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Assembly moves to preserve protest rights on two liquor-license transfers after state delays
Summary
The assembly signaled it will place AMCO liquor-license transfer and continued-operation issues on the next regular meeting agenda so the borough can preserve its right to protest; staff flagged delayed state notices and waivers that complicated the review.
The Kodiak Island Borough clerk and assembly discussed two pending Alcohol and Marijuana Control Office (AMCO) license matters and directed staff to add a protest vote to the borough’s next regular meeting agenda to preserve the borough’s right to challenge continued-operation and transfer requests.
Background: The borough received two transfer requests and related renewal matters late from AMCO. One request transfers controlling interest in a Bernie's Bar license; another seeks transfer and relocation of a restaurant license (reported in materials as Second Floor and Nuniek Café). The clerk reported AMCO had delayed notifying the borough and that the licensees had applied for waivers of operation for multiple years; some waivers had not been filed on time.
Why it matters: The borough has limited restaurant/dispenser-class licenses in Kodiak. Borough staff and several assembly members said AMCO’s slow processing and inconsistent notices left the borough with incomplete information and created the risk that a license that should have been surrendered years ago remains active and is being transferred improperly.
What the assembly directed: Clerk Nova advised the assembly that AMCO had declined the borough’s protest of continued-operation for one license, and the assembly has 15 days to decide whether to appeal that declination. Members instructed the clerk to put a protest on the next regular-meeting agenda so the borough could keep its protest rights. The assembly also asked the borough attorney to help draft the protest paperwork.
Staff details and timeline: Borough staff reported that AMCO had not sent renewal notices to the borough for a prior renewal cycle; the borough only learned of the transfer application in January 2025 even though AMCO showed an application date in 2024. Staff cited conflicting information in AMCO records: the licensee told the board they had operated through 2023, while borough tax and business-license records indicated no business-personal-property filings and minimal sales-tax activity for years.
Public and assembly response: Several assembly members called AMCO’s handling “incompetent” and said the borough should seek to protect community access to any licenses that are not legitimately active. Assemblymember Dave Johnson urged protesting the transfer to avoid rewarding an improperly maintained license and to make the license available in the community for qualified applicants.
Next steps: Clerk and manager will add the protest item to the regular meeting agenda next week and consult the borough attorney to prepare the protest and, if needed, an appeal to the Office of Administrative Hearings. The assembly noted that AMCO plans a Kodiak-only meeting after March 9 to address local licensing confusion; the borough will pursue its protest in parallel if necessary.
Ending: No transfer or protest was resolved at the work session. The assembly instructed the clerk to present a protest motion at the next regular meeting so the borough preserves its procedural rights under AMCO rules.
