Council's Law and Ordinance Committee to Review TREX Liquor Permit Application
What exactly is a TREX Liquor Permit?
On Monday night, City Council’s Law and Ordinance Committee will discuss a TREX liquor permit for a potential new downtown establishment. The meeting will be a part of other committee meetings that will begin at 6:00 p.m. in Council Chambers. The TREX liquor permit process isn’t new to the community, but it is certainly different from the traditional liquor permits that are routinely approved. Today, our publication will go in depth on what exactly a TREX liquor permit is how and they work.
The TREX (Economic Development Transfer) liquor permit application process in Ohio is a mechanism that allows businesses to obtain liquor permits by transferring them from one area of the state to another, bypassing local quota restrictions. In other words, there are no available liquor permits to be granted by the Ohio Division of Liquor Control for the community for certain types of liquor services. However, through the TREX process, an applicant can take a permit from another community in the state and transfer it into the community.
In this case, an applicant is seeking to transfer D-1, D-2, and D-3 liquor permits to ta potential new indoor golf simulator facility and bar in Troy. These permits allow for beer sales on/off premises until 1 a.m., wine and pre-packaged low proof mixed beverage sales on/off premises until 1 a.m., and on-premises consumption of high-proof spirits until 1 a.m., respectively. The TREX application is necessary because Troy has reached its quota for these permit types, meaning no new permits are available within the community.
The TREX process involves several key steps. First, the applicant must acquire a permit from a seller in another part of Ohio where permits are available. Next, the buyer must demonstrate that their project qualifies as an economic development initiative. The applicant has provided information to support their case, including a total investment of $750,000, the creation of 4+ new jobs, and a projected annual revenue of $350,000.
Local approval is a critical aspect of the TREX process. The municipality where the permit will be transferred must endorse the transfer in writing. In this case, the City of Troy must approve the application. Through this process, the City’s Law and Ordinance Committee will make a recommendation to the City Council to approve the application at council’s next meeting.
Once completed, the application is submitted to the Ohio Division of Liquor Control for review and approval. If approved, the superintendent of liquor control will allow the transfer to proceed.
The TREX process serves several important functions in Ohio's liquor licensing system. It encourages business growth and investment in areas where liquor permits are scarce, allows for a more flexible distribution of permits across the state, maintains a degree of local control through the required municipal approval, and provides a pathway for potential establishments to obtain necessary permits in saturated markets.
As the application moves through the approval process, it will be up to the Troy City Council to weigh the potential benefits against any concerns, ensuring that the transfer aligns with the best interests of the community.
You can review the entire staff report to the Law and Ordinance Committee and the TREX Application in the file below:
What Do You Think?
What are your thoughts about TREX permits in our community? Our paid subscribers are more than welcome to leave their ideas and insights in the comment thread!
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I like the Trex method.