Fargo board discusses 100-foot proximity rule, Target off‑sale application and conditional licenses

City Auditor Steve Sprague told an informal meeting of the Fargo Liquor Control Board and industry stakeholders that Fargo’s licensing rules include proximity considerations but do not set a single, universal distance for every case.

"There is a proximity clause, but again, the way that I was thinking was that is there something that says you can't be within a mile," Sprague said, and later confirmed the ordinance uses a "hundred foot rule" in section E while also allowing the city commission discretion under section 25-15-08.

The clarification came during wider discussion of conditional licenses and a pending application from Target. The applicant’s form, Sprague said, lists a planned start of operations in 2027, which would leave a license unused for more than two years unless the city imposes conditions. "On their application ... it says that they'll begin operation or start using that license in 2027," Sprague said.

Commissioner Dave Pepporn said Fargo has long allowed licenses to remain inactive for a period while owners finish construction or seek buyers, but outlined existing controls in city code. "We require that once that license is approved, that they pay 10% of the license initial fee down and then the balance would be paid within 180 days," Pepporn said, citing section 25-15-07. He also noted rules that a license must be used periodically—"you have to sell alcohol at least 1 day out of 30"—and that exemptions can be requested from the city commission.

Industry members said large retailers typically plan for licensing during site development and expect to pursue permits and inspections once a license is approved. Scott Recki, a volunteer on the liquor board with big‑box retail experience, said, "As an operator of that type of a large scale business, they have so many different things that they need to get in line." He added that big retailers tend to move quickly once permitting begins.

Members also raised concerns about speculation where county licenses are purchased in unincorporated areas that later annex into Fargo. Pepporn and others said properties annexed into the city would be required to meet Fargo's rules and pay Fargo fees if a retailer seeks a Fargo license after annexation. "If they're coming into Fargo, they follow Fargo and they have to pay for everything," Pepporn said.

Board members discussed options including leaving current practice unchanged, eliminating license caps, or requiring a license to remain at the original location after annexation. No ordinance changes were adopted at the meeting; staff will examine whether an ordinance amendment is needed to require licenses to remain at their original location when property is annexed into Fargo.

The discussion also included operational clarifications: the city interprets the hundred‑foot rule as door‑to‑door distance and requires a physical separation that prevents free passage of patrons between an off‑sale and the rest of a store; exceptions and commission discretion have been applied in past cases involving common ownership, Sprague said.

The item was discussed broadly with industry representatives and liquor board volunteers; no formal motion or vote occurred. Staff said the Target application and annexation questions will return to the Liquor Control Board for further review.

Clarifying details from the meeting: Target’s application lists a planned start of operations in 2027; Fargo’s ordinance (25-15-07) requires 10% of the initial license fee paid at approval and the balance within 180 days; the code includes use-frequency requirements (for example, at least one day of sales within 30 days) and allows the commission to grant exemptions; transfers that change ownership by more than 5% require a new application and background checks; the city currently counts about 133 liquor licenses and staff estimated population growth of about 3,500 people per year, putting the next license availability around late 2026.

Ending: The board did not change policy at the workshop. Staff will draft options, including possible ordinance language about keeping licenses at their original locations after annexation, and bring them back to the Liquor Control Board for consideration.