location.
The shuttering of the stores or takeovers by an ambitious and possibly foolhardy entrepreneurs willing to go toe to toe on price with the likes of Safeway aren’t the only significant alcohol retail changes for the Hill.
For one, grocery stores in the area will be overhauled for the new inventories and security will likely be expanded and increased. For some like 15th Ave E’s QFC, already limited space could be even further pinched by the irresistible profit margins.
More interesting could be the changes enabled by 1183’s approval that could improve the economic prospects for Capitol Hill’s craft spirit producers like Oola Distillery and Sun Liquor Distillery. While many fear that the Kirkland Signature Brand-ization of booze will damage the budding businesses, the initiative does make it easier for the distilleries to sell their product directly to buyers and will hopefully clarify the playing field for these start-ups where things are, at best, still murky. Just ask a Sun bartender why the new bar and distillery on E Pike has two doors the next time you’re in.
Starting in June, Oola and Sun can cut much of the state out of their sales process — currently, the crafters are required to adhere to the state’s pricing and, for all intents and purposes, purchase their product for re-sale. For Oola, already on the hook to move thousands of bottles of gin and vodka per month to break even, being able to manage their inventory independently could be the difference in achieving a sustainable margin. Meanwhile, at Sun, they’ll have the same opportunity — and, maybe, they can cut a door from the process, too.
At least now I won’t have to deal with that old grumpy guy with the long hair who always tries to tell me my booze choices suck. I hate that guy.
… QFC, set to cashin, three stores ….. Owned by Kroeger, national chain that makes Cosco look like a wannna be corporate dwarf
Trader Joes
WALLGREENS – YOU CAN FUCKING BET ON THAT … another giant national chain.
I buy a pint a year, so why do I care ….. hope the state makes more money, now they can raise the taxes on liquor with impunity. “Sin, sin, sin”
I’d love to see one of the locations turn into a small liquor store. They generally have much better selection and serivce than what’d you’d find in a grocery store.
Regarding what will happen at the 400 Broadway E location, I sure hope that a 7-11 type store doesn’t go in there. For years, there was one of these kitty-corner and it was nothing but trouble for the neighborhood.
I dunno – that guy has good taste in my book. Has the price/performance ratio figured out. You probably would have saved a fee hundred dollars with better quality if you listened to his advice. I haven’t found fault with his choices and I have reasonable experience with booze.
But I guess haters gunna hate.
Are you sure that a 3,000 sq foot artisan liquor store would be able to replace that liquor store on Broadway?
I’m under the impression that only stores w/ over 10,000 sq feet of public footprint will be able to sell liquor.
I’d love it if you would confirm this.
Did you read this part of the post?
“Per the initiative’s line items, locations of former state-run stores would be grandfathered in as legal locations to operate private liquor stores even if they aren’t large enough to meet 1183’s 10,000 square-foot provision.”
Justin – I’m sure your readers would love a map of the other places we’ll be able to buy (all the grocery stores?). Any surprises?
I’ve had only good experiences with him. He’s never commented on what I buy unless I ask his advice, and so far, his advice has been right on, at least to my tastes. He WILL tell you exactly what he thinks of Brand Whatever, if you ask his opinion.
I love that guy’s advice. He’s never steered me wrong and is always willing to answer my questions if he’s not busy at the register.
read the article more carefully.
I’m gonna miss him. The “booze pirate,” as we’ve dubbed him over the years, helped us to discover some really great stuff.
glad to hear that the stste store locations can continue to sell liquor. I hope someone turns the 12th/pine store into a liquor shop.
I love that guy! He understands that expensive doesn’t always mean better.
I am under the impression that the only liquor stores that will remain liquor stores are those in communities that are not served by a big box retailer with a +10,000 sq foot public footprint. In small rural communities there are some liquor stores that are sort of licensees .. meaning they sell liquor but aren’t officially state run liquor stores. I think that since the 2 Cap Hill liquor stores don’t fit into either category, meaning that they are neither in an underserved community w/o a grocery or other big store, or have 10,000 of public floorspace, then neither location is eligible to become a liquor store under the 1183.
My question for jseattle isn’t because I didn’t read his post, it’s that I question this statement regarding the Broadway liquor store “The less than 3,000-square foot space could, indeed, host a boutique liquor shop if an entrepreneur wanted to make a go of it. “ I’m pretty sure that 1183 as it is written makes this transformation impossible and I’m asking him to clarify.
The answer to your question is actually in the article above. Just read it.
