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Minnesota, when it petitioned the Court. Beverly was involved in
the adult entertainment industry, and its operations were based
in a multiuse, multimedia adult entertainment complex known as
the Faust Entertainment Complex (the Faust). The Faust included:
(1) A store that sold adult books, videos, and paraphernalia,
(2) a location that featured live peep shows/rap parlor, (3) a
stage for live entertainment, (4) individual booths for watching
adult films, and (5) a full screen motion picture theater. The
Faust's daily operations were managed by the Hafiz family.
James Hafiz, the family's patriarch, was Beverly's president, and
his wife, Eleanor, and his sons, Peter, Richard, and Stewart,
were Beverly employees. Peter Hafiz was a full-time employee of
Beverly, and his two brothers were part-time employees.
On March 31, 1972, Harry V. Mohney (Mohney) purchased
property located at the corner of Dale Street and University
Avenue in St. Paul, Minnesota, for $80,000. St. Paul is a major
manufacturing and distributing center in the upper Midwest, and
University Avenue is a busy thoroughfare that connects the
central business districts of St. Paul and Minneapolis.
Mohney transferred the property to MIC by warranty deed on
November 14, 1977, and MIC owned the property at the times
relevant herein. MIC had expanded the property received from
Mohney to include 626 University Avenue, and the land size of the
parcels at 620 and 626 University Avenue totaled 14,520 square
feet (hereinafter the property at 620 and 626 University Avenue
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