For the time it has been closed, they could have torn the building down, cleaned up the mess, built a new foundation and building brick by brick, re-wired and rebuilt the inside, new carpet and furniture.
Originally Posted by Wile E Coyote
Aside from the higher expense of a complete rebuild, this may also be a permitting issue. As far as I know, permits for adult oriented business are tied intimately to the real estate. If the real estate is sold, the permit is still valid for the new owner which is good because no one is issuing new permits anymore.
Not sure the permit remains valid if the build is demolished.