STATE OF ARIZONA

1 DEPARTMENT OF LIQUOR LICENSES AND CONTROL

2 In the Matter of Series #06 Spirituous
Liquor License No. 06100193 issued to:
3 CONSENT AGREEMENT AND
Dream Street Inc. ORDER
4 DBA Curves Cabaret
2130 North Oracle Road
5 Tucson, AZ 85705
Michael Gordon Pavon, Licensee
6
Respondent
7
8
9 In the interest of a prompt and judicious settlement of this case, Dream Street Inc.

10 dba “Curves Cabaret” (“Curves Cabaret” or “Licensee”), holder of bar spirituous liquor

11 license number 06100193, consents to the entry of this Order, and the Arizona Department

12 of Liquor Licenses and Control (the “Department”), with the consent and approval of the

13 Arizona Department of Health Services (“ADHS”), enters the following Findings of Fact,

14 Conclusions of Law, Recitals, and Order (collectively, the “Agreement”).

15 I. FINDINGS OF FACT

16 1. The Department regulates the sale of spirituous liquor in the State of Arizona

17 under the authority granted to it in A.R.S. § 4-101 et seq.

18 2. Curves Cabaret is located at 2130 North Oracle Road, Tucson, AZ 85705,

19 has the Licensee Michael Gordon Pavon and holds bar liquor license number 06100193

20 that the Department issued.

21 3. Governor Ducey has issued Executive Orders 2020-09, -36, -40, -43, -47,

22 and -52 that required social distancing measures for bars and restaurants.

23 4. Executive Orders No. 2020-36 and -40 commanded that business should

24 develop and implement policies based on Centers for Disease Control and Preventio n

25 (“CDC”) and ADHS guidelines to mitigate the spread of COVID 19, including ensuring

26 physical distancing and limiting the congregation of groups of no more than 10 persons

Active/52287718.2
 1 when feasible and in relation to the size of the location.
2 5. Executive Order 2020-47 requires restaurants to limit their capacity to less
3 than 50% of the Fire Department’s Occupancy load certificate.
4 6. On June 20, 2020, the Mayor of the City of Tucson issued a city- wide
5 proclamation that reads in part “effective on June 20, 2020, at 06:00 AM, and continuing
6 thereafter until this Proclamation and its Orders are rescinded, terminated or modified,
7 every person within the jurisdiction of the City of Tucson who is two (2) years of age or
8 older is required to cover his or her nose and mouth with a Face Covering when in a Public
9 Setting where continuous Physical Distancing is difficult or impossible.”
10 7. On June 19, 2020, the Pima County Board of Supervisors enacted a county-
11 wide ordinance requiring that facial coverings be worn in Pima County when proper social
12 distancing could not be maintained.
13 8. On August 10, 2020, the Director of ADHS issued Emergency Measure
14 2020-02, which is on file at https://www.azdhs.gov/preparedness/epidemiology-diseas e-
15 control/infectious-disease-epidemiology/index.php#novel-coronavirus-admin-orders, and
16 which established a phased re-opening process.
17 9. On August 10, 2020, ADHS issued guidance for bars, nightclubs, and
18 restaurants and an attestation process for businesses to reopen, depending on their
19 circumstances. This guidance applies to Curves Cabaret’s premises and prohibits dancing,
20 parlor games, karaoke, and open seating, and requires that patrons stay seated througho ut
21 the duration of their visit, except to enter or exit the club, visit the bathroom, tip the stage
22 dancer in the bucket on the stage or walk to and immediately sit down at the designa ted,
23 six-foot social distance table dance area.
24 10. This guidance is published in a document entitled Requirements for
25 Restaurants and Bars Providing Dine-In Services (“Requirements”), a copy of which is
26 attached to this Agreement as Exhibit 1.

