Council discusses ‘riverfront district’
The Valparaiso City Council is debating the merits of establishing what’s defined by the state as a “riverfront district” development that would allow the city options to secure additional liquor licenses for businesses.
The first reading of Ordinance No. 28, 2022, created for the purpose of establishing a municipal riverfront district project area, was approved unanimously by all members of the Valparaiso City Council at the Nov. 28 meeting, despite expressed reservations from some council members.
As described during his explanation of what the planned district might entail, Valparaiso City Attorney Patrick Lyp emphasized during his presentation to the council how prized and valuable any newly issued liquor licenses are when granted by the state.
“Under Indiana law there is a quota for communities as to how many liquor licenses can be granted at any given time, and it’s set by our population and only revisited every 10 years for this formula based on the census,” Lyp said.
“In our case, Valparaiso has 21 of the three-way liquor licenses provided for the sale of beer, wine and spirits for restaurants. These 21 licenses are transferable.”
Lyp said 498 Morthland Ave. in Valparaiso, a property near the old BridgeVU Theater at the intersection of Horse Prairie Avenue and U.S. 30 that previously housed Bethel Church until 2018 and now has been sold to a new owner, is the partial catalyst for the idea of establishing a riverfront district.
“The new owner of this property asked about the potential for securing a liquor license which led us to investigate this idea of a riverfront district development in that area, since this type of project would allow for additional liquor licenses which would not count against our original 21 existing licenses,” Lyp said.
“The requirements is that the developing parcel must border at least one side of a river, hence the term riverfront district, although the state interprets the word ‘river’ very flexibly. For example, Chesterton has a riverfront district and it uses Coffee Creek as the water body.
“Even a stormwater retention pond I’m told might qualify. The area being developed does need to be a TIF district proving it can be developed economically.”
In the case of the suggested Valparaiso development area, Lyp said Salt Creek near the Journeymen Distillery development would qualify as “a riverfront.”
“Really, Salt Creek is little more than a ditch,” questioned Councilman Evan Costas, R-At-large.
“Given the impact and requirements for granting any liquor license, I’d like to see more a plan of what is expected, since this needs to be a bigger conversation.”
Lyp recommended that anyone interested in establishing a business in the proposed area should be made to pay a $25,000 fee for the initial steps to secure one of the liquor licenses which would be allowed based on the number of parcels of land developed.
“The last three-way liquor license that was auctioned off downstate went for in excess of $300,000, proving that these are valuable pieces of paper,” Lyp said.
The council will discuss the idea and have a second reading and vote on the riverfront district ordnance at Monday’s council meeting.