The controversial sex emporium would be located off Interstate 5 on Pacific Avenue.

Levi Bussanich wants the city to change wetland buffers so he can build a grocery store. If he doesn't get his way he said he's going to expand his adult video store into a sex emporium.

The sex emporium would include both female and male strippers along with live sex shows. It would also include a complete bondage and fetish area, an adult motel and a drive-through window for then what the owner calls "great customer access."

Some Olympians are angry to hear the owner of Desire Video is proposing to expand his store.

“That just sounds like blackmail. If I don't get it my way, I'm really going to screw this area up big time," said Brian Kannas of Olympia.

City Councilwoman Rhenda Strub thinks the business owner is using the threat of a sex emporium to push through approval for a grocery store.

She said the city won't be strong armed -- and will be taking a hard look at the legalities of allowing a sex emporium in the city.

“I don't want a carnival atmosphere with dancing women in cages and drive-through access to his wares," Strub said.

The business owner said he isn’t trying to strong arm anyone. He said he’s just trying to make a living.

“I have millions of dollars of real estate there. If I’m going to be restricted to use a couple acres, I must maximize my investment,” Bussanich said.

A decision is expected to be made in the next couple of weeks.

Bussanich said if the city grants his grocery store, he won’t build the emporium and he will tear down his adult video store.