STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

DEPARTMENT OF BUSINESS )

REGULATION, Division of Hotels ) and Restaurants, )

)

Petitioner, )

)

vs. ) CASE NO. 83-1687

) SIKZA MANAGEMENT SERVICES, INC. ) d/b/a KNOXON MOTEL, )

)

Respondent. )

)

RECOMMENDED ORDER

The Division of Administrative Hearings by its duly designated Hearing Officer, Sharyn L. Smith, held a formal hearing in this case on October 10 and December 12, 1983, 1/ in Miami, Florida. The following appearances were entered:

APPEARANCES

For Petitioner: Daniel Bosanko, Esquire

and Tony Boggs, Esquire Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

For Respondent: Warren Jacobs, Esquire

TAFFER AND JACOBS

3301 Northeast Second Avenue Miami, Florida 33137

The issue for determination at the final hearing was whether the Respondent's license should be disciplined for allegedly allowing the Knoxon Motel to be used as a place of prostitution.

Eric Butler, Paul Camacho, Jose Clausell, Carlos Rodriguez, Michael Ahearn, and Thomas Waterson, City of Miami Police Officers, Aaron Manes and Sonia Manes, owners of a motel near the Knoxon Motel, and Clinton Tilman, an investigator with the State Attorney's Office, testified for the Division. Sikandar Karim testified for the Respondent. Petitioner's Exhibits 1-5, 8, 9 and 11 were admitted into evidence. Ruling was reserved on Petitioner's Exhibits 6, 7 and 10, arrest reports for August 17, 1983, September 19, 1983 and September 10,

1983, respectively.

At the conclusion of the initial hearing, counsel for the Division requested the opportunity to call additional witnesses who although subpoenaed, had not appeared. Counsel for the Respondent objected to the testimony at the rescheduled hearing of police officers who were not subpoenaed for the initial

hearing. It was agreed that pages of the transcript would be ordered to ascertain if the Division and the Respondent had entered into an agreement concerning the number and/or identity of any additional witnesses. However, some two months after the hearing, the page or pages in question have not been furnished to the Hearing Officer and any further delay based on this issue is not warranted. Having considered the Respondent's objection, it is concluded that it is not well taken and Respondent's Motion to Strike the witnesses testimony is denied.

Proposed Recommended Orders containing findings of fact have been submitted by the parties and considered in the preparation of this Recommended Order.

When the parties' findings of fact were consistent with the weight of the credible evidence introduced at final hearing, they were adopted and are reflected in this Recommended Order. To the extent that the findings were not consistent with the weight of the credible evidence, they have been either rejected, or when possible, modified to conform to the evidence. Additionally, proposed findings which were subordinate, immaterial or unnecessary have not been adopted.

FINDINGS OF FACT

1. From December 10, 1982, until the present, the Respondent Knoxon Motel, located at 7411 Northeast Biscayne Boulevard, Miami, Florida, was licensed by the Petitioner Division of Hotels and Restaurants, as a motel business and holds license no. 23-08193H.

   
   

2. The Knoxon Motel is located in an area of Miami which is known to be a place where prostitution is open and widespread. This condition has existed for approximately 12 to 13 years. Of the numerous motels and apartments in the area, the Knoxon has presented one of the biggest problems for law enforcement officers in their attempts to stop prostitution activities along Biscayne Boulevard.

   
   

3. It is a common sight to see prostitutes flagging customers from the street and walking back and forth in front of the Knoxon waiting for prospective customers to drive by.

   
   

4. The owner of another motel across the street from the Knoxon, Aaron Manes, has lost customers as a result of prostitutes following them into his motel in search of business. The problem is so serious that a unit of Mane's motel cannot be rented because of the noise that comes from the Knoxon. Manes has called the police over the past year at least once a day with complaints regarding prostitutes around the Knoxon, but so far has been unable to permanently solve the problem.

   
   

5. The management of the Knoxon has been warned by police officers regarding prostitution activities at the Knoxon following the arrest of various females in and around the premises. The prostitutes who frequent the area around the Knoxon typically do not rent rooms themselves but instead use a go- between such as a pimp to secure a place to meet customers. Prostitutes have been observed standing in doorways and in front of open doors at the Knoxon partially and totally nude. This activity has been visible from the street.

