Kane says no to liquor license for potential strip club owners

Promises of six-figure tax income and a classier business didn't convince Kane County Board members Tuesday to approve a liquor license for the potential new owners of a strip club.

The board voted 17 to 6 in denying Debra Diaz and Michael J. Peter a liquor license for the establishment for Blackjacks Gentlemen's Club. The pair estimated their upgraded version of the club, on Route 25 south of Stearns Road in St. Charles Township, would create 200 new jobs and $100,000 a year in new tax money to the county. They also promised to beef up security, renovate the property and pare back the nudity.

But most of the "no" votes followed the opinion of county board member John Hoscheit, who represents the area the club operates in.

Hoscheit said much of the new tax money would come from video gambling, taking away from gambling proceeds coming from the Grand Victoria Riverboat in Elgin. To him, the new owners represented an unknown problem.

"To me, the question for us is really one of discretion," Hoscheit said. "If we're looking for economic development, and that was our only goal, we would talk about proliferation of gentlemen's clubs in every district."

Hoscheit was on the county board two years ago when Diaz first tried to buy the club and was denied a liquor license by one vote.

"In the last two years I have not received any calls or complaints about the operation that's going on out there," he said.

But Joe Haimann, one of the six "yes" votes, pointed out the decision two years ago came with hopes of the club shuttering when the owners, Dominic and Anthony Buttitta, went to prison following tax evasion and illegal gambling convictions.

"It's been two years," Haimann said. "They are still there."

Indeed, Diaz and Peter said the Buttittas have no intention of simply closing the club. They operated the club from prison with a net profit of $1 million a year, Diaz and Peter said. Despite that profit, the county has collected only about $30 in annual taxes from the club.

Haimann said netting $100,000, while getting rid of convicted felons, would be a better deal for the county. The granting of a liquor license would also require dancers at the club to be at least 21, limit performances to topless nudity and set limits on operating hours. Currently, the club can employ dancers as young as 18, have full nude performances and remain open 24 hours.

"I have a problem with 18 year olds going in there and being totally nude," Haimann said. "That's high school kids."

The argument didn't sway the majority of the board, which seemed to vote mainly based on what their own constituents would want.

"At the risk of being simplistic, what would you do if this was in your district?" asked county board member John Martin. "The constituents in my district would not want this."

Following the vote, Diaz and Peter said they will ask for a second hearing before board and/or liquor commission. If that fails, they said, they are prepared to go to court. Diaz just completed a nine year legal battle with Bedford Park regarding the opening of an adult club with a liquor license. The village spent more than $400,000 on the fight and lost.

"This young lady has been a liquor licensee in the state of Illinois for some 30 years," Peter said. "She is 100 percent qualified. I don't know that they can Constitutionally deny her a liquor license at a legal establishment. It's a legally zoned adult establishment. It meets all the requirements of a liquor license and then some. And, it had a liquor license for many years."

Diaz said if she doesn't get a liquor license then the county shouldn't be able to grant new liquor licenses to anyone else.

"You can't single us out because of our use," Diaz said. "It's unconstitutional."