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Middletown restaurant allowed to serve liquor after 100-year-old law overturned

It is due to a law dating back to 1918, even before Prohibition banned businesses within 200 feet of a church from selling hard liquor.

Stephen O'Leary

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Sep 17, 2025, 5:36 PM

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For nearly two decades, Juan Avalos has been serving tacos at his restaurant, Taco Factory, without the one thing many customers crave alongside their meal: tequila.

It is due to a law dating back to 1918, even before Prohibition banned businesses within 200 feet of a church from selling hard liquor.

That restriction kept Avalos and two other downtown Middletown restaurants from offering spirits, even as other nearby establishments were allowed to serve alcohol.

“It’s a 1918 law that nothing can open next to a church,” Avalos explained. “I cannot get them to stay based on a wine product. They want the real thing — they want the tequila.”

Avalos tried alternatives like agave wine, but says customers weren’t interested.

“This is our agave wine,” he said, holding up a bottle. “But people aren’t buying it literally.”

Now, thanks to a newly signed law by Gov. Kathy Hochul, that was introduced as a bill by Sen. James Skoufis, Avalos and the other affected businesses will finally be allowed to apply for a liquor license.

“We’re not trying to derail society,” Avalos said. “We’re just trying to pair liquor with our food.”

Avalos says it will be a game changer, not just for his business, but for the local economy.

“It will create more jobs. I’ll hire a full-time bartender and full-time wait staff.”

To move forward, Avalos needed a letter of support from the neighboring church, which he received, and approval from both the state and city planning board. He says both have already given him the green light.

“Once we get the liquor license, things will change — not only for downtown, but for my business as well.”

For now, the law applies only to Middletown, but officials say it could expand to other parts of New York state in the future.

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