Yankton commission asks staff for more research on off-sale liquor license after two failed auctions

The Yankton City Commission on March 10 held an extended discussion about the city-held off-sale liquor license that failed to attract bidders in prior auctions and directed staff to research comparable sales and prepare a proposal for an administrative application fee.

Commissioners reviewed the license’s recent history: the city previously opened the license for sealed bids with a $100,000 minimum and later a $50,000 minimum; both solicitations produced no bids. Staff noted that state statute establishes a minimum bid that cannot be less than $300 and that the city’s renewal fee for such licenses is $500, set by city ordinance.

Staff (Lisa) told the commission that sales of these licenses are rare and often privately negotiated, making public-comparison data limited. Commissioners debated options including holding the license, reopening it for sealed bids for a set period, or setting a lower minimum. Several commissioners said they thought the prior high minimums might have deterred bidders and suggested testing market interest again.

The commission also discussed reuse of an administrative application fee. The city used a $100 nonrefundable application fee in the previous process; staff said adopting such a fee would require a resolution at a future meeting. Commissioners generally supported directing staff to gather additional data — including Mitchell’s upcoming bid opening and other municipalities’ practices — and to prepare a resolution and memo with recommendations for the next meeting.

Ending: Staff will return with comparative statistics about recent license sales, a recommended timeline if the commission wishes to reoffer the license, and a draft resolution if the commission chooses to adopt or continue an application fee.