Subd. 1. A person may not own or operate an adult establishment without having first secured a license as provided for in this chapter. Notwithstanding any other provision of this code to the contrary, the procedures set forth in this chapter establish the exclusive method for obtaining an adult establishment license.
Subd. 2. The application for an adult establishment license must be submitted on a form provided by the city and must include:
a. 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 persons holding more than 5% of the issued and outstanding stock of the corporation;
b. The name, address, phone number and birth date of the operator and manager of the adult establishment, if different from the owner’s;
c. The address and legal description of the premises where the adult establishment is to be located;
d. 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 another community. 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 another community;
e. The activities and types of business to be conducted;
f. The hours of operation;
g. The provisions made to restrict access by minors; and
h. A building plan of the premises detailing all internal operations and activities.
Subd. 3. The license fee provisions for adult establishments are as follow:
a. The annual license fee is set by Council ordinance;
b. An application for a license must be submitted to the City Administrator/Clerk and accompanied by payment of the required license fee. Upon rejection of an application for a license, the city will refund the license fee;
c. Licenses will expire on December 31 in each year. Each license will 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 a pro rated fee, any unexpired fraction of a month will be counted as one month;
d. No part of the fee paid by any license will be refunded, except that a pro rata portion of the fee will be refunded in the following instances upon application to the City Council within 30 days from the happening of one of the following events, provided that the event occurs more than 30 days before the expiration of the license:
(1) Destruction or damage of the licensed premises by fire or other catastrophe;
(2) The licensee’s illness, if the illness renders the licensee unable to continue operating the licensed adult establishment;
(3) The licensee’s death; or
(4) A change in the legal status making it unlawful for the licensed business to continue;
e. An application must contain a provision in bold print indicating that withholding information or providing false or misleading information will be grounds for denial or revocation of a license. Changes in the information provided on the application or provided during the investigation must be brought to the attention of the City Council by the applicant or licensee. If a change takes place during the investigation, it must be reported to the police chief or the City Administrator/Clerk in writing and they will report it to the City Council. A failure by an applicant or licensee to report a change may result in a denial or revocation of a license.
Subd. 4. All initial applications shall be accompanied by a non-refundable investigation fee as provided in § 1301.02 of this code. The investigative fee for an adult establishment license is established by City Council ordinance.
Subd. 5. The procedures for granting an adult establishment license are as follow:
a. The Chief of Police will conduct and complete an investigation within 30 days after the City Administrator/Clerk receives a complete application and all license and investigative fees;
b. If the application is for a renewal, the applicant will be allowed to continue business until the City Council has determined whether to renew or refuse to renew a license;
c. If, after the investigation, it appears that the applicant and the place proposed for the business are eligible for a license, then the license will be issued by the City Council within 30 days after the investigation is completed. If the City Council fails to act within 30 days after the investigation is completed, the application will be deemed approved;
d. A license will be issued to the applicant only and is not transferable to another holder. Each license will be issued only for the premises described in the application. A license may not be transferred to another premise without the approval of the City Council. If the licensee is a partnership or a corporation, a change in the identity of any partner or holder of more than 5% of the issued and outstanding stock of the corporation will be deemed a transfer of the license. Adult establishments existing at the time of the adoption of this chapter must obtain an annual license.
Subd. 6. A license will not be granted to or held by a person who:
a. Is under 21 years of age;
b. Who is overdue or whose spouse is overdue in payments to the city, county or state of taxes, fees, fines or penalties assessed against them or imposed upon them;
c. Who has been convicted or whose spouse has been convicted of a gross misdemeanor or felony or of violating any law of this state or local ordinance relating to sex offenses, obscenity offenses or adult establishments;
d. Who is not the proprietor of the establishment for which the license is issued;
e. 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
f. Who has not paid the license and investigative fees required by this chapter.
Subd. 7. An adult establishment license will not be granted for:
a. Any adult establishment on premises where the applicant or any of its officers, agents or employees has been convicted of a violation of this section or where a license hereunder has been revoked for cause until one year has elapsed after the conviction or revocation;
b. Any adult establishment that is not in full compliance with the City Code and all provisions of state and federal law; or
c. Any premises that are licensed under Title 400 of this code.
Subd. 8. A license is subject to the provisions of this section and of any applicable chapters of the City Code and all provisions of state and federal law.
Subd. 9. Licensed premises must have the license posted in a conspicuous place at all times.
Subd. 10. A minor may not be permitted on the licensed premises.
Subd. 11. Any designated inspection officer of the city has the right to enter, inspect and search the premises of a licensee during business hours.
Subd. 12. The licensee is responsible for the conduct of the licensed place of business and must maintain conditions of order.
Subd. 13. Adult goods or materials may not be offered, sold, transferred, conveyed, given or bartered to a minor or displayed in a fashion that allows them to be viewed by a minor, whether or not the minor is on the licensed premises.
Subd. 14. The licensee must keep itemized written records of all transactions involving the sale or rental of all items or merchandise for at least one year after the transaction. At a minimum, those records must describe the date of the transaction, a description of the transaction, the purchase price or rental price and a detailed description of the item or merchandise that is being purchased or rented. These written records must be provided to the city upon request.
Subd. 15. Suspensions, revocations and nonrenewals of adult establishment licenses are governed by the following provisions:
a. A violation of this section is a basis for the suspension or revocation of a license granted hereunder. In the event that the City Council proposes to revoke or suspend the license, the licensee must be notified in writing of the basis for the proposed revocation or suspension. The Council will hold a hearing for the purpose of determining whether to revoke or suspend the license. The hearing must be within 30 days of the date of the notice. The City Council must determine whether to suspend or revoke a license within 30 days after the close of the hearing or within 60 days of the date of the notice, whichever is sooner. The Council must notify the licensee of its decision within that period.
b. If the Council determines to suspend or revoke a license, the suspension or revocation is not effective until 15 days after notification of the decision to the licensee. If, within that 15 days, the licensee files and serves an action in state or federal court challenging the Council’s action, then the suspension or revocation is stayed until the conclusion of the action.
c. If the City Council determines not to renew a license, the licensee may continue its business for 15 days after receiving notice of the non-renewal. If the licensee files and serves 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.
d. If the City Council does not grant a license to an applicant, then the applicant may commence an action in state or federal court within 15 days for the purpose of determining whether the city acted properly. The applicant may not commence doing business unless the action is concluded in its favor.
(1987 Code, § 309.06)