I’m personally wondering if they aren’t just trying to set themselves up to become a dispensary by getting as close as possible to what might be allowed zoning for that 
I was actually wondering that as well! (opening a dispensary at some point) Also, I stand corrected on “liquor sales” not being the same as “cocktail lounge,” but it’s kinda weird that the applicant included basically no info about what they’re planning for the site (assuming they have a plan at this point). Btw I was going off info I heard directly from TABC, albeit over a decade ago now. Outside of 2nd St., I gather there’s at least an “unofficial” accord between the city and TABC about limiting the number of “pure” bars outside of downtown, though admittedly this was before the 10-1 changeover occurred – though there really aren’t many booze-only places around town. I still recall being surprised at how Gibson managed to get a liquor license, considering the site used to be a garage.
City use and TABC designations are two different things. Case in point the Torchy’s on South Congress. Use is zoned to allow for alcohol sales. TABC use differs and is not allowed due to proximity to a school. I made a similar miscalculation with fibercove thinking that since TABC would be fine with us selling alcohol, we would be good. Unfortunately, the city designated use did not allow for that. We could have done a change of use, but that’s a whole under taking.