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Federal Prosecutor Argues to Keep Crazy Horse Too Liquor, Nude Dance Permits

Loss of strippers, alcohol could lower property value by $20 million
Federal Prosecutor Argues to Keep Crazy Horse Too Liquor, Nude Dance Permits
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Jun 24, 2008 2:00 PM PDT    Text size: 
LAS VEGAS — A federal prosecutor asked U.S. District Judge Philip Pro to keep special use permits that permit alcohol sales and exotic dancing at the shuttered Crazy Horse Too club in order to help keep the price stable for an eventual sale.

The federal government took over the property in August after owner Rick Rizzolo failed to find a buyer. Rizzolo pleaded guilty to tax evasion charges in 2006 and his plea agreement called for him to serve a one-year prison sentence and sell the club, using the proceeds to pay Kirk Henry $10 million from the sale. Henry was left paralyzed after he was beaten by club employees after arguing about his drink tab in 2001.

Assistant U.S. Attorney Eric Johnson urged Pro to intervene after a city ordinance was imposed that could devalue the club by rescinding special use permits that allow exotic dancing and liquor. The club opened before current zoning laws were adopted but was allowed to continue operating.

Johnson argued that the value of the club would plummet from between $32 million-$35 million to between $8 million-$10 million without the special permits, which are scheduled to expire June 30.

Pro said he would announce his decision by the end of the week.

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