The city of Sioux Falls is changing the way it gives out liquor licenses.
City attorney Dave Pfeifle said the city is switching to a sealed bid system. Applicants will submit bids, and licenses are awarded to the highest bidders.
This replaces the city’s old lottery system.
“The sealed bid process puts the power back into the hands of the bidder instead of relying on a lottery system of chance,” Pfeifle said in a press release issued Wednesday. “This system allows everyone an opportunity to bid and best determines the true value of the liquor licenses, which are assets to the city.”
Ten off-sale liquor licenses and seven on-sale liquor licenses will be available for bid beginning Monday, Aug. 7. Bidding closes Aug. 23, and the bids will be opened the following day.
There is a $100 application fee for both off- and on-sale liquor licenses. Off-sale licenses refers to establishments where alcoholic beverages are purchased and consumed off the premises, like liquor stores and gas stations. On-sale licenses refer to places where alcohol is consumed, like bars and restaurants.
The minimum bid for the off-sale license is $500. The minimum bid for the on-sale liquor license is $240,646, which city officials said meets the state-determined minimum.