Mayor Jeremy Fey opened the Central City Special Meeting on Thursday, June 13, addressing concerns from citizens regarding his potential conflict of interest in matters related to SOB (Sexually-Oriented Businesses) regulations due to his association with RCI Hospitality.

RCI Hospitality has purchased a property on Main Street with the intention of opening “Rick’s Cabaret.” The Mayor operates a retail location on Main Street in a building owned by RCI where he pays sales percentage-based rent. He also confirmed that he has taken a trip on the RCI private jet and attended an event in Texas with RCI officials.

At the last meeting, some citizens suggested he should recuse himself from these discussions and any executive sessions on the matter because of these circumstances.

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.

Mayor Pro-tem Kara Tinucci, who attended the meeting virtually, said she has been accused of things “in the paper,” and “now that it is public I might have to recuse myself because I could be against RCI, because of my husband Joseph’s termination. But I don’t think that is the meeting we are here for.”

She suggested both she and Fey recuse themselves when it comes time to vote.

King said the benefit of executive session is that it allows for a frank discussion under attorney-client privilege. Tinucci expressed her desire to ask questions during the executive session.

The attorney reiterated that since the discussion pertained to city-wide zoning regulations and not a specific application for RCI, it would not constitute a conflict of interest.

City Manager Daniel Miera assured the public that during the executive session, council members would not have the opportunity to persuade the attorney providing legal guidance.

King presented slides on current SOB regulations, standards of review for zoning regulations, and standards of review for licensing regulations.

She stated she would not address hypotheticals or provide an analysis of proposed changes.

Citing First Amendment protections as the reason for the discussion, King outlined the current provisions for SOBs in Central City, which include:

All SOB activity must occur indoors.

Businesses must verify age before customers enter and view any SOB activity or merchandise.

The interior of the business cannot be visible from the outside.

Businesses must be located more than 1,000 feet from other SOBs, residential dwellings and zone districts, schools, public parks, childcare centers, and places of assembly.

She pointed out that, as written, the distance requirements make it impossible for an SOB to open in Central City. She recommended amending the land development code to allow for SOBs somewhere in the city.

In evaluating the validity of an SOB zoning ordinance, courts review whether the ordinance is narrowly tailored to serve a substantial government interest and if it allows for reasonable alternative avenues of communication.

Alderman Todd Williams asked about regulating clothed dancing, which could include attire like pasties and a G-string. City Manager Miera suggested such questions be addressed during executive session. The attorney agreed, and the group then decided to move into executive session.

Williams so moved, saying, “Pursuant to C.R.S. § 24-6- 402(4)(b), for the discussion of specific legal questions with the City Attorney and City special counsel regarding sexually-oriented businesses, SOBs, and the regulation of SOBs in the City’s Land Development Code, and I further move to reconvene the June 13 Special Meeting at the conclusion of the Executive Session to adjourn the June 13 Special Meeting.”

The motion was approved unanimously, and the meeting ended at approximately 6 p.m.

The next regular meeting of the Central City Council is scheduled for July 2, 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.