Carmel City Council voted unanimously on April 7 to overturn a decision by the Carmel Planning Commission to revoke the drinking establishment use permit from A.W. Shucks Cocktail & Oyster Bar. Alongside the locations that house Barmel and what used to be Sade’s Cocktails, A.W. Shucks is the third and final business in a location with a drinking establishment use permit.
The meeting lasted nearly four hours, during which dozens of community members, business owners, property owners and attorneys debated what constitutes a bar versus a restaurant, the value of such an exclusive use permit, and the litany of permits and approvals issued over the last three decades by the City.
“If we could go back, we should have looked at the requirements in the initial use permit and said, ‘Sorry, we’re not going to do those things,’” Councilmember Hans Buder said. “But we now have a 35-year history. And it's not like it happened last year, there were multiple points where this was reinforced over time.”
After the Planning Commission determined on Feb. 11 that A.W. Shucks operates more like a restaurant than a bar—effectively abandoning the intent of the special use permit—A.W. Shucks and TSD Carmel Properties appealed the decision, claiming a lack of due process.
Both parties have maintained that at no point during their ownership of the property and operation of the business were they made aware they were in violation of the use permit, and that the City approved operational changes made along the way.
The special use permit, which runs with the land rather than the business, was also part of the purchase decision, and one they argued added value when Karen and Randy Basi purchased A.W. Shucks in 2023. Attorneys went so far as to bring local business appraiser and certified professional accountant Clark Savage to present on the potential business damages if the use permit were to be revoked.
“When the three [use permits] were created, it created scarcity. Scarcity creates value,” Councilmember Bob Delves said. “You bought a bar, I'm not going to be the guy that says no you didn't."
Councilmembers acknowledged that the fault lay with city processes and decisions, while adding that the definitions of a full-service restaurant and a bar are too ambiguous.
“I believe it was a mistake for the Planning Commission not to give deference to previous decisions that relied on the same set of facts without a change in circumstances,” Councilmember Jeff Baron said. “It’s clear to me that at [many] points, A.W. Shucks was in compliance.”
David Fink, founder of Mirabel Hotel & Restaurant Group, which owns L’Auberge Carmel with its restaurant Aubergine, and Cantinetta Luca, which closed in February of this year, argued that the saga—simmering for over a year—is ultimately “bad for business.”
“It’s always been very difficult to be in business here,” Fink said. “A.W. Shucks is a bar that serves food. Carmel is incredibly boring—we need some more life here. You can do the right thing and leave what they have in place and issue another permit or two.”
Buder expressed interest in whether or not to add a fourth use permit in the future. “I’m interested in the discussion, and I'd be curious to know what the broader community thinks,” he said.
“This is not a simple thing of just enforcing the municipal code,” Mayor Dale Byrne said, “but I think it’s also an element of fairness.”