The Dallas Court of Appeals recent “dry overlay” ruling could have far-reaching implications for East Dallas alcohol purveyors.

In the City of Dallas v. Dallas merchants’ group contested the City’s application of a “dry overlay” district to the South Dallas and Fair Park area. The court’s ruling upheld the City ordinance regulating alcohol-related businesses through zoning, allowing classification of all such businesses within the overlay district as “non-conforming uses”.

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A non-conforming business must stop selling alcohol, relocate, obtain a Special Use Permit, or operate as a non-conforming use until a termination request is filed with the City’s Board of Adjustment. Once a request is received, the Board must set a business termination date, taking into account amortization of the owner’s investment.

The Old East Dallas dry overly district is expected to be approved later this year. City staff and many neighborhood residents believe poorly operated alcohol-related businesses negatively impact neighborhoods, while responsible businesses will have no trouble obtaining permits to continue operations.

We’ll update you as developments occur.

The City Plan Commission recently adopted a City Code amendment to deal with “dance halls permitting dancing by persons in a state of semi-nudity or simulated nudity”. The ordinance was intended to address a widely known loophole in the City’s Sexually Oriented Business ordinance.

To help regulate the numerous clubs featuring live dancers who don’t fit the strict definition of “nudity” or “semi-nudity”, the Plan Commission recommended creation of a new “Class D Dance Hall” designation. The Class D establishments won’t be permitted within 1,000 feet of churches, schools, parks, residential areas or other Class D dance halls.

The ordinances also require public notification prior to opening, providing neighbors with an opportunity for comment. City Council approval is expected shortly. For information call City planner Ray Couch at 670-4133.

The Plan Commission recently took under advisement a draft ordinance to regulate outside sales, display and storage, following complaints from Buckner Boulevard area neighbors who believe such retailing negatively impacts their area.

The draft ordinance restricts outside sale, display and storage and requires adequate screening.

Although the Plan Commission is studying the issue, such an ordinance is likely to be adopted.

Pawn shops aren’t always considered to be good neighbors, and past City attempts to regulate locations through zoning and land-use powers have been held up in Austin. The legislature recently passed a law requiring that a city designate licensed pawn shops as a permitted use in one or more zoning classifications and prohibiting cities from imposing a specific use permit requirement on licensed pawn shops.

The City, however, prepared an ordinance allowing pawn shops in Regional Retail, Commercial Service and Community Retail districts, as long as the pawn shops are at least 600 feet (walking distance) from a residential district and at least one-quarter mile from any other pawn shop.

The ordinance meets the legislature’s standard, but it also effectively segregates most pawn shops from residential zoning. Pawn shops not meeting ordinance requirements would be non-conforming uses, raising the issue of whether the shops should be “grandfathered” (exempted) from the new ordinance.

Several areas of East Dallas are affected, and further developments will be detailed. Call City planner Ray Couch at 670-4133 for information.