Highlands businesses say 'the bigger fight' is racial discrimination as liquor license disputes continue

LOUISVILLE, Ky. (WDRB) — The owner of a Highlands bar that has sat empty for nearly two years says another Bardstown Road business is now facing similar treatment he believes unfairly cost him his liquor license.

The comments from Baxter's 942 owner Kevin Strnatka come weeks after Louisville Metro ABC suspended Atomic's liquor license following a weekend shooting near the bar last month. While both businesses deny responsibility for the violence, both have also accused Louisville officials of racial discrimination.

Baxter's 942 has been closed since October 2024 after Louisville Metro ABC denied its liquor license renewal request Monday.

Metro ABC cited "multiple violent incidents in the immediate vicinity of the establishment" in 2024, including two shootings that resulted in deaths, along with "higher-than-average police calls for service compared to similar businesses," "documented public safety concerns and neighborhood impact," and "community input reflecting fear, disruption, and declining quality of life."

At the time, Metro ABC Director Brad Silveria said the decision was based on recent violence and complaints from neighboring businesses and residents.

Strnatka has consistently argued his business was wrongly blamed for violence that happened outside his bar. At the time of the initial denial, he called it "insulting."

He maintained that sentiment after it was upheld this week.

"The shootings basically were down the block," Strnatka said. "I cannot help what's going on down the street."

He said Baxter's regularly hired two or sometimes three off-duty Louisville Metro Police officers to provide security.

"How can a bar be responsible for policing a whole neighborhood?" Strnatka said.

Baxter's 942 Statement — Baxter's 942 statement July 6, 2026.

The case has gone back and forth through the appeals process over the past two years.

In April 2025, a hearing officer with the Kentucky Public Protection Cabinet ruled in favor of Baxter's 942, finding Silveria "abused his discretion when he erroneously, unreasonably, and arbitrarily denied" the bar's liquor license renewal.

However, the Kentucky ABC Board later issued a Partial Final Order, agreeing Metro ABC could consider "public safety and community feedback" during the renewal process but sending the case back because the wrong legal standard had been applied during the hearing.

The board ultimately upheld Metro ABC's decision this month, issuing a Final Order denying the renewal.

Metro ABC said Baxter's may appeal the decision in Jefferson Circuit Court within 30 days.

'The bigger fight is racial discrimination'

Strnatka said the bar will continue to fight for its liquor license but that "the bigger fight is racial discrimination."

"The neighborhood by its actions has made it perfectly clear to me it won't tolerate people of color," Strnatka said in a statement. "...The city should not treat bars that have diverse crowds any different than the politically connected bars in The Highlands."

Strnatka said he sees similarities between his case and Metro ABC's recent suspension of Atomic's liquor license.

Metro ABC suspended Atomic's license June 23 after an early morning shooting near the business in late June.

According to the Emergency Suspension Order, the agency determined "two patrons were in an altercation" that began inside the bar before escalating into "a shooting incident in a public space."

Silveria said ABC also relied on an earlier enforcement action involving "multiple fights, overcrowding concerns, and violations related to disorderly premises and public safety."

"If you are going to operate, especially in that corridor, safety cannot be at a minimal level, and we won't tolerate anything less," Silveria said after announcing the suspension.

Atomic has repeatedly disputed Metro ABC's version of events.

"The fights that are occurring throughout the neighborhood do not involve our customers," co-owner Dustin Henley before the suspension.

After the suspension, Hensley released a lengthy statement saying Atomic has invested heavily in security over the years. He argued closing bars will not solve the underlying problem because many of the people involved in late-night violence are not customers.

"These are being caused by people that are simply coming into the neighborhood to walk the sidewalks and cruise the streets," he said.

Hensley also accused the city of discrimination, claiming an unnamed high-ranking city official once told him he should "open a bar in the West End to get the Black people out of the Highlands."

"This very much seems like an effort to push an entire race out of the bar district by removing places for them to go lawfully, rather than holding the individual bad actors accountable for their own actions," Hensley said. "The Highlands is being racist."

Another nearby business, Highlands Taproom, released statement in support of Atomic, calling the suspension "harsh and unfounded."

The business believes Mayor Craig Greenberg was was looking for a "scapegoat" and alleges they had faced pressure to change its music to attract a different clientele — "white."

In response to the allegations of racism and discrimination, a spokesperson for Greenberg referred to a statement from Louisville Metro ABC on the matter:

Pull Quote

"Louisville Metro Alcoholic Beverage Control evaluates every enforcement case on its own facts and circumstances. Decisions are based on the evidence gathered during an investigation, the actions of the licensee, the requirements of state and local law, and previous violations by the licensee.

Emergency Suspension Orders are one of many tools available to ABC to protect public safety, but they are reserved for situations where the facts and the totality of circumstances, including past violations by the licensee, support immediate action. The issuance of an ESO is not automatic simply because an incident occurs at or near a licensed establishment.

For example, on June 14, 2026, ABC reviewed an incident involving a reported brawl at Highlands Tap Room after becoming aware of video circulating on social media. Investigators conducted an Emergency Suspension Order review and determined, based on the information available, that the establishment had taken appropriate steps to address the situation and maintain order. As a result, no violations were issued and no ESO was pursued at that time.

That review demonstrates the approach ABC takes in every case. Our responsibility is to conduct a thorough review of the facts and determine whether a licensee has met its obligation to maintain an orderly premises.

When ABC issues an ESO, it does so because the evidence supports that action. When the evidence shows a licensee acted appropriately and complied with its obligations, no enforcement action is taken. Our goal in every case is the same: protecting public safety while applying the law fairly and consistently to all license holders."

At the time of Atomic's suspension, Greenberg also said the city "will not tolerate conditions at any establishment that threaten the safety of our community."

Baxter's 942 plans to appeal the state's decision on its liquor license in Jefferson Circuit Court, while Atomic's suspension remains in place as the case moves through Metro ABC's administrative process.

Making the Highlands 'moist'

Residents in three precincts in the neighborhood have filed notices seeking what's known as a "moist" election, while residents in five additional precincts have inquired about joining the effort. If approved by voters, businesses in the affected precincts would be required to generate at least 70% of their revenue from food sales to serve alcohol.

Supporters of the proposal believe it will help address the late-night violence. The Louisville Hospitality Association, however, has called the measure "ill-advised," warning it could negatively affect as many as 27 businesses along the Bardstown Road corridor.

Another Highlands landmark joined the opposition Tuesday.

In a statement, Jack Fry's said the initiative would "fundamentally change" how many long-standing restaurants, bars and small businesses are allowed to operate and could threaten their ability to stay open.

"We believe our neighborhood deserves solutions that address crime directly while preserving the small businesses and historic institutions that have made Bardstown Road a place people want to visit, celebrate and call home," the restaurant said.

Before the measure can appear on the Nov. 3 ballot, organizers must collect enough valid signatures from registered voters in each affected precinct.