Tuesday, Jan. 20, 2004 | 11:10 a.m.
Clark County approved limited liquor licenses for two strip clubs now owned by Jack Galardi, the father of the man expected to plead guilty to federal corruption charges.
The Clark County Commission voted without dissent to approve the liquor licenses for the Leopard Lounge, which would be both owned and operated by Galardi, and Jaguars, which Galardi would own but two other men would lease and operate. Both licenses are limited -- that is, meaning the county has not yet cleared the clubs for permanent operation.
The clubs were two among a small empire of strip clubs operated by Michael Galardi, who has agreed to plead guilty to federal charges involving vote-buying in Las Vegas and San Diego. The federal corruption probe also has led to charges against three former and one sitting Clark County commissioners and several San Diego city councilmen.
Commissioner Mary Kincaid-Chauncey, who has consistently said she is innocent of the charges filed last year, abstained from discussion or the votes on the liquor licenses.
The Leopard Lounge was granted a liquor license that would be automatically renewed on a month-to-month basis. Jaguars received a limited license that would be good for the first four months, then renewed on a month-to-month basis.
Randy Miller, who with Richard Gonzales would lease and operate Jaguars, the larger club of the two clubs, for $75,000 a month, are former Metro Police officers. The commission, at the request of the pair's attorney, extended the limited license to allow the operators to hire "qualified staff."
"With a limited license there is a perception that we may not be there a month from now," attorney Paul Larsen told the board. He asked for the first limited license to be extended to four to six months.
It was not immediately clear when the Leopard Lounge, now undergoing remodeling, would reopen. Under the county's rules it must open within 60 days or the liquor license would automatically be revoked.
Miller said Jaguars, on the other hand, could open as soon as Wednesday afternoon.
Jacqueline Holloway, director of county business licensing, said the limited licenses do not mean that Jack Galardi is cleared indefinitely. The county could revoke the liquor licenses at any time for wrongdoing at the clubs, she told the commissioners and the applicants.
Larsen said he expected the county and other authorities to keep close tabs on operations at Jaguars.
"I think the county has to be real sensitive to this whole situation," he said. "We're under a microscope here."
He said many employees who worked for Michael Galardi would likely return, but all would undergo independent background checks and drug screening.
Miller, who already has liquor and gaming licenses from the state and county governments, said Jaguars would retain its name.
"We think we can change the perception of the name," he said, referring to the corruption scandal. "We know this place will be scandal free."
Miller said many of the employees of the club, which closed after the county revoked its liquor license last month, are coming back. Some of them have found other jobs, and some have had a tough month without income, he said.
"The employees got caught up in this mess by no fault of themselves," he said.
Commissioner Yvonne Atkinson Gates warned Larsen and his clients that the license could be revoked.
"This board has a zero tolerance for anything that is not appropriate," she said. "We're watching you and I'm sure we're not the only ones watching."
Commission Chairman Chip Maxfield agreed, warning that Miller's and Gonzales' fate was tied to Jack Galardi's.
"Your clients are in for the ride," he said. "We have all these reasons to be concerned with his suitability."
Representatives of Metro Police told the board that it could take six to nine months for the full investigation of Jack Galardi to be completed. The decision is ultimately up to the County Commission, but Galardi could face a rocky road on both licenses.
Galardi was reportedly imprisoned for burglary of a post office in the early 1970s. Recently police raided several of his strip clubs in Florida; managers at the clubs were charged with various prostitution-related offenses.
While the Leopard Lounge will be Galardi's, Larsen said his clients will have no direct association with the strip-club boss.
Jack Galardi "simply owns the entity that owns the real property," Larsen told the board, and contact between the operators and the elder Galardi will be through lawyers.
Michael Galardi "has been informed that he is not welcome on the property" and will not have any relationship with the reopened club, Larsen said.
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