By split vote, council denies Ay Caramba request for to-go alcohol license

T-R PHOTO BY ROBERT MAHARRY During Monday night’s meeting, the Marshalltown city council voted 4-3 to deny an eight-month to-go alcohol license request for Ay Caramba burrito shop, pictured, which is located at 1803 S. Center St.
During Monday night’s meeting, the Marshalltown city council heard a request for an eight-month to-go alcohol license from the owners of the Ay Caramba burrito shop on South Center Street but ultimately voted 4-3 to reject it, with at least one councilor referencing the city’s past dealings with one of the owners.
After a motion and second were made, City Clerk Alicia Hunter explained that Maria Mendoza was presenting the request for the eight-month license with to-go service only, and Mendoza then came forward to answer questions. Councilor Mike Ladehoff noted that it was “his understanding” she only owned 10 percent of the business, and the city could not approve a liquor license for someone who is not a citizen of the United States — without directly specifying who he was referring to.
Councilor Gary Thompson clarified that because the state of Iowa recognizes the corporation as a legal corporation, Mendoza has the ability to apply for the liquor license. He added, however, that state laws apply to “all officers, directors (and) shareholders of the corporation and the general partners in the partnership.”
According to Thompson, there are two LLCs involved in Ay Caramba: JL Investments DSM and JG Assets and Management. Jorge Oscar Sanchez Vazquez, who was also in attendance, is involved in JG Assets.
“Based on previous city dealings with him and according to the state of Iowa saying that everybody has to meet the requirements — good reputation, good financial standing, I could go on but I won’t — that’s why I’ll be voting no to deny this liquor license tonight,” Thompson said.
Previous reporting in the T-R indicates that Sanchez Vazquez, who has also been known as Oscar Sanchez, has faced numerous issues with alcohol compliance at other bars and nightclubs he has owned over the years. In 2016, the city council voted unanimously to deny a liquor license request for one of them, Wild Coyotes Sports Bar and Dance Hall, after then-Police Chief Mike Tupper raised concerns about underage alcohol sales, violent incidents and a lack of cooperation with the MPD at another establishment Sanchez Vazquez owned on West Lincoln Way, Palm Beach Bar and Grill.
In September of 2024, Sanchez Vazquez, who is a legal resident of the United States but not a citizen, was charged with two counts of felony election misconduct for allegedly casting an illegal ballot in the Fourth Ward special election for city council that July. Those charges are currently pending in Marshall County District Court, and a jury trial is scheduled to begin on June 12.
Councilor Melisa Fonseca asked City Administrator Carol Webb if everything had been “checked out” regarding the motion as Fonseca said she didn’t understand why the concerns were being raised.
“The LLC status was checked out. The background, that’s really up to the council to make a decision about,” Webb said.
She added that city staff wasn’t making a recommendation one way or the other on the matter.
“This is a south side business. We’re looking into helping out the south side and whatnot on the rest of the agenda tonight, so we do have a couple, that I can think of, beverage drive-thrus in town.”
Fonseca then asked Mendoza about her goals for the business and obtaining the license as well as her personal background and long history in Marshalltown.
“Customers have been asking us for alcohol, and we just think that we want to give it a try,” Mendoza said. “And it can earn revenue for us and also for the city.”
The councilor described Mendoza as “a Marshalltonian small business owner” who was attempting to expand her operation.
“I don’t see why this would be an issue, so if any other councilor has an issue with helping out a small business here, I would like to know what that is,” Fonseca said.
Mayor Joel Greer noted that it has been customary to ask the police chief for comment on liquor license applications, and Chief Chris Jones said there was no new information to share since a memo was previously issued under the leadership of former City Administrator Jessica Kinser.
Sanchez Vazquez, who identified himself as Jorge Sanchez, stepped up to the podium and said Mendoza was “pretty much taking over the restaurant,” while his focus is now in Des Moines.
“I don’t why is this relying on me… The LLC and everything else is under her name. It’s nothing to do with me,” he said. “Her LLC owns 90 percent of that.”
He reiterated that “a lot of customers” have been asking for to-go margaritas with their burritos and said they can use machines with the ability to seal cups as a way to cut down on drinking and driving situations. During the public comment period, Linda Clark raised a concern that the to-go service would promote drinking and driving and create more issues, encouraging the council to vote no.
Dave Grieve said he had been “bitten” by codes and ordinances an “inordinate” amount of times and said that as a result, he didn’t believe it mattered what the council did. Tim Bradbury expressed his appreciation for small businesses and restaurants coming to town, but he also shared his reservations about promoting drinking and driving.
Sanchez Vazquez then returned to the podium and responded that people would make bad decisions “no matter what,” and he has seen it happen outside of other establishments in town such as gas stations. Ultimately, he still felt the additional tax revenue would be a positive for the city.
“If you’re making a decision for other people, it’s gonna be tough controlling that no matter what you do. Whatever you eat, whatever you put in your mouth, are you gonna control that too?” he asked.
Jim Shaw noted that there are already plenty of other opportunities to open an alcohol container and drink it in one’s vehicle, and he didn’t believe that granting this license would be a big deal. On a roll call vote, the motion failed 4-3 with Councilors Fonseca, Ladehoff and Barry Kell and Thompson, Mark Mitchell, Greg Nichols and Jeff Schneider opposed.
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Contact Robert Maharry at 641-753-6611 ext. 255 or
rmaharry@timesrepublican.com.