Liquor Outlets Would Increase from 6 to 19 in Triangle Under Gov's Plan

By Stephen Groves, of Virginia Statehouse News Wednesday, October 13, 2010

ALEXANDRIA - The liquor privatization plan being pushed by Gov. Bob McDonnell has enough numbers in it to make a 10th-grade math story problem look easy, but one figure that will hit close to home for Virginians is the number of liquor retailers that will end up in their neighborhoods if the plan is passed.

Based on examples in the privatization proposal, the Senate Finance staff estimated the number of liquor retailers in each locality in the Commonwealth. The governor’s plan would sell licenses to retailers, increasing the number from 332 to around 1,000. The estimates were done at the request of Sen. Mary Margaret Whipple, D-Arlington.

They show, not surprisingly, that areas with the highest population would have the greatest percentage of retailers. Fairfax County, which currently has 34 Alcoholic Beverage Control (ABC) stores, would have 132. Cities such as Alexandria will see an increase from seven stores to 18 retailers.

The biggest change in the Historic Triangle would be in James City County, where the number of liquor outlets would go from one to nine. In the City of Williamsburg and York County, outlets would double. Williamsburg would go from one to two; York would increase from four to eight.

“The vast majority [of localities] are going to have … quite large increases in the number of outlets that are going to be in their communities,” said Whipple.

There would be one outlet for every 8,000 people. Under the proposal, there would be 600 licenses for grocery stores, 150 licenses for larger specialty stores, 150 licenses for smaller chain stores, and 100 licenses for small businesses.

McDonnell’s aides insist that the increase in liquor retailers is safe and responsible. Most retailers would sell more than just alcohol.

“You’re not talking about a proliferation of new stores,” said Eric Finkbeiner, McDonnell’s policy adviser. “You’re talking about new shelves in existing stores.”

He also said that even with the increase, Virginia remains on the low end of liquor outlets per capita. Currently, the Commonwealth has the fewest number of stores per capita in the country, at 1.4 per 10,000 adults. If privatization is passed, McDonnell’s aides estimate the number would increase to 1.8 outlets per 10,000 adults. This would only be slightly higher than the average in control states, which sits at 1.6 outlets per 10,000 adults.

The effects of this increase are disputed. McDonnell points to a study by the Virginia Institute for Public Policy, a think tank advocating for smaller government. The study, done by researchers from George Mason University, said public health and safety wouldn’t be affected.

But the Marin Institute – which describes itself as an “alcohol industry watchdog,” — estimated that Virginia could see 220 more alcohol-related deaths per year, based on a 2006 study published in the journal Accident Analysis and Prevention and reported in the Washington Post.

Another concern is how these new liquor outlets will fit into the community.

McDonnell’s aides said that liquor outlets will have similar regulations as beer and wine retailers.

To get a beer or wine license, retailers must apply through the ABC board. They also must face a hearing in which anyone can voice objections to the license. The board can also decide to deny the license if the outlet would “adversely affect” the operations of a school, church, or park.

Local governments can regulate where and at what hours beer and wine are sold, and McDonnell’s aides indicated liquor would also be subject to local regulation.

McDonnell’s aide Melissa Luchau said stores would be regulated with “Virginia traditions and values,” meaning absent of neon signs and excessive advertising.

But the exact regulations would be hammered out if privatization can be passed in the General Assembly. Right now, McDonnell is trying to sell legislators on the plan, although gaining traction with Democrat opponents appears tough.

The governor wants to call a special session in November to pass privatization and other reform measures, but said he would only do so if he has the necessary support from lawmakers.