Strippers at the Dead Goat can't shed their clothes on stage anymore, but they can sing the blues.
A hearing examiner for Salt Lake City on Friday revoked the sexually oriented business license for the Dead Goat because sexually oriented activities have taken place in a basement room that is within 165 feet of a "gateway corridor."
City ordinances forbid sexually oriented business from operating within certain distances of various protected land uses such as schools, landmark buildings, churches, parks, residential areas or gateway corridors, which are main avenues by which people can enter the downtown.
This case involves the West Temple Gateway Corridor.
Hearing examiner John Cawley released a four-page written document Friday following a four-hour hearing Tuesday.
Cawley cited a "change in circumstance" for his decision. He concluded that city officials who handle sexually oriented business licenses had granted this license to the Dead Goat "under the mistaken assumption that no SOB (sexually oriented business) activities would take place in the west room of the basement of the premises."
Daniel Darger, co-owner and attorney for the club that now has been renamed the Crazy Goat, was unavailable for comment Friday.
However, earlier this week he said he would consider all legal options if the license were revoked, including such things as filing suit in federal court or pursuing other legal avenues, possibly in 3rd District Court.
Salt Lake City Attorney Ed Rutan said the hearing examiner's decision would take effect immediately, ruling out any seminude dancing Friday night at the Goat. Rutan said the decision did not have to be approved by the mayor or City Council.
But Rutan emphasized the facility still is licensed as a private club and legally can keep serving liquor and providing non-sexually oriented entertainment, such as blues bands or other types of music.
"I do not want anybody to think this has any effect on his (Darger's) non-sexually oriented business," Rutan said. "He was licensed before for those things (musical entertainment) and he continues to be licensed for those things. We're only dealing with sexually oriented business activity."
Not long after a legal wrangle began involving the club, the city and The Church of Jesus Christ of Latter-day Saints, the Salt Lake City Council enacted a moratorium on any new sexually oriented businesses in the downtown area.
Although that issue was somewhat unclear Friday, that presumably would preclude the Goat from reapplying for a sexually oriented business license because it would be a new license application.
Darger had argued at the Tuesday hearing that the license for his club had been granted for the entire premises — and he contended this included the basement's west room.
Darger had built an upstairs stage that city officials approved for semi-nude dancing because, among other things, it was more than 165 feet from the gateway corridor.
Darger contended that the stage in the west room of the club's basement had already been in existence before the sexually oriented business license was granted, and that city officials could have — or should have — known this fact when deciding whether to issue the license or not.
That particular stage has been raised and had a railing added as well as stairs.
Darger and his business partners had changed the Goat to a strip club because it was losing money as a blues bar.
Questioned as to where things go from here, Rutan said he would not speculate about what Darger might do. "He certainly has a variety of legal options open to him," Rutan said. "The ball is in Mr. Darger's court."
Meanwhile, a civil case is pending in 3rd District Court involving the club, although it also was unclear Friday what effect the license revocation would have on that.
Property Reserve Inc., the real estate arm of the LDS Church, and the Souvenir Stop filed a lawsuit asking the court to overturn the city's Board of Adjustment's decision to issue a sexually oriented business license to the Goat in the first place.
The next court hearing on that case is June 9 before 3rd District Judge Denise Lindberg.
E-mail: lindat@desnews.com