San Luis Obispo- Steve Diamond, owner of controversial adult stores in Grover Beach and Atascadero, has pulled qualification papers to run for City Council in Grover Beach.

Diamond has until Friday to return the papers.

Diamond said last October that he was so angry over the continuing legal battle over his Grover Beach store – which he called a waste of taxpayer money – that he was contemplating a run for City Council.

A judge ruled in June 2005 that a Grover Beach ordinance barring adult stores downtown did not violate Diamond’s constitutional rights.

The judge also ruled that Diamond could not continue operating a porn store while the court considered his appeal. The appeal is expected to be heard this year.

Instead of closing, Diamond replaced merchandise with prom dresses, outdated magazines and newspapers. He changed the store’s name from Diamond Adult World to Diamond Video World.

In October, police determined he still had enough items to qualify it as an adult store. A judge fined Diamond $10,000.

His store was then determined to be complying with the law.

Four other people have also pulled papers to run for the two open seats on the Grover Beach City Council.

Don Fielding and Liz Doukas have already returned theirs and have qualified for the election, according to City Clerk Donna McMahon.

City Councilman John Shoals and resident Bill Nicholls have also pulled papers, but have not yet returned them.

The deadline to return papers is Friday, unless Shoals does not return his. The deadline would then be extended to Aug. 18.