Guest Column by Renee Hajek
Owner, Stay. Social, Tap & Table
The below was edited for length.
I am deeply troubled by the way this issue has been handled and I would like to dispel any confusion from media coverage and let you hear directly from me. Your support is immensely valuable, and with your help, I am hopeful that Stay can continue in business, and be the community-driven, “all are welcome” establishment that we set out to be three years ago.
First, there is the matter of the Columbia County Development Authority’s role as it pertains to my beer and wine license. My agreement with them states that I am to provide financials to prove my $1.2 million in sales within my first two years. I provided documentation proving that I surpassed those goals, with roughly $1.6 million. Those were accountant-provided, income tax basis P&L statements and were intended solely to prove that I had met my overall sales goals as set forth in the grant/promissory note agreement.
Notwithstanding the fact that they did not have the correct reports, they derived erroneous calculations of my food sales at 45.55 percent for 4.5 months in 2020, 47.92 percent for 2021, and 46.1 percent for six months in 2022.
Loose and casual conversations were entertained with the Development Authority regarding how to bring those numbers up but never was it discussed that these numbers would be considered for my alcohol license’s gross food sales as a percentage of total sales requirements.
Those reports do not show many food-related sales that were disbursed in different ways (i.e., charity events where profits were disbursed, service fees for entertainment nights that were used to offset our cost, unredeemed gift cards, etc.)
The Development Authority turned those P&Ls into the Board of Commissioners, stating that I was in violation of the alcohol ordinance because I had not met my 50 percent food sales requirement, disregarding the ordinance wording that the 50 percent requirement was based on gross sales, not cash-basis income numbers.
The Director of Development Services, Paul Scarbary, has the ultimate responsibility of oversight of this ordinance requirement, not the Development Authority (Robbie Bennett). Scarbary never reached out to me requesting gross sales figures and never had any conversations with me at all regarding my sales.
Further, County Manager Scott Johnson informed me on several occasions that there was no process in place for review of food sales figures as they relate to alcohol ordinance requirements; however, the ordinance clearly gives them the right to request those numbers.
So, as you can imagine, I was blindsided when served with an action notice to suspend/revoke my alcohol license as a result of the numbers provided to the Development Authority.
I responded to the action notice with my dispute of the validity of the numbers upon which they based their action. I included in my response a set of more clearly defined financials that I believed to be more accurate for 2021, which was my first full year in business (the ordinance states “total annual” indicating a full year coinciding with the licensing period, January-December).
These showed 50.3 percent food sales, which I thought would be sufficient, even though I knew there were more unaccounted-for gross sales within my books; again, never having been requested gross sales figures by Development Services. The hearing was held, and still, no detailed explanation was requested by the Board.
I did not anticipate that such drastic action would be taken, or I would have had legal counsel in attendance with me on that day. Nonetheless, without so much as a conditional stipulation for compliance, or a request for an audit of my books, the Board voted 4-1 to revoke my license.
Despite the fact that the ordinance provides them specific authority to consider extenuating circumstances (covid, business re-organization, lack of government assistance that other F&B businesses were afforded), they did not so much as give me a chance. The same board that voted unanimously to change the alcohol service law for me in 2019 and offered me financial incentives to open in the Meybohm building, chose to attempt to put me out of business.
Judge Blanchard appointed a mediator, who was confident that a settlement could be reached. Sadly, they were not willing to negotiate. There are underlying reasons, which, I am sure, will be revealed at a later time.
Gross sales, based upon research from several sources as well as my CPA and our consulted third-party CPA are defined as total revenue prior to discounts, comps, or disbursements. During mediation, I provided gross sales figures reviewed and signed by both CPA firms, which included a list of additional figures that were not included due to the disparity of the ordinance, but really could have been.
This includes multiple charity events that produced revenue, directly and indirectly, disbursed to charities; community sponsorships directly related to our food service re-build after our original co-operating partner left our organization; merchandise sales generated for the same purpose; and other “gratis” food contributions that Stay has made.
These figures were given to the commissioners and their counsel during mediation. We have backup documentation to prove each of those line items. We could even argue that the $100,000 we received from the IRS for the Employee Retention Credit could be applied, as the fund was intended by the government to help keep food service establishments in business. All of these items are most certainly representative of revenue prior to discounts, comps, or disbursements.
This makes absolutely no sense to me or anyone who has patronized my establishment. We have numbers to prove our food sales (as presented in mediation in detail, certified by two separate CPA firms).
Further, we have become a beacon of new life within the community. We promote roughly 75 other local businesses within our establishment. We hold charity events, and community celebrations including military gatherings, birthday parties, company meetings, baby showers, Rotary clubs, Chamber of Commerce after-hours, etc.
We have never served an underage guest, we have no complaints from the police department about unruly guests and we serve food during every minute of operation of our taps. We do not sell alcohol for less than what we pay for it. We pride ourselves on being a responsible & respectable alcohol licensee. We are exactly what we said we would be when the County put forth effort and money to help bring Stay to life.
In short, should the court decide that the Commissioner’s decision to revoke my alcohol license be upheld, it will be financially detrimental to many. I will not be able to continue to operate, and will likely face bankruptcy. My family’s future is at stake, as is the future of my staff.
Meybohm will also suffer financially from the vacancy. Our patrons will sorely miss us – and in the growth phase of this Evans Town Center, the county will lose much-needed tax revenue. The “community-friendly” reputation that they work so hard to uphold will definitely suffer. The value that we have brought to the community in the “togetherness” aspect alone is unsurpassed, especially during covid when we were operating, while many others were not. I just don’t see how this decision is a win for anyone with a conscience.
Please know that I/we cannot do this without your support. We are currently taking meat/meal orders for a BBQ fundraiser scheduled for this Saturday. Check out the event page here →https://fb.me/e/5bnINEaxi or you can order directly from the Eventbrite page here → https://www.eventbrite.com/e/atomic-city-smokers-smokin-butts-for-stay-tickets-446129103157?utm-campaign=social&utm-content=attendeeshare&utm-medium=discovery&utm-term=listing&utm-source=cp&aff=escb. All funds are going directly to our attorney toward our current obligation, as well as future obligations.
If you are unable to attend the event and you would still like to help, you can donate directly here →https://fundrazr.com/625Wvd?ref=fb_7Boko0_ab_0BokEf. We also have T-shirts, insulated pilsners, and stickers for sale at Stay that have been donated by some amazing local businesses – Marc Yount’s Tire Pros, Heart and Hustle Printing, and Blue Ribbon Awards and Gifts.
My deepest gratitude for your generous support,
Renee Hajek
Owner/Operator
Stay. Social Tap & Table
7025 Evans Town Center Blvd #205
www.staysocialevans.com
