photo by: Chad Lawhorn/Journal-World photo

This file photo shows the Quonset Hut-like building at 620 E. Eighth St. that developer Tony Krsnich hopes to convert into a restaurant and outdoor dining and recreation area.

City leaders have approved a rezoning request that will allow for a restaurant to locate in an old East Lawrence industrial building along Eighth Street, but have not granted the developer’s request to increase the level of alcohol sales allowed as part of the rezoning.

As part of its meeting Tuesday, the Lawrence City Commission voted 5-0 to approve a request to rezone approximately 2.10 acres at 620 E. Eighth St. from general industrial to commercial. Though commissioners said they were open to reconsidering the alcohol sales requirement more broadly, they did not think it was appropriate to make the change as part of a rezoning request for one particular property.

As the Journal-World reported in May 2021, a group led by Tony Krsnich, the lead developer of the Warehouse Arts District in East Lawrence, filed plans with the city to rezone the property on Eighth Street, which includes an old Quonset Hut-like building. The rezoning is the first step in converting the site into a new restaurant with an outdoor dining and entertainment area.

Based on a conservation overlay that has resulted in the prohibition of bars in the arts district, previous commissions have required businesses in the district to limit alcohol sales to no more than 45% of total gross receipts. Krsnich, who envisions a largely outdoor space that could host yard games, music, film and other entertainment, asked the city to increase the limit to 60% as part of the rezoning request.

“We are not asking for a waiver on alcohol requirements; we are simply wanting something that is achievable and shows good faith,” Krsnich said. “And I believe I’ve done that with this proposal.”

However, the change would have gone against the recommendation of planning commissioners. In January, the Lawrence Douglas County Metropolitan Planning Commission voted 6-4 to recommend approval of the rezoning under specific conditions, according to a staff memo. Those conditions, which are similar ones that already exist in both the arts and downtown districts, prohibit certain uses — including bar and lounge use — and require that alcohol sales be no more than 45% of total gross receipts.

The East Lawrence Neighborhood Association wrote in a letter to the commission that is was neither officially in support of or opposed to the rezoning, but did express some concerns. Those included that the rule restricting alcohol sales to only 45% of overall sales is not enough to guard against potential negative impacts on the neighborhood, and that other protections should be considered, including regulations related to operating hours, volume of outdoor music and occupancy limits of the outdoor areas. ELNA President Barry Shalinsky also spoke at the meeting, and said that allowing the property to sell more alcohol than other businesses in the district would be picking winners and losers.

Mayor Courtney Shipley said while she is open to discussing the overall alcohol sales requirements for the arts district as well as the downtown, that the commission has consistently applied the 45% requirement and that she didn’t think it was appropriate to deviate from that requirement as part of the rezoning.

“I am disinclined to do something that creates an exception,” Shipley said.

Vice Mayor Lisa Larsen also questioned whether changing the requirement for one business would give it a competitive edge, and she also thought a conversation about the alcohol requirement was warranted. Larsen said she wanted to know why that particular percentage was arrived at and whether other cities have similar rules. Other commissioners agreed, and Commissioner Brad Finkeldei indicated he would be open to both that broader conversation and other means to consider stipulations for the Eighth Street project, such as a special use permit.

Commissioners confirmed with city staff that the alcohol requirement will be considered as part of an upcoming revision of the city’s land development code.

The commission was still discussing the possibility of reconsidering the city’s sidewalk repair policy as of the Journal-World’s print time.