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HomeMy WebLinkAbout6.b.Adult Establishment Ordinance , � CITY Of ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: September 5, 1995 AGENDA iTEM: Adult Establishment Ordinance AGENDA SECTION: New Business PREPARED BY: David J. McKnight AGENDA �1�l►11 � � p Intern � � �V� 0 ATTACHMENTS: Staff Report, Maps, and Ordinance APPROVED BY: In October 1994 the city council passed an adult use moratorium to give city staff time to research and prepare the information necessary to develop an adult establishment ordinance. City staff has been working with the city attorneys office in the development of this ordinance and the related materiaL The development of the ordinance actually consisted of three steps; the research and development of the staff report, the development of maps showing the areas where this type of use would be permitted, and the development of the actual ordinance. All three of these steps and the material produced are included for your review. The pertinent information will be presented to you at the first reading of the ordinance. RECOMMENDED ACTION: -None required at this time- COUNCIL ACTION: I�NTEROF.�'ICE 1��IE��10 D U1�� To: Mayor McMenomy and City Council Members CC: Tom Burt, Charlie LaFevere From: Da�id J. McI<night Date: August 29, 1995 Subject: Adult Use Staff Report Introduction The City of Rosemount has regulated some types of businesses in the city through the licensing procedure established in the City Code. The licensing provision deals with such businesses as liquor establishments, saunas and massage parlors, and pawn brolcers and pawn shops. Adult use facilities are not specifically dealt with in either the city code or the zoning ordinance. In recent years, other types of adult businesses have appeared in other cities and inquires have been received about uses which may not be covered by either the licensing provisions or the zoning ordinance. The cities of Bloomington, Richfield and Lalceville ha�e recently completed ordinance updates on the regulation of adult uses and the zoning ordinance of the City of Hoplcins has been challenged as unduly restrictive by an adult use video store. As a result, Che City Council on October 4, 1994 approved a one year moratorium on the siting of adult establishments within any zoning district of the city and directed a study to be conducted. During this time staff researched and gathered materials and studies relating to this subject. This information was made available and reviewed by all City Council members. Background Zoning has long been recognized as a valid method to regulate land use in cities. In reality, there is an exclusion or segregation of uses inherent in any such zoning ordinance. Zoning establishes districts and permits certain types of uses in each such district. More particularly, certain types of businesses are considered to have a 1 , blighting influence on other properties as a result of its operations. There is an overriding differential when considering adult �xses. The U.S. Supreme Court has concluded that adult businesses not dealing in obscene materials are protected by the First Amendment. Obscenity is not, however, protected and nnay be prosecuted under state law An adult use business is typically a business that generates revenue by featuring material, whether boolcs, magazines, motion pictures or entertainment that features or depicts sexual activities. Any regulation of the First Amendment guaxantees of freedom of communication and expression will be narrowly construed. The scope of regulation has been delineated in great part by the U.S. Supreme Court in two cases: Youn�v American Mini Theaters, Inc. and Renton v Pla;rtime Theaters Inc. Two other more recent Eighth Circuit cases from Minnesota axe the Holmberg v Citv of Ramsev and ILQ Investments Incor�orated v Cit� of Rochester. Based on the above cases, zoning regulations must be analyzed by reference to the following: 1. An adudt use cannot be regulated on the basis of the materials the,y sell or the entertainment provided, but only on the effect that such ba�sinesses have on the surraacnding area. 2. A macnicipality must conclude that such adult businesses create adverse secondary effects such as neighborhood blight, diminished property values and increased crime. 3. Municipalities need not conduct their own adverse secondary effects studies. They can rely on studies performed by other cities, provided that the studies are reasonably related to the problem that the city is trying to address. 4. Either dispersal or concentration regulations may be utilized, in either case, the City must allow a reasonable opportunity area in the city for adaclt uses to locate. Study Summaries The City based the need for an adult use moratorium to allow for the research of this issue using the reports done by the City of Rochester/Olmstead County Consolidated Planning Department, the Minnesota Attorney Generals Office, the City of St. Paul and others. These studies are summarized below 2 Olmstead CountyjCity of Rochester St�cdy The City/County Consolidated Planning Department undertoolc a study to talce a loolc at the general issue of adult entertainment uses and to provide inforination which might be used to assist in the determination of whether these businesses need to be the subject of more intense regulation in the City of Rochester. The consolidated planning department of£ered the following findings: 1. A considerable number of communities throughout the nation ha�e studied the impacts which adult entertainment facilities have on the areas surrounding them. 2. These studies have concluded that adult entertainment uses ha�e an adverse impact on the surrounding neighborhoods. 