C. Amend Code-Sexually OrientedCITY OF
CHANHASSEN
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,3h, hassen MN :~,~31,7
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¢;w',;~ c:i cnarOsasserq mr~ us
MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Todd Gerhardt, City Manger
Bob Generous, Senior Planner
April 26, 2004
Review Amendments, Chapter 10, Chanhassen City Code,
Sexually Oriented Business License
SUMMARY
The City Attorney's office has revised the sexually oriented business license
section of the City Code. The purpose of the change is to update the regulations
and tighten the code in response to court actions.
BACKGROUND
The sexually oriented business license was originally adopted in 1992. In 1992,
the license fee was set at $1,000.00. Inflating the fee using the consumer price
index, the current fee should be $1,300.00, which will be incorporated in Chapter
4, Fees. These businesses would be permitted wherever the underlying business
would be permitted, e.g., adult book stores where book stores are permitted, etc.
The existing ordinance requires a 500-foot separation from specific uses: schools,
churches, public buildings, residential, and other sexually oriented businesses.
The separation requirements that exist in the current ordinance are being
incorporated in Chapter 20, Zoning, since they relate to setback issues.
SUMMARY
Attached is an Ordinance amending the City's Code section licensing sexually
oriented businesses. This amendment is necessary to address inconsistencies in
recent federat appellate court decisions and the failure of the U.S. Supreme Court
to address these inconsistencies or provide clearer guidance regarding the
regulation of sexually oriented businesses. The changes made to the City Code
are designed to take a more conservative approach to regulating sexually oriented
businesses to make the ordinance less vulnerable to challenge until the courts
provide clearer guidance in this area. The changes also include additional
restrictions on sexually oriented businesses that have succeeded in a number of
court cases.
Section 10-161 has been amended by adding definitions necessary for revised
sections of the code and be amending existing definitions to provide greater
control and consistency with definitions upheld in recent court decisions.
Section 10-163 has been amended to specifically provide the information that
must be provided by an applicant for a sexually oriented business license. Some
The Oil,/of Chanhasseo · A growing cornmumly with cJean lakes qual ty schools a charming do'~'ntown thri~,ing businesses winding trails a~ ,i bdantii]i par;x% x, grea! 2lace to li;e ;~,ork and play,
Mr. Todd Gerhardt
April 26, 2004
Amendment Chapter 10
Sexually Oriented Businesses
Page 2
challenges have been made to sexually oriented business applications that have
not had all information requested identified in the ordinance, allowing for too
much discretion by the licensor in requesting information. This section has also
been amended to require other individuals closely tied to the sexually oriented
business to sign the application for licensure.
RECOMMENDATION
Staff is requesting the City Council review the proposed changes to the sexually
oriented business ordinance and provide comments and direction on these
changes.
ATTACHMENTS
1. Amendments to Chapter 10, Chanhassen City Code, Strikethrough/Bold
Format
2. Ordinance Amending Chapter 10
g:\plan\bg\city code\cc memo sobs.doc
Mr. Todd Gerhardt
April 26, 2004
Amendment Chapter 10
Sexually Oriented Businesses
Page 3
Location Restriction
Chapter 10 Licenses SOBs
Article VI. Sexually Oriented Businesses
*(Attorney's office revised)
(a) It is the purpose of this article to regulate sexually oriented businesses to
promote the health, safety, morals, and general welfare of the citizens of the city,
to guard against the inception and transmission of disease, and to establish
reasonable and uniform regulations t~; .......... '" ............. ~ ..... ; .... f sexually
oriented !-,,asinesses within the city. The provisions of this article have neither the
purpose nor effect of imposing a limitation or restriction on the content of any
communicative materials, including sexually oriented materials. Similarly, it is
not the intent nor effect of this article to restrict or deny access by adults to
sexually oriented materials protected by the First Amendment, or to deny access
by the distributors and exhibitors of sexually oriented entertainment to their
intended market.
(b) The city council further finds that experience from other cities
demonstrates that sexually oriented businesses conducted in private by members
of the same or the opposite sex, and employing personnel with no specialized
training, are susceptible to operation in a manner contravening, subverting or
endangering the health, safety and welfare of members of the community by
being the sites of acts of prostitution, illicit sex, and occasions of violent crimes,
thus requiring close inspection, licensing, and regulatiom
Sec. 10-161. Definitions. The following words, terms, and phrases, when used in this
article, shall have the meanings ascribed to them in this section, except where the context
clearly indicates a different meaning:
Adult arcade means any place to which the public is permitted or invited wherein
coin-operated or slug-operated or electronically, electrically, or mechanically controlled
still or motion picture machines, projectors, or other image-producing devices are
maintained to show images to five (5) or fewer persons per machine at any one time, and
where the images so displayed are distinguished or characterized by the depicting or
describing of "specified sexual activities" or "specified anatomical areas."
Adult bookstore, adult video store, or adult store means a commercial
establishment which as one o,c itsa principal business ?tn'?~¢~';e:;purpose offers for sale or
rental for any form of consideration any one ( 1 ) or more the following:
Books, magazines, periodicals or other printed matter, or photographs,
films, motion pictures, video cassettes or video reproductions, slides, or
other visual representations which depict or describe "specified sexual
activities" or "specified anatomical areas"; or
(2)
Instruments, devices, or paraphernalia which are designed for use in
connection with "specified sexual activities."
Adult cabaret means a nightclub, bar, restaurant, or similar commercial
establishment which regularly features:
(1) Persons who appear semi-nude or in a state of nudity; or
(2)
Live performances which are characterized by the exposure of "specified
anatomical areas" or by "specified sexual activities"; or
(3)
Films, motion pictures, video cassettes, slides, or other photographic
reproductions which are characterized by the depiction or description of
"specified sexual activities" or "specified anatomical areas."
Adult conversation/rap parlor means a conversation/rap parlor which
excludes minors by reason of age, or which provides the service of engaging in or
listening to conversation, talk. or discussion between an employee of the
establishment and a customer, if such service is distinguished or characterized by an
emphasis on "specified sexual activities" or "specified anatomical areas".
Adult massage parlor means a massage parlor which excludes minors by reason
of age, or which provides~ for any form of consideration, the rubbing, stroking, kneading,
tapping, or rolling of the body, if the service provided by the massage parlor is
distinguished or characterized by an emphasis on "specified sexual activities" or
"specified anatomical areas".
Adult motel means a hotel, motel or similar commercial establishment which:
(1)
Offers accommodations to the public for any form of consideration;
provides patrons with closed-circuit television transmissions, films,
motion pictures, video cassettes, slides, or other photographic
reproductions which are characterized by the depiction or description of
"specified sexual activities" or "specified anatomical areas"; and has a sign
visible from the public right of way which advertises the availability of
this adult type of photographic reproductions; or
Offers a sleeping room for rent for a period of time that is less than ten
(10) hours; or
(3)
Allows a tenant or occupant of a sleeping room to subrent the room for a
period of time that is less than ten (10) hours.
Adult motion picture theater means a commercial establishment where, for any
form of consideration, films, motion pictures, video cassettes, slides, or similar
photographic reproductions are regularly shown which are characterized by the depiction
or description of "specified sexual activities" or "specified anatomical areas."
Adult sauna means a sauna which excludes minors by reason of age, or which
provides for any form of consideration, a steam bath or heat bathing room used for the
purpose of bathing, relaxation, or reducing, utilizing steam or hot air as a cleaning,
relaxing, or reducing agent, if the service provided by the sauna is distinguished or
characterized by an emphasis on "specified sexual activities" or "specified anatomical
areas".
Adult theater means a theater, concert hall, auditorium, or similar commercial
establishment which regularly features persons who appear semi-nude or in a state of
nudity or live performances which are characterized by the exposure of "specified
anatomical areas" or by "specified sexual activities."
person who is authorized under the laws of the State of Minnesota to solemnize
................. ~ ................ a ....................... are not r
Distinguished or characterized by an emphasis upon means the dominant or
principal theme of the object referenced. For instance, when the phrase refers to films
"which are distinguished or characterized by an emphasis upon the exhibition or display
of specified anatomical areas," or "specified sexual activities."
