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HomeMy WebLinkAboutCRPS-07-150 - Licensing Tribunal Decision - The Doll House - 6 Bridge St WJ ~- Corporate Services Report To: Mayor C. Zehr and Members of Council Date of Meeting: December 10, 2007 Submitted By: Licensing Tribunal Prepared By: R. Gosse, City Clerk Ward(s) Involved: 1 Date of Report: December 7, 2007 Report No.: CRPS-07-150 Subject: LICENSING TRIBUNAL DECISION -THE DOLL HOUSE, 6 BRIDGE STREET RECOMMENDATION: That the Decision of the Licensing Tribunal, attached to Corporate Services Department report CRPS-07-150, in the matter of Adult Entertainment Parlour Business licence No. 20 07 003010 00 L6 issued to 2027625 Ontario Ltd., operating as The Doll House, 6 Bridge Street West, be adopted. BACKGROUND: 2027625 Ontario Ltd. was issued an Adult Entertainment Parlour Business Licence (Class E) under Chapter 502 (Adult Entertainment Parlours) of the Municipal Code to operate the business known as The Doll House. The establishment is commonly referred to as a Strip Club and has been licensed by 2027625 Ontario Ltd. for the past 3 years. In 2006 Council adopted a recommendation to appoint a tribunal to hold a hearing on whether or not 2027625 Ontario Ltd was in compliance with Chapter 502 of the Municipal Code. On October 30, 2006 Council adopted the decision of the tribunal to have the VIP area of The Doll House modified, to suspend the license for 2 weeks and, to impose conditions on the licence and future licences issued to the business. Early in 2007 the Licensing Section received information from By-law Enforcement that the business was not operating in compliance with the City's Municipal Code. On February 19, 2007, Council adopted the recommendation of the Finance and Corporate Services Committee to hold a hearing under the authority of the Municipal Act, 2001, to determine whether or not to revoke, suspend or impose conditions as a requirement of continuing to hold the Licence. Mayor C. Zehr and Councillors, K. Galloway, and J. Gazzola were appointed as members of the Tribunal. REPORT: The Business Licence Tribunal had set June 20, 2007 for a hearing to consider submissions and evidence to determine whether or not 2027625 Ontario Ltd., operating as The Doll House was in non-compliance of Chapter 502 of the Municipal Code. Due to an ongoing judicial matter that affected this tribunal, the hearing date was adjourned twice and finally commenced on November 9, 2007. The hearing was held over 4 days (November 9, 14, 21 and 30), there were 16 witnesses and 18 exhibits submitted. At the end of the hearing on November 30t", the lawyers for the licensee and the City were asked to submit their written summations by 5 p.m., December 5t". The tribunal met on December 6t" to review the evidence and the summations and render a decision. Ms. Sian Williams, Assistant City Solicitor represented the City and Mr. Darrell Hawreliak, represented the Licensees. Chapter 502 generally describes the services that are allowed in a Class E adult entertainment parlour as striptease or table dancing and other similar performances but does not allow any physical contact between an attendant (dancer) and patron other than non-erotic hand-to-hand contact as may be found in any business setting. Evidence was presented by the City that showed the Licensee was not operating in compliance with Chapter 502. Specifically the following evidence was provided: • On December 12, 2006, Municipal Law Enforcement (MLE) Officers Chris Mace and Tim Cartmell observed an attendant (dancer) provide a service within the open bar area that included physical contact of a sexual nature with the patron. They also observed another attendant provide a service within the VIP area that included physical contact of a sexual nature. • On December 22, 2006, MLE Officers Mark Flood and Charles Zeidler observed 2 dancers together on stage not dancing but giving a performance of a sexual nature. The dancers were joined by two patrons and the dancers had physical contact of a sexual nature with both patrons. • On September 7, 2007, Daniel Deslippe, Provincial Offences Officer with Alcohol and Gaming Commission of Ontario and George McLaughlin, Tobacco Enforcement Officer for the Regional Municipality of Waterloo observed a male patron in a VIP booth, laying down length ways on a couch with a nude attendant laying on top of him. In regard to these 3 events no evidence was provided to the contrary therefore the Tribunal concluded that The Doll House had operated in non-compliance of Chapter 502. It was also noted that the 2 events of December 2006 took place within 2 months following the decision of the Tribunal convened in 2006 to hear evidence with respect to alleged con-compliance of Chapter 502. The Tribunal noted that evidence provided by the MLE Officers from their investigations and observations that took place between January and November 2007, showed there was little if any, physical contact between the attendants and patrons and any contact was minor in nature and did not contravene the intent of Chapter 502. Evidence provided by the Licensee showed that: • The business was the sole livelihood of the owners; • The attendants are hired under contract and as such, make the majority of their wages providing private dances; • The owners have taken steps to mitigate further infractions of Chapter 502; • The owners have met the conditions imposed by the tribunal in 2006; and, • With respect to the order of modifying the VIP area as per the decision adopted by Council in 2006, the owners put forth the argument that the order was ambiguous and