Federales: ‘Fix was in’ to block taco, tequila spot from Roosevelt Row | Phoenix New Times
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Federales: ‘Fix was in’ to block taco, tequila spot from Roosevelt Row

The restaurant accuses a Phoenix board of succumbing to "prejudice and political influence" in blocking its efforts to open.
Federales' fight to build a restaurant and bar on Roosevelt Row continued with a Nov. 17 court filing.
Federales' fight to build a restaurant and bar on Roosevelt Row continued with a Nov. 17 court filing. Four Corners
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Federales, the controversial Mexican chain restaurant and bar, alleged in a court filing that the decision by a Phoenix board to stop it from building its first Arizona outpost on Roosevelt Row was the “the result of prejudice and political influence."

The accusation was included in a brief filed on Nov. 17 in Maricopa County Superior Court, the latest step in the company's appeal of the June 1 decision by Phoenix's Board of Adjustment. 

The filing by Federales outlined its claim that the board incorrectly reneged on the approval of use permits and variances. The Chicago-based restaurant group Four Corners needs those permits and variances to begin transforming a vacant lot on the northeast corner of Second and Roosevelt streets into an airy indoor-outdoor spot serving tacos and tequila.

The board voted 7-0 to overturn approvals from a zoning administrator. The decision sided with two residents who appealed on behalf of a concerned group of 25 businesses, six community and merchant groups, three churches and some 300 residents. Federales presented 28 letters of support from business owners and investors.

Both Federales representatives and those opposed to the restaurant and bar called the pushback “unprecedented."
click to enlarge Downtown Phoenix aerial view
Federales wants to build a restaurant and bar on a vacant lot at the northeast corner of Second and Roosevelt streets, which has been used for gatherings for First Fridays, yoga and special events.
Danny Upshaw

Federales alleges ‘abuse of discretion’ by Phoenix board

Despite the controversy, Federales and its attorneys asserted that it met the criteria to receive the use permits and variances it requested. They also noted the uniqueness of the lot was the driver for some of its variance requests.

The owners likewise pointed to other restaurants and bars in the vibrant, family-friendly, walkable area to argue that it fit with the neighborhood. The Federales filing also noted several concessions they offered to make, including changing the restaurant's name and providing a second entry to mitigate any bottleneck of foot traffic with those waiting to enter.

The denial by the board amounted to “an abuse of discretion,” Federales’ legal team wrote in its brief. Federales is represented by Jack​ Wilenchik in this case. He has represented former Sheriff Joe Arpaio and Cyber Ninjas, Inc., the Florida-based tech company that the Arizona Senate hired for its partisan election audit.

“It appeared to (Federales) that the ‘fix was in’ based on the hearing and vote, and that political influence behind the scenes was at play,” the brief said.

A spokesperson for the city of Phoenix and representatives of opponents to the restaurant declined to comment on the recent court filing. Opponents have previously pointed to several concerns and seeds of distrust sown by what they said Federales representatives have promised versus what people have experienced in other cities where the company operates. It has locations in Chicago, Denver and Dallas with a Nashville location in the works.
click to enlarge Federales City of Phoenix hearing
Neighbors of a proposed Federales appealed the initial approval of permits and variances needed to develop the lot.
Sara Crocker

Residents: Federales a restaurant or nightclub?

Critics of Federales have questioned whether the restaurant is something more.

“Be very aware (Federales) is not a restaurant, this is a club,” Denver artist Andi Todaro wrote in a May 2 letter that critics of the Phoenix outpost included in their appeal and provided to Phoenix New Times. Todaro also wrote that the addition of Federales in Denver's River North Art District “has had a very ill effect not only on the neighboring businesses but on the safety and appeal of the district as an arts hub.”

During the Phoenix Board of Adjustment hearing in June, parking was a primary concern.

Snell & Wilmer’s Michael Maerowitz, who represented Federales at the hearing, told the board that the restaurant and bar had a verbal agreement for parking at the Ten-0-One Garage about two blocks away — but not a formal commitment. Federales has since secured a parking agreement with the garage, as well as an alternative parking solution, Matt Menna, owner of Federales’ parent group Four Corners, said in an email following the board’s June decision. The company also cited that in its Nov. 17 court brief.  The lot is 520 feet away, falling outside the city’s requirement of being within 300 feet.

The team for Federales did not immediately respond to requests for additional comment.

In the brief, the legal team for Federales asserted that the board's decision was “based on factors that are not legitimately supported by any facts or real concerns.”

The city and the two residents who initially appealed the zoning decision, Sean Johnson and Kenny Barrett, have until Dec. 22 to submit their response.
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