Massage businesses operating in Crown Point will now need a special use permit, the City Council decided by unanimous vote at Monday’s meeting.

Previously, Crown Point lacked a measure of zoning control over these types of businesses setting up shop within city limits.

“Before Ordinance 2024-02-04, massage establishments with a license from the state could open in a business district in Crown Point without coming before a city board or commission,” Crown Point Mayor Pete Land said. “The new ordinance requires the business owner to come before the Board of Zoning Appeals (BZA) and City Council and seek a special use variance. This process allows board members and members of the City Council to review the proposed use to see if it is compatible with the desired zoning district.”

Land said that amending the city’s zoning ordinance was not solely in response to the November 2023 arrest of a Crown Point couple who owned Relax Massage, 1451 Summit St., Crown Point. They were charged with allegedly using their massage business as a front for prostitution and human trafficking, including Jade Massage, 9001 E. 109th Avenue, Winfield.

“We definitely don’t want to have any type of, you know, businesses that detracts from the city and the community,” Land said.

While existing massage businesses are grandfathered under the amended zoning ordinance, any new massage business must now petition the city for a special use permit, Land said.

He indicated that a massage business would be treated like others that require a special use permit, such as a gas station, subject to various zoning laws as well as the judgment of the BZA. The BZA issues a favorable or unfavorable recommendation to the City Council, which has the final say on the matter.

“We want to make sure everybody follows the rules that we have in place and that we’re enforcing those rules,” said Land, noting that there are 35-40 types of businesses for which the city requires a special use permit.

Local massage businesses allegedly front prostitution

In the case of Relax Massage, Guan Yu, 44, and Wujiao Liu, 45, were charged with promotion of human trafficking, a Level 4 felony; promoting prostitution, a Level 5 felony; and failure to remit taxes held in trust, a Level 6 felony, according to a Lake County charging affidavit. In addition, Liu faces charges of money laundering, and battery against a public safety official, both Level 6 felonies.

At Jade Massage, police found $15,000 in cash, including $12,000 in a tote in the kitchen. At the couple’s home on the 600 block of E. 113th Place, Crown Point, they found $70,000 in cash, the affidavit stated.

Liu is also accused of funneling huge amounts of untaxed cash through the Hard Rock Casino in Gary by purchasing gaming chips. Authorities also allege that the two massage parlors were not properly registered with the state to pay sales tax.

Yu and Liu also owned Sakura KJ restaurant, 204 S. Main Street in Crown Point, and Yamato sushi restaurant, 10819 Randolph St. in Winfield. The two restaurants were underreporting taxable income, with each claiming $0 cash income, court documents said.

The pair are set to go to trial on Aug. 19.

Jim Masters is a freelance reporter for the Post-Tribune.