Firefly Club Closed, Assets Seized
A handwritten sign at the entrance to the Firefly Club apologizes for the closing. (Photo by the writer.)
The Firefly Club, a jazz and blues nightclub at 637 S. Main, was closed down by the state last night and its assets seized for unpaid sales taxes. Owner Susan Chastain told The Chronicle that her bank account and other assets have been frozen as well, because she was unable to make full payments to the state over the past two months on a debt of $120,000 – an amount in arrears for assessed sales tax dating back several years.
“We’ve always struggled,” Chastain said. It’s historically been difficult for blues and jazz clubs, she added, but the economic downturn has made it even more difficult to keep up.
Chastain opened the Firefly nine years ago at 209 S. Ashley, where the Bird of Paradise, a now defunct jazz club, had been located. Recordkeeping problems – dating back to the club’s opening – caused the state to assess the Firefly’s sales tax, plus penalites and interest, at about $160,000 several years ago. Chastain said that about three years ago her current accountant negotiated a payment plan, and she started sending the state $2,000 each month to put toward the unpaid sales tax.
The move to their current location in 2007 was a big setback for the business, Chastain said, and last winter was especially difficult. She tried to get monthly payments lowered to $1,000 but was only able to negotiate it down to $1,500 per month through May, when the amount bumped back up to $2,000.
Chastain said she hasn’t been able to pay the full amount for June and July, but that she sent in $1,500 each of those months. She was hoping that a big event planned for Saturday – a 50th birthday party for sax player Tim Ries – would bring in enough money to help pay that bill.
But last night, just before the club was to open, she got a call telling her that the field agent for the state treasury, Barb Weatherbee, and two Ann Arbor police officers had arrived at the club and were closing it down. “It was totally mortifying,” she said. She has 10 days in which to come up with the full amount owed. If she doesn’t, the state will auction off her assets – including a grand piano and several posters signed by musicians who’ve played there.
Calls left for Weatherbee and a spokesman at the treasury department haven’t yet been returned. [Update: Reached late Friday afternoon, state Treasury spokesman Caleb Buhs said he couldn't comment on this specific case, but said that seizures of this kind take place only "after many, many months of working with the taxpayer." He said he couldn't disclose the state's audit procedures or what guidelines determine when property is seized – that information could allow taxpayers to work around the system, he said.
After property is seized, the taxpayer no longer has the option of a payment plan. The entire amount must be paid before the auction date in order to retrieve the property. The auction will occur after a minimum of 10 days from the date of seizure, but it could be longer, Buhs said – the taxpayer has until the date of the auction to make payment. The auction will happen on site at the Firefly Club – when the date is scheduled, it will be posted on the building and in the local newspaper. Buhs said now that the Ann Arbor News is no longer publishing, he's not sure where they'll be noticing the auction – possibly in the Detroit Free Press.]
According to the city of Ann Arbor treasurer’s office, the club also owes almost $2,600 in business personal property taxes from 2007, 2008 and 2009.
Chastain said she’s trying to seek support from whatever corner she can, such as contacting state Rep. Rebekah Warren of Ann Arbor, to see if there’s anything she can do. But the state is desperate for money, Chastain said, so she isn’t optimistic that they’ll cut her a break.
In addition to its stable of regular performers – including the Paul Keller Orchestra, which features Chastain as the lead vocalist – the club has also been a spot for celebrations. In the recent Democratic primary for Ann Arbor city council, for example, councilmember Mike Anglin held his post-election party at the Firefly.
The Ann Arbor School for the Performing Arts, located in the same building, has benefited from its neighbor, according to Stephanie Weaver, the school’s executive director. Students are allowed to sit in and play with many of the professional musicians who perform at the club. “There’s no comparison to that kind of education,” Weaver said.
“This is probably the last really great presenter of this dying art form around this area,” she said. “Performances are so high quality there.”
Chastain said she’s fought hard for almost 10 years to keep the club open. Even if she declares bankruptcy, she said she’ll still face the tax debt: “Taxes never go away.”
