Settlement reached with parents and fraternity
PALO ALTO — A settlement has been reached between a Chico State University fraternity and the parents of a Palo Alto teen-ager who died in an alleged hazing incident in February 2001.
Adrian Heideman was found dead two years ago in the Pi Kappa Phi fraternity house in Chico. Police said the death was the result of an alcohol overdose.
Toxicology tests found that Heideman's blood alcohol was nearly five times the .08 legal limit for driving in California.
Fraternity members at the time denied that Heideman had gone through any sort of hazing, saying he was never forced to drink alcohol, but officials and Heideman's parents disagreed, which led them to file the suit.
The Chico State Pi Kappa Phi chapter has since disbanded.
Three fraternity brothers pleaded no contest to a misdemeanor in connection with the teen's death in February 2001. They were sentenced to 30 days in jail and fined more than $600 each.
In addition, eight members of the fraternity agreed to pay Heideman's family $500,000 in December 2001.
Details of this latest settlement are being kept confidential.
Flynt gets tax break
GARDENA — Hustler Casino owner Larry Flynt asked the city for another tax break on his gambling hall and officials gave it to him.
The City Council unanimously agreed Tuesday to increase the tax rebate Flynt is eligible for — raising the maximum amount Flynt can get from $250,000 to $500,000. The deal allows Flynt a rebate by “borrowing” taxes he pays the city.
“Based on a review of the club’s financial reports, the need is there,” Councilman Paul Tanaka said. In early negotiations, Flynt wanted much more money so the $250,000 limit was set and subject to a raise based on quarterly reviews, the councilman said.
Under the plan, Flynt may ask for as much as 4 percent of the tax money he pays Gardena each month on the clubs monthly revenue. The no-interest loan was not to exceed $250,000 and had to be spent on advertising and promotion. The new limit is $500,000.
The deal expires when Flynt’s revenue exceeds $2.7 million each month and must be repaid at 1 percent per month based on the new gross amount. The loan will be excused if club profits do not exceed $2.7 million over five years.
Flynt purchased the Eldorado Club in 1998 from a bankruptcy court, demolished the former structure at Vermont Avenue and Redondo Beach Boulevard and opened the Hustler Casino doors in 2000. It lost $2.5 million in its first year and Flynt asked for the tax break in December 2001.
“In the long run, this benefits us because if his revenue goes up and remains there, it’s more money for the city,” said Chris Hach, Gardenas assistant city manager.