Hearing officer William Linkous listens to testimony from the city of Brookhaven and representatives of Josephine nightclub on May 7, 2019. TIA MITCHELL/TIA.MITCHELL@AJC.COM

Brookhaven settles dispute with one nightclub, two others in limbo

Medusa Restaurant and Lounge has worked out a payment plan that will allow it to remain open while paying down $32,240.29 in back taxes owed to the city of Brookhaven.

Medusa is one of three clubs that was in jeopardy of having its license to sell alcohol suspended by the northern DeKalb city. Brookhaven leaders say the clubs didn’t pay enough taxes based on an audit of alcohol sales and is demanding payment.

The clubs missed a deadline to appeal the amounts owed but later challenged the suspension of their alcohol permits. Those appeals were scheduled for a hearing Tuesday, but Medusa worked out an 11th-hour settlement.

The city accepted an initial payment of roughly $11,000 Tuesday, and another $5,000 is due by Friday. Medusa’s owner also agreed to make six additional monthly payments of $2,686.69 until its debt is paid off.

The other two nightclubs -- XS Restaurant and Lounge and Josephine Lounge -- moved forward with their appeals. Hearing officer William Linkhous will make a ruling within 15 days.

In the meantime, both XS and Josephine representatives said they will meet with Brookhaven officials in hopes of reaching an agreement. The city says XS owes $18,443.88 in back taxes and Josephine owes $48,334.92.

Related | Brookhaven nightclubs may lose liquor licenses over tax dispute

Related | Brookhaven nightclubs appeal loss of liquor license

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