STURGIS - Some Sturgis city council members want the city to take control of liquor licenses, but with the licenses valued at between $500,000 and $1.5 million each, that could take years.

On Nov. 19, Mayor Maury LaRue will form a special committee to study whether the city should own the seven on-sale liquor licenses currently held by private individuals or corporations.

Councilwoman Bernadette Usera brought the issue to the council.

"Liquor licenses, whether they are transferred or sold, are rubber-stamped. Where is the city or county making money off these licenses?" Usera said.

LaRue said, "Those towns that have retained their licenses get a continued stream of revenue." Currently, the city receives a one-time fee, set by the state, when the city issues a new license, and an annual fee, again set by the state, each year of renewal.

"Rather than someone coming in and building some gargantuan bar and having them control us, we need to control them," Usera said. "We need to lease (the licenses) for X-amount of dollars a month."

Usera said any business with a liquor license should be open year-round.

Usera initially wanted the city to also control the 21 malt-beverage (beer) licenses; however, the city cannot own them, according to state law.

Acquiring the liquor licenses would require voter approval in an election, according to Carol Logan, a section coordinator with the Department of Revenue.

Even if voters approve the change, buying the licenses could prove costly.

Because of the annual Sturgis motorcycle rally, liquor licenses are quite lucrative, selling for $500,000 or more.

State law requires the city to buy the licenses or use condemnation or an arbitrator to establish the price.

"This probably wouldn't take place until a business is sold. It is a process that would take years," LaRue said. "We would just be re-assuming control of the licenses."

Gunner's Lounge owner Gary Prince said: "I don't have a problem (with the concept). By law, they have to buy it. A lot of (the bar owners) in Sturgis probably would not sell for less than $1.5 million. The (current) owners did not set the price; it was set a long time ago."