Scottsdale City Council is set to decide whether Old Town Tavern, a longtime Old Town staple, can fully operate in its newly expanded digs after a months-long fight over parking. Owner Paul Mitchell moved the tavern into a larger suite next door, which triggered new zoning math that says the site needs dozens of dedicated parking spaces. The upcoming vote will determine whether Mitchell must buy into the city's in-lieu parking program, change his buildout plans, or accept a restaurant liquor license that comes with extra operating rules.
City calculations: how many spots the new venue needs
According to city planning staff, the larger space requires 58 parking spots under current zoning rules, and Mitchell is asking for 41 in-lieu parking credits so the city can instead collect money for public spaces. The planning documents also list the new address as 7330 E. Main St. and show that applications for a Bar Conditional Use Permit and a Live Entertainment permit are moving forward at the same time. Those numbers and permit details appear in the City of Scottsdale planning staff report.
The price tag: 'in-lieu' parking
Under the city's formula, the missing parking could be covered by paid in-lieu credits, a fix that would cost roughly $80,000 a year for this location, according to AZ Family. Mitchell told reporters he was ready to pay that tab, but council members shot down the lump-sum approach earlier this spring and bristled at the idea of simply swapping cash for parking stalls. That standoff is what sent the owner and city staff back to council with a different approach.
Owner's workaround and neighborhood reaction
Mitchell and city staff put forward a workaround that would legally split the operation into two separate businesses. Old Town Tavern would stay licensed as a bar while the neighboring space would open as the Back Door Restaurant and Lounge. That structure would lower the parking requirement but would also trigger additional restaurant licensing requirements. "I have to run two separate businesses," Mitchell said, adding that the delay has already cost him thousands of dollars. Some council members argued Old Town already has too many bars, while Councilwoman Solange Whitehead said she was "enthusiastically waiting to vote yes" to advance the plan, as reported by AZ Family.
Why parking has become a flashpoint
Parking in Old Town has become a political hot spot. The city recently signed off on a controversial Brown Avenue parking expansion to add hundreds of public stalls, a move supporters say will ease chronic shortages and critics warn will alter Old Town's character. That broader argument over where to build public parking and who should foot the bill is shaping the debate over whether bars like Old Town Tavern can pay into a city program instead of providing their own spaces. Brown Avenue parking expansion coverage details how the city plans to use bond funding to add those public stalls.
What happens next
The Old Town Tavern permits and the in-lieu parking request are now queued up on the city's calendar. The City of Scottsdale case page lists the Bar and Live Entertainment applications as scheduled for City Council consideration on July 1, 2026. If council signs off on the in-lieu credits or on the revised licensing setup, Mitchell can finally move ahead with opening the expanded venue. If not, he may have to redraw his plans or come up with the required parking spaces himself. City staff and the owner are expected in council chambers when the vote is taken, and public comment will remain part of the process.
Bottom line
For longtime regulars and musicians who depend on Old Town's stages, the question is straightforward. Either the council clears a path for the tavern to reopen as envisioned, or the business has to reshape its model to satisfy parking rules it argues do not match Old Town's ride-hail-heavy reality. Whichever way the vote goes, the outcome is likely to ripple across other small venues thinking about expanding in a downtown that is still trying to juggle growth, nightlife and parking. The council's decision will reveal whether Old Town's next chapter is expansion, compromise or another wait outside the door.
