Council agrees to start ordinance process to allow alcohol at Godwin Mercado; staff recommends city‑run liquor sales to support venue sustainability

City staff presented options Sept. 8 for allowing alcohol service at the Godwin Mercado and council members voted to begin the ordinance change process that would permit alcohol at the site. Staff recommended the city apply for a Civic Center liquor license and run sales through trained city staff; council asked for more detail ahead of final consideration.

What staff proposed: Krishan (city staff) outlined three models for alcohol service: - Option 1: city holds a license but contracts a caterer; the caterer must hold a licensed catering permit and would handle sales and service (low city revenue, reduced liability but less control). - Option 2 (staff recommendation): city holds a Civic Center class C license, buys and sells alcohol directly and hires/trains staff to serve (maximum revenue, full operational control, additional responsibilities for inventory, compliance and training). - Option 3: use an approved caterer list with each caterer holding its own license; alcohol would be allowed only at private, non‑ticketed events (reduced liability but little revenue and limits on fundraisers or ticketed events).

Staff said it favored option 2 to meet the city’s stated goal of making the Mercado as financially self‑sustaining as possible. Krishan said the city already budgeted a full‑time market manager and part‑time event assistants and that these staff would receive ServSafe training and follow a responsible alcohol policy. Staff proposed a 150‑guest maximum for venue rentals, last call 30 minutes before event end, and a 10:00 p.m. curfew (service to end at 9:30 p.m.).

Projected finances and assumptions: Staff presented projections that omit long‑term capital replacement funding but estimate first‑year cost recovery without alcohol at roughly 53% (a subsidy of about $120,000) and a second‑year cost recovery of 92% if the city sells alcohol directly. Projections assume an average event of 100–150 guests, 2–3 drinks per guest, average drink prices of $6–$8 for beer and wine, and that alcohol sales would start in fiscal year 2027 if licensing timeframes are at the long end (2–5 months for Michigan Liquor Control Commission review).

Council concerns and direction: Council members asked about staffing (use of part‑time seasonal staff and existing market manager), cash handling, security, whether the curfew should be extended for some events, and whether offering only beer and wine would be sufficient to attract wedding bookings. Several members said they preferred testing alcohol service at the Mercado before expanding to other city facilities. Mayor and other council members requested staff bring ordinance amendments (to permit alcohol at the Mercado) for first reading at the next council meeting and return proposed licensing/resourcing details for final action in October. Krishan and staff said they would bring ordinance language and the resolution to authorize an MLCC application back to council for final consideration.

Ending: Council directed staff to start ordinance changes next week to allow alcohol at the Godwin Mercado and asked staff to return with final ordinance text and the liquor‑license proposal at the October meeting; no final vote to issue a license was taken at the Sept. 8 work session.