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CR 95-093 Zoning Amendment - Adult Oriented Users , y 0 \ {J /:' m 1-0 . June 1, 1995 o P K \ '<;\ Council Report 95-93 ZONING AMENDMENT -- ADULT-ORIENTED USES Pro Dosed Action. Staff recommends the following motion: Move to approve Resolution 95-41 approvmg Ordinance 95-762 that would amend Sections 515, 520, 535, and 540 of the Zoning Ordinance and Section 1165 of the City Code regarding adult-oriented businesses for second reading and order the summary published. Overview. In 1986, the United States Supreme Court held that zoning regulations on sexually oriented businesses not aimed at the content of the speech Of expression but rather at the adverse secondary effect such businesses have on the surrounding community are valid under the First Amendment. The proposed amendments to the zoning and licensing ordinances are aimed to minimize these adverse secondary effects. There is currently a moratorium on the establishment of any new adult-oriented businesses within the City. The purpose of this moratorium is to review Hopkins' ordinances dealing with adult-oriented businesses to determine if any changes are necessary and appropriate. The . City's attorney along with a planning consultant have now completed their review of the existing Zoning Ordinance and licensing procedures with respect to adult-oriented businesses and are recommending certain amendments to these ordinances. Primarv Issues to Consider. 0 What is the background for regulating adult-oriented businesses? 0 What studies have documented the secondary effects of adult-oriented businesses? 0 What are the major amendments to the ordinance? 0 Where will adult-oriented businesses be allowed in the City? 0 What occurred at the Zoning and Planning meeting? 0 Has the ordinance changed from the first reading? SUDDortin2 Documents. 0 Analysis ofIssues 0 Map of Opportunity Area for Adult Oriented Uses 0 Resolution 95-41 0 Ordinance 95-762 f'{\ - Ch~n..[)L ""\\ . Nanc . Anderson, AIep Planner -.. -- _n_ eR95-93 Page 2 . Primary Issues to Consider. 0 What is the background for regulating adult-oriented businesses? There have been several court cases in the past few years regarding adult-oriented businesses. On the basis of the court cases, any zoning regulation must be analyzed with the following considerations. 1. An adult use cannot be regulated on the basis of the material that they sell or the entertainment provided but, only on the effect that such businesses have on the surrounding area. 2. A municipality must conclude that such adult businesses create adverse secondary effects such as neighborhood blight, diminished property values, and increased crime. 3. Municipalities need not conduct their own adverse secondary effect studies. They can rely on studies performed by other cities, provided that the studies are reasonably related to the problem that the City is trying to address. 4. Either dispersal or concentration regulations may be utilized but, in either case, the City must allow a reasonable opportunity area in the City for adult uses to e locate. 0 What studies have documented the secondary effects of adult-oriented businesses? Several cities across the country have studied adult-oriented businesses and have concluded that such businesses have several adverse secondary effects on a surrounding community. Some of these studies are outlined herein. The Planning department of the City of Phoenix, Arizona, published a study report in May 1979 entitled "Relation of Criminal Activity and Adult Business." The study showed that arrests for sexual crimes and the location of sexually oriented businesses were directly related. The study compared three areas with sexually oriented businesses with three control areas which had similar demographic and land use characteristics, but no sexually oriented establishments. The study found that: 1. Property crimes were 43 percent higher in those areas which contained a sexually oriented business. 2. The sex crime rate was 500 percent higher in those areas with sexually oriented businesses. . 3. The study area with the greatest concentration of sexually oriented businesses had a sex crime rate over 11 times as large as a similar area having no sexually oriented businesses. CR95-93 Page 3 . The Division of Planning in the City ofIndianapolis, Indiana, undertook a dual planning study in 1983. Six areas containing adult businesses were compared with six comparable control areas relative to the factors of crime incidence. In the second part of the study, the city collaborated with Indiana University in a national survey of real estate appraisers to develop a "best professional opinion" as to the effect of adult entertainment businesses on surrounding real estate values. The findings were as follows: 0 The average major crime rate (i.e., crimes per 10,000 population) in the Indianapolis Police District (IPD) District was 748.65, the Control Area: 886.34, and the Study Areas: 1090.51. Major crimes occurred in areas of the study that contained at least one adult entertainment establishment at a rate that was 23 percent higher than the six similar areas studied not having such businesses and 46 percent higher than the police district at large. 