City knew Logan Heights hookah lounge sold alcohol illegally for years
Jan 21, 2025
The Secret Yard hookah bar in Logan Heights was an open secret.
The San Diego City Attorney’s Office said that, over a three-year span, the business hosted DJ dance parties illegally well past 2 in the morning, sold booze without a liquor license and drained police resources.
Those accusations, along with a long list of fire, electrical and building safety-code violations, are laid out in a civil lawsuit filed by the city in late December against the business and property owners. Some downtown area business owners and law enforcement officials told NBC 7 Investigates they don’t understand why it took years for action to be taken against the business.
Police called out hundreds of times due to loud early morning parties and criminal incidents
This map shows the location of the Secret Yard hookah lounge.
In 2021, the Secret Yard and its owners were granted a business tax certificate by the city of San Diego and a state license to sell beer and wine. Records revealed it didn’t take long for complaints and calls to police to come rolling in.
Over a three-year span starting in October 2021, SDPD was called out to the Secret Yard at least 225 times. Many of these complaints were from neighbors frustrated by the loud music blasting until about 5 a.m.
The business’s license only allowed it to serve alcohol inside until midnight and in the patio area until 10 p.m. The license also didn’t allow a DJ or a dance floor. The city’s lawsuit said the business served liquor despite only being licensed to serve beer and wine, and noted that ABC agents had observed DJs and dancing.
The civil lawsuit said loud drunkenness spilled out into the community after closing, which often turned into fights, stabbings and shootings.
One of those violent encounters happened in January 2023. The attempted murder of a customer was well-documented during the criminal trial that followed. A Secret Yard bouncer and his family member were convicted in that shooting.
Surveillance video presented in court shows a fight breaking out inside the Secret Yard’s patio area just before 4 a.m. After it was broken up, customers left the bar. A neighboring business’ camera captured the moments a hooded man shot another man in the head. That victim miraculously survived, thanks to the quick response of police.
The victim hired Kane Handel to represent him in a lawsuit against the Secret Yard, a case he eventually dropped.
“I’ve had many cases over the years, over the last 38 years, all kinds of cases, but this one I think is one of the craziest cases I’ve had,” Handel told NBC 7. “People don’t go out for a drink expecting to get shot or stabbed. Nobody wants that.”
The city’s complaint also tied hookah lounge customers to a murder in 2022, along with beatings, assaults with deadly weapons, ghost-gun seizures, drug deals and a hit-and-run.
The city’s lawsuit claims that the Secret Yard hogged police resources, limiting the department’s ability to protect other areas. Over three years, the city said officers expended more than 800 hours of out-of-service time. On top of that, SDPD created a special detail that was assigned to the business. Uniformed officers were posted there with the hope their presence would discourage law breaking.
Safety violations noted
The city’s lawsuit said a lengthy list of safety code violations also put the Secret Yard’s customers in danger. In early 2023, inspectors with the city’s Building & Land Use Enforcement (BLUE) said they found unpermitted electrical work, unpermitted mechanical work and even major unpermitted building modifications. That includes an entire 50-foot by 50-foot structure built over the back patio area.
An aerial photo of the Secret Yard in January of 2025 shows the rear section of property (in red), which the city says was built without a permit.
Despite noting these violations on repeated visits, the city’s lawsuit said, the Secret Yard did nothing to bring issues up to code. After corrections weren’t made, BLUE forwarded the case to the city attorney’s office in February 2023.
Inspectors with the San Diego Fire-Rescue Department said they also found issues last May. They said the business was breaking occupancy laws, allowing in too many people. They said that was a dangerous situation because exit doors weren’t wide enough, didn’t swing in the correct direction and didn’t have the required hardware that helps people escape during an emergency.
The lawsuit said the Secret Yard also ignored those fire hazards.
Alcohol license revoked
The California Department of Alcoholic Beverage Control began investigating the Secret Yard in April 2022 after it received complaints it served alcohol after hours and created problems. It also accused the business of selling hard liquor, which it was never licensed to do.
NBC 7 Investigates obtained documents from the state ABC, which showed that agents visited the Secret Yard in early 2023. During the first visit, they said, they found bottles of tequila, rum, Irish cream and a variety of mixers like juices, sodas, Red Bull and margarita mix. Agents said menus also advertised mixed drinks for sale and said the bar was stocked with shakers and shot glasses. They said the owner denied that hard liquor was served to customers.
Undercover agents with the California Department of Alcoholic Beverage Control took photos of hard liquor being served in 2023, which its license did not permit.
