The Mitchell City Council, acting as the Board of Adjustment, approved a conditional use permit that allows New LLC (doing business as Arnie’s) to add on‑sale wine and beer and a segregated video gaming area at 1218 East First.

Jim Taylor, representing New LLC, told the council the plan is to install a “couple of video gaming machines” and that “video gaming is highly regulated by the South Dakota Gaming Commission.” Taylor said the applicant purchased the business in its prior off‑sale configuration and called the change a “new venture,” emphasizing the intent to remain a neighborhood convenience store rather than a bar or casino.

Councilmembers asked whether the on‑sale license would permit full liquor (staff: wine and beer only) and whether the gaming area would be walled off. Planning staff and the applicant explained the conditional use permit allows council to impose conditions and that alcohol‑license boundary maps and the State Gaming Commission process would follow if the permit is approved. Staff noted the maximum under state rules is 10 machines per license but that the applicant expects only 2–4 given available space.

Resident Martin Iles, who lives near Arnie’s, urged caution and opposed the change, saying the neighborhood has not meaningfully changed since a similar application 15 years ago and warning that “we all know gambling and alcohol is an addiction.” Councilmembers acknowledged those concerns but also discussed consistency with other convenience stores and the neighborhood’s changing retail mix.

Councilmember Bolthammer moved to approve the conditional use permit; the motion was seconded by Councilmember Smith. The roll call recorded Barrington Aye, Bathke Aye, Charx Aye, Smith Aye, Goldammer Nay, Dozier Aye and McCardell Aye. The motion carried 7–1. The Board of Adjustment adjourned and the council reconvened in regular session.

The permit approval allows the applicants to proceed with the next required steps: filing the on‑sale alcohol license application with the city, submitting a boundary map for the licensed area for council review, and applying separately to the South Dakota Gaming Commission for a video‑gaming license. The council did not set additional conditions on the permit during the meeting.

Next steps: the applicant will pursue the city alcohol license transfer and the state gaming license; any required boundary map will return to council for approval.