The Liquor Advisory Board recommended a measure to the City Council Thursday that would give Pinch Penny Pub a second liquor license for its game room.

Pinch Penny, 700 E. Grand Ave., already has an A-3 license for the game room, a license designed for entertainment establishments such as off-track betting parlors, John Mills, Liquor Advisory Board member, said.

Under the A-3 license, the game room would remain an extension of the pub. Pinch Penny wanted two separate licenses to allow the game room to remain open in the event of a loss of an impending law suit, Cindy Morgan, manager of Pinch Penny, said.

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Morgan said the lawsuit involves a dispute between Pinch Penny and Greg Pick, owner of Pick’s Electronics and Pick’s Liquors. His businesses are located in the Lewis Park Mall north of Pinch Penny.

The lawsuit concerns old contractual agreements and the visibility of the buildings in the Lewis Park Mall, Mills said.

Pick is suing Pinch Penny because he claims the pub’s expansion will block his businesses, and the expansion violates the covenants drawn up when the mall was originally built.

Pinch Penny claims the covenants are no longer valid.

The mall did not turn out as it was planned, and so the old covenants do not apply, Morgan said.

The lawsuit may prevent the pub from some of its expansion plans, Morgan said.

Pinch Penny asked the board to recommend the granting of a B-2 liquor license. The B-2 license is the regular business license for alcohol. If approved by the Liquor Control Commission, the game room will become a separate business from the pub, Mills said.

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With a B-2 license, we will be able to keep the game room open, even if we lose the case, Morgan said.

The board unanimously approved the proposal to recommend a B-2 license.

The board already had discussed the proposal prior to the meeting, board member John Benshoff said.

They (Pinch Penny) had a good proposal, and we were in agreement, he said.

The Liquor Control Commission will vote on the license Tuesday night before the regular City Council meeting. It is likely to pass after the board’s recommendation, Morgan said.

Pick was not available for comment.