New downtown club owner denied license, appealing city’s decision

A businessman who hoped to open a new club in the former Heat Ultra Lounge at 415 Yaupon Drive is appealing the city’s decision to deny his business license after the previous club owner was charged with racketeering.

The appeal hearing is set to begin at 9 a.m. Friday in a special Myrtle Beach City Council meeting in the first floor conference room inside City Hall at 937 Broadway St.

Clayton Smith told The Sun News last month that he purchased the business in October, taking over the club’s management and everything was going great with his new venture until he learned his business license had been denied. The club was forced to close.

According to the city’s business license division, Smith submitted a business license application for his company, Ming Heat LLC, doing business as Club Heat on Oct. 15.

The city reviewed the license application and denied the request Oct. 23.

The code section cited in the denial of the license stated, “The license official shall deny a license to an applicant upon a determination that: … the applicant, licensee or prior licensee in control of the business has engaged in an unlawful activity or nuisance related to the business…”

The owner of the former Heat Ultra Lounge, Vladimir Handl, is facing federal charges ranging from money laundering and racketeering to conspiracy to distribute controlled substances. He was charged earlier this year.

Handl’s attorney motioned for the charges to be dismissed, but the motion was denied in October.

The business also falls in a downtown district locked in a 2013 moratorium that put a freeze on any business licenses to new nightclubs or large bars that could serve more than 150 patrons. The area affected by the ban is bound by Sixth Avenue South to 16th Avenue North from the Atlantic Ocean to Oak and Broadway streets. The club on Yaupon Drive lies less than 500 feet within the southern edge of the district’s boundary.

“I love my city and I will not do anything to hurt my city,” Smith said, adding that he knows there are rules everyone has to follow and he plans to follow them.

Weaver: 843-444-1722; @TSNEmily

This story was originally published November 18, 2015 at 6:42 PM with the headline "New downtown club owner denied license, appealing city’s decision."