Here to stay: “We’re here. We’re not going anywhere,” said Eric Langan, owner and CEO of RCI Hospitality Holdings, during the public comment portion of the August 20 Central City Council meeting. Langan has invested millions of dollars into 130 Main Street to open Rick’s Cabaret, which classifies as a sexually oriented business.[/caption]

The Central City Council meeting on August 20 was packed with significant discussions, beginning with a work session at 5:30 p.m. that focused on Sexually-Oriented Businesses (SOBs). Following this, Mayor Jeremy Fey opened the regular council meeting at 6:31 p.m., though not without some initial controversy.

The meeting started with a debate over whether Mayor Fey should recuse himself from an Executive Session, which was held to provide legal advice concerning a lawsuit filed by RCI Industries against the city. After deliberation, the Council decided to heed legal counsel’s advice, allowing both Fey and Mayor Pro-tem Kara Tinucci to participate in the session, as it was intended solely for receiving legal guidance.

The Council then excused themselves for the Executive Session, which included discussions on insurance coverage issues related to the lawsuit (case number 24- CV-02189) filed in U.S. District Court. The regular meeting resumed at 7:14 p.m.

Fey proposed reordering the agenda to prioritize the ordinances concerning SOBs, aiming to maintain momentum from the Executive Session. The council agreed, and Fey also added an action item concerning the Central City Opera, which City Manager Daniel Miera described as informational.

Fey, acknowledging potential conflicts of interest, announced he would recuse himself from public hearings related to amendments to the Municipal Code concerning SOBs, and asked Tinucci to conduct those hearings.

The first public comment session opened at 7:19 p.m. Zane Plsek, a resident, addressed the Boodle Mill zoning ordinances, emphasizing that any commercial development should benefit the community. He also praised Assistant City Attorney Erin King for providing comprehensive case law references in the meeting’s supplemental materials.

Rebecca Blondo, another resident, expressed gratitude to the Council for listening to residents and offering an alternative to SOBs through the upcoming vote.

The Council then moved to discuss Ordinance No. 24-02, which seeks to amend Chapter 16 of the City of Central Municipal Code, specifically relating to the permissible locations for SOBs.

On its first reading, King explained that if the ordinance is approved, SOBs would be restricted from operating in the HDG, GGG, and TSL zone districts, moving them instead to the industrial zone. (Note: see August 20 work session article)

She added that if SOBs are entirely prohibited in those districts, the issue of distance requirements becomes irrelevant.

City Manager Miera mentioned that the Planning Commission had recommended the changes in the ordinance.

Fey, questioning whether he should recuse himself from the discussion, was advised by King that since the ordinance was a legislative change affecting the city at large, there was no conflict of interest. Despite this, Fey offered to recuse himself, but the Council and legal counsel agreed he could stay for the discussion.

Alderman Jeff Aiken moved to approve the ordinance, which would restrict SOBs to the industrial zones.

Alderman Marcia Enloe seconded the motion. However, Alderman Todd Williams suggested an amendment to include the three districts where SOBs are currently allowed, alongside the industrial zones, to allow voters to weigh in on the distance requirements if SOBs were permitted in the downtown district.

Miera explained that there are several areas within the three districts where SOBs could potentially operate if the 1,000-foot distance requirement was reduced. However, without a second, Williams’ amendment died.

The Council then unanimously approved the ordinance as initially proposed, with the possibility of amendments during the second reading on September 3.

The council then moved to Ordinance No. 24-03, which amends Chapter 6 and Sections 10-7-20 and 10-7-30 of the City’s Municipal Code concerning SOB licenses.

King asked for direction on specific provisions within the ordinance, such as the requirement for a peace officer presence, tip boxes, and stage requirements. She recommended including a peace officer requirement, noting that while some municipalities, like Black Hawk, Centennial, and Buena Vista, have tip box requirements, while others do not.

Williams moved to approve the ordinance, with Enloe seconding. Fey mentioned that the current ordinance includes comprehensive regulations— “the kitchen sink”—and noted that it would be easier to scale down regulations later rather than scale them up.

Aiken expressed a desire to lessen the burden on businesses operating in the industrial zone.

The Council unanimously passed the ordinance on its first reading, with a second reading set for September 3. King agreed to research more examples of successful SOB legislation in other cities in order to inform potential future amendments.

Tinucci rejoined the meeting after recusing herself from the SOB discussions.

Scott Finlay, President and CEO of the Central City Opera, thanked the Council for their continued support, including a $25,000 grant. Fey assured Finlay that the check for this year was forthcoming and had been budgeted for.

The Council also approved the Central City Promise request, awarding a $5,000 scholarship to Juan Madrigal-Garcia.

Enloe recused herself from the next item, which involved approving a Historic Preservation Restoration Reimbursement Grant for her residence. The council unanimously approved the application for window replacements, totaling $5,457.

Tinucci then led the second reading and public hearing of Ordinance No. 24-04, which involved the annexation of City-owned property known as the Boodle Mill.

Fey recused himself from this vote but did not specify the reason.

King explained that annexation is the first step in developing land, with the next step being initial zoning. She emphasized that the current discussion was not about specific uses for the property.

Miera added that the annexation was overdue, as the land is an unincorporated parcel surrounded by city property.

King also noted that with additional work, the Boodle Mill could be designated as a National Landmark. During the public hearing, no one spoke against the annexation, and the council approved the ordinance.

Following this, Ordinance No. 24-05 was introduced, which establishes initial zoning for the Boodle Mine property as Limited Community Commercial (LCC) under the city’s Land Development Code.

Miera mentioned that the Comprehensive Plan identifies LCC use for the area. King reiterated that the Council would have the opportunity to review specific uses for the property later.

During public comments, one resident urged the Council to prioritize community benefits and suggested leasing the property rather than selling it to a commercial business.

Aiken suggested that the area would be better suited for non-commercial use, such as a park or dog area. The Council unanimously approved the ordinance.

During the general public comment section, nearly ten residents spoke on various issues. One resident was thankful for the communication regarding the reopening of Exit 7, while others praised the success of the “Night of Good Fortune” event but pointed out the ongoing need for better parking solutions.

One resident questioned why Fey recused himself from the Boodle Mill discussions but not from the SOB issue, suggesting inconsistency.

Another resident urged the council to make the SOB ballot question simple and understandable, expressing confusion over the ordinance. He encouraged the town to focus on improving the community rather than being bogged down by the SOB issue.

Eric Langan, head of RCI, reminded the audience that most of the buildings they have purchased have been vacant for 20+ years. “We’re here. We’re not going anywhere. We will figure out a way to operate within the laws, like we do in many other states.” He does not believe a vote from the people will cause a lot of change at 130 Main Street.

One resident asked for clarification on the ballot defining SOBs and zoning districts. She encouraged the Council to decisively restrict SOBs to the industrial district.

Additional items addressed during the meeting included the approval of the Consent Agenda, which covered the regular bill lists through August 16, the City Council minutes from August 6, and the ratification of HPC Grants, such as a paint grant for 330 Casey.

The meeting adjourned at 9:06 p.m.

The next regular meeting of the Central City Council is scheduled for September 3, 2024, and will be held at Central City Hall, 141 Nevada Street, second floor; or online via Zoom. Information can be found on the City website, centralcity.colorado.gov/ meetings.