0 Although it was impossible to obtain a discrete rate for sex-related crimes at the police district level, it was possible to compare the rate between the control areas and the study areas. The average sex-related crime rate in the control areas over the five-year period was 26.2, while that rate for the study areas was 46.4. 0 If the ratio of sex-related crimes was the same as that established for major . crimes between the control areas and the study area, however, we would expect a sex-related crime rate of 32.3. The actual rate of 46.4 is 77 percent higher than that of the control areas, rather than the 23, percent that would be expected, and indicates the presence of abnormal influences in the study areas. 0 Close examination of crime statistics within the Study Areas indicates a direct correlation between crime and the residential character of the neighborhood. Crime frequencies were 56 percent higher in residential areas of the study than in its commercial areas. 0 At the same time, sex-related crimes occurred four times more frequently within residential neighborhoods having at least one adult entertainment business than III neighborhoods having a substantially district-related commercial make-up having adult entertainment. 0 Although the housing base within the study areas was of a distinctly higher value than that of the control areas, its value appreciated at only one-half the rate of the control areas and one-third the rate of Center Township as a whole during the period 1979-1982. 0 Pressures within the study areas caused the real estate market within their . boundaries to perform in a manner contrary to that within the control areas, Center Township and the county. In a time when the market saw a decease of 50 percent on listings, listings within the study areas actually increased slightly. CR95-93 Page 4 . 0 As a result, twice as many houses were placed on the market at substantially lower prices than would be expected had the study area's market performance been typical for the period of time in question. 0 The great majority of appraisers (75 percent) who responded to a national survey of certified real estate appraisers felt that an adult bookstore located with one block would have negative effect on the value of both residential (80 percent) and commercial (72 percent) properties. Fifty percent of these respondents foresaw an immediate depreciation in excess of 10 percent. 0 At a distance of three blocks, the great majority of respondents (71 percent) felt that the impact of an adult bookstore fell off sharply so that the impact was negligible on both residential (64 percent) and commercial (77 percent). At the same time, it appears that the residual effect of such a use was greater for residential than for commercial properties. 0 In answer to a survey question regarding the impact of an adult bookstore on property values generally, 50 percent felt that there would be a substantial-to-moderate negative impact. Thirty percent saw little or no impact, and 20 percent saw the effect as being dependent on factors such as the predominant values (property and social) existing in the neighborhood, the development standards imposed on the use, and the ability of an existing . commercial node to buffer the impact from other uses. An April 1978 study by the 51. Paul Division of Planning and the Minnesota Crime Control Planning Board entitled "Neighborhood Deterioration and the Location of Adult Entertainment Establishments" looked at the relationship between alcohol-serving adult entertainment and neighborhood blight. Adult uses without alcohol were not part of this study. The summary, in part, is as follows. 0 There is a statistically significant relationship between the number of adult entertainment establishments (alcohol-serving and sexually oriented combined) located in an area and the deterioration of that area as reflected in housing values and crime rates. 0 Sexually oriented establishments tend to locate in areas that already reflect the effects of other adult entertainment establishments, making it difficult without further analysis to ascertain the unique contribution which sexually oriented establishments have on neighborhood deterioration. 0 While adult entertainment establishments tend to locate in areas of relative deterioration, there is clear indication that these establishments contribute heavily to the further deterioration of these areas. Most significantly, the effect . of adult entertainment establishments on neighborhood deterioration was found to be a threshold phenomenon; neighborhood deterioration is significantly greater in those areas with more than two adult entertainment establishments of any type (alcohol-serving or sexually oriented). CR95-93 Page 5 . 