(A)   If the Chief of Police denies the issuance of a license or the renewal of a license, he or she shall send to the applicant, by certified mail, return receipt requested, written notice of his or her action and the right to an appeal. The aggrieved party may appeal the decision of the Chief of Police to the City Council. The filing of an appeal stays the action of the city.
   (B)   The applicant may, not later than ten calendar days after receiving notice of the denial, file with the City Secretary a written request for a hearing before the City Council.
   (C)   A hearing by the City Council may proceed if a quorum is present. The City Council shall hear and consider evidence offered by any interested person.
   (D)   The City Council may, in its discretion, grant an exemption from the locational restrictions of this chapter if the following is found:
      (1)   The location of the proposed sexually oriented business will not have a detrimental effect on nearby properties or be contrary to the public safety or welfare;
      (2)   The granting of the exemption will not violate the spirit and intent of this chapter of the city code;
      (3)   The location of the proposed sexually oriented business will not downgrade the property values or quality of life in the adjacent areas or encourage the development of urban blight;
      (4)   The location of an additional sexually orient business in the area will not be contrary to any program of neighborhood conservation nor will it interfere with any efforts of urban renewal or restoration; and
      (5)   All other applicable provisions of this chapter will be observed.
   (E)   The City Council shall grant or deny the exemption by majority vote. Failure to reach a majority vote shall result in denial of the exemption. Disputes of fact shall be decided on the basis of a preponderance of the evidence. The decision of the City Council regarding the permit appeal is final.
   (F)   If the City Council grants the exemption, the exemption is valid for one year from the date of the Council’s action. Upon expiration of an exemption, the sexually oriented business is in violation of the locational restrictions until the applicant applies for and receives another exemption.
   (G)   If the City Council denies the exemption, the applicant may not re-apply for an exemption until at least 12 months have elapsed since the date of the Council’s action.
   (H)   The grant of an exemption does not exempt the applicant from any other provisions of this chapter other than the locational restrictions.
(1995 Code, § 4.312)