AP

Dallas police said this is the toughest penalty enacted against a sexually-oriented business.

DALLAS - The Penthouse Key Club, a popular adult entertainment spot in the Stemmons Corridor, will shut its doors for five months beginning Feb. 26.

This was part of a settlement announced Tuesday between the club’s owners and the city of Dallas. Dallas police revoked the club's sexually-oriented business license late last year.

While the club appealed to a federal court, the business agreed to shut its doors for 150 days. In return, the police will rescind the revocation of the license.

"That being shut down for quite a length of time is going to cost a lot of money," said Steve Salazar, the Council's Public Safety Committee chair.

Dallas police said while this is the toughest penalty placed against a sexually-oriented business (SOB), they also said the case was the most flagrant case of its kind.

Following a 10 month investigation, vice officers filed 32 prostitution cases against female dancers inside. Officers said the bargaining between strippers and patrons went on in the open.

"It was very much out in the open," said Lt. Christine Smith. "The girls were not afraid to discuss this right out in the middle of this place of business."

Constitutionally, a city cannot ban sexually-oriented businesses, but within reason, it can limit location and ensure that activity inside is legal.

The city attorney is considering new laws to make sure that the legal part is definitely followed. One option for the city is to make strippers register directly with the city and mandate a six-foot distance between dancer and patron.

"Having a buffer between the patrons and the entertainers would cut down on the contact between the two," Lt. Smith said.

Other proposals may also be considered, which include allowing legal SOBs to remain open, but create more tools to shut the illegal ones down.

E-mail cheinbaugh@wfaa.com