Amid proposed fee hikes, strip club lawsuit remains

In November 2010, Senior U.S. District Judge Robert Vining ruled that the code illegally hampered free speech by making clubs jump through hoops and wait indefinitely for approval from police, fire and building departments. While Vining withheld judgment on whether the fees were exorbitant, he did say that if sections of the ordinance don't hold up, none of it can stand.

But if the commission approves on Jan. 19, fees for three nude bars on Fulton Industrial Boulevard would increase starting Feb. 1.

The cost of a license would jump from $6,000 to $6,400, and annual license renewal would go from $4,000 to $4,300. Hiring dancers also would become more expensive, with employee permits rising from $300 to $325, permit renewals doubling from $50 to $100 and employee background checks rising from $50 to $55.

"I think they're heading in the wrong direction," attorney Cary Wiggins said. "It may be that there's a left-hand, right-hand problem going on over there."

Rob Hernandez, the deputy county manager for the South Fulton Special Services District, said he's trying to adjust an array of charges, many of which haven't gone up in five years, for inflation.

He said he was unaware of the pending lawsuit, which predates his tenure with the county. He said he ran all of his proposed increases past the legal department, and no objections were raised on the adult entertainment section.

County Attorney R. David Ware did not return a message from The Atlanta Journal-Constitution. Spokeswoman Jessica Corbitt-Dominguez said that the county has nothing to add because it's a pending legal matter.

Other groups subject to new and increased charges include escort services, door-to-door salesmen, owners of eyesore abandoned properties, purveyors of incessant false alarms, people who don't spay or neuter their dogs but let them run loose, and any business needing an annual fire safety inspection or paying business occupational taxes.

A public hearing was held Wednesday on the increases, but no one came forward to speak.

"We look at what other communities charge, and we want to make sure that our fees are in line," Hernandez said. "We also want to look at recovering our costs."

The changes will also help make up for declining tax revenue, according to documents Hernandez submitted to commissioners.

The unincorporated special services district -- where property owners pay a higher tax rate for municipal services such as police, fire, parks and planning -- has an anticipated 2011 operating budget of $42.7 million. With south Fulton's extra tax rate being left at 8.159 mills, the fund faces a 12 percent decrease in revenue this year.

The new fee schedule should generate an extra $303,601 per year for south Fulton and another $54,245 for countywide animal services, Hernandez said

The strip club lawsuit seeks hundreds of thousands in damages. Wiggins represents Fannie's Cabaret on Fulton Industrial Boulevard and two Sandy Springs clubs that, while no longer in unincorporated Fulton, are seeking back compensation from the period before Sandy Springs became a city.

If the fees are raised, Wiggins said, either his client will pay up and keep seeking its money returned through the court system, or he may seek an injunction. So far, Fannie's has been paying every year.

The other two strip clubs that would be affected if the fees increase are Riley’s Showbar and Babes, both on Fulton Industrial Boulevard. Riley’s is enjoined in the lawsuit, but Babes isn’t taking part.

Staff writer Shane Blatt contributed to this article.