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Steve Marcus / File photo
The Crazy Horse Too strip club on Industrial Road is shown in September 2007.
Friday, June 22, 2012 | 2 a.m.
Crazy Horse Too
Sun Archives
- Court overturns $2.2 million fine against Vegas strip club (3-13-2009)
- Vegas to host trial in case about drugs, guns, terror (2-6-2009)
- Second Crazy Horse Too operator in IRS hot water? (1-22-2009)
- U.S. government angling to join skin industry — briefly, reluctantly
- Feds seek license to operate topless bar (10-31-2008)
- Bank seeks to foreclose on club, leaving others owed with zilch (10-21-2008)
- Judge rules against federal government in Crazy Horse Too case (6-26-2008)
A Nevada ethics watchdog group likened an expected $1.46 million donation to Las Vegas to a “public bribe” after learning new owners of the shuttered Crazy Horse Too strip club said they would give the city that much money for a permit.
The new owners of the property at 2466 Industrial Road needed City Council approval to reopen the building as a strip club because the permit for the previous strip club had lapsed.
A May 15 letter from an attorney representing Canico Capital Group LLC, which is owned by nine investors, said the city would get the money if Canico received a special use permit.
“My clients have specifically agreed to fund an escrow account with $1.461 million (the fine amount) on or before the 1st of June,” the attorney wrote. “These funds will be released to the City of Las Vegas upon issuance of the special use permit on the subject parcel.”
The attorney was referencing a city fine against the strip club’s former owner, Rick Rizzolo. In 2006, Rizzolo pleaded guilty to felony tax crimes and served 10 months in prison. The U.S. Marshals Service assumed ownership of Crazy Horse Too in 2007 as part of a plea agreement with Rizzolo. Canico bought the club in 2011 for $3 million.
Asked about the letter and subsequent approval Wednesday by the City Council, Martin Dean Dupalo, president of the Nevada Center for Public Ethics, replied, “Where do I begin?”
“I think it’s more of a public bribe,” Dupalo said.
“When you see that verbiage in the letter,” he added, “that we’ll pay ... so we can have this permit, I think it’s just unfortunate and a very, very poor agreement. It is financial interests that are speaking more loudly than safety or the public interest. I think we have enough strip clubs that we don’t need another one.”
Councilman Bob Coffin said the agreement was “something beyond my control” and began more than a year ago under a different city administration.
“This was a promise made to (former Mayor) Oscar Goodman,” Coffin said of the donation.
Goodman could not be reached for comment.
Coffin added he would rather the city receive no money and that if any money is donated, it should go to Kansas-area tourist Kirk Henry, who was paralyzed after a fight over a bar tab outside the club in 2001. Henry sued and is still owed some $10 million.
“If anybody gets money, it ought to be Mr. Henry,” Coffin added. “The city is hurt anytime something like this happens, and the city had not corrected the problem (at Crazy Horse Too). I had a list of police calls for service a mile long from 1998 to 2001 and tons afterward. But licensing didn’t clamp down on them. No one clamped down on them.”
City Attorney Brad Jerbic said any money given as a donation to the city has to go into the city’s general fund and cannot be given to Henry.
Jay Brown, one of the attorneys representing Canico, said “everything was done properly.”
“The city did the right thing, and they followed the advice of their city attorney,” he said.
The fact also remains, Coffin added, that the city is not guaranteed the $1.46 million. Though the City Council approved the special use permit Wednesday, it won’t consider the donation until it meets again in July.
Meanwhile, Coffin will attempt to get something for Henry but doubts he will succeed because “some members of the City Council have already started to count the money.”
If he had a preference, Coffin added, “they could have the permit without the city getting the money. It wouldn’t bother me if it happened that way because I feel the money would be most appropriate for Mr. Henry.”
Legal questions
Aside from the donation, a city resident also filed a protest with the city contending the special use permit bill needed Planning Commission review before going to the City Council.
