268847 WHITE - CITV CLERK COl1I1C1I ������.
PINK - FINANCE G I TY OF SA I NT PAU L
E}ANARY - DEPARTMENT �
BLUE ; MAVOR' , File NO.
� � Gouncil Resolution
Presented By
l� �� �
Referred To Committee: Date
Out of Committee By Date
WHEREAS, Loren Jones and Eugene Rauchwarter, d/b/a North
Snelling Sauna, hold Sauna License No. 9665, expiring June 22,
1977, for the premises at 145 North Snelling Avenue in the
City of Saint Paul; and
WHEREAS, Joseph F. Carchedi, License Inspector, has
reco�nended revocation of said license, and so notified the
licensees by letter dated March 11, 1977, based upon the
following grounds as set forth in said letter:
"1-22-76 - Allowing and/or permitting a female
employee of North Snelling Sauna to use the
premises at� 145 North Snelling to engage in the
solicitation and/or acts of prostitution.
3-3-76 - A1lowing and/or permitting a female
employee of North Snelling Sauna to use the
premises at 145 North Snelling to engage in the
solicitation and/or acts of prostitution.
1-5-77 - Allowing and/or permitting a female
employee of North Snelling Sauna to use the
premises at 145 North Snelling to engage in the
solicitation and/or acts of prostitution.
1-5-77 - Allowing and/or permitting a female
employee of North S�.elling Sauna to use the
premises at 145 North Snelling to engage in the
performing of massa.ges without having obtained
the proper City (Masseurs/Masseuses) licenses.";
and
COUNCILMEfV Requested by Department of:
Yeas Nays
Butler
Hozza [n Favor
Hunt
Levine Against By
Roedler
Sylvester
Tedesco
Form Appr ved by Ci Atto ey
Adopted by Council: Date .
Certified Passed by Council Secretary BY
sy
Approved by Mayoc Date Approved by Mayor for Submission to Council
By BY
. �����.�
.
Page 2.
WHEREAS, a hearing was held before the License Committee
of the City Council in Room 707 of the City Hall and Courthouse
at 9:00 A.M. on Wednesday, March 30, 1977, at which hearing
both licensees were present together with their attorney, Clark
Isaacs, who acknowledged receipt of the above letter; and
WHEREAS, at such hearing said licensees were permitted
through their attorney to cross-examine witnesses presented by
the License Inspector, to meet and rebut evidence offered by
him, and to present evidence and testimony of their own; and
WHEREAS, all testimony was taken under oath, and was
recorded by a certified court reporter; and
WHEREAS, the Committee heard testimony from Joseph F.
Carchedi, License Inspector; Thomas C. Walstrom and Robert
Jewell, private investigators in the employ of ACSI, Inc.
(Analytical Consultants for Security and Investigations, Inc. ) ,
7100 France Avenue South, Minneapolis; Sgts. Gary Bohn and Ma.rk
Jessen, Vice Unit, Saint Paul Police Department; and Loren Jones,
licensee; and received into evidence for the record various
additional reports, documents and court records, numbered as
Exhibits 1 through 7; and
WHEREAS, the Committee considered the remarks of the
attorney for the licensees, together with all of the evidence
and testimony, weighing the credibility and demeanor of the
witnesses who did testify; and
WHEREAS, the evidence established that fema.le employees of
the licensed establishment did unlawfully solicit undercover
customers for illicit sexual acts on January 22, 1976, Ma.rch 3,
1976, and January 5, 1977; that the said employees were arrested
and prosecuted for such actions, one having pled guilty and been
sentenced on June 14, 1976, the other having pled guilty on
Ma.rch 1, 1977, with sentencing set for April 13, 1977; that the
licensees exercised little or no control over the actions of
ma.sseuses working in the licensed establishment, and had no manage-
ment policies or controls to prevent such unlawful actions; that
the licensees did not screen or interview prospective employees
to determine their background or qualifications for licensed
employment; that the licensee did not discharge his responsibility
WHITE - GTV CLERK ^ ` ��.yy+.�
PINK - FINANCE COl11�C1I �� ci �
C`'ANARV - DEPARTMENT GITY OF SAINT PAUL - P
BLUE� - MAVOR File NO.
�
' - � Council Resolution
.
Presented By
Referred To Committee: Date
Out of Committee By Date
Page 3.
to employ only licensed ma.sseuses; that the licensees had under-
taken some steps to determine the existence of unlawful prosti-
tution in the licensed establishment by participating in the
hiring of ACSI, Inc. , which effort had uncovered a serious
problem, but that this effort had not continued either by way
of outside assistance or by any internal system of controls; and
WHEREAS, the License Committee voted to recommend to the
City Council by a vote of 3-0 that the license involved here
be revoked; and
WHEREAS, a copy of this resolution has been mailed by the
counsel for the License Committee to Clark Isaacs, the attorney
for the licensees; now, therefore, be it
RESOLVED, that the Sauna License No. 9665, issued for the
premises at 145 North Snelling Avenue in Saint Paul, held by
Loren Jones and Eugene Rauchwarter, is hereby revoked and
rescinded, pursuant to the Chapters 331 and 378 of the Saint
Paul Legislative Code.
COUIVCILMEN
Yeas Nays Requested by Department of:
Butler
Hozza In Favor
Hunt �
�_ ��r _ Against BY
Sylvester
Tedesco
Adopted by ncil: Date APR 5' i9� Form Appro d by City Attorn y
Cert 'ed Pas y � Secre,#ar BY
gy,
Appr by ;Nayor: D �_ I� Approved by Mayor for Submission to Council
�By BY
�uBUSHE� APR 9 1971