3. Residential neighborhoods in proximity to adult uses suffer adverse effects including increased crime rates, lowered property values, and increased transiency. 4. Ualues of both commercial and residential properties are diminished when located in proximity to adult entertainment businesses. 5. The adverse impact on comrnercial areas is increased by the presence of more than one adult entertainment use in close proacimity to another adult entertainment use. 6. The impact which an adult entertainment use has on the surrounding area appears to lessen as the distance firom the adult entertainment use increases. 7. Reasonable "time, place and manner" restrictions which address.the secondary impacts of adult entertainment uses are constitutionally permissible. 8. Any proposed regulation must be essentially "content neutral." The First Amendment prohibits regulations which attempt to regulate written or other materials or acts on the basis of their content. 9. Pornographic materials are exempt from the protection of the First 3 Amendment and can be regulated through existing or pending criminal laws. 10. Adult entertainznent regulations must be tailored to the specific needs of each community as determined through specific findings of actual or potential impacts affecting the public health, safety, or general welfare. 11. Existing local regulation of adult entertainment uses axe limited in their scope, are generally incidental to other regulatory provisions, and ha�e never been addressed as part of a comprehensive community plan to regulate such uses. As well as these conclusions: * The concerns which prompted public concern zn this city are similar to the concerns which motivated the communities of Indianapolis, Indiana; St. Paul, Minnesota; Phoenix, Arizona; Minneapolis, MN; Rochester, MN; Los Angeles, CA and Seattle, Washington to undertalce their studies of adult entertainment uses. Consequently, the results of those studies are relevant to the existing or foreseeable impacts which such uses can have on the areas surrounding them in this city. * The concentration of adult entertainment uses in commercial areas or the location of adult entertainment uses ir� close proximity to residential uses, churches, paxlcs and schools will result in devaluation of property values and decreases in commercial business sales, thereby reducing t� revenues to the City and adversely impacting the econoznic well-being of the citizens of this City. * Location of adult entertainment uses in proximity to residential uses, churches, parlcs, schools, bars, and other adult entertainment uses very lilcely would lead to increased levels of crimirial activities, including prostitution, rape, assaults, and other sex-related crimes in the vicinity of such adult entertainment uses. St. Paul (1978) In 1978 the City of St. Paul conducted a study to determine the effects of adult entertainment businesses on neighborhood properties located nearby. The report utilized census informatiori, residential property values and crime statistics bettiveen 4 the years of 1970 and 1976. Even though the study was statistical in nature, correlations did provide circumstantial evidence of the relationship between adult entertainment and neighborhood deterioration. The study concluded: 1. The location of adult entertainment establishments correlates significantly (statistically spealcing) with neighborhood deterioration. 2. Adult entertainment establishments tend to locate in somewhat deteriorated areas. 3. Additional relative deterioration of an area follows location of an adult entertainment business in the area. 4. Crime rates relate to establishment of adult entertainment businesses in a threshold fashion. There is a significantly higher crime rate associated with two or more such businesses in an area that is associated with only one adult entertainment business. 5. Housing values also relate to establishment of adult entertainment businesses in a threshold fashion. There is significantly lower value associated with three such businesses in an area than is associated with one or two adult entertainment businesses. St. Paul (1987) In 1987 the City of St. Paul again decided to look into the adult entertainment issue. The purpose of this most recent inquiry was to determine if present ordinances were in need of amendment. Although the purpose of the report was to examine and analyze different strategies for using zoning in dealing with adult entertainment uses the report brought to light another concern: prostitution. The report could not prove conclusively that adult entertainment uses were directly connected with or supportive of prostitution in the area. It did, however, point out the fact that prostitution was occurring at an alarming rate and intensity within a three blocic area surrounding one of St. Paul's most highly concentrated adult entertainment areas. The report alluded to a connection: °It is unclear to what e.Ytent clients of street prostitutes in this neighborhood 5 are the same people as the patrons of the adult businesses in the neighborhood. Appaxently, the two activities are often separate, but occur in the same neighborhood due to its 'sex for sale' reputation.