(A) License required. No person shall own or operate an adult establishment without having first secured a license as provided for in this section.
(B) Application. The application for an adult establishment license shall be submitted on a form provided by the city and shall include:
(1) If the applicant is an individual, the name, residence, phone number and birth date of the applicant. If the applicant is a partnership, the name, residence, phone number and birth date of each general and limited partner. If the applicant is a corporation, the names, residences, phone numbers and birth dates of all those persons holding more than 5% of the issued and outstanding stock of the corporation;
(2) The name, address, phone number and birth date of the operator and manager of such operation, if different from the owners;
(3) The address and legal description of the premises where the adult establishment is to be located;
(4) A statement detailing any gross misdemeanor or felony convictions relating to sex offenses, obscenity or the operation of an adult establishment or adult business by the applicant, operator or manager and whether or not the applicant, operator or manager has ever applied for or held a license to operate a similar type of business in other communities. In the case of a corporation, a statement detailing any felony convictions by the owners of more than 5% of the issued and outstanding stock of the corporation, and whether or not those owners have ever applied for or held a license to operate a similar type of business in other communities;
(5) The activities and types of business to be conducted;
(6) The hours of operation;
(7) The provisions made to restrict access by minors; and
(8) A building plan of the premises detailing all internal operations and activities.
(C) License fee.
(1) The annual license fee to operate an adult-oriented business shall be $5,000.
(2) Each application for a license shall be submitted to the City Clerk-Administrator and payment made to the city. Each application for a license shall be accompanied by payment in full of the required license fee. Upon rejection of any application for a license, the city shall refund the license fee.
(3) All licenses shall expire on the last day of December in each year. Each license shall be issued for a period of one year; except that, if a portion of the license year has elapsed when the application is made, a license may be issued for the remainder of the year for a pro rated fee. In computing such fee, any unexpired fraction of a month shall be counted as one month.
(4) No part of the fee paid with any issued license shall be refunded; except that, a pro rata portion of the fee shall be refunded in the following instances upon application to the City Clerk- Administrator within 30 days from the happening of the event; provided that, such event occurs more than 30 days before the expiration of the license:
(a) Destruction or damage of the licensed premises by fire or other catastrophe;
(b) The licensee’s illness;
(c) The licensee’s death; or
(d) A change in the legal status making it unlawful for licensed business to continue.
(5) Each application shall contain a provision on the application in bold print indicating that any withholding of information or the providing of false or misleading information will be grounds for denial or revocation of a license. Any changes in the information provided on the application or provided during the investigation shall be brought to the attention of the City Clerk-Administrator by the applicant or licensee. If the changes take place during the investigation, the data shall be provided in writing to the City Clerk-Administrator, who shall report the changes to the City Council. Failure to report such changes by the applicant or the licensee may result in a denial or revocation of a license.
(D) Investigative fee.
(1) The investigative fee for an adult establishment license is established as a required payment of $1,000 to cover costs associated with verifying the license application and to cover the expense of any investigation needed to assure compliance with this chapter.
(2) If it appears the investigative costs will exceed $1,000, the City Clerk-Administrator shall notify the applicant and give the applicant an estimate of costs. The applicant shall either make additional deposits equal to the difference between $1,000 and the total estimate, or shall withdraw the application. If the additional deposit is not paid within 14 days of the notice, the application shall be deemed withdrawn.
(3) The investigation fee shall not be refundable. This fee does not apply to an applicant who is already an adult-oriented business license holder in the city.
(E) Granting of license.
(1) The City Clerk-Administrator, or designee, shall complete his or her investigation within 60 days after the receiving a complete application and all license and investigative fees.
(2) If the application is for a renewal, the applicant shall be allowed to continue business until the City Council has determined to renew or refuse to renew a license.
(3) If, after such investigation, it appears that the applicant and the place proposed for the business are eligible for a license under the criteria set forth in this section, then the license shall be issued by the City Council within 30 days after the investigation is completed. Otherwise, the license shall be denied.
(4) Each license shall be issued to the applicant only and shall not be transferable to another holder. Each license shall be issued only for the premises described in the application. No license may be transferred to another premises without the approval of the City Council. If the licensee is a partnership or a corporation, a change in the identity of any of the principals of the partnership or corporation shall he deemed a transfer of the license. All adult establishments existing at the time of the adoption of this section shall be required to obtain an annual license.
