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RICHMOND -- Gov. Bob McDonnell's plan to privatize liquor sales in Virginia would triple the number of retail establishments where distilled spirits can be purchased in the state and generate a one-time windfall of at least $458 million to finance transportation projects, the administration said Wednesday.

McDonnell's complex privatization proposal would generate about $20 million less in annual general fund revenue than Virginia's state-run liquor operation is expected to produce this year, but the governor said the amount "is not that big a deal" when weighed against the long-term benefits of his plan.

The governor hopes to win support for his plan, a major initiative of his administration, in a special session of the General Assembly that likely will occur in November.

"It's the right thing to do -- get big money for transportation, get government out of a monopoly -- and I'm going to now spend some time on the specifics of the proposal with a number of legislators and convince them that this is a good business model," McDonnell told reporters after aides unveiled the plan Wednesday afternoon.

Under the plan, the state would auction 1,000 retail liquor licenses to the highest bidders in three categories, granting 600 licenses to large grocery stores and big box chains, 150 to small package and specialty stores, and 250 to convenience stores. No single company will be allowed to hold more than 25 percent of the licenses at any level. Virginia now has 332 state-run liquor stores.

The state also would auction an unlimited number of wholesale licenses.

McDonnell said many of the licenses would go to existing retailers that already sell beer and wine and that privatization won't trigger a proliferation of liquor stores, a prospect some legislators and critics have feared. His plan also would increase the number of enforcement agents employed by the Department of Alcoholic Beverage Control by 25 percent.

"We're not talking about new stores; generally, we're talking about new shelf space," McDonnell said. "That's the magic of the business model."

Minimum bids will vary based on the level of license being auctioned and the area being served. Bids for licenses in rural areas would be set lower than those in highly populated areas. The plan guarantees licenses for areas now served by a state liquor store, but most will be allocated based on population density.

To win support for his plan in the politically divided legislature, McDonnell likely will have to convince lawmakers that privatizing liquor sales can produce as much ongoing revenue as the state-controlled system. And he may have to address concerns about his plans to make up for revenue the state now generates through profits and excise taxes levied at its ABC stores.

Under McDonnell's plan, the state would levy an excise tax of $17.50 per gallon of liquor that would be applied at the wholesale level. The state also would impose a 2.5 percent "convenience fee" on restaurants and bars that purchase liquor from wholesalers instead of retail stores. McDonnell's administration contends the latter proposal is not a tax increase on restaurants because those businesses will benefit from wholesale discounts and delivery.

The governor's plan did not include a 4 percent tax on mixed drinks sold in restaurants and bars, a proposal that had surfaced in some news reports during the past week.

Large retailers are rallying behind the governor's plan. Some faith-based organizations have raised concerns about the societal impacts of making liquor more widely available.

Sen. Mary Margaret Whipple, D-Arlington, said she still had "a lot of concerns about this whole issue" after hearing a presentation from McDonnell's administration Wednesday. Whipple, the chairwoman of the Senate Democratic Caucus, is a member of McDonnell's government reform commission. The panel will vote on the liquor proposal next month.

Whipple raised concerns about the number of licenses being sold, additional state enforcement costs and relying on liquor license proceeds for transportation revenue. In conversations with people in her district, she said, "not a single constituent has been in favor of this."

Lawmakers in both parties have indicated that any privatization plan must produce the same amount of revenue as Virginia's state-run liquor operation. House Speaker Bill Howell, R-Stafford County, said the governor's plan comes "pretty close" to the $324.2 million the state expects to generate in this fiscal year and said the administration's projections may be conservative.

"The bottom line is we're very close to matching the revenue, and I think, in fact, that we may surpass it," said Howell, who also sits on McDonnell's reform commission.

McDonnell said the administration also was conservative in estimating the one-time revenue from the sale of licenses. The governor said he expects the auctions to generate at least $500 million. Those proceeds will go to a new "transportation infrastructure bank" that will award loans and grants to help finance road, rail and transit projects.

McDonnell said those funds could be used to leverage additional dollars and get long-stalled projects under way.