10-31-2011 City Signs Agreement To Purchase Adult Businesses

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City Signs Agreement To Purchase Adult BusinessesPage 1of 2 st "Building a 21 Century City " Stephen J. Luecke, Mayor RELEASE FROM:FOR RELEASE: Office of the Mayor October 31, 2005 City Signs Agreement To Purchase Adult Businesses South Bend Mayor Steve Luecke announced today that the City has signed an agreement to purchase two adult businesses and a related bar from John and Patricia Colley. The properties are the Glo Worm Lounge and Quarterback Lounge, in the 700 block of South Michigan Street, and the Teaser’s Show Bar in the 100 block of West South Street. Closing of the transaction took place this afternoon. The South Bend Public Transportation Corporation (TRANSPO) partnered with the City in this transaction. Transpo paid $158,750 for the South Street property, which will be cleared to provide parking for businesses at South Street Station. The City paid $241,250 for the Michigan Street businesses. City Attorney Chuck Leone stated that the transaction included purchase of the land, buildings, and businesses including the business names and a portion of the personal property located in the business. The alcoholic beverage permits are not included in the sale, but through the agreement the City will prohibit any transfer of those permits to other adult businesses. The agreement also prohibits the Colleys from participating in adult business within 100 miles of the City for a period of five years. The Sellers will surrender their adult business licenses to the City as part of the transaction. These properties will lose their grandfather status and will no longer be eligible sites for operating adult businesses. As part of the sales agreement, the corporations operating the businesses will dismiss their lawsuit against the City, filed in year 2000, which challenged the validity of the City’s Adult Business Ordinance. Trial was held in that case during 2003 and the matter is currently under advisement in the St. Joseph Superior Court. As part of the settlement of the lawsuit, the City will pay a portion of the Plaintiffs’ attorney fees but will not make any additional payment to the businesses. Mayor Steve Luecke commented that “this transaction permanently removes these adult businesses from the South Gateway Corridor and will reduce the negative secondary effects on the surrounding neighborhoods.” He noted that another entity could have bought these properties and continued to operate adult businesses at the sites. The City’s action prevents that from happening. The real estate is valued at $324,000.00. “For a small premium above that amount we are able to also acquire and shut down the business operations and make sure that they will never reopen here,” said Mayor Luecke. http://www.ci.south-bend.in.us/Press/Releases_2005/103105_Agreement.htm1/13/2006