0 There IS an externality or social cost, as reflected In neighborhood deterioration, imposed on a neighborhood by the location of an adult entertainment establishment in that area. These costs are ultimately reflected in higher taxes for all St. Paul citizens in order to support the delivery of more police services, and in a relatively depressed and eroding tax base in the affected areas, leading to even higher citywide tax rates. 0 Those areas with more than two adult entertainment establishments have sharply higher crime rates and sharply lower housing values than those with fewer than two such establishments. In 1980, on direction from the Minneapolis City Council, the Minneapolis Crime Prevention Center examined the effect of sex-oriented and alcohol-oriented adult entertainment upon property values and crime rates. This study used both simple regression and multiple regression statistical analysis to evaluate whether there was a causal relationship between these businesses and neighborhood blight. The study concluded that there was a close association between sexually oriented businesses and high crime rates and low housing values in a neighborhood. When the data was reexamined using control variables such as the mean income in the neighborhood to determine whether the association proved causation, it was unclear whether sexually oriented businesses . caused a decline in property values. The Minneapolis study concluded that sexually oriented businesses concentrate in areas that are relatively deteriorated and, at most, they may weakly contribute to the continued depression of property values. However, the Minneapolis study found a much stronger relationship between sexually oriented businesses and crime rate. A crime index was constructed including robbery, burglary, rape, and assault. The rate of crime in areas near sexually oriented businesses was then compared to crime rated in other areas. The study drew the following conclusions. 1. The effects of sexually oriented businesses on the crime rate index are positive and significant regardless of which control variable is used. 2. Sexually oriented businesses continue to be associated with higher crime rate, even when the control variables' impacts are considered simultaneously. According to the statistical analysis conducted in the Minneapolis study, the addition of one sexually oriented business to a census tract area will cause an increase in the overall crime rate index in that area by 9.15 crimes per thousand people per year even if all other social factors remain unchanged. A study released by the Los Angeles Police Department in 1984 supports a relationship . between sexually oriented businesses and rising crime rates. This study is less definitive, since it was not designed to use similar areas as a control. The study indicated that there were 11 sexually oriented adult establishments in the Hollywood, California, area in 1969. By 1975, the number had grown to 88. During the same time period, reported incidents of Part 1 CR9S-93 Page 6 . Crime (i.e., homicide, rape, aggravated assault, robbery, burglar, larceny, and vehicle theft) increased 7.6 percent in the Hollywood area, while the rest of Los Angeles had a 4.2 percent Increase. Part II Arrest (i.e. forgery, prostitution, narcotics, liquor law violation, and gambling) increased 3.4 percent in the rest of Los Angeles, but 45.4 percent in the Hollywood area. Pertinent reVIews of studies and the literature In the field include that by the Rochester/Olmstead Consolidated Planning Department for the City of Rochester in 1988. The Rochester report, as quoted by the Eighth Circuit, stated the following. a) A considerable number of communities throughout the nation have studied the impacts which adult entertainments have on the areas surrounding them. b) These studies have concluded that adult entertainment uses have an adverse impact on the surrounding neighborhoods. c) Residential neighborhoods in proximity to adult uses suffer adverse effects including increased crime rates, lowered property values, and increased transiency. d) Values of both commercial and residential properties are diminished when . located in proximity to adult entertainment businesses. e) The adverse impact on commercial areas increased by the presence of more than one adult entertainment use in close proximity to another adult entertainment use. t) The impact that an adult entertainment use has on the surrounding area appears to lessen as the distance for the adult entertainment use increases. g) Reasonable "time, place, and manner" restrictions that address the Itsecondaryll impacts of adult entertainment uses are constitutionally permissible. The conclusions are as follows. 0 The concerns which have prompted public hearing in this city (Rochester) are similar to concerns which motivated the communities of Indianapolis, Indiana; St. Paul, Minnesota; Phoenix, Arizona; and Seattle, Washington, to undertake their studies of adult entertainment uses; consequently, the results of those studies are relevant to the existing or foreseeable impacts which such uses can have on the areas surrounding them in this city. . 