The Pennsylvania Liquor Control Board has announced the third restaurant liquor license auction, which is permitted under Act 39 of 2016. These auctions are for “zombie licenses” that have been expired and in possession of the Pa.L.C.B. dating back to the year 2000. In this round of the zombie license auction, the Pa.L.C.B. is auctioning off 50 licenses from 40 counties.
The newly announced auction will feature two licenses each from the following 10 counties: Allegheny, Berks, Chester, Delaware, Lancaster, Lehigh, Luzerne, Montgomery, Philadelphia and York. Additionally, one license each will be auctioned from each of the following 30 counties: Beaver, Bedford, Blair, Bradford, Bucks, Centre, Clarion, Clearfield, Columbia, Dauphin, Erie, Forest, Franklin, Fulton, Huntingdon, Lackawanna, Lebanon, Lycoming, Mifflin, Monroe, Northampton, Northumberland, Perry, Potter, Schuylkill, Snyder, Somerset, Tioga, Westmoreland and Wyoming.
Similar to the previous two auctions, this round will be through a sealed-bid process. Bids for the available licenses are due on June 30, 2017, at noon. The bids will be opened and the winners of the auction will be determined during the week of July 3, 2017. The minimum bid for each license is $25,000, which must be accompanied by a $5,000 surety to ensure the bidder’s ability to pay for the license. The highest bidder will be given the ability to file a license transfer application with the Pa.L.C.B. within six months of winning. However, if the winner’s payment is not received by the Pa.L.C.B. within two weeks of winning, the winning bidder will lose the chance to file the transfer application, and the Pa.L.C.B. will give the second-highest bidder six months to file the transfer application.
Recently, we published a blog post titled “Pennsylvania Zombie Liquor License Auction: Keys to Making a Successful Bid,” which documents our success and process of making a successful bid for a zombie license. Based on the advice in that blog post, we look forward to assisting current and new clients in this third zombie license auction.