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The XBIZ Weekly Retail Round-Up

Retail News for the Week of Aug. 25-29
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Saturday, Aug 30, 2008    Text size: 
COLORADO

Proposed Porn Store to Become Community Center

ALLENSPARK, Colo. — Jeff and Vicky Mead, who had been planning to open a porn store in a two-story log cabin they own in tow, have said that they will instead sell the $428,000 building to a nonprofit group that wants to convert it to a community center.

"It seemed to us we're better off focusing our energy on our other businesses," Mead said of the sale.

The Meads had previously said they had no choice but to open a porn shop after a protracted fight over their ATV-rental business based at the cabin ended in April with the county shutting down the operation.

The couple plans instead to open a new business converting gasoline vehicles to run on natural gas. The company will be based at their ATV rental company in nearby Lyons.

For more information, click here.

Strip Club Appeals Permit Denial

GRAND JUNCTION, Colo. — The businessman whose bid to open a strip club was denied by the city Planning Commission has filed an appeal, arguing members of the board let personal morals rather than municipal codes guide their decision.

Rob Rowlands, an architect with Design Specialists and representative for would-be owner Kevin Eardley, filed the appeal with city planners Thursday. The matter will go before the city council.

In a 4-3 decision, the Planning Commission on Aug. 12 rejected a conditional-use permit that would have allowed Eardley to build and open a strip club at 2258 Colex Dr. Some commissioners contended the business would be incompatible with the neighborhood — but broadened the definition of a “neighborhood” to the entire city.

Rowlands said the Planning Commission should have judged the conditional-use permit application based on whether a bar or nightclub in that area of the city meets the city’s zoning and development code, rather than how the bar or nightclub is used. That’s because, he said, strip clubs are considered a use-by-right under the city’s standards for adult entertainment establishments.

City planners recommended approval of the conditional-use permit for the club.

City Planning Manager Lisa Cox said a hearing before the council must be set within 45 days of the filing of the appeal. Council members must then decide whether they will consider the appeal. If they do, they have to render a decision within 30 days.

For more information, click here.

CONNECTICUT

Adult Bookstore Owner’s Rights Abused, Lawyer Says

DERBY, Conn. — A lawyer representing the Love Shack Adult Emporium said city officials were aware of his client’s interest in setting up shop and put up every possible roadblock to prevent the store from opening.

The Love Shack, the only adults-only business in Derby, opened in June, but the owners had planned to open last November.

The lawyer, Daniel Silver, said that his client, Beyond Distributors LLC, which operates stores in Bridgeport and Norwalk, has already spent a lot of money on the Derby location. The shop carries DVDs, videos, magazines, novelties and lingerie.

“There is no on-site entertainment. About 50 percent (of the inventory) is clothing,” Silver said.

The store is currently operating without a city license. Police Chief Eugene Mascolo sent a letter last month denying the license because the store is located within 250 feet of a residential zone and within 1,500 feet of a private school. The letter advised the store to immediately cease operations, but Silver is appealing and the shop remains open. A hearing on the appeal will take place before the Board of Aldermen Sept. 25.

The ordinance created to regulate adult oriented businesses was put in place last year, but the change that prevents the businesses from moving too close to a residential neighborhood or school is newer, having been put into effect this spring

Silver said the store owners were never even told that they needed a license from the Police Department to open. When they were finally told, Silver said, there was yet another problem because the police had no applications.

“I had to prepare an application based on the criteria in the ordinance,” Silver said.

For more information, click here.

East Hartford Council Adopts Adult Business Restrictions

EAST HARTFORD, Conn. — The days of passing folded dollar bills to strippers in local clubs may soon end under an ordinance adopted by the town council this week. Council members say the rule is designed to regulate adult-oriented businesses closely while simultaneously respecting those businesses' constitutional right to exist. But a lawyer for a developer who wants to open an adult business here says it goes too far.

The council's unanimous decision on Tuesday followed a lengthy review of similar ordinances elsewhere. That information was vetted by the town's attorney to ensure what the council adopted complies with existing law.

The resulting ordinance could force some existing businesses to close. Regarding those who want to open businesses in town, Councilman Marc I. Weinberg said: "It's our house, our rules."

Two adult-oriented businesses now operate in East Hartford, and two more adult-oriented businesses want to open in town. The ordinance, which is expected to go into effect in mid-September, would apply immediately to any new business. Existing businesses would have until Jan. 1 to comply with its requirements.

The ordinance requires, among other things, that businesses obtain licenses, and lists a host of rules that must be met to keep that license. The names and addresses of anyone with at least a 10 percent ownership interest in the business, including people who seek anonymity by creating a limited liability company, must be provided to town officials. The ordinance also requires that managers and employees undergo criminal background checks, the business be open to random inspections by town officials, that managers and employees not perform or allow any illegal activity, the interior of adult-oriented businesses be open and visible and that no section be obscured, that no employee have a serious criminal conviction within three years, that the business maintain 24-hour video monitoring of all areas in the business and that recordings be maintained for at least 90 days and that the tapes be made available to town officials, that managers be licensed, and that patrons cannot tip performers. Any tips must be placed in a container.

Town officials enacted the ordinance to limit so-called "secondary effects" of such businesses, not to limit access to such businesses.

Kim Coleman, a lawyer representing the Masters Club LLC, said the ordinance will likely be challenged. Masters Club wants to open an adult-oriented business in town.

"They are going to create litigation for East Hartford for years to come," Coleman said. "I guess the lawyers will get rich."

Some of the ordinance's requirements are "ridiculous," Coleman said.

"I don't know how they're going to survive a challenge."

For more information, click here.

NEW YORK

City Considers Adult-Business Regulations

BATH, N.Y. — Bath town Supervisor Fred Muller has estimated the town board will draft a local law regulating the future location of any adult business in the municipality by the end of the year.

Such a law would require approval by a majority of the town board members, Muller added, and probably will require a three-month extension of the moratorium now in effect on adult businesses.

Muller said that any new law would probably have little if any impact on an adult products store that opened in 2005. The store opened prior to the existence of any local law regulating adult businesses; attempting to apply the new law to an existing business could expose the town to litigation, Muller said.

"I want to avoid potential litigation, and I'm sure there would be litigation because he's already there," Muller told reporters.

Town attorney Jeffrey Squires already has submitted samples of adult business laws passed by other municipalities for town councilmen to review.

Recommendations for regulations include: Requiring any adult business to be located at least 1,000 feet from "sensitive land uses," including schools, public parks, places of worship, cemeteries and civic centers; Adult businesses should be permitted only in "industrial zones" in the event future legislation establishes such zones; The town sign law should stipulate adult businesses may have no outdoor displays advertising the business other than a single identification sign that includes only the name of the business.

For more information, click here.

   
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