MYRTLE BEACH, SC (WBTW) – Myrtle Beach City Council members held a special meeting Friday to hear an appeal for a denied business license.
On Thursday, October 15th Clayton Smith submitted a business license to the City of Myrtle Beach to re-open “Club Heat.” Smith submitted the license on the same day that former owner Vladimir Handl turned his business license in.
Smith was open for business for only 72 hours before Myrtle Beach police issued Smith a citation for not having a proper business license.
On Friday, Smith testified that city employees said he was good to go but in fact his license was never approved. Smith says he was not aware and acknowledged he made a mistake.
Attorneys for Mary McDowell called several witness including Myrtle Beach police officers who said they’ve responded to 118 calls for service at Club Heat since January 2013.
Horry County’s Gang Investigator testified Club Heat is a known hangout for gangs. She presented pictures and flyers for club events that had gang members holding gang signs.
It’s something Smith says he was unaware of before he invested in the club.
“Unfortunately I didn’t know. But now I know and hopefully we can make a change and move forward and give me a chance to make a change at the club and change the whole atmosphere,” Smith said.
Investigators also questioned Smith’s relationship with former owner Vladimir Handl. Investigators said based on the evidence presented they believe Smith is a straw owner.
A straw owner is a person who owns property legally or has the legal appearance of owning something but does on behalf of another. It’s a claim Smith adamantly denied and says he has no prior history with Handl or a criminal past.
Residents who live and own businesses near the club say their biggest concerns are the loud music, trash, dangerous crowd and prostitution. One man testified he had a gun pulled on him and he has to take sleeping pills to make it through the night.
That’s an image Smith says he will change if he is awarded a business license. He says he’s even willing to change the name of Club Heat at this point.
“If anything, I’ll be moving towards the type of minor dance like 60s, 70s. The Johnny Rockets, the kids’ thing. We’ve got to cater to the kids because it is a couple blocks off the beach.”
But attorneys said it’s not for the city to determine what he can do with the business rather if it’s a nuisance according to the city ordinance.
“Business licenses are a legitimate valid way and probably the least obtrusive way that you can regulate what goes on in your city. That you can regulate and address the crime that goes on in your city because these become magnets of crime and you’ve heard the testimony,” Attorneys for Mary McDowell said.
The city will now review the evidence and make a decision by way of a motion at next month’s Council Meeting.
