Alcohol licenses up for bid
Folks enjoy a beer at Backslope Brewing in the file photo.
Two new alcohol licenses are up for bid in Columbia Falls in the next month. The Department of Revenue announced a beer and wine license is up for bid and a “floater” all-beverage license is available, with some caveats.
The new licenses became available after Senate Bill 5 was passed in 2017, noted DOR spokesman Sanjay Talwani.
Prior to the passage of SB5, Columbia Falls and Whitefish were considered one area and the quotas were set based on that. Licenses were also awarded via a lottery.
But SB5 did away with the lottery and replaced it with a bidding system, generating more revenue for the state. It also, in effect, made Columbia Falls eligible for more licenses.
The licenses are not inexpensive.
The restaurant beer and wine license has a minimum bid of $37,500. The “floater” all-beverage license is available with a minimum bid of $198,670. This license allows the successful bidder to purchase an existing all-beverage license in an area that is over its quota limit. Once approved by the department, the successful bidder may transfer that license to Columbia Falls.
In other words, the winning bidder still has to go out and find a business willing to sell their license.
The minimum bid is set at 75 percent of the market value of the similar licenses in the area.
A winning bid does not guarantee a license, either. A person or business must still go through the department’s vetting process and meet all the legal requirements, Talwani noted. SB5 also requires that the winning bidder set up a new business within a year of obtaining the license, unless the business gets an extension from the department.
If the first bidder is disqualified, the second highest bidder can then apply for the license.
All bids must include an Irrevocable Letter of Credit from a financial institution. All bids must also include a $100 processing fee plus any possible payment processing fees. Licenses are also available through competitive bidding in Hamilton, Helena, Bozeman and Belgrade.
Applicants must submit their bids through MyRevenue.mt.gov. For more information visit revenue.mt.gov or call (406) 444-6900.