An overview of businesses in Hopewell Township and Boro with active liquor licenses. Several businesses operate in the immediate vicinity of Pennington boro, which is trying to auction a license this year. (Illustration by Stacey Micallef.)
By Aliza Alperin-Sheriff
Pennington Borough has twice attempted to auction off liquor licenses, but the town remains dry as officials hope a third time’s the charm.
Pennington is entitled to sell one consumption license, which is held by restaurants or bars, and one distribution license, which allows for the operation of a retail liquor store, but the borough has focused on only selling a consumption license.
In 2010, the borough offered the consumption license for a minimum of $350,000, but failed to receive any bids. In fall 2013, council authorized putting up a license with a minimum bid of $225,000, but again there were no takers.
Several liquor license restaurants and retail shops ring the borough, but while the businesses have Pennington addresses, they actually operate in Hopewell Township.
The recent sales price of liquor licenses in the township provide a comparison with Pennington Borough’s asking price, which so far has yet to be determined.
Mizuki Asian Bistro, located in the Hopewell Crossing Shopping Center, is the most recent near-Pennington business to acquire a liquor license. In 2012, both Diamond’s Restaurant, in the Pennington Shopping Center and Osteria Procaccini, located a bit further north off Route 31, acquired licenses.
In an email, township administrator Paul Pogorzelski wrote the township does not keep track of sales information. The recent liquor license acquistions were transfers between private parties, and the township processes the paperwork. Pogorzelski referred sales price inquires to the state Alcoholic Beverage Council. However, multiple representatives from that office also stated they do not have sales price records and referred inquiries back to the township.
Hopewell Township has 11 active liquor licenses and one inactive retail license held by Brick Farm Tavern, which is expected to open this fall. The township is also eligible to issue one distribution license. Township clerk Laurie Gompf said the township has not issued a new license in years, and she did not know when the last license was issued. In Hopewell Borough, Hopewell Valley Bistro and Inn and Hopewell House own liquor licenses.
Diamond’s Restaurant owner Tony Vitella says $350,000 to $400,000 is a rough estimate for how much it costs to acquire a liquor license in Hopewell township. Tony and his brother Joe also own two other restraurants with liquor licenses: Metro North, in Princeton, and Metro Grill, in Ewing. A liquor license transfer this year in Princeton went for $1.5 million, Vitella says, and licenses in West Windsor, with land on both sides of U.S. 1, are even more expensive.
Vitella declined to specify how much the liquor license at Diamond’s cost, but said it did cost significantly more than what Pennington Borough has asked for. The Vitellas previously owned TJ’s, and they repurchased the business, along with the license, in a distress sale. Supply and demand determine sales prices, and Pennington’s size may be a negative factor.
“There’s only so many places in Pennington,” Vitella said. “Where are they going to put it? A place like Avanti’s might be too small.”
The Pennington Borough Council has also placed restrictions on the yet-to-be-issued retail liquor license.
“We don’t want to give it away and we want to make certain it’s the right kind of place,” Council President Joseph Lawver said. “We don’t want just a pure bar. A restaurant that serves liquor will better suit our community.”
The council has defined “the right kind of place” by passing several restrictions that must be complied with by any liquor license bidder, such as the number of parking spaces and how much revenue can come from liquor alone.
Since the Borough has had trouble selling a consumption license in the past, now the next issue is trying to set an sufficiently attractive minimum bid.According to borough administrator Eileen Heinzel, there has been interest in Pennington’s license, though council has not yet determined a mimimum bid.
“The question becomes what do we think is a good number that would entice restaurants to bid. Anything we can get would help us in terms of budget revenue,” Mayor Anthony Persichilli said.
One reason that Pennington has decided to again explore selling a liquor license is the 2014 rezoning of what is called the business overlay a zone, an area along Route 31 from Broemel Place to West Delaware Avenue.
Persichilli is hoping the zone will develop into a thriving commercial area. He says it would be a better place for a restaurant operating a liquor license than the downtown area because it would be easier to meet the restrictions set out by the borough council.
“Near 31 would be an ideal place to do this—not in the center of town because of the schools and churches in town,” Persichilli said.
Pennington Square Shopping Center and another retail strip, anchored by Uncle Ed’s Creamery, operate in the zone. Joe Egitto, the owner of Cugino’s Italian Specialties, confirmed the business will relocate next to Uncle Ed’s. Egitto said he has considered bidding for a Pennington liquor license, but is not pursuing one at this time.
Despite the slow progress, Lawver supports the eventual sale of both licenses. “It’s good business for Pennington,” Lawver said. “There’s not a strong want to hold onto old blue laws that kept us from selling in the past.”
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