The city of Sioux Falls is implementing a significant change in its liquor license allocation process, moving from a lottery system to a sealed bid system.
Under the new approach, applicants will submit bids, and licenses will be awarded to the highest bidders.
City officials believe this change empowers bidders and better determines the true value of the licenses, which are considered assets to the city.
The first round of bidding for ten off-sale and seven on-sale liquor licenses begins in August, with a $100 application fee for both types of licenses.
The minimum bid for off-sale licenses is set at $500, while on-sale licenses require a minimum bid of $240,646, meeting the state’s minimum requirement.