The Chattanooga Beer Board voted on November 20, 2025, to authorize a police investigation of Shady's Corner following sustained neighborhood complaints and allegations of disorderly activity. Board members instructed Sergeant Carl Cowan to review historical calls and evidence and to pursue citations if the investigation finds violations of the beer code.

The board's amended motion directed staff to investigate allegations of overserving intoxicated patrons and operation of a disorderly business, and to include historical police calls and testimony from concerned community members. Sergeant Carl Cowan told the board he could “pull all the active calls from September 3” and bring evidence that might support an operating‑disorderly‑business citation.

Residents and board members described frequent late‑night noise, parking overflow into residential streets and an accumulation of police calls. One board member reported the community had recorded “over 500 police calls” related to the location in 2025; another attendee and board members said criminal charges had been filed against individuals believed to have been selling drugs on the premises, which the board may use as evidence in a licensing action.

Members discussed limits on the beer board's authority and the legal standard required to revoke or suspend a permit. Legal staff cited the beer‑code provision addressing “allow[ing] their establishment to be operated in a disorderly manner” and noted such enforcement requires establishing the licensee's knowledge or permission of the conduct. Board members asked that the investigation compile citation history, capacity and overserving information, and any police reports or evidence before any action is pursued.

The motion as amended was adopted by roll call: Christie (yes), Brooke (yes), Veronica (yes), Ron (yes), JW (yes), Reginald (yes), Betsy (yes), Zach (yes) and the chair (yes). The board directed Sergeant Cowan to return with findings and potential citations for consideration at a future meeting. The investigation is ongoing and the board did not immediately revoke or suspend any license at the session.