° The report also documented that there had been an increase in crime in the area, according to police records. The report also contains the results of a surveyof St. Paul banlc patrons aslcing their preference for a banlc location and their perceptions of different locations. In response to the question, ".Axe there any of these locations where you would not feel safe conducting your banlcing business," 3b% of the respondents said that they would feel unsafe banldng at Dale and University (the area of St. Paul where the largest concentration of adult entertainment businesses are loca.ted.) � Minnesota Attorney General (1989) In June of 1988 the Attorney General developed a taslc force to assist public officials and private citizens in finding legal ways to reduce the impacts of sexually oriented businesses. The group heard testimony and conducted briefings on the impacts of sexually oriented businesses on crime and communities and the methods available to reduce or eliminate these impacts. The research also reported on a number of prior studies done throughout the country. Two of those that were loolced at are summarized below: Minneapolis In 1980, on direction from the Minneapolis City Council, the Minneapolis Crime Prevention Center examined the effects of sex-oriented and alcohol-oriented adult entertainment upon property values and crime rates. This study used both simple regression and multiple regression analysis to evaluate whether there was a casual relationship between these businesses and neighborhood blight. The study concluded that there was a close association between se.Yually oriented businesses, high crime rates and low housing values in a neighborhood. When the data was reexamined using control variables such as the mean income in the neighbarhood to determine whether the association proved causation, it was unclear whether seacually oriented businesses caused a decline in property values. The Minneapolis study concluded that sexually oriented businesses concentrate in areas which are relatively deteriorated and, at most, they may wealcly contribute to the continued depression of property values. 6 . Ho�vever, the Minneapolis study found a much staronger relationship between sexually oriented businesses and crime rate. A crime rate index was constructed including robbery, burglary, rape and assault. The rate of crime in the areas �ear se}cually oriented businesses was then compared to crime rates in other areas. The study drew the following conclusions: 1. The effects of sexually oriented businesses on the crime rate index is positive and significant regardless of which control variable is used. 2. Se�cually oriented businesses continue to be associated with higher crime rates, even when the control variables impacts are considered simultaneously. According to the statistical analysis conducted in the Minneapolis study, the addition of one sexually oriented business to a census tract area will cause an increase in the overall crime rate index in that area by 9.15 per thousand people per year even if all other social factors remain unchanged. Los Angeles A study released by the Los Angeles Police Department in 1984 supports a relationship between sexually oriented businesses and rising crime rates. This study is less definitive, since it was not designed to use similar areas as a contral. The study indicated that there were 11 sexually oriented adult establishments in the Hollywood, California area in 1969, by 1975 the number had grown to 88. During the same time period, reported incidents of Part T crime (i.e. homicide, rape, aggravated assault„ robbery, burglary, larceny and vehicle theft) increased 7.6 percent in the Hollywood area while the rest of Los Angeles had a 4.2 percent increase. Part II arrests (i.e. forgery, prostitution, narcotics, liquor law violations, and gambling) increased 3.4 percent in the rest of Los Angeles, but 45.4 percent in the Hollywood area. Indianapolis (1984) The Division of Planning in the City of Indianapolis undertoolc a dual planning study in 1983. Six axeas containing adult businesses were compared with six compaxable control areas relative to the factors of crime incidence. In the second part of the study, the City collaborated with Indiana University in a national survey of real estate appraisers to develop a "best professional opinion" as to the effect of adult entertainment businesses on sunounding real estate values. The findings were as 7 follows: 1. The average major crime rate (i.e. crimes per 10,000 population) in the IPD(Indianapolis Police Department) District was 748.55, the control area 886.34, and the study area 1090.51. Major crimes occurred in the areas of the study that contained at least one adult entertainment establishment at a rate that was 23% higher than the six similar area studies not having such businesses and 46% higher than the police district at laxge. 2. Although it was impossible to obtain a discrete rate £or sex-related crimes at the police district level, it was possible to compare rates between the control areas and the study areas. The average sex-related crime rate in the control areas over the five year period was 26.2, while the rate for the study areas was 46.4. 