Vinos Wine Lounge and Tapas Bar will be located next to Cold Stone Creamery on Main Street.
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It will have a wine lounge and a tapas bar which features light snacks and appetizers.
City leaders say businesses like this one are helping transform the downtown area.
"Real exciting because it's confirming what we want to become. An art center and cultural district, supported by different types of food venues that's exactly what's going on here," said deputy city manager Frank Quintero.
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Owners of Vinos are currently going through the building permit process.
The new lounge is slated to open in less than a year.