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Home My WebLink About03 Appeal of Denial of Massage Establishment Application - Tustin Day Spa1TY O (�► ,. AGENDA REPORT' MEETING DATE: JANUARY 28, 2014 TO: CITY OF TUSTIN PLANNING COMMISSION ITEM # 3 FROM: JULIE INTERRANTE, CUSTOMER SERVICE SUPERVISOR SUBJECT: APPEAL OF DENIAL OF MASSAGE ESTABLISHMENT APPLICATION — TUSTIN DAY SPA APPELLANT: LISA HUYNH 14892 STRANYAN CIR. WESTMINSTER, CA 92683 LOCATION: 18121 IRVINE BLVD., SUITES A & B TUSTIN, CA 92780 REQUEST Ms. Lisa Huynh ( "Appellant ") appeals from and requests reconsideration of the Director of Finance's denial of a massage establishment permit application for Tustin Day Spa (18121 Irvine Blvd., Suites A & B, Tustin, CA). The Director of Finance's November 25, 2013 Denial of Massage Establishment Permit Application is included as Attachment "A ". The Appellant's December 2, 2013 written appeal is included as Attachment "B ". JURISDICTION Any decision of the Director of Finance ( "Director") may be appealed to the Planning Commission. (TCC §§ 3731 & 9294(a).) All appeals must be made in writing and must specify the decision appealed from, the specific action or relief sought by the appellant, and the reasons why the action taken by the Director should be modified or reversed. The appeal hearing shall be de novo and the Planning Commission may approve, approve with conditions, or disapprove the matter, or remand the matter to the Director for further proceedings in accordance with directions of the Planning Commission. (TCC § 9294(a).) 975726.1 PC Hearing Report January 28, 2014 Denial of Massage Establishment Permit Application Page 2 BACKGROUND /DISCUSSION On September 18, 2013, the Appellant submitted a massage establishment permit application to the City for Tustin Day Spa, to be located at 18121 Irvine Blvd., Suites A & B, Tustin, CA ( "Proposed Location "). Another massage establishment, known as Aquatic Oasis, had previously operated from the Proposed Location. On August 15, 2013, the Tustin Police Department conducted an undercover investigation of Aquatic Oasis and made an arrest for solicitation of prostitution in violation of California Penal Code section 647. On October 14, 2013, the Director notified the owner of Aquatic Oasis of the City's intent to revoke its massage establishment permit due to violations of Tustin City Code sections 3667 and 3668. On October 28, 2013, an open hearing before an independent Hearing Officer was held to receive and consider all testimony and relevant evidence. Following the presentation of evidence by the City, the Hearing Officer determined that good cause existed to support the revocation of Aquatic Oasis' massage establishment permit. On November 13, 2013, the Director revoked the permit and transmitted notice of said revocation to the owner of Aquatic Oasis. Pursuant to Tustin City Code section 3741, the Director may deny a massage establishment permit for a particular location where, within the preceding twelve months, a permit issued for the same location has been revoked. The City is not required to establish a connection between the revoked establishment and a new applicant in order to deny a massage establishment permit. The Tustin City Code allows for denial based on a prior revoked permit even if the former permittee and the applicant are entirely unrelated. Because of the recent revocation of the permit issued for Aquatic Oasis at the Proposed Location, the Director denied the Appellant's massage establishment permit application on November 25, 2013. Although not necessary for the denial of the massage establishment permit application, City staff has identified several links between the Appellant, Aquatic Oasis, and another massage establishment known as Elegant Spa. Located at 13762 Newport Ave., Suite C, Tustin CA, Elegant Spa was owned and operated by the same proprietor as Aquatic Oasis. Like Aquatic Oasis, the massage establishment permit for Elegant Spa was revoked in November 2013 following the arrest of an employee for solicitation of prostitution in violation of California Penal Code section 647. The facts linking the Appellant to Aquatic Oasis and Elegant Spa include: (1) Two masseuses listed in the Appellant's application materials, Xuan Pham and Tiffany LE, are past employees of Elegant Spa. (See Attachment "C ") (2) An unidentified "agent" submitted the Tustin Day Spa permit application on behalf of Appellant. City staff immediately recognized this agent as the person that had brought massage therapists for Aquatic Oasis as well as Elegant Spa into City Hall to obtain business licenses. 