Town of Troy is willing to transfer a liquor license to the city of Hudson, for a fee of $30,000, the Hudson Common Council heard Monday night.
The $30,000 is paid by the applicant, not the city, City Attorney Catherine Munkittrick said.
The council approved asking the town for the transfer.
City staff reached out to town of Troy in December after a request on behalf of local restaurant owner Paul Rode. A letter to the council stated Rode was looking to open a restaurant in downtown Hudson and wanted a liquor license to operate it.
The city currently has no more liquor licenses to give.
If approved by all parties, the license will be transferred by the town to the city, and the city will then issue the license in its usual manner. The amount set by town of Troy is then paid by the applicant to the city at the time it is issued, and the city then gives that amount to the town of Troy, Munkittrick said.
Council Member Sarah Atkins Hoggatt asked about a four-month timeframe set in the town of Troy minutes. Munkittrick said the city would need to clarify if that is a timeframe for the city to accept the transfer, as statute would not allow the town to set a time limit for the city to award the license.
Under the statute the transfer is binding, and once made it cannot be returned to the town, Munkittrick said.
That means if no one is willing to pay the price for the license, it will sit until someone is, Munkittrick said.
The city is on the verge of receiving another license once the population reaches 14,000. City Administrator Devin Willi said that will likely happen in fall of 2019.
Mayor Rich O'Connor said the city may then have the circumstance where two licenses are available, one for the standard fee of $10,000 and one for $30,000, and an applicant could just apply for the cheaper one.
Willi said if that happens, the $30,000 license will continue to sit. The city would not be able to require applicants to apply for one specifically, Munkittrick said.
Even if the license sits, the $30,000 fee is not paid unless the license is issued.
"The city is not out any money at all," Willi said.
After the initial issuance and first year, the license becomes a standard city license.