The Chattanooga Beer & Wrecker Board voted unanimously Thursday to deny a permit to a new bar that planned to open soon next door to the Islamic Center on Cemetery Avenue in Chattanooga's Southside neighborhood.
Seven people spoke against granting a permit to Shady's Corner at 1402 Cemetery Ave.
Owner James Heeley argued before the board that the area was rezoned Urban General Commercial, which overrules the city code in other areas that prohibit opening a business that serves beer within 500 feet of a school or church.
The code implemented more than a decade ago allows for alcohol sales at places like Memorial Auditorium, which is across the street from a church, and at restaurants and bars near a school like Battle Academy on Market Street, according to Beer Board Officer Sgt. Jason Wood.
Heeley told the board he had about $1 million of his own money sunk into the unopened venue and that he will appeal the decision. He added that he had planned to have a soft opening next weekend, but the delay could force him to tell his nearly 30 employees to find other employment until the matter is resolved.
The state does not have a distance rule when it comes to serving alcohol near schools or churches, and Heeley said he already has a state license to serve liquor by the drink.
"You can't survive on sandwiches and alcohol," he said of the beer permit.
Board attorney Kathryn McDonald said she wasn't sure how long the appeals process might take because appeals are typically for an alleged violation at an establishment that is already active.
At issue was the proximity of the bar to the mosque, the lack of parking in the area, and the apparent opposing interests of the two entities. Islam prohibits the use of alcohol.
The mosque has been at 1410 Cemetery Ave. for almost 40 years, and members use a building in bewteen the mosque and Shady's Corner for social gatherings, according to Imam Hammad El Ameen. Members of the mosque bought the building that previously housed Corinthians Baptist Church after it closed
It is separated from Shady's Corner -- in the former AABCO Automotive Rebuilders location -- by 6 feet of alley. El Ameen told the Chattanooga Times Free Press in an interview earlier this month that the mosque owns the three buildings on the block next to Shady's Corner.
"We have prayer here five times a day," he said. "We have about 200 to 250 families with kids, and we are here all day, seven days a week.
"This is already a struggling neighborhood dealing with drugs and alcohol, and this is insulting to put something like this here."
About 45 members of the mosque attended the meeting. Seven, including El Ameen, spoke, and several asked members of the board to consider if a bar was being put within 6 feet of their church.
"This is wrong on all levels," El Ameen told the board.
Heeley said he would be happy to work with the mosque members, but that none had reached out to him about their concerns.
El Ameen and others told the board members that they were especially concerned after seeing the Shady's Corner website, where it bills itself as an all-day bar "for freaks, weirdos and ne'er-do-wells on the Southside of Chattanooga."
It also has scrolling text that reads "Good times for bad folks."
Heeley said the bar has a capacity of 80 people with parking for 10 cars in the back. The rest would be street parking, which the mosque also must use. Members of the mosque asked the board to consider the reality of their children and families interacting with people going in and out of a bar all day into the late night.
Heeley, who also owns Unknown Caller, said he expected his clientele to be other food industry people looking to get a meal or a drink after their shift ended. He also said the business is designed with any outdoor activity facing away from the street, and that it is surrounded by an 8- or 9-foot fence.
Contact Barry Courter at bcourter@timesfreepress.com or 423-757-6354.