5/1 food/beer ratio
1) The 5/1 food/beer ratio for “restaurants” for on premises consumption is to remain as is. However, with a new permit for entertainment venues, there is a small loophole for restaurants that would be left to the discretion of the ABB (Alcohol Beverage Board). That small loophole would be that if a restaurant/food establishment that has an on premises consumption beer permit, with an entertainment stage where they hold live music 3-4 hours two nights a week, could potentially apply for an entertainment license and only be subject to a 50/50 food/alcohol ratio instead of a 5/1 food/beer ratio. This would only happen “IF” the ABB were to grant them a permit, taking into consideration that the majority of their revenue would have to come from entertainment and not food. I don’t know of a way to close that loophole and the city attorney seems to think it’s basically a nonissue, so I hope he’s right.
2) A new permit for on premises consumption will be added to city code to include “Entertainment and Amusement Services – Limited” to help open opportunities to bring in entertainment venues to the city. This will also include entertainment establishments that provide live music at least two nights a week, but their primary revenue has to be from entertainment to qualify. Instead of falling under a 5/1 food/beer ratio as restaurants do, entertainment/amusement venues will fall under state law of 50/50 food+/alcohol ratio, meaning at least 50% of the gross revenue is generated from the serving of meals and/or admission/user fees. This will be 1st reading.
A listing of “Entertainment and Amusement – Limited,” would include: Art galleries, commercial; bowling alleys; dance studios and schools; exhibition halls and commercial auditoriums; fitness centers and reducing salons; botanical and zoological gardens; karate schools; motion picture theaters; recording and television production studios; theaters, legitimate; theatrical producers, bands, orchestras and entertainers; video game arcades; escape games venues; and places “SIMILAR in nature” to Top Golf and Dave and Busters.
PLEASE NOTE: Since MJ’s Regal Cinemas are considered entertainment, they “would” be allowed to apply for a beer permit (under 8% alcohol). As I understand it, Regal has had the option of applying for a liquor license (over 8% alcohol) in the past, but evidently chose not to.
3) MJPD and ABB (Alcohol Beverage Board) will be given more authority to hold businesses accountable as PD investigates complaints, who will risk losing their beer permits. The way the code was written prior to this, did not include police or businesses under public nuisance laws. In addition, those businesses who do not renew their beer permits each year will be subject to a civil penalty in addition to the renewal fee. This will be 1st reading.
NEW BOC AMENDMENT PROPOSAL PRESENTED 5-24, 2021
This is the new Ordinance Amendment proposal that was presented by Commissioners Justice and Hefner Monday night at the BOC. The new proposal suggests keeping the 5/1 food/beer ratio and adding entertainment and amusement venues. There is basically three sections that would end up changing in the city code (ordinance), according to the city attorney who drafted the revision.
I do not have the text version and the minutes from the meeting won’t be posted until June 9th. Since I know you are anxious to read it, I went ahead and took screenshots of the proposed changes and pieced them together so you can look over it for yourselves. There are many unanswered questions at this point and I am compiling a list myself. You will have many too and if you’d like, please send them to me and I will try and get answers for you.
On the surface it sounds good, but I have a few concerns. Even though it appears that the 5/1 food/beer ratio would remain in place for restaurants, it could be a loophole for some restaurants to apply for an entertainment license, have live music twice a week, and get out from under the 5/1. Specifically, the one establishment that has never met the 5/1 since being in business. There also is no mention of how many hours the live music would have be, for example, a person with a guitar could only sing one song twice a week. Sounds extreme, but I think it makes a valid point of whether or that would be considered live music enough to get out from under the 5/1.
So far, there is nothing in here that addresses public nuisance laws giving MJPD “more teeth” as suggested during the meeting regarding the previous amendment that was on the table Monday night up for a vote. I believe PD is working on something.
On the entertainment and amusement list I provided, more concerns I have would be regarding karate schools, dance studios, fitness centers, and theaters. Curious about the connection between them and beer permits.
Anyway, I apologize for the quality of the screenshots, but I wanted to go ahead and get it out to you.
UPDATE: RESULTS OF 5/1 Food/Beer Ratio BOC (5-24)VOTE
The two co-sponsors of the 5/1 ratio amendment, Commissioners Justice and Hefner presented an alternate amendment proposal. Commissioner Justice presented it, but it was too complicated to make an on the spot decision. It needs to be studied. Basically it’s keeping the 5/1 but adding music and entertainment. It was confusing because he also brought up the 50/50 again. I have many questions about it. To give it time to be studied, I motioned for a deferral and it passed 3-2. So it will be back June 14 I believe. I will notify you when the date is confirmed. When I completely understand their new proposal, I will let you know what it means.
