10-31-2005 City Signs Agreement to Purchase Adult Business

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1 Bultding a , M..:VAr Stow LUc kr OFFICE OF THE MAYOR MEDIA RELEASE OCTOBER 31, 2005 4:00 PM Contact: City Attorney Chuck Leone, 235-9241. 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.