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City Partner, Edison Developer Fails State Liquor Audit with 101 Restaurant

Posted on February 17, 2015

City Partner, Edison Developer Fails State Liquor Audit with 101 Restaurant

The Edison Restaurant, formerly known as the Brew Pub, in Cascades Park is due to open in late summer. Tallahassee Reports has learned that the individual the City of Tallahassee chose to partner with, Adam Corey, is now in trouble with the state of Florida over an audit of a restaurant he currently owns, 101, which is located downtown in Kleman Plaza.

Adam Corey is listed as a principal of the Tallahassee Hospitality Group, LLC which lists the 101 Restaurant as its address in public records.

The audit from the Department of Business and Professional Regulation is addressed to the 101 Restaurant located at 215 West College Avenue and says in part, “The findings indicate that you FAILED to meet the 51% requirement. Our Bureau of Enforcement will be notified of these results.”

The full audit can seen here.

At issue is the amount of liquor that can be sold at the 101 Restaurant. The beverage license owned by 101 allows for food sales of 51% and liquor sales of 49%. The audit reveals that for a two month period – October 2014-November 2014- the percentage of liquor sales for the 101 Restaurant was 60.3%.

During this period, food and non-alcoholic sales totaled $225,603 for the 101 Restaurant. This means the beverage license would allow for just over $216,000 in liquor sales. However, the audit shows liquor sales totaled $337,348, which is approximately $120,000 more than allowed.

The Edison

City Commissioners, including now Mayor Andrew Gillum, held out that Mr.Corey was the right partner for the controversial development in Cascades Park because he was a successful restaurant owner.

One of the concerns of residents living near The Edison was that the location would eventually become a bar, and with that, would come late nights and unwanted issues.

Also, many restaurant owners have told Tallahassee Reports that the only way The Edison could survive is if it sold more than the 49% of liquor allowed.

Unfair Competition

Business owners that have seen the audit told Tallahassee Reports, that due to the profitability of liquor sales, they doubt 101 Restaurant could survive by following the 51% rule.

Another issue that has surfaced with this audit is how competitors of the 101 Restaurant are effected by the violation of the beverage rules.

Businesses that desire to sell more than 49% alcohol must buy a “Quota Liquor License.” These licenses can be hard to get and are expensive. Tallahassee Reports has been told that, when available, prices range from $100,000 to $500,000.

Clyde’s and Costello’s, located downtown near the 101 Restaurant, owns a liquor license, and would have an advantage, one the owner paid for, over the 101 Restaurant, if the beverage rules were followed.

Mike Ferrara, owner of Cabo’s Taco’s, who has voiced his concern over unfair competition from The Edison, told Tallahassee Reports “I paid $150,000 for my liquor license and it is unfair for someone to blatantly ignore the rules for their own personal benefit. It hurts local businesses that are following the rules.”

Tallahassee Reports also reached out to Scott Carswell, owner of The Moon and a liquor license, who said that “this has been an issue for as long as I can remember. It is unfair to other law abiding business owners. Restaurants without a liquor license should close at midnight.”

Dave Ericks, who bought Clyde’s and Costello’s in 1976 says it is a fairness issue. He told Tallahassee Reports that “a SRX  license (allowing 49% liquor) is relatively cheap and liquor licenses run between $400,000 an d$500,000. Those owners with a SRX license that say they are a restaurant and sell 60-70% liquor are taking money out of the pockets of those of us who invested money in a liquor license.”

Tallahassee Reports has reached out to the City staff for a comment and to the Department of Business Professional Regulation. We will report any comments when they are received.

7 Responses to City Partner, Edison Developer Fails State Liquor Audit with 101 Restaurant

  1. Hope Reply

    February 17, 2015 at 11:48 am

    You mean the mayor’s campaign treasurer and the same person who received a million dollar business windfall compliments of the city commission failed a state liquor audit? Hahaha

    Maybe the difference makes up for their campaign contributions (bribes) to elected officials?

    Cascades Park with a sinkhole where the frontage road leads to the bowels of Tallahassee, the art sculpture on Gaines at FSU that looks like Mary Poppins landed upside down, a new traffic circle that led to a fatality the week after it opened, contracts to the usual suspects (Gary Yordon), commissioners circumventing the residency requirement, a CDA 911 facility that has poor management and they scapegoat the rank and file. Seriously, we have some very irresponsible voters out there.

  2. George K. Walker Reply

    February 17, 2015 at 5:23 pm

    I predict this won’t be the last failure report. The losses, including loss of rent (revenue), should they become a burden to the City treasury, should be paid from each siting City Commissioner’s personal funds.

  3. richard Reply

    February 17, 2015 at 8:53 pm

    How would a state and local LOBBYIST (Adam Corey) ever get
    this license?!

  4. Joseph Reply

    February 18, 2015 at 4:57 pm

    Did he also fail paying 600,000 in taxes or something like that?

  5. Anon Reply

    February 18, 2015 at 10:40 pm

    He still owes the previous owner of Mint/101 almost half a million dollars.

  6. George Reply

    February 20, 2015 at 7:23 pm

    What an appropriate name and metaphor. Corey and the City are stiffing the competition and playing with corked bats. Edison stiffed Tesla. See “edison’s medicine” by Tesla

    https://www.youtube.com/watch?v=-2zwBRa0YhA

    Can’t wait for Carswell to bring Tesla back to Tally at the Amphitheater. Its been since ’97 when he brought them to the moon.

  7. Robert Reply

    March 12, 2015 at 12:12 pm

    Ass-backwards as usual. The issue should not be the fact the restaurant exceeded their percentage for 2 months (out of how many?) but should be focused on the exorbitant cost of a liquor license. I think it is ridiculous that anyone should have to pay a $100,000 just to start up a business.
    Rich keep getting richer, and the moonshiners go to jail.

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