Pensacola votes to ban bottle clubs; simplify which restaurants can serve liquor

*Editor's note: This story has been updated to reflect that the ordinance must pass a second reading to become final.

The Pensacola City Council passed the first reading of an ordinance update Thursday that would ban bottle clubs in the city, as well as amend codes to let properly licensed small restaurants sell liquor.

The changes were made to "modernize" the city's bar and restaurant regulations, according to Mayor D.C. Reeves.

The bottle club portion of the ordinance change sailed through with no discussion or opposition.

The removal of the bottle club business type was recommended by city staff and the mayor's office "as the use has historically been the source of enforcement and public nuisance-related issues not just in Pensacola, but in other jurisdictions as well," documentation for the proposal said. "Multiple other agencies have removed, or heavily restricted bottle blubs already, so this request aligns with actions taken by others."

Previously: Pensacola Mayor D.C. Reeves proposes banning bottle clubs

Here's the backstory: Cask and Flights may face shutdown after Pensacola says there's too many bars on the block

In recent years, only one bottle club has operated in the city — first under the name Bedlam and then as The Pelicans Nest — and it was the center of several criminal incidents, including shootings downtown.

The Pelicans Nest closed last year after it was the location of a shooting that wounded five people.

The updated ordinance removes bottle clubs as an allowed use under the city zoning regulations, but since there are no operating bottle clubs in the city right now, it does not affect any current business.

Pensacola allows restaurants with proper licensing and a minimum of 25 seats to serve liquor

A separate component of the ordinance change Thursday dealt with restaurant regulations.

In order to serve beer, wine and liquor, restaurants can must obtain a license from the state called a 4COP SFS, which mandates that the restaurant have a minimum of 2,500 square feet of service area and the capacity to serve at least 150 people at one time.

The city of Pensacola grants businesses with SFS licenses exemptions to certain regulations, including rules mandating that businesses that allow alcohol consumption on site must be a certain distance from churches, schools and residential zones. The city provides an additional exemption for restaurants that do not qualify for the SFS license and serve beer and wine only, with no minimum seating capacity or service area requirements.

The Mayor’s Office and city staff proposed an amendment to the city code that would expand this exemption to allow for restaurants that are not of sufficient size to meet the SFS requirement, but are able to provide a minimum seating capacity of 25 people, to also serve beer, wine and liquor.

"In a dense urban environment, such as the city of Pensacola, it is not uncommon for restaurants to find themselves unable to meet this size threshold, even when utilizing city right of way to provide additional seating," documentation for the proposal said.

The new exemption also applies to a code limiting the number of bars that can be located in one city block. Cask and Flights, which shares a downtown city block with the Old Hickory Whiskey Bar, had been found in violation of the code, but will be granted an exception under the new rule change.

Cask and Flights owner says it's more than a bar, a distinction that could help it stay open

Addressing concerns that the rule change could prompt a flood of new bars, Mayor D.C. Reeves said the limited number of SFS licenses available per county, which he estimates is 70 in Escambia County, and the prohibitive cost of obtaining one, approximately $300,000 according to Cask and Flights owner John McCorvey, would keep the number of bars in check.

Still, Councilwoman Allison Patton voiced concern that the ordinance left too much to forces outside the city's control.

"I really think that for the good of our community, we need to make sure that we don't just hope that the state doesn't issue a lot of 4COP licenses that can now be used under this section, but that we make sure that we are creating an ordinance that we feel comfortable is the right thing for the residential development downtown and for our community," Patton said.

She proposed an amendment that would requiring restaurants to make at least 30% of their revenue through sales of food and non-alcoholic beverages, but it failed to garner enough support with her peers to pass.

The code changes suggested by Reeves and staff ultimately passed 6-1, with Patton casting the dissenting vote.

Reeves, speaking to council members about the full intent of the ordinance change, said it was to create a safer, more vibrant community.

"I think that's an opportunity for our small businesses and for entrepreneurs to have the opportunity here to be successful," Reeves said.

The ordinance change is not yet final and will go back to the council for a second reading May 11.

News Journal reporter Jim Little contributed to this report.

This article originally appeared on Pensacola News Journal: Pensacola Cask and Flights restaurant saved by new liquor ordnance