(5) The license for the adult-oriented activities shall be displayed in a conspicuous public place within the confines of the premises.
(F) Temporary licenses. There shall be no temporary or single event licenses issued by the city under any circumstances. All applicants must apply for the annual license following the process established herein.
(G) Persons ineligible for license. No license shall be granted to or held by any person:
(1) Under 21 years of age;
(2) Who is overdue or whose spouse is overdue in his or her payment to the city, county or state of taxes, fees, fines or penalties assessed against them or imposed upon them;
(3) Who has been convicted or whose spouse has been convicted of a gross misdemeanor or felony or of violating any law of the state or local ordinance relating to sex offenses, obscenity offenses or adult establishments;
(4) Who is not the proprietor of the establishment for which the license is issued;
(5) Who is residing with a person who has been denied a license by the city or any other Minnesota municipal corporation to operate an adult establishment, or residing with a person whose license to operate an adult establishment has been suspended or revoked within the preceding 12 months; or
(6) Who has not paid the license and investigative fees required by this section.
(H) Places ineligible for license.
(1) No license shall be granted for adult establishments on any premises where the applicant or any of its officers, agents or employees has been convicted of a violation of this section, or where any license hereunder has been revoked for cause, until one year has elapsed after such conviction or revocation.
(2) No license shall be granted for any adult establishment which is not in full compliance with the city code, the city’s Zoning Ordinance, the Building Code, the Fire Code, health regulations and all provisions of state and federal law.
(3) No license shall be granted to any establishment which holds a current, valid municipal liquor license for on- or off-sale of intoxicating beverages, unless clear and achievable steps are taken to insure that the establishment will not be serving, for a cost or not, any alcoholic beverages for the entire 24-hour period from 8:00 a.m. the day of the event until 8:00 a.m. of the day following the event.
(I) Conditions of license.
(1) Every license shall be granted subject to the following conditions and all other provisions of this section, and of any applicable sections of the city code, the city’s Zoning Ordinance, the Building Code; the Fire Code, the city’s health regulations and all provisions of state and federal law.
(2) All licensed premises shall have the license posted in a conspicuous place at all times.
(3) No minor, under 18 years of age, shall be permitted on the licensed premises.
(4) Any designated inspection officer of the city shall have the right to enter, inspect and search the premises of a licensee during business hours.
(5) Every licensee shall be responsible for the conduct of his or her place of business and shall maintain conditions of order.
(6) No adult goods or material services shall be offered, sold, transferred, conveyed, given, displayed or bartered to any minor.
(J) Penalty.
(1) Any person violating any provision of this section is guilty of a misdemeanor and, upon conviction, shall be punished not more than the maximum penalty for a misdemeanor as prescribed by state law.
(2) Any violation of this section shall be a basis for the suspension or revocation of any license granted hereunder. In the event that the City Council proposes to revoke or suspend the license, the licensee shall be notified in writing of the basis for such proposed revocation or suspension. The City Council shall hold a hearing for the purpose of determining whether to revoke or suspend the license, which hearing shall be within 30 days of the date of the notice.
(3) The City Council shall determine whether to suspend or revoke a license within 30 days after the hearing or within 60 days of the date of the notice, whichever is sooner, and shall notify the licensee of its decision within that period.
(K) Right of appeal.
(1) In the event that the City Council determines to suspend, or revoke a license, such suspension or revocation shall not be effective until 15 calendar days after notification to the licensee by the city of its decision. If, within that 15 days, the licensee commences an action in state or federal court challenging the City Council’s action, then the suspension or revocation shall be stayed until the conclusion of such action.
(2) If the City Council determines not to renew a license, the licensee may continue its business for 15 calendar days after notification by the city of such non-renewal. If the licensee commences an action in state or federal court within that 15 days for the purpose of determining whether the city acted properly, the licensee may continue in business until the conclusion of the action.
(3) If the City Council decides not to grant a license to an applicant, the applicant may commence an action in state or federal court within 15 days after notification by the city of the denial for the purpose of determining whether the city acted properly. The applicant shall not commence doing business unless the action is concluded in its favor.
(4) Any notification required to be sent by the city is deemed completed when mailed by first class mail to the applicant or licensee at the address listed in the application.
(Prior Code, § 114.07) (Ord. 593, passed 3-2-1999)