2
Active/52287718.2
 1 11. Pursuant to Emergency Measure 2020-02 and prior to reopening, an affected
2 business is required to complete an Attestation, implement and abide by ADHS-specified
3 mitigation Requirements, and post a copy of the Attestation and Requirements in a
4 prominent place on or near the main entry into the business.
5 12. Pursuant to Emergency Measure 2020-02, law enforcement, any regulato r y
6 agency pursuant to their regulatory authority, ADHS, and local health departments may
7 take immediate action against any entity that operates in violation of its Attestation or the
8 applicable Requirements.
9 13. On August 27, 2020, the Licensee submitted its Attestation that it would
10 follow the ADHS Guidance.
11 14. As required by ADHS Guidance, Licensee adopted operational procedures in
12 compliance with the Requirements and trained its employees to enforce these procedures.
13 15. However, on September 09, 2020, at approximately 1618 hours, on or about

14 the licensed premises, Arizona Department of Liquor Licenses and Control detectives
15 observed that Licensee’s employees failed to prevent one patron from dancing near the
16 tables or in the middle of the establishment to live music from a DJ, a few patrons from
17 walking about the establishment, standing, congregating and mingling around the bar, not
18 maintaining at least six feet of space between each other to properly social distance, and
19 not wearing masks. In addition, the entertainers provided one-on-one lap dances for
20 patrons, that included skin-to-skin contact. The doorman also told the detectives upon
21 entry that patrons and dancers must wear face masks, but if a patron wanted a VIP dance,
22 then it was up to the dancer and patron if they chose not to wear one.
23 16. The Department ordered the Licensee to suspend liquor operations on
24 September 9 and issued a summary suspension order on September 9, 2020.
25 17. On or about September 10, 2020, ADHS issued a Closure Notice for Curves
26 Cabaret’s alleged violation of its Attestation and the applicable Requirements.

3
Active/52287718.2
 1 18. Curves Cabaret requested an Informal Settlement Conference (“ISC”), which
2 was conducted on September 23, 2020, and during which the parties reached tentative
3 agreement on the terms and conditions under which Curves Cabaret may re-open its
4 business.
5 II. CONCLUSIONS OF LAW
6 1. The conduct and circumstances described above constitute a violation of
7 A.R.S. § 4-210(A)(9) (The licensee or controlling person violates or fails to comply with
8 this title, and rule adopted pursuant to this title or any liquor law of this state or any other
9 state ).
10 III. RECITALS
11 1. Effective Date. This Agreement is effective on the date that it is signed by
12 the Department and ADHS (“Effective Date”).
13 2. Limited Use. This Agreement is made solely for the final disposition of the

14 matters addressed herein, and any related administrative proceedings or civil litigatio n
15 involving the Department or ADHS and Curves Cabaret. This Agreement is not to be used
16 for any other regulatory agency proceedings, or civil or criminal proceedings, whether in
17 the State of Arizona or any other state or federal court, except related to the enforceme nt
18 of the Agreement itself.
19 3. Future Actions. Curves Cabaret acknowledges and agrees that the
20 acceptance of this Agreement by the Department and ADHS is solely to settle this
21 Department matter and does not preclude the Department or ADHS from instituting other
22 proceedings as may be appropriate now or in the future based on other or additional acts or
23 omissions not described in this Agreement.
24 Furthermore, and notwithstanding any language in this Agreement, this Agreement
25 does not preclude in any way any other state agency or officer or political subdivision of
26 this state from instituting proceedings, investigating claims, or taking legal action as may