City manager means the city manager of the City of Chanhassen.
City clerk means the city clerk of the City of Chanhassen.
Employee, employ, and employment describe and pertain to any person who
performs any service on the premises of a sexually oriented business on a full-time, part-
time or contract basis, regardless of whether the person is denominated as an employee,
independent contractor, agent, or by another status. "Employee" does not include a person
exclusively on the premises for repair or maintenance of the premises, or for the delivery
of goods to the premises.
Escort means a person who, for consideration, agrees or offers to act as a
companion, guide, or date for another person, or who agrees or offers to privately model
lingerie or to privately perform a striptease for another person.
Escort agency means a person or business association who furnishes, offers to
furnish, or advertises to furnish escorts as one of its primary business purposes, for a fee,
tip, or other consideration.
Es:ab!is!unc;~,'Establish or establishment means and includes any of the
following:
The opening or commencement of any sexually oriented business as a new
business;
(2)
The conversion of an existing business, whether or not a sexually oriented
business, to any sexually oriented business;
(3) The addition of any sexually oriented business to any other existing
sexually oriented business; or
(4) The relocation of any sexually oriented business.
Licensee means a person in whose name a license to operate a sexually oriented
business has been issued, as well as the individual listed as an applicant on the
application for a license.
Nude model studio means any place where a person who appears in a state of
nudity or displays "specified anatomical areas" is provided to be observed, sketched,
drawn, painted, sculptured, photographed, or similarly depicted by other persons who pay
money or any form of consideration.
Nudity, nude or a state of nudity means:
(1) The appearance of a human bare bu~'t~ck; anus, male genitals, female
genitals, or female breast; or
(2)
A state of dress which fails to opaquely cover a human buttock, anus, male
genitals, female genitals, or areola of the female breast__.
Operate or cause to be operated means to cause to function or to put or keep in a
state of doing business.
Operator means any person on the premises of a sexually oriented business who
is authorized to exercise operational control of the business, or who causes to function or
who puts or keeps in operation, the business. A person may be found to be operating or
causing to be operated a sexually oriented business regardless of whether that person is
an owner, part owner, or licensee of the business.
Person means an individual, proprietorship, partnership, corporation, association,
or other legal entity.
Regularly features or regularly shown means a consistent or substantial course of
conduct, such that the films or performances exhibited constitute a substantial portion of
the films or performances offered as a part of the ongoing business of the sexually
oriented business.
Semi-nude or in a semi-nude condition means a state of dress in which clothing
covers no more than the genitals, pubic region, and are,')!aeareola of the female breast, as
well as portions of the body covered by supporting straps or devices.
Sexual encounter center means a business or commercial enterprise that, as one of
its primary business purposes, offers for any form of consideration+
~,,,,,, ,,r, .... ~;, ......... ; nude. a place where two (2) or more persons may
congregate, associate, or consort for the pu¢ose of "specified sexual
activities." The definition of sexual encounter center or any sexually
oriented businesses shall not include an establishment where a medical
practitioner, psychologist, psychiatrist, or similar professional person
licensed by the state engages in medically approved and recognized sexual
therapy.
Sexually oriented business means an adult arcade, adult bookstore or adult video
store, adult cabaret, adult motel, adult motion picture theater, adult theater, escort agency,
nude model studio, or sexual encounter center.
Specified anatomical areas means;
(1)
Human male genitals in a discernibly turgid state, even if completel3c4n_d_
opaquely covered; or
(2)
Less than completely and opaquely covered human genitals in a st. ate ~)f
o,.,,~,,,' ,,,,~,~,,,,' pubic re~ion, buttocks, or a female breast below a point
immediately above the top of the areola.
Specified sexual activities means and includes any of the following:
The fondling or other erotic touching of human genitals, pubic region,
buttocks, anus, or female breasts;
(2)
Sex acts, normal or perverted, actual or simulated, including intercourse,
oral copulation, or sodomy;
(3) Masturbation, actual or simulated; or
(4)
Excretory functions as part of or in connection with any of the activities
set forth in (1) through (3) above.
Substantial enlargement of a sexually oriented business means the increase in
floor area occupied by the business by more than twenty-five (25) percent, as the floor
area existed on the effective date of this article.
Transfer of ownership or control of a sexually oriented business means and
includes any of the following:
(1) The sale, lease, or sublease of the business;
(2)
The transfer of securities which constitute a controlling interest in the
business, whether by sale, exchange, or similar means; or
(3)
The establishment of a trust, gift, or other similar legal device which
transfers the ownership or control of the business, except for transfer by
bequest or other operation of law upon the death of the person possessing
the ownership or control.
*Definitions will be consolidated in Chapter 1 of the City Code.
Sec. 10-162.
businesses:
Classification. The following are classified as sexually oriented
(1) Adult arcades;
(2) Adult bookstores, adult video stores, adult stores;
(3) Adult cabarets-:;
(4) Adult mote!sconversation/rap parlors;
(5) Adult massage parlors;
(6) Adult motels;
(7) Adult motion picture theaters;
__(8~) Adult saunas;
(9~) Adult theaters;
(glO) Escort agencies;
(911) Nude model studios; and
(4012)
Sexual encounter centers.
Sec. 10.163. 10-163. License required.
,~,~t'~ ,.,,,a) Prohibition. It is unlawful for any person to operate a sexually
oriented business .may ~"
......... ~ ........ without a valid sexually oriented business
license; issued by the city for the particular type of business.
(b) Application Form. An application for a sexually oriented business license
must be made on a form provided by the city fda,4,-
(c)
Required Information. An application shall be considered complete if it includes
the information required in this Section. The applicant shall be qualified
according to the provisions of this article. The application shall be notarized. The
application shall include the information called for in subsections (1) through (6),
and where applicable, subsection (7), as follows:
(1) The full true name and any other names used in the preceding five (5)
years.
(2) The current business address.
(3)
Either a set of fingerprints suitable for conducting necessary background
checks pursuant to this article, or the applicant's social security number, to
be used for the same pm'pose.
(4)
The name, business location, legal description, business mailing address
and phone number of the proposed sexually oriented business.
(5)
Written proof of age, in the form of either (i) a copy of a birth certificate
and cmTent photo (ii) a current driver's license with picture, or (iii) other
picture identification document issued by a governmental agency.
(6)
The issuing jurisdiction and the effective dates of any license or permit
held by the applicant relating to a sexually oriented business, and whether
any such license or permit has been denied, revoked, or suspended, and if
so, the reason or reasons therefore.
(7)
The name and address of the statutory agent or other agent authorized to
receive service of process.
The information provided pursuant to subsecnons (1) through (7) shall be
supplemented in writing by certified mail, return receipt requested, to the City
Clerk within ten (10) working days of a change of circumstances which would
render the information originally submitted false or incomplete.
(d)
Diagram of Premises. The application for a sexually oriented business license
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 market dimensions of the interior of the premises
to an accuracy of plus or minus six inches. Applicants who must comply with
section 10 !78-176 of this article shall submit a diagram meeting the
requirements of that section.
(c)(e) Inspections. The applicant must be qualified according to the provisions of this
article and the premises must be inspected and found to be in compliance with the
law by the fire department and building official.
Execution of Application. If a person who wishes to operate a sexually oriented
business is an individual, the individual must sign the application for a license as
applicant. If a person who wishes to operate a sexually oriented business is other
than an individual, each individual who has a ten (10) percent or greater interest
in the business, and each officer, director, general partner, or other person who
will participate directly in decisions relating to management of the business must
sign the application for a license as applicant. Each applicant must be qualified
under section 10-;164 and each applicant shall be considered a licensee if a
license is granted.
No Exemption. A person who possesses a valid business license is not exempt
from the requirement of obtaining any required sexually oriented business license.
