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Assembly maintains local protest of Second Floor restaurant liquor license transfer after informal hearing
Summary
The Assembly held an informal hearing as required by 3 AAC 305.085(d) and decided not to withdraw a prior voice protest of a transfer of liquor license number 3293. The applicant defended remedial compliance steps and said a building permit is finalized.
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The Kodiak Island Borough Assembly on March 6 held an informal, abbreviated hearing on a State of Alaska Alcohol and Marijuana Control Office (AMCO) transfer application for liquor license number 3293 (Second Floor restaurant to Nunak Nuniak Cafe and Deli). The Assembly had voted a local voice protest at its Feb. 20 meeting. Under 3 AAC 305.085(d), the local governing body must allow applicants a reasonable opportunity to defend their application; the informal hearing provided that opportunity. After the applicant presented and staff answered questions, the Assembly did not withdraw the previously adopted protest, leaving the protest in place for AMCO's consideration.
Applicant presentation An applicant identified in the hearing as a co‑owner of Nunak Nuniak said the business has remedied the cited problems, finalized a new building permit, plans to add a deck and to address accessibility issues, and has worked with borough and city staff to resolve outstanding permit questions. The applicant asked the Assembly to consider those steps in its determination.
Assembly remarks and rationale Several assembly members said the root cause of the dispute appears to be that a state license remained active or was not properly revoked or maintained by the prior licensee. Assemblymember Sherritt said he received the most constituent calls of his career on this issue and did not support withdrawing the protest. Assemblymember Smiley said he agreed with Sherritt. Others expressed sympathy for local business owners and frustration with slow state processes but indicated they would not reverse the protest absent clearer state action or additional facts. Assemblymember LeDoux encouraged further conversation among borough staff and the city to identify ways to make permitting and licensing less burdensome for businesses.
Why it matters A local protest can affect AMCO's review of a license transfer. The matter has generated sustained public interest; multiple restaurateurs and business owners spoke during the citizen comment period about difficulties getting permits and the economic importance of on‑sale beverage authorization (REPLs) for small restaurants.
Next steps The Assembly’s protest will be transmitted in accordance with state rules. AMCO will continue its administrative review and make a determination on the transfer application.

