MELBOURNE, Florida – Ending months of speculation, the owners of Sindarellaz have been stripped of their right to operate a dance cabaret with naked women showering on stage.

The owners now plan to convert their building in the Sarno Industrial Park into an adult arcade featuring video slot machines — to the dismay of some city officials.

Sindarellez — Melbourne’s only nude nightclub — faced possible suspension of its adult entertainment license amid police allegations of sexual battery, illegal alcohol consumption and incomplete personnel records. Instead, the club shut down last week.

“I’m glad. We’re a family business here, been here for 22 years,” said Les Thayer, owner of Top Quality Auto Repair next door. “I was against it from the start. I’ve probably lost several customers because of it. Our prayers are answered.”

Sindarellaz’ owners, Savas Tiram and Yuksel Oldac of Indian Harbour Beach, signed an agreement with City Manager Jack Schluckebier to permanently close the cabaret. Under terms of the five-page agreement, the duo will not operate another sexually oriented business within city limits.

The Sindarellaz property, which was “grandfathered” and is no longer zoned for strip clubs, will never again be a clothing-free establishment.

“The law has been enforced. They’ve seen their business isn’t quite as good as they hoped. And also, they’ve come to the correct deduction, and that’s Melbourne just isn’t a good place for this,” City Attorney Paul Gougelman said.

No one answered the phone this week at Sindarellaz.

Tiram and Oldac received a city-issued adult arcade license May 9.

Their corporation, Playpen of Brevard, signed a 15-year deal in October to lease the Washburn Road building, records show.

Adult video arcades, which offer a mild form of gambling, remain controversial across Florida.

Two arcades now operate within city limits: Starlight Palace and Double Diamonds.

The Melbourne City Council banned video slot machines in January 2004, but later rescinded that decision.

The machines allow patrons to win prizes and gift cards.

“I just don’t like seeing those types of establishments get a foothold in the community,” Vice Mayor Loretta Isenberg-Hand said. “It just opens the door to legalized gambling. I don’t approve of it.”

With the demise of Sindarellaz, Melbourne’s sole “adult entertainment” facility is Hot Flixx, an X-rated video and lingerie store on Sarno Road.