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Well it’s now 2014, and the hotel on the upper floors is about to Koenig not already. Best part is they have kept the theatre for use as a performance venue, with the first concerts already scheduled. Good to see it preserved like that.
So it seems the Famous Dave’s has closed (I went there once on a Friday night just after all the shows got out; it was pretty empty, so I’m not surprised.) But the front portion, where the bar is, is still operating as the “Liberty Diner”, while the main auditorium is available as a rental reception space. See libertytheaterny.com
Based on the height above the sidewalk, that “nowhere” is probably the loading dock.