Recently a post has been floating around My Space regarding the Derby. Out-of-towners might know this best as "the club from Swingers." Those of us who live in LA know it as the home of many a good show. (Plus, the bathrooms are unusually clean and, as you probably noticed, I have a fixation on the cleanliness of club bathrooms.)
The Derby and neighboring Louise's Trattoria were purchased by Adler Realty and you can read about the group's plan on its website.
If you don't want to lose the Derby, you can write to L.A. City Councilperson Tom LaBonge, who represents Los Feliz, via email, snail mail, fax, etc.

Here is his contact information:

Coucilman Tom La Bonge
City Hall Office
200 N. Spring Street Room 480
Los Angeles, CA 90012
Phone: (213) 473-7004
Fax: (213)624-7810

Hollywood Field Office
6501 Fountain Ave.
Mail Stop 2061
Los Angeles, CA 90028
Phone: (323) 957-6415
Fax: (323) 957-6477

Email: Labonge@council.lacity.org