Ingalls Harbor beverage deal renewed in split council vote - WAFF-TV: News, Weather and Sports for Huntsville, AL

Ingalls Harbor beverage deal renewed in split council vote

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Decatur has made no money off the deal with Pavillion Beverage in the agreement's two-year history. Decatur has made no money off the deal with Pavillion Beverage in the agreement's two-year history.
DECATUR, AL (WAFF) -

The Decatur City Council renewed an exclusive contract with a beverage business – a deal that was the subject of scrutiny by area business owners.

The council voted to renew its deal with Pavillion Beverage Services LLC, despite outcry from competitors that the deal should be opened up to bidding. The deal is for alcohol sales at Ingalls Harbor, which groups rent for private parties.

An initial deal between the city and the beverage company was struck in 2012, with the city hoping to make money on the deal. However, outside of sales tax, the city has not made a penny.

The deal is renewed on an annual basis. The contract dictates that Pavillion gives the city 15 percent of sales after the business makes an initial $48,000 net profit. But in the two years of the deal, that has not happened.

During the first year of the deal, Pavillion made around $20,000 off alcohol sales. They made about the same amount of money in the second year.

The new deal will expire at this time next year, and some council members want to restructure the numbers and open it up for bids from other businesses.

The council's decision to renew was not unanimous, at a 3-2 vote. Council members Billy Jackson and Chuck Ard voted against.

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