Restaurateurs seeking a liquor license in Crown Point may be eligible for a deeply discounted one, provided their idea is new to the city.

The city recently tapped into a state law that allows historic downtown areas 10 additional liquor permits, Mayor David Uran said during his monthly Tuesday Talks with Mayor Uran.

A municipality, Uran said, must meet four criteria: It must have a historic district, an opera house, a sheriff’s house and courthouse in order to qualify. Crown Point has all four.

A business can be considered eligible for one of the licenses if its business model is food-based as opposed to alcohol-based, and its premises must be new or unique to the Square, assistant city attorney Alex Kutanovski said.

So far, three businesses have fit the bill: The Courthouse; Square Roots, a new restaurant at 108 N. Main St.; and a new, unnamed restaurant at 116 N. Main St., to be run by Jeff and Penny Holme. That permit was issued during the June 4 City Council meeting.

As far as cost, it’s a one-time fee of $5,000 for the license, plus a $1,000 application renewal fee to be paid yearly to the state’s Alcohol and Tobacco Commission, Kutanovski said.

It comes with a caveat: Unlike traditional liquor licenses, which are based on a municipality’s population per-capita and can be purchased through auction and taken from place to place, the historic license is good for only the approved business and approved location.

“It’s nontransferable. You can’t even just move your business to another address on Square; you would have to reapply,” said Anthony Schlueter, the city’s planning direcor. “It can be revoked if the business is found to not be (adhering to expectations.)”

The restaurant will need to come before the City Council each year and ask for a permit extension, Uran said.

If the City Council finds the business isn’t living up to expectations, it can revoke the permit and either have the business owner reapply under a new business idea or give the permit to another business owner.

The historic permits give the city a chance to shape its downtown into a place that eventually could attract more upscale eating establishments and, eventually, higher-end retail.

“It does provide an opportunity for more restaurants, but we’re not going to be opening more bars in the downtown,” Uran said.

“You might have more eating options that might serve an alcoholic beverage with it.”

Michelle L. Quinn is a freelance reporter for the Post-Tribune.