Reports of Vice Spur Effort to Close Club : Sepulveda: Residents and police tell city officials of prostitution, drug dealing and other crimes in the vicinity of the Classy Lady topless bar.

Police and homeowners urged city officials Monday to close a Sepulveda club that features topless dancers, saying the club contributes to rampant prostitution, drug dealing, public drunkenness and other crime problems in the Sepulveda Boulevard corridor.

However, the owners of the Classy Lady in the 8300 block of Sepulveda Boulevard did not get a chance to defend themselves at the public hearing held by the Los Angeles office of zoning administration in Van Nuys. They said they received notices from the city incorrectly reporting that the hearing, which began at 2 p.m., was scheduled for 3 p.m.

Associate Zoning Administrator James Crisp had already closed the hearing and taken the case under advisement by the time the owners, Bob and Marilyn Gressman, arrived. He said he would probably make a decision within several weeks. And he said he would look into the origin of the erroneous hearing notices.

Opponents said the time issue will not be decisive in their fight, which they expect to go on for months. If Crisp rules against the Classy Lady, its owners can appeal to the Board of Zoning Appeals and then the City Council.

“This is going down to the last battle,” said Don Schultz, president of the Van Nuys Homeowners Assn., who was among half a dozen residents testifying Monday. “We’ll stay involved right to the end.”

The hearing was prompted by an appeal from the Gressmans for exemption from a 1986 zoning ordinance that prohibits operation of a sexually oriented business within 500 feet of residences. The Classy Lady, which is less than 500 feet from an apartment building, had an exemption, but it expired in March.

The owners have appealed under a clause that allows an establishment to remain in business if the owners cannot find reasonably priced property to relocate to within the area.

“That’s the only issue,” Bob Gressman said. “The rest really doesn’t matter.”

He acknowledged that there are crime problems in the area around the club but said opponents exaggerate them. He also said he does what he can to prevent crime.

Testifying at the hearing were vice investigators from the Los Angeles Police Department’s Devonshire Division, whose territory includes the club, and the adjoining Van Nuys Division.

Sgt. Ken Kreider said there were 2,585 crimes last year in about a mile-square reporting area around the club, more than seven times the average of 345 per year in the 72 reporting areas of the Devonshire Division.

The owners of the Classy Lady make no effort to curb prostitution, drug dealing, loitering and other criminal activity behind and in front of the club, Kreider said.

“It’s been an absolute nightmare,” he said.