Aug. 24, 2023

By Joe Sneve, The Dakota Scout

A newly created distribution system for new liquor licenses in Sioux Falls will net city government more than $1 million more than what they would have gone for otherwise.

On Thursday, the Sioux Falls Finance Department and the city attorney’s licensing office opened more than three dozen sealed bids submitted by 19 companies for 17 new on- and off-sale booze licenses. The city is eligible for those permits because of population growth.

And though the minimum price for the on-sale licenses bars and restaurants need to serve hard alcohol is $240,000, the city will sell all seven of those newly available licenses for no less than $350,000.

The highest bid opened was $400,111.11, submitted by Birgers By U LLC, an entity registered to David Birger, the owner of Credo’s Pub who is opening another bar nearby.

Other top bids were $365,000 by Boss LLC, $360,000 by KHP Sioux Falls LLC, and $350,000 by Commonwealth Gaming, Trifecta Holdings, BT Investments LLC and MG Oil Co.

The top bids for 10 new package liquor licenses ranged from $17,000 to $100,000. MG Oil submitted the top four bids — one at $100,000, one at $80,000 and two at $75,000.

Casey’s Retail Co. and 7 Horses LLC got the other six.

The baseline for those off-sale liquor licenses had been $500.

Thursday’s bid-opening proceeding held at City Hall is the first time the city has used a sealed bid process since city councilors adopted the policy change in June. Before that, the city was issuing licenses on a first-come, first-served basis after ditching a waiting list in late 2019.

In all, 44 bids were received.

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