Documents show agents went back a few months later, but this time, they were undercover. They said they ordered several shots of tequila at two different bars after 2:30 a.m. Agents also reported that a DJ played loud music and that people danced, which the business didn’t have ABC approval to do.
The ABC filed an accusation against the Secret Yard in August of 2023 and revoked its ABC license that November.
The party continues
Despite losing the ability to legally serve beer and wine, the city’s lawsuit said problems at the Secret Yard persisted. It cites dozens of police callouts over the next year, which included public drunkenness, a drug overdose, a stabbing and a shooting.
After seeing social media posts advertising “after” parties, NBC 7 Investigates visited the hookah lounge to see for ourselves. Early on a Friday morning, we paid the cover charge, were patted down for weapons and went inside.
At around two in the morning, we saw a DJ blasting loud music, customers dancing and a busy bar selling hard-liquor drinks. Our team was able to purchase shots and mixed drinks. As time went on, a steady line of customers formed outside, and even more people packed in.
Out of the hands of state regulators
Melissa Ryan heads up the San Diego office of the Department of Alcoholic Beverage Control. She said it only grants and regulates existing liquor licenses.
“The most we can do is revoke the license,” Ryan told NBC 7.
Once agents take away a liquor license, Ryan said, it’s up to individual municipalities like the city of San Diego to make sure a business isn’t breaking the law. Though, she said, in her experience it’s rare for businesses to operate illegally without a license.
“That shows that nobody is paying attention to people who are violating the law,” Ryan said. “And that’s not a good message that anybody wants to send.”
At the time of NBC 7’s interview with Ryan last November, the city’s lawsuit showed the city attorney was aware that the Secret Yard served alcohol without a license for nearly a year.
“I completely understand the community,” Ryan told us. “And the business owners. And that is frustrating. We just have to work within the jurisdictions that we have.”
Secret Yard owner Eser Horuz wouldn’t talk to NBC 7 on camera, but over the phone, he said they know what they did, and admitted the Secret Yard made mistakes and disturbed neighbors. He also claimed the hookah lounge often worked to help police. NBC 7 checked with SDPD, however, and they said the hookah-lounge owner was the opposite of cooperative. His business partner Tolga Limon declined to talk to NBC 7 entirely.
NBC 7 Investigates also reached out to the property owner Kurt Krasne. He and his company, Krasne Family Properties LLC, are also named in the city’s lawsuit. We emailed him, connected with staff members at his other business and left a voicemail message. Our efforts to reach him for comment weren’t returned.
Questions for the city attorney
Before the city filed its complaint against the hookah lounge, NBC 7 Investigates heard from frustrated business owners who wanted to know why the city hadn’t taken action against the Secret Yard. They complained to us that it wasn’t fair that the hookah lounge was apparently flouting the law without repercussions. They said they lost money and customers to the Secret Yard by simply operating legally.
NBC 7 spoke with representatives for the city attorney’s office multiple times and asked for an on-camera interview to explain its timeline, but officials refused, citing the pending legal action. Instead, they provided a statement from newly elected City Attorney Heather Ferbert that didn’t explain why it took years.
“On behalf of the People of the State of California, my office brought forward a civil law-enforcement action against the Secret Yard business operators and property owners, alleging violations of California’s Unfair Competition Law and for maintaining a public nuisance. The Secret Yard’s refusal to comply with safety regulations around alcohol, tobacco and hours of operation has invited criminal activity to the area. My office’s Nuisance Abatement Unit worked collaboratively with the San Diego Police Department, the City’s Building and Land Use Enforcement Division (BLUE), the San Diego Fire Department and the California Department of Alcoholic Beverage Control on multiple investigations. After repeated notices of violation failed to compel this business to act within the requirements of the law, my office filed this complaint to protect public safety.”
“I’m proud of the work of my office’s Nuisance Abatement Unit, which worked closely with law enforcement in an extensive and in-depth investigation, and took on this case to stop the public-nuisance activity. My office stands ready to pursue injunctive relief, civil penalties and recover the costs of investigation and prosecution to permanently abate this public nuisance and bring relief to the community.”
A spokesperson for the city attorney told us they’d be willing to do an on-camera interview after the litigation is resolved. NBC 7 Investigates looked through several other cases from the Nuisance Abatement Unit and found that judgments against properties can often take years to finalize. Other cases carry on for years after that if businesses agree to comply by certain terms determined in court, along with being monitored for compliance.
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The goal of the lawsuit
The city attorney’s lawsuit asks a judge to fine the owners thousands of dollars for those safety violations and cover the costs of the prosecution and investigation. That could include years worth of police response.
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