City board blocks controversial taco, tequila spot planned for Roosevelt Row

A Phoenix board sided with critics of a controversial taco and tequila spot on Thursday, unanimously voting to block Federales' path to land on Roosevelt Row.

An appeal from two residents representing concerned neighbors and business owners moved the city's Board of Adjustment to renege on the approval of use permits and variances that would have allowed the development of the new concept on the northeast corner of Second and Roosevelt streets.

Federales has locations in Chicago, Dallas and Denver. Four Corners, the hospitality company that owns the concept, wants to bring the indoor-outdoor restaurant and bar — known for tacos, margaritas and shot glasses made of ice — to downtown Phoenix. But the Federales name, along with other issues, sparked concern among Roosevelt Row neighbors.

During a hearing on Thursday, board members raised concerns about parking, size and impact to the neighborhood in their questions to representatives from Four Corners.

“I am left with the impression that the applicant is trying to fit a square peg in a round hole here,” board member Ashley Hill said during the hearing. “I find it would cause an adverse impact… and I think the large showing of the community is evidence of that.”

Some 25 businesses, six community and merchant groups, three churches and nearly 300 residents opposed Federales through letters and petitions. The 7-0 vote to overturn the zoning approval was met with applause from members of the audience at City Council Chambers.

“What’s shining though for me right now is an entire neighborhood just learned that their voice matters,” Kimber Lanning said following the vote.

She spoke at the hearing as a representative of the Roosevelt Row Merchant Association. Lanning owns Modified Arts, which opened on Roosevelt Row in 1999, and has been a proponent of the area for decades. Lanning is also CEO of Local First Arizona, though the organization is not involved in the debate over the development of Federales.

Lanning said she does not anticipate this will be the last word on the fate of the proposed restaurant and bar — or the lot. But she is hopeful that the debate over Federales will spark new conversations about the parcel's future.

“I would be excited to have a conversation about imagining what could be,” she says.

Representatives from Four Corners did not immediately respond to requests for comment on Thursday. The company has 30 days to appeal the board's decision in Maricopa County Superior Court.