A notice posted on the entrance to the Firefly Club.
This is so tragic! There needs to be a benefit to pay off the debt.
Seconded. How can we help?
The Ark offers a compelling model for sustainability: 501(c)3 nonprofit status. Perhaps the next incarnation of the BoP will try it.
Then again, the Ann Arbor Blues and Jazz festival was a nonprofit, and they couldn’t cut it, either.
Jazz wants to be free, but the piper must be paid.
From The Firefly Club’s website:
Tim Ries’ Birthday Party show will be held tomorrow night as scheduled, but will be performed at Kerrytown Concert House, which has graciously lent us their space. Shows are at 9pm and 10:30pm for $10, and Tim is donating all proceeds to the Firefly Club, sweet and generous man that he is. KCH is located at 415 N. Fourth Avenue in downtown Ann Arbor, and their number, if you need it is 734-769-2999.
This is a really devastating loss for up and coming young jazz musicians. Ann Arbor has amazing supportive jazz resources and this was a vital one in training young musicians.
This makes it seem impossible to be a jazz musician.
A real shame. Here’s hoping for a solution.
To clarify, the benefit for the Firefly Club is Saturday, Aug 15 at the Kerrytown Concert House.
http://fireflyclub.com/
Late this afternoon I got a call back from a treasury spokesman – I’ve updated the story with his comments.
Home away from home! Praying for a miracle.
What goes around comes around.
Sad, but not surprising, given the location, and the state of the economy. Makes me wonder how many other local businesses are one step ahead of the tax-man or some other creditor. I suspect there are more than most would care to admit – time will tell. No town is an island in this downturn – as many here are in the process of discovering.
I think what is sad is that given the current economy the state would choose to shutter the business, particularly when BoP has been making at least partial payments. Isn’t this the type of establishment that would help to attract the diverse and vibrant population the Governor seeks?
This is sad, and instead of lamenting, people should wake up – support your local buisnesses, they are treasures. I have known Susan for years & I know she put her heart & soul into her buisness. Sometimes you are given passion as a gift and you want to share it with those around you. That is what Susan Chastain brings to the table. Look around people – local buinsesses of all kinds are struggling, and we are your neighbors. Show your support unless you want a downtown full of chain stores & restaurants. Closures in the past few years: Afterwords, Shaman Drum, the Lamplighter – these are just a few. All made an impact, so has the Firefly Club.
Susan has been an amazing neighbor and supporter to us. She offers something no one else does in a venue that is magical. Shop local, buy local, be entertained locally. This is a tragedy. If Ann Arbor cannot support it’s local businesses, who can.
I hope that next week the Firefly will be able to give several thousand dollars to the Treasury people, they will negotiate a new payment plan, and the Firefly will reopen. This scenario could happen since State Rep. Rebekah Warren has been asked to help, in what is called “constituent services”.
Sorry this happened, but the hard fact is that taxes are too high.
Too many are living off of the state and its expenses have gone uup over the decades. Coupled with the responsibility of collecting and accounting for these taxes for the state and feds, a small business has a daunting task before they even start carrying on their commerce. Its been proven time and again that if you lower taxes, you stimulate growth. So when we vote for additional taxes, remember the Firefly
“Buhs said now that the Ann Arbor News is no longer publishing, he’s not sure where they’ll be noticing the auction – possibly in the Detroit Free Press.”
Interesting use of the verb “noticing”!
If any of the jazz lovers out there have any influence with their state representatives or the Governor’s office, now is the time to call in a favor. I highly doubt there is anything to be gained by selling the assets of an empty club — that’s a drop in the bucket, and you’d think it would be in the state’s interest to keep some kind of payments coming in.
Maybe I’m stupid… but, if sales tax was collected and not paid to the state, the owner was at fault, not anyone else. I understand the passion that went into the Firefly Club, but one can’t blame the state of Michigan here. If I don’t pay the taxes due on my house, guess what happens? If I sell merchandise and collect sales tax and then not give the sales tax to the state as required, then I’m at fault. While nobody likes to see a local business fail, and especially one that has generated so much love in the Jazz community, don’t blame the state of Michigan for seizing the assets. Hopefully, something can get worked out.
