Outback asks Livonia for SDM waiver; police concerns and delivery limits flagged

Outback Steakhouse asked Livonia’s planning department and City Council to approve a specially designated merchant (SDM) waiver that would let the restaurant sell packaged beer, wine and certain mixed-spirit products for customers to take off-premises.

Mark Termina of planning explained the SDM classification and the process: the Michigan Liquor Control Commission issues the actual license, and the city’s waiver is a zoning action required for the additional use. Under SDM rules cited by staff, there is ordinarily a 500-foot separation requirement between SDM businesses (which the council can waive) and a 400-foot separation from schools or churches; planning recommended council consider a waiver but also recommended that any waiver be restricted so it cannot be transferred to another business without the council’s approval.

Donnie Thompson and David Franschock, representing Outback, told council the off-premises sales would be a small percentage of total sales and would follow the same identification and verification controls the restaurant uses for curbside and in-restaurant service. When councilmembers asked how a DoorDash or other third-party delivery driver would verify age, Outback said it would not offer SDM sales through third-party delivery services — packaged alcohol sales would be restricted to the restaurant’s own validated online orders or in-person pickup.

Councilwoman McDonough noted the packet contained a letter from the police department expressing concern; she asked that the police chief provide additional information and, if necessary, stipulations be added to an approving resolution. Planning staff and council said the council could also consider language restricting the waiver to Outback (so the right would not automatically run with the land) and that the transferability restriction would require a council resolution and potentially a two-thirds vote for some waivers.

What happened: planning approved Outback’s request 4–2 and recommended council action. During the study session the council placed the item on the Jan. 14 regular meeting for a final vote, and asked planning staff to include the police chief’s recommendations and proposed language limiting any future transfer of the waiver.

Why it matters: SDM licenses alter where packaged beer and wine can be sold in the city and can affect neighborhood retail patterns and enforcement needs. Council requested additional police input to better understand and mitigate underage-sale risk before making a final decision.

Next steps: Planning staff will include police department comments and suggested resolution language in the Jan. 14 packet; council will take a final vote at that meeting.