Offline SFTP with Lion

Looking for some advice.
Currently, I have a SFTP server setup with a manually assigned IP address for file sharing through GoodReader. The goal is a file server for, initially, 40 iPads to connect to for downloading PDFs. Due to workplace restrictions, I need to maintain this SFTP server without an active connection to the Internet. It needs to be considered "off the LAN".
Besides Ad Hoc, which I understand to be limited to 2 devices (Mac to device), what options are there to keep an active SFTP server going without Internet access?
I've racked my brain trying to think of a way of creating a constant wifi network without Internet access.I

I think what you're getting at is that the SFTP server has to be available only on a network separate from your organization's network, to which the iPad clients would connect. There are various ways your network administrator could set that up, but maybe the simplest one is to dedicate a wireless access point to it, such as an AirPort. Connect the server only to that access point, and it will be unavailable from the LAN.

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