A person who operates a sexually oriented business and possesses a business
license shall comply with the requirements and provisions of this article, where
applicable.
Sec. 10-164. Issuance of license.
(a)
Temporary License. Upon the filing of a completed application for a sexually
oriented business license, the city shall issue a temporary license to the applicant,
which temporary license shall expire upon the final decision of the city to deny or
grant the license.
(a) The..,.~";"" mana:zer(b)~ . . Approval of License. Within thirty (30) days after
the receipt of a completed application, the city manager or the city manager's
designee shall either issue a license, or issue a written notice of intent to deny a
license, to the applicant. The city shall approve the issuance of a license lw-the
u ............ manager findsunles~ one (1) or more of the following is found to be
true:
(1) An applicant is under eighteen (18) years of age.
(2) An applicant is delinquent in hit; ,er herthe payment to the city of taxes, fees,
fines, or penalties assessed against him or her or imposed upon him or her in
relation to a sexually oriented business.
(3)
An applicant has failed to provide information reasonaS!yrequired under
section 10-163 or which is necessary for issuance of the license or has falsely
answered a question or request for information on the application form.
(4) An applicant has been convicted of a violation of a provision of this
ehap~article within two (2) years immediately preceding the application.
The fact that a conviction is being appealed shall have no effect.
(65) The premises to be used for the sexually oriented business havchas
not been approved by the fire department and the building official as being
in compliance with applicable laws and ordinances.
(:7-6) The license fee required by this ehap~article has not been paid.
crime:
(97) An applicant or the proposed establishment is in violation of or is
not in compliance with this article.
(408) An applicant or an ~,m ........... ,'.,pouse has been convicted of a
Involving any of the following offenses:
1. Prostitution as described in Minnesota Statutes Section
609.321;
2. Solicitation, inducement of promotion of prostitution as
described in Minnesota Statutes Section 609.322;
3. Receiving profit derived from prostitution as described in
Minnesota Statutes Section 609.323;
4. Other prohibited acts relating to prostitution as described in
Minnesota Statutes Section 609.324;
5. Obscenity as described in Minnesota Statutes Section
617.241;
6. Sale, dissemination, distribution, display or exhibition of
harmful materia!materials to minors as described in Minnesota
Statutes Sections 617.293 and 617.294;
7. Sexual performance by a child as described in Minnesota
Statutes Section 617.246;
8. Dissemination or possession of child pornography as
described in Minnesota Statutes Section 617.247;
9. Indecent exposure as described in Minnesota Statutes
Section 617.23;
10. Criminal sexual conduct as described in Minnesota Statutes
Sections 609.342,609.343,609.344, and 609.345;
11. Incest, as described in Minnesota Statutes Section 609.365;
or
12. Criminal attempt, conspiracy, or solicitation to commit any
of the foregoing offenses-:_.'
b.~For which:
1. Less than two (2) 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 (5) years have elapsed since the date of
conviction or the date of release from confinement for the
conviction, whichever is the later date, if the conviction is of a
felony offense; or
3. Less than five (5) 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 convictions
are of two (2~)_) or more misdemeanor offenses or combination of
misdemeanor offenses occurring within any twenty-four _-
month period.
(9)
The proposed sexually oriented business would or does not comply with
the city s zomn. article.
Conviction. The fact that a conviction is being appealed shall have no effect on
the disqualification of the applicant ~;: ......
"m ............ spcmse.. For purposes of this
section, "conviction":
(1) Means a conviction or a guilty plea; and
(2)
Includes a conviction of any business entity for which the applicant had, at
the time of the offense leading to the conviction for a crime designated
under this section, a management responsibility or a controlling interest.
(c)(d) Time Periods. An applicant who has been convicted e: .... ~' ............ ~. .... 5een
c~mvicted of an offense listed in section 10-=-164(ab)(44-)8)a. may qualify for a
sexually oriented business license only when the time period required by section
10-: 164(ab)(44-)8)b. h as elapsed.
(d)(e) License Information and Posting. The license, if granted, shall state the name of
the person or persons to whom it is granted, the expiration date: and the address of
the sexually oriented business. The license shall be posted in a conspicuous place
at or near the entrance to the sexually oriented business so that it may be easily
read at any time.
Sec. 10-165. License fees; license investigation fees. The annual fee for a
sexually oriented business license shall be e,,,.,,.,.,o,,~-~;"~Oset,~_, by the city council ....... ~"t;en
The investigation fee for the purpose of issuing a license shall be estab!i.~d~edse~t by the
city council rest>!ution. In the event that the license is denied upon application, the
license fee shall be refunded; however, no part of the license investigation fee shall be
returned to the applicant. No part of the annual license fee shall be refunded if the license
is suspended or revoked.
Sec. 10-166. Inspection.
(a)(a) Inspection Required. An applicant, operator, or licensee shall permit
............ law enforcement officers and any other federal, state, county or city
agency in the performance of any function connected with the enforcement of this
article, no~Tnalty and arguably conducted by such agencies to inspect the premises
of a sexually oriented business for the purpose of insuring compliance with the
law, at any time it is occupied or open for business.
(b) Refusal. A person who operates a sexually oriented business or their agent or
employee commits an offense if the person refuses to permit a lawful inspection
of the premises by a representative of the police department at any time it is
occupied or open for business.
(c) Exception. The provisions of this section do not apply to areas of an adult
motel which are currently being rented by a customer for use as a permanent or
temporary habitation.
Sec. 10-167. Expiration of license.
(a)(a) Period of License and Renewal. Each renewal license shall be issued for a
maximum period of one (1) year. All licenses expire on June 30 of each year.
Each license may be renewed only by making application as provided in
Secti,'msection 10--163. Application for renewal should be made at least thirty
(30) days before the expiration date. If the council determines good and sufficient
cause is shown by the applicant for failure to file a timely renewal application, the
council may, if other provisions of this article are complied with, grant the
application.
u/~,.,,~,,:.../ Denial of License Renewal. if the city manager denies renewal of a
license, the applicant shall not be issued a license for one (1) year from the date of
denial. If, subsequent to denial, the city :nanaa,~r finds that the basis for denial of
the renewal license has been corrected or abated, the applicant may be granted a
license if at least ninety (90) days have elapsed since the date denial became final.
Sec. 10-168. Suspension. The city manager may suspend a license for a period not to
exceed thirty (30) days following written notice and an opportunity to be heard if the cit~
manager determines that a licensee or an employee of a license has:
(1) Violated or is not in compliance with this article;
orientec!Lusiness;pren',::,e~,, (3(2) Refused to allow an inspection of the
sexually oriented business premises as authorized by this article;
(43) Knowingly permitted unlawful gambling by any person on the sexually
oriented business premises;
(5)
Sec. 10-169. Revocation.
(a) Intent to Revoke. The city manager ma';. ........ ........~L"~ a ..~..~..~ ~: ................. t...~.~._...~..l~'~ 53~ ...... ...~.~..;~ ....
mXice .... ~ a .... ~.p...X .... t; to 5e 5eardshalt issue a written statement of intent to
revoke a sexually oriented business license if a cause forof suspension set fe:'t!~ in
......... section 10--168 occurs and the license has previotgs!y been suspended
within the preceding twelve (12) months.
