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REQUEST FOR COUNCIL ACTION Date: 7/22/2024 Item No.: 7.d. Department Approval City Manager Approval Item Description: Consider Massage Establishment License for Broomall JAB LLC 1 2 Background 3 Winway YH LLC previously operated a massage therapy establishment at 696 County Road B. Over the 4 past several months, staff determined that there were various violations of the City's Building and Fire 5 Codes at Winway YH LLC located at 696 County Road B and violations of Chapter 309 (Massage 6 Therapy) of the City's Business Licensing Code. The building and fire code issues were resolved in a 7 timely manner. The violations of Chapter 309 of the City Code included having a mattress and personal 8 items in one massage room, indicating that it was being lived in, a mattress in another massage room 9 without a massage table, and the discovery of an ad placed on an adult website that appeared to be 10 advertising sexual acts as part of the massage services. (See Attachment 1). 11 12 Based on that information, staff planned to bring forward a recommendation to not renew and revoke the 13 massage therapy establishment license for Winway YH LLC at the July 8, 2024, City Council meeting. 14 Once notice was given to Winway YH LLC, the owner withdrew the application and renewal request on 15 June 24, 2024. 16 17 On that same day, City staff received a new application from Broomall JAB LLC to operate a massage 18 therapy establishment in the same space previously used by Winway YH LLC. In reviewing the 19 application, staff noticed that the new application had areas of connections with the previous user of the 20 space, Winway YH LLC. City staff believes that the two businesses, Broomall JAB LLC and Winway YH 21 LLC, are not separate based on the following facts: 22 23 The business name Broomall JAB LLC, is remarkably similar to the email address provided on 24 the 2019 application from Winway YH; broomall3093@gmail.com 25 The email address on the application for Broomall JAB LLC (d ingcheng1114@gmail.com) is very 26 similar to the name of a massage establishment that Yan Horvath, owner of Winway YH LLC, 27 listed as being associated with in Moorhead, MN; Dingcheng YN, LLC. 28 Broomall JAB LLC was registered with the Minnesota Secretary of State on June 24, 2024, 29 which is the same day that Winway YH, LLC withdrew its application for renewal of its massage 30 therapy establishment license. 31 32 On July 3, staff sent a letter to Broomall JAB LLC regarding these facts and staff's intention to 33 recommend denial of their application for a massage therapy establishment license at the July 22, 2024, 34 City Council meeting. (Attachment 2). Staff also followed up with an email on July 15, 2024, to Broomall 35 JAB LLC sharing the same information. To date, the City has not heard back from Broomall JAB LLC. 36 37 Based on the above facts and the attached information, staff recommends that Broomall JAB LLC's 38 massage therapy establishment license be denied. 39 Page 1 of 2 Qbhf!54!pg!557