Paterson has too many liquor licenses, report says

PATERSON – The city has 198 bars, liquor stores and other businesses that sell alcohol, which is almost three times more than the number set by state guidelines, according to a report compiled by the Paterson Coalition Against Substance Abuse.

Guidelines established by the New Jersey Division of Alcoholic Beverage Control (ABC) normally would limit the number of liquor licenses for bars and restaurants in Paterson to 49 and for liquor stores and bodegas in the city to 19, according to the coalition. Those limits are based on the city’s population figures, according to the coalition.

Representatives from Montclair State University, which is working in partnership with the anti-substance abuse coalition, presented the findings of their report to the Paterson City Council on Tuesday night.

The coalition did not explain why Paterson exceeds the state guidelines on liquor licenses. The state ABC division’s handbook says the agency permits municipalities to have more liquor licenses than stipulated in the limits because some licenses were in use prior to the creation of the state regulations.

During Tuesday’s discussion, the coalition representations showed the council a map indicating that areas of Paterson with large numbers of liquor licenses also have high crime.

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Councilman Alex Mendez said the city should talk to the state about the number of liquor licenses. Mendez said the city government does not have full control over its businesses that sell alcohol.

Councilwoman Ruby Cotton said she thought many of the licenses were granted decades ago. In recent years, Cotton said, Paterson has been retiring an increasing number of liquor licenses as establishments went out of business.

Robert Reid, a Montclair State professor who serves as director of the Paterson substance abuse coalition, said the city ought to consider updating some of its laws on liquor licenses. For example, Reid pointed out that Paterson’s current ordinance allows as many as 300 liquor licenses to be in operation in the city.

As part of their presentation, the coalition members said Paterson’s local ABC board had imposed $401,045 in fines against liquor businesses between 2010 and 2013. That included $200,000 for “illegal activities” on their premises and $80,000 for selling alcohol to minors, the coalition’s report said.

One Paterson business had received 18 violations over a five-year period, resulting in $141,400 in fines, the report said. The coalition member who did the research for the report said he did not have the information available on the name of the business. He referred the question to the city’s ABC office.

A staff member at Paterson’s ABC board said on Wednesday that she could not identify a business based on the amount of fines imposed against it. The employee said the city could not reveal how much in fines had been imposed against specific businesses.

On Tuesday night, City Council President William McKoy said the governing body would hold a follow-up meeting about the report to discuss possible actions that could be taken in response to its findings.