975726.1 PC Hearing Report January 28, 2014 Denial of Massage Establishment Permit Application Page 3 RECOMMENDATION Based on the foregoing, City staff recommends that the Planning Commission uphold the denial of the Appellant's massage establishment permit application. (,l.Q.t1L� v nttcs�� Julib Interrante Customer Service Supervisor Attachments: Pamela Arends -King Director of Finance A. Denial of Massage Establishment Permit Application B. Appellant's written appeal C. Employee Information & Elegant Spa Business License Info 97.5726.1 Attachment Fall =;nance Departnxnt SENT VIA CERTIFIED U.S. MAIL November 25, 2013 Lisa Huynh 14892 Stanyan Cir Westminster, CA 92683 t.J \vJ TUSTIN BUILDING OUR FUTURr HONORIN(, OUR FAIT SUBJECT: DENIAL OF MASSAGE ESTABLISHMENT PERMIT APPLICATION — TUSTIN DAY SPA Dear Ms. Huynh: 1 am writing to inform you that your massage establishment permit application, dated September 17, 2013, for "Tustin Day Spa" (18121 Irvine Blvd. Ste A & B, Tustin, CA) has been denied. Pursuant to Tustin City Code section 3741, the City may deny a massage establishment application for a particular location where, within the preceding twelve- months, a permit issued for the same location has been revoked. On November 13, 2013, the City revoked a massage establishment permit issued to the prior occupants of the above - referenced address. Because a revocation occurred at this location within the past month, the City is denying your application for a massage establishment permit. Please be advised that you may appeal this determination to the Planning Commission within ten (10) calendar days of the date of this writing. (TCC 5F 3731 and 9294(a)). Sincerely, Pamela Arends -King Director of Finance /interim City Treasurer c: Elizabeth A Binsack, Community Development Director Julie Interrante Customer Service Supervisor Scott Reekstin, Principal Planner David Kendig, Woodruff Spradlin & Smart Michael S. Daudt, Woodruff, Spradlin & Smart Charles Celano, Interim Police Chief James Brabeck, Police Sergeant 100 Centennial Way, Tustin, CA 92780 • P (714) 573.3060 • F (714) $32.0825 • www rustencaorg Attachment 0 RECEIVED Lisa Huynh DEC 022013 Tustin Day Spa 18121 Irvine Blvd., Suite A & B BUSINESS LICENSE Tustin, CA 92780 (714) 280 -5215 December 2, 2013 City of Tustin Finance Department 300 Centennial Way, Tustin, CA 92780 Re: Denial of Massage Establishment Permit Application Tustin Day Spa To Whom it may concern: I wish to appeal for the Denial of Massage Establishment Permit Application Tustin Day Spa date on November 25, 2013. Which is the Landlord (Len Miller & Mary Anne Miller), the agent' landlord (Allen P. Kirschbaun, Ton & Associate (Anthony Nguyen & Jimmy) were confirm On September 10, 2013 that the location approve the business (Massage Therapy & Cosmetology) that I'm doing. I entered the lease agreement base on that. Anthony Nguyen & Jimmy are repeatedly that I will received my business license with 2 weeks and asked for $70,000 (include some labor for rehab) to transfer the business to me which I later found out they did not own the business from the beginning. That the reason Anthony & Jimmy were helping me to apply for business license process. From September 10, 2013 until now the landlord took $11,125 for the Deposit and rent which is $4,450/mo. Ton & Associate took $19,000. Not including the materials, times and afford that I put into it. Now, I'm get stuck into the situation that I don't know how to get out, if the City will not consider that location for my business. What am I doing wrong. I'm working very hard with my own capital to bring business & jobs to the city. The City get paid and everyone in the City had the jobs. I believe, it's a win - win solution. I wish & hope the City reconsider my business application ASAP. If you take too much time. you will drain out all my capital. Thank you very much for your timely response, concern & cooperation. Sinc ly, Lisp? 14892 Stanyan Or. / Westminster, CA 92683 (714) 280 -5215 Attachment C Massage Establishment Permit Supplemental Application Name and address of owner and lessor of the owner, submit a copy of the lease and a signed 61 -11-- ---- iJ true names U P 4s 9 •e the business Is to be conducted. If applicant Is not the legal from the owner that a massage establishment will be located on persons I 1 LVD ZIP27 . O Phone 7141 ) —27k,&-'�.-JIS or Intended to be employed, as technicians ity state zIP 1) e WEsT)ujfv1� 26 3 ty State Zip t st WEST TF 9,Z OS -3 tv state - ZIP uF r- L S- 3 City of Tustin, 300 Centennial Way, Tustin, CA 92780 (714) 573 -3144 Fax (714) 573 -3129 t747a5.1 6 W Business License Account 99062222 - XUAN PHAM O Fde Account Search View L3atchProcessing "ecmd fools )jelp X AW 4j e Contact Information 19usiness,rnlomialwri Owner Information License Informaton I Parents I Atl tgw I Ropwtws Cc Ownersfup Type FodwallD[FEIN/SSN) State IDISEIN) ResaleAeeount fSrsle Proprietor - - -� ovow-- - Contrador# Contractor E3qsation Data Date Opened Dale Closed 9268 05/11/2014 f In Cry 1 /15/2012 Rate Type Assesmtertl Type Business Code 7 SIC Code 7299 NA1CS Code Rate Desorption BASED ON GROSS RECEIPTS AsseumeM Descnplion Busnea Code Description SIC Code Description M= 00" Svcs.NEC NAYS Code Description Business Desorption OUT OF CRY MASSAGE THERAPIST @ ELEGANT SPA Business License Account 99062116 . TIFFANY LE o O file Account Search View Qatch Processing Tools HeIP is p . `r Contact Information Business Information I Owner Information License Infomnatior I Perms I AtbbAes 1 Properties Ownership Type FedetallD[FEIN/SSN) State[DISEIN) RemleAccoult .vi � F -- -- Contractor # Contractor Expiration Date Dale Opened Date Closed 25560 09/08/2D13 in Call I10AS/2012 I- - - - - -- Rate Type Rate Desorption A BASED ON GROSS RECEIPTS - Aum=wd Type Assessment Description Business Code Business Code Des *6m SIC Code SIC Code Desorption 7299 ; MiscPermrnd lives. NEC - - -- NAICS Code NAICS Code Description IB_wiress Description POUT OF CITY MASSAGE THERAPIST @ ELEGANT SPA