BROOKHAVEN, Ga. -- The war between the city and one of its most recognizable businesses has entered a new phase, as Brookhaven announced it will be enforcing its alcohol ordinance at the Pink Pony.
The city informed the club of its decision Wednesday.
The adult establishment has been operating under a settlement agreement since 2014. Under the terms of that agreement, which expires in 2019, the Pink Pony pays the city $225,000 annually, and could remain open until 4 am.
Revised alcohol laws that went into effect this year. In 2018, establishments that served alcohol, and utilized a DJ, dance floor or stage became subject to an annual license fee of $100,000 and could not serve alcohol on Sundays. Other changes included rolling back the hours of operation to 2 am.
"We were blindsided by this," said Dennis Williams, vice president and CFO of the corporation that owns the club. "We've always worked in harmony with the city; we've always been in compliance with their laws and always been a good corporate neighbor.
"One of the hardest parts of my job is to explain to my employees that we'll be losing hours of business that will adversely affect their income, their tips and their wages, money they count on to support their families."
Three minority-owned Buford Highway nightclubs were suing the city over the fees, arguing they were racist.
Fees paid by the three clubs – Medusa, Josephine's and XS – went from $5,000 to $100,000, and they can't serve liquor on Sundays.
According to Brookhaven law, "entertainment venues" are defined as businesses with a stage, disc jockey or dance floor. Businesses with all those things must pay $100,000 to sell beer and liquor by the drink, so the city said the three nightclubs fall into this category.
But those clubs' attorneys said the Pink Pony has a D.J. and a stage, but operates under a different set of rules. It doesn't have to pay the $100,000 fee, and can serve drinks on Sundays. The city said the Pink Pony is under a separate agreement in order to operate as a strip club.
Earlier this week, U.S. District Court Judge Thomas Thrash sided with the nightclubs, saying, "The city also allows Pink Pony to serve alcohol until 4 a.m. every day of the week. Other alcohol-licensed venues, however, like the plaintiffs, can only serve alcohol until 2 a.m. and cannot sell alcohol at all on Sundays. There is no rational reason for this selective enforcement."
“We were disappointed by the ruling as it pertains to the other entertainment venues, but the message from the federal court was clear: Brookhaven must enforce its laws equitably, and that includes the Pink Pony,” said City Manager Christian Sigman.
Since its 2012 incorporation, the city has been at odds with the Pink Pony, and has spent hundreds of thousands of taxpayer dollars in legal fees in an effort to more strictly regulate the establishment.
