A member is looking for information on lifting a cap on liquor/alcohol licenses. The member has had a cap on liquor license for many years, and their ordinance grants a property right in the license to the licensee. While their issuance fees have always remained the same, the license is transferrable, and over the years the cap has driven up the market value of the license. The cap frustrates local entrepreneurs because it creates a bar to entry into that market. When the member's Council has considered lifting the cap, however, the license holders typically threaten litigation - claiming that lifting the cap will devalue their property interest and create a taking. How have other jurisdictions handled this issue? If you have faced this issue, did you negotiate a settlement with all license holders and/or purchase their interest in the licenses? Or did you just lift the cap and see if any license holders filed suit? (And if you did, how did the lawsuits turn out?) Please respond to me directly at akarras@imla.org<mailto:akarras@imla.org> and I will pass along your responses. Amanda Amanda Kellar Karras Executive Director / General Counsel P: (202) 466-5424 x7116 Email: akarras@imla.org [facebook icon]<https://www.facebook.com/InternationalMunicipalLawyersAssociation/>[twitter icon]<https://twitter.com/imlalegal>[linkedin icon]<https://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [logo]<https://imla.org/> 51 Monroe St. Suite 404 Rockville, MD, 20850 www.imla.org<http://www.imla.org/> Plan Ahead! IMLA's Mid-Year Seminar, April 8-11, 2022 in Washington DC! IMLA's 87th Annual Conference<https://imla.org/annual-conference/>, Oct. 19-23, 2022 in Portland, OR!