Thank you all for your feedback and views. I appreciate each one and I always welcome it whether we agree or not. My primary goal for posting was to bring awareness to the public of what’s going on in your city. It generated a lot of interested residents which is what I wanted, because I think the public needs to know.
Let’s review the history behind this piece of legislation to bring you up to date.
Here in the city of MJ there has been a policy in place since the early 2000s. It has been supported by every BOC to date. That policy is a 5/1 food/beer ratio for every sit down restaurant/food establishment that serves beer for on premises consumption within the city limits. The purpose of it was to keep bar-like places (dive bars) out of the city and encourage sit down food establishments. Any restaurant prior to 2002 has to meet a 4/1.
Let’s be clear, when we talk about “beer” we are referring to any alcohol less than 8% alcohol. The 5/1 ratio has NOTHING to do with liquor having more than 8% alcohol. Therefore liquor does not apply to the 5/1. It’s only about beer.
That does not mean you have to order food if you want to go somewhere and sit and drink beer. What it does mean, is the food establishment businesses themselves have 12 months each year to meet $5 in gross food sales for every $1 of wholesale beer sold. It has nothing to do with patrons. It has everything to do with how the business operates and the standards they have to meet.
Last year in January 2020 there was one establishment out of 55 that did not meet this 5/1 ratio, who by the way was the “only one” that didn’t meet it.
The ABB (Alcohol Beverage Board) gave them an extension with another opportunity to be in compliance. They still did not meet it.
It then came before the BOC and we voted to revoke their beer permit at the recommendation of the ABB for 6 months which would complete 1 year as stated in city code. City code states “Where a beer permit is revoked, no new permit shall be issued to permit beer on the same premises by the same business until after the expiration of 1 year.”
Fast forward, In November 2020, Commissioners Justice and Hefner presented an ordinance amendment to give this establishment a new beer permit when they would have been issued a new one in January 2021 anyway, which was about a month and a half after this.
I spoke against it and voted against it for reasons being they were appeasing and catering to one business. The reason they used for their amendment was covid, but the business had not even met it prior to covid. Not only did I feel it was overruling ignoring city code, it was reversing a legitimate previous BOC decision. This was not fair to all the other establishments that were required to meet the 5/1 and did meet it. Their amendment ended up passing 1st and 2nd reading so the establishment was issued a new beer permit a month and a half early.
Fast forward again to April 2021, Justice and Hefner once again co-sponsored another ordinance amendment to remove the 5/1 ratio altogether and replace it with a 50/50 food/beer ratio that aligns with state policy. I spoke against it at 1st reading, again stating they were appeasing and catering to one business they both had “personal interest” in.
It has been alluded to, that this 5/1 ratio is hindering music and entertainment businesses from coming to MJ, such as, or something comparable to Top Golf and Dave and Busters. What do Music and entertainment venues have to do with this 5/1 ratio since their primary source of revenue would be entertainment and not beer? That’s questionable and we need to get legal input because I would like it explained, exactly HOW the 5/1 would hinder them.
Justice is a music entertainer who frequently plays at this one establishment. Hefner also have a family member who has performed there. I don’t know if they get paid or if they have a tip jar. I think both of them are awesome and very talented. What I’m trying to paint here is a picture of how the puzzle pieces fit in the big picture and to explain my “personal interest” comment.
There is NO chance that Top Golf would ever come to MJ. Nashville has over 1 million people. Top Golf doesn’t even have a presence in Knoxville yet, even tho they’re are trying to expand there. They would never pick somewhere like MJ with 40,000 people over big cities. Dave and Busters is only 19 miles away. Why would they expand and open another one 19 miles away or even move to a small city with only 40,000 people?
It has also been suggested that the 50/50 ratio would give PD “more teeth” to cite venues if they are causing problems. This is me is an odd statement to me and doesn’t make sense. Also suggested is to “tighten up” enforcement to pull beer licenses under public nuisance laws. We already have a system in place thru the ABB to pull beer permits/licenses. Perfect example is what happened last year. The system worked, until the system was overruled and reversed. That argument is hypocritical. Nuisiance laws? Are we talking bar fights, DUIs? PD already enforces those. Seriously, how would 50/50 give PD “more teeth?” What are nuisance laws? barking dogs, dog deposits left, neighbor conflicts, property issues, dirt bikes, go carts, overgrown lawns, refuse, bar fights, burning… I’m going to have PD come up in a minute to help explain some of these.
