Board flags growing trend of charities owning liquor establishments; staff to gather information

Fargo Liquor Control Office staff told the board Sept. 1 that charities owning liquor establishments is occurring in other North Dakota cities and that the board should consider whether to place limits or conditions on such ownership. Steve Sprague said charities in Grand Forks and West Fargo have acquired bars and that the practice raises questions about who would hold the license, board-member oversight, background checks and liability when ownership is a nonprofit with volunteer directors. A commissioner cautioned that the matter is a “slippery slope” and suggested staff gather details used by other municipalities. Board members agreed it’s a complex issue requiring legal and operational review. Sprague said the state may be conducting a study and that staff will gather information on how other jurisdictions handle charity ownership of licensed establishments. No policy or rule changes were proposed or adopted at the meeting; staff will return with research and a list of issues for board consideration.