ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL. Essential Massage Business License and Personal Service License Suspensions

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1 MONDAY, APRIL 6,2015 DATE REQUEST FOR COUNCIL ACTION 6A AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community Development ~ Essential Massage Business License and Personal Service License Suspensions PREVIOUS ACTIONS: None. RECOMMENDED COUNCIL ACTION: Motion to suspend the Massage Business License of Essential Massage Therapy, Inc., rd Ave. N, Maple Grove, Minnesota 55369, based on the comments below, and to direct the Clerk to send the notice of suspension attached, and to schedule a license revocation hearing before the City Council for April 20,2015, at 7:00 p.m. Motion to suspend the Personal Service License of Lei Kor, Kristie Ln, Eden Prairie, MN 55346, based on the comments below, and to direct the Clerk to send the notice of suspension attached, and to schedule a license revocation hearing before the City Council for April 20, 2015, at 7 :00 p.m. Motion to suspend the Personal Service License of Jie Sun, Kristie Ln, Eden Prairie, MN 55346, based on the comments below, and to direct the Clerk to send the notice of suspension attached, and to schedule a license revocation hearing before the City Council for April 20, 2015, at 7:00 p.m. (Simple majority vote for passage) COMMENTS: Essential Massage Therapy, Inc. ("Essential Massage"), rd Ave. N, Maple Grove, Minnesota 55369, holds a Massage Business License, License No Essential Massage received its current business license, License No , on January 20,2015. Lei Kor, the owner of Essential Massage, holds a Personal Service License for massage services. Ms. Kor received her current license, License No , on January 9, Jie Sun, employee of Essential Massage, holds a Personal Service License for massage services. Ms. Sun received her current license, License No , on January 9, On March 10, 2015, Maple Grove Police Department investigated a report of possible prostitution activities at Essential Massage. An undercover officer visited Essential Massage at 7:45 p.m., during g:\city council\agendas-adm SOO\cc reg mtg agendas\20 IS\webstreaming agenda\april 6\community development\essential massage business and personal service license revocations 4-6-IS.docx

2 Essential Massage Business License and Personal Service License Suspensions Request for Council Action April 6, 2015 Page 2 business hours for a scheduled massage. During the course of the investigation, Ms. Kor attempted to engage in sexual activity in exchange for additional payment. For this conduct, the Police Department arrested Kor for prostitution in violation of Minn. Stat Subd. 6(2), and for violations of City Code (f) & (m). The Police Department also arrested Essential Massage's employee, Jie Sun, and charged her with the same. Business License Suspension: The actions of Ms. Kor, as owner and operator of Essential Massage, and her employee are in violation of several provisions of Maple Grove City Code, including Chapter 10, Article VII (Massage Services), and Chapter 20, Article IV (Lewd Conduct). Importantly, under (k), Essential Massage, the licensee, and Ms. Kor, its owner, are responsible for the conduct ofthe business and its employees. City Code provides that the City Council may suspend any business license, without notice, pending a hearing on revocation within the subsequent 30 days following the suspension. Suspension should be communicated to the licensee by personal service of a Notice of Suspension or by leaving notification at the licensed premises with the person in charge of the premises. City Code provides for suspension for several reasons, including the following: (A) Failure to comply with the any of the ordinances of the city, rules promulgated thereunder, or statutes of state; and (B) Presence of the massage business being found to be detrimental to the health, safety or welfare of the citizens of the city. The City may suspend the business license of Essential Massage under both provisions. Failure to Comply with City Ordinances Essential Massage failed to comply with several provisions of the City Code. First, (m) states: No person, whether as a licensee or employee or agent thereof or otherwise, shall engage or offer to engage in any specified sexual activity, as defined in section , or engage or offer to engage in any activity prohibited by statute, ordinance, regulation or rule, on the licensed premises or in connection with a massage or massage business. Included among the definitions of sexual activity specified in is "(4) Fondling or touching of nude human genitals, pubic region, buttocks, or female breast." prohibits lewd conduct in locations granted business licenses. In relevant part, (d) prohibits act or conduct, "(2) To encourage or permit any person to touch, caress, or fondle the breast, buttocks, anus or genitals of oneself or any other person." The activities of Ms. Kor and Ms. Sun, employees of Essential Massage practicing massage services, were in violation of City Code for which Essential Massage is independently responsible as the holder of a business license. g:\city council\agendas-adm 500\cc reg mtg agendas\20 15\webstreaming agenda\april 6\community development\essential massage business and personal service license revocations docx

