Cleveland- [cleveland.com]- Cleveland Mayor Frank Jackson on Monday proposed the creation of an adult-entertainment district in the Flats to house up to three strip clubs, possibly including Larry Flynt’s Hustler Club.

The district, a two-block area east of the Cuyahoga River and within a block of the proposed Canal Basin Park, would allow a move by the Hustler Club as part of a settlement with developer Scott Wolstein.

Wolstein is negotiating with property owners to buy all of the land along the east bank of the Flats north of the Main Avenue Bridge, including the Hustler building on Old River Road, for a $230 million housing and retail project.

The Cleveland-Cuyahoga County Port Authority sued property owners on Wolstein’s behalf last year to take the land under eminent domain. In the midst of the trial, the judge suggested the parties settle, and a deal is close.

The developer has “agreements in principle” with three of four property-owning groups – the Hustler club, businessman Tony George and brothers William and Richard Droe, Wolstein spokeswoman Nancy Lesic said.

The city’s pledge to create an adult-entertainment district is key to reaching an agreement, city officials said.

“We wouldn’t be doing this if . . . we weren’t completely convinced this transaction was necessary to move the Flats east bank project along,” Jackson’s chief of staff, Ken Silliman, said Monday.

The City Council must approve the district and its location. Councilman Joe Cimperman, who represents the Flats neighborhood, said he supports the mayor’s proposal.

Currently, city law requires strip clubs to be no closer than 1,000 feet from parks, schools, churches, libraries and residen tial districts. But the restrictions would not apply to clubs in an adult-entertainment district.

The relocation would put Hustler near Diamond Men’s Club, an existing club on Fall Street down from the old Crooked River Brewing Co. building, where the city proposes relocating the Hustler Club.

The city also must find a place for the Stage 2 strip club, which will move from its Superior Avenue location to make room for a men’s homeless shelter. The city has agreed to pay for the relocation.

Silliman would not confirm that Stage 2 would move to the new entertainment district, but he said there would be room for another club on the three acres bounded by Center, Fall, Merwin and Simms streets in the Flats.

Diamond club manager Ed Thompson said he likes the idea of an adult-entertainment district because it would be marketable and convenient to convention-goers.

But he and other property owners in the area are concerned that adding new clubs might increase parking and traffic problems in the area.

“We have one major concern, and that’s parking,” said Joseph Buscemi, owner of State Fish, a wholesale seafood company on the corner of Merwin and Center streets.

Fran Geising, the general manager of the Inman mortuary and crematory across the street, said she’s also worried that a strip club district would taint the image of nearby businesses.

“What will people say: ‘Where are you taking grandma?’ ‘Oh, we’re taking her to the adult entertainment district for cremation,’ ” Geising said.

She said Inman would likely move if the council approves the district.