4
Active/52287718.2
 1 be appropriate now or in the future relating to this matter or other matters concerning
2 Curves Cabaret, including but not limited to violations of Arizona’s Consumer Fraud Act.
3 Curves Cabaret acknowledges that, other than with respect to the Department and ADHS,
4 this Agreement makes no representations, implied or otherwise, about the views or
5 intended actions of any other state agency or officer or political subdivision of the state
6 relating to this matter or other matters concerning Curves Cabaret.
7 The Department and ADHS may consider this Agreement in any future disciplina r y
8 or licensing investigation, and Curves Cabaret agrees that it will not assert as a defense that
9 consideration of this Agreement constitutes bias, prejudice, prejudgment, or any other
10 similar defense.
11 4. Entire Agreement. The parties have read this Agreement in its entirety,
12 have had an opportunity to consult with counsel of their own choice, are satisfied that they
13 understand and agree to all of its provisions, and freely sign the Agreement without
14 coercion. Curves Cabaret warrants that the undersigned has the authority to sign this
15 Agreement for Curves Cabaret and to bind Curves Cabaret to each of the terms of this
16 Agreement.
17 This Agreement constitutes the entire agreement between Curves Cabaret and the
18 Department and ADHS relating to the matters set forth herein, whether written or oral. The
19 parties do not have any other representations, warranties, or agreements that are not
20 contained or referenced in this Agreement.
21 5. Public Record. This Agreement is a public record as defined in A.R.S. § 41-
22 151.18.
23 6. Counterparts. This Agreement may be executed in counterparts, each of
24 which will, when executed, be deemed an original and all of which will be deemed to be
25 one and the same instrument. Curves Cabaret and the Department and ADHS agree that
26 an electronic transmission of the signed Agreement will have the same force and effect as

5
Active/52287718.2
 1 Emergency Measure 2020-02 (or any subsequent Executive Order or Emergency Measure
2 that limits its operations).
3 b. Curves Cabaret shall at all times comply with its Attestation previously filed
4 with ADHS.
5 c. Curves Cabaret shall at all times comply with the Requirements attached to
6 this Agreement as Exhibit 1, as they may be amended from time-to-time.
7 2. Occupancy Limits.
8 Curves Cabaret shall at all times limit its occupancy to no more than the number of
9 persons authorized by Executive Order or the Requirements, as they may be amended from

10 time-to time. As of the date of this Agreement, that limit is (not including on-duty
11 employees) 50% of the fire code occupancy load. To ensure compliance with this Order,
12 Curves Cabaret shall do the following:
13 a. Monitor its current occupancy on an hourly basis and prepare a daily

14 log that lists the employee(s) responsible for tracking occupancy, the time of the count, and
15 the number of non-employee occupants.
16 b. Curves Cabaret shall electronically transmit the log to ADHS on a
17 daily basis. ADHS shall give notice to the email address in Curves Cabaret’s Attestatio n
18 of the email address to which the report should be sent.
19 3. Social Distancing/Elimination of Standing Room/Mask Wearing.
20 a. Before reopening, Curves Cabaret shall ensure that its premises
21 complies with all table-distancing requirements and the requirement to eliminate indoor
22 standing room where patrons can congregate.
23 b. Curves Cabaret shall not permit patrons to remain standing while
24 ordering or consuming any food or drinks. Customers must remain seated while ordering
25 or consuming any food or drinks. This restriction does not apply to customers who remain
26 standing outside of the Curves Cabaret licensed premises for the purpose of ordering or

7
Active/52287718.2
 1 picking up carry out or delivery orders.
2 c. Curves Cabaret shall not permit patrons to stand for the purpose of
3 dancing, whether alone or in groups of two or more persons. Employees or contractors
4 may dance on the stage provided they are wearing masks at all times and maintain at least
5 six feet of physical distancing from one another and from patrons.
6 d. Curves Cabaret shall not permit any employees or contractors to
7 perform table dancing for its patrons unless they are wearing masks at all times and
8 maintain at least six feet of physical distancing from patrons. Employees or contractors
9 may briefly approach within six feet or sit adjacent to patrons to take orders, settle financ ia l

10 transactions, or discuss the provision of table dances, so long as they wear a mask at all
11 times and do not engage in any physical contact with the patron.
12 e. To comply with Guidance applicable to bars with dine-in service,
13 Curves Cabaret shall require all patrons and employees to wear masks at all times unless

