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Posted on Thu, Aug 26, 2010 : 5:59 a.m.

State shows liquor license issued to Dream Niteclub in former Studio 4 bar

By Paula Gardner

A Detroit recording artist is using Twitter to promote the opening of “Ann Arbor’s newest nightclub” on Friday.

The location: 314 S. Fourth Ave. - now billed as Dream Niteclub, but formerly Studio 4.

The touted grand opening - billed on other social media sites as planned for Sept. 2 - comes as the former operators of Studio 4 and other people tied to aspects of the property continue various court battles.

Among the litigation: A lawsuit filed by Ann Arbor officials, calling the bar a public nuisance.

According to state officials Wednesday, VR Entertainment Network Inc. now has a liquor license registered to Dream Niteclub & Lounge at the South Fourth Avenue address.

VR Entertainment Network Inc., registered to Vickash Mangray, operated Studio 4 until it closed in early June.

The closing followed a court award of $324,890 to Papa Chulo’s Inc. after it filed suit against VR Entertainment, citing unpaid debt.

Meanwhile, Papa Chulo’s - an Ann Arbor-based partnership of Demos Panos, Pauline Skinner and Nick Panos - sublet the space from Maude’s Restaurant Inc. That entity, in turn, won a lawsuit this year filed against Papa Chulo’s, including a $52,754 judgment.

Now two new lawsuits related to the bar are wending their way through the courts:

VR Entertainment filed a two-count complaint against Papa Chulo’s on Aug. 17. The first count says it had a management agreement that would result in a payment of 5 percent of gross sales, which the “defendants consistently failed to (pay).”

It also claims that VR Entertainment was wrongly evicted in June, because it wasn’t part of the judgment and eviction directed against Papa Chulo’s.

The second lawsuit was filed in mid-July by Monroe Bank & Trust against Papa Chulo’s and its partners. The four counts, including breach of contract, center on a $151,000 loan balance that’s in default.

The bank is seeking the court to appoint a receiver to control the Papa Chulo’s liquor license, which secured the loan.

That license also is the center of a pending request with the state: Papa Chulo’s wants to transfer the license from VR Entertainment.

No one connected with Dream Niteclub could be reached for comment, including Ann Arbor attorney James Cmejrek, who filed the lawsuit on behalf of Mangray and his partner, Jeff Mangray.

The city's lawsuit against VR Entertainment remains in progress, said Kristen Larcom, assistant city attorney.


4 Fingers

Tue, Aug 31, 2010 : 10:01 a.m.

PersonX- I heard they got shut down friday by court order and the Liquor license was put in escrow. I'm not sure they'll open again too soon...


Sat, Aug 28, 2010 : 6:54 a.m.

Is there any further news on this?

Paula Gardner

Thu, Aug 26, 2010 : 12:38 p.m.

From where I stand, there's an unusual degree of complexity to this club & property, given the multiple entities involved and the volume of litigation that's touching all of them (except the actual owner, at least from what I can tell). And from what I can see, one move in any of the lawsuits or public filings could cause a ripple effect along all of them. Even the liquor license issue isn't simple - the state changed the name on it on behalf of the club operators, the owner wants it transferred back to its name and the bank wants a receiver appointed to take control of it. By this time next week, we'll at least know whether the doors opened as announced by the Detroit/Ann Arbor music host on Friday... and hopefully, we'll know a little more:)

Paula Gardner

Thu, Aug 26, 2010 : 11:07 a.m.

@Jason Right He's using Detroit as his home base on his social media. One example: Obviously, if he billed himself as from Ann Arbor in the places where I found this information, I'd be using it.

Jason Right

Thu, Aug 26, 2010 : 11:02 a.m.

How can you say that he is a detroit artist when he is based out of ann arbor and goes to school out here? the fact that you starts the article with that statement leads me to believe that you have a problem with the people from that city. however you feel about the people that live in the city of detroit is your business, but at least get your facts right about the person that is promoting. I have no idea what to believe in this article anymore.


Thu, Aug 26, 2010 : 10:55 a.m.

dont mess up i hope there is no problems with the cops good luck

M. D,

Thu, Aug 26, 2010 : 9:36 a.m.

I agree with Alan. Having lived just several hundred feet from the place, this town would be shocked to see what the area there is like many late nights every week. I don't know how many times I've had to call the police due to fights erupting outside in the street, or disgusting and offensive things happening from the club's crowd. But hey, maybe the problem is that there isn't a convenient underground parking garage nearby to make the bustling nightgoers around here happier...


Thu, Aug 26, 2010 : 9:24 a.m.

All right! Time to get my dance groove on in downtown A2! Brang it on baybee, brang it all!


Thu, Aug 26, 2010 : 9:16 a.m.

Lets replace one cesspool with another.