Basis for Revocation. The city manager :nayshall issue a written statement of
intent to revoke a sexually oriented business licensep,.~,~,.,~,~..~'~A 5y ..... ................. ;. ......;,.~
........... m,.,rt~,2,,t; to l~e heard if the city manager determines that:
(1) A licensee gave false or misleading information in 1Se materia! s~:D'mitted
to the city during the application process;
.......... ~ ............ m,- has knowingly allowed
(2) A licensee or ....... ~ .... ~.-.~..v ......
possession, use, or sale of controlled substances on the premises;
......... ~ ............. ~'~" has knowingly allowed
(3) A licensee or ........ ~ .... ~.~....~. ......
prostitution on the premises;
(4) A licensee or an emp!eyceoperator knowingly operated the
sexually oriented business dunng a period of time when the licensee's
license was suspended;
(5) A licensee has been convicted of an offense listed in
sectionSection 10-;164(ab)(408)a. for which the time period required in
sectionSection 10-~ 164(ab)(4448)b. has not elapsed;
(6) On two (2) or more occasions within a twelve-month period, a
person or persons committed an offense occurring in or on the licensed
premises of a crime listed in sectionSection 10-;164(a_b)(408)a., for which
a conviction has been obtained, and the person or persons were employees
of the sexually oriented business at the time the offenses were committed;
(7) A licensee or an cn;p!oyeeoperator has knowingly allowed any act
of sexual intercourse, sodomy, oral copulation, masturbation, or sexual
contact to occur in or on the licensed premises. The term "sexual contact"
shall have the meaning as it is defined in Minnesota Statutes Section
609.341, o,,t..~[;.,;o;~ [ ~.~ ' ' ·
..................... ~.,:Subd~vls~on Il(b). This subsection shall not
apply to an adult motel, unless the licensee knowingly allowed sexua]
activities to occur either (i) in exchange for money, or (ii) in a public place
or with public view; or
(8) A licensee is delinquent in payment to the city for ad valorem
taxes, local lodging tax, or other taxes or fees related to the sexually
oriented business.
(c)(c) Appeal of Conviction. The fact that a conviction is being appealed shall have no
effect on the revocation of the license.
(d)(d) Exception. Subsection (b)(7) of this Section does not apply to adult motels as a
ground for revoking the license unless the licensee or employee knowingly
allowed the act of sexual intercourse, sodomy, oral copulation, masturbation, or
sexual contact to occur in a public place or within public view.
,,,,~"' xx/~,,. ,,,,,,,.,,.,~ Provisional License. When, after the notice and hearing procedure
described in Sec. 10-170, the city :nanager revokes a license, the revocation shall
continue for one (1) year and the licensee shall not be issued a sexually oriented
business license for one (1) year from the date revocation became effective_~
provided that, if the conditions of section 10-170(e) are met, a provisional license
shall be granted pursuant to that section. If, subsequent to revocation, the city
~finds that the basis for the revocation has been corrected or abated, the
applicant may be granted a license if at least ninety (90) days have elapsed since
the date the revocation became effective. If the license was gmaiedrevoked under
subsection (b)(7), an applicant may not be granted another license until the
appropriate number of years required under section 10-:164(ab)(40_8)a_b. have
elapsed.
Sec. 10-170. AppealHearing.; license denial; suspension; revocation; appeal.
........ s ........ t ........ ~,~...,.,,,--g .t ............. .,,,,, c:t> c.,.,,c;~,, makes a final
(a) Notification. If the city manager determines that facts exist for denial,
suspension, or revocation of a license under this aaicle, the city manager shall
notify thc applicant or licensee ("respondent") in writing of the intent to deny,
suspend, or revoke the license, including the grounds therefore, by personal
delivery or by certified mail. The notification shall be directed to the most current
business address on file with the city. Within five (5) working days of receipt of
such notice, the respondent may provide to the city manager, in writing, a
response that shall include a statement of reasons why the license or permit
should not be denied, suspended, or revoked. Within three (3) days of the receit~
of respondent's written response, the city manager shall notify respondent in
writing of the hearing date on respondent's denial, suspension, or revocatio~n
proceeding.
(5) Pr~ccdu:'r'(b) Appeal and Hearing. Within ten (10)
working days of the receipt of respondent's written response, the city shall
conduct a hearing on respondent's appeal of the city manager's decision. The city
council may appoint a committee of the council or an independent hearing officer
to hear the matter, report findings of fact and a recommendation for disposition to
the council. Hearings on the appeal shall be open to the public and the licensee or
applicant shall have the right to appear and be represented by legal counsel and to
offer evidence in its behalf. At the conclusion of the hearing, the city council
shall make a final decision. If a response is not received by the city in the time
stated or, if after the hearing, the city finds that grounds as specified in this article
exist for denial, suspension, or revocation, then such denial suspension, or
revocation shall become final five (5) days after the city sends, by certified mail,
written notice that the license has been denied, suspended, or revoked. Such
notice shall include a statement advising the applicant or licensee of the right to
appeal such decision to a court of competent jurisdiction.
If the city council finds that no grounds exist for denial, suspension, or revocation
of a license, then within five (5) days after the hearing, the city manager shall
withdraw the intent to deny, suspend, or revoke the license, and shall so notify the
respondent in writing by certified mail of such action and shall
contemporaneously issue the license.
(c) Judicial Review. Any decision of the city council shall be a final appealable order
and the applicant or licensee Caggrieved party") may seek prompt judicial review
of such administrative action in any court of competent jurisdiction.
(d) _ Stay of Decision. The filing of an appeal stays the action and decision of the city
council requiring, denying, suspending or revoking a license until sixty (60) days
after a final decision by the city council, to provide the aggrieved party sufficient
time to appeal the city council's decision to a court of competent .iurisdiction. If
the aggrieved party appeals the city council's decision within the sixty (60) days
provided, the stay shall be extended until a final iudicial decision is rendered in
the matter.
Provisional License. Upon the filing of any court action to appeal, challenge,
restrain, or otherwise enioin the city's enforcement of the denial, suspension,
revocation, or licensure requirement, the city shall immediately issue the
aggrieved party a provisional license. The provisional license shall allow the
aggrieved party to continue operation of the sexually oriented business or to
continue employment as a sexually oriented employee, as the case may be, and
wall expire upon the court s entry of a .ludament on the aggrieved party's action to
appeal, challenge, restrain, or otherwise enioin the city's enforcement.
Additional Requirements. The city council may condition denial, suspension,
revocation, or non-renewal of a license upon appropriate terms and conditions.
Sec. 10-171. Transfer of license. A licensee shall not transfer his or her
license to another, nor shall a licensee operate a sexually oriented business under the
authority of a license at any place other than the address designated in the application.
Sec. 10-172.
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t4M-74,. Additional regulations for escort agencies.
(a) An escort agency shall not employ any person under the age of eighteen
(18) years.
(b) A person commits an offense if he or she acts as an escort or agrees to act
as an escort for any person under the age of eighteen (18) years.
Sec. 10=!75.-173. Additional regulations for nude model studios.
(a) A nude model studio shall not employ any person under the age of
eighteen (18) years.
(b) A person commits an offense if he or she appears in a state of nudity or
knowingly allows another to appear in a state of nudity in an area of a nude model
studio premises which can be viewed from the public fight- of- way.
Sec. 10-!7,~. -174. Additional regulations for adult theaters and adult motion
picture theaters.
(a) A person commits an offense if he or she knowingly allows a person under
the age of eighteen (18) years to appear in a state of nudity in or on the premises
of an adult theater or adult motion picture theater.
(b) It is a defense to prosecution under subsection (a) of this section if the
person under eighteen (18) years was in a restroom not open to public view or
persons of the opposite sex.
Sec. 10-!77.-175. Additional regulations for adult motels.
(a) Evidence that a sleeping room in a hotel, motel, or similar commercial
establishment has been rented and vacated two (2) or more times in a period of
time that is less than ten (10) hours creates a rebuttable presumption that the
establishment is an adult motel as that term is defined in this article.
(b) A person commits an offense if, as the person in control of a sleeping
room in a hotel, motel, or similar commercial establishment that does not have a
sexually oriented business license, he or she rents or subrents a sleeping room to a
person and, within ten (10) hours from the time the room is rented, he or she rents
or subrents the same sleeping room again.
(c) For purposes of subsection (b) of this section, the terms "rent" or "subrent"
mean the act of permitting a room to be occupied for any form of consideration.
Sec. 10 !78. -176. Regulations pertaining to exhibition of sexually explicit films
videos,, or live entertainment in viewing rooms.
