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Title: 'Our hands are tied': 7 local bars, retailers unable to buy more alcohol

Article Date: 7/14/2011
Source: St. Cloud Times
Author: Nathan Hansen

Text:

Some Winona-area bars and liquor stores have begun drying up in the latest impact of the state government shutdown.

Hy-Vee is one of at least seven local businesses whose buyer's card - which bars and liquor retailers need to purchase alcohol for resale - has expired and cannot be renewed as result of the shutdown. That number will grow as the shutdown continues.

What's most frustrating for some owners is that they attempted to renew the cards on time.

According to store owner Jeremy Gosch, Hy-Vee is one of at least 500 establishments statewide that sent renewal payment on time, but whose payments were not processed.

Gosch said Hy-Vee's payment to the state arrived June 27 - four days before the shutdown.

When it appeared it might not get processed on time, Gosch said, the store hand-carried a payment to the state, and then airmailed a third payment soon after.

Without the card, Hy-Vee can't purchase any more alcohol. The results could be harmful, if not disastrous, depending on the length of the shutdown.

Gosch estimates Hy-Vee will be able to sell existing inventory for months. But beer sells quickly, and requires frequent shipments from distributors.

The Winona Area Veterans Center can't purchase more alcohol because of a typo.

Post Commander Sam Sasser said the center sent in the renewal payment at the end of April - more than two months early.

When the card came in the mail in early May, it had the wrong expiration date printed on it. Sasser said he sent the card back for corrections the first weekend in May.

It never came back.

"We did everything right and even did it early, but now we can't purchase any beer or liquor for resale," he said.

The center hasn't run out of any products yet, but they are predicting that by the middle of next week they will have run out of beer, with hard liquor lasting for a month.

"We are hoping people will still come in and support us by buying pop or mixed drinks," Sasser said.

Maybe the worst part of all is that the buyer's card renewal fee is only $20.

"All these lost sales for $20?" Gosch said.

Not everyone in the area is hurting yet.

Discount Liquor, on U.S. Hwy. 61, ordered a month's supply of product before their license expired, and haven't yet run out of anything.

"I called up all my reps on the 30th and told them to give me all you can," said Donna Konkel, the store's owner.

The issue of the buyer's cards went Tuesday to the shutdown's court-appointed special master - who makes recommendations on what can continue to run during the shutdown - but a ruling has not been issued.

"We have looked at alternatives, but there are no legal ones," Sasser said. "Our hands are tied."

Darrell Ehrlick contributed to this report.

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Subjects
Governing/Government-State - Shutdown
Liquor Industry & Laws - State Policy