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Posted on Fri, Aug 14, 2009 : 5:52 p.m.

Firefly Club closed because of sales tax money owed to state

By Lee Higgins


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The owner of the Firefly Club, a live jazz venue in Ann Arbor, has 10 days to pay $120,000 in back sales taxes to state department of treasury officials or they will auction everything off, she said.

Treasury officials seized the property Thursday night, said spokesman Caleb Buhs. 

Susan Chastain, who has owned the club for about 10 years, made an agreement several years ago with the department to pay $2,000 a month toward sales taxes owed from 2000 to 2004, she said.

While Chastain had been making the payments in full, she fell $500 short in July and August, voiding the agreement, she said.

Now, she must pay off the $120,000 remaining balance in 10 days if she wants to reclaim the property, Chastain said.

Today is considered the first day. 

Buhs said he is barred by state and federal laws from discussing specifics about the case, but no auction date has been set. 

Meanwhile, Washtenaw County Treasurer Catherine McClary said Chastain is current on her personal property taxes levied by Ann Arbor. 

Chastain has received 180 emails today from people offering support and is considering fundraising, but knows what she's up against, she said. 

"It's a labor of love, but at some point it becomes a big drag, too," Chastain said. "But you do it because you have to do it. Because somebody has to do it."

She had hoped the return of college students this fall would boost business and she could catch up on her payments. 

"I know that we've always operated with a nostril above water and certainly the economy is not helping," she said. "It's upsetting."

The South Main Street club has several community programs, including one that allows high school and college students to play alongside professional musicians, she said.

Chastain received a phone call about 6:30 p.m. Thursday, a half-hour before the club was scheduled to open, and was told she needed to come down there.

Chastain was met by a treasury officer, two of the officer's assistants and two Ann Arbor police officers. She said she was told she had violated terms of the payment agreement.

A notice has been posted that the property is under seizure. The state is acting within its legal rights, Chastain said. 

"I feel that we were an addition to the community certainly, but times are tough and not everybody can come out and we understand that," she said. "I just hate to be another statistic."

Barbara Kramer, chair of the Board of Directors of the Ann Arbor School for the Performing Arts, said the school's jazz program holds recitals at the club and it would be a tragedy if it closed.

Her 20-year-old son, Jesse, a major in jazz performance at the University of Michigan, grew up at the club, where he was nurtured by professional musicians, she said.

"It's very homey," she said. "It's very welcoming. It's one of the few places that you could hear really good jazz without spending an enormous amount of money."

She added, "I'm hoping that somehow the club will be saved, that the community will come together."

In May, the Firefly Club held a bash to mark its ninth anniversary.

At the time, Chastain told The Ann Arbor News that the milestone was bittersweet because business was down due to the slow economy. She said she was trying everything she could to keep the doors open.

Chastain sings there three nights a week and enjoys taking people's minds off the stresses of life such as losing a job or house or having a sick child at home.

"I love making people happy and pleasing people for a little while and making them feel at home," she said. "That's what the Firefly is. It's been a good run."

The Firefly opened in 2000 at 209 S. Ashley St. in the spot formerly occupied by another jazz club, the Bird of Paradise, which had relocated to Main Street (and has since closed). The 'Fly moved to its current location, 637 S. Main St., in 2007.

AnnArbor.com Business Content Director Paula Gardner contributed to this story.

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Comments

truenorth

Mon, Nov 16, 2009 : 9:54 a.m.

Does anyone know how to reach Susan Chastain? If yes, please have her contact the Jonna Family at Vinology. I know they are thinking of adding some live Jazz Nights. Would be great for the area.

GuyOdekirk

Sun, Aug 30, 2009 : 12:59 p.m.

I hate to see this, and I really hope that the people of Ann Arbor, whom I served often while working at the club, will come out now and help. The Firefly is an Institution in Ann Arbor, and it will be a shame to see it gone.. Time to Stand Up and help your community!

Sarah

Wed, Aug 26, 2009 : 3:15 p.m.

It looks like 10 days are up - what's the update?

Matt Van Auker

Mon, Aug 17, 2009 : 4:13 p.m.

Oh, no, you're kidding me. What a disaster.

Picky

Sat, Aug 15, 2009 : 8:20 p.m.

I used to take a date there now and again, several times a year, but completely forgot about it when they moved. That stretch of Main is death on a business (Leopolds being the primary example).

Brad McNett

Sat, Aug 15, 2009 : 1:53 p.m.

