In a recent column, I mentioned that Greenwood has what’s known as a Riverfront District. It’s one of several Indiana communities that established a riverfront district after the General Assembly created the concept back in 2004. Hendricks County has only one of them, and it’s been a part of Plainfield since 2021.
Wait … did you say Plainfield? And Greenwood? I may not be an expert on Indiana geography, but I’m pretty sure none of our state’s many rivers flows through either community. So how can they claim a riverfront?
The state’s purpose behind the creation of these districts is to give towns a way to issue extra liquor licenses – particularly what are known as “three-way” licenses, which allow restaurant owners to sell and serve beer, wine, and spirits. State law uses a quota system that’s based on population to determine how many three-way licenses each community can issue … and when you’ve issued them all, you can’t get any more. Unless you set up a riverfront district, that is.
Why do towns crave more liquor licenses? Because the residents of those towns crave restaurants. Specifically, nice restaurants – either independent “white tablecloth” places or upscale chains – and that kind of restaurant generally isn’t economically feasible without liquor sales.
The economics of “nice” restaurants is fascinating. You’re paying $49 for that juicy steak, and you just know the owner is making a huge profit on your entree. In reality, most main dishes in upscale restaurants generate little profit for the owners. Some may even be money-losers. You see, it takes a lot of money to run a high-end restaurant. Skilled servers, cooks, and managers are in high demand, and their pay usually reflects that. Then there are hosts, bussers, and the people who bring your food to the table. Plus all those things you probably don’t think about, like rent payments, pest control, and the laundry service that keeps those white tablecloths dazzling.
Okay, so where do those restaurants make their money? Usually in three places: appetizers, desserts, and especially liquor. You’re already there to eat and pay for a meal, and that’s covering all the basic costs – the overhead, so to speak. The money you spend on the big three is a bonus, and items in all three categories have some of the highest profit margins in the place. If they can get you to buy all three, you’ll be one of the most profitable customers dining that evening.
For a town to have any hope of drawing one of these destination restaurants – “destination” meaning people will go out of their way to come to your town to eat there – it needs to have a sufficient number of liquor licenses. If the General Assembly simply increased the quota for every community, Indiana might challenge Wisconsin as the state whose population drinks the most alcohol. So instead, they forced towns to jump through a few hoops to make it happen. (They’re easy jumps, but they do require some effort on a town’s part.)
I suspect that leaves you with just one question: how can one have a riverfront district without a river? Well, the law says that any property that’s within 1,500 feet of a body of running water can be considered as riverfront property – but only if a district is formally established. For Plainfield, White Lick Creek qualifies. In Greenwood, it’s a small drainage ditch. Scenic, no, but perfectly legal.