Strip club owner sues Kane County for $16 million, says rights violated
The would-be new owner of Blackjacks Gentlemen's Club in St. Charles Township is suing Kane County for $16 million after the county board's refusal to grant her a liquor license.
The lawsuit, filed Thursday, accuses the county board of violating Debra Diaz's constitutional rights. Diaz has a First Amendment right to operate an adult business, according to the lawsuit, and there are no county or state laws allowing the board to deny Diaz a license to operate an existing business.
The lawsuit also accuses the board of showing prejudice in its decision because Diaz is a female business owner.
County board member John Hoscheit, whose district encompasses the strip club, and county board Chairman Chris Lauzen did not respond to requests for comment.
Calling the license denial "arbitrary, capricious and irrational," Diaz seeks compensation for every day of lost income at the business and the granting of a liquor license. The estimated $16 million total dates back to the county board's original liquor license denial in April 2013.
At that time, Diaz failed to receive a license by one vote.
In a second try last month, the board rejected her application with a 17 to 6 vote.
Diaz told the board she would upgrade the club, on Route 25 south of Stearns Road, if for no other reason that the current owners, Dominic and Anthony Buttitta, are felons. The pair recently completed prison sentences for tax evasion and illegal gambling convictions.
They continued to operate the adult club from behind bars at a net profit of $1 million a year, according to Diaz. However, the county generates only about $30 in annual sales tax from the club because there are no liquor sales. Diaz estimated the county would reap at least $100,000 a year in sales taxes if she received a liquor license.
The lack of a liquor license also allows fully nude dancers as young as 18 and a 24-hour operation. Granting Diaz a liquor license would limit operating hours, restrict performances to topless nudity and require dancers to be at least 21.
The county may be facing a tough and costly legal battle. 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. Diaz won.