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

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-more- 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. Though such transactions are unusual, the Mayor said that the City has used acquisition successfully in the past to shut down problem properties such as Bull's Eye Liquor on Lincolnway West and Benchwarmer's Lounge in downtown. "This transaction is a win for South Gateway and for the residents of this community who are working to reduce the negative secondary effects of adult businesses." -30-