Licensed Restaurants

Council would like to thank everyone for their participation in this engagement. We value your input and hope you will take the time to participate again in future discussions.

• Raymond's Identity as a "Dry" Community

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  Introduction: Raymond's Identity

  Since its founding, Raymond has been a "dry" community and many Town residents take pride in the fact that more than a century later, Raymond remains a predominantly "dry" community. While many residents consume alcohol in the privacy of their own homes and while special event licenses are frequently obtained to permit the sale and consumption of alcohol at private events, the Town maintains an absolute ban on alcohol sales to the public. Accordingly, like Council itself, many Town residents will no doubt have concerns over the extent to which amending the Town's Land Use Bylaw to permit "Class A - Minors Allowed" liquor licenses might affect Raymond's long-standing identity as a "dry" Town. So here are the facts.

  
  

  Activities Permitted Under a "Class A - Minors Allowed" Liquor License

  1. A "Class A - Minors Allowed" liquor license may be issued for the sale and consumption of liquor on licensed premises that serve the general public where food is the primary source of business. The licensed premises must be located in a permanent facility and contain equipment to support the primary business of food service. Food service must be available during all hours of liquor service.

  2. Sealed liquor may also be sold for consumption off the licensed premises. If liquor is sold for off-premises consumption, the liquor must be in a sealed, commercial container. In the case of draught beer, the cap design of the container (e.g. growlers or crowlers) should demonstrate that the container has not been opened during transportation.

  3. A "Class A - Minors Allowed" licensee may deliver liquor provided that:

  a) the liquor is only delivered to locations within Alberta where liquor possession and consumption is legal (i.e. a private residence);

  b) the liquor is not being delivered to a minor or an intoxicated person;

  c) the delivery person is at least 18 years of age and is either the licensee or staff of the licensee; and

  d) the delivery person checks the photo identification of individuals who appear to be under the age of 25.

  
  

  "Discretionary Use - Municipal Planning Commission"

  1. In the event that Council decides to amend the Town's Land Use Bylaw to permit full-service restaurants to apply for "Class A - Minors Allowed" liquor licenses, development permits for licensed restaurants will be listed in the Land Use Bylaw under "Discretionary Use - Municipal Planning Commission."

  2. What this means is that upon receipt of a completed application for a development permit from a prospective licensed restaurant owner, the Development Officer will refer the application to the Town's Municipal Planning Commission for a decision.

  3. This Commission will then consider the application and either approve (with or without conditions) or reject the application (stating reasons) depending on the concerns/views of adjacent landowners and the concerns/views of other persons likely to be affected by the existence of such a restaurant.

  4. Licensed restaurants, then, will be permitted to set up shop in Raymond - but only at the discretion of the Town's Municipal Planning Commission.

  
  

  The Legal Reality of "Discharging" Restrictive Covenants

  1. With the exception of certain properties like Hell's Creek Golf Course and portions of Victoria Sports Park, many parcels of land in the Town continue to be controlled/governed by what are called "restrictive covenants." In fact, many of the parcels of land surrounding the Town continue to be controlled/governed by restrictive covenants, as well.

  2. These restrictive covenants date back to the late 1800s and early 1900s when the region was settled by LDS pioneers, and when the townsite of Raymond was purchased from the Canadian Northwest Irrigation Company in 1903.

  3. These restrictive covenants prohibit "intoxicating liquors" from being "sold, traded, or bartered, whether by license or otherwise," on the parcels of land they control/govern. This means that on many properties in the Town, "intoxicating liquors" simply cannot be "sold, traded, or bartered, whether by license or otherwise," regardless of whether they have been zoned, as per the Town's Land Use Bylaw, for commercial use.

  4. These restrictive covenants can be discharged (annulled), but only if:

  a) all current property owners that are party to them unanimously agree to discharge them; or

  b) a property owner brings an application to a court of law and can demonstrate that the Town "has changed significantly since the imposition of the covenant in such a way that its original purpose was defeated."

  5. While amending the Town's Land Use Bylaw to permit licensed restaurants will make it easier to demonstrate, in a court of law, that the Town has "changed significantly", amending the Town's Land Use Bylaw to permit licensed restaurants will not automatically discharge these restrictive covenants.

  6. Until such time as a property owner brings an application to a court of law to demonstrate that the Town has "changed significantly", these restrictive covenants will remain in effect and will serve as an additional legal hurdle for prospective full-service restaurant owners to overcome should they wish to open a full-service restaurant on a parcel of land that remains governed/controlled by a covenant.

  
  

  The Political Reality of Further Amending The Town's Land Use Bylaw

  1. Only Council can amend the Town's Land Use Bylaw.

  2. If a resident or interested party wants Council to amend the Town's Land Use Bylaw to permit applications for other types of liquor licenses (i.e. in addition to "Class A - Minors Allowed" licenses), this resident or party would need to initiate an administrative and political process whereby:

  a) an application to amend the Town's Land Use Bylaw is submitted to the Town;

  b) Council conducts and passes a first reading of an "amending bylaw";

  c) a public hearing is subsequently scheduled and held so that members of the community can weigh in on the matter (i. e. have their voices heard);

  d) Council conducts and passes a second reading of the "amending bylaw"; and

  e) Council conducts and passes a third and final reading of the "amending bylaw".

