County Eminent Domains the Strip Club Next Door to Make Room for More Parking

Owners of Wilmington, North Carolina's Cheetah Premier Gentlemen's Club say they were blindsided by the seizure.

North Carolina strip club patrons might not be able to touch the dancers, but nothing stops the government from seizing the building they work in.

That's the revealing truth in an eminent domain case out of Wilmington, North Carolina, where the New Hanover County government (which contains Wilmington) is trying to seize the neighboring Cheetah Premier Gentlemen's Club to build what it claims is much-needed parking.

"The county identified a need to expand parking facilities to better accommodate our citizens when visiting the newly constructed government center. Exercising eminent domain to acquire the neighboring property is a legal and measured step towards fulfilling this need," said County Manager Chris Coudriet in an emailed statement to Reason earlier this month.

The county commission voted to authorize eminent domain of the Cheetah Club during its late Monday night meeting on November 6. The resolution authorized the county to spend $2.36 million acquiring the club.

Conspicuously, the resolution authorizing the seizure of the club wasn't on the commission's agenda, and was only introduced in the final minutes of the meeting by Coudriet, reports local public radio station WHQR. The station also reports that Coudriet referred to the property only by its tax ID number and didn't mention why the property was being seized, other than to say it was for public use.

That left the owners of both the business and the underlying property blindsided.

Property owner Jerry Reid describes the eminent domain resolution as "coming out of the blue." Michael Barber, a lawyer for the owners of the Cheetah Club likewise said the first time he heard about the seizure was early Tuesday morning, after the commission vote.

The presence of such an "adult" business next to the county center of government has caused its fair share of embarrassment. One county commissioner told the local Port City Daily that "the optics have always been an issue." North Carolina State Treasurer Dale Folwell also criticized county commissioners about their offices' proximity to a strip club at a hearing earlier this year.

The sudden, seemingly surreptitious effort to seize the club has Barber speculating that the eminent domain effort has more to do with public appearances than public facilities.

"I truly believe what set this off was State Treasurer Folwell's comment about the government center being built close to a gentlemen's club, just an offhand comment," he said to the Port City Daily. "I think that's what triggered this."

Reid has offered to let the county use the 74 parking spaces on his property. He noted to the local Fox station that the Cheetah Club doesn't even open till 6 p.m. The owner of a bowling alley also lets the county use his parking lot.

New Hanover County Commissioner LeAnn Pierce has come out against the use of eminent domain in this case. "I'm an advocate for private property rights. Eminent domain, in this case, is not something that I would be in favor of, and it absolutely should be a last resort at any time," Pierce told the local Fox station.

Barber has argued that the seizure of the club would cost the government tens of thousands of dollars in tax revenue and put the club's 65 workers, some of whom are earning above the city's average income, out of a job.

The county has to wait 30 days after providing notice to the property owner to proceed with the eminent domain process. Some county commissioners are pushing for negotiations with the owners that might avoid seizing the property.