3. If the ratio of sex-related crimes was the same as that esta.blished for major crimes between the control area and the study area, however, we would expect a sex-related crime rate of 32.2. The actual rate of 46.4 is 77% higher than that of the control areas rather than the 23% that would be expected and indicates the presence of abnormal influences in the study area. 4. Close eYamination of crime statistics within the study areas indicate a direct correlation between crime and the residential chaxacter of the neighborhood. Crime frequencies were 56%o higher in residential areas of the study than in its commercial axea. 5. At the same time, sex-related crimes occurred four times more firequently within residential neighborhoods ha�ing at least one adult entertainment business than in neighborhoods ha�ing a substantially district related commercial malce-up having adult entertainment. 6. Although the housing base within the study area was of a distinctly higher value than that of the control areas, its value appreciated at only one-half the rate of the control areas and one-third the rate of Center Township as a whole during the period 1979-1982. 7. Pressures within the study area caused the real estate marlcet within their boundaries to perform in a manner contrary to that within the 8 R � control areas, Center Township and the County. Tn a time when the marlcet saw a decrease of 50% on listings, listings wzthin the study area actually increased slightly. 8. As a result, twice as many houses were placed on the marlcet at substantially lower prices than would be expected had the study areas marlcet performance been typica.l for the period of time in question. 9. The great majority of appraisers (75%j who responded to a national survey of certified real estate appraisers felt that an adult boolcstore located within one blocic would have a negative effect on the value of both residential (80%) and commercial (72%) properties. Fifty percent of these respondents foresaw an immediate depreciation in excess of 10°/a 10. At a distance of three blocics, the great majority of respondents (71%) felt that the innpact of an adult boolcstore fell off sharply so that the impact was negligible on both residential (64%) and commercial (77%). At the same time, it appears that the residential effect of such a use was greater for residential than for commercial properties. 11. In answer to a survey question regaxding the impact of an adult boolcstore on property values in general, 50% felt that there would be a substantial to moderate negative impact, 30% saw little or no impact, and 20% saw the effect as being dependent on factors such as the predominant values (property and social) e:cisting in the neighborhood, the development,standards imposed in the use, and the ability oE an existing node to bu£fer the impact from other uses. ' Opportunities Available to Cities There are two courses of action that a city may talce in developing an ordinance to � deal with this situation. The first available option is deal with the uses through the zoning ordinance. Cities can regulate adult use businesses because of the resulting negative secondary effects pursuant to valid time, place and manner regulations. Zoning is a place regulation that ca.n be used in this instance. As long as there are reasonable alternative locations for said businesses, zoning provisions have been found constitutionaL In addition to zoning, licensing of the businesses can be used as the second option. 9 The purpose of licensing is not to condone the activity or the materials within, but to provide £or monitoring and accountability concerning the ownership and operation of the businesses. The use of licensing is one that is set to have some control over the operation of the business. A license cannot be denied because of the use if they meet the standards set up in the ordinance. These are the two methods a�ailable to city's today. The effective use of these two options can do a lot to help control the operation of this type of businesses in Rosemount. Conclusion There are a number of themes that are repeated throughout the studies that are referenced in this report. The repeated themes have to do with the adverse secondary impacts of increased neighborhood blight, diminished property values and increased crime due to the location of adult use facilities in the area. The concerns which prompted public concerns in Rosemount are similax to the concerns which motivated the communities of Indianapolis, Indiana; St. Paul, MN; Phoenix,Arizona; Minneapolis, Minnesota; Rochester, Minnesota; Los Angeles, California; and Seattle, Washington to undertalce their studies of adult use facilities. Consequently, the results of those studies are relevant to the existing or foreseeable impacts which such uses can have on the areas surrounding them in Rosemount. The number of major studies that are cited in this report, and the number of local cities that hav�e talcen on this very same effort indicate the importance of having an adult use ordinance in place. This is an area of legal concern that requires that certain steps be followed and items researched. These steps have been completed with the following recommendations from staff. Recomrnendations 1. The City should adopt zoning regulations which set distance requirements between adult use businesses and other sensitive areas such as residentially zoned areas, schools, churches, parlcs, and commercial daycare facilities. 