As of Wednesday evening, Rick's Cabaret International, owner of the 25,000-square-foot XTC at 8550 N. Stemmons, did not hold a valid certificate of occupancy and can't open the club's doors as planned, city officials said.
"Without a certificate of occupancy, they do not have the legal right to operate," Dallas spokesman Frank Librio said.
After bragging earlier in the week that their club would be bigger than its largest competitor by some 10,000 square feet, Rick's officials appeared to be caught off guard when contacted Wednesday about the failed inspections.
"We are working with the city to resolve the issue. We believe we'll have it resolved shortly," XTC spokesman Allan Priaulx wrote in an e-mail Wednesday.
In an interview, Priaulx said XTC did have a valid certificate of occupancy hanging on the wall at XTC.
But that certificate was for Rick's Cabaret, the previous business operated at that location by Rick's Cabaret International, city officials said.
It isn't a valid certificate for XTC.
Priaulx did not respond to specific questions about XTC's progress in addressing a long list of problems identified by city inspectors.
The city inspected the XTC building Jan. 7, and it failed in a number of areas, passing only its mechanical inspection.
City inspection reports listed problems that included a door that didn't open and close properly, missing plates on ceiling sprinklers, a disconnected drain in the kitchen, a broken drain in an ice bin, and broken seals on outdoor lights.
City building officials said that as of close of business Wednesday, the club's operators had not requested a reinspection.
The club must request a reinspection before city inspectors will schedule a time to return to the property.
It was unclear whether club operators would seek the reinspection today, and if so, whether the city would be able to complete it in time for the planned opening.
City officials said they do not know whether the club has moved to fix the problems outlined in the inspection reports or how long it would take the club to repair those problems.
But all of the problems must be fixed before a certificate of occupancy is issued and the club can open, Dallas building official Zaida Basora said.
The building has long been a location for strip clubs, or gentlemen's clubs as they are called by the industry, for a series of operators.
Rick's Cabaret purchased the site last April for $10 million and has operated it since.
The XTC Cabaret will remain under the management of Rick's Cabaret, but the business model will change.
Dancers at XTC will be entirely nude, and the club will not sell alcohol.
But patrons may bring their own drinks to the club.
The club will charge a cover to enter, and a price for glasses and ice, among other costs.
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