0 The concentration of adult entertainment uses in commercial areas or the location of adult entertainment uses in close proximity to residential uses, churches, parks, and schools will result in devaluation of property values and CR95-93 Page 7 e decreases in commercial business sales, thereby reducing tax revenues to the city and adversely impacting the economic well-being of the citizens of this city. 0 Location of adult entertainment uses in proximity to residential uses, churches, parks, schools, bars, and other adult entertainment uses very likely would lead to increased levels of criminal activities, including prostitution, rape assaults, and other sex-related crimes in the vicinity of such adult entertainment uses. Copies of the complete studies are available for the Planning Commission to review. 0 What are the major amendments to the ordinances? The following are the major amendments to the ordinances. 0 adding definitions to the City Code Licensing Section and the Zoning Ordinance; 0 deleting the spacing standards in the Zoning Ordinance, but referring to these standards in 1165 of the City Code, the standards are: 300 feet from a residential district; 1,000 feet from a church, school, day care facility, youth facility, or park; and 1,000 feet from another adult-oriented business.; 0 pennitting adult uses in industrial districts; II 0 amortizing any existing adult-oriented business for one year after the effective date of the ordinance; 0 adding a section to allow an existing nonconforming adult-oriented business to request a variance from the amortizing section of the ordinance based on a hardship; 0 adding a numerical definition of30 percent for "substantial portion"; 0 clarifying the spacing in the City Code from a "property line," not just "boundary"; 0 the City Manager "shall" issue licenses rather than "recommend" a license; 0 reduced the license application review period from 45 to 30 days; 0 adding a requirement to mail notice of a license decision to the applicant; 0 allowing appeals to be made to the Council only if the application is deficient; adding a section on adult cabarets. The basic licensing ordinance for adult-oriented business will remain the same. The proposed language clarifies and refines the existing licensing ordinance. Attached is the proposed ordinance. The underlined sections of the ordinance is the new language and the language that has the strike-through line is the existing ordinance. 0 Where will adult-oriented businesses be allowed in the City? . Adult-oriented uses will be allowed in the B-2 and B-3 zoning districts and industrial districts, provided a business meets the licensing requirements. Attached in the staff report are several maps that outline where adult-oriented businesses will be able to locate within the City. eR9S-93 Page 8 . Figure 1 and 2 shows the areas where adult-oriented businesses could locate. 0 What occurred at the Zoning and Planning meeting? Staff reviewed the proposed amendments with the commission. Staff noted that adult-oriented uses would be regulated by the licensing ordinance. There was no one at the public hearing to speak on this issue. Bob Anderson asked questions regarding two sections of the proposed ordinance. Mr. Miller said he would review these sections and change them if it is appropriate. Small changes have been made to the proposed ordinance regarding Mr. Anderson's concerns. 0 Bas the ordinance changed from the first reading? The proposed ordinance has remained the same from the first reading. However, the M.B. Hagen Little League Field on 11th Avenue will be included as an eligible site because it is in the process of being sold and redeveloped. This has been done based on the recommendation from Holmes and Graven. With this change the percentage of property which could be used for an adult use increases from 2 percent to 3.3 percent. Findings have been added to the resolution regarding the status of the Little League Field. Alterna tives. -- 1. Approve the amendment regarding adult-oriented uses. 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CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 95-41 RESOLUTION MAKING FINDINGS OF FACT AND APPROVING AMENDMENTS TO SECTIONS 515, 520, 535, AND 540 OF THE ZONING ORDINANCE AND SECTION 1165 OF THE CITY CODE WHEREAS, an application for an amendment to the Zoning Ordinance, ZN95-5, has been made by the City of Hopkins; and WHEREAS, the procedural history of the application is as follows. 1. That an application for Ordinance Amendment ZN95-5 was made by the City of Hopkins on February 24, 1995. 2. That the Hopkins Planning Commission, pursuant to published notice, held a public hearing on the application and reviewed such application on March 28, 1995, and April 25, 1995: all persons present were given an opportunity to be heard. . 