Steve Gebeke, who lives in Coffin’s Ward 3, filed a letter June 15 with the city clerk citing this ordinance:
“Except where immediate concern for the public health, safety or general welfare dictate otherwise, the substance of any proposed amendment to the text of this Title shall be presented to the Planning Commission for its recommendation.”
Gebeke did not say so in his letter, but he works for the city’s Planning Department.
During a meeting of the city’s Recommending Committee on Tuesday, city attorneys said the ordinance pointed out by Gebeke did not fit the bill being considered.
In minutes of the committee, Val Steed, chief deputy city attorney, began by saying the bill would “authorize re-establishment of certain nonconforming uses under specified circumstances.”
He went on, saying the proposed bill would work “independently” and would not change the current text of Title 19, which is the city’s zoning code.
“It’s not something that a person will read every day,” Steed said. “It’s generally not operable in the city. It was a less necessary exercise to take it to the Planning Commission than it is (with) a typical text amendment.”
In his letter, Gebeke says that even though the bill is “presented as a stand-alone ordinance,” it would temporarily change part of Title 19.
“I would further argue that the action violates the spirit of the code to fully inform the general public of proposed changes to city ordinances and to allow the public adequate opportunity to express their support or opposition to such changes,” he added.
The committee’s three members voted to recommend the bill to the City Council for final action.
Coffin admits this was a bribe arranged by either former Mayor Goodman or CM Reese. LV has become so corrupt that its now called a donation when its made in public and a bribe when its behind close doors. Since when does the City Attorney get to decide that a law, i.e. code does not apply when the language is clear that that only way the Planning Commission can be bypassed is when its a matter of public health, welfare or security! Heads need to roll and the FEDS brought in to clean house!
Mr. Sun,
Further proof that one doesn't have to to be a billionaire, or a corporate 'person' or a Super PAC to influence and expose our corrupt governments.
Thank you for reminding us.
Regards
Purgatory
Well, it's not like the City doesn't need the money...
Money talks, corruption reigns. No wonder people are so fed up with the "system".
The right thing to do would have been to grant the permits with an unwritten understanding that the new owners will donate money directly to Mr. Henry. The building has been sitting empty for 5 years not generating any revenue for the city so just getting the club open will benefit the city.
Former Las Vegas City Councilman Steve Miller gives details about the Crazy Horse and all who are associated with Rick Rizzolo. Good reading for anyone interested in the truth about how Las Vegas has been run under former Mayor Oscar Goodman.
The Las Vegas City Council has a history of corruption. The FBI investigators were so sure about the corruption at city hall, they scheduled a sting every five years. Anyone with half a brain knows this whole deal with the new company, and the fact the beating victim has not been paid but now there is money to open the Crazy Horse, is a corrupt pre-organized deal accepted by the City Council.
Balls and Strikes, this is an easy call!
The IRS should take the money they made confiscating this property and pay Henry.
These investors are willing to pay all the standing penalties on this properties. THEY LEGALLY DON"T HAVE TO DO THIS.
This is just like paying back taxes on properties.
What these investors are doing is a good thing and at the same time protecting their investment.
This type of entertainment is good for Las Vegas and good for the women who work there. They make excellent money and if they manage it properly, they can retire at a very early age.
There are no other opportunities for women that offer this.
Right wing religious censorship and discrimination against women belong in UTAH and not in Las Vegas.
Dupalo says "I thing we have enough strip clubs..." - ah, if only he were king, what a perfect place this would be. Well, everyone is entitled to an opinion. The facts are this is a legal type of business, operating in a properly zoned industrial area. Let the operators spend money to acquire a permit, hire workers to refurbish the facility, hire bartenders, cleaners, limo drivers, etc, etc, and pay taxes.
Whether they succeed or fail will be voted on by the market. If most people agree with Mr. Dupalo then nobody will go there and they will cease operations.
