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Item 1 CITY COUNCIL REPORT mm Meeting Date: General Plan Element: General Plan Goal: ACTION May 5,2026 Land Use Support a diversity of businesses. Liquor License Request for LL-0009-2026 Problem Lounge Restaurant (382482}. To consider forwarding a recommendation of approval to the Arizona Department of Liquor Licenses and Control for a New Application Series 12 (Restaurant) State liquor license for an existing location and new owner. OWNER Problem Lounge LLC APPLICANT CONTACT Cleashaun Hill LOCATION 7341 E. 6‘*’Ave. REQUEST The applicant is seeking a favorable recommendation on a Series 12 (restaurant) liquor license for an existing location with new owner. This has been a licensed location most recently operating with liquor in 2019 as a restaurant. This liquor license allows the licensee to sell and serve spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its total revenue from the sale of food. City Council Report | Problem Lounge Restaurant (382482) The applicant has indicated thatthis establishment will serve liquor between the hours of 5 p.m. and 2 a.m.; however, due to state liquor license processing requirements, they are hot required to notify the city or the state if they change their hours of operation. IMPACT ANALYSIS Reliability and Location A.R.S. Section 4.-203.A and R19-1-702 Granting a License for a New Owner for a Certain Location. The capability, qualifications and reliability of the applicant has been shown. Restaurant A.R.S. Section 4-205.02 and R19-1-206 Criteria for Restaurant Operations. This owner intends to operate this location as a restaurant. This establishment is 6,865 sq. ft. in size, plus an existing 700 sq. ft. patio. The bar service area is 365 sq. ft. or 5% of gross floor area, and the kitchen area is 1,784 sq. ft. or 25% of the gross floor area. The operational characteristics and floor plan qualify as a restaurant. Outdoor Patio The existing patio, on the rooftop of the building is 70O sq. ft. and does not encroach into the adjacent pedestrian walkway. Zoning This site is zoned D/OR-2 DO (Downtown Office Residential Type 2 Downtown Overlay). The D/OR-2 DO district allows restaurants as a permitted use. The applicant has been notified of the city’s expectation that the business will operate as a restaurant, and that all parking requirements will be met prior to operating the restaurant. PublicSafety Police Department: No Opposition Major life safety issues: None noted Public Notice and Proximity A.R.S. Section 4-201 .B. Petitions from Persons in Close Proximity. The applicant has maintained the required posting notice for the State rnandated 20- day period. No petitions or protests were received during the 20 (twenty) day posting period. COUNCIL OPTIONS & STAFF RECOMMENDATION Council Options Page 2 of 3 City Council Report | Problem Lounge Restaurant (382482) The City Gouncil has the option of recomrnending approval, disapproval or no recommendation to the Arizpna Department of Liquor Licenses and Control. Staff Recommendation Staff advises that the license request meets the criteria imposed for determining the capability, qualifications, and reliability of the applicant. Next Steps The City Council’s recommendation will be forwarded to the Department of Liquor Licenses and Control for their consideration. If the application is approved by the Department of Liquor Licenses and Control, the applicant should receive their license from the State within 105 days of original application. RESPONSIBLE DEPARTMENT(S) Jason McWilliams, Planning Technician, jmCwilliams(g)scottsdaleaz.gov Planning and Development Services Matt Evans, Commander, mevans@scottsdaleaz.gov Special Operations Division APPROVED BY rntmIt 4/20/2026 Tim Curtis, AlCP, Current Planning Director 480-312-4210, tcurtis@scbttsdaleaz.gov Date ATTACHMENTS 1. Map 2. State Application (Front Page, including menu) 3. Floor Plan Page 3 of 3 5 o mz H X t^-. ^.