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No person may own or operate a sexually-oriented business within the city unless the person is currently licensed under this chapter.
(2004 Code, § 121.05) Penalty, see § 121.99
No license may be issued to a person who:
(A) Is not a citizen of the United States or a resident alien;
(B) Is a minor at the time the application is filed;
(C) Has been convicted of a crime directly related to the licensed occupation and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of the owner, operator or manager of a sexually-oriented business under M.S. § 364.03, Subd. 3, as it may be amended from time to time;
(D) Holds a liquor license under Ch. 112 of this code of ordinances;
(E) In the judgment of the licensing authority, is not the real party in interest or beneficial owner of the business operated under the license;
(F) Has had a license for a sexually-oriented business or similar business revoked anywhere within five years of the license application; or
(G) In the case of an individual, is not a resident of the state; in the case of a partnership, the managing partner is not a resident of the state; or, in the case of a corporation, the manager is not a resident of the state. The required residency must be established by the time the license is issued and maintained throughout the existence of the license and all renewals. The time for establishing residency may, for good cause, be extended by the licensing authority.
(2004 Code, § 121.06)
No license may be issued for:
(A) A place or a business ineligible for a license under city ordinance or state law;
(B) Operation in a zoning district where the business is not allowed pursuant to Ch. 155 of this code of ordinances;
(C) A place or business that is currently licensed as a tattoo establishment, pawnshop, massage business or establishment that sells alcoholic beverages; or
(D) Operation on a premises on which taxes, assessments or other financial claims of the city or other government agency are delinquent and unpaid, unless the non-payment is not under the control of the applicant.
(2004 Code, § 121.07)
(A) The application for a sexually-oriented business license under this chapter must be made on a form supplied by the city and must provide the following information:
(1) The business in connection with which the proposed license will operate;
(2) The location of the business premises;
(3) The legal description of the premises to be licensed, including a map of the area for which the license is sought, showing dimensions, locations of buildings, street access and parking facilities;
(4) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid and, if not paid, the years and amounts that are unpaid;
(5) Whether the applicant is the owner and operator of the business and if not, who is;
(6) Whether the applicant has ever used or been known by a name other than his or her true name, and if so, what was the name or names, and information concerning dates and places where used;
(7) Whether the applicant is married or single. If married, the true name, place and date of birth and street address of applicant’s spouse;
(8) Street address at which the applicant and spouse have lived during the preceding ten years;
(9) Kind, name and location of every business or occupation the applicant and spouse have been engaged in during the preceding ten years;
(10) Names and addresses of the applicant’s and spouse’s employers and partners, if any, for the preceding ten years;
(11) Whether the applicant or spouse has ever been convicted of a violation of a state law or local ordinance, other than a non-alcohol related traffic offense. If so, the applicant must furnish information as to the time, place and offense for which convictions were had;
(12) Whether the applicant or spouse has ever been engaged as an employee or in operating a sexually-oriented business, massage business or other business of a similar nature. If so, the applicant must furnish information as to the time, place and length of time;
(13) Whether the applicant has ever been in military service. If so, the applicant must, upon request, exhibit all discharges;
(14) If the applicant is a partnership, the name and address of all partners and all information concerning each partner as is required of a single applicant as above. A managing partner or partners must be designated. The interest of each partner or partners in the business must be submitted with the application and, if the partnership is required to file a certificate as to trade name under the provisions of M.S. Ch. 333, as it may be amended from time to time, a copy of the certificate must be attached to the application;
(15) If the applicant is a corporation or other organization, the applicant must submit the following:
(a) Name, and if incorporated, the state of incorporation;
(b) Names and addresses of all officers;
(c) The name of the manager or proprietor or other agent in charge of, or to be in charge of the premises to be licensed, giving all information about said person as is required in the case of a single applicant; and
(d) A list of all persons who, single or together with their spouse, own or control an interest in said corporation or association in excess of 5% or who are officers of said corporation or association, together with their addresses and all information as is required for a single applicant.
(16) The amount of the investment that the applicant has in the business, land, building, premises, fixtures, furniture or stock-in-trade, and proof of the source of the money;
(17) A list of responsible persons, including the names of owners, managers and assistant managers, who may be notified or contacted by state or city employees in case of emergency. These persons must be residents of the state.
