Nampa council denies new liquor license for Warehouse Nightclub, cites restaurant sales rule

The Nampa City Council on May 4 denied a new liquor-by-the-drink license for the Warehouse Nightclub at 1020 First Street South after concluding the pending application did not qualify for a grandfather exception to the city's restaurant-sales rule.

The council voted to deny the license after discussion of timeline and code language. Councilman Zach Reynolds moved to deny the license under Nampa City Code 5-12-11(b); the motion carried by roll call 5-1. Mayor Debbie Cling confirmed the council's direction following the vote.

Why it matters: City code adopted a change limiting liquor-by-the-drink licenses to establishments that derive at least 60% of prior-year gross sales from food unless a liquor license was already in effect as of Aug. 9, 2024. Council members said the Warehouse applicant submitted a county/state application before that date but the city license was not yet in effect and the city code therefore requires restaurant-level food sales to qualify for a liquor-by-the-drink license.

Planning and legal staff described the timeline: the conditional use permit (CUP) for the location had been approved earlier, and the applicant submitted a city license application on Aug. 8, 2024, but did not obtain the prerequisite county and state licenses until recently. City counsel explained the CUP and liquor-license processes are distinct: a CUP application date does not lock in the liquor-license rules, and the relevant code refers to licenses "in effect" on Aug. 9, 2024.

Council discussion focused on fairness to an applicant who attempted to submit before the ordinance change and on the city's authority to apply the new restaurant-sales requirement. Some council members expressed sympathy for the property improvements underway but concluded the code language and case law counsel required denial of the new liquor-by-the-drink license; staff noted the applicant could still seek a beer-and-wine license or comply with the restaurant requirement by adding food service.

Outcome and next steps: The council's motion denied the city license application; staff will notify the applicant and file the formal decision. The applicant remains eligible to pursue a beer-and-wine license or, if it meets the restaurant-sales threshold, to reapply for liquor-by-the-drink under the current code. The council also asked staff to record clarification in the public record about the difference between land-use CUP protection and liquor-license eligibility.

Quotes (from meeting): "This applicant was subject as part of its application for a new license to the requirement of showing that no less than 60% of gross sales from the preceding 12 month operation of a licensed restaurant be derived from food services," a council member said during the motion to deny. City legal counsel explained: "A CUP and a liquor license ... are treated distinctly and differently."