ANGOLA, Ind. (AP): Officials in a northeastern Indiana city have rejected a proposed $1.5 million settlement that would have ended a federal lawsuit filed by the owners of a proposed strip club.
 
       The Herald-Republican reports the offer made on behalf of Showgirl III owners Alva and Sandra Butler was soundly rejected Tuesday by the Angola Common Council.
 
       Mayor Dick Hickman says the city was “not biting on that one” and the case will now work its way through the courts.
 
       The Butlers sued the city in March 2013, alleging that their civil rights had been violated when the city prevented them from opening a strip club in the city 40 miles north of Fort Wayne.
 
       The Butlers contend the city unconstitutionally changed its zoning rules to block their new club.