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November 14, 2009

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Columnist Jeff German: Will clubs remain united?

Thursday, Dec. 22, 2005 | 8:11 a.m.

Jeff German's column appears Sunday, Tuesday, Thursday and Friday in the Sun. Reach him at german@lasvegassun.com or (702) 259-4067.

It's crunch time for the clubs.

Expectations aren't very high that the valley's topless nightclubs will be able to resolve their kickback dispute with taxicab and limousine drivers -- on their own.

But that's exactly what they may have to do now that the County Commission has wisely made it clear that it wants to stay away from this free-market fight.

"The clubs have to come up with their own solution," says Philip Alexander, a veteran cabbie and industry activist. "Having a county ordinance shoved down our throat isn't an answer to the problem. It's just passing the buck."

One longtime strip club owner, Pete Eliades, remains hopeful that a solution can be reached.

"We're going to work it out," says Eliades, who owns Olympic Garden. "Somebody has to give in.

"Either the clubs are going to get smart and get this taken care of, or they're going to go back to the old ways and whoever survives, survives."

Eliades, who also has an interest in taxicab conglomerate Yellow Checker Star, prefers that the clubs stay united and stick to the self-imposed ban on kickbacks they agreed upon during a rare summit on Dec. 5.

The ban was put in place after some of the clubs upped the ante by an exorbitant margin and started paying drivers as much as $70 a passenger to bring them business.

That led to more clashes between cabbies and limo drivers competing for the wealth of cash, and it prompted new complaints over the way Strip hotel doormen were carving out a share of the bounty.

But it may not be realistic in this competitive market to think that the clubs can stop paying the drivers, altogether.

Previous prohibitions all have fallen by the wayside.

And at least one club, Scores, as I reported Tuesday, already has been accused of circumventing the Dec. 5 agreement -- which has caused all of the clubs to start spying on each other. In fact, the other clubs that signed the agreement have sued Scores, and are asking a judge for thousands of dollars in damages and a restraining order.

Though some may be tempted to go back to paying up, the majority of the clubs seem determined this time to keep the ban in effect.

"They're not going to budge," one insider tells me.

Some joints, I'm told, even have been exploring the possibility of bypassing the drivers and hiring their own shuttle buses to transport tourists to their establishments.

Cabbies, however, believe the clubs ultimately will once again see the wisdom of paying them for their good will in the marketplace.

They say they're tired of being branded the bad guys in the dispute.

"Don't lay this on us because we're out there doing the dirty work of the clubs, promoting their business," says Checker driver Dana Lane.

"They've created this. I don't think there's another business in this city that extorts more money from their customers than strip clubs."

Maybe it's only fair for the drivers to get a piece of the action.

Poorly functioning elevators continue to spoil the opening of the Regional Justice Center.

It's a big deal.

If the elevators can't do their job of moving people through the $185 million high-tech building, then what good is the building?

Officials, I'm told, have hired experts and consultants to help them tackle the problem, but long lines persist during the peak morning hours.

It's gotten so bad that lawyers, tired of being late to court, have asked officials to designate one elevator just for them.

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