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ORD 07-06CITY OF OTSEGO WRIGHT COUNTY, MINNESOTA ORDINANCE NO. 2007 — 06 AN ORDINANCE RELATING TO THE LICENSING AND REGULATION OF ADULT USE BUSINESSES WITHIN THE CITY OF OTSEGO THE CITY COUNCIL OF OTSEGO ORDAINS: Section 1. Chapter 7, Section 12 of the Otsego City Code shall be added to read as follows: SECTION 12 ADULT USE BUSINESSES Section 7-12-1 Purpose and Intent 7-12-2 Definitions 7-12-3 Classification 7-12-4 License Required 7-12-5 Issuance of License 7-12-6 License Fees 7-12-7 Inspection 7-12-8 Expiration of License 7-12-9 Suspension of License 7-12-10 Revocation of License 7-12-11 Hearing and Appeal 7-12-12 Transfer of License 7-12-13 Additional Regulations 7-12-14 Prohibition against Children in an Adult Use Businesses 7-12-15 Exemptions 7-12-16 Enforcement 7-12-17 Severability 7-12-1: PURPOSE AND INTENT: A. It is the purpose of this chapter 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 chapter 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 of this chapter 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 regulation. C. Minnesota State Statute Section 617.242 shall not apply. 7-12-2: DEFINITIONS: The following words, terms, and phrases, when used in this chapter, shall have the following meaning: Adult Arcade: 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: A commercial establishment which as a principal business purpose offers for sale or rental for any form of consideration any one or more of the following: A. Books, magazines, periodicals or other printed matter, or photographs, films, motion pictures, videocassettes or video reproductions, slides, or other visual representations which depict or describe "specified sexual activities" or "specified anatomical areas"; or B. Instruments, devices, or paraphernalia which are designed for use in connection with "specified sexual activities". Adult Cabaret: A nightclub, bar, restaurant, or similar commercial establishment which regularly features: A. Persons who appear seminude or in a state of nudity; or B. Live performances which are characterized by the exposure of "specified anatomical areas" or by "specified sexual activities"; or C. Films, motion pictures, videocassettes, 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: 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: 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: A hotel, motel or similar commercial establishment which: A. Offers accommodations to the public for any form of consideration; provides patrons with closed-circuit television transmissions, films, motion pictures, videocassettes, 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 B. Offers a sleeping room for rent for a period of time that is less than ten (10) hours; or C. 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: A commercial establishment where, for any form of consideration, films, motion pictures, videocassettes, 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: 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: A theater, concert hall, auditorium, or similar commercial establishment which regularly features persons who appear seminude or in a state of nudity or live performances which are characterized by the exposure of "specified anatomical areas" or by "specified sexual activities". City Administrator: The city administrator of the City of Otsego. Distinguished or Characterized by an Emphasis Upon: 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". Employee, Employ or Employment: Describes and pertains 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: 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: 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. Establish or Establishment: Means and includes any of the following: A. The opening or commencement of any sexually oriented business as a new business; B. The conversion of an existing business, whether or not a sexually oriented business, to any sexually oriented business; C. The addition of any sexually oriented business to any other existing sexually oriented business; or D. The relocation of any sexually oriented business. Licensee: 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; and, in the case of an employee, a person in whose name a license has been issued authorizing employment in a sexually oriented business. Nude Model Studio: 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: A. The appearance of a human bare anus, male genitals, female genitals, or female breast; or B. A state of dress which fails to opaquely cover a human anus, male genitals, female genitals, or areola of the female breast. Operate or Cause to be Operated: To cause to function or to put or keep in a state of doing business. Operator: 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: An individual, proprietorship, partnership, corporation, association, or other legal entity. Regular Features or Regularly Shown: 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. Seminude or in a Seminude Condition: A state of dress in which clothing covers no more than the genitals, pubic region, and areola of the female breast, as well as portions of the body covered by supporting straps or devices. Sexual Encounter Center: A business or commercial enterprise that, as one of its primary business purposes, offers for any form of consideration a place where two (2) or more persons may congregate, associate, or consort for the purpose 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 or Adult Use Business: 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: A. Human male genitals in a discernibly turgid state, even if completely and opaquely covered; or B. Less than completely and opaquely covered human genitals, pubic region, 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: A. The fondling or other erotic touching of human genitals, pubic region, buttocks, anus, or female breasts; B. Sex acts, normal or perverted, actual or simulated, including intercourse, oral copulation, or sodomy; C. Masturbation, actual or simulated; or D. Excretory functions as part of or in connection with any of the activities set forth in subsections A through C of this definition. Substantial Enlargement of a Sexually Oriented Business: The increase in floor area occupied by the business by more than twenty five percent (25%), as the floor area existed on the effective date hereof. Transfer of Ownership or Control of a Sexually Oriented Business: Means and includes any of the following: A. The sale, lease, or sublease of the business; B. The transfer of securities which constitute a controlling interest in the business, whether by sale, exchange,. or similar means; or C. 