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DIVISION OF HOTELS AND RESTAURANTS vs. ARVIN JARAM AND JAIRAM ISHWARLEL, D/B/A COACHMAN, 82-003467 (1982)

Court: Division of Administrative Hearings, Florida Number: 82-003467 Visitors: 5
Judges: MARVIN E. CHAVIS
Agency: Department of Business and Professional Regulation
Latest Update: Feb. 17, 1983
Summary: This matter concerns the issue of whether the Respondents' public lodging establishment license numbers 27-01381H and 27-01382H should be suspended for allowing the premises of the Coachman's Inn and the Coachman's Inn Annex to he used for Prostitution. On December 20, 1982, the Director of the ` Division of Hotels and Restaurants entered an emergency order of suspension of the public lodging establishment, license numbers 27-01382H and 27-01381H, and caused this emergency order to be personally
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STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS


STATE OF FLORIDA, DEPARTMENT OF ) BUSINESS REGULATION, DIVISION OF ) HOTELS AND RESTAURANTS, )

)

Petitioner, )

)

vs. ) CASE NO. 82-3467

)

ARVIN JARAM and JAIRAM ) ISHWARLEL d/b/a COACHMAN'S INN ) ANNEX, )

)

Respondent. )

)


RECOMMENDED ORDER


Pursuant to notice, this cause came on for formal hearing before Marvin E. Chavis, duly designated Hearing Officer of the Division of Administrative Hearings, in Pensacola, Florida.


APPEARANCES


For Petitioner: Harry F. X. Purnell, Esquire

General Counsel

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


For Respondents: William J. Green, Esquire

GREEN, DEES and FRANCE

418 North Palafox Street Post Office Box 12602 Pensacola, Florida 32574


ISSUE


This matter concerns the issue of whether the Respondents' public lodging establishment license numbers 27-01381H and 27-01382H should be suspended for allowing the premises of the Coachman's Inn and the Coachman's Inn Annex to he used for Prostitution. On December 20, 1982, the Director of the ` Division of Hotels and Restaurants entered an emergency order of suspension of the public lodging establishment, license numbers 27-01382H and 27-01381H, and caused this emergency order to be personally served upon the Respondents. Simultaneous with the emergency order of suspension, the Director caused to be served upon the Respondents a notice to show cause as to why the above-referenced licenses should not be suspended or revoked for the reasons set forth in the notice to show cause. The notice to show cause specifically alleged:

  1. On and before and subsequent to November 1, 1982, to the date of this Notice, investigation has revealed that the Coachman's Inn has been established, continued and maintained as a premises or place which tends to annoy the com- munity, injure the health of the com- munity, or injure the morals and manners of the people of the community, as a

    premises or place of prostitution, assigna- tion, lewdness, or place or building where any law of the state is violated contrary

    to F.S. 823.05 and F.S. 509.032(1) and F.S. 509.261.


  2. Since on and before November 1, 1980 and subsequent thereto to the date of this Notice, investigation has revealed

that the Coachman's inn has been maintained and operated as a place for the purpose

of lewdness, assignation, or prostitu- tion or a house of ill fame in violation

of F.S. 796.01, F.S. 796.07, F.S. 509.032

(1) and F.S. 509.261.


The Respondent was advised of his right to request a formal hearing and having filed a timely request, a formal hearing was held in this matter on December 29, 1982, at the Regional Service Center, Pensacola, Florida.


The Division of Hotels and Restaurants called as witnesses, Mr. Brian Barton, a police officer for the City of Pensacola assigned to the Major Crimes Division, Vice and Intelligence. The Division also called Mr. Paul Silivos, the owner of a restaurant called Skopelo's which is located across the street from the Coachman's Inn and also called Mr. John W. Peaden, an investigator for. the State Attorney for the First Judicial Circuit and assigned to the Fort Walton Beach office. The last witness called by the Division was Mr.. William Snow, also of the Pensacola splice Department. The Respondent called as its witnesses Mr. Thomas Pelt, the previous owner of the Coachman's Inn; Mrs. Patel, the wife of the present owner; Ronald J. Stafford, a realtor in the Pensacola area; and Mr. Arvin Patel, the Respondent. In rebuttal, the Division called Mr. Steven Paul Bolyard, an investigator with the State Attorney's office of the First Judicial Circuit and assigned to the Escambia County office.


Petitioner offered as exhibits a drawing of the Coachman's Inn which was admitted as Exhibit No. 1; an order of temporary injunction dated November 24, 1982, which was admitted as Petitioner's Exhibit No. 2; and two (2) newspapers published in the Pensacola area which were marked as Petitioner's Exhibit No. 3, but not accepted into evidence. The Respondent offered six (6) exhibits consisting of: Exhibit No. 1, the sales agreement for the purchase of the Coachman's Inn; Exhibit No. 2, a promissory note executed in connection with the purchase of the Coachman's Inn; Exhibit No. 3, a bill of sale for the purchase of personal property; Exhibit No. 4, a security agreement executed in connection with the purchase of the Coachman's Inn; Exhibit No. 5, the registration cards for the Coachman's Inn and Annex since April, 1981; and Exhibit No. 6, the 1980 tax return for the Coachman's Inn. All six (6) of the exhibits offered by the Respondent were admitted into evidence without objection from the Petitioner.

Counsel for both petitioner and Respondent have submitted proposed findings of fact for consideration by the Hearing Officer. To the extent that such findings of fact are not adopted in this Recommended Order, they have been rejected as being irrelevant to the issues in this cause, or as not having been supported by the evidence.


FINDINGS OF FACT


  1. The Present owner of the Coachman's Inn purchased the Coachman's Inn in April, 1981. The motel was purchased for a price of $625,000.00, with

    $100,000.00 of that amount being paid in cash by the present owner at or before closing. Since the purchase of the motel, the owner has made approximately

    $25,000.00 worth of improvements to the motel. These improvements consist of new carpet and bedding.


