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City exploring old jail options to secure downtown liquor licenses
The potential sale and/or possible demolition of the old Putnam County Jail might handcuff use of future downtown liquor licenses granted to Greencastle under provisions of a rarely used state law, officials fear.
That law, written in 2005 specifically for the City of Valparaiso, allows liquor licenses to be issued to specialty restaurants located within historic downtown districts that meet certain specific requirements -- namely, a historic district designation, a courthouse, an old opera house and a former jailhouse.
Obviously, all those rare requirements also fit Greencastle, and in January 2015, the City Council approved a resolution by which the city became the second Hoosier site to qualify under the unique piece of Indiana legislation seen as a means of encouraging economic development.
The provision allows the possibility of adding up to 10 liquor licenses for specialty restaurants within the Greencastle historic district, as defined by boundaries listed on the National Register of Historic Places. The proliferation of such businesses is envisioned as making downtown Greencastle a possible dining destination for the area.
In September 2015, Wasser Beer Co. became the first applicant to secure a beverage license through the City of Greencastle Downtown Alcoholic Beverage License Committee for its spot in the old NAPA store at 102 E. Franklin St. And last February, Tap House 24 did likewise for its restaurant/tap room in the old Horace Link store at the southwest corner of Indiana and Walnut streets.
That leaves eight more licenses up for grabs.
But because the old jail is for sale -- listed at $145,000 by RE/Max Cornerstone Realty -- city officials are doing their due diligence is trying to figure out just what the future might hold, not only for the building at the corner of Market and Washington street (a block west of the courthouse square) but also for the liquor licenses attached to it.
Through the Redevelopment Commission, the city has hired Arsee Engineers -- the same folks who assessed the Civil War monument at Forest Hill Cemetery -- to inspect the old jail facility. Arsee officials have apparently made one site inspection, including a look at the roof of the building. No report, however, is yet available.
An interpretation of the statute that allows the extra liquor licenses will also be necessary, officials believe, because the statute specifies that the four special requirements must be in place to allow the extra licenses. In fact, there is no provision, Mayor Bill Dory said, in the statute for how it is affected should the building burn down or fall into significant disrepair.
“If we knew the licenses were protected,” Councilman Dave Murray asked at the recent Redevelopment Commission meeting, “how much do we want to protect that piece of property?”
Murray also wondered if the city might have an opportunity to introduce new legislation to reflect a changing situation without having to buy the property in question.
Regardless, city acquisition would not be a normal real estate transaction, City Attorney Laurie Hardwick noted.
It would require at least two appraisals and the city could not pay more than the average of those appraisals to purchase it.
Noting that the old jail is certainly a contributing building to the historic district, Hardwick said it could conceivably be used for housing and/or commercial property.
Meanwhile, Mayor Dory asked rhetorically, “Would we ever use all 10 (licenses)? I don’t know. We know at least one more is coming.”
It stands to reason, Councilman Murray responded, “we’d have more than just that one.”
“Over time, yes,” the mayor added.