Looking for a Liquor License? There May Be a Smarter, More Affordable Way

Looking for a Liquor License? There May Be a Smarter, More Affordable Way
Submitted by: Adkison, Need, Allen & Rentrop
248‑540‑7400
 www.anafirm.com

If you're planning to open or already own a restaurant, bar, entertainment venue, or hotel in a downtown or redevelopment area in Michigan, you might not need to pay the high prices often associated with purchasing a liquor license. 
 
Michigan law (under MCL 436.1521a(1)(b)) offers a lesser known but powerful option: the DDA Liquor License. These licenses are available in certain qualifying areas—like downtown development districts or tax increment financing districts—and they come at a much lower cost than purchasing a license on the open market.
 
Instead of paying tens or even hundreds of thousands of dollars for an escrowed license, Redevelopment Licenses require only a one-time $20,000 fee to the state (or $23,000 if your bar/restaurant will be open on Sundays). They’re designed to encourage economic growth in targeted areas and can be a game-changer for small businesses and startups.
 
To qualify, your business must meet three key requirements:
  • Be located in a qualifying development district, such as a Downtown Development Authority (DDA), Tax Increment Financing Authority (TIFA), Principal Shopping District, or Corridor Improvement Authority.
  • Offer dining, entertainment, or recreation to the public, with seating for at least 25 patrons.
  • Invest at least $75,000 in the building—either through recent renovations or planned improvements.
 
There is a separate process for the City of Detroit under MCL 436.1521a(1)(a), which provides for a similar process with slightly different requirements.  Since the renaissance of Detroit, many restaurants and hotels have been granted what are known as Redevelopment District Area Licenses.
 
This application process can be detailed, tedious, and full of bumps in the road for those going through it the first time. It requires coordination with your local municipality and the Michigan Liquor Control Commission (MLCC).  Further, you, as the business owner must understand the time frame it takes to achieve a liquor license like this.  That’s where we come in.
 
At Adkison, Need, Allen & Rentrop, we’ve helped businesses across Michigan successfully navigate the Redevelopment License process. We know the law, we know the players, and we know how to get results.
 
Let’s find out if your business qualifies—and help you save time, money, and hassle while getting licensed the right way.
 
Call us at 248‑540‑7400
Or visit www.anafirm.com to get started!