Cities loosen up on liquor to stimulate business

Since Snellville voters opened the tap on Sunday alcohol sales at restaurants, business at her Main Street pizzeria is up. Way up. And she’s not alone.

In the past year, a growing number of metro Atlanta’s suburban communities, including Snellville, Suwanee, Lilburn and Grayson, have relaxed their liquor laws.

Some are raising a glass to Sunday sales; others are sanctioning open containers during special events; still others are popping the top on beer festivals — all to draw residents to their downtown districts and, cities hope, boost the bottom line for struggling businesses.

Alcohol is “not necessarily a money raiser, but it is a precursor. It is a catalyst,” said Georgia State University professor Greg Streib, an authority in local government. Streib believes the broader trend is that more of metro Atlanta’s suburban communities have become hubs of activity, offering residents places to eat, drink and mingle without having to trek to Atlanta.

Critics argue that relaxed alcohol rules cause more harm than good. They say such rules often fuel alcohol-related injuries and domestic violence while giving governments false hope of an economic boost.

What cities are doing “is taking advantage of something a lot of people will go for to make up for their inability to truly stimulate economic growth,” said former Snellville City Councilman Robert Jenkins, who was among a group of eight residents who sued the city over Sunday alcohol sales. “They’re using alcohol as the bait.”

A Toast in Suwanee

The formula seems to be stirring success. Just ask Suwanee.

Last year, city leaders began testing a concept called Toast @ Town Center. On the last Thursday of each month from April to October, Town Center Avenue is closed, and patrons can buy beer and wine at restaurants and walk from shop to shop within the park.

“The event is designed to create a reason for people to come to Town Center on weeknights,” Suwanee Mayor Dave Williams said. “We want to boost that midweek revenue for our businesses. The initial results have been very positive.”

Indeed, local restaurant Olde Towne Tavern and Grille reports a 19.7 percent increase in food and alcohol sales on those nights compared with other Thursdays. Italian eatery Ippolito’s has seen a 10 percent jump in food sales and a 10 percent to 15 percent spike in alcohol sales.

“We definitely benefit from it,” Ippolito’s general manager Allison Hozman said. “It gives a little more freedom to your guests. It’s nice to walk out [of a restaurant] with a cocktail. I don’t think it would be a bad thing to do it every night.”

Suwanee resident Brian McDonald, 37, has raised a glass at three Toasts. He goes to enjoy the music, mingle with friends and network.

“My favorite part about it is just that we have the freedom to go from one place to another,” McDonald said. “I like to grab a beer and food and sit out in the grass.”

This week, Grayson is hosting the city’s first craft beer festival, patterned after events in Decatur and Dunwoody. The Sept. 25 event is a fundraiser for the newly formed Downtown Development Authority, which hopes to use the proceeds to revitalize buildings and create a thriving town center.

Several months ago, the Gwinnett County city of 2,367 changed its liquor laws to allow for such events on city property.

DDA member Michelle Couch, the event’s director, said the idea is to attract young professionals to the city’s core, fostering a sense of community while adding exposure to Grayson’s shops and restaurants.

“If you look at particular parts of Gwinnett, like Park Place, the demographic studies show it’s a senior area. Seniors don’t drive an economy. They’re on fixed incomes,” Couch said. “Events that appeal to a younger demographic ... that helps drive the economy.”

‘Society ... pays bill’

Jerry Luquire, president of the Georgia Christian Coalition, doesn’t buy the economic arguments.

“I think this [monetary] increase has about the same credibility as the overstated devilment those opposed to drinking try to guilt to those who enjoy alcohol,” he said.

Luquire said those who support alcohol will find reasons to back their cause, just as those who oppose it point to car accidents, domestic disturbances and job losses.

The Rev. Sid Hopkins, executive director of the Gwinnett Metro Baptist Association, opposes the sale of alcohol, regardless of economic benefit.

“It’s far more hurtful to society than the amount of money any business or any series of business would generate from the sale,” said Hopkins, who speaks on behalf of the association of 132 churches. “Granted, some individuals profit, but society as a whole pays the bill.”

‘Bible Belt’ behind?

Relaxed alcohol rules are nothing new for cities such as Decatur and Smyrna. For years, these cities have allowed alcohol to flow during special events to draw people downtown and build neighborly interaction.

“It’s more in response to what residents in the community want,” said Jennifer Bennett, Smyrna’s community relations director.

For the past six years in Marietta, restaurants have been permitted to sell beer and wine outside their storefronts at city-sanctioned events on and around the town square. The reason? Convenience for the consumer and restaurant, said Rich Buss, Marietta’s parks, recreation and facilities director.

In Duluth, city leaders could go one step further. This month, they’ve instructed their city attorney to draft an ordinance that would enable special event-goers to buy beer or wine from downtown restaurants, then stroll through the streets of the 12-acre historical district.

“Downtowns need these special little incentives that make them different,” said Chris McGahee, Duluth’s economic development manager. “The long-term vision is at least on weekends, when you drive by downtown, the festive atmosphere of seeing people out and about ... lends itself to you wanting to join in.”

In Lilburn, city leaders have relaxed their 1970s-era liquor laws a half-dozen times over the past year. City leaders hope the amended laws — which now allow for bowling alleys, wine shops and even karaoke pubs — will lure businesses and younger people.

“We’re becoming more cosmopolitan,” Mayor Diana Preston said. “We’re kind of leaving the label Bible Belt behind us.”

In Snellville, the city waged a costly political and legal battle before conducting a referendum in July on Sunday alcohol sales. It passed by a 2-to-1 ratio.

“The major benefit is that the restaurants in the city are on a level playing field with those outside the city,” Mayor Jerry Oberholtzer said.

Of the state’s 585 cities and 159 counties, about 100 jurisdictions allow restaurants to pour on Sunday, said Fred Kitchens, executive director of Wine And Spirits Wholesalers of Georgia.

Mellow Mushroom’s Cabak-Rosselle said sales since July 25 have jumped 15 percent to 20 percent on Sundays. With the added revenue, she has purchased track lighting and flat-screen TVs, increased the number of shifts for servers and even added creole to the bevy of menu options.

“We have never done these numbers before on a Sunday,” she said. “We used to close earlier. Now we close later. It’s been a step in the right direction.”