Brookhaven denies alcohol license renewal of two nightclubs

Brookhaven, GA, November 20, 2019 – The City of Brookhaven has notified the XS and Medusa nightclubs that licenses to serve alcohol will not be renewed in 2020.

In a letter dated Nov. 20, Brookhaven Finance Director Aleksandar Dimov stated the City is not renewing the license for XS Restaurant & Lounge “based on a pattern of misconduct and repeated failure to timely file and pay excise tax returns as required…”  A similar letter sent to the license holder for Medusa Restaurant & Lounge was due to “a pattern of misconduct, failure to cooperate with law enforcement officers, and repeated failure to timely file and pay excise tax returns as required…”

The issue of non-payment of excise taxes dates back years. 

In December 2018, the City conducted an excise tax audit of all of its 77 establishments licensed for on-premises alcohol consumption between January 2016 and March 2018.  Of those, 13 were initially found to have underpaid their taxes.  After notifying the businesses of the discrepancy, all of them paid their taxes, or made arrangements to make payments.

In the letter to Medusa Restaurant & Lounge, Dimov notes that the establishment reported no alcohol sales at all between February and July 2019, even though alcohol distributors reported purchases by the nightclub in the same time period. 

In April, the City of Brookhaven previously notified the Medusa nightclub that its license to serve alcohol is suspended pending payment of $32,240.29 in back taxes.