First of all, this story should be stating that the new owners simply had to deal with a lapsed permit. The moral police are twisting this simple statement, "The new owners of the property at 2466 Industrial Road needed City Council approval to reopen the building as a strip club because the permit for the previous strip club had lapsed'" to appear there is some sort of wrong doing, when clearly there is NOT.
The FACT is that the prior permit had lapsed, and what the new owners were doing was to basically put a good faith deposit to cover the permit and any fees associated in this business deal to get the ball rolling so they can open up for business. Good faith, money up front, is customarily done as a routine practice in business real estate, so there is nothing shady as a "bribe or donation" here.
This brings me to question the insinuation of such "donation or bridery" statements within this article. Was it to serve the purpose of the moral police, Nevada Center for Public Ethics, that the Las Vegas City Counsel member, "City Council, Martin Dean Dupalo, president of the Nevada Center for Public Ethics," is a President of????
No 'conflict of interests' there, right?
Talk about inciting forms of discrimination against a business. This business is not located in the middle of a tract home development. The attacks of the Nevada Center for Public Ethics is unfounded in this case, and may well be a type of witch hunt that harms the image of the Club and its future employees, who have a right to be there legally.
People make a living in this country. The Crazy Horse 2 Gentlemen's Club is simply another business that is in the adult entertainment industry (Las Vegas is full of such businesses). No one is forced to go there, so get over it.
Let the moral police, Nevada Center for Public Ethics, direct their energies towards helping those who are hostage in the ILLEGAL sex trade industry that is so prevalent on our streets. Go there.
Blessings and Peace,
Star
It was a strip club, is in an older industrial/commercial/residential area of Las Vegas. Requires NO REZONING.....just a steep licensing permit, and there are additional 10 or 12 of the same type venues within a 1 mile radius. Let the City/County/whomever charge as much $$$ as they can. Not like these clubs are money LOOSING ventures. And for the Watchdogs........go suck a bone.......
What exactly is the process in determining the license fee? This can't be an arbitrary number and has to be based on use, size, etc....where's the calculator? 1.4 million for a license? Show me the table that calculates this number or is somebody just offering up the money?
MORE INFORMATION:
http://www.americanmafia.com/Inside_Vega...
http://www.stevemiller4lasvegas.com/Rick...
if that doesn't work maybe they'll just make 'em an offer they can't refuse.
What is the hubub about...call it whatever you like...fee...bribe...registration. Is money soon to be in the City coffers that would NOT have been there before. The moral outrage of having a strip club REOPEN in the same location??? PLEASE. To the Planning Department guy that got his panties all in a wringer, and now wants to put the kaibosh on it.......FAT CHANCE...people flock to Vegas for a variety of entertainment venues, and these places do a booming business. A zoning issue my butt...parcels are zoned and rezoned here like an exotic dancers goes through costumes in an evening.
digitalian said it best. That's what should be done.
This is the Oscar Goodman and Harry Reid's Las Vegas...past or present. The enviroment of this blatant corruption rivals Chicago 1973...Oops! Forgot! LV was built by Chicago.
Planning staffer Steve Gebeke is correct: A Secial Use Permit for a "Sexually Oriented Business", pursuant to Las Vegas Municipal Code Chapter 19.12.04, expires 30 days after the use ceases. So, the old SUP expired in 2006. A new owner would have to apply again, and prove that location is 1,000 feet away from another similar use, and any church, school or park that exists today. Planning staff can ask for a site plan and conformance to current codes for landscape, design and parking, etc. All of that would go to Planning Commission. Staff would collect normal nominal fees to process these applications. I hope that Gebeke has not jeopardized his job by speaking out against the city hall machine. Councilman Coffin sounds lost figuring out the "system" there also.
A mob'ed up strip club paying off Las Vegas City Council members? Shocked!! I tell you, Shocked!! Say it isn't so??
Buffalo Jim is rolling over in his grave and Mr Henry is trying ot get some medical help... But as long as the white envelops are making their way to the City Council members, everything is good.