The Dead Goat Saloon has won two rounds in its ongoing battle with Salt Lake City and The Church of Jesus Christ of Latter-day Saints, but the dispute over the downtown strip club is still not finished.

Third District Judge Denise Lindberg ruled this week in favor of the club on two significant points in a civil lawsuit filed two years ago. An attorney for the church said it plans to appeal.

Property Reserve Inc., the real estate arm of the LDS Church, had argued that the club, which features seminude dancing, was in violation of a city ordinance that forbids a sexually oriented business (SOB) from operating within 165 feet of a gateway corridor, presumably to shield passers-by from sexually oriented activities.

However, the judge didn't accept that argument. Exotic dancing at the Dead Goat takes place on a lower level, and Lindberg said in her 29-page opinion that the "mere presence of some portion of an SOB inside the 165' line does not conclusively establish a violation of the setback requirement."

Lindberg continued: "The court believes it is reasonable to conclude that when a proposed SOB occupies physical space at various elevations (i.e., underground, ground-level and/or above ground-level), it is only those portions that are located at- or above-ground level that are likely to create the kinds of effects that the setback is designed to mitigate."

Property Reserve also had argued that Salt Lake City should not have granted the license because the City Council had approved a temporary ordinance forbidding sexually oriented businesses downtown before the Dead Goat got its license.

However, the new temporary law was approved after the Dead Goat had applied for a SOB license, and Lindberg concluded the city was correct in granting the license.

Still to be decided — most likely by a jury — are other questions raised by the church and city, including their contentions that the strip club is a nuisance.

"If we are, in fact, (operating) within the city ordinances, the next logical step is we're not a nuisance. I'll give you a 98 percent (chance) this is over and we win," predicted Andrew McCullough, an attorney for the Dead Goat.

Property Reserve has argued the club's presence will harm its efforts to redo a nearby major section of the downtown, including Crossroads Plaza and the ZCMI Center mall.

"We respectfully disagree with some of the court's rulings, and at the appropriate time, we intend to appeal," said Alan Sullivan, attorney for Property Reserve. "We continue to believe the operation of a sexually oriented business at that location is unlawful."

---

Contributing: Associated Press

E-mail: lindat@desnews.com