Assembly confronts Alcohol & Marijuana Control Office delays, plans protest of contested license transfer

Assembly staff told the Kodiak Island Borough Assembly on Feb. 13 that two liquor-license matters involving AMCO are currently tangled by delayed filings and waiver requests and that the borough must act quickly to preserve its right to protest.

Nova (borough licensing staff) summarized two matters: a transfer of controlling interest for one beverage-dispensary license (Bernie's Bar, LLC) and a more complicated transfer and relocation tied to license number 3293/2611 (Second Floor restaurant / Nuniek Cafe and Deli). Nova said the state office has been slow to route some renewal and transfer notices to borough offices; in several instances the borough did not receive renewal materials in 2022 and 2023 and only learned of transfer applications late in 2024 or early 2025.

The clerk confirmed the borough received a declination from AMCO on a previously filed protest to the continued operation of a license, and that the assembly has 15 days to decide whether to appeal or file a protest of AMCO's decision. Clerk/assembly staff requested that the assembly place a protest decision on the Feb. 20 regular meeting agenda so the borough can preserve its right to challenge AMCO's determination. The clerk and manager also said they had already asked the borough attorney to help prepare the protest letter and related briefing.

Assemblymember Dave Johnson said the borough should protest the transfer of licenses that appear not to have been validly active: "The license shouldn't be active. It shouldn't be issued. We should be protesting the transfer of a license that should not exist," he said. Clerk staff presented records demonstrating years when business personal property taxes were not filed, questions about accommodation-tax filings, and multiple waiver-of-operation filings that had been submitted late or not at all.

Manager Amy Williams said the state office had taken months to transmit certain applications to the borough and that the state had added new code changes that complicated AMCO's internal decisions. She urged the assembly to familiarize itself with the materials; Nova told the assembly that the city of Kodiak has already filed its own protest in one of the contested matters.

The assembly directed the clerk to add the AMCO protest decision to the Feb. 20 regular meeting agenda and asked legal counsel to prepare any necessary filings. Several assembly members suggested raising the concern with the borough's legislative delegation to press AMCO for clearer timelines and consistent handling of Kodiak licenses.