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Popular NYC nightclubs to be auctioned


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NEW YORK, August 6 - Two Manhattan nightclubs that have long been trouble spots with police and New York City officials will be auctioned, according to a published report.

The clubs, the Tunnel and Limelight, will be auctioned off to the highest bidder in U.S. Bankruptcy Court on Aug. 13.

Peter Gatien, who owns the troubled nightclubs, has said he is ready to end his years-long battle with City Hall. City officials have complained that the Tunnel is a magnet for drugs and violence.

In April, a 16-year-old patron was stabbed to death in a parking lot near the Tunnel. Two years ago, an 18-year-old died of a drug overdose there. The Chelsea nightspot has become a central target in Mayor Rudolph Giuliani's aggressive nightclub enforcement effort.

Before bankruptcy Judge Robert Gerber ordered the auction sale, Gatien said in June that he was ready to sell the Tunnel privately and move on -- needing to pay off taxes he owes the state. Gatien's debt includes more than $5.7 million in state taxes and $2 million in back rent.

Gatien doesn't own the buildings, but the court will sell the club's names, leases, equipment and liquor licenses.

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just because limelight and tunnel are being auctioned off doesnt mean the party is over. they were not shut down by the city like twilo. maybe they might close for a month or two to get straightened out, but i cant picture limelight or tunnel not receiving any bids (well tunnel might be a hard sell considering its problems with the city, but not LL)

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