(A) Licenses required. All establishments, including any business operating at the time this chapter becomes effective, operating or intending to operate an adult-oriented business, shall apply for and obtain a license from the City Clerk. A person is in violation of this chapter if he or she operates an adult- oriented business without a valid license issued by the city.
(B) Applications. An application for a license must be made on a form provided by the city.
(1) The application must be accompanied by a sketch or diagram showing the configuration of the premises, including a statement of 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.
(2) The applicant must be qualified according to the provisions of this section 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 Chief, and building official.
(3) The application shall contain the address and legal description of the property to be used; the names, addresses, phone numbers, and dates of birth of the owner, lessee, if any, the operator or manager, and all employees; the name, address, and phone number 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; 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 as to the disposition thereof, the names and addresses of all creditors of the applicant, owner, lessee, or manager who have extended credit for the purposes of constructing, equipping, maintaining, operating, or furnishing or acquiring the premises, personal effects, equipment, or anything incident to the establishment, maintenance, and operation of the business.
(4) If the application is made on behalf of a 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, addresses, and date of birth of all individuals having an interest in the business, including partners, officers, owners, board of directors, and creditors furnishing credit for the establishment, acquisition, maintenance, and furnishing of the business.
(5) 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.
(C) Conditions for license approval. The City Clerk may recommend approval of the issuance of a license by the city to an applicant within 30 days after receipt of an application unless he or she finds one or more of the following to be true:
(1) The applicant(s) or manager is under 18 years of age;
(2) The applicant(s) or an applicant’s spouse or domestic partner is overdue or delinquent, or subject to a penalty imposed by law for the late payment in their payment to the city, county, or state of taxes, fees, fines, or penalties assessed against them or imposed upon them in relation to an adult only entertainment business;
(3) The applicant(s) has failed to provide information reasonably necessary for issuance of the license or has falsely answered a question or request for information on the application form;
(4) The applicant(s) or an applicant’s spouse or domestic partner has been convicted of a violation of a provision of this section, other than the offense of operating an adult only entertainment business without a license within two years immediately preceding the application. The fact that a conviction is being appealed shall have no effect;
(5) The applicant(s) is residing with a person who has been denied a license by the city or any other state municipal corporation to operate an adult only entertainment business within the preceding 12 months, or residing with a person whose license to operate an adult only entertainment business has been revoked within the preceding 12 months;
(6) The premises to be used for the adult only entertainment business has not been approved by the Health Department, Fire Department, and the building official as being in compliance with applicable laws and ordinances; the inspections shall be completed within 30 days from the date the application was submitted, provided that the application contains all of the information required by this chapter. If the application is deficient, the inspections shall be completed within 30 days from the date the deficiency has been corrected;
(7) The license fee required by this chapter has not been paid; or
(8) An applicant has been convicted of a crime involving any of the following offenses:
(a) Any sex crimes as defined by M.S. §§ 609.293 through 609.352 inclusive, as it may be amended from time to time, or as defined by any ordinance or statute in conformity therewith;
(b) Any obscenity crime as defined by M.S. §§ 617.23 through 617.299 inclusive, as it may be amended from time to time, or as defined by any ordinance or statute in conformity therewith, for which:
1. 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;
2. 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
3. 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 of two or more misdemeanor offenses or combination of misdemeanor offenses occurring within any 24-month period.
(c) The fact that a conviction is being appealed shall have no effect on disqualification of the applicant or applicants spouse or domestic partner.
(D) Requalification. An applicant who has been convicted of an offense listed in division (C)(8) above may qualify for an adult-oriented business license only when the time period required by division (C)(8) above has elapsed.
(E) Posting. The license, if granted, shall state on its face the name of the person or persons to whom it is granted and all persons who have a financial interest in the business, the expiration date, and the address of the adult-oriented business. The license shall be posted in a conspicuous place at or near the entrance to the adult-oriented business so that it may be read at any time.
(F) City action. The City Board shall act to approve or disapprove the license application within 60 days from the date the application was submitted, provided that the application contains all information required by this chapter. If the application is deficient, the Board shall act on the application within 60 days from the date that the deficiency has been corrected.
(G) Appeals. Within 30 days after the decision by the City Board, the applicant may appeal to the District Court by serving a notice upon the City Board Chairperson or City Clerk.
(H) Additional restrictions as to live entertainment.
(1) All performers, dancers, and persons providing live entertainment distinguished or characterized by an emphasis on matters depicting, describing, or relating to specified sexual activities or specified anatomical areas in the licensed facility or in areas adjoining the licensed premises where the entertainment can be seen by patrons of the licensed premises shall remain at all times a minimum distance of ten feet from all patrons, customers, or spectators and shall dance or provide the entertainment on a platform intended for the purpose, which shall be raised at least two feet from the level of the floor on which patrons, customers, or spectators are located.
(2) No dancer, performer, or person providing live entertainment distinguished or characterized by an emphasis on matters depicting, describing, or relating to specified sexual activities or specified anatomical areas in the licensed premises or in areas adjoining the licensed premises where entertainment can be seen by patrons or the licensed premises shall touch, fondle, or caress any patrons, customers, or spectators.
(3) No customers, spectators, or patrons of a licensed premises shall directly pay or give any gratuity to any dancer or performer, and no dancer or performer shall solicit any pay or gratuity from any patrons, customers, or spectators.
(4) Except for licenses for a sexually-oriented motel, a licensee shall not be open for business to the public from the hours of 7:00 p.m. to 9:00 a.m.
(5) A licensee under this chapter shall be responsible for the conduct of the sexually-oriented business being operated and shall not allow any illegal activity to take place on or near the licensed premises, including, but not limited to, prostitution, public indecency, indecent exposure, disorderly conduct, or the sale or use of illegal drugs. Every act or omission by an employee or independent contractor of the licensee constituting a violation of this chapter shall be deemed the act or omission of the licensee, if the act or omission occurs either with the authorization, knowledge, or approval of the licensee, or as a result of the licensee’s negligent failure to supervise the employee’s or independent contractor’s conduct.
(6) No sales, consumption, or use of any alcoholic beverages shall be permitted at any time within the licensed premises.
(Ord. 88, passed 7-11-2006)