September 28, 2013 – An ordinance passed by the Chicago City Council on September 11 will create about a 14-block zone in River North in which no more tavern licenses will be issued for at least a year for sale or consumption of alcohol.

The zone includes both sides of Kinzie, Hubbard, and Illinois Streets from State Street west to Wells Street, both sides of State, Dearborn, Clark, LaSalle, and Wells Streets from the north bank of the Chicago River north to Illinois Street, and a two-block stretch of Franklin Street from Ontario Street north to Huron Street.

The ordinance will not affect restaurants with a “consumption on premises” license.

42nd Ward Alderman Brendan Reilly, who introduced the ordinance on July 24, says the “tavern moratorium” is needed because residents in the area are “adversely affected by the over-concentration” of businesses licensed to sell alcohol. He says in the moratorium zone there are at least 140 liquor licenses, including 18 for bars, lounges, nightclubs, pubs, and taverns that sell and serve alcoholic beverages as their primary business.

“When you have a high concentration of liquor in a very confined space, that can create all sorts of quality of life concerns and frankly pose an undue burden for local police,” said Reilly (left) at an August 28 meeting of the city council’s Committee on License and Consumer Protection.

If a tavern is sold while a moratorium is in effect, it could be a problem for the new owner, as they would have to wait for the moratorium to be lifted in order to operate legally. Tavern licenses cost $4,440 and are renewed every two years.

Another tavern moratorium ordinance – this one at Monroe and Clark Streets near the center of the Loop – is currently held up in the city council’s license and consumer protection committee. According to his office, Reilly has been reluctant to establish moratorium zones in the Loop, calling the Central Business District “the economic engine of the city.”