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Planning commission approves Show Low Cafe liquor permit despite landlord-tenant dispute
Summary
The Show Low Planning and Zoning Commission approved a conditional-use permit allowing Show Low Cafe to serve alcoholic beverages other than beer and wine at 480 W. Deuce of Clubs, but staff and the city attorney said lease disputes between private parties are outside the commission’s jurisdiction.
The Show Low Planning and Zoning Commission unanimously approved Conditional Use Permit 60204271 at its February 2025 meeting, allowing Show Low Cafe, operated by applicant Cody Lawyer, to serve alcoholic beverages other than beer and wine at 480 W. Deuce of Clubs (APN 210-09032 A).
Planning staff recommended approval, saying the request is consistent with the City of Show Low General Plan and the property’s C-2 general commercial zoning. Staff noted transmittal memos were sent to affected agencies and property owners within 300 feet; no applicable agency comments were received that would preclude approval. The City Council previously recommended approval of the applicant’s application to the State Liquor Board in October 2024.
City Attorney (staff) reiterated that disputes over private lease provisions such as noncompete clauses are not within the commission’s authority. "Leases including non-compete clauses are not within the jurisdiction of the city, including the Planning and Zoning Commission," the city attorney said during the hearing.
The public hearing drew numerous speakers in opposition, primarily representatives and employees of Rocky's Cocktail Lounge, which operates in the same building above the cafe. Eva Haviland, identified in public comment as the owner-operator of Rocky's Cocktail Lounge, told the commission she holds a lease with a noncompete clause and that approval would breach that contract. "A lease agreement is a law binding contract between landlord and tenant. When a law binding contract is disregarded, it is breaking the law," Haviland said in a prepared statement.
Others who spoke against the permit cited potential job losses, accessibility concerns for patrons unable to use upstairs stairs, and damage to a longtime neighborhood business if the downstairs cafe began selling hard liquor. Elizabeth Blevins, an attendee, said approval would be "extremely detrimental" to Rocky's and could lead to litigation and a vacant commercial space if the landlord does not honor existing leases. Several employees of Rocky's said approval could threaten their employment.
Supporters of the cafe's permit argued the cafe has operated successfully without hard-liquor sales and that adding beverages could help the business recover after an extended closure. Cody Rowe, a long-time Show Low Cafe employee, said many patrons ask for beer or wine with meals and that the cafe's hours and customer base can complement, not necessarily replace, Rocky's business.
After discussion, Vice Chair Roberts moved to approve CUP 60204271 subject to staff recommendations; Commissioner Adams seconded. The motion passed unanimously. Director-level staff reminded the commission that the action is limited to the conditional-use permitting question; if parties have contractual disputes they must pursue remedies in civil court. As with other permits, a seven-day appeal period to the City Clerk applies.
The commission’s decision authorizes the cafe to seek and operate under the broader liquor service at the site; staff noted building-code questions and noncompete lease enforcement are matters for other city departments or private parties, not the Planning and Zoning Commission.
