Letter to City Council

January 17, 2007

To: City Council

Holland City Council, city planners and business owners have made a major investment in making Holland one of the best cities in the U.S. in which to live.
Since 1995, more than $235 million has been invested in tax dollars and private business in an effort to make the city and downtown area an exciting place to live and visit. The city’s picturesque downtown and vibrant shopping district has become a destination center for area residents and thousands of visitors every year. To its credit, Holland City Council, the Downtown Development Authority and the Principal Shopping District have been progressive in bringing outdoor dining, street side cafes and live entertainment to the downtown. All of this has added to the ambiance of an already great city.
Recently, City Council made changes to city policy allowing alcoholic beverage service at city-owned properties like Windmill Island, the Holland Museum and the Cappon House as well as allowing beverage services to customers on public sidewalks and right-of-ways for licensed business establishments.
We believe it is now time to take the next step in the continuing process of making Holland a great place to live and visit. Repealing the current city resolutions preventing state licensed restaurants from providing the sale of alcohol on Sunday within city boundaries is that step. We ask that these resolutions-established by a simple votes of council in 1980’s - be repealed by City Council, thus giving local merchants an opportunity to compete on a level playing field with other Ottawa County cities and municipalities that do not have this locally imposed restriction on Sunday liquor sales.
This restriction puts city businesses-not just restaurants-at a major disadvantage for growth and success. We believe the current policy is sending hundreds of thousands of dollars—that could be spent in our city--out of town every weekend to other shopping and dining destinations.
We believe a change to bring Holland’s Sunday beverage policy in line with the County policy would provide significant growth for the local economy. When we look only at the businesses that would be directly affected by this change… the impact is dramatic. We estimate that the addition of four extra days of full operation a month by the 20+ licensed restaurants in the city would add more than 8320 days of employment for hospitality workers in the city. Based on a 260-day work year, the change to the city policy would in effect add the equivalent of 32 new jobs in the city and create nearly $465,000 in additional payroll per year.

Considering the recognized multiplier effect that every dollar of salary will be spent seven times in the local area, the impact of the repeal would result in $4.1 million in additional spending power per year in the local economy. This does not include the additional jobs that may be created at other Holland businesses that would also see an increase in Sunday business by local residents and visitors attracted to downtown Holland and the city.
In addition, if just 5 percent of the city’s residents leave Holland city every Sunday to go to other West Michigan communities to dine, shop and seek entertainment, the loss to the local economy is tremendous. If 1,800 people leave the city and spend an average of $30 per person outside Holland each Sunday of the month, the direct loss to the Holland business community is equal to $1.3 million a year.
We estimate the loss is much greater than this when Sunday tourist spending and the loss of business on major holiday weekends are added.
As Holland business owners and city residents, we feel the restaurant and beverage businesses of the city are being singled out by a 26-year-old policy—instituted decades ago by a handful of people—that is restricting the business growth and economic development of our great and progressive community today.
We feel the current City policy is seriously detrimental to the future growth of Holland and its economy and is also discriminatory to small business owners in the community.
Therefore, we request Holland Council take steps to change the city resolutions banning Sunday liquor sales and adopt county standards for beverage sales in state licensed establishments.
Time is of the essence. We would like to see this policy change occur before the start of this summer and the city and its businesses lose prime tourist business days.

Thank you,

Citizens for Progress