Thomson delays Tequila Town sign decision until June 15

Thomson Township officials put off a ruling on Tequila Town’s sign restriction, extending a dispute that has already forced the restaurant to alter its exterior branding and kept the business in limbo across from Esko school buildings. The board delayed action until its next meeting on June 15 after members said they were not ready to decide without legal counsel present.

The postponement matters because this is no longer just a sign complaint. It is a live test of how Thomson and Esko officials use ordinance power around a small business that sits at the northeast corner of Canosia Road and Carlton County Highway 61, directly across from school property, and how carefully they are applying the standards behind the restriction.

Ruth Janke said the matter should be tabled because the board had unanswered questions and no attorney in the room. That caution reflects the legal sensitivity surrounding the site, where Minnesota statute 340A.412 generally bars liquor licenses within 1,500 feet of a public school outside a city. The restaurant had already received a legislative exception in the 2013 Liquor Omnibus Bill allowing wine sales and 3.2 beer at that address.

The sign issue first surfaced in February 2025, when the Thomson Township Board began considering liquor-license conditions for the restaurant in a former restaurant space. Township officials passed 10 conditions, including one that said the restaurant name could not refer to an intoxicating beverage or include the word bar. By March 6, 2025, nearly 70 people had crowded into town hall for another meeting on the issue.

After that meeting, the board softened its original position and allowed the restaurant to keep its full name on menus and interior signage, but not on the exterior facing the school. By early March 2025, the sign had been changed to “Tequi Town” after owner Rafael Mata removed the letters “la.” Mata has said the name refers to the City of Tequila in Jalisco, Mexico, not the drink.

Supporters challenged the restriction with an online petition that gathered 1,063 signatures backing the full sign name. Supervisor Terry Hill had said he personally had a problem with the restaurant name facing the school, and supervisor Nathan Bartha later posted that he was unconvinced by the geography argument.

For Tequila Town, the delay means more time under the existing restriction and more uncertainty about whether the business can restore its full exterior name. For Thomson and Esko residents, June 15 will show whether the township keeps pressing the restriction or sets a wider precedent for how far local boards can go when school-adjacent business disputes collide with zoning, licensing, and political judgment.