Jill Schramm/MDN Shauna Downing, president of the Minot Beverage Retailers Association, speaks to the Minot Ad Hoc Liquor Committee Wednesday.

A city committee is recommending Minot remove its cap on the number of retail liquor licenses that can be issued.

An ad hoc liquor committee made the decision Wednesday based on advice obtained during a previous consultation with members of the Minot Beverage Retailers Association.

The city’s challenge has been finding a way to lift the cap without devaluing existing licenses. Because licenses are limited, they hold considerable value when bars and liquor stores are sold.

Minot currently has 28 on-sale or off-sale retail liquor licenses. Existing ordinance limits the number of licenses to one per 1,500 residents, with population determined by the most recent official census. The annual fee for the license is $2,500.

Under the proposed ordinance, the cap would be removed and the fee would be $150,000. Not everyone at Wednesday’s meeting was happy with the fee.

“It’s extremely troubling to see a concept whereby the city endorses and codifies the value of a piece of property,” said Minot resident Josh Wolsky.

He said the city instead should be addressing regulatory policy, citing various establishments that have closed or changed their operations due to alcohol license rules. That has limited diversity and options in the marketplace as well as reduced city tax collections, he said.

Shauna Downing, president of the beverage association, said the $150,000 fee doesn’t obligate a seller to that amount in a transfer sale but it ensures licensees are serious about the business.

“I don’t think it’s really a random number,” said committee member Wayne Whitty, who operates a licensed business. “That number is a realistic number. We feel pretty comfortable with that $150,000 number.”

Whitty added that license holders would be happy to leave the cap in place and not have to set a high fee. However, that may not satisfy others in the community nor put the issue of caps to rest, he said.

On a separate matter, the committee voted to recommend the city adopt a state law that allows bars to be open until 2 a.m. Bars currently must close at 1 a.m. The recommendation also would loosen restrictions on Easter and Thanksgiving sales.

The committee discussed a potential ordinance change to allow alcohol sales in pool halls where minors are present. Committee members will consider a new recreational license requiring separation between drinking and non-drinking areas when they meet again in two weeks.