Market disruption affects transfer of liquor license for Dickinson Youth Activities

DICKINSON – A proposed liquor license transfer in Dickinson is raising concerns about potential market disruption, prompting city commissioners to halt the process.

Dickinson Youth Activities (DYA) is in the process of purchasing The Rock Bar, along with its liquor license. DYA, which operates six sports licenses in the city, has asked commissioners to approve the purchase and transfer.

Under state law, clubs are prohibited from holding liquor and gaming licenses. To manage this restriction, the DYA has established an association to manage each license, with plans to operate both at the same facility.

The purpose of this law is to avoid conflicts of interest, protect public safety and maintain the integrity of these highly regulated industries. Separating these licenses also helps prevent market monopolies and ensures fair competition, allowing small businesses to thrive.

The DYA conglomerate consists of DYA Inc., DYA Holdings LLC., and DYA Operating Inc.

In this format, DYA Inc. would hold the gaming license, while DYA Holdings would own the building, and DYA Operating would manage the liquor and tobacco license. This provision they argue that allows them to operate both licenses within the same institution within the legal document.

The leadership of the conglomerate includes local people who serve as president, vice president, treasurer, secretary and three board members. These people would also work on the boards of other organizations within the conglomerate – raising questions for some of the commissioners in the letter of the law against the spirit of the law.

Commissioners expressed concern about maintaining competitive balance in the market. They say they are afraid that a similar situation could arise where one organization could make a combination of having permits and facilities, which is an opportunity to let an outsider out of local subsidies that depend on the permits. games for income.

“DYA uses its sports licenses at six other Dickinson sites. This would make it not a partner, but a competitor,” Commissioner John Odermann said during Tuesday’s commission meeting.

Other concerns from commissioners include the possibility of outside gaming licensees buying up Dickinson properties, pushing out local organizations like the DYA, and diverting money away from the community.

According to the law, 40% of the money, after authorized expenses and sports tax, must be used only for education, charity, patriotism, children, religion or social projects – something that DYA e ‘ has been doing it for almost 50 years.

“Ultimately, it comes down to protecting this investment. Our board members always do the right thing. I mean, we have no intention of downing the beer can just to bring in more people,” said Terry Dvorak, DYA board member.

Roxanne Ficek, DYA’s athletic director, told commissioners that their concerns are now being realized.

He said: “I spoke to Jason Frederick four months ago, and he said that’s not going to happen. It happens—they’ve been in town looking at our bars.”

Ficek and DYA say this step is important for the organization’s survival.

“The sporting director took me aside three months ago and said, ‘If you want to wait in five years, you should start buying bars.’ I thought, ‘No, we’re good with our customers, we’re good with our owners—they’ll never fire us, we stand firm.’ And then what happens? “Army West became the Final Final,” he said, referring to DYA’s 30-year run at Army West, which ended when the client changed ownership and partnered with Dickinson State University Heritage. Foundation.

There are six registered sports organizations in Dickinson, operating 23 active sites. These include Dickinson Youth Activities Inc., the American Foundation for Wildlife, and Dickinson Charities, among others, each managing multiple sites within the city.

Not all club-run sports facilities are available in Dickinson. The American Foundation for Wildlife, the Fort Abraham Lincoln Foundation from Bismarck, and the Dunn County Fair Association High Plains Community Center from Killdeer also operate fairgrounds in the city. Each of these organizations has licenses in other parts of the country.

Commissioners plan to gather more information, talk to DYA and other agencies, before making a decision at the Sept. commission meeting. 3.

Representatives for the DYA and the North Dakota Game Commission did not respond to requests for comment.