3. That the written comments and analysis of the City Staff were considered. NOW THEREFORE, BE IT RESOLVED that the application for Ordinance Amendment ZN95-5 is hereby approved based on the following Findings of Fact. 1. Studies conducted by the Minnesota attorney general, and cities such as St. Paul, Minnesota; Indianapolis, Indiana; Rochester, Minnesota; Phoenix, Arizona; Los Angeles, California; have studied the impacts that adult-oriented businesses have in those communities. 2. That the City Council has reviewed summaries of the aforementioned studies. 3. These studies have concluded that adult-oriented businesses have adverse impacts on the surrounding neighborhoods. 4. That the adverse impacts include increased crime rates, lower property values, increased transiency, neighborhood blight and potential health risks. 5. That adult-oriented businesses have adverse secondary impacts of the types as set forth above. 6. The adverse impacts caused by adult-oriented businesses tends to diminish if adult-oriented businesses are governed by locational requirements, licensing requirements, and health requirements. 7. It is not the intent of the City of Hopkins to prohibit adult-oriented businesses from having e a reasonable opportunity to locate in the city. Page 2 . 8. Minnesota Statues, Section 462.357, allows the City to adopt regulations to promote the public health, safety, morals, and general welfare. 9. The public health, safety, morals, and general welfare will be promoted by the City adopting regulations governing adult-oriented businesses. 10. In determining the location of adult oriented businesses as detailed in Section 1165.09, the M.B. Hagen Little League Field west of lIth Avenue and south of the Soo Line railroad tracks shall not be considered either a park or youth facility for the following reasons: 0 The Hopkins Little League Association is marketing this property for redevelopment in accordance with the zoning ofl-1, Industrial. 0 The Hopkins Little League Association has a purchase agreement to sell the property. 0 The majority of the Hopkins Little League activities have been relocated from this site to Maetzold Field. 0 This property is not part of the Hopkins park system. Adopted this 6th day ofJune, 1995. Charles D. Redepenning, Mayor . ATTEST: James A. Genellie, City Clerk . CITY OF HOPKINS . Hennepin County, Minnesota ORDINANCE NO. 95-762 AN ORDINANCE PERTAINING TO THE REGULATION OF ADULT-ORIENTED BUSINESSES AMENDING SECTION 1165 OF THE HOPKINS CITY CODE AND AMENDING SECTIONS 515, 520, 535 AND 540 OF THE HOPKINS ZONING CODE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HOPKINS: Section 1. Section 1165.03, subd. 2, of the Hopkins City Code is amended to read: Subd. 2. A.dult Use. }\fly ofthe activities and business described below constitute II Adult Oriented Business" ""'ihich arc subject to the regulations of this ordinance. Adult-Oriented Business. An adult-oriented business is a business that is engaged in any of the following activities or which utilizes any of the following business procedures or practices: .w A business that is conducted exclusively for the patronage of adults and as . to which minors are specifically excluded from patronage, either by operation of law or by the owners of such business. except any business licensed under Chapter XII of this Code; @ Any business that has a least 30% or 3.000 square feet, whichever is less, of its floor area (not including storerooms, stock areas. bathrooms, basements. attics or any portion of the business not open to the public) or at least 30% of its merchandise on display to the public, devoted to items, merchandise or other material that is distinguished or characterized by an emphasis on material depicting. exposing, describing, discussing or relating to specified sexual activities or specified anatomical areas; or W Any other use or business defined in subdivision 3 through 11 of this subsection. Sec. 2. Section 1165.03, subd. 3, of the Hopkins City Code is amended to read: Subd. 3 Adult Book and/or Media Store. An establishment ..vhich excludes minors and which has a substantial portion of its stock in trade or stock on display that has at least 30% or 3.000 square feet. whichever is less, of its floor area (not including storerooms, stock areas, bathrooms. basements. attics or any portion of the business not open to the public). or at least 30% of its merchandise on display to the public devoted to hooks, magazines, films, videotape, or . -.--- . other media which are characterized by their emphasis on matter depicting, describing, or relating to "specified sexual activities" or IIspecified anatomical areasH. Sec. 3. Section 1165.03, subd. 5 of the Hopkins City Code is repealed. Sec. 4. Section 1165.03 of the Hopkins City Code is amended by adding a new subdivision to read: Subd. 14. Youth Facility. Any facility. or outdoor area where a substantial portion of its use or programs are devoted to or offered for activities or recreation for minors. regardless of whether such facility is public or private. Such facilities include. but are not limited to. playgrounds, swimming pools. libraries or daycare facilities. Sec. 5. Section 1165.09 of the Hopkins City code is amended to read: 1165. 