A beloved Jacksonville small business may have to close its doors next month after a recent visit from the ABC Commission changed everything.
The Grazing Tray owner Samantha Prevatte posted on the business’s Facebook page on Jan. 12 with the news they would likely be closing on Feb. 4 after learning they could not operate under the same roof as Dewey’s Bar & Bistro, which they had been doing for the previous six months.
The Grazing Tray relocated to 720 Court Street in mid-2023, but it wouldn’t be the only business in the building. While The Grazing Tray would operate during the day, Prevatte and business partner Jennifer Morton would open a new business, Dewey’s Bar & Bistro, which would operate during the evening.
Over the last several months, the concept appeared to work well, until Dec. 11, when a scheduled meeting with the ABC Commission took a turn.
Prevatte thought she would be signing Dewey’s permanent liquor permit, as the business had already been operating under a temporary permit and had received a cleared visit from ALE.
She explained that she and Morton had been honest from the start, ensuring they were compliant in every step of the application process. She also noted that she and Morton have sought legal counsel in the matter, but this is where they are.
“If I had the financial means and time to find another building in the downtown area, renovate it and fully furnish it, I would spend every waking moment making it happen, but unfortunately, everything I have lives and is invested at 720 Court Street because this was supposed to be home until God felt my serving clock in this capacity was up,” Prevatte said in the Facebook post.
The same day, she posted a short video, explaining the situation further.
She said she was told that two separate entities cannot own separate businesses within one location, as it goes against state law. But according to Prevatte, there was no point in the application process where they were made aware of this.
Prevatte said she and Morton met with the city of Jacksonville to try to convert the building back into two units, adding the city was prepared to expedite permits and do what they needed to make it happen.
However, Prevatte said the ABC Commission told them they’re unable to do that. That’s when she had to make the difficult decision to announce the closure of The Grazing Tray.
“Jennifer has been a staple in 720 Court Street coming to life. We’ve done it together and we are both deeply invested into Dewey’s Bar & Bistro,” Prevatte said in the video. “So, when it came down to make a decision, I knew that God would take care of The Grazing Tray, no matter what that looks like. I know her and I will take care of Dewey’s and so I’ve made that really hard decision.”
ABC Commission respondsThe Daily News reached out to the ABC Commission for comment and clarification, receiving an email response back from North Carolina ABC Commission Public Affairs Director Jeff Strickland.
Strickland explained that upon receiving an application packet, ABC Commission staff work diligently to confirm all the necessary information has been provided. If determined the application is complete, a temporary ABC permit will be issued, which allows permit-holders to go ahead and begin conducting business while the full audit process takes place.
Once audit staff can follow up and confirm everything is correct, a permanent permit can be issued. When ABC visited Dewey’s for that follow up visit on Dec. 11, that’s when they said they discovered the issue.
“However, this does not mean that both businesses can’t ultimately exist, and ABC Commission staff have explained the possible options to the permit-holder for Dewey’s Bar + Bistro,” Strickland said.
One option is that the ownership entity for Dewey’s can take control over The Grazing Tray, so no changes would be needed to the current permits. The other option would be for the permit-holder of Dewey’s to withdraw their current permits and The Grazing Tray ownership entity could reapply.
“Multiple types of businesses can be run on one ABC permit, but they must be under the same ownership entity,” Strickland said. “ABC Commission staff have also expressed a willingness to be flexible and allow the permit-holder more time to pursue the course of action that works best for them.”
Prevatte and Morton released a statement in response Friday, saying they have yet to be shown the statute that forbids them from operating the way they are. They said they’ve been told only one business can operate under a single liquor license without an ownership structure amendment.
However, The Grazing Tray doesn’t sell alcohol, nor do they want to.
“We are being told six months after the fact that we must combine our two very differently operated and very differently owned businesses into one business for a purpose we don’t even want,” their statement said.
Prevatte and Morton added the ABC Commission has now told them the two businesses cannot even share a kitchen and bathroom, despite the fact the businesses don’t operate at the same time, leaving them no feasible solution from a building and construction standpoint.
“We have racked our brains and met with professional after professional to find solutions that for some reason unbeknownst to us, the commission continues to place roadblocks in front of,” Prevatte and Morton’s statement said. “While the commission would like the public to believe they have tried to work with us, they have continually been vague in answers and provided very little actual documentation to even let us know the parameters we are able to work within.”
Not giving upThe two women nearly gave up, according to another recent post from The Grazing Tray, but the community’s overwhelming support, as well as that of various government officials, have inspired them to keep fighting.
Prevatte said those officials include Senator Michael Lazzara, Rep. Phillip Shepard, Onslow County Commissioner Tim Foster and former Senator Harry Brown.
“We are not a harm to our community and believe that the commission should be bound to their original decision,” Prevatte and Morton’s statement concluded. “We believe that government and institutions in place are designed to teach and serve their communities, not prohibit the success and growth of the thing that builds our towns — small businesses.”
A change.org petition was started by a local community member and as of Jan. 19, had 2,396 signatures. The petition can be found here.
The Daily News reached back out to Strickland for the specific statute in question and with additional follow-up questions. Strickland responded explaining an applicant must have control over the premises of a business to qualify for an ABC permit, which is defined in statute 18B-101(12a).
“The information provided in the application for Dewey’s Bar + Bistro did not reference any other business or ownership entity, and this was only discovered as audit staff were going through the process to move this business from temporary to permanent ABC permits,” Strickland said.
Strickland added that although The Grazing Tray does not sell alcohol or operate with an ABC permit, an ABC violation or alcohol-related crime could still take place at the premises, hence the need for “clear regulatory accountability.”
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