Friday, February 11, 2005
Copyright © Las Vegas Review-Journal

City considering strip club request

Council to vote on reissuing liquor license

It'll be tops down and bottoms up again if the Las Vegas City Council decides next week to reissue a liquor license to the strip club Treasures.

A federal court order has remanded a decision about the future of Treasures' liquor license to the council -- the same board that denied a license last year.

If the council approves a permanent liquor license, the club near Sahara Avenue and Interstate 15 could open for the first time since September. Owners would also promise to drop their lawsuit against the city over denying Treasures a liquor license last year, a move that forced the club's closure.

Las Vegas officials had no comment on the proposed settlement Thursday, but released a brief statement from the city attorney's office. It stated: "In the event the City Council issues a permanent tavern liquor license without any conditions or restrictions other than those which all of the parties mutually agree upon, the lawsuit filed against the city will be deemed dismissed with prejudice."

The council is scheduled to take up the matter at its meeting Wednesday, but most of the elected officials said they had not decided how to vote.

Councilman Michael Mack, who has done some public relations work for the club in the past, probably will abstain from voting.

Mayor Oscar Goodman also has abstained from past votes on matters related to Treasures because his son, attorney Ross Goodman, represents the club in criminal matters.

Councilman Steve Wolfson, who voted against granting Treasures a permanent license in September, said the potential indemnification of the city will be "in the back of my mind."

"I am going to wait until next Wednesday's meeting and listen to both sides present their cases," Wolfson said. "I voted against the license last time around but I will be basing my decision this time on whether the applicant is suitable."

The club sued the city in October, alleging officials acted unconstitutionally and counter to city code when they stripped the club of its liquor license. Club owners Ali and Hassan Davari of Houston sought to have the license restored and recover financial losses.

In the lawsuit, the club argued that Treasurers would have remained open had the Davaris not made an exceptional promise to the council in 2001, when the license was initially transferred to them. The owners, whose clubs were under scrutiny for criminal behavior in Houston, vowed they would surrender Treasures' license if a dancer for the club were ever convicted of sexual misconduct.

Treasures dancer Jessica Crockett, one of three dancers arrested in October 2003 for soliciting prostitution at the club, was found guilty in August in Municipal Court. The city cited the conviction as a violation of the Davaris promise and one reason the brothers should be deemed unsuitable for a liquor license.

Crockett's conviction was subsequently tossed out on appeal in District Court.

"To me, the reason they lost their license was because of the conviction," Councilman Gary Reese said. "The only reason they got the license in the first place was because of the promise."

Reese said he still has concerns about an open money-laundering case involving the Davaris' clubs in Houston. He would like the ability, if the council does grant a license, to have a simple procedure for revocation if additional criminal activity arises in the future.

"I would want that type of assurance," Reese said.

A dispute also arose over whether the club had possessed a temporary license, as the city argued, or a permanent license, as the club contended.

The club said the council was required to revoke their license in September, a different and more involved process than simply rejecting the application for a permanent license.