(a)(a) Requirements. A person who operates or causes to be operated a sexually
oriented business, other than an adult motel, which exhibits on the premises in a
viewing room of less than one hundred fifty (150) square feet of floor space, a
film, video cassette, live entertainment or other video reproduction which depicts
specified sexual activities or specified anatomical areas, shall comply with the
following requirements:
(1) Upon application for a sexually oriented business license, the application
shall be accompanied by a diagram of the premises showing a plan thereof
specifying the location of one (1) or more manager's stations and the
location of all overhead lighting fixtures and designating any portion of
the premises in which patrons will not be permitted. A manager's station
may not exceed thirty-two (32) square feet of floor area. The diagram
shall also designate the place at which the permit will be conspicuously
posted, ~of granted. A professionally prepared diagram in the nature of an
engineer's or architect's blueprint shall not be required; however, each
diagram should be oriented to the north or to some designated street or
object and should be drawn to a designated scale or with marked
dimensions sufficient to show the various internal dimensions of all areas
of the interior of the premises to an accuracy of plus or minus six (6)
inches. The city manager may waive the foregoing diagram for renewal
applications if the applicant adopts a diagram that was previously
submitted and certifies that the configuration of the premises has not been
altered since it was prepared.
(2) The application shall be sworn to be true and correct by the applicant.
(3) No alteration in the configuration or location of a manager's station may
be made without the prior approval of the city manager or bis or he~qt~s
designee.
(4) It is the duty of the owners and operator of the premises to ensure
that at least one (1) licensed employee is on duty and situated in each
manager's station at all times that any patron is present inside the
premises.
(5) The interior of the premises shall be configured in such a manner
that there is an unobstructed view from a manager's station of every area
of the premises to which any patron is permitted access for any purpose
excluding restrooms. Restrooms may not contain video reproduction
equipment. If the premises has two (2) or more manager's stations
designated, then the interior of the premises shall be configured in such a
manner that there is an unobstructed view of each area of the premises to
which any patron is permitted access for any purpose from at least one (1)
of the manager's stations. The view required in this subsection must be by
direct line of sight from the manager's station.
(6) It shall be the duty of the owners and operator, and it shall also be
the duty of any agents and employees present in the premises to ensure
that the view area specified in paragrapl: (5) of this subsection 5=(~remains
unobstructed by any doors, walls, merchandise, display racks or other
materials at all times that any patron is present in the premises and to
ensure that no patron is permitted access to any area of the premises which
has been designated as an area in which patrons will not be permitted in
the application filed pursuant to p~',rag:'aphsubsection (1) of this
s u b,~;ecti c,n section.
(7) The premises shall be equipped with
overhead lighting fixtures of sufficient intensity to illuminate every place
to which patrons are permitted access at an illumination of not less than
one (1.0) fc,~tcand!efoot-candle as measured at the floor level.
(8) It shall be the duty of the licensee, owners and operator and it shall
also be the duty of any agents and employees present in the
premises to ensure that the illumination described above, is maintained at
all times that any patron is present in the premises.
(9) No viewing room may be occupied by more than one (1) person at any
time.
(10)
booths.
No licensee shall allow openings of any kind to exist between
viewing rooms or
No person shall make or attempt to make an opening of any kind
between viewing booths or rooms.
(12)
The licensee shall, during each business day, regularly inspect the
walls between the viewing booths to determine if any openings or holes
exist and shall cover or repair all openings or holes with twenty-four (24)
hours.
(13)
The licensee shall cause all floor coverings in viewing booths to be
(14)
nonporous, easily cleanable surfaces, with no rugs or carpeting.
The licensee shall cause all wall surfaces and ceiling surfaces in
viewing booths to be constructed of, or permanently covered by,
nonporous, easily cleanable material. No wood, plywood, composition
board, or other porous material shall be used within forty-eight (48) inches
of the floor.
(b). Misdemeanor. A person having a duty under paragrap!:ssubsections (1)
through (gl4) of subsection (a) above commits an of!'ensea misdemeanor if the
person knowingly fails to fulfill that duty.
Sec. 10-177. General restrictions for conduct within a sexually oriented business.
(a) Distance Requirement for Live Entertainment. All performers, dancers, and
persons appearing in a semi-nude condition or 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 adioining the licensed facility where such entertainment can be
seen by patrons of the licensed facility shall remain at all times a minimum
(b)
distance of six (6) feet from all patrons, customers, or spectators and shall dance
or provide such entertainment on a platform intended fol' that purpose, which shall
be raised at least two (2) feet from the level of the floor on which patrons or
spectators are located.
Interaction with Patrons. No dancer, performer, or person while semi-nude or
(c)
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 adioining the licensed facility
where the entertainment can be seen by patrons of the licensed facility shall
knowingly or intentionally touch any spectator or patron or the clothing of any
spectator or patron.
Gratuity Prohibition. No customers, spectator, or patron of a licensed facility
shall directly pay or give any gratuity to any dancer or performer in a semi-nude
condition and no dancer or performer in a semi-nude condition shall solicit or
(d)
receive any pay or gratuity directly from any patron or spectator.
Hours of Operation. No sexually oriented business, except for an adult motel,
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 noon (12:00~) P.M. on Sundays.
< .... I0 179 ~-,r,. , .......... ~
Sec. 10-178. Additional regulations concerning public nudity. It shall be a
misdemeanor for a person to knowingly and intentionally, in a sexually oriented business,
appear in a state of nudity or engage in specified sexual activities.
Sec. 10-179. Prohibition a~ainst children in a sexually oriented business. No
licensee, operator or employee shall knowingly allow a person under the age of eighteen
(18) years on the premises of a sexually oriented business.
(h)Sec. 10-180. Exemptions. It is a defense to prosecution under this article that a
person appearing in a state of nudity did so in a modeling class operated:
(-Fa)By a proprietary school licensed by the State of Minnesota; a college,
junior college, or university supported entirely or partly by taxation;
(gb)By a private college or university which maintains and operates
t t I I
educational programs in which credits are mm~';l'errat;.etransferable to a college,
junior college, or university supported entirely or partly by taxation; or
(oc) In a structure:
a.(1) Which has no sign visible from the exterior of the structure and no
other advertising that indicates a nude person is available for viewing; and
b.(2~_) Where in order to participate in a class a student must enroll at
least three (3) ~day in advance of the class; and
one time.
Where no more than one (1) nude model is on the premises at any
Sec. 10-181. Enforcement. A person who operates or causes to be operated a sexually
oriented business without a valid license or in violation of secti~;n !0 ! 72 of this article is
subject to a suit for injunction as well as prosecution for criminal violations. Any person
violating a provision of this article, upon conviction, is guilty of a misdemeanor. Each
day a sexually oriented business so operates is a separate offense or violation.
Sec. 10-182. Severabilit¥. If any section, sentence, clause or phrase of this article is for
any reason held to be invalid, such decision shall not affect the validity of the remaining
portions of this article. The city council hereby declares that it would have adopted the
article and each subsection, sentence, clause, or phrase thereof, irrespective of the fact
that any one or more sections, subsections, sentences, clauses or phrases be declared
invalid.
*The sexually oriented business license fee adopted in October 1993 was $1,000.00.
Inflating this fee annually based on the consumer price index would result in a current
fee of $1,282. As part of the adoption of the revised sexually oriented business
ordinance, staff will amend Chapter 4 to include this licensing fee.
CITY OF CHANHASSEN
CARVER COUNTY, MINNESOTA
ORDINANCE NO.
AN ORDINANCE DEFINING, LICENSING, AND
REGULATING SEXUALLY ORIENTED BUSINESS
THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS:
SECTION 1. Chapter 10, Article VI, of the Chanhassen City Code is hereby amended in its entirety to read as follows:
ARTICLE VI. SEXUALLY ORIENTED BUSINESSES
Sec. 10-160. PURPOSE AND INTENT.
