The Mandan City Commission wants to change how liquor licenses are issued and began taking steps towards a new arrangement at Tuesday's meeting.

With the commission's revocation of the Ratz Lounge liquor license, the city finds itself with an extra Class A license. In the past, licenses that were turned back to the city were made available on a first-come, first-served basis. In July, the commission asked city administrator Jim Neubauer to consider putting the license up for bid.

In researching the issue, Neubauer found Mandan's current annual license fee of $2,500 is in the middle of the range charged by North Dakota's comparable cities. The low is $1,100 and the high is $3,125. Neubauer also found most cities put licenses turned back to the city up for bid.

Each year, the city issues new licenses to the businesses that apply. These are not renewals, Neubauer said, but new licenses. The city does allow transfer of licenses, for which it charges a $150 fee, but the owner of the license can charge what they want for the license. City attorney Sharon Gallagher said Grand Forks does not allow transfers and licenses come back to the city. She also said that owning a liquor license "is not a property right, but a privilege."

Commissioner Dan Ulmer said that doing away with the transfer of a license would be unfair to current license holders, who may have paid past owners more for the license than the annual fee the city charges.

Commissioners agreed that if a bidding process took place, it would likely draw people with strong financial backing.

"If we want to change the image of Mandan, we shouldn't allow just anybody to have a license," commissioner Tim Helbling said. "If they have to pay a substantial fee, they would have to have the money behind them. We've had some very marginal owners in the past."

Gallagher told the commission that if they wanted to change the current process, they should make license applications much more specific, with applicants providing information on financing and proof of insurance. "You need to tighten up the application process," she said.

The commission asked Neubauer to do further research on the subject.

In other business the Mandan City Commission:

3 Awarded three paving projects to Mariner Construction, low bidder on each project. The projects include: 40th Ave. SE, 19th St. SE, 21st St. SE, and Shoal Loop for $2,530,579.28; Lakewood 4th Addition $860,991.81; and Lakewood Harbor 4th Addition $377,576.81.

3 Awarded a water improvement project involving a 24 inch transmission line north of I-94 to Cofell Plumbing and Heating for $621,721.40

3 Agreed to a Memorial Bridge funding agreement, in which if further federal funding is made available the city's portion would be reduced from $1.35 million to $676,000.

3 Approved transfer of a liquor license from Al Leingang (Dogtown) to Chad Heck and Josh Carter.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@bismarcktribune.com.)