GILBERT, Ariz. — A Valley bar has withdrawn from proposed plans to open a new venue in a controversial spot.
Bottled Blonde, a restaurant and nightclub which already has a location in Old Town Scottsdale, planned to open its second Valley location in downtown Gilbert's Heritage District.
The proposed venue attracted significant backlash from residents who were concerned the bar would negatively impact the "family friendly" feel of the area. Thousands signed a petition to stop it.
However, those plans now seem to be dead in the water.
Aaron Wagner, the landowner of the property was recently indicted on federal fraud charges after a yearslong investigation. He's now facing 16 felony counts of fraud and money laundering, accused of using his business, Wags Capital, to defraud investors and fund his own lavish lifestyle.
Wags Capital purchased the lot previously home to Bergie's Coffee Roast House and then partnered with Bottled Blonde and Evening Entertainment Group as potential tenants.
After the accusations came to light, Bottled Blonde and its parent company backed out of those plans.
"Evening Entertainment Group and Bottled Blonde have withdrawn as the proposed tenant at the Gilbert development owned by Aaron Wagner, effective October 2024," the company told 12News.
Development on the building was scheduled to start in 2024 but hasn't started as of Nov. 12. There is no word on what's going to happen with the property now. Bottled Blonde did not comment further on future plans.
Wagner pled not guilty to all charges.
"Aaron denies the allegations that have been made against him," Wagner's lawyer told 12News. "He looks forward to defending himself in court.