14 they are consuming food or drinks and shall be responsible to enforce this requirement.
15 4. Hours of Operation.
16 For a period of one week after the effective date of this Agreement, Curves Cabaret
17 shall close its premises to the public every day at or before 10:00 p.m. (MST – Arizona).
18 After one week, if ADHS and the Department have not determined that Curves Cabaret
19 has violated this Agreement, Curves Cabaret may extend its closing time to 12:00 a.m.
20 (MST – Arizona). After the second three-week period, if ADHS and the Department have
21 not determined that Curves Cabaret has violated this Agreement, Curves Cabaret may
22 operate without any restriction to its lawful hours of operation under this Agreement.
23 If after the Effective Date of this Agreement, the Governor issues any Executive
24 Order or if ADHS issues any guidelines that would apply to Curves Cabaret’s premises
25 and would limit its hours of operation, Curve Cabaret shall comply with the requireme nts
26 of such Executive Order or guidelines.

8
Active/52287718.2
EXHIBIT 1
Requirements for Restaurants and
Bars Providing Dine-In Services
August 10, 2020
 Benchmarks
There are two key components to resuming business operations. First is the quality of the establishment’s
implementation of COVID-19 mitigation strategies. This plan outlines mitigation strategies tailored for specific types of
business operations. Business must attest to their implementation of these strategies prior to operating. The second
is the level of spread occurring in the community. The Centers for Disease Control and Prevention (CDC) defines
community spread as follows:

Minimal Community Spread: Evidence of isolated cases or limited community transmission, case
investigations underway; no evidence of exposure in large communal setting.

Moderate Community Spread: Sustained transmission with high likelihood or confirmed exposure within
communal settings and potential for rapid increase in cases.

Substantial Community Spread: Large scale, controlled community transmission, including communal
settings (e.g., schools, workplaces).

ADHS further defines community spread levels with the thresholds outlined below. These thresholds are consistent
with the national standards set by the Coronavirus Task Force.

Benchmarks Minimal Moderate Substantial

Cases <10 cases/100,000 10-100 cases/100,000 >100 cases/100,000

Percent Positivity <5% 5-10% ≥10%

Covid Like Illness <5% 5-10% >10%

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 2

Understanding the Benchmarks

Cases Percent Positivity COVID-like Illness

Benchmark: Two weeks below 100 cases Benchmark: Two weeks with percent Benchmark: Two weeks with hospital visits
per 100,000 positivity below 10% due to COVID-like illness below 10%

Data Source: ADHS MEDSIS Confirmed

and Probable Cases
Available by: County
Data Source: ADHS Electronic Laboratory Data Source: BioSense Syndromic
Data Surveillance Platform

Available by: County Available by: BioSense Region

• Northern: Apache, Coconino, Navajo,
Yavapai Counties
• Central: Gila, Maricopa, Pinal
Counties
• Southeastern: Cochise, Graham,
Greenlee, Pima, Santa Cruz Counties
• Western: La Paz, Mohave, Yuma
Counties

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 3

 Requirements for Bars and Nightclubs Providing
Dine-In Services
ADHS Requirements for Bars and Nightclubs Providing Dine-In Services
Bars and Nightclubs Providing Dine-In Services

Hand
Community Prohibit Physical Communal
Hygiene & Enhanced Proper Symptom
Spread Occupancy open Distancing Masks Spaces
Respiratory Cleaning Ventilation Screening
Level seating (6 feet) Closed
Etiquette

50% occupancy,
only if converted to
restaurant service until
< 3% positivity.
Minimal x x x x x x x x
Once < 3% positivity,
50% occupancy
operating as a bar.

50% only if converted

Moderate x x x x x x x x
to restaurant service.

Substantial Closed N/A N/A N/A N/A N/A N/A N/A N/A

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 4

 Per the Centers for Disease Control and Prevention (CDC) guidance, under all circumstances, the following
precautions must be taken by people visiting restaurants and bars providing dine-in services:

Stay home if you are sick.