2. The City should adopt zoning regulations which restrict adult uses to one such adult use per building. 3. The City should provide in the zoning regulations a reasonable area for adult uses to locate. 10 4. The zoning ordinance should be changed to malce these types of adult uses permitted in C-2, C-4, IG and BP-2 distxicts in the city. 5. The ordinance should adopt regulations limiting the hours that these types of uses can be opened and operating. 11 � ORDINANCE NO. XV.8 AN ORDINANCE REGULATING ADULT ESTABLISHMENTS AND THEIR LOCATION WITHIN THE CITY OF ROSEMOUNT. TI� CITY COUNCIL OF TI� CITY OF ROSEMOUNT ORDAINS: 1-1-1: Findings and Purpose Studies conducted by the American Planning Association, the Minnesota Attorney Generals Of�ce and the governments of St. Paul, Minnesota; Phoenix, Arizona;Los Angeles, California;Rochester, Minnesota; Olmstead County, Minnesota;Indianapolis, Indiana; and Seattle, Washington have studied the impacts that adult establishments have in their communities. These studies have concluded that adult establishments have negative secondary impacts on surrounding neighborhoods. Those impacts included increased crime rates, lower property values, increased transiency, neighborhood blight and potential health risks. Based on these studies and findings; the city council concludes: A. Minnesota Statutes, section 462.357, allows the city to adopt regulations to promote the public health, safety, morals, and general welfare. B. The public health, safety, morals and general welfare will be promoted by the city adopting regulations governing adult establishments. C. Adult establishments have adverse secondary impacts of the type found in the studies referenced in this ordinance. D. The adverse impacts caused by adult establishments tend to diminish if adult establishments axe governed by location requirements, licensing requirements and health requirements. E. It is not the intent to prohibit adult establishments from having a`reasonable opportunity to locate in the city. 1-1-2: Definitions The following words and terms when used in this ordinance shall have the following meanings unless the context indicates otherwise. Adult Establishment: Any adult use as defined in this section or any business engaged in any of the following activities or which utilizes any of the following business procedures or practices: 1 A. A business that is conducted exclusively for the patronage of adults and as to which minors are specifically excluded from patronage, either by operation of law or by the owners of such business. B. Any business that has a substantial or significant portion of the business or establishment that is devoted to material depicting, exposing, describing, discussing or relating to specified sexual activities or specified anatomical areas. Adult Use: An adult use is any of the activities and businesses described below: A. Adult Body Painting Studio: An establishment or business which provides the service of applying paint or other substance, whether transparent or non-transparent, to the body of a patron when such person is nude. B. Adult Bookstore: An establishment or business used for barter, rental, or sale of items consisting of printed matter, picture, slides, records, audio tape, videotape, or motion picture film if such business is not open to the public generally but only to one or more classes of the public, excluding any minor by reason of age, or if a substantial or significant portion of such business or establishment is devoted to material distinguished and characterized by an emphasis on the depiction or description of"specified se�zal activities" or "specified anatomical areas.° C. Adult Cabaret: A business or establishment that provides dancing or other live entertainment to patrons if the dancing and live entertainment is distinguished and chaxacterized by an emphasis on the presentation, display, degiction of matter that seeks to evoke, arouse or excite the patrons' sexual or erotic feelings or desire. D. Adult Companionship Establishment: A business or establishment that excludes minors by reason of age, and which provides the service of engaging in or listening ta conversation, talk or discussion between an employee of the establishment and a customer, if such service is distinguished and characterized by an emphasis on "sgecified se�zal activities" or "specified anatomical areas.° E. Adult Conversation/Rap Parlor: A business or establishment that excludes minors by reason of age, and which provides the services of engaging in or listening to conversation, talk, or discussion, if such service is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." 2 F. Adult Health/Sport Club: A health/sport club which excludes minors by reason of age, if such club is distinguished and characterized by an emphasize on "specified se�al activities" or "specified anatomical areas." G. Adult Hotel or Motel: A hotel or motel from which minors are specifically excluded from patronage and where material is presented which is distinguished and characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas.° H. Adult Massage Paxlor: A massage parlor or health club which restricts minors by reason of age, and which provides the services of massage, if such service is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas.