The Dragon Moon was the only hard liquor licensed Gay Bar in Santa Cruz until the opening up of the Blue Lagoon on Pacific Avenue. The only other Gay Bar in Santa Cruz was Mona's Guerrilla Lounge on Commercial Way near Dominican Hospital. Mona's was a beer and wine bar only. All were busy in the very early 80's.
Located on Soquel Avenue near the Rio Theatre, Dragon Moon was a disco but had Punk night on Thursday which was a must be at event each week. The bar was owned by an older man who used to be a taxidermist, his lover was the DJ named Sugar. The Bar Staff consisted of two Hispanic males, Larry and Michael. They would dance in tandem to a song by the Talking Heads, both singing Take me to the River, "Blank" me in the water....very cute and most people would stop to watch their routine. Dragon Moon closed down after Sugar left with another man and the Blue Lagoon was firmly established. With the late 80's Gay scene becoming more Political, the days of the Hard Partying Disco Bars closed. Post the 1989 earthquake much of the old Santa Cruz died off and was replaced by a very radical hard left. With their no growth economic the town became run down. The loss of weekend tourist from over the hill, with much of Dragon Moon's weekend trade coming from San Jose, caused the Dragon Moon and Cha Cha's (the new name for Mona's after loosing it's liquor license because of underage patrons found during a Sunday Night Punk night concert in late 1981) to shut down.
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