This story is a part of The Article, your guide to Arkansas news and culture, presented by the Democrat-Gazette. Sign up for The Article's twice-weekly newsletter here or to see stories that have appeared in past newsletters, go here.
The first Costco Wholesale in Arkansas opened Wednesday in Little Rock, complete with its contentious liquor store that some had sought to block.
A membership is required to shop in the main store but not at the attached liquor store.
Back up: Who had been trying to block the Costco liquor store?
In May, when the state considered transferring the store a liquor license, Sen. Kim Hammer, R-Benton, objected and said he was concerned about the store’s proximity to a daycare and about exceeding state limits on liquor permits.
(Arkansas law limits the number of retail liquor stores to one for every 7,500 people in each county. Rather than award a new permit, Costco sought a transfer of a permit most recently held by Stagecoach Wine & Spirits.)
Because the store is in Hammer’s district and he objected, the application was initially denied — state law requires the Alcoholic Beverage Control Division director to either deny an application or take it to a hearing if a member of a governing body who oversees an area where the liquor store is planned to open objects to its licensure.
However, Costco appealed the decision and participated in a hearing before the Alcoholic Beverage Control Board, which ultimately reversed the denial.
How did the situation end up in court?
Liquor store owners in the area had voiced their opposition to the permit during the hearing before Alcoholic Beverage Control officials, expressing particular concern about competing with a national retailer.
The license transfer was granted anyway, so some store owners then took their bid to block the license to circuit court, asking for an emergency stop to the store’s opening.
The lawsuit took issue with:
• Costco's business model, pointing out that while Arkansas liquor stores are barred from selling most of the kinds of products that Costco offers, the retail chain is getting around that rule by setting up a separate liquor store adjoined to its retail store
• The number of liquor stores in Little Rock, arguing the city’s 56 licensed retailers is 30 more than the law allows for a city of this size (plus 20 stores are within 6 miles of the Costco)
What happened in the lawsuit?
Judge Alice Gray said in a three-page ruling on Monday the retailers had not provided enough evidence for her to grant an emergency halt of the liquor store’s opening.
The judge also stated that the plaintiffs had failed to properly notify Costco and the state agencies involved in the litigation of its efforts to have the liquor store closed.