Little Elm Residents Oppose Rezoning for Two‑Story Whiskey Lounge

A proposal to rezone a two‑acre, city‑owned lot in Little Elm for a two‑story whiskey and cigar lounge has sparked fierce opposition from neighbors who say the development is too close to their homes.

The project, called The Whiskey Blendery, would feature barrel storage, event space, and a second‑floor patio that would sit just yards from residential backyards.

City officials say the lot is located in the Lakefront District, a part of Little Elm that the town is trying to diversify with new destination‑focused development.

Residents, however, are not concerned about the type of business, but about the location and the speed of the approval process.

“I’ve lived here 19 years. When we first moved here, this was a horse pasture,” Ryan McCallion told local reporters.

McCallion’s backyard is adjacent to the lot, and his back fence backs up to the proposed building.

“I’m gonna be looking out at their two‑story building out of my back porch every day,” he added.

Tim Lukes echoed similar worries, saying, “They want to put this whiskey brewery right up against the fence where two residential homes are adjacent to it.”

Lukes also criticized the developer’s request for several exceptions, including changes to parking and tree mitigation.

“They changed the setback requirements, they changed the height requirements, the glass window requirements, the parking requirements, the drainage requirement. Everything was altered to shoehorn in this facility,” Lukes said.

An email from the Little Elm Economic Development Corporation (EDC) states that the project remains under review.

The EDC said it has worked with the business for two years and has prioritized safety, neighborhood compatibility and economic benefit.

The EDC also noted that the fire marshal has reviewed the plans, and the building has been designed with no windows facing nearby homes.

“The EDC has been working with this business for the past two years to refine the concept, ensure it aligns with Little Elm’s long‑term development goals, and design a project that fits appropriately within the Lakefront District,” the statement said.

“We understand that some residents have expressed concerns, and the EDC takes these concerns seriously. All council members are required to follow strict state and local ethics laws, including disclosure of any potential conflicts and recusal when appropriate, ensuring transparency in decision‑making,” it added.

The town’s Fire Marshal’s Office has reviewed the plans, and the developer hired an independent third‑party fire‑risk assessment firm to evaluate the project.

Despite these assurances, residents say the process moved too quickly.

“We’ve had a very short timeline to prepare our thoughts and to talk to people,” Lukes said.

“We received this letter on the weekend of Thanksgiving,” McCallion said.

“(Council members are) there to protect us. They’re there to work for us. It just doesn’t feel like that’s the case,” McCallion added.

The Planning and Zoning Commission approved the plan to move forward last week, and the proposal now heads to the Town Council for a vote on January 6.

For some residents, the outlook feels bleak.

“We’re very disappointed. We’re not very optimistic that we have any chance,” Lukes said.

NBC 5 reached out to The Whiskey Blendery for an interview and statement.

As of Tuesday afternoon, no response was provided by the business.

The full statement from Little Elm EDC can be read below.

“The Little Elm Economic Development Corporation appreciates the opportunity to clarify information regarding the proposed Whiskey Blendery project. This development is still in the early stages of the review process and must comply with all Town, state, and industry standards before moving forward.

The EDC has been working with this business for the past two years to refine the concept, ensure it aligns with Little Elm’s long‑term development goals, and design a project that fits appropriately within the Lakefront District. Throughout that time, we have prioritized safety, compatibility with nearby neighborhoods, and the overall economic benefit to the community.

We understand that some residents have expressed concerns and the EDC takes these concerns seriously. All council members are required to follow strict state and local ethics laws, including disclosure of any potential conflicts and recusal when appropriate, ensuring transparency in decision‑making.

The Town’s Fire Marshal’s Office has reviewed the plans. Additionally, the developer hired an independent third‑party fire‑risk assessment firm to evaluate the project. Every recommendation from that assessment has been incorporated into the building’s design and construction plans to ensure the highest level of safety for both the business and nearby homes.

On privacy, the building has been intentionally designed with no windows facing the adjacent residential area. While the project includes a balcony, it features a privacy screen that prevents visibility into neighborhood backyards. Likewise, the screen limits visibility from the residential side toward patrons on the balcony, creating privacy protection in both directions.

From an economic perspective, the Whiskey Blendery represents a unique opportunity to diversify the Lakefront District’s offerings, attract visitors, create local jobs, and generate new revenue that benefits the entire community. The project aligns with our long‑term vision for high‑quality, destination‑focused development in Little Elm.”

Key Takeaways

• The Whiskey Blendery rezoning faces strong local opposition due to proximity and expedited approval.
• The EDC emphasizes safety, privacy, and economic benefits, citing fire‑marshal approval and independent risk assessment.
• The Town Council will vote on January 6, while residents remain skeptical and disappointed.

In summary, Little Elm’s residents are voicing deep concerns about the proposed whiskey lounge’s location, speed of approval, and safety measures, even as the EDC and town officials highlight compliance and community benefits.