(A) General.
(1) Licenses required. All establishments, including any business operating at the time this subchapter becomes effective, operating or intending to operate an adult-oriented business, shall apply for and obtain a license from the city. A person is in violation of the city ordinance if he or she operates an adult-oriented business without a valid license issued by the city.
(2) Applications. An application for a license must be made on a form provided by the city.
(a) The application must be accompanied by a sketch or diagram showing the configuration of the premises, including a statement of the total floor space occupied by the business. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches.
(b) The applicant must be qualified according to the provisions of this subchapter and the premises must be inspected and found to be in compliance with the appropriate state, county and local law and codes by the Health Official, Fire Marshal and Building Official.
(c) All employees of an adult-oriented business must be licensed as an adult-oriented business employee by the city pursuant to this chapter.
(d) Application for license shall contain the following and shall be supplemented in writing by certified mail, return receipt requested, to the enforcement officer within ten working days of a change of circumstances which would render the information originally submitted false or incomplete:
1. Name, business location, business mailing address, phone number and legal description of the property to be used;
2. The full true names and any other names used in the preceding five years, addresses, phone numbers, birthdates of the owners, lessees (if any), the operator or manager and all employees;
3. Either a set of fingerprints suitable for conducting necessary background checks pursuant to this subchapter, or the applicant’s Social Security number, to be used for the same purpose;
4. The names, addresses and phone numbers of two persons, who shall be residents of the state, and who may be called upon to attest to the applicant’s, manager’s or operator’s character;
5. Whether the applicant, manager or operator has ever been convicted of a crime or offense other than a traffic offense and, if so, complete and accurate information detailing the disposition thereof;
6. The names and addresses of all creditors of the applicant, owner, lessee or manager regarding credit which has been extended for the purposes of constructing, equipping, maintaining, operating, furnishing or acquiring the premises, personal effects, equipment or anything incidental to the establishment, maintenance and operation of the business; and
7. Written proof of age, in the form of either:
a. A copy of a birth certificate with a current photo;
b. A current driver’s license with picture; or
c. Other picture identification document issued by a government agency.
(e) If the application is made on behalf of the corporation, joint business venture, partnership or any legally constituted business association, it shall submit along with its application accurate and complete business records showing the names, address and birth dates of all individuals having an interest in the business, including partners, officers, owners and creditors furnishing credit for the establishment, acquisition, maintenance and furnishings of the business. In the case of a corporation, the names, addresses and birth dates of all officers, general managers, members of the board of directors, as well as any creditors who have extended credit for the acquisition, maintenance, operation or furnishing or the establishment, including the purchase or acquisition of any items of personal property for use in the operation.
(f) All applicants shall furnish to the city, along with their applications, complete and accurate documentation establishing the interest of the applicant and any other person having an interest in the premises upon which the building is proposed to be located or the furnishings thereof, personal property thereof or the operation or maintenance thereof. Documentation shall be in the form of a lease, deed, contract for deed, mortgage deed, mortgage credit arrangement, loan agreements, security agreements and any other documents establishing the interest of the applicant or any other person in the operation, acquisition or maintenance of the enterprise.
(3) Application/applicant disqualification. Any one of the following items shall invalidate the application or disqualify the applicant from submitting an application:
(a) The license fee required by this chapter has not been paid; and
(b) An applicant has been convicted of a crime involving any one of the following offenses:
1. Any sex crimes, as defined by M.S. §§ 609.293 through 609.352, inclusive, as they may be amended from time to time, or as defined by any ordinance or statute in conformity therewith;
2. Any obscenity crime, as defined by M.S. §§ 617.293 et seq., as it may be amended from time to time, or as defined by any ordinance or statute in conformity therewith, for which:
a. Less than two years have elapsed since the date of conviction or the date of release from confinement imposed for the conviction, whichever is the later date, if the conviction is of a misdemeanor offense;
b. Less than five years have elapsed since the date of the last conviction or the date of release from confinement for the conviction, whichever is the later date, if the conviction is a felony offense; or
c. Less than five years have elapsed since the date of the last conviction or the date of release from confinement for the last conviction, whichever is the later date, if the conviction is two or more misdemeanor offenses or a combination of misdemeanor offenses occurring within any 24-hour period.
3. The fact that a conviction is being appealed from shall have no effect on disqualification of the applicant or applicant’s spouse.
(4) Requalification. An applicant who has been convicted of an offense listed in division (A)(3) above may qualify for an adult-oriented license only when the time period required by division (A)(3)(b)2. above has elapsed.
(5) Posting. The license, if granted, shall state on its face the name of the person or persons to whom it is granted, the expiration date and the address of the adult-oriented business. The license shall be posted in a conspicuous location near the entrance to the adult-oriented business so that it may be easily read at any time.
(6) Council action. The City Council shall act to approve or disapprove the license application within 120 days from the date the application was submitted; provided that, the application contains all of the information required by this subchapter. If the application is deficient, the Council shall act on the application within 120 days from the date that the deficiency has been corrected. The City Administrator shall notify the applicant of the deficiencies in the application.