° I. Adult Mini-Motion Picture Theater: A business or establishment with a capacity for less than 50 persons used for presenting material if such material is distinguished and characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas.° J. Adult Modeling Studio: A business or establishment that provides customers figure models who are so provided with the intent of providing sexual stimulation or sexual gratification to such customers and who engage in "specified sexual activities," or "display "specified anatomical areas" while being observed, painted, painted upon, sketched, drawn, sculpted, photographed, or otherwise depicted by such customers. K. Adult Motion Picture Arcade: Any place to which the public is permitted or invited where coin or slug operated or electronically, electrically or mechanically controlled or operated still or motion picture machines, projectors of other image producing dedised are maintauned to show images to five or fewer persons per machine at any one time, and where the images so displayed are distinguished and characterized by an emphasis on depicting or describing "specified sexual activities" or "specified anatomical axeas.° L. Adult Motion Picture Theater: A motion picture theater with a capacity of 50 or more persons used for presenting material if such theater as a prevailing practice excludes minors by reason of age if such material is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." 3 M. Adult Novelty business: A business which has as a principal activity the sale of devices which stimulate human genitals or devices which are designed for se�al stimulation. N. Adu1t Sauna: A sauna which excludes minors by reason of age, and which provides a steam bath or heat bathing room used for the purpose of bathing, relaxation or reducing, utilizing steam or hot air as a cleaning, rela��ing or reducing agent, if the service provided by the sauna is distinguished or characterized by an emphasis on "specified se�al � activities" or "specified anatomical areas.° O. Adult Steam RoomBathhouse Facility: A building or portion of a building used for providing a steam bath or heat bathing room used for the purpose of pleasure, bathing, relaxation or reducing, utilizing steam or hot air as a cleaning agent if such building or portion of a building restricts minors by reason of age and if the service provided by the steam room/bathhouse facility is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." Nude or Specified Anatomical Area A. Less than completely and opaquely covered human genitals, pubic region, buttock, anus, or female breast(s) below a point immediately above the areola; and B. Human male genitals in a discernible turgid state, even if completely and opaquely covered. Speci.fied Sexual Activities A. Actual or simulated se�xal intercourse, oral copulation, anal intercourse, oral-anal copulation, bestiality, direct physical stimulation of unclothed genitals, flagellation or torture in the context of a sexual relationship, or the use of excretory functions in the context of a sexual relationship, and any of the following se�ally oriented acts or conduct: anilingus, buggery, coprophagy, coprophilia, cunnilingus, fellatio, necrophilia, pederasty, ' pedophilia, piquerism, asppism, zooerasty; or B. Cleazly depicted human genitals in the state of se�cual stimulation, arousal or tumescene; or C. Use of human or animal ejaculation, sodomy, oral copulation, coitus, or masturbation; or 4 D. Fondling or touching nude human genitals, pubic region, buttocks, or female breast(s); or E. Situations involving a person or persons, any of whom are nude, clad in undergarments or in sexually revealing costumes, and who are engaged in activities involving the flagellation, fettering, binding or other physical restraint of any such persons; or F. Erotic or lewd touching, fondling or other sexually oriented contact with an animal by a human being; or G. Human excretion, urination, menstruation, vaginal or anal irrigation. Substantial or Significant A. For purposes of this section, the phrase "substantial or significant° means that at least one-third of the portion of the floor area of the business (not including storerooms, stock axeas, bathrooms, basements or any portion of the business not open to the public) is devoted to items, merchandise or other material that is distinguished or characterized by an emphasis on the depiction or description of"specified sexual activities" or "specified anatomical areas.° 1-1-3: Location • Adult use establishments as defined in this ordinance are permitted uses in C-2, C-4, I-G and BP-2 districts in the city. No adult establishment may be located within 500 feet of a residentially zoned district, a park, a school, a church, a library, or a commercial day care center or within 1000 feet of another adult use establishment. The measurement of this distance is done in a direct line from the closet portion of the property line to the closest portion of the property line of each property 1-1-4 Hours of Operation No adult establishment as defined in this ordinance may remain open at any time between the hours of one o'clock(1:00) a.m. and eight o'clock(8:00) a.m. on weekdays and Saturdays, and one o'clock(1:00) a.m. and ten o'clock (10:00) a.m. on Sundays. 