Strip Club Teases Small Oregon City

"I am not necessarily in favor of this type of establishment at all, but if you must run a business and this is what you choose, then please locate your business where it will not affect the community and its families," she told ABCNews.com.

Tualatin's crime rate is low, and the biggest crimes run to identification theft and domestic disturbances, according to Police Chief Kent Barker, who was to report to the city council after investigating Stars Cabaret for its state liquor license application.

"It's a wonderful town," he told ABCNews.com.

Tualatin boasts only one other non-alcoholic strip club, Jiggles, which caters to 18-year-olds, and police said there have been no unusual problems with its operations.

But opponents of Stars Cabaret say Jiggles is located closer to Interstate 5 and not in the city's commercial hub.

Stars' Kaiser, a window manufacturer turned strip club owner, said he is a reputable businessman who for 13 years has served 2 million customers at his chain of "upscale gentlemen's clubs."

The operations cater mostly to 28- to 44-year-old men.

No Lap Grinding Allowed

Like other Oregon strip clubs, dancers are fully nude, but there are no-touching policies except "above the shoulder or below the knees," he said. "They can't sit on your lap and grind."

"We have an extensive history of operations in our state, but our opponents continue to make wild assertions about the negative impact on the community," said Kaiser. "These wild assertions are just so hypocritical. Like Chicken Little, they say the sky is falling. The world is not going to end."

"We have nothing against Stars," said CHANGE's Beriault. "We're a very open-minded state, but in this case it's gone too far.

"There's a psychological impact these guys don't talk about," said Beriault. "We're talking clientele in their early 20s and they want to party, so be it, I did. I don't want to deny them having fun, but it's a bad spot."

"They wrap themselves in freedom of speech and their commercial entity can have no scrutiny," he said.