  2. The Coachman's Inn and Annex are located at 1801 West Cervantes Street in Pensacola, Escambia County, Florida. The motel consists of one main area adjacent to the motel office and an annex located to the west of the main area. The motel has sixty-six (66) rooms of varying sizes and prices. The motel is bordered on the west by a liquor store and across the street by a restaurant.


  3. The Coachman's Inn is located in an area which has had ongoing problems with prostitution since at least 1979. Numerous known prostitutes have operated primarily in the area in and around the Coachman's Inn and the liquor store located to the west of the Coachman's Inn. During 1982, known prostitutes were observed on numerous occasions flagging down and waving to passing motorists from the balconies and parking lot of the Coachman's Inn.


  4. Specifically, since July of 1982, police officers of the Pensacola Police Department and Investigators of the State Attorney's office observed on numerous occasions know prostitutes operating on the premises of the Coachman's Inn. They would stand in the parking lot area of the Coachman's Inn and in front of the rooms or on the balconies of the Coachman's Inn and flag down passing traffic. In July of 1982, Officer Brian Barton of the Pensacola Police Department spoke with Mr. Patel about the prostitutes and informed him that he was going to have to do something to prevent his premises from being utilized for the purposes of prostitution. He was advised at that time that his license would be in jeopardy if he did not take proper steps to eliminate the prostitution. At that time Mr. Patel acknowledged that he was aware of the prostitution problem and that the individuals who were engaged in prostitution were in fact guests in his motel. Since July of 1982, Mr. Barton has made spot checks on a weekly basis and during August and September had ongoing investigations involving the Coachman's Inn. Following his July conversation with Mr. Patel he observed no efforts on the part of the management to stop prostitution. He also observed no decrease in the prostitution activities taking place on the premises of the Coachman's Inn.


  5. The previous owner, Mr. Thomas Pelt, had problems with prostitutes operating in and around the Coachman's Inn from the time he purchased the motel in January, 1978. At the time he sold the motel to the Respondent, he informed him of the various problems he had had with Prostitution. In his first year of operation, Mr. Pelt estimated that he made at least two hundred (200) calls to the Pensacola Police Department and many times was required to make several calls in a single day in order to have the police come out and remove prostitutes from the premises of the Coachman's Inn. During that same time period he hired, for several months, a part-time security guard who was an off-

    duty Pensacola police officer. The security guard was allowed to wear his Pensacola police uniform and was very effective in finally helping to eliminate the prostitutes from operating on the premises of the Coachman's Inn. Mr. Pelt, as a result of his efforts, was successful in ridding the Coachman's Inn of Prostitutes operating on the premises.


  6. On September 15, 1982, Officer Barton, while working a vice operation with two (2) other officers in the area of the Coachman's Inn, was approached by a white female named Betty Salter in the parking lot area of the Coachman's Inn. This contact took place in area adjacent to Room 159 of the motel. Following a short conversation, Officer Barton was invited by Betty Salter and another white female into a room of the motel where he was solicited for prostitution. He then placed Betty Salter under arrest.


  7. On November 6, 192, Mr. Barton accompanied Officers William Snow and Perry Osborne in a vice operation in the area of the Coachman's Inn. Officer Snow's vehicle was wired with a recording device. As Officer Snow passed the Coachman's Inn he was flagged down by a female impersonator named Chris Cambria. Officer Snow pulled into the parking lot of the Coachman's Inn where he was approached by Chris Cambria and invited into a room of the motel. The room was located in the center of the horseshoe shaped area in the eastern portion of the motel. Once in the room, Officer Snow was solicited for sexual acts for pay by Chris Cambria. Mr. Cambria was then placed under arrest. At the time that Officer Snow was originally flagged down by Chris Cambria, Mr. Cambria was standing in the doorway of Room 269 which is the room located in the center of the horseshoe area to the east of the office.


  8. On November 9, 1982, Mr. John W. Peaden, an investigator with the State Attorney's Office for the First Judicial Circuit, conducted an undercover investigation at the Coachman's Inn. Prior to going to the premises of the Coachman's Inn, Mr. Peaden was briefed and shown photographs of known prostitutes in the area. Upon arriving there he saw several known prostitutes in the Darking lot and on the balconies of the Coachman's Inn. On the night of November 9, Mr. Peaden checked in as a guest. Mr. Patel and a lady who appeared to be his wife were in the lobby at the time that Mr. Peaden checked in. From the lobby, Mr. Peaden observed several known prostitutes on the premises of the Coachman's Inn. After leaving the lobby, Mr. Peaden was approached by a black female who asked if he wanted some company for the night. She followed him to the door of his room and as he opened the door, she pushed her way into the room. After entering the room, she made offers of sexual acts for pay. Prices were quoted by her and agreed upon by Mr. Peaden. Mr. Peaden then left the premises of the Coachman's Inn.


  9. When he returned to the Coachman's Inn, he spoke with Mr. Patel who told him to stay away from the black prostitutes because they were bad. Mr. Peaden then asked him about the white prostitutes and their availability. While Mr. Peaden was talking with Mr. Patel in the lobby, a white female and known prostitute named Brenda Howard came into the lobby and appeared to be disoriented and spaced out. She went up to Mr. Patel and asked for a room. At that moment Mr. Patel looked at Mr. Peaden and nodded to Mr. Peaden in a way that appeared to Mr. Peaden to suggest that this was a young lady who was available for prostitution. Mr. Patel gave the young lady Room 213 which is right next door to Room 214 which had been assigned to Mr. Peaden. The young lady wrote only her name on the card and Mr. Patel, as he pulled the card away, said that was enough. Mr. Peaden was charged approximately eighteen dollars ($18.00) for his room and Brenda Howard was charged just over twenty dollars (-

    $20.00) for her room. In Composite Exhibit 5, there is a registration card

    dated November 9, 1982, for a Brenda Howard who was assigned to Room 213 and with incomplete information on the card. After Brenda Howard left the lobby, Mr. Peaden asked Patel how he could make contact with her and Mr. Patel said she is in Room 213 and he could call her on the motel phone. Mr. Peaden returned to his room and attempted to call the young lady in Room 213 but received no answer. He then returned to the lobby of the Coachman's Inn where he contacted Mr. Patel again and informed him that he was unable to get in touch with Brenda Howard. Mr. Patel then tried to call her from the lobby but also received no answer. Mr. Peaden then asked Mr. Patel if she was okay and if there were any problems with diseases. Mr. Patel responded "no"' and said "she will be all right tomorrow, come back then." Mr. Peaden then left the premises of the Coachman's Inn.