1-1-5: Licensing No person shall own or operate an adult establishment without first having secured a license as provided for in this section. The application for an adult establishment license , shall be submitted on a form provided by the City and shall include: 5 A. If the applicant is an individual, the name, residence, phone number, and birthdate of the applicant. If the applicant is a partnership, the name, residence, phone number, and birthdate of each general and limited partner. If the applicant is a corporation, the names, residences, phone numbers, and birthdates of all those persons holding more than five (5) percent of the issued and outstanding stock of the corporation. B. The name, address, phone number, and birthdate of the operator and manager of such operation, if different from the owners. 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 other communities. In the case of a corporation, a statement detailing any felony convictions by the owners of more than five (5) percent 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. E. The activities and types of business to be conducted. F.� The hours of operation. G. The provisions made to restrict access by minors. H. A building plan of the premises detailing all internal operations and activities. I. Whether the applicant has previously been denied a license of this type by any other government unit. J. The names, street addresses and businesses addresses of three(3} residents of Dakota, Hennepin, Ramsey, Anoka, Washington, Scott or Carver Counties who are of good moral character and who are not related to the applicant and not holding any ownership in the premises or business, who may be referred to as ta the applicants and/or managers character. K. 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 6 and amounts that are unpaid. 1-1-6 License Fee A. The annual license is set forth by city council resolution. B. Each application for a license shall be submitted to the City Clerk and payment made to the City. Each application for a license shall be accompanied by payment in full of the required license fee_ Upon rejection of any application for a license, the City shall refund the license fee. � C. All licenses sha11 expire on the last day of December in each year. Each license shall be issued for a period of one(1) 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 such fee, any unexpired fraction of a month shall be counted as one (1) month. D. No part of the fee paid by any licensee shall be refunded, except that a pro rated portion of the fee shall be refunded in the following instances upon application to the City Clerk within 30 days from the happening of the event, provided that such 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 licensees illness. 3. The licensees death. ` 4. A change in the legal status making it unlawful for licensed business to continue. E. Each application shall contain a provision on the application indicating that any withholding of information or the providing of false or misleading information will be grounds for denial or revocation of a license. Any changes in the information provided on the applicatiom or provided during the investigation shall be brought to the attention of the City Clerk by the applicant or licensee. If said changes take place during the investi�ation, said data shall be provided to the Police Cluef or the City Clerk in writing. 7 1-1-7 Investigation Fee A. At the time of oriDinal application for a license, the applicant shall deposit one thousand five hundred dollars ($1,500.00)with the City for the investigation fee. The investigation fee shall be three hundred fifty dollaxs ($350.00). Provided, for investigation conducted outside the State, the City shall be paid the investigation costs in excess of three hundred fifty dollars ($350.00), but not to exceed ten thousand dollars ($10,000.00). Any fees due in excess of the one thousand five hundred dollars ($1,500.00) deposit must be paid prior to the license hearing and before the City Council considers the application. The remainder of the deposit shall' be returned to the applicant. 1-1-8 Granting of License A. The City Clerk and Police Chief, or such persons as they shall designate, shall complete their investigation within 30 days after the City Clerk receives a complete application and all license and investigation fees. B. If, after such investigation, it appears that the applicant and the place proposed for the business are eligible for a license under the criteria set forth in this section, then the license shall be issued by the City Council within 30 days after the investigation is completed. -0therwise, the license shall be denied. C. 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. 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 principles of the partnership or corporation shall be deemed a transfer of the license. Any adul� establishment existing at the time of the adoption of this section shall be required to obtain an annual license. D. If the time frames set forth in this section are not met, the license application will be deemed granted. If the license application is denied by the city council, the applicant may, within 15 days after denial, commence an action in state or federal court for the purpose of determining whether the city council acted properly in denying the application. If an adult establishment is lawfully in existence at the time of the adoption of this section, the adult establishment may continue in business until the court action is completed. Otherwise, the applicant may not commence doing business until the judicial action has been finally resolved. 