After more than a century as a dry town, Collingswood is considering lifting its ban on alcohol sales within the borough.
For months, the three-person Collingswood Board of Commissioners has been discussing whether to lift the long-standing restrictions on liquor sales both as a potential new revenue source for the borough and as a way to bolster the local restaurant industry.
Per the state’s population-based license cap 一 one liquor license for every 3,000 residents — Collingswood would be able to issue as many as four retail consumption licenses that permit restaurants or bars to serve alcohol, or one distribution license for a liquor store within borough limits.
If liquor sales are eventually permitted, the borough could receive anywhere from $1,000 to $10,000 annually through licensing and renewal fees.
But discussions are still preliminary as the commissioners work to determine what is best for Collingswood’s existing restaurant and business owners, borough administrator Cassandra Duffey said.
“There’s a general sense that liquor can be a good thing, but there’s a concern that if it’s done in a way that’s unbalanced, it can also throw people off,” she said.
“Is there strength in the dry-town brand that has been around for years and years?” Duffey said.
Tracing back to its Quaker roots, Collingswood has prohibited alcohol sales by ordinance since the 19th century.
A change to the policy would require public approval through a referendum during the November general election, borough solicitor Caitlin Harney Norcia said.
To begin that process, the borough’s commissioners would need to adopt a resolution by Aug. 21 so that the Camden County Clerk’s Office has enough time to add the question to the ballot. In order to adopt the resolution, at least 15% of voters who participated in the last general election must sign a public petition in favor of putting the question on the ballot, Harney Norcia said.
After that, “repealing any kind of prior restrictions could all be done relatively easily,” Harney Norcia said, describing the logistics of updating local ordinances if a referendum passes.
If voters approve lifting the ban, Harney Norcia said, the borough could either award licenses in a competitive bidding process, which could generate one-time revenue for Collingswood’s budget, or enact an application and review process that includes annual fees and public presentations by prospective licensees.
But if the measure were to fail on Election Day, Collingswood would be barred from holding another referendum on alcohol sales for five years, according to state law.
Some business owners have expressed concern that the public bidding process could result in one of the borough’s few licenses being awarded to an outside business instead of an established Collingswood restaurant, Duffey said.
“The challenge is not to disrupt the balance of businesses that already exist here,” she said. “If you get a bidder that gets a license from outside of town, sure, you get the revenue, but then you’ve added somebody and it doesn’t necessarily benefit one of our businesses.
“The other option is to award [the licenses] directly, but then somebody must make a decision on who gets them, which is also a challenge,” she added.
The commissioners are in continued talks with the borough’s business improvement team, local restaurateurs, and others about the best approach, she said.
“Is there a way to distribute licenses or award licenses that is a boost for everybody?” Duffey said.
The internal debate in Collingswood comes less than two years after residents in neighboring Haddon Heights voted to get rid of its de facto ban on liquor sales. The town has set a $200,000 minimum bid for its first retail liquor license and is currently accepting applications ahead of a public auction sale in September.
Haddon Heights is hoping to leverage the new liquor licenses as a way to help boost a broader revival and redevelopment, Mayor Zachary Houck said.
The licenses “would hopefully draw in one or two additional restaurants or enhance existing restaurants and let us then continue to move that ball forward when it comes to enhancing our downtown historic district,” Houck said.
Making more, and more affordable, liquor licenses available statewide was a goal of legislation then-Gov. Phil Murphy signed into law in 2024. The measure was touted as an unprecedented reform of New Jersey’s liquor laws, long described by critics as arcane and antiquated.
“By easing restrictions and boosting the availability of licenses, we are creating new opportunities for small businesses, especially mom-and-pop establishments, to expand and facilitate development on main streets across New Jersey,” Stella Porter, a spokesperson for Murphy, told The Inquirer that year.