■ -;.4 . , \> ^ - V \ E. 6th Avenue ! y- 4^ n ;v f tt Site s. 9 ! i£. X' • « * G.I.S. Orthophoto 2023 n N 1IJI >a s GhaparrqliRoqd ■s.. E. 6th Avenue -^--. ^%ii![ii2lZ^31fi Q.S. 17-45 'M^mm :r/y, LL-0009-2026 Problem Lounge Restaurant (382482) >; ATTACHMENT 2 State of Arizona department of Liquor Licenses and Control Created 03/18/2026 @ 03:41:08 PM Local Governing Body Report Number; Name: State; Issue Date: Original Issue Date: Location: Mailing Address; Phone: Alt Phone: Email: LICENSE Type: PROBLEM LOUNGE RESTAURANT Pending Expiration Date: 7341 E6TH AVENUE SCOTTSDALE, AZ 85251 USA (928)432-0293 INFO@PROBLEMLOUNGE.COM 012 RESTAURANT AGENT / Name: CLEASHAUN HAROLD HILL Gender:' Male Correspondence Address: 3418 E VALENCIA DRIVE PHOENDC, AZ 85251 USA Phone: (928)432-0293 Alt. Phone: Email: INEO@PROBLEMLOUNGE.COM OWNER Name: Contact Name: Type; AZ CC File Number Incorporation Date; problem LOUNGE LLC CLEASHAUN HAROLD HILL LIMITED LIABILITY COMPANY 23S56551 State of Incorporation; A^ 07/23/2025 Correspondence Address: 3418 E VALENCIA DRIVE PHOENIX, AZ 85251 USA (928)432-0293 66V V\ Sl'T'26 Phone: Alt Phone; Email: Olllcers / Stockholders Name: CLEASHAUN HAROLD HILL INFO@PROBLEMLOUNGE.COM Tide: Manager % Interest 50.00 Page 1 of3 ^\<2S XX 'cbFEB 2 Ffi 3:40 HZDll^/ PROBLEM LOUNGE Starters Lobster Deviled Eggs* - $28 Golden deviled eggs with lobster mousse, finished with house aioli Hamachi Creole Tarlare - $32 Hand-cut yellowtail with citrus creole dressing and crisp shallot chips Grilled Stuffed Oysters* - $36 Char-grilled oysters with smoked crab-herb butter and parmesan crust Surf & Turf Frites*-$34 Hand-cut fries topped with prime steak, lender shrimp, and spicy aioli Crack Wings - $26 Crispy fried wings glazed in signature house sauce The Problem Child Dip - $30 Roasted garlic burrata with cream cheese, blistered cherry tomatoes, mozzarella crust, toasted baguette Pasta Crab & Shrimp Pappardelle* - $54 Fresh ribbons of pasta In garlic cream sauce with lump crab and shrimp Crawfish Alfredo Fettuccine* - $52 Louisiana crawfish tails with parmesan cream and freih herbs Blackened Chicken Penne - $48 Creole-spiced chicken in a velvety cream sauce Black Pepper Steak RotinI - $56 Prime steak tips with mushrooms in brandy reduction Oxtail Truffle Lasagna* - $62 Braised Cajun oxtail layered with pasta and truffle bdchamel ‘as FEB 2 PH 3 40 fiZDLLC PROBLEM LOUNGE - COCKTAIL & WINE PROGRAM Signature Creations Golden Orchard - $19 Vodka, pear nectar, lemon, honey syrup, champagne float — Coupe with edible gold rim Tropical Mirage* - $18 Blanco tequila, passion fruit, pineapple, lime, agave, chili tincture — Garnished with flaming dehydrated lime Veivet Rose - $18 Gin, strawberry pur6e, elderflower, lemon, egg white — Finished with rose petal dust Mango Ember* - $19 Mezcal, mango purde, lime, tajln rim — Presented in a smoked glass dome Emerald Garden - $17 Vodka, cucumber, green apple, basil, lime — Tall glass with cucumber ribbon and basil bouquet Sunset Tower* - $18 Rum, guava, blood orange, lime, orgeat — Highball with ombrS gradient effect Classics, Elevated Banana Lemon Drop - $17 Vodka, banana purde, lemon, simple syrup, vanilla sugar rim Watermelon Lime Margarita* - $18 Tequila, muddled watermelon, lime, agave nectar, tajln rim Problem Signature Cocktail - $21 Vodka, rum, tequila, gin, blue curagao, citrus, house tropical blend — our refined take on theAdios Shared Experiences Fruit Fire Mimosa Tower* - $68 Sparkling wine with rotating seasonai purdes and flaming citrus centerpiece (Serves 4~6) Tropical Punch Bowl* - $85 Caribbean rum blend, pineapple, coconut, guava, passion fruit — Served in a crystal bowl with flaming overproof rum and ladle sen/ice 'cbFEB 2 3 '40 hZDLLC Wine Selections Sparkling Veuve Clicquot Yellow Label Brut - $150 Dorn P&rignor) Vintage - $395 White Rombauer Chardonnay, Napa Valley - $85 Cloudy Bay Sauvignon Blanc, Marlborough — $72 Red Caymus Cabernet Sauvignon, Napa VallPy - $180 Prisoner Red Blend, Napa Valley - $110 Beer & Cider Craft Rotating Selection - $10-12 Curated rotating craft beers and ciders Zero Proof Fresh Pressed Juice Medley - $9 Seasonal cold-pressed juices Botanical Mocktails — $12 Fruit-fon/vard non-alcoholic creations San Pellegrino Sparkling - $8 Imported sparkling mineral water vioce Ofonop , <6^ - <i>\ - - e>| server of any dietary restrictions. 2 PH 3 40 HSILU: Seared golden brown with herb chimichurri Sweet Cream Corn - $16 Roasted corn kernels with cream and butter Side Dishes Truffle Mashed Potatoes - $18 Yukon gold potatoes whipped with cream and truffle essence Four-Cheese Macaroni Gratin - $18 Cavatappi baked with gruyere, Cheddar, parmesan, and fontina Candied Sweet Potato Crunch* - $18 Sweet potato pur6e with pecan streusel and brOieed marshmallow Jasmine Crab Fried Rice* - $18 Wok-tossed rice with lump crab, scallion, and soy reduction (+$1Z) Salads Classic Caesar Salad - $16 Crisp romaine, shaved parmesan, and griiled chicken Wedge Salad-$16 Baby Iceberg with pancetta, tomato, onion, and bleu cheese dressing Desserts Peach Cobbler-$12 Spiced peach filling with crumble topping Basque Cheesecake - $12 Burnt-style cheesecake with creamy center Butter Cake-$12 Rich goiden butter cake served warm ' Contains shelifish, nuts, or other allergens. 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