Men unload boxes of alcohol Friday at the Crazy Horse Too Gentlemen's Club. A judge refused to grant the topless club a temporary restraining order that would have barred city officials from enforcing the revocation of the club's liquor license. Photos by Isaac Brekken/Review-Journal A woman loads a box into a car Friday outside Crazy Horse Too.

Lap dances and liquor sales ceased Friday at the Crazy Horse Too Gentlemen's Club after owner Rick Rizzolo decided to close the business while fighting disciplinary action imposed by the Las Vegas City Council.

District Judge Mark Denton met privately with attorneys in his chambers Friday morning before denying the strip club's request for a temporary restraining order to stop city officials from enforcing the discipline, which includes the revocation of the club's liquor license. He then scheduled a public hearing for Tuesday morning, when he will take the next step of ruling on the club's request for a preliminary injunction.

"He just indicated it was a very serious matter. He wanted to make a decision after having all the facts in front of him on the record," Crazy Horse Too attorney Anthony Sgro said after attending the hearing in Denton's chambers.

The City Council voted Wednesday to revoke the club's liquor license and impose a $2.2 million fine as punishment for crimes committed by the business, Rizzolo and several employees.

In June, Rizzolo pleaded guilty in federal court to a felony tax charge as part of a deal that requires him to sell the club. His corporation, The Power Co., pleaded guilty to conspiracy to participate in an enterprise engaged in racketeering activity.

On Thursday, the Crazy Horse Too briefly stopped selling alcohol in response to the City Council's action the previous day, but the business resumed liquor sales after Sgro gave his opinion that city officials had served the disciplinary order improperly.

Immediately after the hearing in Denton's chambers Thursday morning, Sgro continued to maintain that position.

"At this point, Crazy Horse Too continues to serve alcohol based on my advice," the attorney said.

Sgro said a city representative left a copy of the council's order on one of the club's bars Wednesday, took a picture of it, and left.

"Under the statute, that's not appropriate service," the attorney said.

Sgro said Denton hinted that he was not persuaded by that argument.

"I got the impression from the judge that if the club continues to pour, they do that at their own peril, meaning: If I'm right, no harm, no foul; if I'm wrong, it could be a fact the judge takes into account and uses against the Crazy Horse Too," the attorney said.

Beginning at about 1:30 p.m. Friday, bouncers at the Industrial Road club stood in the doorway and turned away the handful of potential patrons who approached.

"I do not believe that they've been served properly. However, Rick has determined that in an abundance of caution he should wait before continuing to do business until we have the judge's order on Tuesday," Sgro later said.

City Attorney Brad Jerbic said copies of the disciplinary order were served Thursday at the club and at Sgro's office. On Friday, a copy was served at the law firm of Lionel Sawyer & Collins, where the club's resident agent works.

Jerbic said city officials do not believe any service was required.

"We believe the license was revoked the minute the council cast its vote," he said.

A tourist from New Jersey who identified himself only as Mike said he was given a coupon good for one free drink at the Crazy Horse Too as he was turned away from the club Friday afternoon.

"I always hit this place when I'm in town," he said. "It has some of the best women in town."

Four Spanish-speaking men tried to enter the club and also were sent away with free-drink coupons.

"Cerrado," one of the club's workers explained, using the Spanish word for "closed."

As dancers left, they hugged the male employees. The dancers declined to comment.

Business license officers, accompanied by Las Vegas police, went to the club at 4 p.m. and confirmed that the club was closed, said Mark Vincent, director of finance and business services for the city. Officers remained at the club waiting for liquor distributors to come and remove the alcohol.

"They asked to keep the liquor on the premises until Tuesday's hearing, but we'd much rather have the liquor out," Vincent said.

In the Crazy Horse Too's application for a restraining order, Sgro argues that the city violated the state's open meeting law in deciding on the club's punishment and that the council's decision violated the municipal code by failing to include "the required findings of fact and conclusions of law." In addition, he argues that the municipal code allows the City Council to revoke the club's liquor license or impose a fine, but not both.

The application for a restraining order also claims the city's "true intent" in imposing the "grossly severe sanction" against the Crazy Horse Too is to seize the property for the expansion of Industrial Road.

According to the document, the city "is fully aware" that the value of the property, when occupied by Rizzolo's licensed business, has a value of between $30 million and $35 million and that the city's cost for the planned condemnation likely would exceed $10 million.

Without the licensed business, according to the document, the value of the property "may be as low as $11 million, and the cost of the planned condemnation would be substantially lower." The document concludes that the revocation of the club's license will save the city millions of dollars.

Noting that the criminal case in federal court requires the club's sale, the document states that "it is fully anticipated" that city officials "will develop some pretext to deny" the prospective buyer's application for a license to operate the business "to preserve the savings described above."

"Not only will defendant city seek to cement that savings by denying such an application, it is also anticipated that part of defendant city's motivation will be retaliatory in response to the plaintiff's attempt to enjoin its decision and to disclose defendant city's behavior," according to the document.

In response to the allegations about the city's "true intent" in choosing the club's punishment, Jerbic said, "Outside counsel has been retained by the city manager to give advice on these issues. The city attorney's office is not involved in this matter." He declined to comment further.

According to an affidavit prepared by Rizzolo, revocation of the club's liquor license "will dramatically reduce the value" of the Crazy Horse Too, cause the club to lose most of its employees, likely cause the permanent closure of the business, and "inhibit the ability" of The Power Co. and Rizzolo to comply with their plea agreements.

Sgro has said he will seek to withdraw Rizzolo's guilty plea if the city succeeds with its revocation of the topless club's liquor license because the sale of the club, which is a condition of the plea deal, would not be possible at a reasonable price.

As part of its plea agreement, The Power Co. must pay $10 million to Kirk and Amy Henry. Kirk Henry, a Kansas City tourist, was paralyzed from the chest down in September 2001 after he disputed an $80 bill at the club.

Sgro said the club's insurance company already has paid $1 million to the couple. Amy Henry pleaded with the City Council this week not to revoke or suspend the club's liquor license before the couple have received the remainder of the money.

Review-Journal staff writer David McGrath Schwartz contributed to this report.