  10. On November 10, 1982, Mr. Peaden returned to the Coachman's Inn and again observed known prostitutes on the premises of the Inn. Mr. Peaden was again solicited for sexual acts for pay by a black female L. T. Manuel. Through

    L. T. Manuel, Mr. Peaden also contacted Brenda Howard at Room 201 and made arrangements for Brenda Howard and several other women to provide sexual acts for pay for that night.


  11. Later in the evening of November 10, 1982, Mr. Peaden and an Officer West were approached by two (2) known prostitutes, Pat Smith and Rosa Robinson, in the parking lot of the Coachman's Inn. They offered to perform sexual acts for pay for Mr. Peaden, Officer West, and two (2) other undercover officers. It was agreed that the two (2) women would obtain two (2) other prostitutes to also perform sexual acts for the four (4) investigators. Pat Smith and Rosa Robinson returned with two (2) other women and at that time each woman was paid twenty- five dollars ($25.00) each with marked money for the sexual acts to be performed. After the money was exchanged, the four (4) women were arrested.


  12. On December 8, 1982, Officer Brian Barton observed Phyllis Ford, a known prostitute, talking to a gentleman in a black cadillac in the Coachman's Inn parking lot. She directed him to the area of Room 240 where Chris Cambria was waiting. Room 240 is in clear view of the Coachman's Inn lobby and office and Mr. Patel was in the lobby. After spotting one (1) of the undercover officers, Chris Cambria left the area of Room 240, proceeded to the lobby and was observed talking and laughing with Mr. Patel.


  13. On December 13, Mr. Peaden went with an Officer Jack Kliger to the Coachman's Inn. Upon arriving at the Inn, he again observed known prostitutes in the area. He specifically observed Phyllis Ford in the eastern most area of the Coachman's Inn and Murray Anne Hill walking down the street and into the parking lot of the western annex building of the Coachman's Inn. Both Phyllis Ford and Murray Anne Hill are known prostitutes. He observed Phyllis Ford walk out of Room 260 toward the lobby of the motel. Mr. Peaden then pulled into the parking lot in the area of Room 260. At that time Phyllis Ford was standing at the door of Room 260 and came to the passenger door of his car. She engaged him in conversation and then solicited sexual acts for pay. A price was agreed upon and Mr. Peaden asked her to get into the car to leave the area and she said no, "If you want it, you've got to come into my room." Mr. Peaden then left the area to set up a plan for arrest and upon returning to the Coachman's Inn observed Phyllis Ford in the window of Room 260. She came out of the room and saw Officer West and recognized him and then tried to go back into the room.

    She was then placed under arrest by Mr. Peaden.

  14. The prostitution on the premises of the Coachman's Inn was "wide open" and overt. As late as December 13, known prostitutes were still operating on the premises of the Coachman's Inn in an open and overt manner.


  15. The young ladies who were operating as prostitutes in and around the Coachman's Inn were generally dressed in a casual manner and the clothes they wore were not provocative. Room 214, Room 201 and Room 260 were rooms which were not visible from the office of the Coachman's Inn.


  16. As a part of the November 9 and 10 investigation by Mr. Peaden and the other officers, seven (7) persons were arrested. These people included Jacqueline Blount, Patricia Smith, L. T. Manuel, Brenda Sue Howard, Rosa Hawkins, Rosa Robinson, and Mr.. Patel, the owner.


  17. On November 24, 1952, Circuit Judge Joseph Q. Tarbuck entered an order of temporary injunction. That injunction provided in relevant part:


    The Court being advised that the parties have stipulated to entry of the below temporary injunction enjoining the defendant or agents from knowingly, intentionally or negligently allowing acts of prostitution, assignation, lewdness and violance on the premises

    of the Coachman's Inn, 1801 Nest Cervantes Street, Pensacola. Escambia County, Florida. It is therefore, ordered that the defendant and his agents are hereby temporarily enjoined from maintaining a nuisance on the premises of said Coachman's Inn and, further, that the defendant and his agents shall refrain from allowing acts of prostitution, assignation, lewdness or violance on said premises either knowingly, intentionally or negligently, either through lack

    of ability or diligent effort.


  18. Following the entry of the temporary injunction, Mr. Patel and his wife claimed that they began a policy of not allowing prostitutes to register in the motel and on four (4) or five (5) occasions, called the police and complained. On at least one (1) occasion, which was witnessed by Mr. Thomas Pelt, Mr. Patel went out into the parking lot and asked a known prostitute to leave the premises. There was no other evidence presented as to steps taken by Mr. Patel in eliminating the prostitution problem following the entry of the temporary injunction on November 24. Known prostitutes continued to operate on the premises of the Coachman's Inn after November 24, 1982.


  19. The Respondent, Mr. Arvin Patel, has a substantial investment in the Coachman's Inn and will offer severe financial losses if he is unable to continue operating the motel. Mr. Patel testified that it was his plan to make some additional improvements and attempt to sell the motel by June 1, 1983, if he were allowed to reopen. The Previous owner would be adversely impacted by Mr. Patel's inability to make the four thousand dollar ($4,000.00) per month mortgage payment to the previous owner.

  20. During 1982, MT. Paul Silivos, owner of Skopelo's Restaurant had complaints from customers regarding the prostitution at the Coachman's Inn. He observed no visible prostitution when the Coachman's Inn was owned by Mr. Felt, but described the prostitution at the Coachman's Inn during 1982, as "wide open twenty-four (24) hours a day." All of the witnesses who testified for the Petitioner, described the prostitution at the Coachman's Inn as wide open and overt. This was not denied by Mr. Patel nor did he disagree with the descriptions of these witnesses.