09. Location. During the term of this ordinance, no Adult Oriented Businesses shall be located less than 300 (three hundred) feet from any residential zoning district boundary or from the property line ofa site used for residential purposes, a-ad or less than 1,000 (one thousand) feet from the property line of any church site, frem any school site, fFem any day care facility,~ youth facility. or Hem-any park,- which is adjacent to property zoned residential. In addition, no Adult Oriented Business may be located within ] ,000 (one thousand) feet of another Adult Oriented Business. For purposes of this ordinance, this distance shall be a horizontal . measurement from the nearest existing residential district boundary or the property line of any site used for residential purposes, church site, school site, day care site, youth facility, park site, or another Adult Oriented Business site to the nearest boundary property line of the proposed Adult Oriented Business site. Section 6. Section 1165.13, subd. 2 of the Hopkins City Code is amended to read: Subd. 2. Entrances. All entrances provided for the generaL public shall be visibLe from a public street with the to the business, with the exception of emergency fire exits which are not usable by patrons. to enter the business, shall be visible from a public right of way. Sec. 7. Section 1165.15, subd. 1 of the Hopkins City Code is amended to read: 1165.15 Licenses. Subd. 1 License Required. All establishments, including any business operating at the time this ordinance becomes effective, operating or intending to operate an Adult Oriented Business shall apply for and obtain a license with the City of Hopkins. A person is in violation of the City Code if he or she operates an Adult Oriented Business without a valid license, issued by the City. Sec. 8. Section 1165.15, subd. 3 of the Hopkins City Code is amended to read: . Subd. 3. Issuance of Renewal of License. The City Manager shall recommend approval of the issuance or renewal of issue or renew a license b-y the City to an applicant within 43- 30 . (thirty) days after receipt of an application unless the Manager !ffids denies the application. having found one or more of the following to be true: a) An applicant is under 18 years of age. b) An applicant is overdue in his payment to the City, County, or State of taxes, fees, fines, or penalties assessed against him or her or imposed upon him or her in relation to an Adult Oriented Business, or if the State of Minnesota prohibits the issuance of such a license because of taxes, fines, or penalties assessed against him or her. c) An applicant has failed to provide information reasonably necessary of issuance of the license or has falsely answered a question or request for information of the application form. d) An applicant has been convicted of a violation of a provision of this chapter, other than the offense of operating an Adult Oriented Business without a license, within two years immediately preceding the application. The fact that a conviction is being appealed shall have no effect. e) The premises to be used for the Adult Oriented Business have not been approved by the health official, fire marshal, and the building official as being in compliance with applicable laws and ordinances; such inspections shall be completed within thirty (30) days from the date the application was submitted, provided that the application contains all of the information required by this ordinance, If the application is deficient, the inspection . shall be completed within thirty (30) days from the date the deficiency has been corrected. 1) The license fee required by this chapter has not been paid. g) The applicant has been convicted of a crime involving any of the following offenses: 1) Any sex crimes as defined by Minnesota statutes 609.29 through 609.352 inclusive or as defined by any ordinance or statute in conformity therewith; 2) Any obscenity crime is defined by Minnesota statutes 617.23 through 617.299 inclusive, or as defined by any ordinance or statue in conformity therewith; for which: 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; less than five years have elapsed since the date of the last conviction or the date of release from confinement for the conviction, whichever is the later date, if the conviction is a felony offense; or . . 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 conviction~ are of two or more misdemeanor offenses or a combination or misdemeanor offenses occurring within any 24 month period. 3) The fact that a conviction is being appealed shall have no effect on the disqualification of the applicant or applicant's spouse. Sec. 9. Section 1165.15 of the Hopkins City Code is amended by adding the following subdivision: Subd. 5. Notice of Decision on Application. The City Manager shall send notice of a decision on the application within the 30 (thirty) day review period to the applicant by mail postage prepaid at the address on the application. The notice shall state whether the City Manager finds the application acceptable and a license is to be issued or renewed, or whether the application is denied and the reasons for the denial. Sec. 10. Section 1165.15, subd. 5, of the Hopkins City Code is renumbered as subdivision 6. Sec. 11. Section 1165. 