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8.3. SR 07-20-2015 Request for Action To Item Number Mayor and City Council 8.3 Agenda Section Meeting Date Prepared by General BusinessJuly 20, 2015Tina Allard, City Clerk Item Description Reviewed by Ordinance Establishing 6-Month Moratorium on Cal Portner, City Administrator New Massage Establishments Reviewed by Peter Beck, City Attorney Action Requested Adopt, by motion, an ordinance establishing a six-month moratorium on the allowance of new massage establishments. Background/Discussion Lately there has been a trend spreading across the state of a certain type of massage establishment (typically known as erotic massage parlors) that act as fronts for prostitution, human sex-trafficking, and drug-trafficking. Surrounding local communities have had recent arrests and shut downs at these types of businesses. This is a nationwide issue that can be expensive and time consuming for police to investigate. After a license has been revoked, a parlor tends to continue to operate from the same location with different owners and a new license. It has been a while since our ordinance has been updated and staff asks for a six-month moratorium in order to review and strengthen its language to assist in curbing these types of businesses and protect the health, safety, and welfare of the community. Many communities are struggling with how to stop these types of parlors from coming to their towns, and a good solution hasn’t been worked out. Typically, it tends to fall to police departments when complaints are received. I’d like to note our current massage businesses are in good standing in the community and there will be no effect on them to continue to operate or for their renewals at year-end. Financial Impact N/A Attachments  Ordinance  News Articles Strikethroughs to be removed Underlines to be added Ordinance 15 - ____ An Ordinance Establishing a Moratorium on the Licensing of New Massage and Sauna Establishments in the City of Elk River The City Council of the City of Elk River does hereby ordain as follows: WHEREAS, the City Council has determined it is necessary for the city to update the Elk River City Code with respect to massage and sauna establishments and to maintain the status quo for a limited period of time until the City Code can be revised as necessary. It is anticipated this process will take approximately six months; and WHEREAS, the City Council finds it is necessary, in order to protect the health, safety, and welfare of the citizens of Elk River, to declare a moratorium on allowing and licensing new massage and sauna establishments within the City of Elk River until the city has completed the process of considering and revising the City Code. NOW, THEREFORE , BE IT RESOLVED by the City Council of the City of Elk River: 1.A moratorium is hereby imposed within the City of Elk River on the establishment and licensing of massage and sauna establishments as defined in the City of Elk River City Code of Ordinances. 2.The moratorium shall extend from the date of adoption until January 21, 2016, unless terminated earlier or extended by action of the City Council. 3.During the term of this moratorium, the city will not accept an application for or consider or grant any approval required by the Code of Ordinance for the establishment of a new massage or sauna establishment and will not accept an application for or issue any building permit for construction of a new massage or sauna establishment. This Ordinance shall take effect upon adoption and be published as provided by law. th Passed and adopted by the City Council of the City of Elk River this 20 day of July, 2015. ______________________________ John J. Dietz, Mayor ATTEST: _______________________________ Tina Allard, City Clerk 7/15/2015 Illicit M assage Parlor s See New Form Of Cr ackdown « CBS Minnesota http://minnesota.cbslocal.com/2015/05/06/illicit­massage­par lors­see­new­form­of­cr ackdown/1/6 Hom e News Sports Best of Video Audio Weather Traffic Events Travel Health Directory Deals Circulars Your Home Auto Zac Farber Zac Farber joined WCCO.com as a web producer and reporter in August... Read More Local Illicit Massage Parlors See New Form Of Crackdown May 6, 2015 3:48 PM (credit: CBS) Related Tags: Breaking Free, Bruce Folkens, Massage Parlors, massage therapy, Minneapolis Police Department, prostitution, Sex Crimes, Sex Trafficking MINNEAPOLIS (WCCO) — In early March, after a yearlong investigation, the Anoka County Sheriff’s Office raided a Ramsey massage parlor. T he investigation of Sunlight Asian Massage included extensive surveillance, a review of bank records and two undercover cops who paid for “sexual acts.” The owner, Eswin Yoni Berrios, and manager, Lin Lin Li, were arrested and charged with profiting from the prostitution of their employees. It was a red­letter case, but the truth is that long­term criminal investigations have not been fully effective at keeping illicit massage parlors out of Minnesota communities. Close one sex parlor and, police say, the owner will often reopen elsewhere under a different name. Rubmaps.com, a sort of Yelp for massage parlor prostitution, lists hundreds of Minnesota businesses and lets users record their masseuse’s breast size and their ability to purchase “kissing” and more explicit services. CBS Local Rewards 22 Log In Register Search 70° FOLLOW US Minnesota SIGN UP FOR NEWSLETTERS View Comments119151Share LISTEN LIVE Latest News Local Consumer Crime Politics Business Water Cooler Entertainment Blogs Photo Galleries 7/15/2015 Illicit M assage Parlor s See New Form Of Cr ackdown « CBS Minnesota http://minnesota.cbslocal.com/2015/05/06/illicit­massage­par lors­see­new­form­of­cr ackdown/2/6 Sponsored Links Advertise Here Age 50+ And Overweight? 