LA rooftop nightclub owner sues city after hotel underneath turned into taxpayer-funded homeless shelter
A rooftop nightclub owner in Los Angeles sued the hotel beneath its venue after the property was converted into a taxpayer-funded homeless shelter in 2021, arguing safety and operational disruptions blocked opening. By 2024 the shelter residents had moved out and the hotel remained largely vacant, while a judge in March dismissed most claims against the city yet allowed an inverse condemnation claim to proceed, with no trial date set. The dispute has prompted the city to hire outside counsel at public expense and drew attention to the scale of funding for homelessness initiatives—claims cited exceed $100 million. The case continues, signaling ongoing tension between private investment plans and city-led housing programs and potential settlements or further litigation.
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Dennis Smith, who developed ROME Nightclub atop the LA Grand Hotel Downtown, invested millions for a high-end venue intended for major events and private access via a rooftop helipad.
The hotel closed to regular guests around the start of the COVID-19 pandemic and was converted into temporary housing in 2021, a move that Smith said created unsafe conditions and other barriers to opening the nightclub.
In January 2024, Smith filed separate lawsuits against the hotel's owner, Wei Huang, and the City of Los Angeles, alleging damage to private operations and safety concerns stemming from the shelter conversion.
By mid-2024, shelter residents had moved out and the hotel remained largely vacant; in March a Los Angeles judge dismissed most claims against the city, though the inverse condemnation claim persisted.
No trial date has been publicly announced for the continuing case, and the city is expected to hire outside counsel funded by taxpayer dollars; video commentary has amplified the public narrative around the financial scale of homelessness initiatives, with figures cited as over $100 million.