West Windsor adopts hotel-motel liquor license rules

Bidding for licenses will only be required for new establishments.

By: Emily Craighead
   WEST WINDSOR — The Township Council voted 4-0 Monday night to approve a hotel/motel liquor license ordinance that will apply only to new applicants.
   New hotels and motels with 100 rooms will bid publicly for a liquor license, while those with pre-existing liquor licenses will continue to pay the $2,400 annual registration fee.
   Mayor Shing-Fu Hsueh proposed an updated ordinance in October after the state Division of Alcoholic Beverage Control issued a ruling over the summer allowing municipalities to auction hotel and motel liquor licenses.
   Under state law, the number of liquor licenses available to a community is based on population, with exceptions for hotels or motels with more than 100 rooms.
   Councilman Charles Morgan, who was absent from the meeting, said in a phone interview Tuesday he would have voted against the ordinance, arguing that it discriminates against new hotels.
   "While I’d love to have the tax revenue, sometimes there comes a point when it’s just not right," Mr. Morgan said.
   Councilwoman Jacqueline Alberts voted for the measure, but expressed reservations as she spoke on behalf of Mr. Morgan.
   "We have a tension between the desire to maximize township revenue and, on the other hand, a desire to level the playing field for entrants onto the West Windsor market for hotels," she said. "Myself, from the standpoint of the taxpayer — even though we would have liked the whole loaf, we’ll take half."
   Ms. Alberts was one of three council members who voted for the original ordinance, which would have required all hotels, including those already holding licenses, to enter into a bidding process to receive a liquor license.
   Councilwoman Kristin Appelget said questions of fairness and tax revenue were secondary issues.
   "As one of two who maintained their position, I never looked at it as whole loaf or half loaf, or what would bring the maximum tax benefit to the township," she said. "I looked at what was legal under state law, and I will vote for it tonight, because what we have in front of us is consistent with state law."
   Mayor Hsueh’s original proposed ordinance required new hotels, but not holders of existing hotel/motel liquor licenses, to bid publicly for a liquor license. He estimated the township could receive as much as $900,000 in new revenue from new hotels interested in the licenses.
   The Township Council amended the ordinance to include existing hotels and motels, which would have required the Hyatt Regency Princeton and Palmer Inn, license holders for more than 17 years, to bid to retain their licenses. Mayor Hsueh vetoed that ordinance, citing unfair business practices and possible legal challenges.