Moorestown and Liquor Licenses: FAQ

On Tuesday, Moorestown voters will decide whether to end the town's century-long ban on liquor licenses, or keep things as they are. 

Understandably, the issue has stoked much debate and inflamed passionate opinions on both sides. More importantly, it's raised a number of questions and Moorestown Patch has done its best to answer them. Below you'll find a list of some of the more commonly asked questions regarding the referendums (and their answers).

While commenting on election-related stories has been temporarily disabled, if you have a question please email local editor Rob Scott at rob.scott@patch.com.

Q. What are the ballot questions proposed?

A. There are two. The first is:

“Shall the sale of all alcoholic beverages at retail, except for consumption on railroad trains, airplanes and boats, and the issuance of any retail licenses, except as aforesaid, pursuant to chapter one of the Title Intoxicating Liquors of the Revised Statutes (Sec. 33:1-1 et seq.) be permitted in this municipality.”

The second question is:

Any resolution of the municipal governing body authorizing the issuance of a license to sell alcohol shall contain the condition that:
a. The license is not available for the sale of package goods anywhere in Moorestown.
b. The license shall be available only to bidders for the operation of a full-service restaurant located on the same tax lot as an indoor shopping mall in the SRC zoning district; and…
c. The license, upon issuance, is valid for use only in such a full-service restaurant, and shall not be transferred to any other use, either within the SRC zoning district or in any other zoning district.

Q. Didn’t Moorestown already vote on liquor licenses?
A. Yes, in 2007, when voters turned down the proposal. There is a five-year moratorium on the same ballot question, but the new referendum (Question 1) proposed by Pennsylvania Real Estate Investment Trust (PREIT), which owns the Moorestown Mall, is under a different state statute than the 2007 one, and is before the moratorium expires.

Q. Would these ballot questions allow liquor stores in Moorestown? Would it allow restaurants serving alcohol in downtown?
A. Question 1, by itself, does not restrict the use of liquor licenses. Question 2 attempts to restrict the use of a license to full-service restaurants at the Moorestown Mall, or any other such restaurant “on the same tax lot as an indoor shopping mall in the SRC zoning district.”

Q. Is the second question binding, or could Town Council decide to open up liquor licenses to a greater area?
A. It is binding, according to Matthew Weng, staff attorney for the New Jersey League of Municipalities: “These initiatives have the same force of law as ordinances enacted by the council.” Town Council could not override these restrictions by ordinance for three years, according to Weng. Voters could, with another ballot initiative. 

Q. Is the limitation proposed in Question 2 legal?
A. While questions have been raised concerning the enforceability of Question 2 (primarily from an anonymous legal opinion posted on the referendum opponents’ website), there is precedence for restricting the use of liquor licenses to a particular zone in a town. Harrison Township in Gloucester County and Willingboro in Burlington County are two examples. In the case of Willingboro, alcohol sales are permissible only in the B-1 zoning district, said municipal attorney William Kearns, who serves as general counsel for the New Jersey League of Municipalities and has a practice in Willingboro. “Absolutely you can restrict it to a particular zoning district,” Kearns said. Willingboro also restricts the use of a liquor license to on-site consumption only. There are no packaged goods stores. The legal opinion provided by the opposition also questions the second referendum’s ability to restrict the use of licenses just to restaurants at the mall, since Question 1 is more broad.

Q. If the referendums pass, who would be in charge of liquor license decisions?
A. Town Council or a municipal Board of Alcoholic Beverage Control (ABC board). Moorestown is not required to establish an ABC board, but is allowed to under state law. An ABC board consists of three members, who cannot be town, county or state officials, officers or employees. Local ABC boards have the same power as town government to issue liquor licenses and enforce related laws, but Town Council would retain all legislative power. Absent an ABC board, Town Council would make all decisions about liquor licenses.

Q. How many liquor licenses could Moorestown issue?
A. Up to six. State law allows one license per 3,000 people, and the 2010 Census data put Moorestown’s population at 20,726.

Q. Can restaurants share a single license?
A. No. According to Zachariah Hosseini, a spokesman with the state Division of Alcoholic Beverage Control (ABC), the owner of the license . PREIT is just the landlord. Hosseini explained multiple restaurants owned by the same entity within the same building still can't operate off one license unless the establishments are contiguous. Documents provided by ABC show Bahama Breeze, Capital Grille, Maggiano's Little Italy and Seasons 52 all possess separate liquor licenses at the Cherry Hill Mall (which PREIT also owns).

Q. How much does a liquor license cost?
A. That’s largely dependent on market forces. Towns can set a minimum price, and establishments bid on the license. Competition can drive up the price—a 2006 license at the Cherry Hill Mall, also owned by PREIT, went for $1.6 million. Last month, a license in Cherry Hill sold for $500,000, according to the Courier-Post. It’s hard to predict the cost of a license in Moorestown, as there is no history to rely on and, as the ballot question proposes, restricting the license to just a small part of town could cut down on competition.

Q. What about the $4 million PREIT’s said it’ll pay for the licenses? What about the $500,000-$650,000 in additional tax revenue that the improvements to the mall will supposedly generate?
A. PREIT $1 million apiece for each of the four licenses it intends to buy. Though the pledge is not legally enforceable, PREIT president Joe Coradino said he has staked his company’s and his own personal reputation on that pledge. “My credibility is much more valuable than trying a bait and switch,” he said. The additional tax revenue figure comes from a financial analysis of the Moorestown Mall performed by appraisal firm Renwick & Associates. According to Renwick’s executive summary, those projected revenues are derived from an increased assessment due to the addition of four restaurants, the expansion of the movie theater and refurbishments to the mall, as well as improvements to surrounding commercial properties. PREIT has not provided Renwick’s full report.

Q. Can an establishment that sells liquor open near a church or school?
A. Not within 200 feet, unless the establishment gets annual written permission from the church or school.

Q. Will the addition of the restaurants have any impact on public safety and related law enforcement costs?
A. Coradino has said security issues at Cherry Hill Mall have decreased 50 percent over the last three years, citing numbers from Allied Barton Security, which provides security protection there. He also said PREIT pays Cherry Hill $60,000 extra a year for additional police coverage at the mall and would do the same in Moorestown if necessary. Moorestown Police Sgt. Lee Lieber said the department is not concerned about the potential for any crime or public safety hazards from the addition of alcohol-serving restaurants.

Q. What happens if Question 1 passes and Question 2 fails?
A. Then, ostensibly, liquor licenses could be used anywhere in town. This scenario is possible, given the number of people who will vote “No” on both, and “Yes” on 1 and “No” on 2. Council could impose a restriction (such as that described in Question 2) on its own. 

Q. Once a town allows liquor sales, can it return to a dry status?
A. Yes, with a ballot referendum, according to the ABC.