21 Nov 21st-Nov 27th, 2024 phoenixnewtimes.com PHOENIX NEW TIMES | NEWS | FEATURE | FOOD & DRINK | ARTS & CULTURE | MUSIC | CONCERTS | CANNABIS | Scrapped Plans Bottled Blonde cancels Gilbert plans following developer’s arrest. BY SARA CROCKER T he arrest of a Utah developer and restaurateur has led one local hospitality group to sever ties and pull the plug on a downtown Gilbert project. Bottled Blonde, the sports bar and nightclub with locations in Scottsdale and around the country, will no longer move forward with a planned outpost in the East Valley town. The project was announced in June 2023 for the rapidly evolving downtown Gilbert Heritage District, along Gilbert Road. It was set to be built on the site of the former Bergies Coffee Roast House. The property is owned by Wags Capital. Its founder, Aaron Wagner, was arrested by the FBI on Oct. 24. Wagner and business partner Michael Mains were indicted on Nov. 6, and face 16 federal charges, including wire fraud and money laun- dering, according to a press release from the U.S. Attorney’s Office. Wagner and Mains are accused of using investor funds, which were intended to develop restaurants through Wagscap Food Service, for their own personal expenses or investments, or to prop up other projects. Some of the restaurants tied to the company include Crumbl Cookies and the smoothie shop Everbowl. Wagner allegedly brought in more than $40 million from investors. He and Mains are accused of diverting funds to purchase a $4 million second home for Wagner in Scottsdale, an $8 million personal plane and a $4.5 million commercial property to be developed into a Scottsdale steakhouse, according to the U.S. Attorney’s Office announcement. Following news of Wagner’s arrest, Evening Entertainment Group, the company behind Bottled Blonde, said it would walk from the project in Gilbert. “Evening Entertainment Group and Bottled Blonde have withdrawn as the proposed tenant at the Gilbert develop- ment owned by Aaron Wagner, effective October 2024,” a statement from the hospitality group said. Bottled Blonde faced controversy in Gilbert The exit of Bottled Blonde marks the end of a plan that struck a nerve with residents. Following the announcement last year, more than 4,500 people signed a petition urging Gilbert Town Council to stop Bottled Blonde from setting up shop. Community members voiced concerns ranging from the impact another bar would have on the family-friendly commu- nity to dismay over demolishing a historic building and ire for being left out of the conversation about the kinds of businesses that can open in the area. At the time, the town noted their hands were tied — the land was sold through a private sale and already had the zoning it needed to operate. However, the town’s Redevelopment Commission had final approval over the building design to ensure it maintained the character and aesthetics of the Heritage District. The developer cleared those hurdles and received approval for the building design in February. This spring, a campaign to save the historic cottage on the site began brewing. The small home was built by the Clare family in 1918, and preservationists sought to salvage and relocate the house before construction began. Those efforts have been led by HD South, an organization that runs the Gilbert Historical Museum and the town’s art gallery. Fundraisers have set a goal to collect $135,000 to relocate and restore the home. To date, the organization has secured more than $26,000. Wags Capital had previously offered to chip in $10,000 to the effort — the amount it had allocated to tear the building down. Casey Kendel, downtown Gilbert’s Redevelopment Commission chair, says once a project receives approval, the devel- oper generally jumps into action. Instead, the window for breaking ground for the Gilbert Bottled Blonde lengthened. “What we were hearing as a board was that they were having difficulty with their funding,” Kendel says. While the developer stalled, they allowed preservationists more time to raise money. Denise Lopez, the HD South presi- dent and CEO, confirmed this fall that the latest extension to raise funds to save the house would stretch into January 2025. For now, the site remains fenced off. A Gilbert spokesperson says the existing approval granted to the developer is valid for three years, until February 2027. “Since the property is privately owned, any future development on that site would be initiated by the property owners — whether this group or a new owner. The town’s responsibility would be to review the application for consistency with town codes and ensure the proper process is followed,” spokesperson Jennifer Harrison shared via email. With Bottled Blonde no longer part of the project and the case against Wagner looming, Kendel says he’s not certain what that could look like. “The future of that property and the house is really up in the air,” he says. But, he and Lopez say they are committed to saving the Clare House. The money raised so far will continue to be set aside to move the home. Kendel noted that it took two years to save and restore the town’s water tower, which now is the hall- mark of the downtown district. Illicit funds for a failed Scottsdale restaurant Among the allegations against Wagner is another proposed Valley restaurant. He allegedly used investor funds to purchase a Scottsdale property that he intended to turn into Swags, a three-story, high-end steakhouse. The project was shot down in January during a Scottsdale City Council meeting where Wagner was seeking an allowance for a three-story building in an Old Town space zoned for two stories. Although the council voted 4-3 to rezone the property, the proposal ulti- mately failed because the decision required at least five council votes, or a superma- jority, according to Scottsdale Progress. Wagner sold that property prior to his arrest, outlets including Scottsdale Progress and the Arizona Republic have reported. Wagner has pleaded not guilty to the charges. He was released from jail on Nov. 8, and his jury trial is set to begin in Salt Lake City on Feb. 3. LEFT: Bergies, the backyard-style coffee shop, closed in December 2022. RIGHT: The Clare House, built in 1918, was a private residence before it housed businesses. (Photos by Dalke Design Group and Sara Crocker) TOP: Evening Entertainment Group, the team behind Bottled Blonde, will not go forward with plans to open a location in Gilbert. ▼ Food & Drink