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. 7-12-3: 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. 7-12-4: LICENSE REQUIRED: A. Prohibition: It is unlawful: For 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. 2. For any person who operates a sexually oriented business to employ a person to work for the sexually oriented business who is not licensed as a sexually oriented business employee by the city pursuant to this chapter. 3. For any person to obtain employment with a sexually oriented business without having secured a sexually oriented business employee license pursuant to this chapter. B. Application Form: An application for a sexually oriented business license or a sexually oriented business employee license must be made on a form provided by the city clerk. 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 chapter. The application shall be notarized. The application shall include the following information: 1. The applicant's 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 chapter, or the applicant's social security number, to be used for the same purpose. 4. If the application is for a sexually oriented business license, 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: a) a copy of a birth certificate and current photo, b) a current driver's license with picture, or c) 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 the reason or reasons therefore. 7. If the application is for a sexually oriented business license, the name and address of the statutory agent or other agent authorized to receive service of process. D. The information provided pursuant to subsections C.1 through C.7 of this section 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. E. 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 (±6"). Applicants who must comply with section 7-12-13 of this chapter shall submit a diagram meeting the requirements of that section. F. Inspections: The applicant must be qualified according to the provisions of this chapter and the premises must be inspected and found to be in compliance with the law by the fire department and building official. G. 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 percent (10%) 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 7-12-5 of this chapter and each applicant shall be considered a licensee if a license is granted. H. 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 chapter, where applicable. 12-5: ISSUANCE OF LICENSE: A. Temporary License: Upon the filing of a completed application for a sexually oriented business license or a sexually oriented business employee 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. B. Approval of License: Within thirty (30) days after the receipt of a completed application, the city administrator shall either issue a license, or issue a written notice of intent to deny a license, to the applicant. The city administrator shall approve the issuance of a license unless one 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 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 7-12- 4 of this chapter 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 chapter within two (2) 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 chapter has not been paid. 7. An applicant or the proposed establishment is in violation of or is not in compliance with this chapter. 8. An applicant has been convicted of a crime: 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; C. (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 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 (24) month period. 9. The proposed sexually oriented business would or does not comply with the city's zoning ordinance. 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": 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. D. Time Periods: An applicant who has been convicted of an offense listed in subsection B.8.a of this section may qualify for a sexually oriented business license only when the time period required by subsection B.8.b of this section has elapsed. 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, if the license is for a sexually oriented business, the address of the sexually oriented business. A sexually oriented business employee license shall contain a photo of the licensee. 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. A sexually oriented business employee shall keep the employee's license on his or her person or on the premises where the licensee is then working or performing, and shall produce such license for inspection upon request by a law enforcement officer or other authorized city official. 7-12-6: LICENSE FEES: The annual fee for a sexually oriented business license and a sexually oriented business employee license shall be set by resolution of the city council. The investigation fee for the purpose of issuing a license shall be set by resolution of 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. 