Dayton begins work on liquor store rules

Dayton Mayor Gary Louallen
Dayton Mayor Gary Louallen
photo Dayton Mayor Gary Louallen

Dayton, Tenn., officials are moving closer to accepting applications from folks who want to open packagge liquor stores in town.

More than likely, the number of stores will be limited to three when the process and application documents are finalized, but there's still some work to do before anyone can apply, Dayton Mayor Gary Louallen said.

"We've met in a workshop but we didn't pass anything yet," Louallen said Thursday of the week's city meetings.

The mayor said city leaders have held one of two public hearings on the ordinance to allow package stores and establish rules to govern them. The last reading of the ordinance will be June 5, he said.

The mayor said the Tennessee Alcoholic Beverage Commission has not yet met with officials, and City Attorney Susan Arnold is drafting the application people will use to enter what likely will be a lottery draw.

Louallen said city officials decided an independent entity should be in charge of the selection process to avoid any potential appearance of favoritism. That entity has not been chosen, he said.

City leaders waited until after the April 19 election, in which voters approved a referendum on package stores, to begin working on the process because they felt there was a strong possibility the referendum could be rejected, Louallen said. But the vote margin on election day was 2-1, with 66 percent of voters favoring the package sale of alcohol in the city, according to election records.

Dayton voters passed liquor-by-the-drink in 2012 and a wine-in- grocery-stores referendum in November.

Business people have shown considerable interest ever since the package store referendum was placed on the ballot, officials said.

"We're getting a lot of people calling wanting to know 'if' and 'when,'" Louallen said. "We're pushing because everybody's hounding us. People are calling, wanting applications."

State rules already exist for retail package stores, including background checks, state licensing for applicants, approvals for building design and the state's closure schedule for liquor stores on certain holidays, Sundays and election days.

Employees of liquor stores also must obtain permits, according to the ABC's website. Several other regulations and restrictions apply.

Contact staff writer Ben Benton at bbenton@timesfreepress.com or 423-757-6569.

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