A proposal to amend city ordinances to potentially allow an adult cabaret with an accompanying restaurant at the entrance to the city’s Main Street has sparked significant debate in Central City. Enough so as to draw the attention of major news outlets such as Denver’s Channel 9 News, who attended the recent City Council meeting on July 2, 2024.

A room full of citizens and press promised a night of relative excitement for the aldermen, including Mayor Jeremy Fey, Mayor Pro-tem Kara Tinucci; and Aldermen Jeff Aiken, Todd Williams, and Marcia Enloe.

Brought to the City Council by the Planning Commission months ago, a proposed amendment to City Ordinances from earlier this year aims to ease restrictions on Sexually Oriented Businesses (SOBs) and was a key topic of discussion (though not on the Agenda) at the July 2 City Council meeting.

Central’s current code and its restrictions on SOBs effectively prohibits their existence. Under the First Amendment, ordinances regulating SOBs cannot completely ban those with an expressive element. Municipalities must provide adequate alternative avenues of communication in order for these businesses to operate.

Fey has voiced his advocacy for the plan. He said this move would stimulate the local economy and spur further development projects.

Despite these arguments, many residents expressed concerns about the appropriateness of such establishments on Main Street. They feared a potential increase in crime and the type of crowd an adult cabaret might attract.

Fey said the history of the area, once known for its red light district, is not an argument for SOBs, as some have accused him of claiming, but that “there is definitely an irony there.”

Donna Okray-Parman, Gilpin County resident, voiced her concerns during the public comment session, asking, “Why a strip club? If you want to have a fine dining experience, I understand, but I’m just curious – why a strip club?”

Eric Langan, a Central City resident, is in the business of strip clubs and other types of adult entertainment. He is CEO and president of RCI Hospitality Holdings, and spoke during public comment.

He asserted that an adult cabaret is the only viable option to draw tourists to Central City from the nearby gambling hub of Black Hawk. If approved, it would be the first SOB in any Colorado gambling district.

Background and Previous Meetings

At the May 21 Central City Council meeting, a large turnout of residents expressed strong opposition to SOBs within the city. Concerns included the potential negative effect on future development, increased crime rates, damage to Central City’s reputation, decreased property values, and strained law enforcement resources.

During that meeting, Ordinance Numbers 24-02 and 24-03, aimed at amending the Municipal Code regarding SOB locations and licensing, were tabled pending further legal guidance.

Fey emphasized the need for additional legal insight due to the significant implications of these ordinances, stating, “With the gravity of what we are discussing tonight, I have spoken with some council members, and we believe that we need some further legal guidance on what our full options are, where we stand in the matter. We are still going to let everyone speak tonight.”

Eric Langan, representing RCI, was the sole voice in favor of “Rick’s Cabaret,” planned for a location across from Annie Oakley’s on Main Street. He assured the Council that the establishment would operate exclusively from 8 p.m. to 4 a.m., Thursday through Sunday, with windows entirely blacked out to ensure no public visibility.

Langan’s initial plans included a casino at the location of 130 Main Street, but delays and obstacles in the gaming license process caused him to withdraw the application.

At a special meeting on June 13, Mayor Fey addressed concerns regarding his potential conflict of interest due to his association with RCI Hospitality. Fey operates a retail location in a building owned by RCI, where he pays sales percentage-based rent. He also confirmed taking a trip on the RCI private jet and attending an event in Texas with RCI officials.

During that meeting, some citizens suggested Fey should recuse himself from discussions, votes, and executive sessions on SOB regulations.

Fey stated, “It was brought up in a recent meeting that perhaps I should recuse myself from even these executive sessions that we are having in this regard, and my understanding from counsel is that there would not be any reason to [do so].”

Assistant City Attorney Erin King clarified, “Legally, a conflict of interest arises when there’s a financial gain. Here, we are talking about legislative changes, city-wide changes not affecting just one person.” Fey also emphasized that voting does not occur during executive sessions.

