New Sioux Falls liquor license lottery takes first round
SIOUX FALLS, SD (Dakota News Now) – The old liquor licensing system in Sioux Falls was to require the applicant to pay just over a thousand dollars and be placed on a list of waiting.
The city council changed the process to a liquor license lottery, and today was the first day of the new way, under the watch of city attorney Stacy Kooistra.
“It’s valuable on many fronts. Of course, for candidates who hope to obtain a license. It’s important because it impacts their business, and it’s important for the community because it’s a process that needs to be transparent,” Kooistra said.
Before this day, open the discussions with the candidates.
“We used a very process-oriented method for all of this so that people have an idea of what’s coming and can plan accordingly,” Kooistra said.
One of today’s winners, Amulya Rai, couldn’t wait to tell the rest of the family that she was back to cooking Indian food in Kathmandu.
“Yeah, that’s a big win,” Rai said. “I was really excited, and I also texted my brother, and he should be happy.”
Others didn’t call their number today. Don Rose of Sports Bar and Grill in Shenanigan was one of them.
“I didn’t understand. I wasn’t chosen. It’s okay. There were other candidates before me, and they were chosen. They’re happy,” Rose said.
Seven licenses on sale were drawn today, as well as 17 off sale.
“There are a lot of candidates; you have to do something. So it’s best to do it that way,” Rose said.
The staff pulled each number and documented it in case one of the winners couldn’t complete the final process.
One thing that seems to be the same is that some applicants are given a license and don’t intend to use it, but sell it for a profit.
We asked if the new process allows for the resale of a liquor license and received confirmation that licenses can be resold once the entire application process and fee is paid.
Sioux Falls liquor license resale market prices are not public information, so the amount of profit is not fully known.
An off-sale license costs $533 with an annual renewal fee of $533. A license on sale costs just over $240,000 with a renewal fee of $1,500.
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