8 1-1-9 Persons Ineligible For License No license shall be issued or held by any person: A. Under the age of twenty one (21). B. Who is overdue or whose spouse is overdue in his or her payment 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 twelve (12) months. F. Who has not paid the license and investigation fees required by this section. 1-1-10 Places Inetigible For License A. No license sha11 be granted for adult establishments on any premises where the applicant or any of its officers, agents or employees has been convicted of a violation of this section, or where any license hereunder has been revoked for cause, until one (1)year h�as elapsecl after such conviction or revocation. B. No license shall be granted for any adult establishrnent which in not in full compliance with the City Code, the Ci�y's zoning ordinance, the Building Code, the Fire Code, the City's health regulations; this ordinance and a11 provisions of state and federal law. 1-1-11 Conditions of License A. Every license shall be granted subject to the following conditions and all other provisions of this section, and of any applicable sections of the City 9 Code, the City's zoning ordinance, the Building Code, the Fire Code, the City's health regulations and all provisions of state and federal law. B. All licensed premises sha11 have the license posted in a conspicuous place at ali times. C. No minor shall be permitted on the licensed premises. D. Any designated inspection officer of the City shall have the right to enter and inspect the premises of a licensee during business hours. E. Every licensee shall be responsible for the conduct of his/her place of business and shall maintain conditions of order. F. No adult goods, materials or services shall be offered, sold, transferred, conveyed, given, displayed, or bartered to any minor. 1-1-12 Penalty A. Any person violating any provision of this section is guilty of a misdemeanor and upon conviction shall be punished not more than the maximum penalty for a misdemeanor as prescribed by law. B. Any violation of this section shall be a basis for the suspension or revocation of any license granted hereunder. In the event that the City Council proposes to revoke or suspend the license, the licensee shall be notified in writing of the basis for such proposed revocation or suspension. The council shall hold a hearing for the purpose of determining whether to revoke or suspend the license, wluch hearing shall be within thirty (30) days after the close of the hearing or within 60 days after the date of the notice of proposed revocation or suspension, whichever is sooner. C. The City Council shall determine whether to suspend, or revoke a'license. Such suspension or revocation shall not be effective until fifteen (15) days after notification of the decision to the licensee. If, within that fifteen (15) days the licensee commences an action in state or federal court for the purpose of determining whether the City acted properly,the licensee may continue in business until the eonclusion of the action. 1-1-13 Hinderance Any person hindering the efforts of City officials to investigate possible violations of this Chapter shall be guilty of a misdemeanor. 10 1-1-14 Conflict of Chapter In any case where a provision of this ordinance is found to be in conflict with a provision of any zoning, building, fire, safety or health ordinance or code in the City, the provision which establishes the higher standard for the promotion and protection of the health and safety of the people shall prevail. In any case where a provision of this ordinance is found to be in conflict with a provision of any other ordinance or code of the City existing on the effective date of this ordinance which established a lower standard for the promotion and protection of the health and safety of the property, the provision of this ordinance shall be deemed to prevail. The determination of the applicability of this ordinance in light of the above rules of interpretation shall be made by the City and its determination shall be final. 1-1-15 Effective Date This ordinance will become effective from and after its date of publication. Adopted this day of , 1995 E.B. McMenamy, Mayor ATTEST: Susan Walsh, City Clerk Published this day of , 1995 in the Rosemount Town Pages 11 � . INTEROFFICE .��IE.��10 D �1".��1 To: Mayor McMenomy and City Council CC: Tom Burt, Charlie LaFevere From: David J. McI�night - Date: August 29, 1995 Subject: Adult Establishment Maps Enclosed are the maps detailing the areas where adult establishments could possibly locate in Rosemount. The C-2, C-4, BP-2, and IG districts were chosen as the zones that this type of use could locate and they are indicated on the map noting initial areas of consideration. After applying the restrictions of the proposed ordinance, this area was reduced and the a�vailable land is shown on the properties outside of the 500 foot buffer maps. The amount of land that is our "goal" for available land is five percent of the total land in the city. This number comes about from the Citv of Renton v Pla, ime Theaters, Inc. case of 1986. The Supreme Court ruled that the amount of land that the City of Renton made a�ailable (5%) was satisfactory. The land made a�ailable by any ordinance of this type does not ha�e to be a�ailable for purchase or development. 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