Mitchell board recommends conditional‑use approval for on‑sale alcohol at Arnie’s, refers matter to Board of Adjustment

The Mitchell board voted to recommend approval of a conditional‑use permit for on‑sale alcohol at 1218 East 1st Avenue, the convenience store known as Arnie’s, and referred the application to the Board of Adjustment for final hearings.

Staff told the board the applicant, identified in the packet as NIEW LLC, seeks authorization for on‑sale alcohol sales within the existing building footprint and has submitted a parking plan. Staff also noted that neighborhood notices produced five in‑favor responses and two opposed. The property is zoned Neighborhood Shopping; staff said the zoning category was amended this year (Aug. 25 was cited in the meeting) to allow on‑sale alcohol as a conditional use.

Attorney Jim Taylor, representing the owners, told the board the owners have no plan to expand the building and "it's not their intent to operate a bar here," and that any interior work would be limited to separating a gaming area from retail and meeting licensing requirements. An applicant who spoke at the podium described placing a small number of video‑lottery machines "in the corner" and said the store would offer malt beverages and wine rather than hard liquor.

Local resident Martin Iles, who said he has lived near Arnie’s for more than 40 years, urged the board to deny the permit, arguing the neighborhood is still primarily residential and that a school, hospital, church and park remain near the site. "There's still school right down the street," Iles said, urging the board to consider impacts on families and future residents.

Board members questioned parking and deliveries. Staff said an additional four parking spaces would be required under the ordinance changes and that the South Dakota rules governing video lottery licenses can affect internal layout and staffing requirements; the applicant said distributors would be directed to use the alley to avoid blocking neighborhood driveways. One board member also noted recent installation of stop signs at the intersection and referenced an earlier traffic study that identified ingress/egress concerns.

After discussion and public comment, the board took a roll call vote. Members calling "Yes" included Osterlue, Sunny, Eloyed and Genslinger; the motion carried. Staff said the matter will be heard by the Board of Adjustment next Monday at 6 p.m., where the final decision and any conditions will be set.

What’s next: The Board of Adjustment will hold the public hearing Monday at 6 p.m.; council action is needed for the liquor license if the land‑use approvals proceed. The board noted that any building modifications or new doors will require plan review and a building permit and will return to municipal review as required.