After a year filled with numerous court proceedings, Dream Niteclub — located at 314 South Fourth Ave. and previously known as Studio 4 — is facing eviction.
Ann Arbor’s 15th District Court issued an order last week that allows the nightclub’s landlord, Dean Zahn Properties LLC, to evict the business unless the club pays $42,000 in rent owed by Wednesday. The club has a history of legal issues with the city, including a series of three nuisance complaints filed in the past three years.
In light of the complaints, the Ann Arbor City Council unanimously voted last week to approve a resolution that recommends that the state allow Dream Niteclub’s liquor license to expire.
The club’s troubled beginning started with the prompt closing of Studio 4, on June 3, 2010 following a lawsuit that detailed more than 200 calls to the Ann Arbor Police Department involving instances of violence, overcrowding and the violation of state liquor license policy at Studio 4.
Dream Niteclub filed a $3 million federal lawsuit against the city of Ann Arbor in January on the grounds that the city made false claims of illegal activity at the club. The lawsuit also accuses the city of civil rights violations, conspiracy and cruel and unusual punishment.
The city filed a motion to dismiss the lawsuit in February, and a hearing will be held at the end of May. The first and second nuisance complaints were dismissed in court, and the third nuisance complaint — which was filed last June in response to a series of violent fights — is still an open case.
Roger Farinha, Dream Niteclub’s attorney, said he believes the city is targeting the club because it attracts a multiracial demographic.
“Any club that brings African Americans to Ann Arbor is going to be targeted,” Farinha said. “It’s a formula that they’re using for nuisance abatement action to intimidate and harass legitimate businesses.”
According to Engineering senior MJ Gellada, a member of the Filipino American Student Association, FASA and the Chinese Student Association encountered difficulties with the club during a benefit dinner in November 2008, in which they made an agreement with club owners that their groups would receive half of the cover charges.
Gellada claims that Dream Nite Club only counted Asians who participated, and divided the cover funds based on that number, rather than total attendees. CSA and FASA leaders confronted the club owners, and an argument ensued during which the owners began using derogatory terms for female students in attendance.
“What happened in short was racial stereotyping,” Gellada said. “They didn’t handle themselves professionally and they broke the contract.”
Ultimately, Gellada said neither organization took money from the club.
In a separate incident in June 2011, injuries incurred during fights at the club sent three patrons to the hospital and a 22-year-old man was also shot in the arm.
City Attorney Stephen Postema said Dream Niteclub admitted to two counts of “allowing the annoying or molesting of customers” last September in relation to the fights, for which the club was fined $600 dollars.
Despite the multiple incidents, Farinha said he believes Dream Niteclub will win their lawsuit against the city because the city’s current and previous allegations have no basis.
“They have no evidence except police officers’ statements which are hearsay,” Farinha said. “I’m not worried, we’re going to win.”
Postema declined to comment on all legal situations involving Dream Niteclub because of the ongoing litigation.