Changes in the interest or ownership of any licensed premises are subject to the following requirements:
A. Any changes in partners, officers, directors, persons holding directly or beneficially more than five percent (5%) of the stock or ownership interest, or managers of establishments licensed under this title, shall be reported in writing to the Liquor Advisory Board and shall require the approval of the Local Liquor Control Commission. Exceptions to the preceding are as follows:
1. Changes in stock ownership need not be reported where the stock is publicly traded if the stock transfer is less than twenty five percent (25%) of the stock. All such persons shall meet all the requirements of this title and must otherwise qualify to hold a license.
2. A change in ownership that is simply a reduction in the number of owners (e.g., from five (5) owners to four (4) owners) shall require notification to the City, but shall not require the Local Liquor Control Commission’s approval.
3. Changes to elected officers or board of director positions for a bona fide not for profit organization or for a business for which said elected officers or directors receive no compensation and hold less than 5% stock or ownership interest shall be reported to the Local Liquor Control Commission by written correspondence, but do not require approval.
B. When a license has been issued to a partnership and a change of ownership occurs resulting in a partnership interest by one who is not eligible to hold a liquor license, said license shall terminate effective on the date of said change.
C. When a license has been issued to a corporation or limited liability company and a change has taken place in the officers, directors, managers, members, or shareholders of more than five percent (5%) of the stock or ownership interest resulting in the holding of office or such shares by one who is not eligible for a license, said license shall terminate, effective on the date of said change.
D. When successive changes in ownership occur such that more than fifty percent (50%) of the beneficial ownership of any license occurs within a twelve month period, the license shall terminate thirty days following the notification of the last transaction. This type of action is viewed as an incremental transfer of ownership which is prohibited per 2-4-10 of the Carbondale Revised Code. This section shall not apply to businesses where the stock is publicly traded. (Ord. 2015-38; Ord. 2021-22; Ord. 2022-43)