It is the purpose of this article to regulate sexually oriented businesses to promote the health, safety, morals, and general
welfare of the citizens of the City, to guard against the inception and transmission of disease, and to establish reasonable and
uniform regulations. The provisions of this article have neither the purpose nor effect of imposing a limitation or restriction
on the content of any communicative materials, including sexually oriented materials. Similarly, it is not the intent nor
effect of this article to restrict or deny access by adults to sexually oriented materials protected by the First Amendment, or
to deny access by the distributors and exhibitors of sexually oriented entertainment to their intended market.
The City Council further finds that experience from other cities demonstrates that sexually oriented businesses conducted in
private by members of the same or the opposite sex, and employing personnel with no specialized training, are susceptible
to operation in a manner contravening, subverting or endangering the health, safety and welfare of members of the
community by being the sites of acts of prostitution, illicit sex, and occasions of violent crimes, thus requiring close
inspection, licensing, and regulation.
Sec. 10-161. CLASSIFICATION. The following are classified as sexually oriented businesses:
A. adult arcades;
B. adult bookstores, adult video stores, adult stores;
C. adult cabarets;
D. adult conversation/rap parlors;
E. adult massage parlors;
F. adult motels;
G. adult motion picture theaters;
H. adult saunas;
I. adult theaters;
J. escort agencies;
K. nude model studios; and
L. sexual encounter centers.
Sec. 10-162. LICENSE REQUIRED.
Prohibition. It is unlawful tbr any person to operate a sexually oriented business without a valid sexually oriented business
license issued by the City for the particular type of business.
B. Application Form. An application for a sexually oriented business license must be made on a Ibrm provided by the City.
Required Information. An application shall be considered complete if it includes the information required in this Section.
The applicant shall be qualified according to the provisions of this article. The application shall be notarized. The
application shall include the information called for in subsections (i) through (6), and where applicable, subsection (7), as
follows:
1. The full true name and any other names used in the preceding five (5) years.
2. The current business address.
Either a set of fingerprints suitable for conducting necessary background checks pursuant to this article, or the
applicant's Social Security Number, to be used for the same purpose.
The name, business location, legal description, business mailing address and phone number of the proposed
sexually oriented business.
Written proof of age, in the form of either (i) a copy of a birth certificate and current photo (ii) a current driver's
license with picture, or (iii) other picture identification document issued by a governmental agency.
The issuing jurisdiction and the effective dates of any license or permit held by the applicant relating to a sexually
oriented business, and whether any such license or permit has been denied, revoked, or suspended, and if so, the
reason or reasons therefore.
7. The name and address of the statutory agent or other agent authorized to receive service of process.
The information provided pursuant to subsections (1) through (7) shall be supplemented in writing by certified mail, return
receipt requested, to the City Clerk within ten (10) working days of a change of circumstances which would render the
information originally submitted false or incomplete.
Diagram of Premises. The application for a sexually oriented business license 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 market dimensions
of the interior of the premises to an accuracy of plus or minus six inches. Applicants who must comply with Section 10-176
of this article shall submit a diagram meeting the requirements of that Section.
Inspections. The applicant must be qualified according to the provisions of this article and the premises must be inspected
and found to be in compliance with the law by the fire department and building official.
Execution of Application. If a person who wishes to operate a sexually oriented business is an individual, the individual
must sign the application for a license as applicant. If a person who wishes to operate a sexually oriented business is other
than an individual, each individual who has a 10 percent or greater interest in the business, and each officer, director,
general partner, or other person who will participate directly in decisions relating to management of the business must sign
the application for a license as applicant. Each applicant must be qualified under Section 10-164 and each applicant shall be
considered a licensee if a license is granted.
Gr.
No Exemption. A person who possesses a valid business license is not exempt from the requirement of obtaining any
required sexually oriented business license. A person who operates a sexually oriented business and possesses a business
license shall comply with the requirements and provisions of this article, where applicable.
Sec. 10-163. ISSUANCE OF LICENSE.
Temporary License. Upon the filing of a completed application for a sexually oriented business license, the City shall issue
a Temporary License to the applicant, which Temporary License shall expire upon the final decision of the City to deny or
grant the license.
104448 2
Approval of License. Within thirty (30) days after the receipt of a completed application, the City Manager or the City
Manager's desginee shall either issue a license, or issue a written notice of intent to deny a license, to the applicant. The
City shall approve the issuance of a license unless one or more of the following is found to be true:
1. An applicant is under 18 years of age.
2. An applicant is delinquent in the payment to the City of taxes, fees, fines, or penalties assessed against him or her
or imposed upon him or her in relation to a sexually oriented business.
3. An applicant has failed to provide information required under Section 10-163 or which is necessary for issuance of
the license or has falsely answered a question or request for information on the application form.
4. An applicant has been convicted of a violation of a provision of this article within two years immediately
preceding the application. The fact that a conviction is being appealed shall have no effect.
5. The premises to be used for the sexually oriented business has not been approved by the fire department and the
building official as being in compliance with applicable laws and ordinances.
6. The license fee required by this article has not been paid.
7. An applicant or the proposed establishment is in violation of or is not in compliance with this article.
8. An applicant has been convicted of a crime:
a. involving any of the following offenses:
(1) prostitution as described in Minn. Stat. 8 609.321;
(2) solicitation, inducement of promotion of prostitution as described in Minn. Stat. § 609.322;
(3) receiving profit derived from prostitution as described in Minn.
Stat. 8 609.323;
(4) other prohibited acts relating to prostitution as described in Minn. Stat. 8 609.324;
(5) obscenity as described in Minn. Stat. § 617.241;
(6) sale, dissemination, distribution, display or exhibition of harmful materials to minors as
described in Minn. Stat. §8 617.293 and 617.294;
(7) sexual performance by a child as described in Minn. Stat. § 617.246;
(8) dissemination or possession of child pornography as described in Minn. Stat. § 617.247;
(9) indecent exposure as described in Minn. Stat. § 617.23;
(10) criminal sexual conduct as described in Minn. Stat. 8§ 609.342, 609.343,609.344, and 609.345;
(11) incest, as described in Minn. Stat. 8 609.365; or
(12) criminal attempt, conspiracy, or solicitation to commit any of the foregoing offenses:
b. 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;
104448 3
(2)
less than five years have elapsed since the date of conviction or the date of release from
confinement for the conviction, whichever is the later date, if the conviction is of 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 convictions are of two or
more misdemeanor offenses or combination of misdemeanor offenses occurring within any
24-month period.
9. The proposed sexually oriented business would or does not comply with the City's zoning article.
Conviction. The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant. For
purposes of this Section, "conviction":
1. means a conviction or a guilty plea; and
includes a conviction of any business entity for which the applicant had, at the time of the offense leading to the
conviction for a crime designated under this Section, a management responsibility or a controlling interest.
Time Periods. An applicant who has been convicted of an offense listed in Section 10-164(b)(8)(a) may qualify for a
sexually oriented business license only when the time period required by Section 10-164(b)(8)(b) has elapsed.
License Information and Posting. The license, if granted, shall state the name of the person or persons to whom it is
granted, the expiration date and the address of the sexually oriented business. The license shall be posted in a conspicuous
place at or near the entrance to the sexually oriented business so that it may be easily read at any time.
Sec. 10-164. LICENSE FEES; LICENSE INVESTIGATION FEES.
The annual fee for a sexually oriented business license shall be set by the City Council. The investigation fee for the purpose of
issuing a license shall be set by the City Council. In the event that the license is denied upon application, the license fee shall be
refunded; however, no part of the license investigation fee shall be returned to the applicant. No part of the annual license fee shall
be refunded if the license is suspended or revoked.
Sec. 10-165. INSPECTION.
Inspection Required. An applicant, operator, or licensee shall permit law enforcement officers and any other federal, state,
county or city agency in the performance of any function connected with the enforcement of this article, normally and
arguably conducted by such agencies to inspect the premises of a sexually oriented business for the purpose of insuring
compliance with the law, at any time it is occupied or open for business.
Refusal. A person who operates a sexually oriented business or their agent or employee commits an offense if the person
refuses to permit a lawful inspection of the premises by a representative of the police department at any time it is occupied
or open for business.
