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Shakopee City Councilwoman's Spa Shuts Down, Leaving Customers Out Of Money

MINNEAPOLIS (WCCO) -- Customers are out hundreds of dollars in gift cards after a Twin Cities spa closed without warning.

I-Zen Spa in Shakopee went out of business in November. The company was evicted for not paying rent. Now, customers say they're not getting any answers. But as WCCO's Jennifer Mayerle found, they're also upset with an elected official.

A woman showed up for a massage only to learn I-Zen Spa is out of business, And customers are out of money.

"Mine was a gift for my birthday from my boyfriend," Nicole Burnham said.

"I paid cash for it, just got a $50 gift card," Tiffany Ellingson said.

"I am probably out about $400," Michelle Johnson said.

The Shakopee spa closed in November without warning. Dozens of customers have gift cards in hand that are now worth nothing.

"I've sent emails. I haven't heard back from any of the emails, the business is closed, so," Ellingson said.

Kathi Mocol owned the business with her husband. We attempted to get answers that customers couldn't.

"Businesses close every day, why is this a story?" Mocol said.

"Because people are out money and they're upset and they've contacted us, so we're coming to talk to you about it," Mayerle said.

Mocol replied, "No thanks."

Mocol is a Shakopee City Council member. Her unsuccessful run for Mayor ended days before the spa closed. The campaign touted her experience as "a successful Shakopee based business woman."

Mocol still sits on the council. Her position concerns customers who are constituents.

"If I'm voting for someone for office, I want them to be honest and trustworthy, and I just don't feel the way they conducted business was either of those things," Ellingson said.

"How can we trust her if she can't run her own business," Johnson said.

"Businesses close every day. I didn't do anything illegal," Mocol told Mayerle.

"People are concerned you were running for mayor while your business was going under," Mayerle said.

"Thanks," Mocol said and then closed the door.

Mocol later emailed WCCO:

"As with any business venture, I-Zen Spa has had its ups and downs. We celebrated over seven years at our current location and we enjoyed serving the Shakopee area.

Unfortunately, being a specialized business we found it difficult to hire and retain staff south of the Minnesota River. Enrollment at massage schools is down across the Metro due to DEED's funding of financial aid to massage schools. Large chains have the resources to pay large bonuses that we simply could not. But even those businesses are short staffed.

We did find a few places interested in our gift cards but upon the first communications with clients they chose to withdraw. Those businesses were offering help in good faith but found clients anger and threats more than they wished to deal with.

The Minnesota Attorney General's website has specific information on gift cards. We have also consulted with our attorney on this matter.

As I said, businesses close everyday. I am not sure why this is newsworthy. I have had many restaurants close that I had gift cards to. I doubt that made it to your news desk."

City of Shakopee City Administrator William Reynods said this is not a city matter:

"We have council members and committee members from all walks of life including retired, small business owners, professionals and non-professional. Their employment status or success or struggles as a small business owner wouldn't be something that we would be involved in. All of our members bring value to our organization through the application of their life experiences – which include success and failure."

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