City Council Debates Restaurant Liquor License Fee and Restrictions, Nears Decision
- Steve Jurrens
- Sep 16
- 2 min read
Northeast Radio SD News - Watertown, SD - During the City Council meeting on Monday, September 15, 2025, the Watertown City Council discussed a proposed ordinance to update the restaurant liquor license. The conversation focused on clarifying how it differs from a full liquor license and determining a suitable fee.
The discussion began with City Manager Alan Stager outlining a draft ordinance containing seven proposed restrictions. These included limiting hours of operation to midnight, explicitly prohibiting video lottery, restricting license transferability, and requiring CPA-certified annual sales reports.
Councilman Jurrens opened the conversation by arguing that a lower license fee would encourage new restaurant businesses, which in turn would generate sales tax and BBB (booze, board, and bed) tax revenue for the city. He advocated for a fee of $25,000, noting that other cities like Sioux Falls and Fargo have a lower barrier to entry.
The council then debated each of the proposed restrictions. While there was broad support for most items, including the midnight closing time and the prohibition on video lotteries, Councilmen Allen, Heuer, and Schutte all expressed concern about the restriction on special event licenses. They argued it could inhibit catering and marketing opportunities for local businesses. The council reached a consensus to remove this restriction from the final ordinance likely.
The conversation then shifted to the license fee. Councilman Jurrens reiterated his support for the $25,000 fee. Councilman Schutte and Councilman Mohrmann voiced concerns about the low price and its potential impact on existing full liquor licenses, but still supported a lower cost than the current one.
Mayor Holien proposed a compromise of $50,000, arguing that this figure, which is half of the previously discussed amount, would both encourage new businesses and protect the investment of current license holders. Councilman Jurrens reasoned that the lower fee would devalue existing licenses, noting that their value is primarily driven by market demand and video lottery.
Ultimately, the council agreed to move forward with the ordinance containing the restrictions they had settled on and to continue the discussion on the final license fee at a later date.
