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The incident took place at 1:50 a.m. Sunday morning at Royal Banquet Hall on West Gate City Boulevard.
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Greensboro police have fired a police academy cadet after his arrest for impersonating an officer.
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Greensboro will receive funding to expand LEAD programs, which divert people from jail into addiction treatment.
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Thompson joined GPD in 2003 and was named police chief in 2022. He steps down after nearly four years in the role.
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The move comes after a bystander's video of the arrest of Nathaniel Williams drew public scrutiny.
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Chief John Thompson said in a press conference two weeks ago that he was unsure if force was warranted in the arrest.
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Thompson has led Greensboro's police department since 2022.
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Some residents have requested an end to regulatory stops and police reforms that will include more de-escalation training.
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The video circulating online shows an officer repeatedly striking Nathaniel Williams, 37, while holding him down and attempting to handcuff him.
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A viral traffic stop video posted to social media earlier this year led to calls for changes to police search policies. After reviewing the full body camera footage of the incident, the mayor is standing by the police department.