The problem is EG, that this club is much more than a business/night club. It is a cultural beacon and staple of the jazz world not only in Michigan, but nationally. You seem to not understand that jazz itself is not just a form of music, but basically a lifestyle weather you're playing it or owning a club to host it. Susan, never intended to become a millionaire from the club and was not skimming money off the top for her own benefit. Susan, did what she could to help create a place for all of us jazz musicians to live our life. No one is telling you to send any money to help support the Firefly. The government has bailed out numerous industries and company's within the last year, so I see nothing wrong with a community coming together to support something that it finds essential and vital.

flygirl

Sat, Aug 15, 2009 : 1:06 p.m.

In response to your post, EG, I've NEVER said that this tax arrearage is not my fault. I was stupid as a new business owner and got behind and am totally committed to paying my debt to the state. My in-place payment arrangement was canceled when I was short on the amounts of two payments, wrong of me, I know, but made in good faith. Just didn't have it and planned on catching up the shortfall this month. So, yes, I have only myself to blame.

Stephen Lange Ranzini

Sat, Aug 15, 2009 : 11:33 a.m.

Hi, Stephen Lange Ranzini, President of Ann Arbor's hometown bank, University Bank here. If I read the story and posts correctly, $3,600 will get the club's county taxes fully paid and get the Firefly Club back on track with the state if the state agrees to go back to the payment plan originally agreed. University Bank will match $1,800 from its own funds if $1,800 of contributions are made by the community. Contributions can be made to the Joseph Ranzini Charitable Trust account at University Bank. If we get to $1,800 of donations and the state agrees to go back on the payment plan we'll release the money directly to the county and state. If not, we'll return the funds back to the people who chip in. Joseph Ranzini, now deceased, was my father. He was a lawyer, judge and entrepreneur, but he got his start in business as a professional jazz musician and among other things, was the lead accordionist for Lawrence Welk before he hit TV. If you want to donate, mail your checks to the bank as follows: University Bank, Rescue the Firefly Club, 2015 Washtenaw Avenue, Ann Arbor, MI 48104; or you can drop by to make a donation Monday or Friday 9 to 6, Tuesday to Thursday 9-5 and Saturday 10-Noon; or you can send a wire to University Bank, ABA#072413612 FFC Joseph Ranzini Charitable Trust a/c#107860 Attn: President. I agree with Brad McNett, if you want to save the Firefly Club, donate now! Hopefully then the owner can get the Firefly Club open and take some of the excellent suggestions to heart and make the Firefly Club even better going forward!

Alan Benard

Sat, Aug 15, 2009 : 10:30 a.m.

@ craig11152: It's pretty simple. One has fixed costs -- rent, insurance. And variable costs -- inventory, guarantees for performers. And revenue. If you pay your acts, pay for your booze and pay your rent and don't have enough to balance at the end of the month, then you dip into your sales tax account. Of course, when you do that you are technically insolvent.

Number6fan

Sat, Aug 15, 2009 : 9:36 a.m.

Unless there is more to this than meets the eye, "seizing" the club for shortages of $500 for two months - even if it is the State's right - seems (forgive the cliche) "penny wise and pound foolish." First of all, it seems to me, that we need even marginally successful businesses in Michigan right now. Secondly, the disadvantages of the current location and even local economy notwithstanding, the jazz, the opportunities for young jazz musicians, and the fact that it is all we have on the jazz scene here, makes it significant and worthy of efforts to appeal the Dept. of Treasury action to have a "stay" of execution. I think the community would rally as it has for the Performance Network and other cultural assets in Ann Arbor.

recordhound

Sat, Aug 15, 2009 : 9:11 a.m.

The Firefly is a beautiful spot, as it was in the old location. The problem is NOT location, and probably not the economy. The problem was entirely based on the tired, lazy booking of the club. It was basically the same half dozen acts on the same nights, week after week, year after year. Paul Keller's band is fantastic but how many times can you see them? I've had long conversations with some of the brightest and most experienced music obsessives in the area about the Firefly. It has long been a source of frustration. Susan was committed to jazz, which is admirable, but there just isn't that many quality jazz acts out there these days. Many of the artists playing the Ark, Guy Hollerins, even places like the Tap Room, could have been playing the Firefly. I would much rather see someone like Bobby Blue Bland or Big Sandy and the Firefly, with a proper drink in hand. But she just seemed to ignore a long list of touring acts who didn't really have a place to play since joints like Sully's closed. Were they ignored because they weren't pure jazz acts? Then why lame stuff like techno nights and Firefly Funnies. It never made sense to me. World class acts like Deke Dickerson are constantly trying to fill off nights between Chicago & Cleveland and often play small venues or private parties here for a couple hundred bucks. They could have been playing the Firefly club for the same money and bringing in a whole new crowd. There IS a hole in the live entertainment scene here...one that books somewhat like the Ark, only without the need to pretend you are at a library and need a membership card to get a drink. It's sad, but the Firefly made it's own failure. Lots of people were pulling for it but never had much reason to go there.

getreel

Sat, Aug 15, 2009 : 8:40 a.m.