  21. The Respondent, Arvin Patel, was aware prior to November, 1982, that Helen Merriweather was operating as a prostitute in and about the premises of the Coachman's Inn. In approximately April, 1982, Mr. Patel claimed that he had stopped renting a room to her.


  22. Mr. Patel was aware that Rosa Robinson, Murray Anne Hill, Chris Cambria, and L. T. Manuel a/k/a Tonya Tripp were prostitutes operating on and around the premises of the Coachman's Inn. This was revealed by Mr. Patel's claim that he had attempted to stop renting to these individuals at varying times during 1982 because of their prostitution activities.


  23. On December 18, 1982, Chris Cambria was observed by Officer Barton. Chris Cambria was picked up by a white male in a pickup truck and they then drove to Room 240 of the Coachman's Inn. At the time Mr. Patel was in the parking lot of the Coachman's Inn and had a clear, unobstructed view of Room 240.


    CONCLUSIONS OF LAW


  24. The Division of Administrative Hearings has jurisdiction over the parties and subject matter of this action.


  25. Florida Statutes, Section 509.032, requires that the Division of Hotels and Restaurants carry out all provisions of Chapter 509, and all other laws relating to the inspection or regulation of public lodging establishments for the purpose of safeguarding the public health, safety, and welfare.


  26. Licensed public lodging establishments are subject to the provisions of Chapter 823 and 796, Florida Statutes. Florida Statutes, Section 823.05, prohibits the establishment of maintenance of any building as a place of prostitution, assignation, and lewdness and further provides that any establishment so used or maintained shall constitute a nuisance.


  27. Florida Statutes, Section 796.07, prohibits the following specific acts:


    1. To keep, set up, maintain, or operate any place, structure, building, or conveyance for the purpose of lewdness, assignation, or prostitution.

    2. To offer, or to offer or agree to secure, another for the purpose of prostitution, or for any other lewd or indecent act.

    3. To receive, or to offer or agree to receive, any person into any place, structure, building, or conveyance for the purpose of Prostitution, lewdness, or assignation, or to permit any

      person to remain there for such purpose.

  28. In July, 1982, and subsequent thereto, Mr. Patel was aware that numerous known prostitutes were using rooms rented in the Coachman's Inn for the Purposes of prostitution and soliciting for prostitution. He continued to operate the motel and rent rooms to these individuals and took no specific or substantial steps to eliminate prostitution from the Coachman's Inn. Having acknowledged that he was aware that the Coachman's Inn was being used for prostitution purposes in July, 1982, and having taken no reasonable steps subsequent to that time to prevent such use, Mr. Patel maintained and operated a public lodging establishment for the purpose of lewdness, assignation, and prostitution, in violation of Section 796.07.


  29. On November 9, 1982, Respondent, Arvin Patel, offered to secure and did in fact secure a white female for Investigator Peaden for the purpose of prostitution, in violation of Florida Statutes, Section 796.07.


  30. Between July, 1982, and December, 1982, the Respondent received persons into the Coachman's Inn for the purpose of prostitution and permitted known prostitutes to remain on the Premises of the Coachman's Inn for the Purpose of prostitution, in violation of Florida Statutes, Section 796.07. On November 9, 1952, the Respondent, Mr. Arvin Patel, aided and abetted a known prostitute, Brenda Howard, in offering or in agreeing to secure another for the purpose of prostitution, in violation of Florida Statutes, Section 796.07(3)(d), by aiding and abetting Mr. Peaden in purchasing the services of a person engaged in prostitution, as prohibited by Section 796.07 (3)(e)


  31. The open and notorious prostitution activity on the premises of the Coachman's Inn between July 1982, and December 18, 1982, constitute a nuisance under Florida Statutes, Section 823.05. The Respondent, Mr. Arvin Patel, operated the Coachman's Inn with full knowledge of said condition and therefore, knowingly allowed the operation of said nuisance which is contrary to the public health, safety and welfare of citizens of Escambia County and the State of Florida.


  32. The aforementioned violations constitute a violation of Chapter 509 of the Florida Statutes, and therefore are proper grounds for suspension or revocation of the aforementioned licenses pursuant to Florida Statutes, 509.261.


  33. Following the warning of Officer Barton in July, 1982, Mr. Patel took no reasonable steps to eliminate prostitution on the premises of the Coachman's Inn. Following his arrest on November 9, 1982, Mar. Patel took no reasonable steps to eliminate prostitution from the premises of the Coachman's Inn. Following the stipulated and agreed to temporary injunction entered on November 24, 1982, Mr. Patel took no reasonable steps to eliminate prostitution from the premises of the Coachman's Inn. Upon testifying in the formal hearing held herein, Mr. Patel did not deny his knowledge that known prostitutes were operating on a continuing basis on premises of the Coachman's Inn and did not challenge nor disagree with or deny the specific testimony of Officers Barton and Snow and Investigators Peaden and Bolyard.


  34. Mr. Patel and Mr. Thomas Pelt will suffer substantial financial loss if the motel is not allowed to reopen at some point in time.

RECOMMENDATION


Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED:

That public lodging establishment license numbers 27-01382H and 27-01381H be suspended for a period of sixty (60) days.


IT IS FURTHER RECOMMENDED:


That the suspension be lifted prior to the end of the sixty-day Period, upon the Division of Hotels and restaurants being assured that adequate and reasonable steps have. been taken to prevent the use of the premises of the Coachman's Inn for the purpose of prostitution,


DONE and ENTERED this 19th day of January, 1983, in Tallahassee, Florida.


MARVIN E. CHAVIS, Hearing Officer Division of Administrative Hearings The Oakland Building

2009 Apalachee Parkway

Tallahassee, Florida 32301

(904) 488-9675


Filed with the Clerk of the Division of Administrative Hearings this 19th day of January, 1983.


