Disputed Nude Club in La Habra Reopens; Status Still Shaky

The Pelican Theater, a nude juice bar on Imperial Highway in La Habra, has reopened after financial troubles forced a 25-day closure, but its future remains in doubt.

Club owners Bill Badi Gammoh and Bassam Diab Moussa reopened the Pelican on Aug. 18 after filing under Chapter 11 of the U.S. Bankruptcy Code to reorganize the business, which owes nearly $200,000 in court judgments to a former partner who sued in 1997.

A previous bankruptcy case was dismissed in June by federal Judge Robert W. Alberts because an attorney failed to meet filing requirements. Gammoh and Moussa refiled in August with a different attorney.

In addition, Gammoh and Moussa may owe a city-imposed traffic mitigation fee of as much as $230,000. The owners challenged the fee in court and are negotiating with city officials to settle on an amount to be paid.

All business property owners pay traffic mitigation fees, City Atty. Richard D. Jones said, but a new court-ordered traffic study at the Pelican may result in a lower payment.

The club has a history of clashes with city officials, who denied it a business permit in 1996 on grounds that it did not meet city parking and landscaping requirements.

Gammoh and his partner sued the city and, after a two-year court battle, were granted a permit to open in November 1998. Hundreds of residents protested the opening, saying they feared that young people would be attracted to the adult entertainment venue.

In June, the business was cited for violating a city ordinance that bans dancers from performing within 6 feet of customers.

Under federal law, cities cannot ban adult entertainment businesses outright but may limit them to certain parts of town and impose strict rules on their operations. The Pelican is in a former bank building between two family restaurants. In La Habra, adult businesses are not allowed within 275 feet of any schools, parks or churches. The Pelican meets that requirement.