Published in the August 25, 2016 edition
By BOB TUROSZ
NORTH READING — The Board of Selectmen refused to approve the transfer of a beer and wine sales license to a new store proposed for Main St. on Monday night, saying the new business didn’t fit the board’s vision of the vision of the type of business needed on Route 28.
The board voted 3 to 1 to deny transfer of the beer and wine license previously held by Tedeschi’s, 202 North St., to the proposed new business, Route 28 Beer and Wine. Selectmen Robert Mauceri, Michael Prisco and Kathryn Manupelli voted to deny the license transfer while Jeff Yull voted in favor.
Unlike Tedeschi’s, which closed at the end of July, the new business seeking to purchase the license would not have been a convenience store. That’s because its lease for the 202 North St. location rules out a convenience store. Instead, owner Vivekanand Patel and his attorney, Joseph Devlin, said the new store would focus on sales of beer, wine, tobacco, candy, chips and lottery.
Selectmen found that to be an unappealing sell that doesn’t fit with their strategic plan for the development of Route 28.
“With some regret, I’m not supportive of this request,” said Chairman Robert Mauceri. “It just doesn’t fit.”
The license hearing was continued from Aug. 1 because of questions raised in the lease over what items could be sold in the store beyond beer and wine. It appeared the lease prevented the new store from selling many of the goods usually found in a convenience store.
Atty. Devlin explained that the 7–Eleven Corporation purchased the Tedeschi’s chain and is selling off the business properties and putting deed restrictions in lease negotiations over what can be sold in the new store. Excluding lottery sales, Patel was hoping that alcohol sales would account for 40 to 50 percent of revenue and total alcohol and tobacco sales would be 80 percent of revenue. That leaves 20 percent of revenue from sales of other items, “but it’s not going to be like the 7–Eleven across the street.”
When it was a Tedeschi’s store, the location had very high lottery sales and alcohol sales accounted for 25 percent and tobacco for 50 percent of revenue. Patel would have more room to sell alcohol so the beer and wine sales would be higher, Devlin said.
The plaza where the store it located has been purchased by the Captain Pizza restaurant next door, Devlin said.
Selectman Manupelli thanked Devlin for his attempt to clarify the lease but didn’t change her mind as to whether there’s a public need for what Patel was proposing. Mauceri asked why Patel would want to bother with the business since the lease would prevent him from selling many of the items normally found in a convenience store. Devlin said previous lottery sales at Tedeschi’s were $3.5 million, putting it in the top five percent of lottery sales in the state.
“Tedeschi’s was a convenience store,” said Manupelli. “For people to buy milk, bread, chips, your bottle of tonic and lottery. But this is only beer and wine. That’s what jumped out in the lease. That is a significant restriction. A convenience store is something totally different than a beer, wine and potato chips place.”
Chris Pendleton, owner of the previous Tedeschi’s, said 7–Eleven doesn’t want the new store to be a convenience store. When he ran Tedeschi’s, Pendleton said he lost money on staples like bread and milk. “We were a lottery store. We were the number one agent in town and one of the top 10 in the state.”
In 2015, North Reading got $1.5 million in funds from the Lottery, Pendleton pointed out. He’s attempting to sell the license to recoup his investment.
Pendleton said although the new store can’t sell small grocery items like milk, bread, eggs and cereal, it can still sell many things the community needs.
Selectman Michael Prisco said the hearing was about the beer and wine license and that’s what he based his vote on.
The license is a privilege, not an entitlement, he said. And in this case it wouldn’t be used for anything besides tobacco and lottery.
“A beer and wine license that’s tied to lottery and tobacco doesn’t work for me,” he said. Prisco said it doesn’t fit with the town’s strategic plan for Route 28 in the future.
Devlin replied that the store would have value for the community. The Lottery does a good job in returning money to cities and towns and the fact the old store did $3.5 million in sales proved that it was profitable.
Jeff Yull said he’s not a favor of the Lottery and tobacco but he is a fan of small business. That’s why he voted to allow the license transfer.
“I am a fan of someone having a business and revenue for the town. I don’t feel comfortable in taking that away from somebody. If there’s not a need for the business it won’t do well and we’ll find that out in time. But if we don’t give him that opportunity, we won’t know,” Yull said.
Manupelli responded the board won’t be taking anything away from anyone because the business is closed. She and Prisco made the point that there’s no shortage of other locations on Route 28 for people to buy beer, wine and lottery.
“It made sense to have a beer and wine license for Tedeschi’s,” said Prisco. “It doesn’t make sense to assign one of the town’s beer and wine licenses to this location. There are 15 locations in town to buy lottery tickets and 11 to purchase beer and wine, he said.
Mauceri said he considered himself pro–business, but after reading the lease he doesn’t see a business plan that fits with the town’s needs. “This is not just a good fit. There are too many restrictions on the property. It looks like we’re adding a liquor store with a restriction of not being able to sell hard liquor.”
Although they refused to transfer the Tedeschi beer and wine license, the license is still valid although it’s not being used and Pendleton asked the board how long he has to look for a new location for the license.
The Selectmen said they would schedule a status review of the license in approximately 60 days and said Pendleton can report back to the board if he needs more time.
Pool table approved
In other business, the Board unanimously approved an application for a pool table license at Sports, Spirits and Steaks, 178 Main St.
The board also unanimously approved a change in manager for the Thomson Club. The new manager will be Joseph McCarthy.