(18) Whether the applicant holds a current license for a sexually-oriented business or similar business from another governmental unit;
(19) Whether the applicant has ever been denied a license for a sexually-oriented business or similar business from another governmental unit; and
(20) Other information that the city deems appropriate.
(B) No person may make a false statement or material omission in a license application or investigation. A false statement or material omission is grounds for denial, suspension or revocation of a license.
(C) Each licensee has the continuing duty to properly notify the Director of Community Development of a change in the information or facts required to be furnished on the application for a license. This duty continues throughout the period of the license. Failure to comply with this section will constitute cause for revocation or suspension of the license.
(D) The application for the renewal of an existing license must be made at least 90 days prior to the date of the expiration of the license and must be made on the form which the city provides.
(2004 Code, § 121.08)
(A) An applicant for a license must pay to the city the investigation fee specified by ordinance, as that ordinance may be amended from time to time. This fee will be for the purpose of conducting a preliminary background and financial investigation of the applicant. If the city believes that the public interest so warrants, it may require a similar investigation at the time of renewal of a license. If an investigation is ordered at the time of license renewal, the applicant must pay the fee specified above, except that the fee will be the smaller of the stated dollar amount or the actual cost of the investigation. There will be no refund of the investigation fee after the investigation has begun.
(B) The annual fees for a license are set forth in ordinance, as that ordinance may be amended from time to time.
(C) Each license expires on December 31 of the year in which it is issued. Fees for licenses issued during the license year will be prorated according to the number of months remaining in the year. For this purpose an unexpired fraction of a month will be counted as a whole month having elapsed.
(D) No refund of a fee will be made, except as authorized by ordinance.
(2004 Code, § 121.09)
(A) No license may be issued until the Police Department, or the County Sheriff, if the city has no Police Department, has conducted an investigation of the representations set forth in the application, the applicant’s moral character, and the applicant’s financial status. All applicants must cooperate with this investigation.
(B) No license, except for a renewed license, may be issued for a sexually-oriented business until the Council has held a public hearing. Notice of the hearing must be made in the same manner as that specified in Ch. 154 of this code of ordinances, for a zoning ordinance amendment affecting district boundaries. The Council must grant the license unless the applicant or the location does not meet the requirements of the city code, the application was incomplete, or the application contained false information or a material omission. If the application is denied, the city must notify the applicant with the reason(s) stated for denial. Notification must be sent certified, United States mail, return receipt requested, to the address provided on the license application. If the Council fails to act on the application within 45 days after receipt of a complete application, the application will be deemed approved. An applicant wishing to appeal the action of the City Council may seek a writ of certiorari before the State Court of Appeals.
(C) (1) The City Council may issue a license before an investigation, notice and public hearing for an applicant who:
(a) Had a license within the previous five years for the establishment that is specified in the application and that is continuing to operate under a license;
(b) Wishes to resume operation of the business without sufficient time, through no fault of his or her own, to meet the normal procedural requirements;
(c) Had no criminal license convictions, or license suspensions or revocations during the prior licensed period; and
(d) Otherwise qualifies and meets the requirements for a license.
(2) In this situation, the City Council may immediately issue an interim license to the applicant for a period of no longer than 90 days. The applicant must then proceed through the specified requirements for an investigation, notice and public hearing. At the public hearing, the Council will decide whether the license should continue in effect or be revoked. The applicant has no greater right to continuation of the license than he or she would have had to issuance of a new license following the normal procedure without the interim license.
(D) A license will be issued only to the applicant and for the premises described in the application. No license may be transferred to another person or place without application in the same manner as an application for a new license. Transfer of 25% or more of the stock of a corporation or of a controlling interest of it, whichever is less, will be deemed a transfer of the license. If the licensee is a corporation that is wholly owned by another corporation, the same provisions about the transfer of a stock or a controlling interest will apply to that parent corporation, any second parent corporation that wholly owns the parent corporation, and all other similarly situated parent corporations up through the chain of ownership. Transfer of this amount of stock without prior Council approval is a ground for revocation or suspension of the license. In addition, each day the licensee operates under the license after a transfer has taken place without obtaining Council approval will be a separate violation of this chapter.
