Hooters: It's last chance to settle Troy
BY GINA DAMRON
FREE PRESS STAFF WRITER
The brazen restaurant chain known for its tank-top, shorts-wearing waitresses has issued an ultimatum to the City of Troy.
Settle now or face a long-running court battle.
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Hooters of America Inc. has presented the City Council with a new settlement -- the second in three months -- which would lead the company to drop all pending litigation, including a $1-million federal lawsuit. The dispute is over the transfer of a liquor license.
The council is scheduled to discuss whether to approve the offer tonight, but it may be postponed because two council members are expected to miss the meeting for personal reasons.
City Attorney Lori Grigg Bluhm said that Hooters attorney Edward Lennon e-mailed her last week, asking that the council postpone action until April 2 because Councilwomen Robin Beltramini and Jeanne Stine will likely be absent tonight.
Both councilwomen have consistently voted in favor of granting Hooters a liquor license transfer.
Hooters has sought a liquor license transfer for its new location on Big Beaver and Rochester roads. The council voted against the transfer in June, saying the restaurant doesn't fit the image of the Big Beaver corridor.
The council also decided not to approve a settlement agreement in January that would have halted the lawsuits. That deal would have allowed the restaurant to sell alcohol and required that Hooters close its second Troy location on John R.
Bluhm said that the new agreement allows for more signage than the previous one -- a point of contention for the council -- but still guarantees that the John R location would be closed if the transfer is granted.
"They're gambling with taxpayers' money," Hooters attorney Lennon said.
But Councilman Wade Fleming maintains that the city has a strong fight, both in federal court and the Michigan Court of Appeals, where Hooters is challenging a ruling by an Oakland County Circuit Court judge that upheld the city's decision.
Lennon said if the council doesn't agree to the settlement, the court proceedings could be lengthy. Bluhm said there may not be another hearing set in appeals court until the fall.
Fleming said he's willing to take the risk -- and anticipates that other council members are, too, based on their voting records.
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