Restaurant settles alcohol dispute with state regulators

A Corbin restaurant facing charges it violated state alcohol laws will get to keep its liquor license, according to a tentative settlement reached with the Kentucky Alcoholic Beverage Control Board (ABC) Monday.
According to ABC Staff Attorney David Barr, Angels and Wings Restaurant and Barr will be allowed to continue alcohol sales under “stringent” supervision from state and local inspectors.
“The handcuffs are on them,” Barr said Tuesday. “The agreement is pretty tight.”
Though the three-member ABC Board has not signed off on the settlement yet, Barr said he expects it to be final by the end of the week.
Angels and Wings owners were scheduled for an administrative hearing on the violations in Frankfort Tuesday afternoon, but the hearing was canceled because of the agreement. Restaurant owner Scott Johnson, along with an attorney, appeared before the board during two preliminary hearings earlier this year.
“We’ve been working on it for the two or three weeks,” Barr said. “We just got the last details hashed out Monday. We got the hard part done quickly … it was the easy part that took so long.”
Though unable to give specifics of the settlement, Barr did say the restaurant’s state liquor license was technically “revoked,” but that the revocation was suspended as long as there were no further violations in the next two years. He added that the agreement included fines and required more frequent supervision by state and local ABC officials.
Investigators with the ABC claim the restaurant sold alcohol to underage patrons, over-served alcohol to already intoxicated customers, failed to pay taxes owed to the State Revenue Cabinet, and failed to meet minimum food sales requirements of 70 percent of gross receipts. In February, Corbin police, along with ABC officers, conducted a late-night raid at the restaurant and arrested five people on various drug and alcohol related charges. Three crack pipes and some marijuana was reportedly seized.
According to police, the raid was the result of “numerous” complaints of underage drinking, over-serving of alcohol and drug use at the restaurant.
Corbin Police Chief Carson Mullins, who also serves as the city’s Alcoholic Beverage Control Officer, said he has “no problem” with the agreement.
“I think it’s going to send a message to everyone that you are either going to comply with the alcohol laws or you are going to lose your license whether you like it or not.”
Angels and Wings operated for over a month in June when the restaurant lost it’s local liquor license on a technicality. Owners failed to file paperwork for an annual renewal before deadline.
Mullins said he would continue to closely monitor the restaurant for violations. Barr said he will receive monthly reports showing whether or not it is selling enough food.
During a recent visit, Barr said the restaurant appeared to be in compliance.
“I know the way people try to hide numbers and pad stuff and I didn’t see that.”