NORFOLK, Va. - The owners of Scotty Quixx in downtown are hoping to stay open as the city targets their status as a nightclub.
Next week, the city council will vote on whether or not to revoke their special exception, which allows Scotty Quixx to operate as a nightclub and serve alcohol late at night.
In a statement, city officials say Scotty Quixx's reporting of their non-alcoholic sales to Virginia ABC doesn't equate to what they've reported to the city on meal tax forms.
Virginia ABC requirements say at least 45-percent of sales must be from food or non-alcoholic drink sales. The city says the discrepancy means Scotty Quixx is either selling more alcohol than it's supposed to, not reporting sales correctly to the city, or both.
City staff are recommending Scotty Quixx lose their special exception, which is now referred to as a conditional use permit.
The owners, Alfred Ragas, Jr. and Chris Johnson, say they were not notified about any issues prior to receiving notice from the city last week.
They say if they were to lose their exception it could mean closure. "This is part of our livelihood," said Johnson.
"This would take a lot of money away from our family," Ragas said. "You're going to take all that away from us for something that could've been a slight mistake that we could've corrected immediately. I feel like they're lumping us in with other places down here and we're nothing like that."
John said the notice they got about the sales discrepancy was vague. "It doesn't give a time range. It doesn't give a dollar amount. It doesn't say if it was one month. It doesn't say if it was a year, ten years. It doesn't say anything, so we're just completely confused," said Johnson.
The owners and their attorney will be in front of the city council on Sept. 27 to make their case.
"It feels like we're not welcome to be here anymore. We're trying to figure out why that is when we've been here for so long," said Ragas.
City Manager Chip Filer was unavailable to do an interview Wednesday, but has previously made it clear the city would be reviewing permits for downtown businesses and wanted owners to explain why they should be able to stay open.
"That explanation should include what benefits you provide to the overall health, culture, and entertainment of our citizens by way of your establishment operating in the downtown district," he said in August.
In addition to Scotty Quixx, California Burrito could lose its conditional use permit due to concerns of overcrowding. The owner did not return a request for comment.
Last week, city council members voted to take away Legacy Lounge's conditional use permit.
Earlier this month, the city shut down Culture Lounge & Restaurant.
