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Council votes to raise local liquor-store cap from 2 to 3; ordinance moves to second reading

3175812 · April 15, 2025
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Summary

The council voted in favor of a first reading that increases the city code limit on the number of local liquor store privilege licenses from two to three. Council members cited free-market principles and potential tax revenue; opponents cited a sufficient number of existing retailers and community character concerns.

The Athens City Council voted to approve on first reading an ordinance amending Title 8, Chapter 2 of the Athens City Code to increase the numerical cap on local liquor-store privilege licenses from 2 to 3.

Council members John Dugan, Jake Pelley, Vice Mayor Curtis and Mayor Larry Eaton recorded votes in favor; Council member Charlene Sherlund voted no. The roll call on the first reading recorded: Dugan Aye; Pelley Aye; Sherlund No; Vice Mayor Curtis Aye; Mayor Eaton Aye.

Supporters framed the change as a free-market decision that could retain local tax revenue and better serve residents who currently drive outside the city for some purchases. One council member said the city’s liquor taxes and related revenues are higher than some neighboring jurisdictions and added that modestly expanding the cap could reduce out-of-town spending.

Opponents said the city and nearby towns already have multiple liquor retailers and that Athens’s population (roughly 15,000–16,000, as cited by a council member during the discussion) does not need additional package stores. “There is a minimum of 18 liquor stores in a 30–35 mile radius of Athens,” Council member Sherlund said, arguing that “2 is enough.”

The city attorney clarified the administrative process: if council increases the cap there will be an available license and the city will consider complete applications in the order they are received; the city’s licensing process is not a lottery.

Ending: The ordinance passed first reading and will return for a second reading next month. Council members discussed procedural details for vetting any applicant and noted that zoning and application vetting would remain part of the licensing process.