But a resolution by Mayor Satya Rhodes-Conway and two council members to be introduced Tuesday says the parties now wish to resolve the dispute.

“The city avoids the risk of a negative, statewide precedential ruling by the Court of Appeals that limits our discretion in issuing liquor licenses,” City Attorney Michael May said. “It also gives us the opportunity to seek to vacate the negative Circuit Court ruling which, while not of precedential value, is a ruling we would prefer to see off the books.”

Flynn Restaurant Group said in a statement it was pleased to reach an agreement with the city for a liquor license for its Taco Bell Cantina. “As the owner and operator of 1,245 restaurants across the country including over 450 Applebee’s locations – all with full-service liquor licenses – Flynn Restaurant Group has an outstanding reputation of owning and operating safe, orderly and compliant concepts nationwide and we pride ourselves on responsible service.”

Ald. Mike Verveer, whose 4th District includes the Taco Bell, has long supported a license with conditions for the restaurant and applauded the settlement.

The Alcohol License Review Committee will consider the settlement next, with a council decision expected no later than May 21, May said.