PANAMA CITY, Fla. (WMBB) — Panama City commissioners have approved a settlement agreement with a local adult entertainment venue.

They came to an agreement during an executive session this morning.

The lawsuit with the Golden Nugget started almost three years ago. The city wanted them to shut down. An ordinance had passed forbidding sexually oriented businesses from operating within 250 feet of any tourism corridor like Highway 98.

It did include a grandfather clause for the Gold Nugget as long as ownership didn’t change. The city says ownership did change and they want the entertainment venue closed. The club, however, says that while the majority shareholders have changed, the venue’s owning LLC has remained the same.

Tuesday’s settlement agreement said operations would stop on October 1, 2029.

“It comes down to what the intent of an ordinance was back in the 1990s, we feel very strongly that the intent was when the ownership changed, regardless of whether it was moving to a new ownership stock or whether it was moving to a new ownership on paper, that that constitutes a change of ownership and we still stand by that and so what we’re trying to work through is a settlement agreement that works for both parties,” Panama City Commissioner Josh Street said.

Commissioner Street said the Gold Nugget has until the beginning of May to respond to the city’s proposed agreement.