5 foods to never eat if you’re over 50… www.CruiseControlDiet.com Want to save big? Safe drivers can save 45% or more with Allstate. Click to quote now. Allstate.com Minneapolis, St. Paul, and Hennepin, Ramsey and Anoka counties said they don’t keep statistics on massage business prosecutions or arrests. But in the last few years, the difficulty of dispelling massage parlor prostitution through traditional police methods has prompted some cities to experiment with a new enforcement approach. ‘Hard to investig ate’ Distinguishing a front for prostitution from a legitimate massage therapy business is no great analytic feat, said Joy Friedman, the outreach director at Breaking Free, a St. Paul non­profit that helps women leave sex trafficking. She said massage parlors are often guarded by muscular bouncers peering from behind blackened windows. They aren’t shy about advertising in classified ads and on sites like Backpage.com. And they’re known to shamelessly promote sexual services, like “happy endings,” on printed price lists. But as a branch of sex trafficking, massage parlors present a unique challenge for law enforcement. Police say investigations are costly, resource­intensive and time­consuming. And it’s difficult to link business owners to the prostitution taking place under their roof. As a result, experts say conventional crackdowns don’t typically happen unless communities complain. “The illicit establishments are hard to investigate,” said Cmdr. Bruce F olkens, who leads the Minneapolis Police Department division responsible for sex crimes. “You’re talking about undercover officers and putting them in precarious situations.” F riedman said massage parlors are inherently sheltered from police attention. “Before an undercover cop at the front desk can get to the back rooms, they have time to move a girl from one room to another, they can pass her out the back door,” she said. “There’s a lot of cover.” Like strip clubs, illicit massage parlors serve as a gateway into the world of sex trafficking, F riedman said. “Girls are being misled into thinking all they’re going to have to do is wear lingerie and give a guy a backrub, but that’s not what happens in massage parlors,” she said. “Younger individuals starved for financial needs take a job requiring high heels and short skirts and, next thing they know, they’re in the back room performing services.” A shift in police thinking in recent years has led to a recognition that sex workers are not criminals but victims. Folkens said his job has changed from arresting prostitutes to a more rewarding mandate — “rescuing victims of sex trafficking.” ‘Constantly paranoid’ Until a couple years ago, all massage businesses in Minneapolis were classified in zoning code as “sexually oriented businesses,” so it’s no surprise that professional massage therapists are the most vocal opponents of the unlawful establishments. This Week's Circulars     HOVER FOR CIRCULAR HOVER FOR CIRCULAR HOVER FOR CIRCULAR HOVER FOR CIRCULAR Earn points for great prizes by enjoying our articles, galleries, and newsletters. Featured Reward See Prizes Learn more about CBS Local Rewards WEATHER WATCHER LATEST GALLERIES July 12 Severe Weather  7/15/2015 Illicit M assage Parlor s See New Form Of Cr ackdown « CBS Minnesota http://minnesota.cbslocal.com/2015/05/06/illicit­massage­par lors­see­new­form­of­cr ackdown/3/6 “Some of the tips that come in are legitimate massage therapists who say, ‘I went to this place to get a job, and they started telling me the requirements of the job involved sex trafficking,’” Folkens said. “T hey literally flee the place and call us to let us know.” While experts agree there is very little overlap between legal massage businesses and illegal sex parlors, reputable massage businesses can find themselves listed on crowd­sourced websites like Rubmaps and otherwise implicated in the public eye. Jason Erickson, president of the Minnesota chapter of the American Massage Therapy Association, said the sexual shadow industry is frightening to trained massage therapists. “They are constantly paranoid they are going to have guys coming in trying to push the boundaries,” he said. A licensing solution Minnesota is one of only six states that leaves licensing of massage therapy businesses to individual cities, and many municipalities require no formal licensure. Minneapolis began licensing its massage businesses for the first time in July 2014 and has already seen success in shutting down illegal parlors without launching full­scale undercover criminal investigations. In less than a year, the city has closed 13 unlicensed businesses, citing four of them for unlawful acts. Minneapolis has plans to expand sex trafficking training to city workers — teaching fire, housing and health inspectors to look out for warning signs, such as beds in commercial businesses. Linda