Local: Elliott’s liquor license case going to a federal mediator

I hear that the City of Peoria and the owners of Elliott’s gentleman’s club on North University are taking their liquor license dispute to a federal mediator. The case is scheduled to be heard on May 8. My source says that the decision may be made in time for the May 15 Peoria City Council meeting, when the council is already scheduled to vote on a Class A liquor license for Elliott’s.

The result of the hearing/council vote could be Class B license for Elliott’s plus a cash settlement of some sort.

I contacted Fred Jackson, one of Elliott’s owners and the guy who runs the place, and he declined to comment on the record. He did forward me a redacted form of a letter sent to members of the Peoria City Council, the contents of which he says might have led the council to be more amenable to mediation. In the letter, he spells out the history of how Elliott’s came into being, and describes how it is in the city’s best interests to approve a liquor license.

The letter states that Elliott’s could be sold to others who have a history running non-alcoholic clubs in a way that nearby residents would even more objectionable. The letter states that new owners likely would put flashing neon signs on the building announcing all-nude dancing.

One of their strip clubs is houses in a building that is shaped like to gigantic pink breasts, I’ve learned.

The mediation will likely settle the issue of whether or not Elliott’s should get an A or a B liquor license. The club originally applied for a type B restaurant style license, which would limits alcohol sales to 6 a.m. to 1 a.m. (2 a.m. on Friday and Saturday) but lets the business remain open past those hours, and also allows entrance to those 18 and over. The A license prevents license holders from remaining open beyond the 1 a.m. or 2 p.m. and prevents entry by those under 21.

It’s my understanding that Elliott’s believes it has a good chance of proving the company was denied equal protection under the law because they met all the qualifications for the type B license. Recent court decisions prevent denying otherwise eligible applicants from being denied a liquor license simply because they offer adult entertainment.

The case before the mediator doesn’t include Elliott’s long standing suit against the city for its original denial of a liquor license.

Here is the letter:

I want to apologize if this letter seems lengthy, it only prints out to a little over two pages. I would like to ask that you acknowledge receipt of this email after you have read it, so that I don’t have to hand deliver it tomorrow before council meets.

My name is Fred Jackson,. I am a corporate officer and the majority shareholder of Brimstone Steaks/Big Bad Wolf Inc. I am a native of Peoria, and have lived and done business here most of my life. I am a graduate of a local private school and have a degree in Mass Communications from ASU. Before I sold my company, I was one of the largest cellular agents from ’96-’03 in Central Illinois/Iowa with 22 outlets.

In 1985, Duane Cassano acquired Big Al’s. This was the epitome of a tasteless “biker-chick strip club”. Because of the experience I had in one of the nations premier Gentleman’s Clubs in Florida, he hired me to turn Big Al’s into a similar atmosphere. I was there until 1996, making it one of the most famous clubs in the nation.

In August 2002, my partners at the time decided to expand their downtown operation “Richards Downtown” to the North End. We worked out a deal with Mrs J’s Inc. to operate the old Big Johns Barbecue under the name of “Richards Uptown featuring Big John’s Barbecue”. This venture seemed to be very successful until Grandpa Johns owner started a lawsuit (which still exists) against us for the use of Big Johns name. They were granted a temporary injunction in December of ‘02 and we were forced to pull the name of Big Johns. This was a huge blow to business, and we had a long term deal on the building.

Since both of my partners were also long time employee’s of Big Al’s, the natural choice for a change was the adult entertainment venue. This was also compounded by the disappointment of what Big Al’s had become after its new ownership. It was no longer mass appeal adult entertainment. Most of its focus was now on its one on one “private dances” in closed off areas. We had a vision of a whole new cabaret style entertainment, with a cross between Hooters and Dave & Busters. This would require us to focus on a sports bar environment with a great menu, the adult entertainment would be secondary. This location was prime for this idea because of the nature of the surrounding business. With all the industrial and car dealers in our area, it could be the most popular lunch and after work hot spot in the North end.

