Tempe Development Review Commission Regular Meeting – June 25, 2024

The Development Review Commission (DRC) convened on Tuesday, June 25, 2024, to review several land use applications. The meeting included the unanimous approval of a consent agenda covering five items, a public hearing regarding a request by Dimes Cabaret to extend its operating hours for entertainment use, and farewell remarks from a departing commissioner.

Consent Calendar

• Approved the May 14, 2024 study session and regular meeting minutes.
• Approved the May 28, 2024 study session and regular meeting minutes.
• Approved the consent agenda (Items 3, 4, 5, 7, 8) unanimously. The approved items were:
  • Item 3: Use Permit for intensification of a tobacco retailer (High Maintenance Smoke Shop) at 411 S. Mill Ave., Suite 103.
  • Item 4: Use Permit for vehicle sales and service (Rivian Service Center) at 7340 S. Kyrene Rd.
  • Item 5: Use Permit for vehicle repairs (Lift-N-Wrench) at 3233 S. McClintock Dr.
  • Item 7: Use Permit for a second-hand store (Arizona Golf Works) at 1920 E. University Dr.
  • Item 8: Zoning Map Amendment, Planned Area Development Overlay, and Development Plan Review for Vale Student Housing – an eight-story, 279-unit mixed-use development on 3.88 acres at 921 E. Apache Blvd.

Public Comments & Testimony

• Darlene Justice (North Tempe resident since 1965) expressed concern about the potential for after-hours alcohol consumption in the parking lot, citing the nearby Dream Palace. She requested that the permit require a 21+ age limit after 2 a.m. and a strict no-re-entry policy.
• Kim Gaffney Loza (North Tempe resident) voiced concerns about the high number of police calls to surrounding adult entertainment businesses and questioned the viability of the business plan once alcohol sales stop at 2 a.m.
• Connor McGilvra (Chandler resident, Dimes Cabaret employee) spoke in support, stating the extended hours would allow him to increase his hours and income.
• Anna O'Daniel (Scottsdale resident, industry employee) expressed support, citing the positive environment and the need for more late-night entertainment.
• Steve Tully (attorney for Todd Borowski) argued against approval, claiming the current operation violates state law and city ordinance because of its proximity to public recreational areas. He further contended that the original 2006/2007 settlement agreement between the city and a prior owner was improper.

Discussion Items

• Dimes Cabaret – Use Permit for Extended Hours (Item 6): The applicant, represented by David Palinger and Benjamin Bach, requested a Use Permit to extend the hours of the existing entertainment use from the current 2 a.m. closure to 6 a.m. The site is located at 910 N. McClintock Dr. in the General Industrial/Rio Salado Overlay District. The applicant stated that after 2 a.m., the establishment would offer pool tables, cornhole, giant Jenga, food, non-alcoholic beverages, and dancing by fully clothed dancers. They emphasized that the business would operate as a private club, admitting only patrons 21 and older, with a no-re-entry policy to prevent loitering or alcohol consumption in the parking lot. Security measures include 56 cameras, veteran staff, and frequent parking lot patrols.
  • Staff Presentation: Planner Lily Drosos reported that the building dates to 1978 and that a use permit for a nightclub with live entertainment was originally granted in 2002 (Club Macarena), later transferred to Elite Cabaret in 2022, and then to Dimes Cabaret in January 2024. A violation for operating past 2 a.m. occurred in February 2024. Staff completed a site inspection and recommended approval subject to conditions: all prior use permit conditions remain in effect; all site modifications must receive permits and pass inspections before the extended hours use begins; and lighting must be brought to code compliance. Staff received one call of inquiry, 18 emails in support, and one in opposition.
  • Legal Context: Deputy Director Ryan LeVake clarified that the application is solely for expansion of live entertainment hours, not for an adult-oriented business. He explained that the 2006/2007 settlement agreement, which allowed operations through a lot split, has been terminated. The current owners have properly transferred all entitlements. State and city adult-use separation requirements are now aligned.
  • Commission Discussion: Commissioners asked clarifying questions. No substantive opposition was raised during deliberation.

Key Outcomes

• Minutes Approval: The minutes from May 14 and May 28, 2024, were approved unanimously.
• Consent Agenda: Items 3, 4, 5, 7, and 8 were approved unanimously as presented. No public speakers came forward to contest their inclusion.
• Dimes Cabaret Use Permit: Motion by Commissioner Miller, seconded by Commissioner Redman, to approve the application with the conditions specified by staff. The motion passed unanimously (6-0). The permit allows the entertainment use to operate from 2 a.m. to 6 a.m., subject to compliance with existing permits, site modification approvals, and lighting standards.
• Commissioner Farewell: Commissioner Don Cassano thanked staff, fellow commissioners, and the City of Tempe as he concluded his six-year term on the commission.
• Next Meeting: The DRC will next meet on July 23, 2024, for its regular meeting.