CITY COUNCIL AGENDA ITEM
SUBJECT:
Pharmacy Liquor License
TYPE OF VOTE:
Simple Majority
ACTION REQUESTED:
1. Pass an ordinance amending Title 3, Chapter 3 of the Naperville Municipal Code to
establish a pharmacy liquor license classification.
2. Pass an ordinance amending Section 3-3-17 of the Naperville Municipal Code to prohibit
the package sale of alcohol within the Downtown, exempting liquor license holders
currently licensed to sell package alcohol.
BOARD/COMMISSION REVIEW:
The Naperville Liquor Commission voted unanimously to recommend that the City Council
establish a pharmacy liquor license classification and prohibit the package sale of alcohol within
the Downtown, exempting liquor license holders currently licensed to sell package alcohol.
COUNCIL ACTION PREVIOUSLY TAKEN:
Date
12/2/14
Item No.
N.1.
Action
Conducted the first reading of ordinances amending Title 3 of the
Naperville Municipal Code to establish a pharmacy liquor license
classification and to prohibit the package sale of alcohol within the
Downtown, exempting liquor license holders currently licensed to
sell package alcohol.
DEPARTMENT:
Mayor's Office
SUBMITTED BY:
A. George Pradel, Mayor / Liquor Commissioner
FISCAL IMPACT:
An annual increase of $30,000 and a corresponding increase in sales tax revenue.
Pharmacy Liquor License
December 16, 2014
Page 2 of 4
BACKGROUND:
Walgreens is requesting that it be permitted to obtain liquor licenses for all ten of its Naperville
locations. Walgreens desires to engage in the retail sale of package beer, wine, and distilled
spirits for consumption off-premises.
Walgreens stated that a typical store will have a segregated space of approximately 140 square
feet of retail space devoted to alcohol sales. Based on revenues at its other locations, Walgreens
expects that if permitted, its alcohol sales will account for approximately 3% of its total
revenues.
Naperville permits the retail sale of package beer, wine, and distilled spirits per the City’s Class
D – Package Store liquor license. The Class D liquor license provides that the license may only
be issued to a store that is located in a shopping center of at least 60,000 square feet (pre-existing
stores located in shopping centers under 60,000 square feet are grandfathered). Only two of
Walgreens’ ten stores may meet that criteria.
Walgreens Store Locations in Naperville
Address
Shopping Center Est Sq. Ft.
688 Amersale
62,043
3035 Book Rd
45,028
63 W 87th St
49,738
2719 Hassert Blvd
400 S Main St, #1
713 E Ogden Ave
1779 Sequoia Rd
612 Raymond Dr
1303 Wehrli Rd
2111 Winding River Rd
6 S 235 Steeple Run Dr
31,600
26,650
Stand Alone
Stand Alone
60,349
Hours of Operation
8:00 A.M. – 10:00 P.M.*
8:00 A.M. – 10:00 P.M.*
Open
24
Hours
with
Pharmacist Always On Duty
8:00 A.M. – 10:00 P.M.*
8:00 A.M. – 10:00 P.M.*
8:00 A.M. – 10:00 P.M.*
8:00 A.M. – 10:00 P.M.*
Open
24
Hours
with
Pharmacist Always On Duty
8:00 A.M. – 10:00 P.M.*
8:00 A.M. – 12:00 A.M.*
8:00 A.M. – 12:00 A.M.*
Stand Alone
30,248
Stand Alone
*Unincorporated Naperville
Holds County Liquor License
* Pharmacist on duty: Mon–Fri: 9:00A.M. – 9:00P.M.; Sat-Sun: 9:00 A.M. – 5:00P.M.
Additionally, Class D licenses are capped at 14 for stores located in shopping centers less than
100,000 square feet. Currently, 13 out of the 14 available Class D licenses for stores located in
shopping centers less than 100,000 square feet are in us. There is one (1) Class D license
available.
Walgreens was aware that the City’s liquor code did not have a liquor license classification to
accommodate its request and therefore, requests the creation of a new “pharmacy” liquor license
classification that would provide a package liquor license for Walgreens locations.
Pharmacy Liquor License
December 16, 2014
Page 3 of 4
Liquor Commission
The Liquor Commission recommends the creation of a new pharmacy liquor license
classification to accommodate nine out of Walgreens’ ten requested licenses (excluding the
Walgreens located in the Downtown), as well as the CVS Pharmacy on Rt. 59. The proposed
pharmacy liquor license is significantly more restrictive than the existing Class D – Package
Store license.
