Salt Lake City can go ahead with an administrative hearing on the Dead Goat Saloon's sexually oriented business license, 3rd District Judge Denise Lindberg ruled Monday.
But the judge also said she would not grant the city's request to delay a civil lawsuit in her court pending the outcome of the city's hearing.
The city has scheduled a 2 p.m. hearing today to discuss whether the Dead Goat is violating zoning laws and should have its license yanked.
Property Reserve, Inc., the real estate arm of The Church of Jesus Christ of Latter-day Saints, and the Souvenir Stop previously sued the city to overturn the city Board of Adjustment's decision to grant a sexually oriented business license to the saloon.
Daniel Darger, co-owner and attorney for the Dead Goat, which changed its name to the Crazy Goat when it switched from blues bar to strip club, wanted the judge to stop the city from holding its administrative hearing because he argued the issues involved already have been addressed and resolved at city hall.
Darger contends it's unfair and unconstitutional for the city to hold another hearing, calling it an end run around the district court proceedings, which he argues is the proper place to appeal the Board of Adjustment's decision.
He also insists it is an effort by the LDS Church to make Salt Lake City shut down his strip club any way that it can, even though, in Darger's opinion, it is denying him his constitutionally protected rights to due process and free speech.
"This is a power play to take this thing on appeal out of this court," he told the judge.
If city officials take his license, "I'm out of business," Darger said.
Meanwhile, Lynn Pack, the attorney representing Salt Lake City, said changes in the way the Dead Goat has operated from the time it first got its license could be violations of city ordinances. Consequently, an administrative hearing is necessary because the city has the right to enforce its own laws, Pack said.
"The city didn't get the deal it bargained for," Pack said.
A key issue in this latest development in the long-running legal battle is whether or not a basement stage in the saloon violates city code because it is within 165 feet of the West Temple Gateway Corridor. City law forbids sexually oriented businesses from operating within certain distances from churches, schools and other protected land uses.
Pack said the city granted the license with the idea that a new, upstairs stage would be used for exotic dancers, but Darger recently has reactivated a formerly used stage in the basement for private parties. That part of the building is within the 165-foot limit.
Darger, however, said a city zoning official, a police detective and a fire marshal all toured the building and signed off on the license, which does not specify which rooms can be used for what. He said the front door of the club is 171 feet from the Gateway corridor.
Darger also said city officials knew the downstairs stage was already in existence when he applied for the license and it was granted.
"Nothing has changed," he said.
Lindberg said the city has the right to enforce its laws based on any alleged change in circumstances regarding the saloon, but not on the specific issues before the court.
"Whatever was there in place at the time of the issuance of the license and was patently obvious, I don't think is fair for revisiting," she said.
The judge also questioned whether Property Reserve Inc. has legal standing in this case. A hearing on that topic will be held June 9.
E-mail: lindat@desnews.com