COPIES FURNISHED:


Harold F.X. Purnell, Esquire General Counsel January, Department of Business Regulation 725 South Bronough Street Tallahassee, Florida 32301


William J. Green, Esquire GREEN, DEES and FRANCE

418 North Palafox Street Post Office Box 12602 Pensacola, Florida 32574


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


Sherman S. Winn, Director

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


================================================================= AGENCY FINAL ORDER

=================================================================


STATE OF FLORIDA DEPARTMENT OF BUSINESS REGULATION DIVISION OF HOTELS AND RESTAURANTS


STATE OF FLORIDA, DEPARTMENT OF BUSINESS REGULATION, DIVISION OF HOTELS AND RESTAURANT,


Petitioner,


vs. CASE NO. 82-3467

H & R NOS. 27-01381H

ARVIN JARAM and JAIRAM ISHWARLEL 27-01382H

d/b/a COACHMAN'S INN and COACHMAN'S INN ANNEX,


Respondent.

/


RECOMMENDED ORDER


Pursuant to notice, this cause came on for formal hearing before Marvin E. Chavis, duly designated Hearing Officer of the Division of Administrative Hearings, in Pensacola, Florida.


APPEARANCES


For Petitioner: Harry F.X. Purnell, Esquire

General Counsel

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


For Respondents: William J. Green, Esquire

GREEN, DEES and FRANCE

418 North Palafox Street Post Office Box 1202 Pensacola, Florida 32574


ISSUES


This matter concerns the issue of whether the Respondents' public lodging establishment license numbers 27-01381H and 27-01382H should be suspended four allowing the premises of the Coachman's Inn and the Coachman's Inn Annex to be used for prostitution On December 20, 1982, the Director of the Division of Hotels and Restaurants entered an emergency order of suspension of the public lodging establishment, license numbers 27-01382H and 27-01381H, and caused this emergency order to be personally served upon the Respondents. Simultaneous with

the emergency order of suspension, the Director caused to be served upon the Respondents a notice to show cause as to why the above-referenced licenses should not be suspended or revoked for the reasons set forth in the notice to show cause. The notice to show cause specifically alleged:


  1. On or before and subsequent to November 1, 1982, to the date of this Notice, investigation has revealed that the Coachman's Inn has been established, continued and maintained as a premises or place which tends to annoy the com- munity, injure the health of the com- munity, or injure the morals and manners of the people of the community, as a

    premises or place of prostitution, assigna- tion, lewdness, or place or building where A any law of the state is violated contrary

    to F.S. 823.05 and F.S. 509.032(1) and F.S. 509.261.


  2. Since on and before November 1, 1980 and subsequent thereto the date of

this Notice, investigation has revealed that the Coachman's Inn has been maintained and operated as a place for the purpose

of lewdness, assignation, or prostitu- tion or a house of ill fame in violation

of F.S. 796.01, F.S. 796.07, F.S. 509.032

(1) and F.S. 509.261.


The Respondent was advised of his right to request a formal hearing and having filed a timely request, a formal hearing was held in this matter on December 29, 1982, at the Regional Service Center, Pensacola, Florida.


The Division of Hotels and Restaurants called as witnesses, Mr. Brian Barton, a police officer for the City of Pensacola assigned to the Major Crimes Division, Vice and Intelligence. The Division also called Mr. Paul Silivos, the owner of a restaurant called Skopelo's which is located across the street from the Coachman's Inn and also called Mr. John W. Peaden, an investigator for the State Attorney for the First Judicial Circuit and assigned to the Fort Walton Beach office. The last witness called by the Division was Mr. William Snow, also of the Pensacola Police Department. The Respondent called as its witness Mr. Thomas Pelt, the previous owner of the Coachman's Inn; Mrs. Patel, the wife of the present owner; Ronald J. Stafford, a realtor in the Pensacola area; and Mr. Arvin Patel, the Respondent. In rebuttal, the Division called Mr. Steven Paul Bolyard, an investigator with the State Attorney's office of the First Judicial Circuit and assigned to the Escambia County office.


Petitioner offered as exhibits a drawing of the Coachman's Inn which was admitted-as Exhibit No. 1; an order of temporary injunction dated November 24, 1982, which was admitted as Petitioner's Exhibit No. 2; and two (2) newspapers published in the Pensacola area which were marked as Petitioner's Exhibit No. 3, but not accepted into evidence. The Respondent offered six (6) exhibits consisting of: Exhibit No. 1, the sales agreement for the purchase of the Coachman's Inn; Exhibit No. 2, a promissory note executed in connection with the purchase of the Coachman's Inn; Exhibit No. 3, a bill of sale for the purchase of personal property; Exhibit No. 4, a security agreement executed in connection

with the purchase of the Coachman's Inn; Exhibit No. 5, the registration cards for the Coachman's Inn and Annex since April, 1981; and Exhibit No. 6, the 1980 tax return for the Coachman's Inn. All six (6) of the exhibits offered by the Respondent were admitted into evidence without objection from the Petitioner.


Counsel for both Petitioner and Respondent have submitted proposed findings of fact for consideration by the Hearing Officer. To the extent that such findings of fact were not adopted in the Recommended Order, they were rejected as being irrelevant to the issues In this cause, or as not having been supported by the evidence.


FINDINGS OF FACT


  1. The present owner of the Coachman's Inn purchased the Coachman's Inn in April, 1981. The motel was purchased for a price of $625,000.00, with

    $100,000.00 of that amount being paid in cash by the present owner at or before closing. Since the purchase of the motel, the owner has made approximately

    $25,000.00 worth of improvements to the motel. These improvements consist of new carpet and bedding.


  2. The Coachman's Inn and Annex are located at 1801 West Cervantes Street in Pensacola, Escambia County, Florida. The motel consists of one main area adjacent to the motel office and an annex located to the west of the main area. The motel has sixty-six (66) rooms of varying sizes and prices. The motel is bordered on the west by a liquor store and across the street by a restaurant.


