Written by Marcos Camargo
The Springdale Town Council has indefinitely delayed a vote to repeal an ordinance banning formula restaurants. Originally scheduled for Tuesday, July 7, the vote was removed from the council agenda after Izzy Poco, LLC, failed to sign a settlement agreement by July 6 that would have forced the town to repeal the ordinance. Izzy Poco and the Town of Springdale have been embroiled in a nine-year lawsuit over the constitutionality of the Springdale formula restaurant ban as it applies to the rejection of Izzy Poco’s application for a business license to open a franchise Subway sandwich shop. Although the settlement remains on the table, Izzy Poco’s delay in sealing the terms of the agreement leave both the future of the ordinance and the lawsuit in question.
Springdale Mayor Stan Smith explained that he had to pull the vote from the agenda because according to statute, a public comment session must precede the vote, and such sessions require a ten-day advanced notice. Smith and the Town Council want the lawsuit settled before the ordinance is repealed.
“Before I put [the vote] back on the agenda, they need to sign the settlement agreement,” said Smith. “I know some of the townspeople are upset, wondering why we pulled [the vote]. We could have gone through the procedure and could have repealed the ordinance, and then all of a sudden [Izzy Poco] could have said, ‘We don’t like the agreement. We’re not going to sign it.’”
The settlement also stipulates that the town trust pay Izzy Poco $787,500. Smith said this figure was agreed upon by both parties to cover Izzy Poco’s legal fees and cost in lost profits. If the town repealed the ordinance without first closing the settlement, Izzy Poco could potentially turn around and ask for more. Smith said they were originally asking for “millions of dollars.”
Izzy Poco can still sign the agreement, at which point the Council will hold a vote to repeal the ordinance. Failure to do so would trigger the lawsuit to move forward.
Representatives of Izzy Poco could not be reached for comment.
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