Wines and More Pledge of License Denied

Rhode Island-based cannot use its liquor license as collateral for a loan, after a two hour discussion and a 2-3 negative vote by selectmen Wednesday.

The store, occupying the 17,000 square foot space of former tenant Linens and Things in the shopping center on School Street, has been open only a year. Attorney Ed Valanzola told the board last week the owner, Glenn Thompson, used $1.5 million of his own money to get the business underway, and now wants to expand by borrowing money from Citizen's Bank, even though the business is thriving.

The "pledge of license" Thompson was seeking uses the coveted all-alcohol license as collateral. Valanzola had told the board the pledge of license had been granted to Mansfield establishments before, and the request was a common practice, but the board questioned that assertion, and had asked him to research it and come back with facts and dates.

He did, saying two pledges had been granted in recent history, to the on North Main Street in 2001, and to the in 2008.

Valanzola added the Massachusetts General Laws say that any liquor license can be pledged, and said he had talked to the general counsel of the state Alcohol and Beverages Control Commission, who said liquor licenses are routinely pledged.

"It should be abundantly clear that you have that authority, and that you have executed that authority before," Valanzola said.

He said a conversation with a senior investigator at the ABCC revealed she receives "calls from his competitors all the time."

"I understand the competitors are still angry about what happened last year," Valanzola said.

Small liquor store owners and residents lined up to oppose the granting of the license last summer, and at one point presented a petition signed by about 500 people objecting to the big box retailer and the license transfer from another establishment, on Route 106. Some of the same store owners and managers were in the audience both last week and at the continuation this week, and several spoke during the comment period.

"You can deny this - but it's a shame," said Valanzola. "We'll appeal it. Because competitors stir things up, we go through this every time we come before the Board of Selectmen."

Board member Kevin Moran said he had not approved of the transfer last summer, but could not find a legal way to deny it, and added he had reservations about the use of the School Street property for a shopping center in the first place as well. "But it's here," he said.

He said he understood the board still has the final say over the operation of the business or its transfer to another owner. "The ABCC says any change in operations has to come before us. I can't see grounds for refusing," he said.

Olivier Kozlowski asked a number of questions about whether or not Thompson could draw on the credit line to pay his monthly franchise fee, but in the end voted with Moran to grant the pledge.

The three other board members - Chairman Jess Aptowitz and members George Dentino and Doug Annino - all had continuing reservations.

"I'm not entirely comfortable with the pledge of license," said Annino. "I recognize a case has been made, but I'm still not convinced it's necessary."

Aptowitz said he thought there were too many questions, and too much uncertainty about the wisdom of offering up the license as part of the loan agreement.

George Dentino said his greatest reservation was "giving something across state lines."

"It has nothing to do with you," he told Thompson. "It has something to do with me watching that thing floating around."

Dentino, Annino, and Aptowitz voted against granting the pledge of license.