City Clerk Ashley Foster told the council that La Herradura, 437 N. Main, has been operating since 2019 and renewed an annual liquor license each year, but a 2024 business restructuring (dissolving an LLC and reconstituting as a partnership) required a transfer that was not completed.

Foster said the state discovered the change during the renewal process and advised that, because La Herradura’s license is an unlimited retail license, the business should relinquish the old license and apply for a new one. "They are not allowed to sell alcohol until a new license is issued," Foster said. She added that the state is not seeking penalties in this case and that the restaurant has submitted the requested documents and the application is under state review.

Foster told council that if the local council approves a license at the next regular session and the state provides final concurrence, the city could issue the new license and La Herradura could resume alcohol sales, potentially within the month. The clerk’s office is coordinating with the state’s review process and staff said the state has indicated support for considering the new application this year.

No formal council action was taken at the study session; staff described the situation and the administrative path to reissuance.