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*Concur with the Plan Commission’s Recommendation and Adopt an Ordinance Approving a Zoning Ordinance Text Amendment by Adding Cocktail Lounge as a Permitted Use
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Introduction
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The Petitioner, Village of Oak Park, seeks a Zoning Ordinance text amendment by adding the use and definition for Cocktail Lounge as a permitted use in the following zoning districts: NC - Neighborhood Commercial Districts, HS - Harrison Street District, and the DT - Downtown Districts.
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Recommended Action
Adopt the Ordinance.
Prior Board Action
There is no prior Board action associated with this item.
Background
Various village departments have been active in aiding interested business owners in searching for locations for this type of business use. Staff have conducted visits to, and had discussions about, potential locations for this use. Village staff have also organized and conducted walk-throughs of locations with a prospective business owner. The Office of Economic Vitality staff continues to provide guidance on possible locations within Oak Park.
Neither the Oak Park Zoning Ordinance nor the Liquor Code allows this specific type of land use without an associated restaurant. Village Code provisions do provide for very specific alcohol-related establishments, such as The Beer Shop, which is categorized as a craft brew lounge, where only craft beer is allowed for sale. This establishment allows patrons to bring in food from other establishments and offers some pre-packaged items. Kingslager on Roosevelt Road, a microbrewery, provides a tasting room for patrons that offers pre-packaged items as well as allowing outside food on the premises.
Two other establishments resemble a “cocktail lounge” but have restaurant food available for sale on premises: Kettlestrings Grove and Mira Social. Both are located on Marion Street in the Pleasant District. These establishments resemble a cocktail lounge, but with food attached. Kettlestrings Grove is connected to Betty’s Pizza (same ownership), and Mira Social has a kitchen with a limited menu.
Staff is proposing Zoning Ordinance text amendments that would allow, by right, a cocktail lounge up to a maximum of 2,000 square feet of floor space. The maximum square footage does not count toward or include a kitchen area. This use would be allowed on Harrison Street (Arts District), Chicago Avenue (Harlem and Austin District), Lake Street (Austin District), South Oak Park Avenue (Southtown), and the greater Downtown area (DTOP, Pleasant & Hemingway). These districts are viewed as more conducive to a smaller, more intimate venue. Any cocktail lounge establishment would be required to provide limited food offerings at a minimum, such as hot or cold appetizers, pre-packaged foods, or snacks. A proposed menu must be submitted with a liquor license application. Cocktail lounges can also support live music as an incidental use.
The proposed use would be defined in the Village Zoning Ordinance as follows:
“An establishment that serves alcoholic beverages for on-premise consumption and serves appetizers, snacks, or pre-packaged food items for consumption on the premises in a manner that is incidental to the sale of alcoholic beverages. Live entertainment and music may be provided as an ancillary use to the cocktail lounge. A Cocktail Lounge shall not exceed 2,000 square feet, excluding the square footage devoted to a kitchen. A cocktail lounge includes a speakeasy or similar lounge.”
Timing Considerations
The Village Board must act on the application within 60 days of receipt of the Plan Commission recommendation. If the Village Board does not act upon the application within 60 days of receipt, the application is deemed denied.
Financial Impact
The cost of the Public Notice was $280 from GL account 1001.46202.101.550652
Operations Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery. Approximately ten (10) hours of staff time have been put toward this item. Managing special use permit applications is a standard operating function of the Planning & Urban Design Division within the Development Services Department.
DEI Impact
There is no DEI impact associated with this item.
Community Input
The Plan Commission held a public hearing on March 5, 2026. There was no one in attendance in opposition or support of the amendments. The Plan Commission recommended approval of the amendments with a 6 - 2 vote. Commissioners Betancur and Beckwith voted in opposition as the amendment did not include the MS - Madison Street Zoning District as a district that would allow cocktail lounges. The Findings of Fact report is attached to this agenda item and can be viewed at the Commission TV link: <https://www.oak-park.us/your-government/citizen-commissions/commission-tv>
Staff Recommendation
Staff recommends approval of the amendments.
Advantages:
• This amendment would support the Village Board’s goal of increasing visitor destinations and nightlife.
• Assuming the increase in evening foot traffic, this use would support nearby restaurants and generate additional local sales tax revenue.
• This will allow additional opportunities for nightlife within the community.
Disadvantages:
• Additional nighttime activity may require additional Police presence.
• Potential noise increases during the night hours.
Alternatives
Alternative 1:
The Board can choose not to adopt the text amendments.
Advantages:
• Maintains the current night activity and vehicular traffic.
Disadvantages:
• Staff would have to consider other opportunities to support the Village Board's goals of increasing tourism and nightlife activity.
Alternative 2:
The Board can remand the proposed text amendments back to the Plan Commission.
Advantages:
• This would allow for more review and possible modifications of the amendment, including allowing cocktail lounges in the MS Madison Street Zoning District.
Disadvantages:
• This action could result in delays to any potential business owner.
Anticipated Future Actions
If the amendments are approved, Staff will update the appropriate articles in the Zoning Ordinance and post the updated Zoning Ordinance on the Village’s website.
Prepared By: Mike Bruce, Village Planner/Planning & Urban Design Manager
Reviewed By: Craig Failor, Development Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Ordinance
2. Findings of Facts
3. Staff Report