  3. The Coachman's Inn is located in an area which has had ongoing problems with prostitution since at least 1979. Numerous known prostitutes have operated primarily in the area in and around the Coachman's Inn and the liquor store located to the west of the Coachman's Inn. During 1982, known prostitutes were observed on numerous occasions flagging down and waving to passing motorists from the balconies and parking lot of the Coachman's Inn.


  4. Specifically, since July of 1982, police officers of the Pensacola Police Department and Investigators of the State Attorney's office observed on numerous occasions known prostitutes operating on the premises of the Coachman's Inn. They would stand in the parking lot area of the Coachman's Inn and in front of the rooms or on the balconies of the Coachman's Inn and flag down passing traffic. In July of 1982, Officer Brian Barton of the Pensacola Police Department spoke with Mr. Patel about the prostitutes and informed him that he was going to have to do something to prevent his premises from being utilized for the purposes of prostitution. He was advised at that time that his license would be in jeopardy if he did not take proper steps to eliminate the prostitution. At that time Mr. Patel acknowledged that he was aware of the prostitution problem and that the individuals who were engaged in prostitution were in fact guests in his motel. Since July of 1982, Mr. Barton has made spot checks on a weekly basis and during August and September had ongoing investigations involving the Coachman's Inn. Following his July conversation with Mr. Patel he observed no efforts on the part of the management to stop prostitution. He also observed no decrease in the prostitution activities taking place on the premises of the Coachman's Inn.


  5. The previous owner, Mr. Thomas Pelt, had problems with prostitutes operating in and around the Coachman's Inn from the time he purchased the motel in January, 1978. At the time he sold the motel to the Respondent, he informed him of the various problems he had had with prostitution. In his first year of operation, Mr. Pelt estimated that he made at least two hundred (200) calls to

    the Pensacola Police Department and many times was required to make several calls in a single day in order to have the police come out and remove prostitutes from the premises of the Coachman's Inn. During that same time period he hired, for several months, a part-time security guard who was an off- duty Pensacola police officer. The security guard was allowed to wear his Pensacola police uniform and was very effective in finally helping to eliminate the prostitutes from operating on the premises of the Coachman's Inn. Mr. Pelt, as a result of his efforts, was successful in ridding the Coachman's Inn of prostitutes operating on the premises.


  6. On September 15, 1982, Officer Barton, while working a vice operation with two (2) other officers in the area of the Coachman's Inn, was approached by a white female named Betty Salter in the parking lot area of the ,Coachman's Inn. This contact took place in the area adjacent to Room 159 of the motel. Following a short conversation, Officer Barton was invited by Betty Salter and another white female into a room of the motel where he was solicited for prostitution. He then placed Betty Salter under arrest.


  7. On November 6, 1982, Mr. Barton accompanied Officers William Snow and Perry Osborne in a vice operation in the area of the Coachman's Inn. Officer Snow's vehicle was wired with a recording device. As Officer Snow passed the Coachman's Inn he was flagged down by a female impersonator named Chris Cambria. Officer Snow pulled into the parking lot of the Coachman's Inn where he was approached ,by Chris Cambria and invited into a room of the motel. The room was located in the center of the horseshoe shaped area in the eastern portion of the motel. Once in the room, Officer Snow was solicited for sexual acts for pay by Chris Cambria. Mr. Cambria was then placed under arrest. At the time that Officer Snow was originally flagged down by Chris Cambria, Mr. Cambria was standing in the doorway of Room 269 which is the room located in the center of the horseshoe area to the east of the office.


  8. On November 9, 1982, Mr. John W. Peaden, an investigator with the State Attorney's Office for the First Judicial Circuit, conducted an undercover investigation at the Coachman's Inn. Prior to going to the premises of the Coachman's Inn, Mr. Peaden was briefed and shown photographs of known prostitutes in the area. Upon arriving there he saw several known prostitutes in the parking lot and on the balconies of the Coachman's Inn. On the night of November 9, Mr. Peaden checked in as a guest. Mr. Patel and a lady who appeared to be his wife were in the lobby at the time that Mr. Peaden checked in. From the lobby, Mr. Peaden observed several known prostitutes on the premises of the Coachman's Inn. After leaving the lobby, Mr. Peaden was approached by a black female who asked if he wanted some company for the night. She followed him to the door of his room and as he opened the door, she pushed her way into the room. After entering the room, she made offers of sexual acts for pay. Prices were quoted by her and agreed upon by Mr. Peaden. Mr. Peaden then left the premises of the Coachman's Inn.


  9. When he returned to the Coachman's Inn, he spoke with Mr. Patel who told him to stay away from the black prostitutes because they were bad. Mr. Peaden then asked him about the white prostitutes and their availability. While Mr. Peaden was talking with Mr. Patel in the lobby, a white female and known prostitute named Brenda Howard came into the lobby and appeared to be disoriented and spaced out. She went up to Mr. Patel and asked for a room. At that moment Mr. Patel looked at Mr. Peaden and nodded to Mr. Peaden in a way that appeared to Mr. Peaden to suggest that this was a young lady who was available for prostitution. Mr. Patel gave the young lady Room 213 which is right next door to Room 214 which had been assigned to Mr. Peaden. The young

    lady wrote only her name on the card and Mr. Patel, as he pulled the card away, said that was enough. Mr. Peaden was charged approximately eighteen dollars ($18.00) for his room and Brenda Howard was charged just over twenty dollars ($20.00) for her room. In Composite Exhibit 5, there is a registration card dated November 9, 1982, for a Brenda Howard who was assigned to Room 213 and with incomplete information on the card. After Brenda Howard left the lobby, Mr. Peaden asked Patel how he could make contact with her and Mr. Patel said she is in Room 213 and he could call her on the motel phone. Mr. Peaden returned to his room and attempted to all the young lady in Room 213 but received no answer. He then returned to the lobby of the Coachman's Inn where he contacted Mr. Patel again and informed him that he was unable to get in touch with Brenda Howard.

