South Bend's expanded riverfront liquor license district already creating jobs, investment

The expansion of the riverfront licensing district that was approved by South Bend Common Council last September already is creating new jobs and additional investments by local restaurants.

And it could be just the tip of the iceberg as word continues to spread that the riverfront zone ― which allows three-way liquor licenses for $2,000 a year ― has been expanded to 3,000 feet of the river from the previous limit of 1,500 feet.

State law allowed the expansion of riverfront licenses last year to boost economic vitality along Indiana’s waterways. The special licenses greatly reduce the cost of opening or expanding a business because a regular three-way license can cost $60,000 or more in South Bend, for example.

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The expansion of the zone allowed L Street Kitchen to acquire a three-way license, which justified its expansion into the evening hours several weeks ago, says Mike LaCarrubba, owner of the restaurant at 131 S. Lafayette Blvd. across from the County-City Building.

“A lot of people want a cocktail or a beer with dinner,” LaCarruba says.

The restaurant was previously open from 8 a.m. to 2 p.m. Tuesdays through Sundays. Its new hours are 8 a.m. to 8 p.m. Tuesdays through Saturdays and 8 a.m. to 2 p.m. Sundays, which necessitated the hiring of an additional six employees to cover the expanded hours.

LaCarruba says his sales already are up more than 10% since expanding into the evening hours with a three-way license, and he hopes business will continue to grow as the weather warms up and more people come downtown for a show or a ballgame at Four Winds Field.

“There are plenty of upscale options in the downtown area,” LaCarruba says. “We’re a place for regular working people and their families.”

Another downtown restaurant to recently take advantage of the riverfront license is Howard Pork, located at 521 E. Jefferson Blvd. in the East Bank neighborhood. That space already had a riverfront license when it was known as Render restaurant, but it had to get a new one because of a change of ownership.

L Street qualified because of the expansion of the district along with Roselily at 701 S. Main St., which recently achieved Four Diamond status from AAA for its cuisine, service and ambiance.

That attention to detail is why Roselily owner Eamonn McParland still hasn’t implemented a cocktail menu at the restaurant, even though Roselily gained the inexpensive three-way license several weeks ago.

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“We’re still working to put it into play ― probably the weekend of May 4 or May 11,” McParland says, adding that he too has had to add a couple of positions at the restaurant, which previously had only a beer and wine license.

“We’re developing recipes,” he says, adding that Roselily will likely have six or seven signature cocktails. “The expectations are fairly high, so we have to take our time and make sure our ducks are in a row.”

Despite its location in the still developing Renaissance District on the south side of downtown, Roselily has shown the ability to attract visitors to the out-of-the-way location. Similarly, the other restauranteurs with riverfront licenses expect to draw more diners to their locations while also creating new jobs.

Francisco “Franky” Macias, owner of Franky’s Tacos at 2720 Mishawaka Ave., expects to add about a dozen new jobs as a result of the riverfront liquor license ― $1,000 of which goes to the state and another $1,000 to Downtown South Bend Inc. for administering the program.

But beyond the new jobs, Macias plans to embark on a $1 million expansion that would create a nice outdoor space, a bar and allow him to expand into a neighboring building to the east where he would build a new kitchen, allowing space for the addition of 50 more seats in the restaurant.

Though Franky’s had a beer and wine license, the ability to also offer margaritas is almost expected at a Mexican restaurant, Macias explains, adding that his sales already have increased even without the expansion, which he hopes to complete this year.

While Franky’s and other businesses have shown the ability to succeed in the River Park area, the once thriving neighborhood commercial district might still represent the best opportunity for someone interested in opening a restaurant, says Courtney Kubly, director of business development for DTSB.

Numerous buildings along Mishawaka Avenue are still vacant and underutilized, and now they’re sitting in the expanded zone for riverfront licenses, Kubly says, estimating that there could be as many as 12 properties suitable for use as a restaurant just along Mishawaka Avenue.

“We were initially expecting an onslaught of applications, but people don’t know about this new opportunity” she says. “It’s been hard to get the word out since the area has doubled in size.”

The opportunity exists throughout the expanded riverfront zone and is facilitated by a committee made up of city officials, redevelopment members, DTSB representatives and restaurant owners.

To be eligible for the annual liquor license, a business must have most revenue coming from food sales or offer a unique cultural experience. Those interested should reach out to Kubly at ckubly@downtownsouthbend.com.

Email Market Basket columnist Ed Semmler at esemmler@sbtinfo.com.

This article originally appeared on South Bend Tribune: South Bend's expanded riverfront district is creating jobs, investment