South Bend doubling size of riverfront district where businesses can get cheap liquor license

Jordan Smith, South Bend Tribune
·2 min read
A 2018 photo shows the South Bend River Lights display illuminating the churning waters of the St. Joseph River. A new city policy increases the number of businesses that stand to benefit from cheaper liquor licenses offered within a certain distance of the river.
A 2018 photo shows the South Bend River Lights display illuminating the churning waters of the St. Joseph River. A new city policy increases the number of businesses that stand to benefit from cheaper liquor licenses offered within a certain distance of the river.

SOUTH BEND — City officials are doubling the size of districts near the St. Joseph River where businesses that serve food can get cheap licenses to sell beer, wine and hard liquor.

The South Bend Common Council on Monday unanimously approved two related ordinances that will allow restaurants or food-serving establishments within 3,000 feet of the river to acquire a three-way liquor license for only $2,000 a year. Supporters say the significantly discounted license, which costs about $60,000 up front and $1,000 annually elsewhere in South Bend, will help small restaurants to boost sales with cocktails and spirits.

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The program has existed since 2012, after a new state law allowed cities to form riverfront development areas. But only businesses within 1,500 feet of the St. Joseph River have been eligible in South Bend.

The expansion means portions of key corridors on both sides of the river are newly included, such as Mishawaka Avenue, Portage Avenue and Lincoln Way West. The two areas in question are called the West Riverfront District and the East Riverfront District.

A map shows the expanded area on the western side of the St. Joseph River where businesses that serve food will be eligible for cheaper three-way liquor licenses.
A map shows the expanded area on the western side of the St. Joseph River where businesses that serve food will be eligible for cheaper three-way liquor licenses.
A map shows the expanded area on the eastern and southern sides of the St. Joseph River where businesses that serve food will be eligible for cheaper three-way liquor licenses.
A map shows the expanded area on the eastern and southern sides of the St. Joseph River where businesses that serve food will be eligible for cheaper three-way liquor licenses.

Owners of restaurants like L Street Kitchen, Frankie's Tacos and Roselily spoke in support of the bill during Monday night's meeting, saying their struggling profit margins stood to improve thanks to the expansion.

More than 30 restaurants maintain a discounted license through the riverfront districts, according to Willow Wetherall, executive director of Downtown South Bend, the nonprofit that administers the program. Half of the $2,000 for the license goes to DTSB and half goes to the state.

The discount has particularly helped locally owned eateries with smaller budgets, Wetherall said.

"It really has helped reduce the barriers for small businesses to enter the market," Wetherall said during Monday night's council meeting. "One of the things that is of core importance to Downtown South Bend is supporting independently owned restaurants, really creating a unique dining destination."

Bars that don't serve food and liquor stores aren't eligible for the discounted three-way license, according to the updated ordinances. Zoning laws still prohibit commercial uses in residential areas that are now included in riverfront development districts.

The South Bend Redevelopment Commission, which controls tax increment financing revenue districts, must still approve the guidelines governing which businesses are granted cheap licenses. A DTSB committee will ultimately approve licenses based on factors such as cultural value, ownership reputation and location.

Contact South Bend Tribune city reporter Jordan Smith at 574-235-6480 or JTsmith@gannett.com. Follow him on Twitter: @jordantsmith09

This article originally appeared on South Bend Tribune: More South Bend eateries can get cheap liquor licenses as program expands