To be competitive with both of the other successful clubs in our area, the B license was the only choice, and still is our desired license. Not because it allowed a wider age range, but because it is the only license that allows us to stay open beyond 1am. We have operated successfully for 4 years now without alcohol, but we aren’t operating as we envisioned it, and we certainly aren’t proud of what we have been limited to. Elliott’s has a very loyal following and can operate as it is forever. Contrary to popular belief, only 20% of our business is under 21. We don’t survive off of cover and drinks, we make our money from house fee’s and dances. Don’t let the daytime empty parking lot fool you either. Because of the visibility of our parking lot, our patrons park in all of the lots surrounding us, we also have a rear entrance. No one wants their car seen at the “strip club” in the daytime! No one seems to realize we already exist and have for 4 years. We are already successful in the volume of customers, liquor is only going to make us more profitable.

I am not going into all of the facts of our lawsuit on how the city derailed all of our attempts on the original cabaret license by changing laws and ordinances during our application process. But I will raise your attention to this supposed location dispute. We met with Randy Ray two years ago about a location downtown and a resolve to this whole problem. No one on the council wanted to entertain the idea. Where is the opposition to this location?? The only people who showed up to complain at the liquor commission hearing were Mrs Fritz, and two business owners who came to the neighborhood AFTER we were established. The Journal Star and the Observer informed me that no negative letters came to them on any of their editorials or articles, in fact, the only response was in favor of us. So please tell me where is all this opposition? If we do end up in court, our attorneys plan to show that this opposition may be coming from a generous supporter of a select few council members. This generous supporter could be one that owns the buildings that house Big Al’s and is majority shareholder of the adult club in Creve Coeur. One of his key employee’s also serves on the Peoria liquor commission.

It would not have mattered what location we chose in Peoria, we would have the same opposition. Our location affects no one. In fact, 3 years ago, 5 gas stations in Peoria applied for package liquor licenses. Only one was allowed a license. It is the station next to us. The quote in the paper from Eric Turner was that it was granted because “it is not a budding neighborhood”. Oddly enough, there are more occupied buildings in our area since we opened. The Thompsons plaza is now full, which was empty when we moved in, it is now full of professional offices, a health club and surprisingly a church!…and now a teen club is fighting to get in! The strip mall behind us is at capacity, it was half empty when we came. The only vacant spots are the old Chantilly and the Long John Silvers, and they were failing long before we came. This same scenario happened with Big Al’s, there was nothing but empty store fronts until Big Al’s became a mainstream operation. Within a year of my arrival at Big Al’s, there was not an empty building downtown. In 2003 when we decided to open a club we already had a location, but that would not have mattered because Peoria had downtown locked up for adult clubs. There was no building in the zone that wasn’t within site of a church or another adult license. (Note: this is why Fantasyland won out against Peoria county, they had no available area for adult use) Now there is available space, would you like us to open next to the waterfront across from the museum??

I have no idea where people come up with these myths about adult clubs and their secondary effects. Peoria has 4 clubs within 10 miles and not one of these secondary effects have materialized. We have already started the research for our case and in all 4 locations none of the alleged secondary effects exist, so what basis are you going to rely on that we will affect this neighborhood? Non-religious funded independent studies have debunked most of these secondary effects. In most cases it is the exact opposite, areas have thrived and the ones that have problems are from clubs that don’t have alcohol. Lets use a little common sense, a club that is profitable from alcohol doesn’t have to cross the line by making its money from questionable activity. This was the case in Apopka, Fl in the early 90’s. The city banned alcohol from its adult clubs to put them out of business. This area was surrounded by cities with clubs that had alcohol. These clubs that lost their liquor did whatever they could to survive, drugs and prostitution soared in an area that never had these problems. Needless to say the city gave back the liquor licenses to the ones that survived. The secondary effect arguments do not fool a federal court any longer.

