Bar and hotel owners are preparing for what their industry calls a "monumental shift" in the Saskatchewan liquor landscape.

As part of an effort to modernize liquor sales, in October anyone with a retail store permit to sell alcohol will be allowed to privately sell or trade that permit.

By October, hotels operating offsales will soon be able to privately sell their retail liquor permits without being forced by law to include the hotel as a condition of sale. (CBC) "It's going to fundamentally change," said Jim Bence, the president and CEO of the Saskatchewan Hotel and Hospitality Association.

"Depending on the location or the community that they're in, the [permit] value could go through the roof," he said.

Retail store permits no longer attached to pubs, hotels

For decades, liquor sales in Saskatchewan were restricted to government-run stores, and offsale outlets attached to a hotel or a tavern. If the hotel or tavern changed hands, the liquor permit went with it.

"It's going to be supply and demand," said Jim Bence, president of the Saskatchewan Hotel & Hospitality Association. (CBC) That ends Oct. 8, as the province relaxes liquor regulations and allows permits to be sold independently.

Bence said he's been fielding dozens of calls this spring from hotel and bar owners.

"People are asking what's my liquor licence worth?" said Bence. "That's the million dollar question."

Buyers must remain in community, but can set up shop in new location

New permit-holders will be obligated to keep the retail liquor store in the same community, but with municipal approval, they can open the store in a new location.

How are you going to be competitive against a giant who moves into a parking lot across the street? - Jim Bence, president of the Saskatchewan Hotel & Hospitality Association

"Competition could move into your neighbourhood in a big way." said Bence. "How are you going to be competitive against a giant who moves into a parking lot across the street?"

As of March 31, 2018, the Saskatchewan Liquor and Gaming Authority had issued 686 public and private retail liquor store permits.

In 2016, Sobeys and Federated Co-Ops were among the first retailers to expand from grocery sales to standalone private liquor stores. (Associated Press) The provincial regulator has no plan to issue more.

Bence said one private agreement in the Regina area has already led to a conditional sale of a retail liquor permit for roughly $800,000.

"Right now it's a commodity that's never been sold on the open market before," he said. "It will be supply and demand."

Current permit fees range from $150 to $500 per year

The annual fee for a retail liquor store permit is $500 for retailers in cities, $250 for retailers in towns and $150 for retailers in villages and hamlets.

In 2015, the province announced it was privatizing 40 liquor stores. Of those, 39 have now been closed and converted into private retailers, with an additional 11 private retailers opening.

SLGA last sold permits to operate private liquor outlets through a public tendering process in 2016.

"In order to provide some stability to the industry as Saskatchewan transitioned to this new liquor retail system, a two-year moratorium on the sale of retail permits and/or relocation of existing retail stores was established," an official at SLGA wrote in an email to CBC News.

Value of permit determined by buyer and seller, not SLGA

"The moratorium will end on Oct. 8, 2018 at which time retail store permittees will be able to sell the rights to the permits if they choose."

SLGA said it will make no attempt to determine the value of a permit, nor will it require public notice be given when a permit changes hands.

"The value of a permit is determined between the buyer and seller," the official wrote.

He noted those hoping to buy a permit still need to be deemed "of good character" by SLGA, and meet existing liquor permit qualifications.

Officials at SLGA said once cannabis retailers are established and the stores are operational, those retail permit holders are also allowed to sell their licences privately, although no permittee may hold more than 50 per cent of permits in any one community.