The Discotheque and Joker Lounge are locked in a legal battle with the city of Augusta over whether they can remain open after their owner James “Whitey” Lester passed away. The conflict has allowed clubs to operate without a valid liquor license.
By the mid-1970s, the once-bustling Broad Street had become the milieu of adult entertainment lounges and porn theatres. As downtown began its renaissance in the 1990s, the porn theatres closed, but the strip clubs hung on.
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Almost every year during Masters week, the national press poked fun at Augusta, calling Washington Road an “asphalt jungle” and claiming there was nothing to do in downtown Augusta unless one enjoyed adult entertainment.
In 1997, the Augusta Commission came up with a plan to eliminate the clubs by passing an ordinance stipulating that once the existing clubs closed or the responsible parties/owners passed away, the clubs would then be subject to the new ordinances that prohibits alcohol from being served in clubs that feature nude dancing. Over time, the adult entertainment bars closed their doors as the owners passed away or clubs became unprofitable.
The Discotheque and Joker Lounge were allowed to stay in business as long as Lester was alive and were expected to be shuttered upon his death because his heirs were not subject to the grandfather clause and could not inherit his liquor license. All other clubs whose ownership passed away were forced to close.
As downtown continued to flourish with more restaurants and non-adult entertainment venues springing up, developers began to set their sights on the lower end of Broad with plans to expand the entertainment district all the way to Olde Town.
When Lester died in April 2019, locals expected the two remaining clubs to vanish when the alcohol licenses for the clubs expired at the end of the year. The licenses expired, but the clubs remained open.
Lester’s heirs responded to the ordinance by filing a lawsuit against the city, claiming the ordinance was vague and should not be enforced.
According to developer Bryan Haltermann, now that the issue is mired in the courts, he is selling his properties near the clubs.
“I have had to move slowly because the risk is so much higher in that area,” Haltermann said.
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Rob Sherman, director of the Planning and Development Department, said once the lawyers got involved, the city found itself in a no-win situation.
“If we shut them down and the city lost the case later, then (the clubs) would have to be reimbursed for the time they were not allowed to operate,” Sherman said. “On the other hand, if we granted them a new license while the case was pending, then it would give them credibility in court, in that if we extended the license despite our own ordinance.”
The cost of a yearly beer wine and liquor license is $4,050, and county records show this fee was not paid in 2020 or 2021 because the name of the person on the old license is deceased, and a payment cannot be made in his name. Also, if the city did accept the money in the name of someone else, they would be violating their own ordinance.
The adult entertainment ordinance aside, allowing the clubs to continue to operate violates the regular alcohol license requirement that a living human being has to be responsible for the license and not an estate.
Other downtown Augusta bar owners did not want to speak on the record, but all voiced the same sentiment that it is unfair for the city to allow a bar to operate without a valid license and not be subject to paying the same fees that they are responsible for paying.
One person who is not shy to go on the record is District 8 Commissioner Brandon Garrett who was unaware of the arrangement between the city and Lester’s heirs.
“I don’t think this should be allowed,” Garrett said. “How can an establishment operate without a license?”
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As it turns out, those establishments may not even have an operational business license as the county records list the club standing as “in court.”
District 10 Commissioner John Clarke agrees with Garrett and says the issue needs to be discussed and, he vowed to bring it up in legal session.
“Even during a pending lawsuit, they need to have a license like everyone else; otherwise, why should anyone try to get a license to open a bar and spend all that money when the city lets others stay open without having one,” Clarke said. “We definitely need to discuss all this further.”
Clarke said he believes that the commission should go back to the discussion on the 1997 ordinance and determine if the ordinance barring adult entertainment is even worth attempting to enforce.
“I believe the market will determine whether or not any business stays open,” Clarke said. “If a business does not draw a clientele, it is not going to stay open. That is just basic economics.”
Jay Klugo, owner of Sole Augusta downtown, seems to agree with Clarke. Klugo has purchased land around the adult clubs and says he is planning for his next restaurant business right in the thick of things.
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“I don’t get into the politics at all,” Klugo said. “I know Luigi’s (restaurant on Broad) has survived just fine, and I don’t worry about who my neighbors are. I worry about making my business a success.”
The Augusta Press can confirm that the Discotheque Lounge continues to serve alcohol and feature nude female dancers on stage, and while they are not legally licensed to operate, they appear to be following health guidelines.
Yes, the performers are nude, but they are wearing face masks.
Scott Hudson is the Editorial Page Editor of The Augusta Press. Reach him at scott@theaugustapress.com.
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