In February, Mexican restaurant Tequila Town opened it’s third location, and first in the Northland, in Esko. However, it’s location, and sign have caused friction with the local government.

Despite it’s name, Tequila Town is currently only serving food and non-alcoholic beverages. According to Minnesota statutes, it shouldn’t get a liquor license as it’s within 1500 feet of a school in a township – Esko Schools are right across the street.

Despite this, previous restaurants in the building had been granted an exception to this in the past – with certain caveats – such as not being able to advertise alcohol with outward facing signs, and limiting sales to wine and 3.2% ABV beer. As a new business, Tequila Town does have to apply for a new license – which first has to be approved by the town board. Some members of which expressed discomfort with the sign facing the school – according to the minutes of a recent meeting.

Several conditions have been laid out for approval including changing the sign so that it does not refer to an intoxicating beverage or use the word bar. Certain hours for alcohol sales are set, as well as the aforementioned ban on certain types of alcohols – including tequila.

Co-owner Rafael Mata says the name “Tequila Town” refers not to the beverage, but rather the actual town of Tequila, located in the Mexican state of Jalisco. Town Board Supervisor Nathan Bartha however, is unconvinced.

“I understand the geography argument, but nobody thinks of the town when they hear “tequila”, they think of the liquor.” Bartha said in a Facebook post addressing the situation. “My heart tells me that it is not ok to have a sign referencing hard liquor facing elementary classrooms.”

Mata has said that he does plan to change the sign soon.