The Chattanooga City Beer Board on a recorded vote sustained an administrative finding that Cabanas Nightclub and Events Center operated without a valid beer permit and increased the civil penalty to $1,000.

The action came after the board read an administrative hearing officer's decision that recommended a $500 civil penalty for violating Chattanooga beer code section 5.49 when the venue's beer permit expired on Dec. 31, 2024 and the business continued to offer beer at events later in 2025. Chair (name not stated) opened the matter for the representative of Cabanas to respond and for board discussion.

Jesus Serrano, who identified himself as the Cabanas representative, told the board the venue closed in early March 2025 to install a sprinkler system and reopened in August 2025. Serrano said he believed the closure and a technical issue with online renewal prevented timely renewal: "I just don't want y'all to think that I was selling beer the whole time without a permit," he said, and described attempts to get paperwork completed after reopening.

Board members questioned the timeline, noting the license's December 2024 expiration, events occurring from December into March 2025 and again after reopening in August 2025, and the November 8, 2025 citation. A motion to reject ("not to affirm") the hearing officer's $500 recommendation failed for lack of the five votes required. The board then voted on a follow-up motion to impose the maximum permitted penalty. Speaker 8 moved to impose the $1,000 fine; Christie seconded. On roll call, five members voted yes (Betsy; JW; Veronica; Christie; and the chair) and one member voted no (Zach), resulting in the adjusted fine and a board finding that the violation was sustained.

City staff said they would prepare and email the formal order to the business and clarified the administrative timetable: the business has seven days to pay the fine. The board also instructed Cabanas to "get the ownership situation squared away immediately," noting discrepancies between sworn statements and city paperwork.

The board's action sustains the underlying violation (operating without a valid beer permit) and increases the civil penalty above the hearing officer's recommendation. According to staff, the written order will specify payment and compliance deadlines and will be provided to the business by email.