TEMPE, AZ — Elite Cabaret, Tempe, AZ’s first strip club, will open soon, after a substantial fight with the city in federal court. The two sides settled things out last week.The club won’t be able to advertise that it is actually located within the city and any signs for the club won’t be able to have words like “nude” or “girls” on it. The club also agreed to promptly clean up any trash or graffiti on its property, to regularly meet with the local neighborhood watch group, to set up a 24-hour hotline so locals can lodge complaints against the club, to provide security for outside the club after dark, and to make all customers leave the club’s property within 30 minutes of closing.

Elite Cabaret also agreed to give money to the local neighborhood “as part of its policy of being a good neighbor and good corporate citizen,” according to the settlement. The amount is supposed to increase $6,000 every year until the club gives Tempe $120,000 annually.

It’s up to the city to decide if the money goes straight to neighborhood groups or if Tempe officials will administer the funds in another way.

The north Tempe neighborhood closest to the club that would get the money is saying openly that it does not want it since the money could make the neighborhood or city feel obligated to the club, according to Darlene Justus, president of the North Tempe Neighborhood Association, speaking to the local media.

“People will be very upset to know that the city is taking money from them,” Justus said, referring to Elite Cabaret.

She met with a representative from the club previously and was told that Elite Cabaret would fund neighborhood improvements like new roofs. Justus ridiculed the idea, saying adult businesses bring crime, prostitution and a “skid row” image.

“Don’t go putting roofs on our houses when you’re undermining our neighborhoods,” Justus said.

Elite Cabaret has been trying to open since November 2005, but the city said the club was within its 1,000-foot distance from a park and therefore could not open. So, the club smartly tried to break the lot in half to get outside the limit.

Meanwhile, the state legislature passed a bill that required adult businesses to be 1,320 feet from a park. Elite sued, saying Tempe violated its own rules in processing the club’s application. It also said the state law was unconstitutional.

Negotiations between the club and the city made it increasingly clear Tempe was likely to lose if the matter went to court, Mayor Hugh Hallman said.

Hallman suggested the city may find a new way to block the club.

Days after the settlement was reached last week, a federal judge issued a ruling on the matter. Hallman said it doesn’t appear the judge had the authority to rule at that point. If the judge did have jurisdiction, some of the judge’s arguments could give the city a new opportunity to keep the club from opening. The city council hasn’t spoken publicly on their plans yet.

Elite has yet to remodel their property or announce its grand opening date.