Start-up: Niche Nightclub

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Rico Sabatini, 28, was once a storm-chaser, but the storms he encountered probably paled in comparison to the storm he and Corey Gresen had to chase in their pursuit of a new LGBT-friendly nightclub on Madison’s east side. “Plan B,” a new business venture which opened in mid-August, is the result of years of persevering and a driving commitment to provide a new social venue for a growing segment of the Greater Madison community.

Gresen, 26, and Sabatini were introduced three years ago through a broker who realized they shared the same dream of owning a nightclub. By that time, Gresen had already developed a business plan for such a venue and conducted his own market research by polling University students, and soliciting information from competitive businesses by claiming he was a business school student working on a research project. It worked.

In December 2007, a deal for a Blount Street location fell through. Unfettered, they moved on to “Plan B” and found a building on Williamson Street recently vacated by Star Photo. The building was zoned commercial, though there were residential homes nearby, so on the advice of their alder, they conducted an “all-say” meeting, where they presented their plan to a crowd of nearly 70 residents, media, and bar owners who braved the frigid cold to voice their opinions. Afterwards, only four voted against the new bar.

Subsequent meetings were held with the Marquette Neighborhood Association (whose concerns resulted in a $50,000 kitchen with the ability to offer late night snacks until 1 a.m.), the Alcohol License Review Commission (which approved their liquor license), and finally the cityÕs Planning Commission.

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The biggest hurdle they had was parking. Plan B’s capacity was set at 300, meaning the current standard of one parking stall for every three persons would translate to the need for 100 parking spaces. “No one has that on Willy Street!” the owners rebuffed. So, they held another public meeting to argue that because the location was on a major bus line, a bike path, and had 200 parking stalls within a two-block area, they needed a variance. This time, they used blogs to roust support and attract a crowd. The duo got their parking variance, and the Planning Commission voted 7-2 in favor of the club. Last March, Gresen and Sabatini signed a 5-year, $5,500/month lease (with two 3-yr options) with landlord Chuck Chvala, and construction began shortly after.

While Gresen developed the Web site, Sabatini’s parents took out a second mortgage on their home in order to invest in their son’s dream, and other family members are helping with construction and security. [Chvala shared costs on major improvements as well, they said, such a $35,000 roof replacement.] Loans were secured from the Madison Development Corp., Oak Bank, personal and private investments totalling $80,000, and other sources.

In the end, over $500,000 was spent transforming Star Photo into a 6,100-sq.-ft. nightclub, complete with a huge dance floor and a bar made of recycled crush glass.

The faltering economy actually worked to the owners’ benefit, they said. Using all local labor, construction costs were significantly less than what they would have been otherwise because, as they put it, “people were so hungry for the work.” As for the clientele: “We still felt the niche was there. People still drink and go out [despite the economy],” Sabatini said.

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The owners seem pleased. “We’ve opened up a new chapter and are drawing people out of the woodwork,” Sabatini said.

With 1,200 fans logged in to the Plan B Facebook page, the club now has a supportive contingent ready to help assure there will be no need for a Plan C.

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