Council denies license to massage parlor charged with prostitution

The Minneapolis City Council has voted to deny a business license to a Lake Street massage parlor based on allegations it was actually a brothel.

A Hennepin County judge dismissed the prostitution charges against Kim Yi's earlier this month, because an undercover Minneapolis police officer engaged in sexual contact with a woman there beyond what was necessary to investigate the crime. The judge called the officer's conduct "outrageous." The city has since suspended undercover prostitution stings.

Attorney Randall Tigue, who represents Kim Yi's, says its owner may appeal the licensing decision.

"My client has not made a decision about what to do yet. But I think the fact that all the prostitution charges were dismissed makes it more likely that that's going to happen," Tigue said.

An administrative hearing officer noted last month that Kim Yi's employees were not certified massage therapists and only accepted cash payments. The walls were covered with mirrors and there was "an onsite cat to manage a rat problem."