To save its business, the embattled Club Majestic will drop DJ hip-hop music that has attracted big, sometimes violent crowds to King Street.

In exchange, the city will drop recent capacity and other restrictions so the club can still offer live music, including hip-hop, theater and movies, which have not led to problems.

As part of the agreement, the club will not offer any DJ music.

"The personality of the club is going to change," said attorney Victor Arellano, who represents the owners, the Schiavo family.

The Schiavos had listed the club for sale at $1.6 million amid disputes with the city and neighbors over spates of bar time violence -- fights, gunshots, a stabbing -- that required special city security measures in the late summer.

But the family, which blamed problems on a few "bad apples," is reconsidering and may now try to make the upscale establishment work without DJs, Arellano said.

"They're not in a hurry to sell the Majestic," he said.

City officials are pleased with the deal.

"It's a fair compromise," said George Twigg, spokesman for Mayor Dave Cieslewicz.

"It's the city's hope it will take care of public safety issues," added assistant city attorney Jennifer Zilavy. "(And) we're not totally putting somebody out of business."

The community, she said, "will be able to enjoy the shows they have to offer and keep King Street vibrant."

Tamir Smith, an MC since 1999 who goes by Kronos, said not allowing DJs at Club Majestic will limit hip-hop opportunities in Madison, especially because it was one of the few venues that allowed 18-year-olds.

"It was a nice environment," he said. "It was solid."

Jeff Fields, a musician in the band Blood Jewel, said the loss of venues such as Club Majestic to play DJ hip-hop music will force that genre of music underground, where there is less control.

The deal avoids a legal showdown over tough, unilateral liquor license conditions imposed by Police Chief Noble Wray after fights broke out inside and outside the club -- with at least two patrons smashing each other with beer bottles -- three weekends ago.

Those conditions, imposed Sept. 15, forced the club to cut capacity from 472 to 200 people, with another reduction to 150 by 1 a.m.; provide uniformed security at a rate of one officer per 30 patrons; not serve alcohol in glass bottles; and end all entertainment an hour before bar time.

The Schiavos, arguing the city didn't follow proper procedures, had appealed the conditions and a hearing was set before the city's Alcohol License Review Committee for Oct. 11.

The club, which opened in a restored Majestic Theater in 2002, had no problems until about 20 months ago, when spates of violence erupted at bar time on weekend nights that featured hip-hop music.

The Schiavos had defended offering DJ hip-hop music, saying most patrons had a good time and caused no trouble, and blamed the city for not providing adequate police service to handle hundreds of patrons from many establishments pouring onto King Street at bar time.

The family, however, was "deeply disappointed" by a fight that began inside the club three weeks ago -- the first such incident -- and had independently decided to quit offering DJs, Arellano said.

Under the deal with the city, the club:

* Surrenders its Center for the Visual and Performing Arts License, which allowed DJ music and underage patrons.

* Faces none of the liquor license conditions imposed on Sept. 15 when the club is used for musical, theatrical or theater performances, or special events such as weddings. The club can offer live hip-hop. Any entertainment must end an hour before bar time.

* Would have a 200-person capacity, 150 by 1 a.m., and must have one security person for every 30 patrons, when operating as a tavern.

* May never serve beverages in glass bottles.

The Schiavos, who have been in the restaurant business for decades and operate the elegant Cafe Continental, 108 King St., will make the Majestic work, Arellano said.

Ald. Mike Verveer, 4th District, who represents the area, said, "I very much appreciate the Schiavos realized the city is taking issues very seriously regarding safety in the King Street area. "I remain optimistic the Majestic will continue its long, rich tradition of being a Downtown entertainment venue."