The Iowa City City Council has denied the Union Bar and Grill’s request to renew its alcohol license for allegedly violating zoning regulations.
The vote follows the city staff recommendation, which determined Union Bar and Grill meets the zoning definition of a drinking establishment due to its late-night hours. Under Iowa City law, bars in the central business district must be at least 500 feet from other drinking establishments.
The council voted unanimously to deny the business’s liquor license renewal and its request to expand where they can serve alcohol during its regular meeting on Tuesday, April 21.
Councilor Laura Bergus recused herself from the discussion due to a potential conflict of interest.
“It was alleged that I have a conflict of interest in consulting with our council,” Bergus said. “I’m not required to recuse myself, but to avoid the appearance of impropriety, I will be sitting this one out.”
How Iowa City zoning impacts Union’s alcohol license
Union’s premises update request sought to expand where alcohol could legally be served at the business. Union Bar and Grill’s existing Class C liquor license, which expires on April 30, covers only the basement level and second floor. The business applied to add the first floor as an area where alcohol could be sold and consumed.
The Union Bar and Grill is initially classified as an eating establishment in the central business district and can only serve alcoholic beverages from 11 a.m. to midnight, city officials said. Local police said they have observed Union regularly operating well past midnight, which would classify it as a drinking establishment under the current Iowa City zoning code.
Downtown drinking establishments must be at least 500 feet from another drinking establishment under Iowa City’s Ordinance 09-4341.
In November, shortly after the bar opened, co-owners of the Union Bar and Grill, Tracy Barkalow and Brian Hughes, declined to comment on concerns about the 500-foot ordinance in an interview with the Press-Citizen.
“We meet all the code requirements, and more importantly, all state laws and city requirements,” Barkalow said in November. “We’re not going to go into detail on that at this time.”
Union Bar and Grill dispute echoes ongoing Fieldhouse zoning battle
Richard Davidson, an attorney representing Union Bar and Grill, argued the city is misapplying its zoning code, saying it shouldn’t be able to take away a state-granted license by reinterpreting zoning rules.
“There is nothing before the council that would allow the council to determine that the premises cannot be operated on the first floor,” Davidson said.
Davidson argued that the Union Bar and Grill is complying with state liquor laws.
He said the council’s action is “premature,” and “a little bit of déjà vu,” referencing a back-and-forth battle that started in January, after Iowa City leaders unanimously denied the renewal of the Fieldhouse Bar & Grill’s license, stopping what they believe was a “clear” violation of city code.
In April, a Johnson County magistrate ruled that the new Fieldhouse Bar & Grill, also owned by Barkalow, violates city code as a drinking establishment.
The Fieldhouse denial is being appealed in district court, and a ruling will be made “sometime toward the end of May or early June,” Davidson said.
What happens next?
Officials disputed Davidson’s argument, saying that the city’s zoning code governs where alcohol-serving may operate regardless of state licensing.
“Why we are here, just so everybody understands this, is because the 500-foot setback is one of a raft of laws, ordinances and policies the city has to look after the health and safety and well-being of people, especially in the downtown,” said councilor Shawn Harmsen. “And this clearly violates that.”
Union Bar and Grill can appeal the council’s decision to the Iowa Department of Revenue. The business can continue operating under its existing license during the appeal process, but alcohol service on the first floor would remain prohibited.
“We will be in court, unfortunately,” Barkalow said.
Jessica Rish is an entertainment, dining and education reporter for the Iowa City Press-Citizen. She can be reached at JRish@press-citizen.com or on X, formerly known as Twitter, at @rishjessica_
This article originally appeared on Iowa City Press-Citizen: Iowa City denies Union’s alcohol license, cites zoning violation
Reporting by Jessica Rish, Iowa City Press-Citizen / Iowa City Press-Citizen
USA TODAY Network via Reuters Connect
