Last September, the city of Holyoke threw a sweet deal on the table as part of an urban renewal plan that has been gestating for several years now: 13 new liquor licenses, procured from the state, intended to help revitalize four downtown neighborhoods along the canals.
The program is managed by the Holyoke Redevelopment Authority, created by the city in 2008 and tasked with putting a concentrated plan in place to jump-start development in the area called Center City, which consists mainly of the Flats, South Holyoke, Churchill and Prospect Heights-Downtown neighborhoods.
Seven beer and wine licenses and six full-liquor licenses are on offer for properties within this zone. There are roughly 50 existing licenses in the city, many of which cost upwards of $50,000, but these 13 — which are owned by the city and offered to businesses for a $10,000 fee — are priced to move.
But as of last week, they hadn’t moved yet. It’s still early. Tessa Murphy-Romboletti, the point person for this project at the city’s office of planning and economic development, said that although discussions with several businesses are in the works, no applications have yet been submitted.
Licenses are restricted to businesses that have provided the city with a written restaurant concept, including proposed menus and seating charts. This part of the application process takes time, she said.
While the office waits to get a few in the mail, we called some area restaurateurs to gauge whether this offer is as appealing as Holyoke thinks it is. Based on the responses we got, the answer is yes.
“I think it’s a great idea,” said Elizabeth Martinez, co-owner of Bistro Le Gras in Northampton. “I’m always excited to see more happening in Holyoke.”
The bistro Martinez runs with her husband Dan sits at the top of the Smith College hill on West Street, a 10-minute walking detour from downtown Main Street. “We opened in an end of town that’s not as popular,” she said, “but there are a lot of people who live right here and appreciate having us here.”
She added that she believes restaurants have the capacity to revitalize the blocks in which they open. “I think it keeps folks living in the area,” she said, “and it draws others into a part of town that can get more interesting and popular over time.”
Holyoke’s low-cost liquor licenses caught Jeff Igneri’s eye as well. Igneri owns the hamburger restaurant Local, which has locations in Northampton, Keene, and Williamsburg.
Igneri said he sees customers routinely walk into Local, discover that no alcohol is sold there, and walk out. “So I see the motivation in applying for one of these in Holyoke, without a doubt.”
“If I didn’t have so much else going on right now, I’d really be thinking about it,” he added.
Since restaurants pay tax on all sales, more restaurant-goers spending money means more revenue for the city — which is boosted by having a liquor license, Igneri explained. “Liquor gives you a way to hold people at your tables. Without drinks, there’s no additional revenue coming in after people sit, and we need to turn over those tables. But with drinks we could do additional sales, which means we might also provide music or entertainment.”
That’s just what Fiesta Cafe is thinking. The Holyoke restaurant, which serves Puerto Rican dishes, opened a few months ago on Main Street, within the Center City perimeter, and the owners have plans to apply for one of the low-cost licenses.
“Ten thousand dollars for a license? That’s a godsend,” said Glenn Goodman, the business’s attorney. “Hopefully a lot of other restaurants jump in, too.”
Goodman said the news of added licenses prompted Fiesta Cafe to accelerate its plan to increase restaurant seating and add a patio. It will do so by expanding into the lot next door, which the company already owns. The full vision is to offer music, entertainment, and space for weddings, banquets, and other events.
Goodman’s office, located in Springfield, is a few blocks from the footprint of the MGM Springfield casino. That complex is currently under construction and scheduled to open in 2017. When asked whether the site — which will include several new restaurants and outdoor recreational spaces — is likely to draw potential customers away from this Holyoke endeavor, Goodman said he hadn’t heard any conversation about it yet.
“Right now there’s not a lot going on in Holyoke for nice sit-down dinners outside,” he said. “That’s the reason this will be a great attraction.”
Fiesta Cafe is preparing to break ground on the patio, he said, which will be built no matter what. Interior expansion plans will wait until the application for a liquor license has been — Goodman hopes — accepted.
“It’s a great location along the canal,” he said. “We’re happy to be ahead of the curve.”•
Contact Hunter Styles at hstyles@valleyadvocate.com
