Bar owner’s $50,000 alcohol licence revoked

A bar owner who bought an alcohol licence for US$50,000 has had his permit revoked after failing to open within 60 days of purchase as required by state law.

A bar owner has had his US$50,000 alcohol licence revoked as he failed to open within the required 60-day period

Rheda Fouad bought the alcohol licence a few months ago but the permit was withdrawn on Tuesday by the state liquor commission because his Sugar House bar, The Ruin, was not up and running within the 60-day time frame.

The state law allowing business owners in Utah, US, to buy and sell state alcohol licences without the need to apply to the Department of Alcoholic Beverage Control (DABC) was introduced in July 2014.

Ordinarily, businesses looking to acquire an alcohol licence must apply with the DABC and wait – sometimes for a year or more – until one becomes available either through an increase in population or the closure of another bar.

Licences have been known to sell for anywhere from US$30,000 to US$100,000 and at present there are 12 businesses on the waiting list for a club licence.

Fouad told the DABC he was unable to open the bar because planning and building permit delays, as well as set backs with getting a lease with the developer, took longer than anticipated.

However, after a month-long extension period was granted the DABC voted 6-1 to withdraw the licence and give it to another business on the waiting list.

Chairman John Nielsen said if Fouad’s bar is in compliance by the DABC’s next meeting in September, then the bar could be considered for a licence but there could be no guarantees.

After the meeting, Nielsen told The Salt Lake Tribune: “We’ve had time to see how the law operates and see the problems. There are some issues to look at.”