Frisco voters will have to wait until at least spring to vote on the legal sale of all alcoholic beverages within the city limits.

A petition effort was not submitted to the city in time to make the Nov. 3 ballot, but petition organizers say the vote on alcohol sales will still happen and have set their sights on the May election.

As of noon on Aug. 7, a petition was not submitted to city hall.

Texas Petition Strategies coordinated the effort, which was funded by the newly formed political action committee Frisco Committee for Economic Growth. The committee, which includes Frisco business owners and residents, formed to expand alcohol offerings in Frisco, said John Hatch, partner at Texas Petition Strategies

“It’s not a matter of if we have an election but when,” Hatch said.

As of early August the group gathered more than 11,000 signatures, said Bryan Poff, who owns Texas Alcoholic Beverage Consulting and has provided his services to TPS. At least 9,700 valid signatures are needed to validate the petition.

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TPS has until Aug. 24 to submit the petition in order for it to make the May election.

Since approval in 2002, beer and wine sales for off- and on-premise consumption, as well as sales of mixed beverages at restaurants are allowed through the city’s permitting and zoning process.

The committee wants to expand the 2002 ordinance to include packaged hard liquor sales. Frisco has no liquor stores within its city limits, unlike surrounding cities including Plano, The Colony and Little Elm.

An ordinance such as the one proposed would pave the way for packaged liquor stores, wineries and drive-thrus with ready-made margaritas and daiquiris, City Secretary Jenny Page said.

Some City Council members said packaged liquor stores are not needed in Frisco and would hinder the city’s development as it continues to grow.

Petition effects

Since the petition has not been submitted, the city of Frisco said officials could not comment on what the effects to the city’s permit process would be if a proposed ordinance like this were to pass.

Poff said if the initiative were to pass it would not effect the city’s ability to control where alcohol-related establishments are operated because the city would still be able to utilize specific-use permits. Cities throughout the state use SUPs as a tool for regulating alcohol-related establishments.

According to the Texas Alcohol Beverage Code, the city would have some say in where liquor stores are built. The code gives cities and counties the authority to adopt distance limits to protect schools, hospitals, churches and day cares. State law also allows cities to adopt other rules and regulations regarding alcohol sales.

According to TABC Sec. 109.57, cities have authority to regulate establishments that derive more than 75 percent of their revenue from alcohol.

Community feedback

City Council Member John Keating said while he did hear positive feedback last fall when voters approved allowing restaurants with a mixed beverage permit to sell alcohol until 2 a.m. on any day, he has heard no such feedback for the new petition effort.

He is in opposition to the current petition.

“Last year we had so many people and businesses contact us about how the late-night hour ordinance is a need and for this petition no one has come forward, so I’m not sure where this is coming from,” Keating said.

Keating said packaged liquor stores are not needed in Frisco because there are many stores in bordering cities.

City Council Member Will Sowell, who also opposes the petition, said the market has indicated liquor distributors are not in demand in Frisco.

“Philosophically, I just don’t think we need that type of business in Frisco,” Sowell said.

He also said he has not heard from the development community that the sale of packaged liquor is a need for their businesses.

“There are certainly a fair number of people who believe Frisco should be a family-focused community,” Sowell said. “I just think we’re not quite ready for this; [packaged liquor stores are] not needed in Frisco right now.”

Potential economic effect

FCEG PAC treasurer Jeannean Hefner said changing the law would benefit Frisco’s economic growth.

“We just want everybody to be on the same playing field,” Hefner said. “Frisco already has so much to offer already, and we want it to continue to be that way.”

Based on conversations with residents, Hatch said most people wonder why this measure has not already been passed.

“There are people drinking alcohol in their homes every day,” Hatch said. “They just didn’t buy it in Frisco. Somebody else is getting the tax revenue.”

According to the Texas Alcoholic Beverage Commission, any on-premise establishment, such as a restaurant or bar, by law must purchase alcohol from a licensed distributor in its corresponding county.

“The only ones that can be licensed distributors are liquor stores, and, therefore, because there are none in the city of Frisco, all of the restaurants and clubs in Frisco are purchasing their alcohol from somebody outside of Frisco,” Hatch said.

If the ordinance passes, distributors would be able to open in Frisco and service their customers from a Frisco store, Hatch said.

“A licensed distributor will also provide some property tax revenue, but most importantly create jobs,” Hatch said.

“There are certainly a fair number of people who believe Frisco should be a family-focused community. I just think we’re not quite ready for this; [packaged liquor stores are] not needed in Frisco right now.”

—Will Sowell, Frisco City Council member

According to a 2012 economic impact study by The Perryman Group for the Texas Hospitality Association, for cities with a population of 150,000, which Frisco is just shy of, the potential economic impact from hard liquor sales could be about $43.2 million in annual sales, more than 435 jobs and $964,000 in annual sales tax revenue.

In 2013, Plano voters approved the legal sale of all alcoholic beverages for off-premise consumption within city limits. Since then 31 permits have been issued for packaged liquor stores, Plano Media Relations Director Steve Stoler said.

Plano Budget Director Karen Rhodes-Whitley said since the first packaged liquor store opened in Plano there has been approximately $2 million in additional sales tax receipts.

Historical concerns

TPS has worked with Plano, Denton, Arlington and Rowlett in their alcohol elections, and residents in each community voted to allow all alcohol sales in city limits.  Hatch said TPS saw the same pattern as to why residents would or would not sign the petition.

On average for all of those communtities, about 50 to 60 percent of most communities agreed with all alcohol sales on- and off-premises, Hatch said. Another 20 to 30 percent opposed all alcohol sales for moral or religious reasons, and about 10 to 15 percent were not informed on the subject.

A concern in most communities is a fear that the sale of all alcoholic beverages will increase crime rate, Hatch said.

Since the ordinance passed in Plano there has seen no effect on the crime rate, Stoler said.

Frisco City Attorney Richard Abernathy said according to the latest police report, Frisco Police Chief John Bruce said he did not expect an increase in crime if the petition were to pass.