Mermaids 'Bikini Club' Files Suit to Reverse Permit Denial

It's time for Mermaids Cabaret to either sink or swim.

The self-proclaimed "upscale bikini club" at 16817 Ventura Blvd. opened its doors on March 5, and neighbors allege it has been the site of illegal activities such as public drunkenness, public urination, littering and inappropriate sexual activity.

The club has been hosting "2-for-1 Lap Dance Nights," "Wet T-Shirt Contests" and "Amateur Dancers Contests" with a temporary entertainment cafe permit since March.

Neighbors, backed by L.A. Councilman Paul Koretz, who represents District 5, are outraged, and during a July 21 hearing of the Police Permit Review Panel, they blocked Mermaids Cabaret from obtaining a permanent Entertainment Café permit.

In response, Mermaids filed a lawsuit against the city, and it currently remains open under the protection of a court order.

"The judge determined that the decision of the panel is defective. It's being remanded to the [Police Permit Review] Panel for further action," said Roger Diamond, the lawyer who represents Mermaids Cabaret.

The LAPD's Police Permit Review Panel along with the California Department of Alcohol Beverage Control regulates Entertainment Café Permits.

For now, the club is still operating seven days a week with its full calendar of bikini-themed events.

"[Mermaids] has got a history of being a problematic neighbor," said Jeffery Ebenstein, Council District 5 Field Deputy. "There's been loud music until the wee hours of the morning. It turned into a gentleman's club, and there have been people stumbling around in the neighborhood."

"We deny that accusation," said Roger Diamond, Mermaids Cabaret's lawyer, in response to Ebenstein's allegations and neighbor complaints. "[Neighbors] don't want to deal with the psychological impact of believing or knowing that a bikini establishment is there. They don't want to deal with it mentally, but they know that's not a basis for objecting. So they fabricated a lie that [Mermaids] is creating noisy music," said Diamond, who represents several nude theaters, topless theaters with alcohol, and bikini clubs in Los Angeles.

At the July hearing, Koretz said, "The LAPD has conducted multiple comprehensive investigations and found numerous complaints, violations, and has made arrests."

Police Det. David Lange is the investigating officer who testified that he witnessed inappropriate activity at Mermaids.

"There was touching and grinding going on ... and what's even more egregious is that it was behind a sheet, out of sight, which is illegal even if it were to be an adult entertainment business," Lange testified.

Lap dancing, illegally constructed stages and metal poles (commonly referred to as "stripper poles") are among the other violations that caused Mermaids to be under review by the Police Permit Review Panel, according to Ebenstein.

There have also been accusations of used condoms and beer and wine bottles littering the surrounding area, according to Diane Rosen, Chair of the Encino Neighborhood Council's Planning and Land Use Committee.

Rosen said she has received more than 100 letters from residents complaining about Mermaids Cabaret. "I have a letter from a middle-aged woman that comes home at 1 o'clock and is scared to death because, she says, her words, 'Horny men' are out there in the street, and she's afraid to leave her car, walk from the garage and go into her house," Rosen said at the July hearing.

At that hearing, Koretz said: "The city has spent too much time and money trying to keep this business in compliance, without success. The community has suffered too much and too long from this ill-mannered business which has shown time and again that they have no desire to be a good neighbor."

"We stand firm with [Mermaids] not having a cafe entertainment license," said Ebenstein. "If they want to be a responsible, respectful business with the permits they do have, that's how we encourage businesses to operate."

Mermaids Cabaret is owned by Jeff Katofsky, an attorney and real estate investor. Mermaids occupies the space formerly inhabited by El Torito Mexican Cantina and Restaurant.

"A couple of people who live on the south side of Ventura Boulevard have complained because they don't like that [the building] is no longer the El Torito restaurant," Mermaids lawyer Diamond said in response to the allegations. "If the people in the neighborhood had supported the El Torito restaurant, it would still be there."

Diamond said that Katofsky is willing to meet with his neighbors to resolve any conflicts. "My client is willing to meet with the homeowners. Come to the restaurant, meet with management and discuss the issue."

So far, Mermaids has seen a stream of patrons steady enough to stay open. The court has sent the matter of whether or not Mermaids should be awarded a permanent Entertainment Café Permit back to the Police Permit Review Panel, where it awaits further review.