The bartender who kicked the woman out of the bar started working at the location two weeks ago.
She did not want to speak on camera but says because of their location they often kick out drug dealers and prostitutes, this time she says she had a bad call in judgement.
>>News Conference Video: Trans Woman Briana Sandy allegedly discriminated against at Tempe Tavern
"I'm a business man; I don't care if you're black, white, green, gay, it's all green to me. Money is money, and any businessman will tell you that," said Tempe Tavern Manager Robert Tasso.
Tasso is the manager of the bar that Briana Sandy, a transgender woman, was kicked out of on Saturday while trying to order a drink. She and civil rights activist Rev. Jarrett Maupin held a press conference about the incident.
"We won't allow drug dealing in here, and we won't allow people who are known to be dealing in prostitution. Was this person doing that? Apparently not, but it's a mistake in judgement that was made by our bartender and this person was asked to leave," said Tasso.
But it was how Sandy was asked to leave is what Tasso says is being twisted.
"This person claimed that my 20-year-old Mormon bartender said 'we don't serve your kind here' and there are a handful of people who were at the bar when this incident happened, who are more than willing to tell the story that that's not what was said. It's unfortunate because that's the statement that is driving a lot of the hate that is going out there on Facebook," said Tasso.
Tasso said the bartender said this instead.
"She goes I'm sorry, but I can't serve you, I'm going to have to ask you to leave, and just repeated that statement," he said.
Sandy says it's still discrimination and not true.
"I've been consistent with everything I said, and I stand by what I said 100%," said Briana Sandy.
Tasso says Sandy is welcome at the bar at anytime and apologized for the misunderstanding. Benjamin Taylor, Sandy's attorney, says there is a strong possibility they will file a complaint related to the incident.
The City of Tempe does have an anti-discrimination ordinance.