SAN MARTIN
– The City of Gilroy and the Forum Adult Social Club appear to
be close to making an out-of-court settlement for the club’s
citations for operating a business without a license, but for now,
no one is talking.
SAN MARTIN – The City of Gilroy and the Forum Adult Social Club appear to be close to making an out-of-court settlement for the club’s citations for operating a business without a license, but for now, no one is talking.
Forum Owner Deena Luce was not present in the South County Courthouse in San Martin today, but Gilroy Assistant City Attorney Jolie Houston and Luce’s attorney Kevin Hutcheson met with Judge Kenneth Shapero for five minutes before the judge extended pretrial until another hearing at 9 a.m. March 10.
Luce and her associates have 20 charges of operating a business in Gilroy without a license while her sex club operated on Monterey Road for several months. Court proceedings have been grinding since October, and the club moved to a home in unincorporated Gilroy at 2670 Dryden Avenue in December. Penalties for operating without a license are up to a $100 fine for a first offense, $200 for a second offense, $500 for a third offense, and a $1,000 fine and up to six months jail time for each offense after three.
Shapero hinted that a settlement may take place.
“It is my understanding that this matter is almost resolved, pending paperwork being signed,” Shapero said before continuing the case.
Shapero and Houston would not comment on the case.
“Nothing’s been resolved yet,” Houston said.
Mayor Tom Springer also refused to comment on a possible settlement.
“We cannot talk about any of that,” he said. “I know there was a meeting between the attorney and the judge, and he made some recommendations.”
The club began operating in a ranch-style home every Friday and Saturday night at 5400 Monterey Road behind the Zen Flower Garden in early fall. The club had previously operated in unincorporated Santa Clara County outside of Morgan Hill, near Railroad Street and Tennant Avenue.
When the club first appeared in Gilroy, the city began taking every possible step to get it out of city limits, including passing an emergency ordinance barring sexual encounter establishments – such as the Forum – from operating within city limits. The ordinance only banned adult businesses where sexual acts occur, not other adult business such as adult movie or book stores.
Luce did apply for a business license through the city in August, but the application was denied because the land was residentially zoned.
