Journal-Times (Grayson, KY)

July 31, 2013

Alcohol ordinance passes

By Leeann Akers - Editor

July 31, 2013 — Grayson City Council passed the first reading of its alcohol sales ordinance on Thursday night and the second on Monday morning.

It took more than an hour to read the ordinance in its entirety at both meetings.

Council decided that alcohol sales by the drink would require a four percent regulatory fee while package alcohol sales would be assessed at six percent.

The subsection addressing regulatory fees on gross sales in businesses that sell alcohol by the drink was struck from the ordinance, at least temporarily.

Mayor George Steele argued that the section should stay with a lower percentage in order to add much-needed amenities to the community.

“I think it is a mistake to completely legislate this section out,” Steele told the Council on Monday. “It is deceptive to bring in new businesses and then put this fee on later on. Nothing is unfair in government if you put it in before they come in. Nothing is unfair if they know coming into it.”

He continued:

“The fees listed in the first part of this section have to go to the increased regulation, prevention, rehabilitation, that sort of thing. “Without the second section, with the fees that have no strings, we aren't going to see the parks and more recreation and those other things that are part of the public perception.”

Three motions that decreased the fee from two percent failed when a vote was taken last Thursday.

Finally, the section was struck from the ordinance on a 4-2 vote, with Council members Pam Nash and Juanita Kennedy voting against.

After considerable discussion, Council decided to wait until they could consult with the Kentucky Department of Alcoholic Beverage Control (ABC) before enacting the fee, which can be done at a later date.

State ABC had not returned calls to city attorney Reid Glass on Monday.

Alcohol sales will be allowed in package stores from 6 a.m. to midnight, Monday through Saturday. Alcohol by the drink will be sold from 11 a.m. to midnight, Monday through Saturday, and 1 p.m. to midnight on Sunday.

Steele also addressed public concern with when alcohol could be sold by the drink on Sundays.

The mayor suggested Monday that the time of allowed Sunday sales be pushed back to 2 p.m. in order to accommodate those in the community who are against alcohol. No action was taken, however.

Glass told the Council that he expected ABC to allow two liquor store licenses within the city.

“We have been led to believe there will be two but that doesn't mean that two will be issued,” Glass said. “All those decisions are made by the state ABC.”

Council will hold another special meeting on Thursday, Aug. 8, to discuss the alcoholic beverage administrator position and to consider applications for police chief.

The entire ordinance appears in the July 31 issue of the Journal-Times, starting on Page D-4.

Leeann Akers can be reached at or by phone at 474-5101.

The process:

  1. The City of Grayson publishes the ordinances in the newspaper of record.

  2. The state board of Alcoholic Beverage Control will publish a notice stating that interested parties can publish a notice of intent to apply for a license.

  3. Applicant must publish intent to apply for a license with the newspaper of record. This can be done in person in any of our office locations (Grayson, Olive Hill, or Morehead) or by calling toll-free 800-247-6142.

  4. Once printed, attach a newspaper clipping of the announcement to an application.

  5. Fill out the application.

  6. Take the application to the City Building with a $50 application fee and a certified check, cash, or money order for the license amount, minus the application fee.

  7. Be patient!

Once the intent to apply for a license, the public has 30 days to address concerns and complaints to the State ABC board before the license can be approved.

Types of licenses:

There are many different types of alcohol licenses that will be available in Grayson, which range in price from $100 to $3,000 per year. Some of the most common will be:

Quota retail package license: A “liquor store”- sells liquor and wine.

Non-quota type 2: Restaurants in which beer, wine, and liquor can be sold by the drink. This also applies to hotels and motels with 50 or more sleeping units.*

Non-quota type 3: Private clubs that have been in existence one year or more prior to the application.*

Non-quota type 4: Sells beer, no seating or food restrictions as with non-quota 2.

Special Sunday retail drink license- can be issued to anyone who holds a Non -quota type 2 license.*

Caterer’s license: a supplementary license for establishments that already hold a license, in order to transport, sell, serve, and deliver beer, wine, and liquor by the drink at other locations. *

Non-quota retail malt beverage package license: beer sold at gas stations and convenience stores.*

Limited restaurant license: Can sell beer, wine and liquor- restaurant must have 70 percent of gross sales in food. *

*All licenses have extensive requirements, regulations and restrictions, and can be found on page D-4.