COLLEGE PARK, Ga. -- Some College Park residents may not know it, but some of their taxes went to fund the opening of a high-end smoked meat and seafood restaurant on Virginia Avenue called Michon’s.

Documents obtained by CBS Atlanta News show a number of liquor violations for the restaurant owners at their previous location in Hapeville. One of the violations is for serving alcohol to a minor; the other is for failure to report beverage taxes. Other documents, which include e-mails, show the business currently owes nearly $18,000 to a contractor for interior construction work.

“What you are seeing looks worse than it is,” said Natalie Michon, owner of Michon’s. She says everything in the documents can be explained. She told CBS Atlanta News the money owed to Rekast LLC was due to "The company making a mistake and shorting themselves 20 percent of the construction costs." She added, “We decided to pay it back to them over the next year," even though she said it wasn't their mistake.

As for the liquor violations, Michon said one was during an underage alcohol sting where other liquor establishments in the area were also cited. As for why documents show she failed to report beverage sales tax, she said it “was during her pregnancy and she accidentally overlooked it,” Michon said. Michon admits to filing for bankruptcy as well. But she said, “The only reason that happened was because a contractor stole close to $250,000 of their money, forcing them to close up shop at Michon’s Loft in Hapeville,” Michon said.

Some concerned residents do not agree with the loan. “There were bankruptcies and liquor violations in Hapeville, and apparently they just left owing everybody some money. I understand they are very nice people, but $130,000 of College Park money in a situation like this it seems like a very risky loan,” Alan Gravitt said.

Gravitt told CBS Atlanta News he doesn’t like what he is seeing on paper. “The liquor violations, money owed and bankruptcy are too much to risk taxpayer dollars,” Gravitt said.

The mayor of College Park, Jack Longino, declined on Friday to answer tough questions about Michon's. But, Longino did promise CBS Atlanta News he will talk if reporters schedule an interview with him next week.

Michon would not talk on camera because she said the whole situation and accusations are too emotional to discuss. She said her business is her life and that she is not doing anything under-handed. “I applied for the revolving loan because I was smart enough to know it was there and get it,” Michon said. “We have been through credit checks and been operating as a business for 20 years; closing our store in Hapeville was a hiccup and because of a poor economy.”

At this point there is nothing to indicate the city of College Park did anything illegally. A city councilor said the revolving loan that was granted to the restaurant is a common tool used to get businesses into College Park. Interestingly enough, the loan has not been used, according to the Business and Industrial Authority in the city of College Park, for at least six years.

Here is a statement regarding the loan from College Park City Manager William E. Johnson III:

“We used a business tool that was available to communities throughout the country, and went through the appropriate channels, the Mayor and Council of the City of College Park. We simply sought to help an existing business relocate to our city. Currently, we’re seeking a new administrator for the revolving loan fund and are actively utilizing our Business and Industrial Development Authority to recruit and retain business in College Park.”