Suede, other Greenville Avenue bars to be audited

By Chad Jones, Pegasus News

Activist Avi Adelman tipped us off to an auditing campaign of sorts that's circling through the Greenville Avenue area. As of late December, Suede is in the process of being audited in order to ensure that [the] business is operating in compliance with the Dallas City Code provisions concerning the sale and service of alcoholic beverages (link to City Code re Mixed Bev Audits).

A call to Ed Levine, the interim director of Building Inspections, heading the Suede investigation and author of the previous quotation, has confirmed that Suede, along with the following Greenville Avenue bars, will be audited:

  • What?Bar
  • Crem
  • Barrocco (closed)

A few clubs/bars outside the area have made the list as well:

  • Che Nightclub and Restaurant (10333 Technology Blvd)
  • Los Sapitos (3400 Lombardy Lane)
  • Club Kaoba (10011 Denton Drive)

Have a nice day.

BD Note: We have been up to our floppy ears doing an end-of-year inventory at the secret lab on Stemmons Freeway, so finding time to blog during the past few weeks has been tough (though we did find time to post photos of our victorious Philadelphia Eagles).

BD passed his copies of the audit letters to Mike Orren's for review.

The information requested in this audit demand letter is much more comprehensive than the data requested in 2004 - a simple form asking for total sales numbers.

BD has not been able to determine why demand letters were not sent to ten bars on Lower Greenville, as was announced by the City Attorney and NSA Hunt in early November.

The four Lower Greenville businesses being audited are operating under Certificates of Occupancy claiming to be restaurants without drive-in service. A spot check of their websites and other sites like Guide Live did not reveal any menus, food service or other proof they actually serve real food to their customers.

The audit will determine if the business is violating the 75/25 rule: A business claiming to be a restaurant without drive-in service cannot exceed alcoholic beverage sales of more than 75% of their total sales. Exceeding that number makes them a bar - and that means they will need Special Use Permits in order to continue operating on Lower Greenville. It also means they have been lying through their teeth for all the years they have been in business, which would come as no surprise to most rational people.

It is interesting that What?Bar made the list: before it opened, neighborhood residents were assured by the City that they had a fully-operational kitchen facility in the floorplans and under construction. Suede has tried to operate a kitchen service at various times over the past four years, without much success.

Although t-shirt sales do count as non-alcohol sales items, it is not clear if cover charges are also included in this figure. Since this is a cash-only transaction, how do you prove how much of this money went into the record books and how much went into the owner's pockets as unreported income?

There are 12 different records and documents demanded by the City within the next 30 days. This list was developed after City Auditors consulted with various state agencies like the TABC and State Comptroller.

The bars have the right to declare certain documents as confidential, but information related to the numbers used to calculate the sales ratio (alcohol to non-alcohol sales) should be open to the public. You know BD is gonna ask for them; no matter what the bars or City claim as confidential, the final decision will be made by the Texas Attorney General.

List of documents and records demanded by the City for audit

Pursuant to Section 51A-1.104(a)(4) of the Dallas City Code, I request that you provide the City with records that document your gross revenue at this business and your gross revenue derived from alcohol sales for the past calendar year (January 1, 2006 through December 1, 2006). This documentation should include all of the following that evidence or relate to transactions during calendar year 2006 at the Property:

  • Description of all revenue sources for the business
  • Description of procedures for bar sales (include snack bar sales and restaurant bar sales)
  • Texas Sales Tax Reports
  • Texas Mixed Beverage Tax Reports
  • TABC Application for that year
  • Accounting records, general ledgers, and detail of any accounts that relate to all the transactions from this establishment, including sales summary reports, daily cashier's reports, and bar inventory reports and bar reconciliation reports
  • Invoices for the purchases of all alcoholic beverages
  • Invoices for the purchases of all non-alcoholic beverages (ie food, novelties, etc)
  • Receipts of alcoholic beverage sales
  • Receipts of non-alcoholic beverage sales
  • Bank statements from financial institutions that you use in relation to this establishment
  • Schedules showing calculation of fees paid to the City
  • Audited financial statements, if any
By Avi S. Adelman under Public safety , Dallas City Hall