Paragraph 5:
Per the initiative’s line items, locations of former state-run stores would be grandfathered in as legal locations to operate private liquor stores even if they aren’t large enough to meet 1183’s 10,000 square-foot provision.
dddd … i believe this statement in the above post is incomplete “Per the initiative’s line items, locations of former state-run stores would be grandfathered in as legal locations to operate private liquor stores even if they aren’t large enough to meet 1183’s 10,000 square-foot provision.”. I am under the impression that only IF the state store is in a community not served by a retailer who meets the +10,000 sq ft requirement will a state store location under 10,000 sq feet be allowed to become a private liquor store. If this is correct, and that is my question for the poster, jseattle, then neither the B’way store or the 12th Ave store would be able to become private liquor stores …
I’m not stupid, but information in this post runs counter to everything I’ve read everywhere else about 1183
Read the text of the new law ….. Justin is not a savant, as good as he is good.
And the old guy talked about from 12th and Pine, is a wonder kind when it comes to booze … seek his advice before he gets fired, or outsourced or what ever is going to happen.
I’m not Rain Main :) But here’s what I believe describes what could happen with the two Capitol Hill facilities:
via http://www.sos.wa.gov/elections/initiatives/text/i1183.pdf
The law has two separate exceptions. There’s an exception for when there is NO 10,000+ square foot store, and there is ALSO a DIFFERENT exception for existing store locations.
I’d recommend that you read the text.
Go to http://www.sos.wa.gov/elections/
Click on “2011 General Election Voters’ Guide”
Click on Initiative Measure 1183
Click on Full Text (on the right).
See page 4
First is says that the board may not deny a license to an otherwise qualified (current state-owned store) on the grounds of location, nature, or size of the premises. It then says that the board shall not deny a license to (someone who is NOT currently a state-owned store) on the grounds of size if (various requirements, including no other liquor store in the trade area)
So current liquor stores are not subject to the “no other store in the trade area” part of (3)(c).
Thanks, jseattle, for the link — that pdf is much better than the one I found, and allows copying text!
Here’s the relevant section, on page 7 of that pdf.
(c) The board may not deny a spirits retail license to an otherwise
qualified contract liquor store at its contract location or to the
holder of former state liquor store operating rights sold at auction
under section 102 of this act on the grounds of location, nature, or
size of the premises to be licensed. The board shall not deny a spirits retail license to applicants that are not contract liquor stores or operating rights holders on the grounds of the size of the premises to be licensed, if such applicant is otherwise qualified and the board determines that:
(i) There is no retail spirits license holder in the trade area
that the applicant proposes to serve;
(ii) The applicant meets, or upon licensure will meet, the
operational requirements established by the board by rule; and
(iii) The licensee has not committed more than one public safety
violation within the three years preceding application.
Note that sections (i), (ii), and (iii) are part of the sentence that applies to “applicants that are not contract liquor stores or operating rights holders”
There is one more thing to consider: Capitol Hill, and a large portion of central Seattle itself are in a WSLCB designated “Alcohol Impact Area” (AIA) which is supposed to restrict licenses and certain products sold. Going forward, I am not certain yet how the AIA can or will affect the licensing of any space; I am still trying to understand that portion of the initiative.
At the very least there is tension because if the rules of the AIA ban products at regular stores (beer, wine) that have over a certain percent of alcohol, then introducing hard liquor at a number of locations would propose a problem, and a “big step back” from the current goals of an AIA (that is, if one agrees with the goals of an AIA).
In most non-liquor control states there is often a grocery store and and a liquor store next store owned by the grocery store. If I were QFC (Kroger) I would buy out the Broadway location and run it separately. The 12th Ave location has more potential as a privately run liquor store since there are no nearby grocery stores.
I would like to point out the liquor is not a real high gross item. If competition really heats up I can see a 15%-20% GP on liquor. Where store’s make their money is on mixers, popcorn, chips, etc…..
12th and Pine
Remember, parking, parking, parking and then, bus, bus, bus
Great future site for more of the same
Good point! Being a beer/wine drinker myself, I think the fewer stores selling liquor will create fewer problems. The CDC did a study to confirm that.
I’ve always found the employees at the Broadway, 12th Ave, and Union St. stores to be very nice and helpful. It sucks that they’ll lose their jobs, and I hope they can find new jobs. But I’m still convinced privatizing was the right way to go.
I just found his information to usually be false. As in, one time he told me that 360 vodka was just Smirnoff, but after some investigation, it was actually 360 vodka. Then the next time I came in, he told me it was Stoli.
King Co Ass says that Walgreens at 500 15TH AVE E 98112 is 10844 sq ft:
http://info.kingcounty.gov/Assessor/eRealProperty/Dashboard.
And on Broadway, the property detail section for 1531 BROADWAY says the 1st floor retail is 20,949 sq ft.
http://info.kingcounty.gov/Assessor/eRealProperty/Detail.asp
The reality is, there are very few retail locations on Capitol Hill that would even meet the minimum square footage size requirement to sell liquor. I think many citizens were interested in being able to find more interesting places to shop for liquor, but Costco has single handedly eliminated that possibility. We might really be up the creek on access to a liquor, particularly if you are looking for something interesting. A badly written initiative. Thats what you get for not reading the fine print. Capitol Hill Blog….any more news on the pending liquor crisis on the hill?