Protect yourself while visiting restaurants and bars providing dine-in services:
• Arizonans are safer at home and should evaluate their personal risk of visiting a restaurant or bar
providing dine-in services based on the Arizona COVID-19 Risk Index.
• Avoid close contact and stay more than 6 feet away from others.
• You are required to wear a mask while at the establishment at all times, except while actively eating or
drinking.
- Masks should not be placed on children less than 2 years of age, anyone who has trouble
breathing, or is unconscious, incapacitated or otherwise unable to remove the cover
without assistance.
• Wash your hands often, especially after leaving the establishment, with soap and water for at least 20
seconds. If soap and water are not available, use an alcohol-based hand sanitizer that contains at least
60% alcohol.
• Avoid touching your eyes, nose, and mouth with unwashed hands.
• Cover your cough or sneeze with a tissue or your sleeve (not your hands) and immediately throw the
tissue in the trash.
• If possible, use touchless payment methods. If you must handle money, a card, or use a keypad, use hand
sanitizer or wash your hands immediately after.
• If you are at higher risk for severe illness, you should avoid visiting restaurants and bars providing dine-
in services. People at higher risk for severe illness include adults 65 or older and people of any age who
have serious underlying medical conditions.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 5

 The Arizona Department of Health Services requires the following additional steps
be taken by restaurants and bars providing dine-in services and providers shall take
measures to ensure that employees and guests follow these guidelines:

Comply with all local, state, and federal laws pertaining to restaurants and bars, including the food code.

Implement occupancy limitations as required based on the community transmission category within the county your
establishment operates.
• Substantial: closed unless special dispensation received from ADHS
• Moderate: Operate at 50% occupancy, only if converted to restaurant service
• Minimal:
- Operate at 50% occupancy, only if converted to restaurant service until 3% positivity
- Once <3% positivity, bars may resume operation at 50% occupancy, following the ADHS Requirements for
Bars and Nightclubs Not Operating as a Restaurant

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 6

 Enforce physical distancing of more than 6 feet between customers who do not live in the same household.
• Maintain physical distancing by ensuring more than 6 feet of separation between parties or groups at
different tables, booths or bar tops, unless the tables are separated by glass, plexiglass or some other
type of divider.
• Limit parties to no more than 10.
- Clearly mark tables and chairs that are not in use.
• Prohibit open seating (defined as a customer choosing their own seat or having the ability to move seats).
- Customers should be brought to a designated seating area (including bar top seating) by a staff
member.
- Patrons should stay seated throughout the duration of their visit, except to visit the bathroom, and
may not be standing, mingling, or dancing.
• Maintain clearly marked 6-foot spacing marks and/or signage along entrances, waiting areas, hallways,
patios, and restrooms and any other location within an establishment where queues may form or patrons
may congregate.
- Assign an employee to monitor and enforce physical distancing in any locations where queues may
form or patrons may congregate, if feasible.
• Customer Waiting Areas – Areas used by customers waiting for their seats should be limited to ensure
10sq ft exists for each person waiting. Additional customers should be instructed to wait outside or in
their cars until their seats are ready. Customers waiting for a table must be wearing masks (unless they
have a qualified medical exemption or are under two years of age).

Enforce the use of masks for both employees and customers, even if not mandated by the local or county
government.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 7

 Prohibit the following activities:
• Dancing – Dancing is temporarily prohibited and anyone with a dance floor or dance space must close
that section to the public or repurpose it for seating to allow for greater social distancing.
• Parlor games – Parlor games (such as pool, darts, or other games commonly associated with eating and
drinking establishments) shall temporarily be closed.
• Karaoke – Karaoke or other live performances in which customers are active participants shall be
temporarily halted.

Continue to provide options for delivery, pick-up, or curbside service even if a location offers dine-in.

Follow CDC reopening guidance for facilities that have been shut down, including taking measures to ensure potable
water safety.

Enforce healthy hygiene practices for both employees and customers:

• Enforce handwashing, covering coughs and sneezes.
• Ensure adequate supplies to support healthy hygiene practices for both employees and customers
including soap, hand sanitizer with at least 60 percent alcohol (perhaps on every table and counter, if
supplies allow), and tissues.
• Ensure hand sanitizer is available at or adjacent to entrances to the facility, restrooms and in employee
work areas, or soap and running water readily accessible to staff and customers at marked locations.

