Health

Boston leaders discuss idea to pay restaurants for liquor licenses

BOSTON — Boston city leaders are discussing a new idea to bring capital to struggling restaurants by paying for liquor licenses.

Establishments would still be allowed to serve from the bar and would owe the money back to the city. The proposal, sponsored by District 1 City Councilor Lydia Edwards, was addressed at a hearing on Wednesday.

The concept aims to help give mom and pop businesses the confidence to reopen, in an effort to prevent local businesses from closing up shop. There’s also concern that the liquor licenses of businesses that close could potentially get scooped up by larger national chains.

“Do we sit back and watch while the Cheesecake Factory, while Bertucci’s, while the Olive Garden, while the casino is able to buy them up?,” asked Councilor Lydia Edwards.

Edwards pointed to estimates that as many as 40% of restaurants might not survive the economic fallout the COVID-19 pandemic.

“For many the only asset they will have left is a liquor license,” said Edwards. “Maybe create a pilot program that allows us to purchase those licenses with that money going back into the business. They would lease the license from the city of Boston going forward and pay for that lease on a continual basis.”

Edwards and other supporters said they are open to suggestions that could help this proposal move forward.

Licensing Board Chairwoman Kathleen Joyce said the Massachusetts licensing system and liquor laws complicate the proposed concept.

“It would create a significant legal liability for the city,” said Joyce. “If the city is the holder of the license, there might be conflicts with other types of work.”

The proposal is still a preliminary one and would likely require changes at the state legislative level to advance.

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