By Charley Falkenburg, Staff Writer
MONTGOMERY The township came back empty-handed after putting one of its last liquor licenses out to bid last year in hopes of making a little extra money.
For the first time in four years, the town put one of its two available liquor licenses up for grabs last December after two interested businesses contacted the township. However, neither party could afford the $500,000 minimum asking price and the opportunity fell flat.
Township Administrator Donato Nieman said this particular outcome wasn’t unusual for Montgomery.
”Liquor licenses are very costly and many investors just can’t come up with that kind of cash,” he said. “They are very valuable because they are finite.”
In New Jersey, there is a limit on the number of liquor licenses a town can issue, which is based on population from the most recent federal census. For every 3,000 residents, a town can issue a license for on-site consumption places, such as bars or restaurants. For every 7,500 residents, a license can be given for off-premise businesses such as liquor stores.
According to the 2010 census, Montgomery’s population is 22,254. There are currently two liquor stores and five restaurants with liquor licenses: Steele’s Wine Cellar, Montgomery Discount Wine Market, Tiger’s Tale and Tusk. The last three licenses the township sold went to Madison Marquette for the long awaited Montgomery Promenade, which are slated for restaurants. One was sold in 2007 for $750,000 and the other two were issued a year later at $500,000 a piece.
Since then, the township has been saving its last two liquor licenses, which are both only for restaurants or bars until now.
”The Township Committee felt the demand wasn’t there before,” said Mr. Nieman. “But now it felt the time was appropriate with some of the shopping center upgrades and properties for construction.”
Another reason the township has been preserving the licenses is because they are one-time revenues, which is also why it did not make both of its licenses available in its recent endeavor. Once sold, they are gone forever because businesses are then free to resell it to someone else. Municipalities can only attain another liquor license if there is enough population growth in time for the next census.
”We wanted to save one for the future and not get rid of them all you don’t get anymore once the population stabilizes,” said Mr. Nieman.
Township Clerk Donna Kukla said Montgomery is a couple hundred residents away from getting an eighth license for a liquor store and a few thousand away for another bar or restaurant.
”But we’ll never see that,” said Ms. Kukla, referring to a future restaurant or bar.
Municipalities profit most from the initial price, which can go upwards to more than $1 million. After that, towns only make money off the annual license renewal fees businesses have to pay to the town as well as the state.
Annually, Montgomery brings in $17,500 from its bars, restaurants and liquor stores in renewal fees. It also gets $752 a year from its four clubs that serve alcohol: Princeton Elks Lodge, Beaden’s Brook Country Club, Cherry Valley Country Club and the Nassau Racket Club. Clubs that serve alcohol follow different rules and regulations because they only serve members alcohol on the premises.
Montgomery also has Ya Ya Noodles, a BYOB Chinese restaurant. Because it’s a BYOB, it is not required to purchase a liquor license and can only allow customers to bring beer, wine, or other alcohol that does not include a distilled spirit.
For Cory Wingerter, co-owner of the Tiger’s Tale, the responsibility and expenses are worth being able to sell alcohol to his patrons.
”My partner (Adrian Stevens) and I love the business and find it challenging, but if you love what you do, you won’t work a day in your life,” he said. “Montgomery is great place to have a business.”
Despite serving loyal customers for 28 years, Mr. Wingerter did say new businesses in town that can serve alcohol made him nervous about the competition particularly the future ones in the upcoming 300-acre Montgomery Promenade. Although they only have three licenses, more than three retailers might be serving alcohol. According to state law, if a license holder has two to three franchises on the same property, just one license can cover all of those restaurants.
”We view any new restaurant in the area as a threat,” said Mr. Wingerter. “You’re only as good as your last meal that is the standard our customers hold us to.”
However, Mr. Wingerter might be seeing even more competition if the Township Committee opts to go out to bid again. To date, the committee is still deciding whether to try again and if it should lower or raise the minimum asking price.
”We will reassess the details and move forward when the time is right,” said Mayor Ed Trzaska. “We are working with a few owners on redevelopment plans for their sites, which hopefully include a new restaurant or two.”

