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 The St. Mary’s County Alcohol Beverage Board (liquor board) has denied a request to turn part of the former McKay’s Food and Drug on the Leonardtown-Hollywood Road into an eat-in and take-out restaurant and wine bar, which was described in an earlier meeting as being like a bodega. Applicant for the proposal was Laschelle McKay, wife of Thomas McKay, president of the local grocery store chain. The vote was 3-2.

The liquor board members grappled with the proposal during the lengthy hearing. In the end they ruled that their regulations did not allow two licensees within one “premise.” The other part of the store would have been operated as a market and liquor store. The licensee for that part, Marilyn McKay, is the wife of the late James Manning McKay, founder of the grocery chain and former county commissioner and state delegate.

The proposal from the McKay’s involved reducing the licensed premises of the store for Marilyn McKay Liquors and putting the restaurant, which was to have been called Fresh Express, in the other half. Under the proposal, patrons to either business would have entered through one door, passed from one business to the other through an opening surrounded on either side by shelves, and then checked out at a cashier at either location. Laschelle McKay said the registers would have automatically kept separate the two businesses.

The liquor board members, at a hearing last month, questioned whether the license at the Hollywood .location was in existence long enough to be grandfathered under the state’s 1962 law that prevents liquor licenses in chain grocery stores. The McKay’s lawyer Michael Davis presented evidence that the store had been open since 1952 at the building next door than now houses a storage facility and later moved without a break in operation to the present location.

Both Janette Norris, the county’s treasurer, and William Hebb, Sr., a longtime McKay’s employee, testified that alcohol; was sold at the store for as long as they could remember. Norris said her grandfather lived right across the street from the store and she visited there many times as a child.

The liquor board did vote to provisionally allow the licensed premise to be reduced and also ruled that the McKay’s license was grandfathered. Thomas McKay argued that was all that it was necessary for them to prove since the law allows for grandfathered licenses to continue.

But the board was stuck on the comingling of the two operations under one roof. At one point board member Linda Palchinsky suggested that a wall be constructed between the two operations. Thomas McKay said that wasn’t economically feasible and if he was forced to do that he would just withdraw the application request.

Laschelle McKay said the whole concept was to provide convenience to customers where they could buy a take-out meal from Fresh Express and some groceries from the market/liquor store. She said she and her husband had seen such operations in urban areas.” She said, "We want to create an experience, not just a restaurant.”

Mrs. McKay, who is the Leonardtown town administrator, said they would be hiring someone with extensive experience in the restaurant and food market business to manage the restaurant. She did agree, after much discussion, to restrict the checkout of the wine sold at the restaurant to the restaurants check-out counter.

When the concerns about having two licenses under one roof surfaced, Davis and Mr. McKay both pointed out that the liquor board had granted a similar situation to Guenther’s Wine and Spirits in Leonardtown which has a Guenther’s Bistro located in the same space. The two operations are separated by a two-foot high fence, Mrs. McKay said.

“The whole idea is to take products in one and go to another and go home. We can’t do what legally and economically won’t work,” Thomas McKay said.

Several board members expressed concern that approving the application could lead to other large grocery chains setting up restaurants with liquor licenses in part of their stores. “I am a huge supporter of local business but I am concerned about opening a Pandora’s Box,” said Board Chairman Moses Saldana, Jr. “What would prevent Giant from doing it,” Palchinsky said. Thomas McKay responded, “Giant isn’t grandfathered. Target is not grandfathered.”

David Dent, speaking for the St. Mary’s County Retail Beverage Association, also expressed concern about having two licenses under one roof. He said his concerns extended not only to the front of the businesses, but the back end as well where the alcohol beverages are brought in and stored. Mr. McKay said the operations would be separated in the back.

After recessing for about 20 minutes to talk about the case, the board reconvened with board member Aaron Mathis making a motion to deny the request. Board Vice Chairman William Cullins seconded the motion. When Palchinsky and Betty Currie voted against the motion, board Chairman Saldana voted to break the tie and support the denial.

The decision can be appealed within 30 days to the St. Mary’s County Circuit Court.