I am saddened to see this happen to The Firefly Club but am, unfortunately, not surprised. A combination of factors have led to the decline and demise of the Firefly. The move certainly didn’t help but I’ve felt for years that there was a wealth of jazz talent in the greater Ann Arbor area that for some reason was not being given performance opportunities. Everyone is talking about the “great educational opportunities” the Firefly offered but other than the occasional school big band and sitting in, it wasn’t much. Between musicians at UM, MSU, Wayne State, WMU and others there are plenty of high level student musicians practically begging for opportunities to be noticed. The programming was lackluster and included unnecessarily repetitious booking of the same great local musicians, but what about more of the great Detroit musicians? Cliff Bell’s, Baker’s, Cadieux Cafe anyone?
I think with a greater variety on the calendar the Firefly may have been able to make ends meet and the public who is so strongly lamenting the loss of a club they didn’t attend may have felt compelled to go!
I am aware that the business of operating a venue, much less a jazz club, is very difficult and requires a tremendous amount of hard work, dedication and love of the music. I just think instead of asking “why is nobody here? let’s book hip-hop, techno, and other music” the problem could have been solved with a little creativity and openness to the tremendous amount of talent in the area.
Hope I haven’t been too repetitive.
I’m down with JazzMusician. Frankly, over the years, the programming was beyond lackluster. Paul Keller & Susan were good, and the latin theme a steady diet, but oy, that’s more than boring after a few years of the same thing week in and out.
The new location was a total disaster, but the problems with the Firefly as a club and idea existed long long before.
For my money, I miss the Bird, Ron and acts that were booked there.
While its a shame Ann Arbor lost one more live music scene, lets spend our money elsewhere.
I hope someone that knows how to manage a club will open a jazz club downtown : ) The Firefly was mismanaged from the get-go & now the owner wants other to help save it when it was her fault it went under?? That’s crazy ! I’m surprised it didn’t happen years ago ..
I cannot believe that there will be a benefit to help a business that basically STOLE our money (the customers). The tax that was not paid was sales tax, a tax that is paid by the customer and supposed to be set aside to be paid to the state, not an income tax. The owner made a conscious decision to take the money and spend it elsewhere.
Isn’t this the exact same thing that the owners of Lashish did?
What I find even more surprising is that Mike Anglin (and possibly Rebekah Warren as mentioned above) think that this is ok. Mike Anglin announced the benefit at the council meeting last night inferring that the failure to pay the taxes was not the owners fault. It is 100% the owners fault!
Where is the integrity? Where is the sense of personal responsibility? I understand that loyal customers are upset, but having an elected official endorse the illegal actions of a business disturbs me to no end. Out of only one side of Anglin’s mouth he cries “integrity”, but that only applies when he can use it as political opportunity.
I choose to support the Firefly Club and any effort to reopen it. It’s okay if you choose to not participate in the effort. I’ve been a steady customer of the club for the past two and a half years and would like the enjoyable experience to continue. The State of Michigan is not the bad guy in this. Many are struggling financially these days, including the Firefly and our state government.
I agree with my two cents. The business was mismanaged and public officials involving themselves in this is ridiculous. I think we should support local businesses when they offer a compelling reason to do so. But then the same musicians are featured week after week, and the location continues to relocate, most lose interest. The Firefly should make a graceful exit and hopefully a more interesting jazz venue will take its place. A venue that acts responsibly and pays its taxes as I do.
I’m very sorry to hear about this. Agreed that our current economic climate makes it difficult for the arts to thrive, but the struggle is part of what makes the art so beautiful. I traveled from Cleveland every other month to hear this band and dance with friends. They really are a treasure – not many cities have this to boast about. Happy to make the trip back & continue my support if/when Firefly can reopen.