LITTLE ROCK — A liquor store owners association has asked a Pulaski County circuit judge to overturn an Alcoholic Beverage Control Board decision to transfer a liquor permit to Tyler Austin, who wants to open a Macadoodles franchise in Springdale.
The petition, filed Monday by the Arkansas Beverage Retailers Association, claims the board's unanimous July 16 decision was "arbitrary, capricious, and characterized by abuse of discretion."
Roger Gildehaus, owner of Macadoodles, said the lawsuit is a ploy by Springdale businessman Jim Phillips to maintain control over the local liquor market.
"But we won't be intimidated," Gildehaus said.
Phillips is president of the Springdale Liquor Association, which operates seven stores in Springdale. An eighth store, Cheers Liquor and Wine Shoppe, is a Phillips interest. Phillips, who declined comment on the lawsuit, also is one of the organizers of the state beverage retailers, accordingto the Arkansas secretary of state's office.
"In my opinion, this is nothing more than the liquor association trying to protect its monopoly for as long as it can," Gildehaus said.
Steven Morley, the Little Rock attorney who represents the retailers, didn't return a phone call seeking comment.
Besides the association, plaintiffs listed in the suit are beverage retailers Dow Dollar and Albert Young. The defendants are Michael Langley, director of Alcoholic Beverage Control, and the board. The case was assigned to Circuit Judge Ellen Brantley.
Austin and Macadoodles can move forward with the project at 48th Street and Elm Springs Road despite Monday's filing.
Gildehaus said he hopes to have a ground-breaking in the next week or two.
The planned Macadoodles is a 15,000-square-foot building that will include a wine market and cellar, discount outlet, beer store and pickup-delivery depot. Austin also plans to sell gasoline from aneight-pump fuel station.
Austin offered $180,000 to buy the liquor permit from Steve Gunderson of Fayetteville. Austin bought the property at Elm Springs for $1 million, and it will cost him about $2.5 million more to build the store and stock it, according to his testimony in July before the board.
The permit was granted on the condition that Austin build the facility in compliance with standards enforced by Alcoholic Beverage Control.
The chief contention among Austin's opponents has been that Arkansas law doesn't allow alcohol sales alongside unrelated merchandise, such as fuel, groceries or sporting goods.
But in April, the Arkansas Supreme Court ruled that Sam's Club in Fayetteville could sell liquor next to its retail outlet because the two enterprises are separate. Austin designed his enterprise, at least in part, based on the precedent of the Supreme Court ruling. The lawsuit that triggered the opinion was filed by the Arkansas Beverage Retailers Association.
Arkansas, Pages 15 on 08/28/2009