  3. Until such time as the Town receives an application to initiate this process, Council will not consider amending the Town's Land Use Bylaw to permit other types of liquor licenses in Raymond.

  4. Even in the event that the Town receives an application to initiate this process, there is no guarantee that an "amending bylaw" will pass a first, let alone a second or third, reading.

  
  

  Conclusion: From "Dry" to "Damp"

  In the event that Council decides to amend the Town's Land Use Bylaw to permit "Class A - Minors Allowed" liquor licenses, pre-existing restrictive covenants, combined with a provision in the Town's Land Use Bylaw that not only lists "Licensed Restaurants" under "Discretionary Use - Municipal Planning Commission," but also, that explicitly prohibits all other uses of liquor in the Town, would continue to serve as powerful instruments to keep the Town a predominantly "dry" community. In other words, except for allowing full-service restaurants to sell and serve alcohol to their patrons, the Town's Land Use Bylaw would continue to prohibit bars, nightclubs, taverns, and microbreweries from setting up shop. It would also continue to prohibit alcohol from being sold at recreational facilities like VSP or the Ice Arena. As a result, while the Town would become less, strictly speaking, "dry", it would not suddenly become "wet". Rather, it would go from being "dry" to being slightly less "dry" or "damp" - and therefore more inclusive. It would, in short, go from being "dry" to being a more hospitable environment for full-service restaurants - but ONLY full-service restaurants - to operate in.

• Licensed Restaurants in Raymond

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  Introduction: Growing the Local Economy

  In 2019, the Town of Raymond adopted an economic development strategy that aims to expand, among other things, the number and types of restaurants in the community. The idea is that by doing so, Town residents will not only be able to enjoy a casual or fine dining experience in their own backyard, but also, will be encouraged to spend more of their disposable income in Raymond, in support of the local economy and local jobs, rather than in neighboring Lethbridge.

  To advance this strategy, Town Council is considering adjusting the Town’s alcohol policy so that both current and future full-service restaurants can become a vibrant part of the Town’s commercial sector. More specifically, Council is considering amending Bylaw No. 987-11, theTown's Land Use Bylaw, to permit full-service restaurants to apply for and obtain "Class A - Minors Allowed" liquor licenses (licenses for establishments where "food is the primary source of business").

  
  

  The Economic Realities of Full-Service Restaurants in Alberta

  Full-service restaurants in Alberta operate on razor-thin profit margins. As the most recent data available from Statistics Canada shows, from 2013 to 2019 average operating profit margins at full-service restaurants in Alberta hovered around 4 percent:

  

  Source: Statistics Canada. Table 21-10-0171-01 Food services and drinking places, summary statistics.

  This means that for every dollar that full-service restaurants spend in Alberta, they on average make 4 cents in profit. That research has found that roughly 60 percent of full-service restaurants fail in the first three years of operation should therefore come as no surprise.

  To maintain these razor-thin profit margins, full-service restaurants in Alberta have therefore come to heavily rely on selling alcoholic beverages to their patrons. Again, as the most recent data available from Statistics Canada shows, from 2013 to 2019 “sales of alcoholic beverages for immediate consumption on the premises” at full-service restaurants in Alberta accounted for, on average, 23 percent of total sales:

  

  Source: Statistics Canada. Table 21-10-0213-01 Food services and drinking places, distribution of total sales

  For the vast majority of full-service restaurants in Alberta, therefore, nearly one-quarter (1/4) of their gross revenue comes from the sale of alcohol. This helps to explain why the Government of Alberta amended the Gaming, Liquor and Cannabis Act (GLCA) to permit full-service restaurants to sell alcoholic beverages with take-out and delivery during the pandemic: by implementing health restrictions that prohibited in-person dining, the Government of Alberta in effect implemented a policy that, overnight, eliminated approximately 23 percent of total sales at full-service restaurants across the province.

  
  

  Conclusion: Spurring Commercial Growth in Raymond

  The key to expanding the number of full-service restaurants in Raymond, then, is creating a more hospitable environment for them to operate in – which is precisely why the Government of Alberta amended the GLCA during the pandemic, and why Council is considering amending the Town's Land Use Bylaw in the first place.

  Except for special event licenses for private events on parcels of land that have no restrictive covenants, the Town maintains an absolute ban on alcohol sales to the public. Raymond therefore remains a predominantly "dry" community. Yet, if Raymond remains a predominantly "dry" community the likelihood of attracting family-oriented full-service restaurants (e.g. Boston Pizza, Moxie's, or Smitty's) will remain much lower given the importance of alcohol sales to their bottom lines.

  Until the Town's Land Use Bylaw is amended to permit full-service restaurants to apply for "Class A - Minors Allowed" liquor licenses, future full-service restaurants are likely to remain few and far between, current full-service restaurants are likely to struggle, and Town residents are likely to continue spending a substantial portion of their disposable income in neighboring Lethbridge rather than in support of the local economy.