LINCOLN -- The Nebraska Supreme Court last Friday cited neighborhood fears of increased crime in blocking a new liquor store development in Omaha that had been approved by state regulators.

In Orchard Hill Neighborhood Association (OHNA) et al. v. Orchard Hill Mercantile, LLC (OHM) and Nebraska Liquor Control Commission (NLCC), docket# s06-228, the Supreme Court affirmed an earlier Lancaster County District Court ruling.

OHNA had appealed to the district court a ruling by the Nebraska Liquor Control Commission (NLCC) to grant OHM's retail store, Hamilton Outlet Tobacco, a liquor licence. District Court Judge John A. Colborn ruled that the relevant statute did not require issuing the licence and over-ruled the NLCC.

"Expert testimony establishes that a liquor license would negatively affect the neighborhood and that crime would likely increase," wrote Justice William Connolly. "The record contains a petition signed by more than 400 neighborhood residents opposing the liquor license."

But property values in the neighborhoods near the store are rising and the new store would have drawn 200 extra customers, a co-owner told the Omaha World-Herald. The City of Omaha is also preparing a re-development plan for the area, the paper reported.

Nonetheless, the Supreme Court agreed with "expert testimony" linking liquor stores with violent crime. "Because competent evidence supports the district court's decision, we affirm," Justice Connolly concluded.