This is an archived article that was published on sltrib.com in 2015, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
The owner of The Ruin, a new Sugar House bar, thanked the liquor gods on Tuesday, after the state returned a previously-revoked club license purchased for $50,000.
In August, the seven-member liquor commission from the Utah Department of Alcoholic Beverage Control (DABC) was forced to take Rheda Fouad's club license because his business was not ready to open within the 60 days required by state law. Fouad had legitimate reasons for the delays which included snags with the developer and wait times for planning and building permits.
However, once a liquor license purchase is final, state law requires new business to be operational within 30 days. And the liquor board already had granted a one-time 30-day extension allowed by the law.
But as of Tuesday, The Ruin is ready to open, said Fouad. "We weren't able to open within 60 days, but we have been working around the clock to fix that."
Upon hearing the details, the board granted Foaud the only club license available this month, even though 12 other businesses have waited longer.
"If we could have given them another extension (last month) we would have. But we couldn't do it because of the statute," said board member Kathleen Collinwood. "They've put a lot of money and time into the project and under those circumstances it seem equitable to offer them the license."
Typically, businesses that want a club license must apply with the DABC and then wait until one becomes available through an increase in population or another bar closure. Currently, 12 businesses are waiting for a club license from the state; one business has been on the list for two years.
Buying a club license from another license holder can help a business avoid the wait, but can be costly. Since the law took effect in July 2014, more than a dozen licenses have been sold for anywhere from $30,000 to more than $100,000, business owners have told The Salt Lake Tribune.
Among other benefits, a club license allows a business to sell liquor without food. It also means they can avoid building a 7-foot barrier, dubbed a "Zion Curtain," that keeps minors from seeing the mixing and pouring of alcoholic drinks.
Despite the problems he has faced, Fouad still had positive things to say about the new law. "Being able to transfer licenses," he said, "is a huge opportunity."