in their opinion they met the intent of the order by lowering the perimeter half wall. During testimony from the witnesses it was eluded to that complying with Chapter 502 is difficult, if not impossible to do 100% of the time. Also, during testimony from Mr. Paul Kotsopoulos, co-owner of The Doll House, he advised the Tribunal that the perimeter half walls of the VIP area and the half walls separating the booths within the area, would be removed in their entirety starting on December 3, 2007. Decision of the Tribunal In reviewing the evidence presented during the hearing and taking into consideration the written summations from the two lawyers the Tribunal concluded the following: • There was evidence that provided beyond a reasonable doubt that physical contact had taken place between attendants and patrons in contravention of Chapter 502 of the Municipal Code which contains the following sections: 0 502.6.8 "Attendant services prohibited -set out" No attendant shall provide Class D services in any Class E adult entertainment parlour. 0 502.1.12 "Class D services defined" Class D services means any encounter involving physical contact other than ordinary non-erotic hand to hand contact as may be found in any business setting. • That on two occasions the physical contact noted above took place within 2 months following the outcome of a tribunal convened in 2006 to hear evidence of allegations of non- compliance which included prohibited physical contact; • That the owners were aware of and understand Chapter 502 of the Municipal Code including the following sub-section: 0 502.6.7 "Services provided -set out -owner -responsibility" No owner or operator of a Class E adult entertainment parlour shall permit any attendant to provide Class D services in the Class E adult entertainment parlour. • The owners had complied with the decision of Council as a result of the tribunal convened in 2006 although there was some confusion in regard to the order to `modify' the VIP area; • That part of the aforementioned order requiring the VIP area to be modified, was ambiguous; • Since January 2007, the owners have taken steps to mitigate further non-compliance of Chapter 502. In light of this evidence the Tribunal has decided that the private dance area known as the VIP area is to have the half walls surrounding the area and dividing the individual booths reduced to no more than 2 feet in height. This will still allow the area to be delineated from the rest of the bar area and used for private dances but will ensure the area is open and completely visible from any where within the bar. This visibility will assist the owners and staff in ensuring compliance with Chapter 502. The Tribunal, finding that the owners have not complied with Chapter 502 especially in light of the fact that a tribunal was held in 2006, have decided that a suspension of the licence of 2 consecutive weeks would be appropriate. However, in light of the evidence that the owners have complied with the conditions imposed by the 2006 tribunal and have taken steps to mitigate further non-compliance, a credit of 1 week be granted and therefore, the suspension shall be net 1 week. In consideration of the changes being ordered and the possible impact on the attendants with respect to fees earned through private dancing, the Tribunal feels it is appropriate to allow the owners until February 29, 2008 to take the 1 week suspension. In light of this decision, this order shall be a condition of the 2008 licence should the owners wish to take the suspension in January or February 2008. Finally, the Tribunal wishes to clarify that all conditions adopted by Council whether as a result of the 2006 Tribunal or this Tribunal, will continue as conditions of any future licences until ordered otherwise by Council. FINANCIAL IMPLICATIONS: n/a R. Gosse -Director of Legislated Services City Clerk Decision of the Licensing Tribunal In the matter of Adult Entertainment Parlour Business license No. 20 07 003010 00 L6 issued to 2027625 Ontario Ltd., operating as The Doll House, 6 Bridge Street West, Kitchener That the private dance area known as the "VIP" area with a half wall around its perimeter and containing separate booths with a half wall on three sides, shall be modified by: 1. At a minimum all of the half walls in the area are to be reduced to a height of no more than 2 feet measured from the floor of the VIP area; and, 2. No material, object(s) or construction with a height greater than 2 feet shall be placed around the VIP area or between the furniture within the VIP; and, 3. Notwithstanding clause 2. the furniture (e.g. couches/loveseats) contained in the VIP area shall not be more than 3 feet in height measured from the floor of the VIP area; and, 4. The VIP area, being a raised area within the premises, shall not be re-constructed to a greater height than currently exists; and, That the Adult Entertainment Parlour Licence granted and/or to be granted to the Licensees to operate the Dollhouse as an adult entertainment parlour shall be suspended for a period of two consecutive weeks; however, the Licensees are granted credit of 1 week and therefore, the suspension shall be a net of 1 week to be completed no later than February 29, 2008 and further, That all conditions currently in effect on the Licence granted to 2027625 Ontario Ltd. to operate an Adult Entertainment Parlour and approved by Council shall continue for all future licenses to be issued to this Licensee until Council so orders otherwise by resolution: December 6, 2007 Mayor C. Zehr Councillor John Gazzola Councillor Kelly Galloway Chair Member Member