Exception. The provisions of this section do not apply to areas of an adult motel which are currently being rented by a
customer for use as a permanent or temporary habitation.
Sec. 10-166. EXPIRATION OF LICENSE.
Period of License and Renewal. Each renewal license shall be issued for a maximum period of one (1) year. All licenses
expire on June 30 of each year. Each license may be renewed only by making application as provided in Section 10-163.
Application for renewal should be made at least 30 days before the expiration date. If the Council determines good and
sufficient cause is shown by the Applicant for failure to file a timely renewal application, the Council may, if other
provisions of this article are complied with, grant the application.
Denial of License Renewal. If the City denies renewal of a license, the applicant shall not be issued a license for one year
from the date of denial. If, subsequent to denial, the City finds that the basis for denial of the renewal license has been
corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the date denial became
final.
104448 4
Sec. 10-167. SUSPENSION.
The City Manager may suspend a license for a period not to exceed thirty (30) days following written notice and an opportunity to be
heard if the City Manager determines that a licensee or an employee of a license has:
A. violated or is not in compliance with this article;
B. refused to allow an inspection of the sexually oriented business premises as authorized by this article;
C. knowingly permitted unlawful gambling by any person on the sexually oriented business premises;
Sec. 10-168. REVOCATION.
Intent to Revoke. The City Manager shall issue a written statement of intent to revoke a sexually oriented business license
if a cause of suspension in Section 10-168 occurs and the license has been suspended within the preceding 12 months.
Basis for Revocation. The City Manager shall issue a written statement of intent to revoke a sexually oriented business
license if the City Manager determines that:
1. a licensee gave false or misleading information to the City during the application process;
2. a licensee or operator has knowingly allowed possession, use, or sale of controlled substances on the premises;
3. a licensee or operator has knowingly allowed prostitution on the premises;
a licensee or operator knowingly operated the sexually oriented business during a period of time when the
licensee's license was suspended;
a licensee has been convicted of an offense listed in Section 10-164(b)(8)(a) for which the time period required in
Section 10-164(b)(8)(b) has not elapsed;
on two or more occasions within a 12-month period, a person or persons committed an offense occurring in or on
the licensed premises of a crime listed in Section 10-164(b)(8)(a), for which a conviction has been obtained, and
the person or persons were employees of the sexually oriented business at the time the offenses were committed;
a licensee or operator has knowingly allowed any act of sexual intercourse, sodomy, oral copulation, masturbation,
or sexual contact to occur in or on the licensed premises. The term "sexual contact" shall have the meaning as it is
defined in Minn. Stat. § 609.341, Subd. Il(b). This subsection shall not apply to an adult motel, unless the
licensee knowingly allowed sexual activities to occur either (i) in exchange tbr money, or (ii) in a public place or
with public view; or
a licensee is delinquent in payment to the City for ad valorem taxes, local lodging tax, or other taxes or fees related
to the sexually oriented business.
C. Appeal of Conviction. The fact that a conviction is being appealed shall have no effect on the revocation of the license.
Exception. Subsection (B)(7) of this Section does not apply to adult motels as a ground for revoking the license unless the
licensee or employee knowingly allowed the act of sexual intercourse, sodomy, oral copulation, masturbation, or sexual
contact to occur in a public place or within public view.
Provisional License. When, after the notice and hearing procedure described in Sec. 10-170, the City revokes a license, the
revocation shall continue for one year and the licensee shall not be issued a sexually oriented business license for one year
from the date revocation became effective, provided that, if the conditions of Section 10-170(E) are met, a Provisional
License shall be granted pursuant to that Section. If, subsequent to revocation, the City finds that the basis for the
revocation has been corrected or abated, the applicant may be granted a license if at least 90 days have elapsed since the
date the revocation became effective. If the license was revoked under Subsection (B)(7), an applicant may not be granted
another license until the appropriate number of years required under Section 10-164(b)(8)(b) have elapsed.
Sec. 10-169. HEARING; LICENSE DENIAL, SUSPENSION, REVOCATION; APPEAL.
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Notification. If the City Manager determines that facts exist for denial, suspension, or revocation of a license under this
article, the City Manager shall notify the applicant or licensee ("respondent") in writing of the intent to deny, suspend, or
revoke the license, including the grounds therefore, by personal delivery or by certified mail. The notification shall be
directed to the most current business address on file with the City. Within five (5) working days of receipt of such notice,
the respondent may provide to the City Manager, in writing, a response that shall include a statement of reasons why the
license or permit should not be denied, suspended, or revoked. Within three (3) days of the receipt of respondent's written
response, the City Manager shall notify respondent in writing of the hearing date on respondent's denial, suspension, or
revocation proceeding.
Appeal and Hearing. Within ten (10) working days of the receipt of respondent's written response, the City shall conduct a
hearing on respondent's appeal of the City Manager's decision. The City Council may appoint a committee of the Council
or an independent hearing officer to hear the matter, report findings of fact and a recommendation for disposition to the
Council. Hearings on the appeal shall be open to the public and the licensee or applicant shall have the right to appear and
be represented by legal counsel and to offer evidence in its behalf. At the conclusion of the hearing, the City Council shall
make a final decision. If a response is not received by the City in the time stated or, if after the hearing, the City finds that
grounds as specified in this article exist for denial, suspension, or revocation, then such denial suspension, or revocation
shall become final five (5) days after the City sends, by certified mail, written notice that the license has been denied,
suspended, or revoked. Such notice shall include a statement advising the applicant or licensee of the right to appeal such
decision to a court of competent jurisdiction.
If the City Council finds that no grounds exist for denial, suspension, or revocation of a license, then within five (5) days
after the hearing, the City Manager shall withdraw the intent to deny, suspend, or revoke the license, and shall so notify the
respondent in writing by certified mail of such action and shall contemporaneously issue the license.
Judicial Review. Any decision of the City Council shall be a final appealable order and the applicant or licensee
("aggrieved party") may seek prompt judicial review of such administrative action in any court of competent jurisdiction.
Stay of Decision. The filing of an appeal stays the action and decision of the City Council requiring, denying, suspending
or revoking a license until 60 days after a final decision by the City Council, to provide the aggrieved party sufficient time
to appeal the City Council's decision to a court of competent jurisdiction. If the aggrieved party appeals the City Council's
decision within the 60 days provided, the stay shall be extended until a final judicial decision is rendered in the matter.
Provisional License. Upon the filing of any court action to appeal, challenge, restrain, or otherwise enjoin the City's
enforcement of the denial, suspension, revocation, or licensure requirement, the City shall immediately issue the aggrieved
party a Provisional License. The Provisional License shall allow the aggrieved party to continue operation of the sexually
oriented business or to continue employment as a sexually oriented employee, as the case may be, and will expire upon the
court's entry of a judgment on the aggrieved party's action to appeal, challenge, restrain, or otherwise enjoin the City's
enforcement.
Additional Requirements. The City Council may condition denial, suspension, revocation, or non-renewal of a license upon
appropriate terms and conditions.
Sec. 10-170. TRANSFER OF LICENSE.
A licensee shall not transfer his or her license to another, nor shall a licensee operate a sexually oriented business under the authority
of a license at any place other than the address designated in the application.
Sec. 10-171. ADDITIONAL REGULATIONS FOR ESCORT AGENCIES.
A. An escort agency shall not employ any person under the age of 18 years.
A person commits an offense if he or she acts as an escort or agrees to act as an escort for any person under the age of 18
years.
Sec. 10-172. ADDITIONAL REGULATIONS FOR NUDE MODEL STUDIOS.
A. A nude model studio shall not employ any person under the age of 18 years.
A person commits an offense if he or she appears in a state of nudity or knowingly allows another to appear in a state of
nudity in an area of a nude model studio premises which can be viewed fi'om the public right of way.
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Sec. 10-173. ADDITIONAL REGULATIONS FOR ADULT THEATERS AND ADULT MOTION PICTURE
THEATERS.
