State treasury officials auction off Firefly Club's assets
Michigan State Department of Treasury officials auctioned off the Firefly Club's assets today - nearly two months after seizing the jazz venue because its owner fell short on back sales tax payments.
The owner, Susan Chastain, watched this morning as about two dozen people at the South Main Street club bid on everything from posters of performers to a piano.
“It’s a shame to see it go,” she said. “It’s a home for a lot of musicians and jazz lovers. It’s been a great 10-year run, and it will be a good memory for people, I hope.
"Just because the Firefly Club is closed doesn’t mean jazz is over.”
Chastain is establishing two non-profits to promote jazz performances and educational programs, she said.
State officials seized the club Aug. 13, and Chastain had until the start of the auction to pay the money she owed if she wanted to reclaim it. But she fell short.
The club's liquor license was auctioned off; state officials said the awarding of the license is contingent upon approval by the state Liquor Control Commission.
Tools, tables, a refrigerator, wine rack and other items also were auctioned.
Chastain does not own the building, officials said.
Treasury spokesman Terry Stanton, who is barred by law from discussing specifics about the case, said the department works with taxpayers to remedy situations.
“Our goal is always to bring taxpayers into compliance and keep them in compliance moving forward,” said Stanton.
Stanton said the amount of money the auction raised won't be available today, and he would not discuss any other enforcement actions the state may take.
In August, Chastain said the club owed $120,000.
Longtime fan of the club Dick Magee of Ann Arbor was among a group of people pooling money today to bid on a piano to use for future local jazz performances. The auction, he said, made him want to cry.
“I’ve been addicted to jazz for a long time,” he said. “Susan’s a person that cared about people and cared about the music and operated on a shoestring budget and did her damnedest to keep it going.”
Several of Chastain’s friends bid on posters signed by musicians who performed at the club since it opened on South Ashley Street in 2000. It’s been at the current location since 2007.
The Dr. Lonnie Smith Trio and the late Maynard Ferguson were among the bigger names on the posters.
Paul Klinger, a cornet player for the Ann Arbor-based Easy Street Jazz Band, played at the Firefly on Fridays until it was seized. He misses the warm atmosphere and fans.
“It’s really too bad that this had to happen,” he said. “It was just a great place to play and I enjoyed the scotch too.”
Comments
ShadowManager
Sun, Oct 11, 2009 : 11:38 a.m.
The move from downtown to the hinterland of S. Main was the death sentence on this place. No one goes down there for anything. Witness the death of Leopolds, the consistent failure of any restaurant in Ashley Mews. They lost foot traffic and lost their business.
Craig Lounsbury
Sat, Oct 10, 2009 : 6:40 a.m.
In a town like Ann Arbor if one possesses a liquor license, paying your bills and staying "above water" should be doable in my opinion. The key to viability was the liquor license, not the form of musical entertainment. I say this as one who has very little interest in jazz. I confess to being tone deaf, it all sounds the same to me. I do think collecting a sales tax from a customer and not passing it on as required seems, somehow, morally more egregious than not paying ones personal income tax.
Ponycar
Fri, Oct 9, 2009 : 2:14 p.m.
The issue for the State was probably "Can this business be a going concern going forward". If the Firefly had no practical plan to make enough money going forward, the State might as well cut it's losses and have an auction. I've seen it with business renters before. Their future profits are based on income that is unlikely to appear. They're based on wishful thinking. I don't know if that's the case here but, if the Firefly couldn't make a profit in the past, what is going to change to allow them to do so in the future? And why didn't they do it in the past?
Adam Jaskiewicz
Fri, Oct 9, 2009 : 12:29 p.m.
Yeah, really sad to see it go, but that's what happens when you don't pay your taxes. People, the government doesn't WANT to close businesses; they want their money. They're unlikely to get all of the money back from an auction, but at some point they have to cut their losses before it cuts too much into the government coffers (thus causing budget shortfalls, tax hikes, and even more people who can't afford their taxes).
