BETHEL – As the difficult issue of alcohol sales in Bethel continues to smolder, impacting even the only movie theater in town, Mayor Rick Robb ruled on one aspect Tuesday night: whether new City Council member Nikki Hoffman has a conflict that would prevent her from voting on the proposed Bethel Spirits liquor store.
The City Council, despite lengthy closed door discussions Tuesday night about legal maneuverings involving Bethel Spirits, didn't decide any new course of action.
Bethel Native Corp. is trying to open the Bethel Spirits liquor store to generate revenue from its mainly empty Kipusvik retail center, where Swanson's grocery and department store was based before its operator went bankrupt and where BNC for now runs a movie theater.
The city has protested the Bethel Spirits application to the state Alcoholic Beverage Control Board. While the board rejected the protest in July, it is reconsidering its decision at a Nov. 19 meeting in Anchorage.
Hoffman, 24, is a BNC shareholder with 10 shares that were given to her by her mother in 2013. She described her interest as "very miniscule." She receives only a small annual dividend of $50 or so.
She is one of more than 1,800 shareholders, Bethel Native Corp. president and chief executive Ana Hoffman told the council. In all there are 175,900 BNC shares, but unlike stock in other private corporations, Alaska Native corporation shares cannot be sold so have no stated value for tax purposes, Ana Hoffman said. The standard number of shares per shareholder is 100, she said.
Robb ruled Tuesday night that Nikki Hoffman has no conflict. She doesn't have a significant financial interest in Bethel Native Corp., and she's not a director, officer or employee of BNC, he said.
Two council members, Zach Fansler and Leif Albertson, disagreed with the mayor's ruling, but the other council members voted to uphold it.
Meanwhile, Bethel Native Corp. has announced it will close Kipusvik – including the movie theater -- because of the Bethel Spirits situation.
"Due to the continued uncertainty of the Bethel Spirits package store application, Bethel Native Corporation is now preparing to close all operations at the Kipusvik facility," the corporation said in a statement published in the Oct. 28 Delta Discovery. "Suurvik Cinema will be closing by year's end."
The ABC Board has yet to decide whether to grant a liquor license to Bethel Native Corp. Besides asking the ABC Board to reconsider its protest, the City Council also has appealed the ABC decision to an administrative law judge.
"The City of Bethel's appeal and request for reconsideration prohibit the ABC Board from taking any further action on the application from Bethel Spirits," the BNC statement said. "The City's withdrawal of these matters would be consistent with the direction provided by the citizens of Bethel and allow for Bethel Spirits' application to move forward without further delay."
Voters in an October advisory vote said they supported a liquor store in town.
Once the liquor store issues are resolved, Kipusvik can reopen, the BNC statement said.
The City Council met in executive session for two stretches Tuesday night to consider the legal fight over Bethel Spirits.
Two liquor store applications from Bethel are currently before the ABC Board. Besides Bethel Native Corp., Alaska Commercial Co. is proposing a liquor store connected to its Quickstop store. The ABC Board also will be considering the city's protest of that application on Nov. 19.
In split votes, the council late Tuesday night decided to postpone action on proposals to drop both protests. Robb, Fansler, Albertson and council member Chuck Herman agreed to put the matter off until Nov. 24 after the next ABC Board meeting. Hoffman, member Alisha Welch and Vice Mayor Byron Maczynski, who have said they were ready to drop the protests, were on the other side.