Mike Signorelli, left, speaks to the Las Vegas City Council about the Crazy Horse Too Gentleman's Club while his lawyer, Jay Brown, looks on Wednesday. Photo by Clint Karlsen.

The Crazy Horse Too Gentleman's Club got an extension on its liquor license Wednesday, even as more questions arose about the topless club's new management and its relationship to owner Rick Rizzolo.

The Las Vegas City Council unanimously voted to extend the temporary liquor license for up to 90 days while police complete a background investigation of Mike Signorelli, who is leasing the club from Rizzolo.

The city revoked Rizzolo's liquor license after he, 16 employees and the corporation entered separate federal guilty pleas to a variety of crimes in June.

City Attorney Brad Jerbic raised five new concerns that included Signorelli's drastically reduced lease payments and illegal tipping of cabdrivers for dropping off patrons at the club.

"I don't think it was my intent, for lack of a better word, to do anything illegal," Signorelli told the council.

He said the lower lease payments, roughly a third of the $400,000 a month he had agreed to, were due to not taking in as much money as he had expected at the topless club.

He said he still intends to buy the club from Rizzolo, possibly for another use.

He has an agreement to buy the club from Rizzolo for $45 million.

"I might have bitten off more than I can chew," he said. "But I want to get the deal done."

City Attorney Brad Jerbic said that city staff members were also concerned with:

• Possible communication with Rizzolo regarding operation of the club.

• Employment of an individual related to a defendant in the federal case.

• A merchant account that sent credit card payments to Rizzolo in the first few weeks after Signorelli brought up the operation. It's unclear how much money went to Rizzolo before the account was switched over to Signorelli's company, Nevada Receivership.

Councilwoman Lois Tarkanian said she had "grave concerns" about the way the club had been operating.

Councilman Larry Brown said that the club was under a microscope.

"You're taking over this business in a very precarious situation. You will be judged with very little comparison to what other operators are doing."

Much of the discussion was about payments to cabdrivers who dropped off customers. Under the practice, common in the strip club industry, drivers can get as much as $60 per person they steer to clubs.

Signorelli's attorney, Jay Brown, said if the troubled club were to stop paying cabbies, the club would lose business. "They might as well close their doors tonight," he said.

He called for uniform enforcement of the law, though he wouldn't concede that the practice is illegal.

Councilman Steve Wolfson said just because the other clubs are doing it, doesn't make it right. "If the law says it's against the law, you shouldn't do it," he said.

Signorelli said, "I've done this with the advice of a lot of other people who I asked if I could do this. I won't mention their names. They said I could."

The liquor license extension granted by the City Council is the last one it can issue before either letting it expire or granting him a permanent license.

Jerbic said the length of time to complete their background check in Signorelli will depend on what they find.

Mayor Oscar Goodman recused himself from the discussion and vote. Brown, Signorelli's attorney, is a business partner of Goodman.

In June, Rizzolo, the Power Company and 16 employees separately pleaded guilty to a variety of charges, many having to do with failure to pay taxes.

Rizzolo faces up to 16 months in federal prison after pleading guilty to felony tax evasion. U.S. District Court Judge Philip Pro delayed the sentencing Tuesday to Jan. 23.

Pro, who allowed several previous postponements, said he was convinced by evidence submitted under seal that the sentencing needed to be delayed one last time.

Pro said the sentencing will take place next week.

In pleading guilty in June to conspiracy to defraud the government, Rizzolo agreed to sell the club and not contest some $17 million in penalties.

The federal plea agreements included the government's commitment to end a decade-long federal probe of whether the club was tied to the mob.