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Midway council grants local consent for alcohol at Zermatt Resort after public concerns over HOA finances
Summary
The council approved a conditional use permit and local consent allowing alcohol dispensing at Zermatt Resort after staff recommended standard conditions (including limits on visible alcohol signage). A homeowner raised concerns that new ownership eliminated lease payments to the HOA, calling it potential self‑dealing; the council said the dispute is a private matter and the liquor decision rests on planning and code findings.
The Midway City Council voted to grant local consent and a conditional use permit allowing alcohol dispensing at Zermatt Resort (784 Glass Resort Drive), concluding the city’s review while noting that the state must still approve the liquor license.
Planning staff described the application as a change triggered by new ownership; the applicant seeks to convert multiple existing licenses into a single hotel license with sub‑licenses for restaurants and bars. Staff recommended approval with conditions that mirror past approvals, including a requirement that no alcohol‑related signage be visible from Resort Drive or Homestead Drive. The Planning Commission unanimously recommended approval.
During the public hearing, homeowner Scott Eckersley (682 Augusta Drive) told the council that the change in ownership removed lease payments for on‑site commercial tenants and said independent owners of HOA units were absorbing assessments while the new private business operators were "operating for free." Eckersley estimated the shortfall at "close to $200,000 a year," and described the arrangement as "self dealing." The city attorney and other council members responded that the alleged private‑sector dispute is a civil matter among owners and managers and not a basis to deny a CUP under the city’s code. "From a city council perspective there's really nothing that you can do and you can't really base your decision on anything that's happening in the private sector," one councilor said.
A motion to approve the permit and accept the proposed findings and conditions passed on voice vote. Council members emphasized that any required state liquor license remains a separate process; the city's action provides local consent subject to the enumerated conditions.
The council’s packet noted past approvals for alcohol at resort properties and included standard conditions intended to limit impacts on surrounding neighborhoods. Staff said no detrimental impacts had been identified from the property’s historical use as a resort and hotel.
