Highland Park aims to simplify liquor licensing, proposing consolidation, changed fees and more

The City of Highland Park is considering changes to its municipal code that could reshape how local businesses obtain and operate with liquor licenses, including changes adjustments to fees and the addition of a happy hour.

The proposed updates were discussed during the City Council’s Committee of the Whole meeting on Aug. 17, as city officials reviewed the existing regulations and looked for ways to modernize them.

For the past two years, the City has been working on its regulations regarding alcoholic beverages. The work has been informed by “extensive communication with business owners,” said City Manager Ghida Neukirch, who added that the City has done this to “look for opportunities to better serve their residents.”

City staff sent their recommendations to the Business and Economic Development Advisory Group on Tuesday, August 25, and will present to the council an ordinance for on Sept. 14.

Elimination

The City is recommending the elimination of the Class A and Q licenses, according to the City’s Management Analyst Megan Cherry. Class A allows for the retail sale of liquor by art studios for consumption on premises, while Class Q is the city’s original caterers license.

Neither of the licences have been used in more than a decade, she said.

“Other generic licenses would take their place,” Assistant City Manager Erin Jason said. “It makes more sense for businesses to apply for those. It will not restrict other potential businesses.”

If an art studio were to establish itself in the city and want to serve alcohol, the studio would be pushed to apply for a BYOB license instead. While the City’s existing Class V license, implemented last year, would cover any operations related to catering.

Consolidation

The City is also looking to consolidate a few liquor licenses, such as the C-1 and C-2 club licenses and the G and SP sports, facilities and sporting events licenses.

Additionally, the City recommends consolidating restaurant licenses R-1, allowing for the sale of all alcoholic liquor for on-premise consumption, and R-2, allowing for the sale of beer and wine only for on-premise consumption.

Similarly, the City is looking to combine package liquor store licenses S-1 and S-2 into Class S, which would allow for the sale of all alcoholic items in their original packaging for off-premise consumption.

The City also wants to update the RS-1 license, currently only for beer and wine sales, to include all liquor.

Other recommended updates include S-3 for tasting shops to be referred to as TS; Class V for caterers to allow for food and alcohol to be sold off-site, as well as on-site; W for giveaways to patrons during hosted events to include “two servings” language; BYOB for drinks brought in by patrons to add “consumed on license premise and in original package”; and for S-1, S-2 and S-3 license holders to be referred to as Class S and Class TS license holders instead.

Fee changes

The City plans to decrease 10 license fees, some by hundreds of dollars.

Decreases range from paying $80 less for Class U, V and Y licenses (all currently $2,580) to paying $580 less for a R-1 ($3,820) or S-1 license ($2,580).

Fee increases include paying $1,250 more for a C-2 license (not-for-profit clubs, up from $250) and $450 more for a R-2 (restaurants and banquet beer and wine, up from $1,550) or S-2 license (stores beer and wine, up from $1,550).

The number of years it takes for license holders to pay off current license fees range from 3 to 14 years.

Updated fees support annual consumer price index increases beginning in 2028, Assistant City Manager Ashley Palbitska said.

Other proposed changes

The City also recommends businesses cease kitchen operations by 9 p.m. (no current limit); though, liquor service would still be allowed in alignment with current regulations, which are Monday through Friday 6 a.m. to 1 a.m. then Saturday and Sunday 6 a.m. to 2 a.m.

In Highland Park, happy hours — reduced alcohol prices, typically at restaurants, for a window of time — are not defined. The City wants to change that and codify the state’s regulations of happy hour, which is to allow promotions for up to four hours a day and a cumulative of 15 hours per week. Discounted drinks, though, could not be permitted after 10 p.m.

Council feedback

“I believe [these adjustments] are long overdue,” Councilmember Annette Lidawer said. “I think this is a very community-friendly and business-friendly move on our part.”

Lidawer was “blown away” by the cost of the current fees, and finds the reductions “significant,” nothing that the profit margins of restaurants and stores are typically low.

She would like to see liquor-license data from peer communities, like Wilmette and Lake Forest, to see how Highland Park compares.

If other municipalities are charging significantly less, Lidawer wonders how friendly that makes Highland Park. She wants to make sure Highland Park is “as friendly as it can be.”

Councilmember Anthony Blumberg found the adjusted licenses a bit more “expansive” for the license holder, as well as “easier” for the City to administrate.

Councilmember Yumi Ross was in favor of reducing fees as much as possible. She said she is for “simplification,” to make it as easy as possible for business owners. Councilmember Andres Tapia and Barisa Bruckman agreed with her.

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