Yet another sad, ironic story that speaks volumes about the continuing saga of poor city management. A city that "claims" to be liberal, a cultural hub, blah blah blah, yet refuses to keep rent under control, making it truly impossible for honest, hard-working, labor-of-love business owners able to keep their store, restaurant, what-have-you open for long in this town. Does city government know what "monopoly" is? Obviously not. Rent on Main between Huron and William, near where all the prime, A2 parking allegedly exists is ridiculous. Another black eye for the hypocrites that claim to be running the "City of Ann Arbor." We wish and hope The Fly" can keep their doors open! And we agree with other posts--Ann Arbor needs and deserves jazz!

David Cahill

Sat, Aug 15, 2009 : 7:01 a.m.

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".

spruce5

Sat, Aug 15, 2009 : 6:59 a.m.

Where can you send money in support?

Craig Lounsbury

Sat, Aug 15, 2009 : 6:19 a.m.

It occurs to me that sales taxes are based on sales. Further more they are generally added directly to my tab. So they should be the easiest tax to pay. A business doesn't even have PAY a sales tax do they? They merely collect it from a customer on behalf of the state. Am I missing something in that regard?

Simpsons

Sat, Aug 15, 2009 : 2:09 a.m.

As a personal friend of a few staff members, and knowing they've been hurting with their own incomes since the 2007 move, I'm sure they're wringing their hands a little less than this crowd over the death of the arts. 5-10 jobs were probably lost here, in case you forgot.

Gina Valo

Sat, Aug 15, 2009 : 12:30 a.m.

I'm dreaming of the day that Firefly joins forces with Leopold Bros. to create a Jazz Brewery with darts and board games. Sure, it'd be kind of weird, but in a good way - at least a uniquely Ann Arbor way.

aataxpayer

Fri, Aug 14, 2009 : 10:24 p.m.

Can the Firefly Club simply close and reopen as the New Firefly Club. Seriously, is there a jazz lover willing to buy to open a new business? If the new business needs to move to host venues maybe it could be called Jazz In Exile or Jazz Without a Home. In any case, thanks for the memories.

Matt Hampel

Fri, Aug 14, 2009 : 7:57 p.m.

Washtenaw County Treasurer Catherine McClary said Chastain is current on her personal property taxes levied by Ann Arbor. However, The Chronicle reports that: According to the city of Ann Arbor treasurers office, the club also owes almost $2,600 in business personal property taxes from 2007, 2008 and 2009.

wallaby

Fri, Aug 14, 2009 : 7:49 p.m.

Hmmm. Some folks are fretting awful hard about walking a little out of their way to go to a club they allegedly adore. By what standard is a half mile walk a big deal? Put your good shoes on and get mobile, people! :)

Goodfriendofjazz

Fri, Aug 14, 2009 : 6:54 p.m.

No matter how good your intentions, you can't run a business if you don't pay your taxes and other debts. The FF was fabulous and had a good run.

ypsijake

Fri, Aug 14, 2009 : 4:53 p.m.

120 k to come up within 10 days, according to the Freep. Strikes me as unfair. I hope Susan can do it.

garrypost

Fri, Aug 14, 2009 : 4:51 p.m.

Susan, Robert and I hope business will pick up soon and the State will be reasonable enough for you to work things out with them...so the music may continue to heard. Thanks for carrying the torch for jazz music in Ann Arbor!

insertcleverid

Fri, Aug 14, 2009 : 4:29 p.m.

The club is a home away from home for many of us. I'm sure most of the performers and regulars are feeling a little homeless today like me. Hoping for a miracle, or some business genius to help us generate some dough. Ahhhhhh, so strange and sudden.

flygirl

Fri, Aug 14, 2009 : 4:08 p.m.

We HAVE been current with our monthly sales tax payments. We had an arrearage from our early days for which we had worked out a payment plan with the state. Up-to-date on that payment as well, until Jun and July...only paid 1500 of 2000, planning on catching up by the end of August.