A person commits an offense if he or she knowingly allows a person under the age of 18 years to appear in a state of nudity
in or on the premises of an adult theater or adult motion picture theater.
It is a defense to prosecution under Subsection (A) of this section if the person under 18 years was in a restroom not open to
public view or persons of the opposite sex.
Sec. 10-174. ADDITIONAL REGULATIONS FOR ADULT MOTELS.
Evidence that a sleeping room in a hotel, motel, or similar commercial establishment has been rented and vacated two or
more times in a period of time that is less than 10 hours creates a rebuttable presumption that the establishment is an adult
motel as that term is defined in this article.
A person commits an offense if, as the person in control of a sleeping room in a hotel, motel, or similar commercial
establishment that does not have a sexually oriented business license, he or she rents or subrents a sleeping room to a person
and, within 10 hours from the time the room is rented, he or she rents or subrents the same sleeping room again.
For purposes of subsection (B) of this Section, the terms "rent" or "subrent" mean the act of permitting a room to be
occupied for any form of consideration.
Sec. 10-175. REGULATIONS PERTAINING TO EXHIBITION OF SEXUALLY EXPLICIT FILMS, VIDEOS, OR LIVE
ENTERTAINMENT IN VIEWING ROOMS.
Requirements. A person who operates or causes to be operated a sexually oriented business, other than an adult motel,
which exhibits on the premises in a viewing room of less than 150 square feet of floor space, a film, video cassette, live
entertainment or other video reproduction which depicts specified sexual activities or specified anatomical areas, shall
comply with the following requirements:
Upon application for a sexually oriented business license, the application shall be accompanied by a diagram of the
premises showing a plan thereof specifying the location of one or more manager's stations and the location of all
overhead lighting fixtures and designating any portion of the premises in which patrons will not be permitted. A
manager's station may not exceed 32 square feet of floor area. The diagram shall also designate the place at which
the permit will be conspicuously posted, of granted. A professionally prepared diagram in the nature of an
engineer's or architect's blueprint shall not be required; however, each diagram should be oriented to the north or to
some designated street or object and should be drawn to a designated scale or with marked dimensions sufficient
to show the various internal dimensions of all areas of the interior of the premises to an accuracy of plus or minus
six inches. The City may waive the foregoing diagram for renewal applications if the applicant adopts a diagram
that was previously submitted and certifies that the configuration of the premises has not been altered since it was
prepared.
2. The application shall be sworn to be true and correct by the applicant.
No alteration in the configuration or location of a manager's station may be made without the prior approval of the
City or its designee.
It is the duty of the owners and operator of the premises to ensure that at least one licensed employee is on duty
and situated in each manager's station at all times that any patron is present inside the premises.
The interior of the premises shall be configured in such a manner that there is an unobstructed view from a
manager's station of every area of the premises to which any patron is permitted access tbr any purpose excluding
restrooms. Restrooms may not contain video reproduction equipment. If the premises has two or more manager's
stations designated, then the interior of the premises shall be configured in such a manner that there is an
unobstructed view of each area of the premises to which any patron is permitted access for any purpose from at
least one of the manager's stations. The view required in this subsection must be by direct line of sight from the
manager's station.
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It shall be the duty of the owners and operator, and it shall also be the duty of any agents and employees present in
the premises to ensure that the view area specified in subsection (5) remains unobstructed by any doors, walls,
merchandise, display racks or other materials at all times that any patron is present in the premises and to ensure
that no patron is permitted access to any area of the premises which has been designated as an area in which
patrons will not be permitted in the application filed pursuant to subsection (1) of this section.
The premises shall be equipped with overhead lighting fixtures of sufficient intensity to illuminate every place to
which patrons are permitted access at an illumination of not less than one (1.0) foot-candle as measured at the floor
level.
It shall be the duty of the licensee, owners and operator and it shall also be the duty of any agents and employees
present in the premises to ensure that the illumination described above, is maintained at all times that any patron is
present in the premises.
9. No viewing room may be occupied by more than one (i) person at any time.
10.
No licensee shall allow openings of any kind to exist between viewing rooms or
booths.
11. No person shall make or attempt to make an opening of any kind between viewing booths or rooms.
12.
The licensee shall, during each business day, regularly inspect the walls between the viewing booths to determine
if any openings or holes exist and shall cover or repair all openings or holes with 24 hours.
13.
The licensee shall cause all floor coverings in viewing booths to be nonporous, easily cleanable surfaces, with no
rugs or carpeting.
14.
The licensee shall cause all wall surfaces and ceiling surfaces in viewing booths to be constructed of, or
permanently covered by, nonporous, easily cleanable material. No wood, plywood, composition board, or other
porous material shall be used within forty-eight (48) inches of the floor.
Misdemeanor. A person having a duty under subsections (1) through (14) of subsection (A) above commits a misdemeanor
if the person knowingly fails to fulfill that duty.
Sec. 10-176. GENERAL RESTRICTIONS FOR CONDUCT WITHIN A SEXUALLY ORIENTED BUSINESS:
Distance Requirement for Live Entertainment. All perl~brmers, dancers, and persons appearing in a semi-nude condition or
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 facility
where such entertainment can be seen by patrons of the licensed facility shall remain at all times a minimum distance of six
(6) feet from all patrons, customers, or spectators and shall dance or provide such entertainment on a platlbrm intended for
that purpose, which shall be raised at least two (2) feet from the level of the floor on which patrons or spectators are located.
Interaction with Patrons. No dancer, performer, or person while semi-nude or 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 facility where the entertainment can be seen by
patrons of the licensed facility shall knowingly or intentionally touch any spectator or patron or the clothing of any spectator
or patron.
Gratuity Prohibition. No customers, spectator, or patron of a licensed facility shall directly pay or give any gratuity to any
dancer or performer in a semi-nude condition and no dancer or performer in a semi-nude condition shall solicit or receive
any pay or gratuity directly from any patron or spectator.
Hours of Operation. No sexually oriented business, except for an adult motel, 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 noon (12:00) P.M. on Sundays.
Sec. 10-177. ADDITIONAL REGULATIONS CONCERNING PUBLIC NUDITY.
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It shall be a misdemeanor for a person to knowingly and intentionally, in a sexually oriented business, appear in a state of nudity or
engage in specified sexual activities.
Sec. 10-178. PROHIBITION AGAINST CHILDREN IN A SEXUALLY ORIENTED BUSINESS.
No licensee, operator or employee shall knowingly allow a person under the age of eighteen (18) years on the premises of a sexually
oriented business.
Sec. 10-179. EXEMPTIONS.
It is a defense to prosecution under this article that a person appearing in a state of nudity did so in a modeling class operated:
by a proprietary school licensed by the State of Minnesota; a college, junior college, or university supported entirely or
partly by taxation;
by a private college or university which maintains and operates educational programs in which credits are transferable to a
college, junior college, or university supported entirely or partly by taxation; or
C. in a structure:
which has no sign visible from the exterior of the structure and no other advertising that indicates a nude person is
available for viewing; and
2. where in order to participate in a class a student must enroll at least three days in advance of the class; and
3. where no more than one nude model is on the premises at any one time.
Sec. 10-180. ENFORCEMENT.
A person who operates or causes to be operated a sexually oriented business without a valid license or in violation of this article is
subject to a suit for injunction as well as prosecution for criminal violations. Any person violating a provision of this article, upon
conviction, is guilty of a misdemeanor. Each day a sexually oriented business so operates is a separate offense or violation.
Sec. 10-181. SEVERABILITY.
If any section, sentence, clause or phrase of this article is for any reason held to be invalid, such decision shall not affect the validity
of the remaining portions of this article. The City Council hereby declares that it would have adopted the article and each subsection,
sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be
declared invalid.
SECTION 2. This ordinance shall be effective immediately upon its passage and publication.
PASSED AND ADOPTED this
Minnesota.
__day of
2004, by the City Council of the City of Chanhassen,
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
(Published in the Chanhassen Villager on
2004).
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