Kodiak assembly protests one liquor transfer, clears another after public hearing

The Kodiak Island Borough Assembly voted 4-0 on Feb. 20 to submit a formal protest to the Alaska Alcohol and Marijuana Control Office (AMCO) over a proposed transfer of ownership and location for restaurant license number 3293 from Second Floor Restaurant to Nunak Cafe & Deli, and to schedule a borough hearing on the matter for March 6.

The vote followed a public hearing in which business owners and residents gave contradictory accounts of the license's history and of the transferee's readiness. Assemblymembers later amended the borough's protest letter to remove language that suggested the transferee's operations were seasonally limited, saying the protest should focus solely on whether the license was being held or transferred in accordance with state law and AMCO rules.

Why it matters: The transfer involves a commonly used type of restaurant liquor license in Kodiak and follows a broader dispute over whether prior license holders allowed licenses to lapse or otherwise kept them out of community use. The assembly emphasized that its objection was procedural — rooted in the borough's reading of statutes and Alaska Administrative Code — not a vote against Nunak Cafe & Deli as a business.

Nunak Cafe co-owner Nate Sabota, who spoke at the hearing, pushed back on the borough staff letter’s tone and several factual assertions. "This is the first time I've heard that" the letter describes a restaurant requirement beyond the code, Sabota said, referencing the letter's suggestion that licenses should be held by full‑service, year‑round restaurants. He noted the state code requires about 280 hours of operation per year for a restaurant license and said Nunak plans to serve dinner and is open year‑round for lunch.

Co-owner Melissa Burns said the transfer process began in 2022 and described delays and confusion she said stemmed from AMCO’s processing timelines and from uncertainty on small operational details, such as whether to declare low‑value items for borough personal property records. "It has taken us that long to get it up to par," Burns said, asking the assembly for timely resolution so her business can operate without prolonged uncertainty.

Other public commenters urged different outcomes. Leanna Harrington, a Kodiak business owner, urged the assembly to prevent the prior license holder (identified in public comment as associated with Peking/Sizzler properties) from controlling licenses she described as "purely fraudulent," and said she had reported apparent long‑term problems to state authorities.

On a separate application, the assembly voted 4-0 to voice no protest to AMCO for a transfer of controlling interest in Bernie's Bar LLC (license number 4346), after a clerk's report said the change followed borough code procedures and no departmental objections were received.

The clerk advised the assembly that under Alaska Administrative Code a protest or non‑protest decision requires notifying the transferor and transferee and that, if protested, the transferee must be given an opportunity to appear at a subsequent borough meeting to defend the application. The assembly set the next regular meeting, March 6, as the date for further consideration of the Nunak item.

Assembly action also included authorizing the borough manager to file a request for hearing to appeal an Alcoholic Beverage Control (ABC) board decision that had denied the borough's earlier protest of continued operation of REPL number 2611. That motion passed 4-0.

What the assembly recorded: The borough amended its written objection to remove language after subsection B (text described in the packet) so the formal protest would end with factual assertions about the prior license status and application process rather than commentary on the transferee's business model. The amendment and final protest motion passed unanimously.

Looking ahead: The assembly's protest will be transmitted to AMCO and the transferee and the borough will hold a hearing on March 6. The clerk indicated that AMCO policy allows the transferee to respond at that proceeding and that further decisions could follow state administrative processes.