    Mr. Patel then tried to call her from the lobby but also received no answer. Mr. Peaden then asked Mr. Patel if she was okay and if there were any problems with diseases. Mr. Patel responded "no" and said "she will be all right tomorrow, come back then." Mr. Peaden then left the premises of the Coachman's Inn.


  10. On November 10, 1982, Mr. Peaden returned to the Coachman's Inn and again observed known prostitutes on the premises of the Inn. Mr. Peaden was again solicited for sexual acts for pay by a black female, L. T. Manuel. Through L. T. Manuel, Mr. Peaden also contacted Brenda Howard at Room 201 and made arrangements for Brenda Howard and several other women to provide sexual acts for pay for that night.


  11. Later in the evening of November 10, 1982, Mr. Peaden and an Officer West were approached by two (2) known prostitutes, Pat Smith and Rosa Robinson, in the parking lot of the Coachman's Inn. They offered to perform sexual acts for pay for Mr. Peaden, Officer West, and two (2) other undercover officers. It was agreed that the two (2) women would obtain two (2) other prostitutes to also perform sexual acts for the four (4) investigators. Pat Smith and Rosa Robinson returned with two (2) other women and at that time each woman was paid twenty- five dollars ($25.00) each with marked money for the sexual acts to be performed. After the money was exchanged, the four (4) women were arrested.


  12. On December 8, 1982, Officer Bran Barton observed Phyllis Ford, a known prostitute, talking to a gentleman in a black cadillac in the Coachman's Inn parking lot. She directed him to the area of Room 240 where Chris Cambria was waiting. Room 240 is in clear view of the Coachman's Inn lobby and office and Mr. Patel was in the lobby. After spotting one (1) of, the undercover officers, Chris Cambria left the area of Room 240, proceeded to the lobby and was observed talking and laughing with Mr. Patel.


  13. On December 13, Mr. Peaden went with an Officer Jack Kiker to the Coachman's Inn. Upon arriving at the Inn, he again observed known prostitutes in the area. He specifically observed Phylis Ford in the eastern most area of the Coachman's Inn and Murray Anne Hill walking down the street and into the parking lot of the western annex building of the Coachman's Inn. Both Phyllis Ford and Murray Anne Hill are known prostitutes. He observed Phyllis Ford walk out of Room 260 toward the lobby of the motel. Mr. Peaden then pulled into the parking lot in the area of Room 260. At that time Phyllis Ford was standing at the door of Room 260 and came to the passenger door of his car. She engaged him in conversation and then solicited sexual acts for Pay. A price was agreed upon and Mr. Peaden asked her to get into the car to leave the area and she said no, "If you want it, you've got to come into my rooms Mr. Peaden then left the area to set up a plan for arrest and upon returning to the Coachman's Inn observed Phyllis Ford in the window of Room 260. She came out of the room and saw

    Officer West and recognized him and then tried to go back into the room. She was then placed under arrest by Mr. Peaden.


  14. The prostitution on the premises of the Coachman's Inn was "wide open" and overt. As late as December 13, known prostitutes were still operating on the premises of the Coachman's Inn in an open and overt manner.


  15. The young ladies who were operating as prostitutes in and around the Coachman's Inn were generally dressed in a casual manner and the clothes they wore were not Provocative. Room 214, Room 201 and Room 260 were rooms which were not visible from the office of the Coachman's Inn.


  16. As a part of the November 9 and 10 investigation by Mr. Peaden and the other officers, seven (7) persons were arrested. These People included Jacqueline Blount, Patricia Smith, L. T. Manuel, Brenda Sue Howard, Rosa Hawkins Rosa Robinson, and Mr. Patel, the owner.


  17. On November 24, 1982,, Circuit Judge Joseph Q. Tarbuck entered an order of temporary injunction. That injunction Provided in relevant part:


    The Court being advised that the parties have stipulated to entry of the below temporary injunction enjoining the defendant or agents from knowingly, intentionally or negligently allowing acts of prostitution, assignation, lewdness and violence on the premises

    of the Coachman's Inn, 1801 West Cervantes Street, Pensacola, Escambia County, Florida. It is therefore, ordered that the defendant and his agents are hereby temporarily enjoined from maintaining a nuisance on the premises of said Coachman's Inn and, further, that the defendant and his agents shall refrain from allowing acts of Prostitution, assignation, lewdness or violence on said Premises either knowingly, intentionally or negligently, either through lack

    of ability or diligent effort.


  18. Following the entry of the temporary injunction, Mr. Patel and his wife claimed that they began a policy of not allowing prostitutes to register in the motel and on four (4) or five (5) occasions, called the police and complained. On at least one (1) occasion, which was witnessed by Mr. Thomas Pelt, Mr. Patel went out into the parking lot and asked a known prostitute to leave the premises. There was no other evidence presented as to steps taken by Mr. Patel in eliminating the prostitution problem following the entry of the temporary injunction on November 25. Known Prostitutes continued to operate on the premises of the Coachman's Inn after November 24, 1982.


  19. The Respondent, Mr. Arvin Patel, has a substantial investment in the Coachman's Inn and will suffer severe financial losses if he is unable to continue operating the motel. Mr. Patel testified that it was his plan to make some additional improvements and attempt to sell the motel by June 1, 1983, if be were allowed to reopen. The previous owner would be adversely impacted by

    Mr. Patel's inability to make the four thousand dollar ($4,000.00) per month mortgage payment to the previous owner.


  20. During 1982, Mr. Paul Silivos, owner of Skopelo's Restaurant had complaints from customers regarding the Prostitution at the Coachman's Inn. He observed no visible prostitution when the Coachman's Inn was owned by Mr. Pelt, but described the Prostitution at the Coachman's Inn during 1982, as "wide open twenty-four (24) hours a day." All of the witnesses who testified for the Petitioner, described the prostitution at the Coachman's Inn as wide open and overt. This was not denied by Mr. Patel nor did he disagree with the descriptions of these witnesses.


