Quota on liquor licenses in Back Bay confronted.
With new hotels and restaurantuers seeking to take advantage of the Back Bay’s strong economic climate, the Back Bay has seen recent pressure to increase the total number of liquor licenses permitted within the neighborhood. The Neighborhood Association of the Back Bay, however, has traditionally opposed new liquor licenses being transferred into the neighborhood unless an existing license is surrendered or transferred out of the neighborhood, creating an un-official “cap” of existing licenses within the neighborhood. Such un-official “caps” exist in other neighborhoods within Boston, including the North End.
The previous chairman of the Boston Licensing Board, Daniel Pokaski, generally upheld the un-official “caps” imposed by neighborhood associations or at least showed them strong deference. In a recent hearing for the establishment of a new license within the Back Bay, however, Nicole Ferrer, the new chairwoman of the Boston Licensing Board, stated openly that such un-official “caps” will not be controlling on her watch and that each proposed license transfer will be judged more on its own merits, without, perhaps, any deference to the Neighborhood Association’s say on the total number of licenses existing within a neighborhood.
This is a significant yet subtle change in the way City Hall looks at new projects in neighborhoods that are already economically successful and could draw scarce licenses away from other less successful neighborhoods where a license would not be as valuable. Chairwoman Ferrer’s comments, however, could provide relief for new businesses seeking to establish themselves in the neighborhoods of their choice, such as the Back Bay where licenses can cost as much as $400,000.00 because of the artificial “cap.”