Melrose Billiards, the subterranean dive bar and pool hall that survived for decades while everything above it changed, will close at the end of the month. Its ownership tells the Scene that they must be out of the space by the end of September. The space has been leased by A. Ray Hospitality, owners of M.L. Rose and The Sutler.

The nondescript joint, one of the last vestiges of the old Melrose area, has faced an uncertain future ever since the building and the land above it were bought and developed by the Parkes Company and Fulcher Investment Properties, beginning in 2012. Apartments and three restaurants went into the space above, but the pool hall, which survived 2010 flood waters that almost reached the ceiling, held on. Melrose Billiards is owned by Jim and Jerry Chandler, whose family business C&C Management also owns such Nashville stalwarts as Sportsman's Grille and Gerst Haus.

In the 47 years the Chandlers have run it, Melrose Billiards has seen the area go from blue-collar to seedy to revitalized. At various times you could find John Prine shooting snooker or Jack White playing pool, rowdy college kids playing ping-pong or regulars holding Golden Tee video golf tournaments (complete with a singing of the national anthem), all while enjoying the cheap beer. Its reputation as one of Nashville's smokiest bars is well-earned.

But the pool hall has operated without a lease for years.

"We had a verbal agreement," says Jim Chandler. "They told us that when they finished their construction and everything got installed upstairs that we’d have a long-term lease, which they never came up with. The Fulcher group said when they bought it, 'You don't have to worry. You'll be there forever.'"

The Chandlers are actively looking for a place to move Melrose Billiards and Jim Chandler says that they would prefer to be underground, like their current location, but that those spots are hard to find. "If anybody out there has a suitable location, we sure would like to talk to them," he says.

Austin Ray, who will run the new space through A. Ray Hospitality, says it's a tricky proposition. He says he was approached by the landlords, Melrose Partners LLC, a few weeks ago when they decided not to offer a long-term lease to the Chandlers.

“Any time you take on a project that’s been around for 70 years, it’s a delicate position to be in and handle this the right way,” says Ray. “I love Melrose Billiards, and this is an incredible opportunity to update without losing the character. This place is a real asset to the neighborhood.”

His plan will be to do some structural work inside the space for "eight to 12 weeks" and have the new establishment open by the end of the year.

Ray opened the original M.L. Rose location across the street before the area began booming early this decade. Like most bar owners in town, he's been going to Melrose Billiards "since high school." Ray tells the Scene he knows he will receive criticism in his position as the new owner and insists that he had no part in the decision not to renew the Chandlers' lease. He says that, despite rumors circulating on social media, he intends to keep the bar largely the same.

The Chandlers argue that Joe Parkes presence in the deal — he is both a partner in the development firm Parkes Company and also a partner with Ray in The Sutler — makes the situation less than arm's length.

"The owner of the building is partners in the restaurant, and they’re hijacking our place," says Jim Chandler. "They’re stealing our business. We’ve been here 47 years, and there’s nothing we can do about it. The worst thing is, they could have given us six months' notice and we could have found something."

The timetable for a long-term lease was accelerated by the pending sale of the property. Parkes Company and Fulcher put the mixed-use property on the market last fall. The Chandlers and one other source confirm that there is a buyer for it. Any prospective tenant would likely want to lock in a long-term lease before the sale of the property.

Jim Chandler says they never considered closing the space, not even when every single business above them closed and the Melrose Lanes bowling alley was torn down.

"We always knew we could survive until we got a chance to remodel," Chandler says. "Even now, when there's severe rain, it gets wet down there. We wanted to remodel and put some money into it, but we can’t do that without a long-term lease."