A2Writer

Fri, Aug 14, 2009 : 4:01 p.m.

Like others, I have mixed feelings. The Firefly hasn't been the same for me since it moved out of its Ashley location. (And I'll be honest, I still miss and preferred the Bird.) Yet I'm sad to see us lose another differentiator that makes our community special. Hope they can pull through this. Fundraiser info, anyone?

Picky

Fri, Aug 14, 2009 : 3:44 p.m.

Maybe the lack of a daily print newspaper in which to advertise their events had something to do with it.

Lee Higgins

Fri, Aug 14, 2009 : 2:41 p.m.

Here's a link to a Detroit Free Press article on the club http://tinyurl.com/l3aaqt

Tom Teague

Fri, Aug 14, 2009 : 2:24 p.m.

While not paying past due State sales tax is serious and needs to be addressed, it appears that the owner was doing just that to the best of her ability given a really bad business cycle. Does anyone else see the absurdity in the State's shutting the business so that the club now really can't raise the money it owes?

Brad McNett

Fri, Aug 14, 2009 : 2:19 p.m.

Perhaps if everyone who took the time to comment on this article and complain about the location of the club or to note how sad this is actually spent some time visiting the club every once in awhile this wouldn't have happened. If people continue to refuse to support the arts there are only going to die. Once they start to die everyone all of a sudden comes crawling out of the woodwork.

bckramer

Fri, Aug 14, 2009 : 2:16 p.m.

Losing the Firefly would be an unbearable blow to Ann Arbor's cultural community. It is one of the BEST jazz clubs in our area and possibly the country. My kids grew up there, and one now plays there. There are far too few venues for jazz, we cannot afford to lose this one!

The Swans

Fri, Aug 14, 2009 : 2:14 p.m.

The Firefly will be greatly missed.

Glenn Tucker

Fri, Aug 14, 2009 : 1:53 p.m.

You'd think the state already made enough money cutting $6m from arts funding earlier this year. Leave it to the government to turn its back on America's greatest art form...

81wolverine

Fri, Aug 14, 2009 : 1:13 p.m.

Whenever the state sends their treasury people to shut down a business it's almost always due to not paying their monthly sales taxes. This money is collected during the month and then must be paid by around the middle of the next month. There are other taxes that the state gets, but they're smaller in amount. Non payment of sales taxes is what gets the State to take action.

Peggy Lampman

Fri, Aug 14, 2009 : 1:13 p.m.

Oh no! I remember taking my son to the jazz education series expressly directed to teenagers-he's had a serious love for jazz since. That was when it was on Ashley--I had a business for 13 years in that South Main location-it's off the beaten track and creating a customer base was tricky. I hope there will be some sort of fund raising concert to help stave this off. Perhaps in September when folks are back??? Will that be too late???

hotsauce_gm

Fri, Aug 14, 2009 : 12:23 p.m.

Sunday nights at the firefly used to be fun...

Jessica

Fri, Aug 14, 2009 : 11:45 a.m.

Treasury doesn't usually seize property unless there is an outstanding tax bill, right? Down economy or not, you've gotta pay your taxes!

pfunkyfize

Fri, Aug 14, 2009 : 11:35 a.m.

Aww man! I loved playing at the Firefly. It's been a special place to play (in all its incarnations) for me ever since I was a music major in college. I hope jazz finds a place in A2 soon...

anonamoose

Fri, Aug 14, 2009 : 11:32 a.m.

Wow, what a bummer. They had some wonderful acts.

Dylan

Fri, Aug 14, 2009 : 11:27 a.m.

Agreed with sottovoce, location was horrible, unless you were eating at Happy's :-P But this is unfortunate, Ann Arbor's music scene is a vital part of its identity. Let's get some more details and find out what (if anything) can be done.

DLRomero2

Fri, Aug 14, 2009 : 11:23 a.m.

My husband and I had our first date at Firefly! Sad to hear it's gone. Martinis and Jazz tonight in memory!

sottovoce

Fri, Aug 14, 2009 : 11:17 a.m.

The first problem is location. Who is going to walk from a dinner downtown past packard, past Madison to hear jazz? I hope it comes back, but I doubt it.

Theresa Taylor

Fri, Aug 14, 2009 : 11:14 a.m.

BUMMER!

Kyle Mulka

Fri, Aug 14, 2009 : 11:14 a.m.

And yes, this is unfortunate. Did they not pay their taxes? Does anyone know the reasons why the department of treasury would do this? That's the only thing I can think of... not paying taxes.