That is not to say that some adult businesses don’t stir these effects, adult bookstores and body shops are notorious for affecting area’s. The reason is simple, as of the mid 90’s, Cabarets have become mainstream entertainment. There are no longer ‘strip clubs” of the 70’s and 80’s except maybe in rural areas and cornfields. To prove this, there is no longer a “gentlemens club” section at any of the three national Adult XXX Conventions. They have now gone on their own with a separate convention and are also included at the annual Nightclub & Bar convention. There are still huge misconceptions of what goes on in strip clubs based on TV and movies. But here is the simple truth, adult bookstores and etc. show and sell X-rated materials depicting, and in some cases, showing live sex acts. A Cabaret is R-rated, there is nothing you see in a Cabaret that you don’t see in an R-rated movie. Elliott’s, from day one, has never allowed full nudity on stage, except for feature traveling entertainers. That is our own policy. We also do skits, plays, gameshows and have live comedy. Is that what you thought a strip club was?

We have kept a high standard of cabaret style entertainment at Elliott’s in hopes that one day we would be granted the license we should have had all along. For 18 months we operated Fantasyland with this entertainment and thrived. You can check with the county to see that we ran an exceptional operation without incident. By operating Fantasyland we have the numbers and accounting to back up our losses at Elliott’s. In addition, we also know the value of having later operating hours since that was a 2am license and we currently operate til 4am. Not everyone in our situation would have operated in the same manner. There are much more profitable ways to operate a non alcoholic adult club, including running x-rated video and materials, peep show booths, private bed dances, etc. But my partner and I are from this area, and refuse to go that route. The reason we are NOT a burden to our neighborhood is that we refuse to be the kind of “strip club” that you unknowingly have been trying to make us!

But be aware that adult clubs are a valuable commodity and we have turned down offers from Déjà Vu, Larry Flynt’s Hustler club and most recently, [REDACTED] from New York. He owns a chain of clubs called the [REDACTED] that are all non alcohol and garnished with bright neon that states XXX LIVE NUDE GIRLS. He is one of the most successful operators on the East Coast and has visited our location on two occasions with an offer. Attached is a photo of one of their more subdued locations.

We have great plans for a club that we can be proud of and hopefully retire on, which was the original plan. But should our court case not go as we feel it will, we will still make our retirement by selling out to one of the offers. If that happens, you WILL get the “strip club” you have tried to force us to be.

In closing, here are a few things to consider. The judge we drew for our federal case is Mike Mihm, he is an extremely fair judge when it comes to these matters, you might want to read his ruling in the Mapleton, IL. “Shooters” adult club concerning its award of a liquor license. You might also want to read the California case that settled 4 years ago for 3.2 million dollars in a case similar to ours where a city changed ordinances while a club was trying to open. The judge said in his order that they “might as well named the club in all of these new ordinances”. We sent that case to you four years ago, I’m sure Mr. Ray has a copy. And I’m sure you are well aware of the recent Washington Park, IL. Ruling, where Mr. Ray wrote a conclusion on record that you should change your current ordinance, as it may not be able to stand up in court…he dismissed the other point of that case, being nepotism, but our attorney’s plan to explore the possibility of outside influence on select members of the council. Also look around the horseshoe, 3 of the 4 most vocal members against us are no longer there… Ransberg, Teplitz and Thetford. Most notably Mrs. Teplitz, who went on record to say “take their liquor away, that’ll take the fun out of them”…I might also mention that her husband is sole council for Fantasyland, which was a competitor. Don’t mistake moralist opposition for voters, obviously the real voters spoke. Mr. Nichting is the only vocal member remaining, but it is his district and we understand the direct pressure he was under.

We ask that you vote in favor of the A license for this site. But know that we will appeal the denial of the B license all the way to federal court. By granting the A license now, you will be limiting further monetary damages to the city.

Fred Jackson