The movie that Larry Brown is watching in the theater is Blue Collar (1978). It starred Richard Pryor, Harvey Keitel and Yaphet Kotto. It's about three workers who try to steal from the local union, instead they discover the corruption of the union and decide to blackmail them.
Paul has to present his nightclub plans to a citizens zoning board. One member of the board is played by Danielle Ferland. The presence of Ferland here is a theatrical in-joke: another subplot in this episode involves Eileen attempting to cast the role of Little Red Riding Hood in her unorthodox reimagining of that fairy tale. Ferland played Little Red Riding Hood in the original Broadway cast of Stephen Sondheim's 1987 musical "Into the Woods," which is also an unorthodox reimagining of fairy tales. Although the Sondheim musical is not pornographic (unlike the adaptation Eileen is making), it does equate Red's interactions with the Wolf with the ideas of sexual awakening and maturity (especially in the songs "Hello, Little Girl" and "I Know Things Now").