Breweries and wineries? That’s different because it applies to and involves manufacturing.
You’ve also been told that out of our liquor tax revenue, 50% goes to the school system, which is good in itself. Let me break it down for you:
The mixed drink tax, which comes to the City via the State, is split between the City and the County School System. That tax is actually down this year when compared to the same time period last year.
The City also receives wholesale beer and liquor taxes directly from distributors. That tax goes directly to the City without any split with the School System. Both of those are up over 20% when compared to this time last year. In other words, wholesale beer tax that applies to the 5/1, as well as retail, is up by 26% so far in 2021 compared to this time last year. Again, THAT does NOT go to the school system.
I suggested and was the only one that suggested a compromise at 1st reading, such as a 4/1 that met city code prior to 2002. Not one other Board member was interested in a compromise. I couldn’t even get a discussion going about it. It ended up passing 1st reading 4-1. If Ray and Scott truly think that someplace equivalent to Top Golf and Dave and Busters might come to MJ, then at the end, prior to the vote, I had another compromise proposal to put on the table, that included music and entertainment venues. There was no need since an alternative was presented.
Let me tell you why I oppose lowering our standards with a 50/50 ratio.
Across the county line into Davidson Co., there is an abundance of bar-like places that surround MJ, including Hermitage, Antioch and Nashville. If this gets approved Monday night we would be opening a floodgate allowing places like the Rusty Nail and Double E’s, just to name two, into our city limits. MJ is a family community, not a bar community. These places have successfully been kept out of our city limits for good reason. The 5/1 ratio is a good policy and should remain in place in my opinion. Currently, all of us, already have the option to go into any of these 55 businesses, sit down and drink beer. Nothing is stopping you from doing this, not the 5/1, or anything else. MANY of these places have separate bar areas.
What I hear from the public, which are NOT MY WORDS, is that MJ is losing its small town feel. Some people think MJ has already lost it. Others want to keep what’s left of it. I vowed to do what I can to keep it as long as possible. Allowing a 50/50 food/beer ratio within MJ, would quickly bring us to the point of just another extension of Nashville. I am proud of MJ and believe we have something unique here, with an emphasis on family and being an excellent place to raise a family. I believe MJ is worth fighting for.
This is NOT about more restrictions which some think I’m creating, this is about lowering the standards.
This may end up passing anyway, but I am fighting to keep the 5/1 food/beer ratio. This policy works and we should not be appeasing and catering to one business. Otherwise, if this one establishment had been meeting the 5/1 ratio over the last two years, there would be no reason to push for change. It is not fair to all the other 54 businesses who have met and continue to meet the 5/1 ratio. When a business opens up here, they know what the policy is and what is required of them. It’s not even in question.
This one particular establishment was hesitantly issued a beer permit when she first opened by the ABB, after warning her about the 5/1 because they had concerns about her meeting it. She “assured” them she would meet it.
Other businesses didn’t meet it and ended up closing or moving somewhere else with lower standards. MJPD had many issues with those places.
This has more to do with “appeasement” rather than “accountability.” I believe in accountability and responsible government, not a government that caters.
Any equivalent bar-like establishment in Davidson Co. would be allowed into the city limits in any of these commercial and industrial “green” areas I pointed out on the map.
Justice says he has a problem in his district and wants to clean it up, because there’s too many auto-related businesses within a 1 mile stretch. If this amendment passes, the chances are VERY HIGH that bar-like places (dive bars), will end up on Lebanon Rd because of the high lease rates in Providence. Sure many would open in Providence are as well as GBG and along NMJRD, but the reality is, most will end up along Lebanon Rd. He thinks he has a problem now. In 3 1/2 years when his seat is up, he’s going to be pushing once again to clean up Lebanon Rd because Lebanon Rd will be know as the bar capital of Wilson County. MJ city limits along Lebanon Rd over 2 miles wide. Can you imagine?
This would be detrimental to our unique family community, because I believe, it’s a bad direction to take our city. Sure it would mean more tax dollars and more liquor/beer tax revenue. But at what cost?