  21. The Respondent, Arvin Patel, was aware Prior to November, 1982, that Helen Merriweather was operating as a prostitute in and about the premises of the Coachman's Inn. In approximately April, 1982, Mr. Patel claimed that he had stopped renting a room to her.


  22. Mr. Patel was aware that Rosa Robinson, Murray Anne Bill, Chris Cambria, and L. T. Manuel a/k/a Tonya Tripp were prostitutes operating on and around the premises of the Coachman's Inn. This was revealed by Mr. Patel's claim that he had attempted to stop renting to these individuals at varying times during 1982 because of their prostitution activities.


  23. On December 18, 1982, Chris Cambria was observed by Officer Barton. Chris Cambria was picked up by a white male in a pickup truck and they then drove to Room 240 of the Coachman's Inn. At the time Mr. Patel was in the parking lot of the Coachman's Inn and had a clear, unobstructed view of Room 240.


    CONCLUSIONS OF LAW


  24. The Division of Administrative Hearings has jurisdiction over the parties and subject matter of this action.


  25. Florida Statutes, Section 509.032, requires that the Division of Hotels and Restaurants carry out all provisions of Chapter 509, and all other laws relating to the inspection or regulation of public lodging establishments for the purpose of safeguarding the public health, safety, and welfare.


  26. Licensed public lodging establishments are subject to the provisions of Chapter 823 and 796, Florida Statutes. Florida Statutes, Section 823.05, prohibits the establishment of maintenance of any building as a place of Prostitution, assignation, and lewdness and further provides that any establishment so used or maintained shall constitute a nuisance.


  27. Florida Statutes, Section 796.07(2) , prohibits the following acts:


    1. To keep, set up, maintain, or operate any place, structure, building, or conveyance for the purpose of lewdness, assignation, or prostitution.

    2. To offer, or to offer or agree to secure, another for the Purpose of prostitution, or for any other lewd or indecent act.

    3. To receive, or to offer or agree to receive, any person into any place, structure, building, or conveyance for the purpose of prostitution,

      lewdness, or assignation, or to permit any person to remain there for such purpose.


  28. In July, 1982, and subsequent thereto, Mr. Patel was aware that numerous known prostitutes were using rooms rented in the Coachman's Inn for the purposes of prostitution and soliciting for prostitution. He continued to operate the motel and rent rooms to these individuals and took no specific or substantial steps to eliminate prostitution from the Coachman's Inn. Having acknowledged that he was aware that the Coachman's Inn was being used for Prostitution purposes in July, 1982, and having taken no reasonable steps subsequent to that time to prevent such use, Mr. Patel maintained and operated a public lodging establishment for the Purpose of lewdness, assignation, and prostitution, in violation of Section 796.07.


  29. On November 9, 1982, Respondent, Arvin Patel, offered to secure and did in fact secure a white female for Investigator Peaden for the purpose of prostitution, in violation of Florida Statutes, Section 796.07.


  30. Between July, 1982, and December, 1982, the Respondent received persons into the Coachman's Inn for the purpose of prostitution and permitted known prostitutes to remain on the premises of the Coachman's Inn for the purpose of prostitution, in violation of Florida Statutes, Section 796.07. On November 9, 1982, the Respondent, Mr. Arvin Patel, aided and abetted a known prostitute, Brenda Howard, in offering or in agreeing to secure another for the purpose of prostitution, in violation of Florida Statutes, Section 796.07 (3)(d)

    , by aiding and abetting Mr. Peaden in purchasing the services of a person engaged in prostitution, as prohibited by Section 796.07(3)(e)


  31. The omen and notorious prostitution activity on the Premises of the Coachman's Inn between July 1982, and December 18, 1982, constitute a nuisance under Florida Statutes, Section 823.05. The Respondent, Mr. Arvin Patel, operated the Coachman's Inn with full knowledge of said condition and therefore, knowingly allowed the operation of said nuisance which is contrary to the public health, safety and welfare of citizens of Escambia County and the State of Florida.


  32. The aforementioned violations constitute a violation of Chapter 509 of the Florida Statutes, and therefore are proper grounds for suspension or revocation of the aforementioned licenses pursuant to Florida Statutes, Section 509.261.


  33. Following the warning of Officer Barton in July, 1982, Mr. Patel took no reasonable steps to eliminate Prostitution on the premises of the Coachman's Inn. Following his arrest on November 9, 1982, Mr. Patel took no reasonable steps to eliminate prostitution from the premises of the Coachman's Inn. Following the stipulated and agreed to temporary injunction entered on November 24, 1902, Mr. Patel took no reasonable steps to eliminate prostitution from the premises of the Coachman's Inn. Upon testifying in the formal hearing held in this cause, Mr. Patel did not deny his knowledge that known prostitutes were operating on a continuing basis on premises of the Coachman's Inn and did not challenge nor disagree with or deny the specific testimony of Officers Barton and Snow and Investigators Peaden and Bolyard.

ORDER


Based upon the foregoing Findings of Fact and Conclusions of Law and based upon a review of the record, it is


ORDERED


That public lodging establishment numbers 27-01382H and 27-01381H be suspended for a period of one (1) year.


DONE AND ORDERED this 11th day of February, 1983, in Tallahassee, Florida.


SHERMAN S. WINN, DIRECTOR

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


Copies furnished:


WILLIAM J. GREEN, ESQUIRE

Green, Dees and France

418 North Palafox Street

P.O. Box 12602 Pensacola, Florida 32574


HAROLD F. X. PURNELL, GENERAL COUNSEL

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


Docket for Case No: 82-003467
Issue Date Proceedings
Feb. 17, 1983 Final Order filed.
Jan. 19, 1983 Recommended Order sent out. CASE CLOSED.

Orders for Case No: 82-003467
Issue Date Document Summary
Feb. 11, 1983 Agency Final Order
Jan. 19, 1983 Recommended Order Suspend license for sixty days for allowing prostitution on premises.
Source:  Florida - Division of Administrative Hearings

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