May 5, 2012 3:15:30 PM PDT
in the topic
Pinks and Law in the forum
Q & A
I'm not an attorney and don't play one on TV, and I don't know the specific of the Pinks location.
It would be highly unusual and very unlikely for the property owner to agree to get permits. That responsibility would normally go to the tenant who will be opening the club. If the tenant was smart, he would has a clause in the contract that would allow him to escape out of the lease if he cannot get the permits. However, most landlords would not agree to that because they can lease to a different tenant and get paid.
One of the reasons why it's hard and costly to open a club is exactly this reason. Normally, the tenant will have to enter a contract with the property owner NOT knowing if he will be able to get all the permits. All the while, the tenant will have to pay his rent, event though the club is not open. This was the case with the original Gentlemen's Club near Glendale, and many others.
Keep in mind that sometimes it can literally take many months or even years to get all the permits if the city doesn't want you to open. They are hoping you run out of money and will wait it out until they are sued before handing out the permits. If you want to open a topless alcohol club, you also need a liquor license from the ABC and it could take even longer and a lot of hands will have to be greased.
If for some reason, the tenant cannot get the proper permits, he has lost all the money and he cannot sue anybody. In rare cases, he can sue the city if they originally told him that he can get the permit and either was wrong, or re-zoned the area specifically to prevent him from opening. I know of all many cases like this and the tenants have done various things including suing the city, and in another case opening illegally without permits.
I also know of a few cases where an existing club was purchased and the buyer didn't bother to check the permits and it turned out they didn't have all the proper permits. This would have to be a shady cash deal because normally escrow would cover things like this.
Anyway, this was a long way of answering your question. The short answer (too late) is: Depends but most likely the tenant is out the money.