GerryD
Fri, Oct 9, 2009 : 11:21 a.m.
re: insufficient support While I don't know the specifics, this was a case of sales tax not being paid. Sales tax is collected as part of the purchases customers make, so in theory, if there are few customers, there is few/little dollars to send in and if there are lots of customers, there is more. You don't need a lot of folks to generate enough money to pay sales taxes -- it's just a percentage of what you do sell, no matter how little or much The reality is that if you sell $100 in goods and charge a total of $106 ($6 with sales tax), then that $6 should be put aside to be paid to the government. The $100 should already cover your expenses and if not enough, that's a different problem. Dipping into the cash that is supposed to be set aside from the sales tax collection is a serious no-no. It cannot be considered part of usable cash for planning or day-to-day use. Like an employer spending their employees withheld taxes instead of sending them into the government. The state/feds take a very, very dim view of this and it's really bad practice. Doing this will put you in a very nasty situation with them and they are not likely to be interested in helping out (it's borderline fraud). That all said, I'm pretty sad to see Firefly gone :-(
Adam Jaskiewicz
Fri, Oct 9, 2009 : 11:09 a.m.
Kerrytown Concert House, UMS, et al, while great venues, are completely different from something like Firefly Club. A club generally has: - Audience arranged in table/conversation groups, not in rows. - A dance floor, or at least an open area where people can dance if the music moves them to do so. - A bar.
Adam Jaskiewicz
Fri, Oct 9, 2009 : 10:45 a.m.
rusty shackelford: Goodnight Gracie's is fun. Not a lot of room for dancing, but last time I went they had some good live blues/rockabilly, and they make a good old fashioned.
charis
Fri, Oct 9, 2009 : 10:37 a.m.
Of course she understands! If enough people had supported the Firefly, there never would have been a problem. I'll miss the Firefly terribly. jazz in the bigger venues isn't the same, plus there are a lot of local musicians who won't be so easy to hear anymore.
eCoaster
Fri, Oct 9, 2009 : 8:52 a.m.
I hope Chastain understands that even non-profits have payroll tax responsibilities.
ownrdgd
Fri, Oct 9, 2009 : 7:34 a.m.
Hellooooooooo.Time to wake up and face facts folks.I am by no means a fan of government,but they, the state treasury gives you the person in tax trouble every chance to pay what you owe them long before they seize your assets.They gave her a payment plan long before they took control of her business and she failed to pay what she owed,so she is to blame not the state treasury.Pay your bills stay in business.Do not pay your bills lose your business.Very simple
Wolverine3660
Fri, Oct 9, 2009 : 7:12 a.m.
a2grateful - I know about the venues you mention, but, the Firefly and teh former Bird of Paradise were dedicated Jazz Clubs, kinda like Baker's Keyboard Lounge.
heresmine
Fri, Oct 9, 2009 : 12:53 a.m.
'......works with taxpayers to remedy situations." Absolutely NOT. The treasury department refused every offer except complete and total payment. Now they have whatever the auction raised instead of continued payments into the future that could have paid off the debt. Now we all are poorer for the actions of the state.
Patrick Haggood
Thu, Oct 8, 2009 : 4:50 p.m.
Well, fine venues all, but none of these are *clubs*, like Detroit's Cliff Bell's, Dirty Dog or the "oldest jazz club in America", Baker's Keyboard Lounge. Having visited Firefly before I moved here I'd hope to make it a regular spot for me and my wife, too sad it closed so soon after we arrived. I do plan to enjoy some concerts at the places you mentioned, but for the club atmosphere I'm going to have to go to Detroit (or Chicago or NYC)
a2grateful
Thu, Oct 8, 2009 : 4:36 p.m.
Kerrytown Concert House, UMS (Hill, Power Center, Rackham, etc), & several others. Google SEMJA if you are looking for venues & dates.
Wolverine3660
Thu, Oct 8, 2009 : 3:46 p.m.
No venues left for serious jazzin ann arbor any more.
a2grateful
Thu, Oct 8, 2009 : 3:20 p.m.
A sad ending, indeed...