7-12-7: INSPECTION: 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 chapter, normally and arguably conducted by such agencies to inspect the premises of a sexually oriented business for the purpose of ensuring 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. 12-8: EXPIRATION OF LICENSE: A. Period of License and Renewal: Each renewal license shall be issued for a maximum period of one year. All licenses expire on December 31 of each year. Each license may be renewed only by making application as provided in section 7-12-4 of this chapter. Application for renewal should be made at least ninety (90) 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 the chapter are complied with, grant the application. B. Denial of License Renewal: If the city administrator 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 administrator 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 7-12-9: SUSPENSION OF LICENSE: The City Administrator may suspend a license for a period not to exceed thirty (30) days following written notice and an opportunity to be heard if the administrator determines that a licensee or an employee of a license has: A. Violated or is not in compliance with this chapter; B. Refused to allow an inspection of the sexually oriented business premises as authorized by this chapter; C. Knowingly permitted unlawful gambling by any person on the sexually oriented business premises. 7-12-10: REVOCATION OF LICENSE: A. Intent to Revoke: The city administrator shall issue a written statement of intent to revoke a sexually oriented business license if a cause of suspension in section 7-12-9 of this chapter occurs and the license has been suspended within the preceding twelve (12) months. B. Basis for Revocation: The city administrator shall issue a written statement of intent to revoke a sexually oriented business license if the city administrator 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; 4. A licensee or operator knowingly operated the sexually oriented business during a period of time when the licensee's license was suspended; 5. A licensee has been convicted of an offense listed in subsection 7-12- 5.B.8.a of this chapter for which the time period required in subsection 7- 12-5.B.8.b of this chapter has not elapsed; 6. On two (2) or more occasions within a twelve (12) month period, a person or persons committed an offense occurring in or on the licensed premises of a crime listed in subsection 7-12-5.B.8.a of this chapter, 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 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 Minnesota statutes section 609.341, subdivision 11(b). This subsection shall not apply to an adult motel, unless the licensee knowingly allowed sexual activities to occur either: a) in exchange for money, or b) in a public place or within 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. Appeal of Conviction: The fact that a conviction is being appealed shall have no effect on the revocation of the license. D. Exception: Subsection B.7 of this section does not apply to adult motels as grounds 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. E. Provisional License: When, after the notice and hearing procedure described in section 7-12-11 of this chapter, the city administrator 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 subsection 7-12-11.13 of this chapter are met, a provisional license shall be granted pursuant to that section. If, subsequent to revocation, the city administrator 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 revoked under subsection B7 of this section, an applicant may not be granted another license until the appropriate number of years required under subsection 7-12-5.B.8.b of this chapter have elapsed. 7-12-11: HEARING AND APPEAL: A. Notification: If the city administrator determines that facts exist for denial, suspension, or revocation of a license under this chapter, the city administrator 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 administrator. Within five (5) working days of receipt of such notice, the respondent may provide to the city administrator, 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 administrator shall notify respondent in writing of the hearing date on respondent's denial, suspension, or revocation proceeding. 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 administrator'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 chapter 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 administrator 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 ("aggrieved 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 of the city administrator in 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 jurisdiction. If the aggrieved party appeals the city council's decision within the sixty (60) days provided, the stay shall be extended until a final judicial decision is rendered in the matter. E. 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. F. Additional Requirements: The city council may condition denial, suspension, revocation, or nonrenewal of a license upon appropriate terms and conditions. 7-12-12: 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. 12-13: ADDITIONAL REGULATIONS A. Escort Agencies: An escort agency shall not employ any person under the age of eighteen (18) years. 2. 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. B. Nude Model Studios: 1. A nude model studio shall not employ any person under the age of eighteen (18) years. 2. 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 right of way. C. Adult Theaters and Adult Motion Picture Theaters: 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. 2. 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. D. Adult Motels: 1. 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 chapter. 2. 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. E. Exhibition of Sexually Explicit Films, Videos, or Live Entertainment in Video Rooms: 1. 