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IN BUSINESS CITY COUNCIL IS CRAZY HORSE QUID PRO QUO A DONATION OR BRIBE? By Joe Schoenmann staff writer A Nevada ethics watchdog group lik- ened an expected $1.46 million donation to Las Vegas to a "public bribe" after learn- ing new owners of the shuttered Crazy Horse Too strip club said they would give the city that much money for a permit. The new owners of the property at 2466 Industrial Road needed City Council ap- proval to reopen the building as a strip club because the permit for the previous strip club had lapsed. A May 15 letter from an attorney repre- senting Canico Capital Group LLC, which is owned by nine investors, said the city would get the money if Canico received a special use permit. "My clients have specifically agreed to fund an escrow account with $1.461 mil- lion (the fine amount) on or before the 1st of June," the attorney wrote. "These funds will be released to the City of Las Vegas upon issuance of the special use permit on the subject parcel." The attorney was referencing a city fine Martin Dean Dupalo, president of the Nevada Center for Public Ethics, replied, "Where do I begin?" "I think it's more of a public bribe," Du- palo said. "When you see that verbiage in the let- ter," he added, "that we'll pay ... so we can have this permit, I think it's just unfortu- nate and a very, very poor agreement. It is financial interests that are speaking more loudly than safety or the public in- terest. I think we have enough strip clubs that we don't need another one." DOORS REOPENING:: The Crazy Horse Too club will be allowed to reopen as a sexually oriented business, thanks to a text amendment passed by the Las Vegas City Council this month. against the strip club's former owner, Rick Rizzolo. In 2006, Rizzolo pleaded guilty to felony tax crimes and served 10 months in prison. The U.S. Marshals Ser- vice assumed ownership of Crazy Horse Las Vegas' No.1 Business Resource Has Never Been More Important. STEVE MARCUS (2007) Councilman Bob Coffin said the agree- ment was "something beyond my control" and began more than a year ago under a different city administration. "This was a promise made to (former Mayor) Oscar Goodman," Coffin said of the donation. Goodman could not be reached for Too in 2007 as part of a plea agreement with Rizzolo. Canico bought the club in 2011 for $3 million. Asked about the letter and subsequent approval June 20 by the City Council, comment. Coffin added he would rather the city receive no money and that if any money is SEE CRAZY HORSE TOO PAGE 12 Get your one-year subscription to and we'll include our best leads via email. All for only $50 a year. For additional information call 800.254.2610 or email subscriptions@gmgvegas.com VEGASINC.COM/SUBSCRIBE | 2 JULY 2012 | 11 20120702_VI11_F.indd 11 6/28/12 2:04:41 PM