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Thursday, August 18, 2005

Ind. Gov't. - State ABC won't renew local South Bend liquor permit

Jeff Parrott of the South Bend Tribune has this story today. Some quotes:

SOUTH BEND -- The Indiana Alcohol and Tobacco Commission has voted unanimously to deny liquor license renewal for a South Bend strip club, despite an earlier, favorable nod from local officials. * * *

The state board historically has followed local recommendations, but Heath, a former Republican Lafayette mayor and Tippecanoe County sheriff who was tapped to head the commission by Gov. Mitch Daniels, said he did not like what he saw after reading through the case file.

"Just with the history and stuff, the type of establishment it has been, that was just my feeling on it," said [Alcoholic Beverage Commission Chairman Dave Heath], noting that nothing in particular jumped out at him. "I'm sure they will appeal it."

After a lengthy remonstrance hearing July 27, the St. Joseph County Alcoholic Beverage Board voted 2-1 to give the request a favorable recommendation. Citizens for Community Values, a nonprofit anti-pornography group, and the South Gateway Association, representing South Michigan Street businesses, presented documents, news clippings and witnesses portraying the Glo Worm as a haven for drugs, prostitution and violent crime, thus constituting a public nuisance. * * *

The state board's decision could be good news for taxpayers. The city is negotiating with [Glo Worm owner Patricia] Colley to buy the Glo Worm, Teaser's and the Quarterback Lounge, a former strip bar next to the Glo Worm that now operates legally as a "sports bar," city attorney Chuck Leone confirmed Wednesday.

In September, Leone said the city had briefly considered buying the clubs but decided it would be "rather foolish to pay millions of dollars for these businesses and then two months later have another adult business open up down the street."

But Leone said Colley has since lowered her asking price.

"We've had some discussions and as a result of those discussions, it leads us to believe the dollar amounts could be in a much more reasonable range," Leone said.

The city wants to set aside $350,000 to buy and demolish the Glo Worm and Quarterback Lounge, according to a draft document detailing how the city's Community Development division would like to spend South Gateway corridor money in coming years. Leone said he is trying to find private sources of funding, such as a donation, but he declined to identify the source.

Should the Glo Worm ultimately lose its license, the purchase price would drop considerably because the city would only need to buy the real estate -- not the real estate and the business, which includes the license, Leone said.

Posted by Marcia Oddi on August 18, 2005 11:39 AM
Posted to Indiana Government