15, subd. 6, of the Hopkins City Code is renumbered as . subdivision 7 and is amended to read: Subd. B 7.. Appeal to City CounciL Action. Thc City Council shall act to approve or disapprove the license application within 120 days from the dute the application was submitted, provided that the application contains all of the information required bay the ordinance. If an application is denied by the City Manager, the applicant may appeal to the City Council by filing a written notice of appeal within ten (10) days after the notice of decision. Any such appeal must be acted on by the Council within 30 (thirty) days after the notice of appeal is received by the City. If the Council denies the appeal, the application is denied. Re-application may be pursued according to the provisions of this chapter. If the Council determines to grant the appeal, the Council shall instruct the City Manager to issue the license. Section 12. Section 1165.15 of the Hopkins City Code is amended by adding the following subdivision: Subd. 8. Correction of deficiency. If the application is denied by the City Manager. the applicant may correct any deficiency and the Manager shall act on the corrected application within 30 (thirty) days from the date the deficiency has been corrected. If the determination of deficiency has been appealed to the City Council, the Council shall act on the corrected application within 30 (thirty) days from the date that the . City receives the appeal. . Sec. 13. Section 1165. 15, subd. 7, of the Hopkins City code is renumbered as subdivision 9 and amended to read: Subd. + 9. Appeals. 'Nithin 90 days after the decision by the Council, the applicant may appeal to the District Court by servicing a Hotice upon the Mayor of Clerk of the Municipality. If the City Council denies the appeal. the applicant may commence an action in state of federal court within 15 (fifteen) days after notification by the City of the denial for the purpose of determining whether the City acted properly, The applicant may not commence doing business unless the action is concluded in his favor. Sec. 14. Section 1165.15 is amended to add the following subdivision: Subd. 10, Notification. Any notification required to be sent by the City is deemed completed when mailed by first class mail to the applicant or licensee at the address listed in the application. Sec. 15. Section 1165.21, subd, 1, of the Hopkins City Code is amended to read: 1165.21 Expiration and RenewaL Subdivision 1. Expiration. Each license shall expire at the end of the calendar year and may be renewed only by making application as provided in Section 1165. 15., Subd. 1. Application for renewal should be made at least 60 days before the expiration date, and when made less than 60 days before the expiration date, . the expiration of the liceHse will not be affected the license may expire. depending on the timing of the application and possible appeals as described above in Section 1165. 15, Subd. 1. Sec. 16. Section 1165.23 of the Hopkins City Code is amended to read: 1165,23. Suspension. Subdivision 1. Causes of Suspension. The City Council may suspend a license for a period not to exceed 30 (thirty) days ifit determines that a licensee or an employee of a license has: a) Violated or is not in compliance with any provision of the chapter. b) Engaged in the use or sale of alcoholic beverages or controlled substances while on the Adult Oriented Business premises other than at an Adult Hotel or Motel. c) Refused to allow an inspection of the Adult Oriented Business premises as authorized by this chapter. d) Knowingly permitted gambling by any person on the Adult Oriented Business premises. e) Demonstrated inability to operate or manage an Adult Oriented Business in a peaceful and law-abiding manner, thus necessitating action by law enforcement officers. . . Subd. 2. Notice. A suspension by the City Council shall be proceeded by written notice to the licensee and a f*lblie hearing. The notice shall give at least 10 (ten) days notice of the time and place of the hearing and shall state the nature of the changes against the licensee. The notice may be served upon the licensee personally, or by leaving the same at the licensed business premises with the person in charge thereof Subd. 3. Appeal. If the City Council suspends a license. the licensee may commence an action in state or federal court within 15 (fifteen) days after notification by the City of the suspension for purposes of determining whether the City Council acted properly. The licensee may continue doing business until the conclusion of the action. Sec 17. Section 1165.25, subd. 1, of the Hopkins City Code is repealed. Sec. 18. Section 1165.25, subd. 2, of the Hopkins City Code is