(E) In the case of the death of a licensee, the personal representative of a licensee may continue operation of the business for not more than 90 days after the licensee’s death.
(2004 Code, § 121.10) Penalty, see § 121.99
(A) A license is subject to the conditions in this section, all other provisions of this chapter, and of other applicable regulations, ordinances or state laws.
(B) A licensee is responsible for the conduct of his or her place of business and the conditions of order in it. The act of an employee of the licensed premises is deemed the act of the licensee as well, and the licensee is liable for all penalties provided by this chapter equally with the employee, except criminal penalties.
(C) The license must be posted in a conspicuous place in the premises for which it is used.
(2004 Code, § 121.11) Penalty, see § 121.99
A sexually-oriented business is subject to the following restrictions and regulations.
(A) No owner, manager or employee may allow sexually-oriented materials or entertainment to be visible or perceivable in any manner, including aurally, at any time from outside of the business.
(B) No owner, manager or employee may allow a person under the age of 18 to enter the business.
(C) No owner, manager or employee may allow a person under the age of 18 to have access to sexually-oriented materials, whether by sight, purchase, touch or other means.
(D) No owner or manager may employ a person under the age of 18 on the licensed premises.
(E) No owner, manager, or employee may have been convicted of a sex crime, as identified in M.S. §§ 609.293 to 609.352, 609.746 to 609.749, 609.79 or 518B.01, as they may be amended from time to time, or related statute dealing with sexual assault, sexual conduct, harassment, obscenity or domestic abuse within the past five years.
(F) No business may exceed 10,000 square feet in gross floor area.
(G) No owner, manager or employee may allow a patron, employee or other person on the premises to physically contact, in public view, a specified anatomical area of himself or herself or of another person; except that, a live performer may touch himself or herself.
(H) A live performer must remain at all times a minimum distance of ten feet from members of the audience, and must perform on a platform intended for that purpose, that must be raised at least two feet from the level of the floor on which the audience is located. No performer may solicit or accept money, a tip or other item from a member of the audience.
(I) No business may have booths, stalls, partitioned portions of a room or individual rooms, except as follows.
(1) Restrooms are allowed as long as they are no larger than reasonably necessary to serve the purposes of a restroom, no other activities are provided or allowed in the rooms and there are no chairs, benches or reclining surfaces in the rooms; and
(2) Storage rooms and private offices are allowed, if the storage rooms and offices are used solely for running the business and no person other than the owner, manager and employees is allowed in them.
(J) A licensee must not be open for business to the public:
(1) Between 1:00 a.m. and 8:00 a.m. on the days of Monday through Saturday; and
(2) Between 1:00 a.m. and 12:00 noon on Sundays.
(2004 Code, § 121.12) Penalty, see § 121.99
(A) Delinquent taxes. The City Council may suspend or revoke a license issued under this chapter for operation on a premises on which real estate taxes, assessments or other financial claims of the city or of the state are due, delinquent or unpaid, unless the non-payment is not under the control of the licensee. If an action has been commenced under M.S. Ch. 278, as it may be amended from time to time, questioning the amount or validity of taxes, the Council may, on application by the licensee, waive strict compliance with this provision; no waiver may be granted, however, for taxes, or a portion of them, that remain unpaid for a period exceeding one year after becoming due, unless the one-year period is extended through no fault of the licensee.
(B) Violations.
(1) The Council may either suspend for up to 60 days or revoke a license for a violation upon a finding that the licensee or an agent or employee of the licensee has failed to comply with an applicable statute, regulation or ordinance relating to the subject matter of this chapter or violated the statutes in division (B)(2) below. No suspension or revocation will take effect until the licensee has been afforded an opportunity for a hearing pursuant to M.S. §§ 14.57 to 14.69, as they may be amended from time to time, with the exception of the suspension provided for in division (B)(2) below.
(2) Conviction of a sex crime, as identified in M.S. §§ 609.293 to 609.352, 609.746 to 609.749, 609.79 or 518B.01, as they may be amended from time to time, or related statute dealing with sexual assault, sexual conduct, harassment, obscenity or domestic abuse by the licensee will result in the immediate suspension pending a hearing on revocation of a license issued under this chapter.
(2004 Code, § 121.13)
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