V4 05 Letter to ZBA Alcoholic Beverage Club License 3057483_1

Philip D. Neuer, Chairman, and Members Township of West Orange Zoning Board of Adjustment January 27, 2023 Page 2 3057483.1 116173-101909 3. Lantern Hill, 535 Mountain Avenue, New Providence License #: 2011-31-006-002 Licensee: Hilltop Social Club Inc. 4. Seabrook, 300 Essex Road, Tinton Falls License #: 1336-31-018-002 Licensee: Seabrook Village Residents Association Inc. 5. Heath Village, 430 Schooleys Mountain Road, Hackettstown (Washington Twp.) License #: 1438-31-008-001 Licensee: Heath Village The first four facilities are registered as continuing care retirement communities (“CCRCs”); the fifth offers similar living options but is not registered as a CCRC. Club licenses involve a number of regulatory requirements, as outlined in our letter dated September 22, 2022. To summarize:  A club license may only be issued to organizations operated for benevolent, charitable, fraternal, social, religious, recreational, athletic, or similar purposes. N.J.S.A. 33:1-12.  Alcoholic beverage sales can only be for immediate consumption on the licensed premises, and must be “to bona fide club members and their guests.” N.J.S.A. 33:1- 12, Section 5; N.J.A.C. 13:2-8.8. No sales for off-premises consumption are permitted. N.J.A.C. 13:2-8.9.  To satisfy the statutory requirement concerning service only to bona fide club members and their guests, the usual arrangement is for the CCRC to set up a separate “club” entity operated by the club members.  Residents of the CCRC apply for membership, and once admitted, would become club members. Clubs must have been in continuous operation for a period of three years immediately prior to application for a license, N.J.A.C. 13:2-8.3, and have been in exclusive possession and use of a clubhouse or club quarters during the entirety of that time period. N.J.A.C. 13:2-8.4. The Director of Alcoholic Beverage Control (the “Director”) may waive this provision upon a showing of special cause, N.J.A.C. 13:2- 8.5(b), and often does so in the case of CCRCs.  Officers of the club and members of its governing body may not have been convicted of a disqualifying offense pursuant to the alcoholic beverage control laws (Title 33 of New Jersey statutes) unless the statutory disqualification resulting from such conviction has been removed by order of the Director of Alcoholic Beverage Control.