(A) General requirement. No person, firm, partnership, or corporation shall operate an adult use, either principal or accessory, without having first secured a license as hereinafter provided. Licenses shall be one of two types:
(1) Adult use/accessory; and
(2) Adult use/principal.
(B) Application. In addition to such information the City Council may require, the application shall also 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 manager of the operation, if different from the owners;
(3) The premises where the adult use is to be located within the entire building;
(4) A statement detailing any felony convictions by the applicant and whether or not the applicant 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 fees.
(1) Each application for a license shall be submitted to the City Administrator and payment made to the city. Each application for a license shall be accompanied by payment in full of the required fee for the license. All fees shall be paid into the General Fund. Upon rejection of any application for a license, the city shall refund the amount paid except for that cost to investigate the applicant.
(2) 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 the fee, any unexpired fraction of a month shall be counted as one month.
(3) The annual fee for an adult use/accessory shall be $250. The annual fee for an adult use/principal license shall be $1,000.
(4) No part of the fee paid by any license issued under this subchapter shall be refunded except in the following instances upon application to the City Administrator within 30 days from the happening of the event. There shall be refunded a pro-rata portion of the fee for the unexpired period of the license, computed on a monthly basis, when operation of the licensed business ceases no less than one month before expiration of the license because of:
(a) Destruction or damage of the licensed premises by fire or other catastrophe;
(b) If the licensee is an individual, the licensee’s disabling illness. If the licensee is a partnership, the disabling illness of any general partner. If the licensee is a corporation, the disabling illness of any shareholder or shareholders who in the aggregate hold 50% or more of the issued and outstanding shares of the corporation;
(c) If the licensee is an individual, the licensee’s death. If the licensee is a partnership, the death of any general partner. If the licensee is a corporation, the death of any shareholder or shareholders who in the aggregate hold 50% or more of the issued and outstanding shares of the corporation; or
(d) A change in the legal status making it unlawful for the licensed business to continue.
(D) Granting of license.
(1) (a) The City Council shall investigate all facts set out in the application and hold a public hearing within 45 days after the City Administrator receives the application. Opportunity shall be given to any person to be heard for or against the granting of the license.
(b) After the investigation and administrative hearing, the City Council shall grant or refuse the application. The city shall grant or refuse the application within 45 days after the public hearing has closed.
(2) (a) 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.
(b) 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 be deemed a transfer of the license.
(c) All adult uses existing at the time of the adoption of this subchapter shall be required to obtain an annual license.
(E) Persons ineligible for license. No license shall be granted to or held by any person:
(1) Under 21 years of age;
(2) (a) Who has been convicted of any of the following felonies, or a shareholder, director, officer, or partner of which has been convicted of any of the following felonies:
1. Homicide;
2. Assault;
3. Any felony relating to controlled substances;
4. Kidnapping;
5. Robbery;
6. Any felony relating to prostitution;
7. Criminal sexual conduct;
8. Incest;
9. Malicious punishment of a child;
10. Receiving stolen property;
11. Any felony relating to gambling;
12. Any felony relating to dangerous weapons and/or firearms;
13. Any felony in which a dangerous weapon or firearm was used; or
14. Any other felony involving moral turpitude.
(b) The City Council may waive the provisions of division (E)(2)(a) above with respect to an adult use/accessory license and grant an adult use/accessory license to a person, partnership, or corporation a principal or principals of which have been convicted of a felony or felonies. In deciding whether to make a waiver, the Council shall consider:
1. The number of felony convictions;
2. The nature of the felony or felonies;
3. The length of time that has passed since the conviction or convictions; and
4. Whether the license is for a use that existed prior to the effective date of this subchapter.
(3) Who is not the proprietor of the establishment for which the license is issued.
(F) Places ineligible for license.
(1) No license shall be granted for adult uses on any premises where a licensee has been convicted of a violation of this subchapter, or where any license hereunder has been revoked for cause, until one year has elapsed after the conviction or revocation.
(2) Except for uses lawfully existing at the time of this subchapter adoption, no license shall be granted for any adult use which is not in compliance with the city’s zoning regulations.
(G) Conditions of license.
(1) Every license shall be granted subject to the conditions in the following divisions and all other provisions of this subchapter, and of any applicable sections of the code of the city or state law.
(2) All licensed premises shall have the license posted in a conspicuous place at all times.
(3) In the case of an adult use/principal, no minor shall be permitted on the licensed premises unless accompanied by his or her parent or legal guardian.
(4) Any designated inspection officer of the city shall have the unqualified 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 and/or services shall be offered, sold, transferred, conveyed, given, displayed, or bartered to any minor.
(H) Right of appeal. Any applicant whose application for an adult use license is denied, or any licensee whose license is revoked or suspended, may appeal the denial, revocation, or suspension to the County District Court within 30 days after the denial, revocation, or suspension of the license.
(Prior Code, § 3-13-1) (Ord. 219, passed 1-27-1992) Penalty, see § 112.99