Post physical and/or electronic signage at the entrance of public health advisories prohibiting individuals who are
symptomatic from entering the premises.

Post signs on how to stop the spread of COVID-19, properly wash hands, promote everyday protective measures,
and properly wear a mask.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 8

 Increase ventilation, if possible, and ensure that ventilation systems of indoor spaces operate properly.
• Increase the circulation of outdoor air as much as possible by opening windows and doors, using fans, or
other methods.

Intensify cleaning, disinfection, and ventilation practices.

• Wash, rinse, and sanitize food contact surfaces, food preparation surfaces, and beverage equipment after
use.

Implement comprehensive sanitation protocols, including increased sanitation schedules for bathrooms.
Sanitize customer areas after each sitting with EPA-registered disinfectant, including but not limited to:
• Tables
• Bar tops and counters
• Tablecloths
• Chairs/booth seats
• Any other surface or item a customer or staff is likely to have touched

Eliminate instances where customers serve their own food, including salad bars and buffets.

Avoid using or sharing items such as menus, condiments, and any other food. Instead, use disposable or digital
menus, single-serving condiments, and no-touch trash cans and doors.

Wipe any touchpads between each use.

Wipe any pens, counters, or hard surfaces between use or customer.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 9

 The Arizona Department of Health Services requires, under all circumstances,
the following additional steps be taken for staff:

Require sick employees to stay home and not return to work until they have met criteria to return to work.
• Employees who appear to have symptoms or who become ill while at work should immediately be
separated from others and sent home.
• Document and communicate sick leave policies to employees and staff.
Implement flexible sick leave policies that permit adherence to public health isolation and quarantine guidance.

Masks and frequent handwashing are required for all employees.

• Develop standards for the use of masks by employees at all times.
• Develop and enforce handwashing policy for servers as it exists in the Food Code.

Implement symptom screening for employees prior to the start of their shift.
• Conduct wellness/symptom checks, including temperature checks for all personnel, at the door and
before the opening of the establishment.

Assign duties to vulnerable workers that minimize their contact with customers and other employees.

Train all employees on appropriate cleaning and disinfection, hand hygiene, and respiratory etiquette.

Ensure that all employees are notified of new facility rules and any changes in rules.

Ensure that employees maintain more than 6 feet of separation from other individuals, when possible.

Provide appropriate personal protective equipment (PPE) for employees in accordance with public health
recommendations.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 10

 Provide adequate supplies in employee workspaces to support healthy hygiene behaviors, including soap, hand
sanitizer with at least 60% alcohol, disinfecting wipes, tissues, and no-touch trash cans.

Train all employees in the above safety actions.

See Department of Labor and Occupational Safety and Health Administration (OSHA) COVID-19 guidance for
employers and workers.

The list of EPA-approved disinfectant products for emerging viral pathogens expected to be effective against COVID-19
can be accessed here.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 11

 For additional guidance on cleaning, visit CDC’s Cleaning and Disinfecting
Your Facility page and CDC’s Reopening Guidance for Cleaning and
Disinfecting Public Spaces, Workplaces, Businesses, Schools, and Homes.

For COVID-19 questions, please call the Arizona COVID-19

Hotline at: 1-844-542-8201
Businesses impacted by E.O. 2020-43 and 2020-52 are required to complete an attestation prior to resuming
operations. Approval for resuming operations is dependent upon community transmission within the county the
establishment is physically located and the establishment’s implementation of ADHS required mitigation steps.
Further information can be found in the ADHS COVID-19 Guidance for Businesses.

Any business affected by these provisions may request an informal settlement conference to dispute their
categorization on reopening. A denial after an informal settlement conference becomes a final agency action
that is appealable to the Office of Administrative Hearings.

For more information on Arizona’s response to COVID-19, please visit: azhealth.gov/COVID19.

8.10.2020 | Requirement for Bars and Nightclubs Providing Dine-In Services 12