Mixed feelings in La Ronge as town considers liquor store permit bid

While the provincial government is leaving the liquor store business, a Saskatchewan town is thinking of getting into it.

The Town of La Ronge announced Wednesday it will set aside $2.5 million to bid on one of the SLGA liquor permits being auctioned off by the Saskatchewan government. A special town meeting is being held Friday about the possibility of allocating that amount in start-up funding to operate a local, municipally owned liquor store.

Karla Hardcastle, vice-president of the Lac La Ronge Chamber of Commerce, said there are “pretty polarized viewpoints” throughout the town.

“I think both are valid, and you can make arguments to the benefit of either one,” Hardcastle said, adding both sides of the debate seem to want the best for the community.

Those in favour see the opportunity for the town to own and run a liquor business as a great chance to bring in money for the town, Hardcastle said, which could then be invested into local infrastructure development.

On the other side of the argument, Hardcastle said those who are opposed see the decision as an “anti-business” move by the local government.

“You’ve got a municipal government who wants to open a for-profit business in direct competition with existing retailers,” Hardcastle said.

She said several local businesses are interested in competing to purchase the liquor licence permit themselves. If the town enters a successful bid, it would mean it is competing with other local businesses, Hardcastle said, and perhaps driving up prices.

Hardcastle said she’s concerned about what the move will communicate to people about the town, specifically that La Ronge isn’t open to businesses and will compete against them. She said that message concerns the Chamber, which wants to see new businesses coming to La Ronge and thriving.

There’s been a lack of community consultation about the “very large decision” the town seems prepared to make, Hardcastle noted, and that’s got her and a number of residents concerned.

Less than 48 hours notice about the special town meeting was given to the community, and requests for delegations to speak at the meeting are denied because of the type of meeting being held, Hardcastle said.

She said the town has made a choice to not hold an open, public forum for the community to have a say on the decision.

While Hardcastle said some might not be opposed to the town owning a liquor store permit, there is great concern in the community over the lack of public consultation by the town, with whatever consultation that may have already happened taking place “behind closed council chamber doors.”

Hardcastle said the business community has not been consulted. No business plan has been presented to the community, nor does the town have any retail experience or experience with liquor sales, Hardcastle added.

“They’re asking taxpayers to take a $2.5-million bet on them,” she said.

With the town discussing such a significant amount of funding, Hardcastle said ratepayers deserve more of a say than what they’ve had, and more information on where the money to make this potential purchase will be coming from.

“There has been no opportunity for the public to weigh in on the merits of this and if this is how they want to invest their property taxes,” Hardcastle said.

Mayor sees profit potential

La Ronge Mayor Joe Hordyski said buying the permit could bring the town a new revenue stream.

“I think just everybody keep their fingers crossed and hopefully we will get it,” Hordyski told larongeNOW. “I think it is worth the effort to pursue. Hopefully we’re successful and I think we can keep those profits local instead of going elsewhere. The people in the community can benefit from those.”

Hordyski also sees the town having more control over hours of operation for the liquor store by purchasing the permit. Local liquor retailers currently follow strict municipal rules in La Ronge that include reduced hours for off-sales and bars and a beer bottle ban.

New hours would be determined by a management board if the permit is purchased, according to Hordyski.

The current SLGA building in La Ronge is not included in the auction, though the mayor said he thinks it would be beneficial for the town to purchase it as well.

“In the short term it would probably be a good idea to consider it, given it would be quick to open and get to business,” he said.

“It is a separate process … No. 1 would be to achieve the licence, and we would be open to looking at it. If we were able to get it at a reasonable price, that would be a bonus.”

Bidding on a number of the province’s SLGA permits for sale closed earlier this week. One permit in Regina went for $1.45 million, while Prince Albert’s closed at $1.4 million. A permit in Saskatoon went for $1.25 million.

The bid for the La Ronge permit closes Thursday.

— With files from larongeNOW’s Derek Cornet