   
   

6. The owners of the Knoxon acknowledge that prostitution is a serious problem in the area but denied that their problems were any worse than other motels in the area. Management of the Knoxon considered installing surveillance equipment but decided against it due to a $5,000-$6,000 cost.

7. Given the undisputed prostitute problem in the area, what has been openly observed at the Knoxon, and what had been told to management by police officers, the Respondents knew or reasonably should have known that a serious prostitution problem existed at the motel. Despite such knowledge, specific and substantial steps were not undertaken to solve the problem. The south side of the Knoxon, which is not visible from the manager's office but is the focal point of the building from the street, has been openly utilized by prostitutes without any apparent fear of detection by the Knoxon's management.

   
   

   CONCLUSIONS OF LAW

   
   

8. The Division of Administrative Hearings has jurisdiction over the parties and the subject matter of this dispute. Section 120.57(1), Florida Statutes.

   
   

9. Section 509.32(1), Florida Statutes (1981), requires that the Petitioner enforce all laws regulating public lodging establishments. Licensed public lodging establishments are subject to the provisions of Chapters 796 and 823, Florida Statutes.

   
   

10. Sections 796.01, 796.07 and 823.05, Florida Statutes (1981), make it illegal to maintain a place of assignation, prostitution or lewdness. These statutes are applicable to motels, hotels and other public lodging establishments where such activities may be carried out.

    
    

11. Although no evidence was introduced to demonstrate that the Respondents directly participated in prostitution activities at the Knoxon, the Petitioner established that management was aware of the problem and failed to take any significant steps to eliminate or even discourage prostitutes. As such, the Respondents have permitted the Knoxon to become a public nuisance in violation of Section 823.05, Florida Statutes, and have maintained a public lodging establishment for the purpose of prostitution in violation of Sections

    796.01 and 796.07, Florida Statutes.

    
    

12. The evidence introduced at hearing covering the period December 10, 1982 until May 11, 1983, established that the Respondents are guilty of the charges set forth in the Notice to Show Cause filed in this case.

    
    

13. Petitioner's Exhibits 6, 7 and 10 on which ruling was reserved at the final hearing are admitted solely for purposes of determining an appropriate penalty.

    
    

14. The Petitioner has filed a Proposed Recommended Order which requests that the Respondents motel license be suspended for 60 days. Section 509.261, Florida Statutes, authorizes the Division to suspend a hotel license for a maximum of 12 months or permanently revoke a hotel license. Based on the severity of the problem at the Knoxon and the long standing nature of the problem, a suspension of one year is warranted subject to an appropriate condition. See State of Florida, Department of Business Regulation, Division of Hotels and Restaurants v. Arvigaram, et al., DOAH Case No. 82-3467, Final Order entered February 11, 1983.

RECOMMENDATION

Based on the foregoing findings of fact and conclusions of law, it is RECOMMENDED:

That the Respondent's hotel license no. 23-01893H be suspended for one year subject to the condition that upon the Division of Hotels and Restaurants' being assured that adequate steps have been taken to prevent the use of the premises of the Knoxon for the purpose of prostitution, the suspension would be lifted.

DONE and ENTERED this 17th day of February, 1984, in Tallahassee, Florida.

SHARYN L. SMITH

Hearing Officer

Division of Administrative Hearings 2009 Apalachee Parkway

Tallahassee, Florida 32301

(904)488-8675

FILED with the Clerk of the Division of Administrative Hearings this 17th day of February, 1984.

ENDNOTE

1/ With the concurrence of both parties, this case was rescheduled to permit the Respondent to secure counsel Petitioner to secure the presence of certain witnesses.

COPIES FURNISHED:

Daniel Bosanko, Esquire and Tony Boggs, Esquire

Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Warren Jacobs, Esquire TAFFER AND JACOBS

3301 Northeast Second Avenue Miami, Florida 33137

Harold F.X. Purnell, Esquire General Counsel

Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Sherman Winn, Director

Division of Hotels and Restaurants Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Gary Rutledge, Secretary Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301

Docket for Case No: 83-001687

Orders for Case No: 83-001687