GREELEY Colo. The City of Greeley will not contest a recent court ruling granting a beer-and-wine license to a branch of the 11-unit marijuana-themed Cheba Hut Toasted Subs chain, which earlier had its license application rejected by the Greeley Liquor License Authority.
The city council voted unanimously Tuesday not to appeal the district court's decision to overturn the Liquor License Authority’s rejection of Cheba Hut’s license application, said city attorney Richard Brady.
Following the vote, “the city immediately signed and forwarded the license to state liquor officials,” Brady said.” He added, “It is anticipated that the state will approve and issue the completed license to Cheba Hut next week.”
Scott Jennings, president and chief executive of Cheba Hut, who also operates three franchised locations, saw a beer-and-wine-license application for his Greeley restaurant denied in April.
Contending that Judge Robert Frick, the licensing authority, denied the application for unlawful reasons — allegedly on the grounds that Frick didn't like the chain's counterculture theme — Jennings appealed the matter and prevailed in a ruling last week by Judge Daniel Maus of the District Court of Weld County Colorado.
In his ruling overturning the license rejection, Maus was critical of the licensing body's denial "in spite of the seemingly overwhelming evidence in favor of the issuance of a liquor license." He further stated: "It appears clear to this Court that the licensing authority denied plaintiff's liquor license application based in large part on plaintiff's use of marijuana-themed marketing and, in the process, punished plaintiff for exercising its First Amendment rights while at the same time acknowledging that plaintiff had such rights."
Cheba Hut, which is based in Fort Collins, Colo., franchises all 11 of its units.
Contact Alan J. Liddle at [email protected]