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HomeMy WebLinkAboutCRPS-07-095 - Referral to Licensing Hearings - Various Alternative Massage Centres and Class D Adult Entertainment ParloursI L REPORT 74 Report To: Mayor C. Zehr and Members of Council Date of Meeting: June 25, 2007 Submitted By: R. Gosse, Director of Legislated Services/City Clerk Prepared By: Patricia Harris, Manager of Licensing TIVE75". [[)I=$ - u UT *- =_0 11nieport: June 21, 2007 Report No.: CRPS -07-095 Subject: REFERRAL TO LICENSING HEARINGS — VARIOUS ALTERNATIVE MASSAGE CENTRES AND CLASS D ADULT ENTERTAINMENT PARLOURS RECOMMENDATION: That hearings be held under the authority of the Municipal Act, 2001, as amended, to determine whether or not to revoke, suspend or impose conditions as a requirement of continuing to hold an Alternative Massage Business Licence for the following Licensees: Artouch — 53 Madison Ave. N. Licence #20 07 000200 00 L6 Body & Soul — 91 Queen St. S., Licence #20 07 001662 00 L6 Ma Belle — 37 Bruce St., Licence #20 07 000144 00 L6 Oriental Pearl Health Spa — 778 King St. E. #20 07 0000• 1 00 L6 WL Wellness Centre — 2934 King St. E.5 #20 07 000361 00 L6 and, That hearings be held under the authority of the Municipal Act, 2001, as amended, to determine whether or not to revoke, suspend or impose conditions as a requirement of continuing to hold an Adult Entertainment Parlour (Class D) Licence for the following Licensees: Ruby's Massage Studio — 1412 Victoria St. N., Licence #20 07 000397 00 L6 Phoenix Massage — 2271 Kingsway Dr., Licence #20 07 000885 00 L6, and further, That said hearings be held at Kitchener City Hall on dates to be determined during the period September to November, 2007 with all members of Council being appointed to sit as the Tribunal. BACKGROUND: Section 7 of Schedule 'A' — Business Licence Procedure of Chapter 508 (Alternative Massage Centres) and Chapter 502 (Adult Entertainment Parlours) states that: The Manager of Licensing may refer an application or a licence to Council or a Committee of Council where: (a) the applicant or licensee does not meet the requirements of this Chapter or any other applicable law or by-law; (b) there are reasonable grounds for belief that an application or other document provided to the Manager of Licensing by or on behalf of an applicant or licensee contains a false statement or provides false information; (c) the past or present conduct of any person, including the officers, directors, employees or agents of a corporation, affords reasonable cause to believe that the person will not carry on or engage in the business in accordance with the law or with honesty and integrity; (d) without limiting the generality of Section 7(c), any person, including the officers, directors, employees or agents of a corporation, has contravened this Chapter or any other by-law or federal or provincial statute or regulation while engaged in or conducting the business. Over the past several months a joint investigation was conducted by the Waterloo Regional Police Services, By-law Enforcement, Licensing, Canada Revenue Agency and Canadian Border Services on all licensed alternative massage centres and Class D Adult Entertainment Parlours. 014 Alternative massage as defined in Chapter 508.1.1 includes the kneading, manipulating, rubbing, massaging, touching, or stimulating by any means, of a person's body or part thereof but does not include services designed to appeal to erotic or sexual appetites or inclinations and does not include medical or therapeutic treatment performed or offered by persons otherwise duly qualified, licensed or registered to do so under the laws of the Province of Ontario. A Class D adult entertainment parlour as defined in Chapter 502.1 .1 means an adult entertainment parlour in which any services involving physical contact are provided but shall specifically exclude alternative massage centres licensed by the City. Class D services are defined as any encounter involving physical contact other than ordinary non-erotic hand to hand contact as may be found in any business setting. The following is a brief summary of information that was gathered during the investigation. Artouch — 53 Madison Avenue North • may be offering and providing sexual services in an alternative massage centre • advertising on an adult web site • may be offering and providing sexual services in an alternative massage centre • advertising on an adult web site Ma Belle — 37 Bruce Street • may be offering and providing sexual services in an alternative massage centre pa — 778 King St. E • may be offering and providing sexual services in an alternative massage centre • advertising on adult web site WL Wellness Centre — 2934 King St. E, Unit 2B • advertising on adult web site • evidence that sexual services may be offered and provided An inspection at the two Class D Adult Entertainment Parlours specifically Ruby's at 1412 Victoria Street North and Phoenix located at 2271 Kingsway Drive found possible violations of the regulations in Chapter 502 including providing Class E Services in a Class D Adult Entertainment Parlour, records not being kept up to date and not available for inspection, and locks on doors which is prohibited. Section 151 (1) of the Municipal Act, as amended, provides that a municipality may revoke, suspend or impose conditions on a licence. In exercising the power conferred in this section of the Act, the municipality shall exercise its discretion upon the grounds set out in the by-law or, that the conduct of any person, including the officers, directors, employees or agents of a corporation, affords reasonable cause to believe that the person will not carry on or engage in the business in accordance with the law or with honesty and integrity. Based on the information received, the Manager of Licensing has decided to refer the above business licences to a Committee of Council or Council. At this time Council may, in order to facilitate the review of the licences and afford the licensees the opportunity to respond to the allegations of non-compliance, refer the matters to a Licensing Hearing. After due consideration of the application or licence and after Council or a Committee of Council has heard such representations as the applicants or licensees and staff may care to make, Council may direct that the licence be issued or renewed, or may refuse, suspend, revoke or add conditions to a licence. FINANCIAL IMPLICATIONS: None COMMUNICATIONS: The licensees as named in this report have been notified and received a copy of this report. (MRS) PATRICIA HARRIS FINANCIAL IMPLICATIONS imam