(7) Appeals. Within 90 days after the decision by the Council, the applicant may appeal to the District Court by serving a notice upon the Mayor or City Administrator.
(B) Investigation and issuance. The City Council shall direct the Police Department or County Sheriff to investigate all facts set forth in the application. An advance fee as set forth in § 33.01 shall be submitted with the application to defray the city’s costs and expenses associated with the background investigation. After the background investigation has been completed and all information required by the application has been submitted to the city, the City Council shall determine whether to grant or to deny the license application.
(C) License fees. Fees shall be established by City Council resolution on the fee structure.
(D) Inspection.
(1) Access. An applicant or licensee shall permit health officials, representatives of the Police Department, Zoning Administrator and Building Inspection Division, County Sheriff’s office and Fire Department to inspect the premises of an adult-oriented business for the purpose of ensuring compliance with the law and city ordinance at any time it is occupied or open for business.
(2) Refusal to permit inspections. A person who operates an adult-oriented business or his or her agent or employee commits an offense if he or she refuses to permit a lawful inspection of the premises by health officials, representatives of the Police Department, County Sheriff’s Department, Fire Department, Zoning Administrator or Building Inspection Division at any time it is occupied or open for business. Refusal to permit inspections may result in the suspension of the license as provided for in division (F) below.
(3) Exceptions. The provisions of this section do not apply to areas of an adult motel which are currently being rented by a customer for uses as a permanent or temporary habitation.
(E) Expiration and renewal.
(1) Expiration. Each license shall expire at the end of the calendar year and may be renewed only by making application as provided for in § 152.171 of this chapter. Application for renewal must be made at least 60 days before the expiration date, and when made less than 60 days before the expiration date, the expiration of the license will be unaffected.
(2) Denial of renewal. When the city denies renewal of a license, the applicant shall not be issued a license for one year from the date of denial. If, subsequent to denial, the city finds that the basis for denial of the renewal license has been corrected or abated, the applicant may be granted a license if at least 90 days have elapse since the denial date became final.
(F) Suspension.
(1) Causes of suspension. The city may suspend a license for a period not to exceed 30 days if it determines that a licensee or an employee of a licensee has:
(a) Violated or is not in compliance with any provision of this chapter;
(b) Engaged in the use of alcoholic beverages while on the adult-oriented business premises. Refused to allow an inspection of the adult-oriented business premises as authorized by this chapter. Knowingly permitted gambling by any person on the adult-oriented business premises; and/or
(c) Demonstrated the inability to operate or manage an adult-oriented business in a peaceful and law-abiding manner, thus necessitating action by law enforcement officers.
(2) Notice. A suspension by the city shall be preceded by written notice to the licensee and before a hearing. The notice shall give at least ten-days’ notice of the time and place of the hearing and shall state the nature of the charges against the licensee. The notice may be served upon the licensee personally, or by leaving the same at the licensee’s business premises with the person in charge thereof.
(G) Revocation.
(1) Suspended licenses. The city may revoke a license if a cause of suspension in division (F) above occurs and the license has been suspended within the preceding 12 months.
(2) Causes of revocation. The city shall revoke a license if it determines that:
(a) A licensee gave false or misleading information in the material submitted to the city during the application process;
(b) A licensee or an employee knowingly allowed possession, use or sale of controlled substances on the premises;
(c) A licensee or an employee has knowingly allowed prostitution on the premises;
(d) A licensee or an employee knowingly operated the adult-oriented business during a period of time when the licensee’s license was suspended;
(e) A licensee has been convicted of an offense listed in division (A)(3) above, for which the time period required in division (A)(3)(b)2. above, has not elapsed;
(f) On two or more occasions within a 12-month period, a person or persons committed an offense occurring in or on the licensed premises of a crime listed in division (A)(3) above for which a conviction has been obtained, and the person or persons were employees of the adult-oriented business at the time the offenses were committed;
(g) A licensee or an employee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation or masturbation to occur in or on the licensed premises; and
(h) A licensee has allowed the sale and/or consumption of alcoholic beverages at the adult-oriented business for which a license has been issued herein.
(3) Appeals. The fact that conviction is being appealed shall have no effect on the revocation of the license.
(4) Granting a license after revocation. When the city revokes a license, the revocation shall continue for one year, and the licensee shall not be issued an adult-oriented business license for one year from the date that the revocation became effective. If, subsequent to revocation, the city finds that the basis for revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date the revocation became effective. If the license was revoked under division (G)(2)(e) above, an applicant may not be granted another license until the appropriate number of years required under division (A)(3) above have elapsed.
(5) Notice. A revocation by the city shall be preceded by written notice to the licensee and a public hearing. The notice shall give at least ten-days’ notice of the time and place of the hearing and shall state the nature of the charges against the licensee. The notice may be served upon the licensee personally, or by leaving the same at the licensed premises with the person in charge thereof.
(H) Transfer of license. A licensee shall not transfer this license to another, nor shall a licensee operate an adult-oriented business under the authority of a license at any place other than the address designated in the application.
(Ord. 332, passed 5-19-2008)