LOGAN SQUARE — A popular liquor store and event space is calling it quits after its owners say their landlord forced them out of their location to benefit a neighboring business, a claim the landlord and other business owner deny.
Your Happy Place Liquors, 2501-A N. Milwaukee Ave., is closing Dec. 8 after seven years in the neighborhood, owners David and Julia Cruz announced on social media Monday.
The Cruzes think their landlord, Michael Schwartz of SNS Realty Group, evicted their business because the owner of Phayes, 2501-B N. Milwaukee Ave., has been in “relentless pursuit” of their space, they said on Instagram.
Heidi Hayes, owner of Phayes, confirmed she had been looking for a larger space to relocate. Schwartz suggested Your Happy Place’s storefront, and both approached the Cruzes to make offers for the space over the past few months, Hayes and the landlord confirmed. The Cruzes refused the offers to relocate, they said.
But Schwartz denies that he terminated Your Happy Place’s lease to benefit Phayes. He said the business is being kicked out because the owners violated the lease by improperly selling vape products and did not comply with a warning to stop.
“It all comes down to landlord discretion. They said we are a distasteful business, so that’s why we have to move out,” David Cruz told Block Club.
What Happened?
Known for hosting art shows, wine clubs and events and collaborating with nearby businesses, Your Happy Place has been a hub for sharing artwork and getting artisan liquor. Since opening in 2016, the spot has built up strong neighborhood connections, the owner and customers said.
In the spring, David Cruz received a call from Schwartz, who asked if Your Happy Place would move into a smaller spot two doors down so Phayes could take over the liquor storefront, Cruz said. Cruz declined because the smaller spot would not work for their business, he said.
Then Hayes approached the couple around late April with an offer to pay for the Cruzes to move to the new space, which they also declined, Hayes and Cruz said.
A few weeks later, Schwartz’s realtor again asked Cruz if they would consider moving down the street and offered to pay for moving costs, Cruz said. Cruz declined, he said.
By summertime, the Cruzes began to hear rumors from customers the business was leaving so Phayes could take over. The couple still had no plans to leave, Cruz said.
Schwartz said he learned Your Happy Place was violating its lease by selling vape-related CBD products. The store’s lease states the shop cannot “sell vape-related products or accessories” but can showcase art, sell liquor, tobacco products and cigars, according to documents the landlord shared with Block Club.
Schwartz said he became aware Your Happy Place was selling the prohibited items after another vape business wanted to open a few doors down at 2497 N. Milwaukee Ave., which used to be home to vape and vitamin business Botanic Alternatives.
The business backed out of the deal once the interested owner found out Your Happy Place was selling the same vape products, Schwartz said.
Schwartz and his team notified Cruz selling the products violated the lease and asked them to remove them, since neither he nor the business has the correct insurance to sell the items, he said. Cruz didn’t comply, prompting Schwartz to send the owners a warning, Schwartz said.
“I sent him another written notice basically saying that you’ve got 20 days to get this stuff out of there or we’re going to have no choice but to basically file for eviction. But David didn’t want to take the stuff out, so as landlords, we really had no choice but to protect our interests,” Schwartz said. “We gave David numerous opportunities to take the stuff out.”
Cruz acknowledged selling the vape products. The owners and the landlord had discussed adding CBD vape products to the list of allowed items in their lease, but the two sides could not reach an agreement, he said.
Cruz said they did not receive the 20-day notice and only became aware of it through their attorneys after Schwartz moved to evict the business.
The lease also indicates selling artwork and liquor at events was not allowed, though the landlords were OK with it, Schwartz said. That provision was added into the eviction notice for legality purposes, he said.
The Cruzes and Schwartz also had disputes about the rent. Cruz said he’d been barred from paying their September rent online, while Schwartz said the couple owed some back rent from when they started the business.
Schwartz confirmed his team asked Cruz if he wanted to move to a smaller space if the attorney could find a resolution about the products for sale, but “we never even got that far because David was dismissive of the entire idea.”
With the legal disputes, trying to find an amicable solution to stay in the space, the financial burden of attorney fees and having “countless claims” thrown at their business, the couple decided it was best to close, Cruz said.
For her part, Hayes said she’d dropped the idea of moving into the Your Happy Place space after the Cruzes declined to move. Schwartz said he also dropped it after asking twice.
Hayes had looked for a bigger space for six months and found nothing, she said. She decided to stay in the Milwaukee Avenue spot for another year but plans to look for a larger spot in January, she said.
Schwartz, who used to buy from Your Happy Place, called the owners’ Instagram post “false on so many fronts” and criticized the Cruzes for blaming another small business owner for the eviction.
“If you want to attack me as a landlord for filing an eviction based on his lease violations, that’s fine, fair game,” Schwartz said. “But going for another small, woman-owned business that opened the same time as him, that serves the same neighborhood, and somehow accuse her, who has no power whatsoever, of forcing him out and relentlessly pursuing his space, to me, shows that he’s not a community-minded person and does not have the community interest first.”
The Cruzes said they felt “heartbroken, angry and betrayed” and were being “pushed out by our neighbor, who represents the very antithesis of our values.”
“I never said [Phayes’ owner] is evicting us, but we are getting pushed out for her benefit. We are not able to financially keep up,” Cruz told Block Club.
Hayes told Block Club she was disappointed the Cruzes blame her for their business challenges and criticized her for making offers for their space, especially since she always had a good relationship with the couple.
Since Your Happy Place posted the news to social media, Hayes said she’s received negative comments on her business pages and threatening messages, which has been disheartening.
Schwartz said Hayes is welcome to take over the liquor store spot if she would like it. Hayes said she has not decided if she will take up the offer.
“I’m sad to see [Your Happy Place] leave the neighborhood, to be quite honest,” Hayes said. “I felt like it would have been a winning combination to have them stay. I think we need more small businesses in Logan Square.”
‘I Appreciate The Good Times’
While the disputes leave a bitter taste, Cruz doesn’t want to be angry, he said. He wants to remember the good times at his business while making himself heard.
The couple could open in another location in the neighborhood, but for now, they would like help clearing out the shop’s inventory, Cruz said.
“I appreciate the good times, and we’ve made so many new friends and seen so many newborn babies, new doggies, and we’ve had so many experiences with the community that were beautiful, and that can’t be taken away,” Cruz said. “But we shouldn’t be expected to stay quiet when we’re bullied.”
Ethan Bierman, who lives near Your Happy Place and is a regular customer, said the news is heartbreaking, and he will miss the community aspect.
“A lot of friends that I know have met there,” Bierman said. “I know that regardless of the day that I go in there, there’s going to be a friendly face. They have an amazing, creative, vibrant community.”
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