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Mounds View City Council January 5, 2009 Special Meeting Page 3 C. Oath of Office for Sherry Gunn. Clerk Administrator Ericson administered the oath of office to Sherry Gunn for the office of Councilmember. Mayor Flaherty declared a recess at 6:21 p.m. to hold a short reception. The meeting was reconvened at 6:41 p.m. 7. COUNCIL BUSINESS A. 6:05 p.m. Public Hearing, Resolution 7395, a Resolution to suspend or revoke a Therapeutic Massage License for Xiu Ju Li (doing business as Jian Kang Massage) located at 2552 Highway 10 in Mounds View. Assistant City Clerk-Administrator Crane advised the City Council that on December 29, 2008, Xiu Ju Li and Chun Wang were arrested for allegedly promoting prostitution and labor trafficking, two felony counts. Upon getting the notification, Staff immediately contacted the City Attorney to assist in the suspension or revocation process of the therapeutic massage license. The City Attorney and staff believe there is enough information to proceed to either suspend or revoke this license because of the arrest, there may have been other unlicensed therapists, and the business was closing at 10:00 p.m., one hour later than allowed by the license. Assistant Clerk- Administrator Crane stated the Council can either suspend the license indefinitely until conviction is made, which may take months or years to occur, or revoke the license. Police Chief Sommer stated in November they became aware of concerns that the therapist was possibly engaging in sexual activity with clients as part of the massage, which was confirmed through an undercover investigation by the Police Department. He advised that Chun Wang, 52 years of age, was arrested and it was found he also had felony warrants in Nevada. Xiu Ju Li, 43 years of age, was charged with felony prostitution and kidnapping or labor trafficking. These charges are still under investigation and the evidence supported the probable cause arrests and two search warrants that were conducted as part of the investigation. Mayor Flaherty opened the public hearing at 6:45 p.m. Katie Viere, Property Manager for Kraus Anderson Realty Company, noted the business owner has not yet been convicted. Ms. Viere stated they do not want illegal activity occurring on their property but do want to understand where they stand and what direction they can take. She advised the City Council that this tenant is current on their rent. Police Chief Sommer clarified that the owner and associate have been arrested on very serious charges. He stated it would be in the best interest of the property management company to not be associated or attached to that business. Police Chief Sommer stated this public hearing can put the property management company on notice that there have been arrests for very serious charges for activity occurring in that building.