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Drinkers in West Valley City will no longer have to drive miles just to buy beer, wine and spirits, as a new state-owned liquor store has been approved for construction.
The site for the new store — the state's 45th — has yet to be decided, but when it is built, it will be the first liquor store since 2010, when the state-run store in Springville opened.
During the recent legislative session, Utah lawmakers gave the Utah Department of Alcoholic Beverage Control (DABC) $4.4 million to buy land and build the new store, executive director Sal Petilos said Tuesday during the state liquor commission's monthly meeting. In July, when the new fiscal year begins, the Division of Facilities Construction Management (DFCM) will begin the process to choose a site.
Petilos said lawmakers also approved $65,000 for a new package agency in Eden. The state allows these privately run outlets to operate in rural areas where it is not economically feasible to build a larger-state-run store.
While lawmakers gave in some areas, they didn't fulfill all of the DABC's funding requests, including $1.5 million for store operations. The agency received only $1 million, which means "we have some hard choices to make," Petilos told board members. "But I want everyone to be aware, that despite the cuts, stores will remain open and operating hours will not be cut."
The overall DABC budget will increase by about $700,000 in fiscal year 2015-2016, jumping from $42.6 million to 43.3 million. The small increase comes as Utah's alcohol sales are at a record high, growing by more than $20 million over the past year.
During the 2013-2014 fiscal year, which ended June 30, total retail sales were $367.2 million, an increase of nearly 6 percent from the previous 12 months when the state sold $346.8 million in beer, wine and spirits.
Sales figures for the first eight months of the current fiscal year — July 2014 through February 2015 — have increased by $18.6 million or about 7.52 percent, DABC reports show.
Rather than reinvesting in the liquor program, state law requires the DABC to return its profits to the state. Most of the liquor funds go into the general operating fund and sales tax revenues go toward the school lunch and public safety programs. When it wants to build new stores, the DABC must get approval from the state building board and funding from the legislature.
The new West Valley City store doesn't begin to address state needs. According to the U. study, the state needs to build 12 more liquor stores along the Wasatch Front alone in order to keep up with liquor sales and a growing population. West Valley City, the second-largest city in Utah with more than 130,000 people, currently has one state liquor store at 3381 S. Redwood Road.