City Council rejects diverting money to Crazy Horse Too beating victim

Money the family of beating victim Kirk Henry hoped would help with medical bills will end up in Las Vegas city coffers following a vote Wednesday by the City Council.

The council voted 5-2 against an amendment by Councilman Bob Coffin that could have diverted about $750,000 to Henry, a tourist from Kansas who in 2001 was paralyzed in a fight with workers at the Crazy Horse Too strip club.

The amount represented half of a proposed $1.4 million "donation" to the city from Canico Capital LLC., the new owners of the shuttered property.

Coffin argued that the city bore some responsibility for Henry's injuries because staff members and the City Council failed to close down the club despite widespread reports of violence and illegal activity on the property.

"A city that lives on tourism has an obligation to try to extend itself to protect tourists," Coffin said. "Yet this city didn't do anything."

Councilwoman Lois Tarkanian voted with Coffin in favor of the amendment.

After the vote against Coffin's amendment, the council voted unanimously for the original motion by Mayor Pro Tem Stavros Anthony for the city to accept the entire donation.

Amy Henry, Kirk Henry's wife, flew to Las Vegas on Sunday to lobby council members to accept Coffin's proposal but had to leave early Monday because her father had a stroke. In a phone interview she said the family, which includes Kirk and Amy Henry and their two college-age children, hasn't been able to hire a nurse or purchase specialized medical and exercise equipment that are needed.

"We just have a lot of expenses, and that money would be a huge, huge help for us," she said.

The vote was another twist in the saga that started in 2001 when Henry was injured during a dispute over an $80 bar tab.

Subsequent scrutiny of the club, on Industrial Road at Sahara Avenue, resulted in tax evasion charges against former owner Rick Rizzolo and a guilty plea on racketeering-related charges by Bobby D'Apice, the man accused of injuring Henry. D'Apice admitted using violence to get patrons to pay but denied hurting Henry.

D'Apice was sentenced to 41 months in federal prison in 2007. Rizzolo was sentenced to a year and agreed to pay Henry $10 million, but so far has only made good on about $1 million.

Rizzolo lost control of the club, and it fell into the hands of the federal government which allowed the permits for booze and topless dancing to lapse against the wishes of Henry's lawyers, who were counting on proceeds from the club's sale to pay their judgment.

They allege Rizzolo is socking away money to fund a lavish lifestyle while avoiding his debt to the Henrys.

"It can be just maddening, because you know he has the money, you know the money is out there," Amy Henry said. "It seems very unfair he can live his lifestyle and, because of what happened to Kirk, we have to live our lifestyle."

Last year Canico Capital Group of Southern California bought the club on Industrial Road at Sahara Avenue for about $3 million and embarked on an effort to get approvals needed to revive it as a strip club, which would increase the property value. At its peak the Crazy Horse Too was said to be worth as much as $35 million.

As Canico officials were seeking to get approval to bring back booze and topless dancing, they offered to pay the city a $1.4 million donation, the same amount as a fine Rizzolo still owed the city.

In June, the council approved an ordinance to alter land use rules to let the new owners revive the property as a strip club but deferred the decision about the proposed donation until Wednesday.

Coffin, working with attorneys Don Campbell and Stan Hunterton, sought to send some of the money to the Henrys, although City Attorney Brad Jerbic warned the council repeatedly the city could not give the Henrys the money or direct the new owners to do so.

Other council members, including Mayor Carolyn Goodman, heeded Jerbic's advice and argued the money should stay with the city.

"We are in great, great gratitude to you because the needs in our city are huge," Goodman told representatives of Canico. "Your funds, what they be, coming to the city certainly will help us."

Coffin said the combination of Rizzolo's political influence, apparent unchecked lawlessness at the club and Henry's inability to collect his judgment leaves the public with a bad impression.

"The public is only left to draw a conclusion that they somehow had some sort of immunity, that these boys, these rough guys over at this strip club had some protection, and I feel terrible about it," Coffin said.

He likened the proposed $1.4 million donation to found money and reasoned that even if the council voted to leave half on the table with knowledge the donors would give it to Henry the city would still be ahead about $750,000.

"Once a million and a half has been waved in front of you it seems like you have to have it all, and I don't buy that," Coffin told other council members.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-383-0285.