The City Council overturned a Planning Commission recommendation and voted 3-1 to grant a conditional use permit for a liquor license at a mini-market and gas station at 2902 Florence Ave.
The applicant, Texaco Inc., appealed the commission's ruling in June to deny the permit after the panel received testimony from residents opposed to the project. A petition with 39 signatures was also submitted.
The council cited a need to get the service station, closed for a year, back in operation.
"I'm not totally enchanted with gas being sold with beer and wine," said Mayor Herbert A. Hennes, but "I'd prefer to see something done on the property."
A Texaco representative said the company will spend $250,000 to rehabilitate the building and install a small food market. Two similar operations already exist in the city.
Councilman William Cunningham voted against granting the permit, saying "I don't think beer and wine and gas mix." Councilman Jim Roberts was absent.