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Cheerleaders Gentlemen's Club Buys Liquor License for Gloucester City Site |




GLOUCESTER CITY NJ-Gloucester City Council recently approved the liquor license

Cheerleaders Logo, website

transfer between the owners of Rice Brothers trading as Oh! Hara’s Bar, North King Street and MAG Entertainment trading as Cheerleaders Gentlemen's Club, 54 Crescent Blvd. Oh! Hara’s went out of business and Cheerleaders had lost its liquor license after a patron leaving the bar killed two people in a fatal auto accident in 2000 on Rt. 130.  

Besides Gloucester City Cheerleaders has clubs in Philadelphia and Pittsburg.  



 City Solicitor John Kearney was asked via an E-mail why council didn’t object to the transfer because of that accident?


“The ABC approves these matters and the City does not have good cause under the law to not approve the transfer. The prior owner of the license (Oh! Hara’s) sold it to MAG Entertainment, a corporate entity which had served its sentence of being prohibited from holding a liquor license for five years. City Council had no basis to not sign off on the transfer.”


Asked if the City could have blocked the sale if the governing body had good cause Kearney said. “Past bad behavior can be a reason but in this case the ABC has already punished MAG for the horrendous death case so that could not be a basis and the operation out there in the last six years has been very peaceful in terms of police involvement so there is no reason for Council to say no.”


When asked if he knew how much the liquor license sold for Kearney said, “I think this went for $30K but I am not sure. And if this was a private sale we may not know.” 


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The state Division of Alcoholic Beverage Control (ABC) revoked MAG’s  license following a horrific traffic accident involving a patron of Cheerleaders, Humberto Herrera-Salas. The owners appealed the ABC’s decision. In November 2008 the appellate court agreed that the bar served alcohol to Herrera-Salas, even though he was intoxicated.


According to court documents on April 15, 2000, Herrera-Salas was ejected from the bar and drove south in the northbound lanes of Route 130, crashing head-on into another car.

Robert, 42, and Patricia Reed, 40, of Gloucester City were killed and two other people in their car were seriously injured.

Herrera-Salas was sentenced to 22 years in prison.

In February 2010 MAG owners appeared before the City Zoning/Planning Board asking for approval to use the property for an Adult Entertainment Club. The Board denied the petition on the basis the request was changing the nature of the property’s use.

The corporation sued the city and its planning/zoning board in federal court, asserting efforts to close the business was unconstitutional. In March 2010 U.S. District Judge Robert Kugler granted a temporary injunction sought for the club allowing it to stay open.


In 2011 the Court ruled the City Planning Board violated the owner’s First Amendment rights in March 2010 when it refused their request to operate an adult entertainment club at the site. The owner was also granted $159,000 in attorney fees by the judge. 


The City appealed the court’s ruling. 


In August 2011 the Court ruled in favor of MAG. As a result MAG will pay no real estate taxes to the City of Gloucester City for nine years.  The settlement also called for the City to pay $35,000 to MAG entertainment who operated the nude dance club.  Records show the Club pays $16,400 annually in property taxes. The total value of the settlement is estimated at more than $180,000. The club owners could have made the City pay it’s $157,000 legal fees. By giving the Club the nine year tax break the City avoided having to make a lump sum payment to the owners.


The arrangement called for MAG entertainment to upgrade the Route 130 property, adding a deck and exterior improvements. They must also erect a fence as a buffer between its site and nearby homes. 


MAG’s property is located next to Chatham Square Apartments, Rt. 130 and Klemm Avenue, a complex the city purchased for $4.2 million in 2007. The City is trying to redevelop the apartments, now known as Meadowbrook Mews, into townhouses. So far the City hasn’t been able to sell even one property.  In 2011 the prices for the new townhouses ranged from $167,000 to $195,000. Today the selling price for the same townhouses range between $137,000 to $197,400. See for more information.


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