Neighbors say it's been operating just down the road from their homes and businesses for years.

But apparently the city wasn't aware of it's existence until today.

We're talking about the adult entertainment establishment known as Dottie's on South Shields.

Our phone call was what alerted the city to this alleged violation.

We first began investigating this after someone who lives nearby took offense to the new signage the business just put out front - silouhettes of nude women on their outside wall.

Our calls to the city turned up a whole lot more.

Allen is a father of 6. He asked us not to use his last name, fearing retaliation.

But he says something had to be done after Dottie's began giving prospective customers on the outside a taste of what to possibly expect inside.

So we decided to give Dottie's a call, so we sent our cameras in.

And sure enough, they're operating as an adult entertaiment club.

Councilment Brent Rinehart says he's shocked to learn a strip club is operating in his district, especially since the city's zoning department claims their records do not show any permits for signs or for an adult entertainment club for 9501 South Shields - which by the way is located two businesses down from a daycare.

And the city zoning ordinances says for any such club to operate, they must obtain a conditional use license.

Mike Wilson with the zoning department tells me there's only three places in the city where adult entertainment is allowed, and the 9500 block of South Shields isn't one of them.

Now we did get through to Dottie Taylor, who says she's owns the club.

She's says she thinks she is legal - and that police have even done spot checks on the place.

Both councilmen Rinehart and police say they'll be checking with the zoning deparment themselves first thing in the morning to get to the bottom of this. We'll let you know what they find out.