Paying a high price for liquor
BY FRANK MORTIMER SUN CHRONICLE STAFF
Thursday, March 13, 2008 1:17 AM EDT
FOXBORO - Tenants at Patriot Place apparently are being charged a $125,000 premium on liquor licenses that the town issues for just over $7,000 - with the huge markup being misrepresented as a town fee, according to town officials who have alerted the state Alcoholic Beverage Control Commission.
The selectmen's office learned of a $125,000 fee the Kraft Group is charging liquor license holders at Patriot Place through a confidential lease document supplied to the town by a prospective tenant of the Route 1 mall who called town hall for clarification.
"The town doesn't charge that amount of money for a liquor license fee," Town Manager Andrew Gala said Wednesday. "She was clearly puzzled and frustrated."
Selectmen Tuesday night confronted John Twohig, attorney for NPP Development, the Kraft entity developing Patriot Place, with a one-page document which, according to Gala, resembles a town-issued document - but isn't.
Twohig said he believed the item to be a lease document and that the $125,000 fee was associated with payment for common areas of the mall. At the request of Selectmen Chairman James Thrasher, who raised the issue, Twohig said he would provide the board with a fuller explanation.
"It bothers me because at the top of the page it says the 'Town of Foxboro' - and anyone picking up the form would think the Town of Foxboro is issuing those guidelines," Gala said.
The form outlines the steps to be taken to obtain one of the 12 liquor licenses the Legislature has approved for use at Patriot Place.
"Within 10 days of issuance of the license, Applicant shall pay Developer $125,000 to cover the original license fee and costs incurred for license availability (license not otherwise available in Foxborough)," the last paragraph states.
The fee mystery surfaced during the board's public hearing on an application by Quincy Amusements for a new all-alcohol restaurant license. The license, which selectmen granted on a 5-0 vote, is for the Showcase Cinema De Lux at Patriot Place.
The town owns the 12 new liquor licenses to be used at Patriot Place, Gala said.
He said the town charges $5,000 for each license. There is also an annual renewal fee of $2,350, plus $200 payable to the ABCC and $50 to the town for the cost of advertising the public hearing.
"This is a blatant misrepresentation of the town of Foxboro," advisory committee Chairwoman Lorraine Brue said. "I just think it needs to be investigated from the standpoint of legal action on behalf of the town. I think it's outrageous. Basically, they are making money on our licenses."
Kraft Group spokesman Stacey James said the document discussed by selectmen Tuesday night is the cover sheet to a leasing package that NPP Development sends out to prospective tenants at Patriot Place.
He said if that cover page gives the impression that the town is requiring the $125,000 fee, that impression is dispelled by the contents of the lease packet.
"As you recall, the town and NPP entered into a substantial mitigation agreement," James said in a statement. "Many of those costs were driven by the concerns for liquor licenses. In certain instances, we assessed those costs back to tenants of Patriot Place, especially tenants who have restaurants with liquor licenses. When the tenants leave Patriot Place, they recover their cost assessment related to the liquor license, NPP does not."
James said those fees "are complex and uniquely different and details of any of them would be confidential."
The cover sheet refers questions to NPP, not to the town.
"If that cover sheet misrepresented the Town of Foxboro, it will be corrected and clearly emphasized going forward," James said.
Gala said the Alcoholic Beverages Control Commission has been made aware of the matter.
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