Strip Club Owner Sues City for $3.6 Million

The owner of a strip clubs has sued the city of Grants Pass, claiming it is illegally expanding a park in order to stop him from building another strip club.

In his suit, Larry Lacey, who owns Club 71 in nearby Sunny Valley, alleges that he was negotiating to acquire the former Palace Hotel in downtown Grants Pass when the city began to expand a park near the hotel to prevent him from a opening a strip club there, the Statesman Journal reported last week.

He claims by expanding the park, the city could argue that his new club would be too close to it, thus violating his rights to freedom of speech by preventing him from establishing his club at the old hotel location.

The city said it was expanding the park after about 100 local residents petitioned city officials last fall to make improvements at the park.

Lacey also claims the city purposely delayed issuing the renovation permits for the hotel.

In June, the city forced Lacey to stop work on the site, claiming permits were not yet in place. Moreover, the city closed the building and the Hunan Garden restaurant inside due to structural safety issues.