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Judge Sides With City Of Okoboji In Liquor License Denial

November 22, 2014

(Okoboji)– Score one for the city of Okoboji in the ongoing round of legal challenges between the city and businessman Butch Parks.

In a ruling handed down Wednesday, District Judge David Lester sided with the city in it’s denial of a liquor license for the O’Farrell Sisters restaurant, which Parks owns.

The city council on June 9th, 2004 denied a six month Class C liquor license with Sunday sales priviliges for Parks on the basis the proposed sale of alcohol at O’Farrell Sisters would constitute an expansion of a non-conforming use that had been discontinued for atleast a year which would, in turn, violate the city’s zoning ordinance. Parks appealed the denial to the state. An Administrative Law Judge issued a decision affirming the city’s denial. Parks then appealed that decision to the Administrator of the Iowa Alcoholic Beverages Division. Administrator Lynn Walding issued a final decision affirming the Administrative Law Judge’s decision, subject to the outcome of court proceedings on a zoning issue.

In his ruling, Judge Lester sites passage of a 1978 amendment to Okoboji’s Zonining Ordinance, changing the zoning of the O’Farrell Sisters property from Commercial to Single Family Residential. The property at that point became a legal pre-existing non-conforming use. The city contended that since a bar hadn’t been operated from the premises since October 31st, 1994 that the non-conforming bar use is a discontinuance. Parks argued that was not the case as the property had been operated as a commercial business for atleast the past 47 years. Judge Lester also states in his ruling that while a bar, restaurant, nightclub or cocktail lounge are permitted uses in the city’s Commercial District, that such operations are NOT allowed in Residential Districts.

Parks also contended the city’s rezoning of the O’Farrell Sisters Restaurant to Residential constituted “spot zoning”. Judge Lester also sided with the city on that issue, saying adjacent property to the west and south of O’Farrell Sisters is also zoned Residential, and that while property to the north and east of there is zoned Commercial, that it’s primary use is residential.

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