The McAllen City Commission voted Monday to deny a bar permit for Gamehaus Gastropub, which regularly ranks among the top sellers of alcohol in the Rio Grande Valley.

The City Commission denied Gamehaus a conditional use permit to operate as a bar; Gamehaus will keep operating as a restaurant.

Neighbors have complained about problems caused by Gamehaus patrons. Gamehaus attempted to address those concerns by inking new parking agreements and hiring private security, but some neighbors haven’t been satisfied.

McAllen audited Gamehaus, attempting to determine whether the city should regulate the business as a bar or a restaurant. Gamehaus responded by filing a lawsuit against the city, which remains pending.

“The city’s unconstitutional, arbitrary, and selective attempt to ‘shut down’ Plaintiff Gamehaus under the guise of code enforcement must be declared void,” according to the lawsuit.

As part of the litigation, the McAllen asked Gamehaus to apply for a conditional use permit that would allow the business to operate as a bar for five years. The request was denied Monday night.

“The ball is kind of in Gamehaus’ court to decide what they want to do under the facts and circumstances,” said Deputy City Attorney Gary Henrichson.

The McAllen Planning and Zoning Commission recommended that the permit be denied due to non-compliance with the city zoning ordinance. Residents living near the area also submitted a petition asking that McAllen deny the permit.

“We will continue to operate under the valid restaurant permit we’ve maintained for the last three years,” said Seby Haddad, who co-owns Gamehaus, in a statement to CBS 4 News. “We hope to work with the city to come up with a solution if they have any continuing concerns.”