Tinucci indicated she might need to recuse herself due to her husband’s termination from RCI, suggesting both she and Fey recuse themselves when it comes time to vote.

Over the past several weeks, Fey has held meetings at the local Elks Lodge to hear residents’ concerns on the matter.

Gilpin County issued an RFP for an SOB Impact study and has granted a $50,000 contract to Paradigm Public Affairs LLC, to be completed by November of this year.

July 2 City Council Meeting

During the Public Forum session, Central City resident Zane Plsek read excerpts from a Denver Gazette article, where he quoted Langan during an interview: “They can’t stop me from opening. I’m going to open, we’ll just cover up. They can control the level of nudity but they can’t stop me.”

Resident Peter Droege, who serves on two city commissions, raised concerns about Fey’s conflict of interest, citing the Municipal Code and suggesting the council should also vote on Fey’s recusal. He said Fey’s recusal restores the people’s confidence in the City.

Several people spoke out against having SOBs on Main Street, and one spoke in favor, quoting RCI’s success nationwide. She said that Main Street would provide the necessary security and infrastructure to support such a business and that this is an opportunity for the town to tailor some compromise.

Eric Langan addressed the room, emphasizing his efforts to avoid a legal battle with the City, which he believes is not in anyone’s best interests.

He spoke of the deferred liability and infrastructure repairs that need to be addressed in Central City, asking where that funding will originate. He said that several years ago, a realtor and a previous City Council asked him if he could get a strip club here to help the financial situation.

He said he will put a package together for the Council’s next meeting, with letters of recommendation from various officials in the areas where RCI’s businesses operate. He offered to provide studies showing that property values have actually increased in these areas. He argued that crime statistics at other SOB locations in Denver were influenced by economic factors and homelessness.

The recent meeting saw both Fey and Tinucci recuse themselves from the Executive Session due to their connections with RCI. Fey said he had to recuse himself not because of an actual conflict of interest, but because of the public perception there is one.

“I am going to recuse myself [from the Executive Session] to avoid the appearance of a conflict,” he explained at the beginning of the meeting.

Fey said this will leave three council members, ensuring a quorum for future votes on the matter.

Tinucci recused herself from the Executive Session since her husband used to work with RCI and because she “is currently utilizing their space.”

The Council’s agenda featured routine items such as approving the Regular Bill Lists through June 25, ratifying Historic Preservation Grant Program recipients, and approving resolutions for special events like the Great Central City Beer Festival and the Night of Good Fortune.

New business items included a request for the Central City Promise program; and various appointments and resolutions, such as approving an intergovernmental agreement for reimbursement costs and amending a professional services agreement with Safebuilt Colorado, LLC.

Staff updates included congratulations to Fire Chief Gary Allen for receiving the 2024 CML (Colorado Municipal League) Sam Mamet Good Governance Award and a request from the Central City Opera for a right-of-way permit.

Division Chief Greg Demo informed everyone that Stage 1 Fire Restrictions are now in place.

County Commissioner Sandy Hollingsworth spoke during public comment and encouraged landowners to opt into the Colorado Natural Heritage Program, which seeks to conserve Colorado’s native ecosystems. She also thanked the City for the planned Joint Meeting between the County and its cities on July 16.

In his closing comments, Fey expressed his dedication to the community, stating, “I am a good man; I’m a good mayor. I’m not perfect. I can get better and I will get better through this. I am out there, and in here, working diligently and honestly, to do all that I can do to make this city wonderful. I love you all and I appreciate this opportunity to sit up here. I’ve got two and a half years left [as Mayor] and I’m committed to furthering the City in all ways.”

Tinucci and Fey recused themselves and the Council adjourned into Executive Session for legal advice on specific legal questions related to Section 16-8-106 and Section 16-8-502 of the Land Development Code.

The next regular meeting of the Central City Council is scheduled for July 16, 2024, at Central City Hall and online via Zoom. More information can be found on the City’s website: centralcity.colorado.gov/meetings.