3 Essential Massage Business License and Personal Service License Suspensions Request for Council Action April 6, 2015 Page 3 Presence of the Business Detrimental to Public Health, Safety, and Welfare: Finally, City Code (1) requires that the licensee engage in practices designed to ensure cleanliness and health and which are designed to resist anything detrimental to the public's health, safety and welfare. As stated above, two licensed employees of Essential Massage were arrested for prostitution in violation of Minn. Stat Subd. 6(2). Consequently, this activity may be viewed as endangering the health, safety, and welfare of the citizens of Maple Grove and constitute an independent grounds for suspending the business license of Essential Massage under (7). Personal Service License Suspensions: Ms. Kor and Ms. Sun hold personal service licenses from the City. Their licenses to perform massage services may be revoked, under Section (1) for failure to comply with any of the ordinances of the city, rules promulgated thereunder, or statutes of state. As discussed above, Ms. Kor and Ms. Sun were both arrested for engaging in prostitution. Their actions in engaging in criminal activity violated state law and City Code and constitute a basis for suspending their personal service licenses. Authored by: Dick Edwards g:\city council\agendas-adm SOO\cc reg mtg agendas\20 ls\webstreaming agenda\april 6\community development\essential massage business and personal service license revocations 4-6-1S.docx

4 CITY OF MAPLE GROVE, MINNESOTA NOTICE OF LICENSE SUSPENSION NOTICE IS HEREBY GIVEN that on April 6, 2015, pursuant to Maple Grove City Code , the Maple Grove City Council voted to SUSPEND the Massage Business License of Essential Massage Therapy, Inc., rd Ave N, Maple Grove, MN The City Council, pursuant to Maple Grove City Code (1) & (7), suspended the license for the following reasons: Essential Massage Therapy, Inc., a holder of a Massage Business License, owned and operated by Lei Kor, violated Maple Grove City Code (1) for employees engaging in practices detrimental to the public's health, safety, and welfare; and (m) and for employees engaging in sexual activity and lewd conduct on the premises of the licensed business, on March 10,2015. YOU ARE FURTHER NOTIFIED that operation of Essential Massage Therapy, Inc. as a business for massage services must CEASE AND DESIST IMMEDIATELY. If you do not immediately suspend operation of your business, THE CITY MAY TAKE APPROPRIATE LEGAL ACTION, WHICH MAY INCLUDE REVOCATION OF YOUR BUSINESS LICENSE OR INITIATING A LA WSUIT AGAINST YOU TO ENSURE THE BUSINESS IS NOT BEING OPERATED. YOU ARE FURTHER NOTIFIED that, in accordance with City Code 10-8 and , the City Council will hold a hearing on revocation of the Massage Business License for Essential Massage Therapy, Inc. on April 20, 2015 at 7:00 p.m. Based on the evidence and testimony at the hearing, the City Council will determine if circumstances warrant the revocation of the license of Essential Massage Therapy, Inc. At the hearing, you may present evidence and testimony to the City Council. The City Council at the hearing will inform the licensee of all information upon which the alleged violation of law by the licensee has been determined. The City Council will make a final order regarding the reinstatement, suspension, or termination of the license following the hearing. Al Madsen, City Clerk

5 Affidavit of Service: STATE OF MINNESOTA } SS COUNTY OF HENNNEPIN ---'- being duly sworn states that on _ (s)he served the attached Notice of License Suspension on by leaving an accurate copy _ of the Notice at the establishment with: , purported manager or assistant manager of said establishment. the (Name) (Title) Officer's signature Subscribed and sworn to before me this day of 20_ Notary Public

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7 commeifci I Business Certificate - City of Maple Grove Department of Building Inspection This Certificate is issued pursuant to the requirements of the City of Maple Grove certifying that at the time of issuance this structure was in compliance with the various ordinances of the City regulating the building use for the following: Business Name (dba): Essential Massage Therapy Business Site Address: rd Ave N This business meets the requirements of the Jl_zone of the City of Maple Grove. Building Owner: Anderson Property Management Maple Ridge Center LLC Address: 6205 Parkwood Road Edina MN City State ZipCode Date Issued: December 15, 2014 A change in occupant/business or ownership must apply for a new Business Certificate