CENTRAL CITY — Regulation of sexually oriented businesses returned to the center of discussion during the March 3 meeting of the Central City Council. Officials advanced a new ordinance tied to the long-running dispute involving the business operating at 130 Main Street.

The property is home to Rick’s Cabaret and Steakhouse (owned by RCI), a business that fits the classification under City code as a sexually oriented business, or SOB. The issue has been the subject of complaints from some residents and ongoing enforcement actions by the city.

Under current zoning rules, sexually oriented businesses are only permitted in the city’s industrial zone, not in the Historic Gaming District where the business currently operates.

Council members met earlier in the evening in a lengthy executive session with the city attorney to receive legal advice related to enforcement actions connected to the property.

Ordinance rewrites SOB licensing rules

Later in the meeting, council approved Ordinance 26-01 on first reading, which would rewrite the city’s licensing regulations for sexually oriented businesses.

The ordinance repeals and replaces Article X of Chapter 6 of the municipal code, which governs licensing requirements for those businesses. It also makes minor revisions to another section of City code.

According to a report from City Attorney Marcus McAskin, the City adopted its current regulations in September 2024. Afterward, the City hired outside legal counsel to review and strengthen the ordinance.

The City retained Scott D. Bergthold, an attorney who specializes in regulation of sexually oriented businesses, to help draft updated rules.

City officials said the ordinance updates the regulations to more modern standards and addresses inconsistencies in the current code. Rather than making small amendments, the attorney recommended repealing and replacing the entire section.

The ordinance is based in part on secondary effects studies, research used by cities across the country when regulating sexually oriented businesses. These studies look at potential impacts such as crime, safety, and neighborhood conditions.

City officials said the goal of the regulations is to address those impacts while still allowing the businesses to operate within the limits of the law.

Definition of semi-nudity clarified

The proposed ordinance also provides detailed definitions related to clothing requirements for performers.

Under the ordinance, semi-nudity includes the display of the female breast below the top of the areola or the display of male or female buttocks without a fully opaque covering.

The rules specify that the covering must be actual clothing. Substances that can be washed or peeled off the skin—such as paint, makeup, or latex—do not qualify as opaque coverings under the code. (Former CEO Eric Langan once claimed latex was being used.)

Public comment

During the first public comment period, Central City resident and RCI CEO Travis Reese criticized the proposed ordinance changes.

Reese said the Planning Commission studied the issue in 2022 and recommended allowing the business at 130 Main Street to operate in the Historic Gaming District.

“That recommendation was never put before City Council for a vote,” Reese said.

He said the business continued investing in the property after that recommendation.

“However, we continued in good faith to develop the property and invest in the town,” Reese said.

Reese questioned why the City would consider changing the ordinance while litigation and mediation are ongoing.

“I’m puzzled that during the middle of litigation that the City would try to go and change their ordinance yet again,” he said.

After the first reading, Fey voted against the ordinance but declined to discuss the issue further due to the ongoing legal dispute.

“I’ve said my piece and I am in the obvious minority and I don’t want to say anything that would ever affect negatively our position in litigation,” the mayor said.

The ordinance passed on first reading by a 4 to 1 vote.

A second reading and public hearing are scheduled for March 17 at 6 p.m. in City Council Chambers.

City officials also noted that updates to the Land Development Code will likely follow later this year so that zoning definitions match the new ordinance.

Planning commission appointment

Council also considered applicants for an alternate position on the Planning Commission.

Applicants included Jenny Earnest, Kathy Walker, David Cummings, and Jaroslav Gussev, although Gussev was not present.

Walker told the council her background in journalism involved asking questions and analyzing information.

“My job has been to ask thoughtful questions,” Walker said.

The mayor initially recommended Earnest for the position, but the motion did not receive a second.

The mayor then nominated Kathy Walker, who was approved by unanimous vote.

Lease termination approved

Council also approved terminating a lease agreement for a City-owned property at 103 Eureka Street.

The City had leased the building to RMCC beginning October 1, 2025, for $1,500 per month, with an option for the tenant to purchase the property.

RMCC vacated the building earlier this year and requested early termination of the lease.

City staff inspected the building and reported it was left in good condition. The City will regain possession of the property and may seek new tenants or buyers.

Other business

During staff updates, Public Works staff reported several streetlight outages around the city. The issues have been reported to Xcel Energy.

A damaged light pole near the Dragon Tiger Casino has been awaiting repair for about a month.

During council comments, Alderman Chuck Spencer discussed a marketing campaign through the city’s Business Improvement District aimed at promoting downtown businesses through social media and video production.

The next Central City Council meeting will take place March 17, 2026, at 6 p.m., at City Hall, 141 Nevada Street, Central City.