http://www.vindy.com/news/2012/dec/16/so-long-cedars/
more info on the situation on the link above
Vindy.com is the website for the city's newspaper
The Vindicator.
It's true that bars are often the businesses that get attacked the most when it comes to measures that make it hard to stay in business. But at Cedars, most patrons didn't actually get real drunk, and if they did, they got kicked out by a really big bouncer dude. Pretty much all the patrons were there for shows, for conversation, for art, for food, for a cocktail, or two, but not a lot. They still have $1 Straub beers though, if you were hard up for cash - it's a bare-bones beer: barley, hops, yeast, water (nothing else) beer that is simple and good. I don't know of any time a police officer has had to come into the bar, and aside of taking care of a temporary drug problem behind the building, I'm not even really aware of Cedars being the cause of any real problems outside of the bar.
It really sounds like the gal that runs the place is going to find a way to relocate at least. I doubt old purists would agree to this, but maybe she'll even find somewhere better. It'll be hard though - she never had to pay rent - just utilities, since grandma had it. Moving will incur either a mortgage or rent. That'll change things.