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, videocassette, live entertainment or other video reproduction which depicts specified sexual activities or specified anatomical areas, shall comply with the following requirements: a. 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 thirty two (32) square feet of floor area. The diagram shall also designate the place at which the permit will be conspicuously posted, if 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 (±6"). The city administrator 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. b. The application shall be sworn to be true and correct by the applicant. C. No alteration in the configuration or location of a manager's station may be made without the prior approval of the city administrator or his or her designee. d. 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. e. 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 of the manager's stations. The view required in this subsection must be by direct line of sight from the manager's station. f. 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 A5 of this section 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 Al of this section. g. 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. h. 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. L No viewing room may be occupied by more than one person at any time. j. No licensee shall allow openings of any kind to exist between viewing rooms or booths. k. No person shall make or attempt to make an opening of any kind between viewing booths or rooms. I. 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. M. The licensee shall cause all floor coverings in viewing booths to be nonporous, easily cleanable surfaces, with no rugs or carpeting. n. 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 inches (48") of the floor. 2. Misdemeanor: A person having a duty under subsections 1.a through 1.n of this section commits a misdemeanor if the person knowingly fails to fulfill that duty. F. Conduct within an Adult Use Business: Distance Requirement For Live Entertainment: All performers, dancers, and persons appearing in a seminude 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 feet (6') from all patrons, customers, or spectators and shall dance or provide such entertainment on a platform intended for that purpose, which shall be raised at least two feet (2') from the level of the floor on which patrons or spectators are located. 2. Interaction With Patrons: No dancer, performer, or person while seminude 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. 3. 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 seminude condition and no dancer or performer in a seminude condition shall solicitor receive any pay or gratuity directly from any patron or spectator. 4. 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 twelve o'clock (12:00) noon on Sundays. G. 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. 7-12-14: PROHIBITION AGAINST CHILDREN IN AN ADULT USE 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. 7-12-15: EXEMPTIONS: It is a defense to prosecution under this chapter that a person appearing in a state of nudity did so in a modeling class operated: A. By a proprietary school licensed by the state of Minnesota; a college, junior college, or university supported entirely or partly by taxation; B. 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 (3) days in advance of the class; and 3. Where no more than one nude model is on the premises at any one time. 7-12-16: ENFORCEMENT: A person who operates or causes to be operated a sexually oriented business without a valid license or in violation of this chapter is subject to a suit for injunction as well as prosecution for criminal violations. Any person violating a provision of this chapter, upon conviction, is guilty of a misdemeanor. Each day a sexually oriented business so operates is a separate offense or violation. 3-12-17: SEVERABILITY: If any section, sentence, clause or phrase of this chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The city council hereby declares that it would have adopted the chapter 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. MOTION BY: CM Vern Heidner SECOND BY: CM Jessica Stockamp ALL IN FAVOR: Mayor Larry Fournier; Councilmembers : Vern Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald and Mark Thorsted THOSE OPPOSED: NONE ADOPTED this 25" day of June, 2007 by the City Council of the City of Otsego, Minnesota. CITY OF OTSEGO BY: Z- ;� --e- 'Larry Vo6rnief, Mayor ATTEST: J d Hud t City Clerk/Zoning Administrator SUMMARY OF ORDINANCE NO.: 2007-06 CITY OF OTSEGO COUNTY OF WRIGHT, MINNESOTA AN ORDINANCE RELATING TO THE LICENSINGREGULATION OF ADULT USE BUSINESSES WITHIN THE CITY OF OTSEGO THE CITY COUNCIL OF THE CITY OF OTSEGO DOES HEREBY ORDAIN: Section 1. The following Sections of the Otsego City Code are hereby added: 7-12-1 Purpose and Intent 7-12-2 Definitions 7-12-3 Classification 7-12-4 License Required 7-12-5 Issuance of License 7-12-6 License Fees 7-12-7 Inspection 7-12-8 Expiration of License 7-12-9 Suspension of License 7-12-10 Revocation of License 7-12-11 Hearing and Appeal 7-12-12 Transfer of License 7-12-13 Additional Regulations against Children in an Adult Use Businesses 7-12-14 Prohibition 7-12-15 Exemptions 7-12-16 Enforcement Section 2. This Ordinance shall become effective immediately upon its passage and publication. PASSED by the Otsego City Council this 9th day of July 2007. CITY OF OTSEGO ATTEST: �� Ju ud on, oning Administrator/City Clerk Pursuant to Minnesota Statutes 412.191, Subd. 4 and 331A.01, subd.10, this Ordinance is published in summary form. Complete copies of the ordinance are available for inspection by contacting the Zoning Administrator/City Clerk, Otsego City Hall, 8899 Nashua Avenue, Otsego, Minnesota 55330 during regular office hours. publ-ighed: Star News 07-18-07