Roberts, the city’s top licensing executive, said that under the new requirements, police can enter any massage business they suspect of involvement in the sex trade. “If you have a massage business, you have to allow an inspection,” she said. “You don’t have to have a search warrant.” Most of the 190 applicants for the license are happy with the new requirements, despite an annual fee of $50 for home businesses and $140 for larger operations. “Professional massage therapists have been working to separate ourselves from being associated with illegitimate and illegal practices for at least 50 years,” Erickson said. F olkens said a number of metro area cities have adopted, or shown interest in adopting, similar licensing policies to Minneapolis. Police have already discovered massage license applicants who were denied but then applied again under a different name. And Folkens said they’re sharing that type of information with neighboring cities. “Whether it’s statewide legislation or individual communities, we’re getting there,” he said. But Erickson, the massage association president, said that piecemeal regulation doesn’t cut it, and without a statewide credential system, illicit parlors can still just move somewhere else. “Being able to establish some type of reasonable control over these illegitimate businesses is a bit like playing Whack­a­mole,” he said. By Zac Farber  PROMOTED STORIES LATEST VIDEOS FOLLOW CBS MINNESOTA Follow @WCCO 78.9K followers Follow More Stations and Personalities THE BUZZ FROM WCCO RADIO News Click: All Star Game News Click: George W’s Lucrative Speaking Fee Dara Moskowitz Grumdahl’s Top 5 Kohlrabi Recipes News Click: Sharks In The Outer Banks News Click: Commissioner Pay Raises View Comments119151Share The Awesome World of Rapid City, South Why This Insanely Popular Sweatshirt What Car Ranked As the Best All Wheel Oven­Baked Fried Chicken (Recipe) WCCO­TV | CBS Minne… 138k likesLike Page B u y  T i c k e ts H e a l th Mo r e SearchLOG I N R E G I S T E RFOLLOW U S     7/14/2015 The Network Of Massage Par lors In Amer ica ­ Business Insider http://www.businessinsider.com /the­network­of­massage­parlor s­in­america­2014­3 1/2 B analities / Flic kr Sex Workers Are Trucked Across America To Work At Massage Parlors That Are Fronts For Prostitution PAMELA ENGEL MAR. 14, 2014, 5:04 PM The United States has a complex network of "massage parlors" that are fronts for prostitution and truck women across the country to have sex for money, according to a new report on America's sex economy. The Urban Institute's new report examines how these massage parlors operate in eight different cities, noting they often operate in a "circuit" of cities. Dallas, Texas, for example, is networked with parlors in Queens, N.Y., Seattle, San Francisco, Los Angeles, Philadelphia, and Atlanta. The purpose of shipping prostitutes from massage parlor to massage parlor is "to keep clients interested," the report found. Here's how it works in Washington, D.C., according to the report, which said there are 7/14/2015 The Network Of Massage Par lors In Amer ica ­ Business Insider http://www.businessinsider.com /the­network­of­massage­parlor s­in­america­2014­3 2/2 nearly 5,000 erotic massage parlors across the U.S.: [Massage parlors] are commonly run out of business locations and found scattered throughout downtown DC. Prices charged at massage parlors—operating as fronts for prostitution and sex trafficking—include a $60 to $80 set "house fee." This is a set price for walking in the door and, depending on the sex act the buyer wants, additional fees are added. For a "full service," the fee is (on average) an additional minimum of $120 which includes a table shower, massage, and sexual intercourse. One law enforcement official described how women are able to keep some of their money—unlike in street pimp cases where the women and minors typically hand all of their money over—but often pay additional fees to the brothel owner. Massage parlors often recruit women from Thailand and the Philippines, offering them jobs that don't involve prostitution, according to the report. Once these indebted women arrive in the U.S., the parlors coerce them into doing sex work. It's hard to prosecute the sex workers because the women often refuse to give up information about the people who are connected to the operation. And once the women are accustomed to the lifestyle — including gym memberships and expensive clothes — they might be reluctant to get out of the business, according to the Urban Institute. Police sometimes try a different tactic: going after the landlords. Few landlords might be willing to allow these massage parlors to operate inside their buildings in the first place. But once police go after these landlords, they're even less likely to let the operation to continue. The massage parlors are highly organized and typically run by business­savvy people from China or Korea, according to the report. They invest money in locally owned community banks, real estate, and other legitimate businesses. Massage parlor owners have also reportedly gotten good at hiding their assets and changing tactics once law enforcement caught on to what they were doing. More: Prostitution Asia Sex Trafficking * Copy right © 2015 Bus ines s Ins ider Inc. All right s  reserv ed.