The Liquor Commission also recommends an ordinance prohibiting the package sale of alcohol
within the Downtown (exempting liquor license holders currently licensed to sell package
alcohol). The rationale for said ordinance is that if Walgreens was prohibited from selling
package alcohol at its Downtown location, no other new establishment should be allowed to sell
package alcohol Downtown.
New Liquor License
The proposed ordinance creates a Class V – Pharmacy Package Store liquor license
classification. It limits the license to only federally and state licensed and regulated pharmacies
and requires that the primary business conducted on the premises be the retail sale of
pharmaceuticals, which requires that no less than 50% of annual store revenues must be
generated from pharmaceutical sales made from the pharmacy by a licensed pharmacist or
technician.
The Class V license authorizes the retail sale of package liquor for off-premises consumption
only and prohibits any on-premise consumption including samples or tastings. It is capped with
an automatically reducing cap of ten licenses to accommodate nine Walgreens locations,
excluding the Downtown Walgreens location, and one CVS Pharmacy location. The annual fee
for a Class V license is set at $3,000.00. The Class V license contains the following additional
restrictions:
•
•
•
•
Liquor sales are restricted to only the hours, within the general Class D operating hours,
when the pharmacy is open to the public with a licensed pharmacist on duty; or if a
licensed pharmacist is not on duty, liquor sales are restricted to no later than 10:00 P.M.;
except during the week before Christmas when liquor sale hours are expanded to the
general Class D operating hours regardless of whether a pharmacist is on duty.
Prohibited from selling:
1. Distilled spirits in containers less than 325ml;
2. Wine in containers less than 325ml; and
3. Beer in individual cans or bottles of beer, except for craft beer, which may be sold
in individual cans or bottles not less than 16 ounces
Stores must be at least 9,500 gross above-grade square feet
No more than five percent (5%) of the total gross square footage floor space of the
physical premises shall be designated for the display of liquor, under no circumstances
shall the total gross square footage of the liquor display area exceed five hundred (500)
square feet
Pharmacy Liquor License
December 16, 2014
Page 4 of 4
•
•
The display of liquor shall be confined to a liquor display area as approved by the Liquor
Commissioner. A sign advising that the area is closed to be conspicuously posted within
the liquor display area during those hours that liquor sales are prohibited.
Mandatory local BASSET training
Downtown Locations
The Liquor Commission also recommends an ordinance prohibiting the package sale of alcohol
within the Downtown (exempting liquor license holders currently licensed to sell package
alcohol) so no other new establishment could be allowed to sell package alcohol Downtown.
Walgreens has continually requested that its Downtown location be eligible for a liquor license
and has offered to forego immediately applying for a license for its Downtown location in order
to prove itself after an agreed upon period rather than completely exempting its Downtown
location’s eligibility for a liquor license.
Staff recommends against including language in the proposed ordinance that anticipates
establishments located in the Downtown being eligible to apply for a pharmacy liquor license in
the future. Adding such language at the onset may cause due process considerations in the future
with regard to a denial of said license to establishments located in the Downtown. It is
recommended that if, in the future, establishments want to seek a license for location in the
Downtown they be directed to the Liquor Commission to consider recommending amending the
proposed ordinance.
DISCUSSION:
State and Local Laws
The Illinois Liquor Control Act was enacted to regulate the sale of alcoholic liquor in order to
protect the health, safety and welfare of the public. The State of Illinois has conferred upon the
City Council of local governments the authority to determine by ordinance the number, kind and
classification of liquor licenses, however; the authority to determine whether a license shall be
issued in the case of a particular applicant is vested solely with the Local Liquor Commissioner.
The sale of alcoholic liquor is a privilege and not a right, therefore the City Council may enact
regulations and restrictions on local liquor licenses. When considering whether to create a new
liquor license classification, consideration should be given to the core business concept, the
City’s ability to enforce its restrictions for public safety and appropriate liquor regulations, and
the precedential effect the new license classification may have on existing and future applicants.
RECOMMENDATION:
1. Pass an ordinance amending Title 3, Chapter 3 of the Naperville Municipal Code to
establish a pharmacy liquor license classification.
2. Pass an ordinance amending Section 3-3-17 of the Naperville Municipal Code to prohibit
the package sale of alcohol within the Downtown, exempting liquor license holders
currently licensed to sell package alcohol.
ATTACHMENTS:
1. Ordinance establishing pharmacy liquor license classification
2. Ordnance prohibit the package sale of alcohol within the Downtown