House Bill could decide fate of Arena liquor license

An amendment to a bill dealing mainly with amusement parks could decide whether or not a new 5,000-seat convention center in south Corbin receives a license to sell alcohol any time in the near future.
House Bill 473 deals largely with amusement rides and attractions. But tucked away in the legislation is an amendment that would allow convention centers located in areas that have repealed Prohibition to any degree, to obtain a liquor license through the state Alcoholic Beverage Control Board (ABC).

Eighty-second District House Representative Charlie Siler (R-Williamsburg) said the amendment was crafted to help expo centers, like the recently opened Southeastern Kentucky Agricultural and Exposition Center in Corbin, have another revenue stream even if they are located in places that aren’t 100 percent “wet.”

“It’s not something that is peculiar to Corbin,” Siler said. He drafted the amendment, with the help of ABC officials. It was originally attached to House Bill 229 by Senate President David Williams, but was moved later to House Bill 473.

It has already been approved by the state Senate. Siler said the House would take up the bill a final time March 26 when the General Assembly goes back in session. He expects passage, but said he is cautiously optimistic.

“It affects similar facilities in places like Owensboro, Prestonsburg and Pikeville,” he said. “All it does is it allows the ABC to grant a license without regard to the 70 percent rule. It would be impossible for a center like this to serve that much food, I think.”

In Corbin, like many towns in the state, voters have accepted referendums where restaurants that seat at least 100 people can serve liquor by the drink. But those same laws also require that 70 percent of gross receipts at restaurants that obtain a license under these rules be in food sales. That’s the rub, Siler contends, for venues like Corbin’s.

“Right now, they can’t grant them a license except like ones they give Applebee’s and any other restaurant,” Siler said. “For facilities like these, I don’t think that is realistic.”

Corbin city leaders hit a stumbling block with the ABC recently when they were told their expo center would not qualify for a liquor license under the current rules. Siler said Corbin City Manager Bill Ed Cannon and other city officials approached him about the problem and asked for a legislative fix. He said he is not concerned potential political backlash to loosening alcohol laws even more in a conservative district.

“I think it is fairly obvious that Corbin is already a wet city. This is just removing a barrier to allow that particular facility to operate more effectively in the city,” Siler said. “To support this particular center, which is a regional center, the amount of help you have to have to operate it makes it necessary to have that type of income … There’s a lot more expense up there than meets the eye to the general public.”

The amendment does contain one caveat – any facility seeking a license under the new rule would have to have been built with at least $10 million in public funds. Siler said that threshold was inserted in the amendment’s language to keep it from being too “wide open.”