amended to read: Subd. 2. Causes of Revocation. The City Council shaH- may revoke a license if it determines that: a) A licensee gave false or misleading information in the material submitted to the city during the application process; b) A licensee or an employee has knowingly allowed possession, use, or sale of alcoholic beverages or ef controlled substances on the premises~ . c) A licensee or an employee has knowingly allowed prostitution on the premIses; d) A licensee or an employee knowingly operated the Adult Oriented Business during a period oftime when the licensee's license was suspended; e) A licensee has been convicted of an offense listed in Section 1165.15, Subd. 3g for which the time period required in Section 1165.15, Subd. 3g has not elapsed; t) On two or more occasions within a 12 (twelve) month period, a person or persons corrunitted an offense occurring in or on the licensed premises of a crime listed in Section 1165.15, Subd. 3g for which a conviction has been obtained, and the person or persons were employees of the Adult Oriented Business at the time the offenses were corrunitted; g) A licensee or an employee has knowingly allowed any act of sexual intercourse, sodomy, oral copulation or masturbation to occur in or on the licensed premises. h} If a cause of suspension in Section 1165.23 occurs within 36 (thirty-six) months after a suspension of a license. Sec. 19. Section 1165.25, subd. 6, of the Hopkins City Code is amended to read: Subd. 6. Notice. A revocation by the eCity Council shall be preceded by written . notice to the licensee and a ~ hearing. The notice shall give at least 10 (ten) days notice of the time and place of the hearing and shall state the nature of the charges against . the licensee. The notice may be served upon the licensee personally, or by leaving the same at the licensed premises with the person in charge thereof Sec. 20. Section 1165.25 of the Hopkins City Code is amended by adding the following subdivision: Subd. 7. Appeal. If the City Council revokes a license. the licensee may commence an action in state of federal court within 15 (fifteen) days after notification by the City of the revocation for purposes of determining whether the City Council acted properly. The licensee may continue doing business until the conclusion of the action. Sec. 21. Section 1165 of the Hopkins City Code is amended to add the following subsection: 1165.14. Additional Conditions for Adult Cabarets. Subdivision 1. The following additional conditions apply to adult cabarets. Subd. 2. No owner. operator or manager of an adult cabaret shall permit or allow any dancer or other live entertainer to display specified anatomical areas. Subd. 3. No dancer. live entertainer. performer. patron or any other person shall display specified anatomical areas in an adult cabaret. . Subd. 4. The owner. operator or manager of an adult cabaret shaH provide the following information to the city concerning any persons who dance or perform live entertainment at the adult cabaret: The person's name. home address. home telephone number. date of birth and any aliases. Subd. 5. No dancer. live entertainer or performer shall be under 18 years old. Subd. 6. All dancing or live entertainment shall occur on a platform intended for that purpose and which is raised at least two feet from the level of the floor. Subd. 7. No dancer, live entertainer or performer shan perform any dance or live entertainment closer than 10 (ten) feet to any patron. Subd. 8. No dancer. live entertainer or performer shall fondle or caress any patron and no patron shall fondle or caress any dancer or performer. Subd. 9. No patron shall payor give any gratuity to any dancer. live entertainer or performer. Subd. 10. No dancer. live entertainer or performer shall solicit any payor gratuity from any patron. . . Sec. 22. Section 520 of the Hopkins Zoning code is amended to add the following subsection: S20.04 Non-Conforming Adult-Oriented Businesses. Subd. 1. Notwithstanding any other provision in this code or the City Code to the contrary. and adult-oriented business that was lawfully in existence as of June 13. I99S may be continued as a lawful non-conforming use until June 13, 1996, provided however that no such non-conforming adult-oriented business may be enlarged or increased. nor may it be extended to occupy a greater area of land than that which was occupied as of June 13. 1995. No such nonconforming adult-oriented business may be moved to any other part of the parcel of land upon which it was conducted as of June 13. 1995. Subd. 2. Variance. The owner or operator of any nonconforming adult-oriented business may request a variance from subdivision 1 of this subsection provided. however. that any such request must be made by written application submitted no later than March 13, 1996. No such variance may be granted unless the applicant demonstrates that the time period set forth in subdivision 1 would cause an undue hardship because of circumstances unique to the individual property under consideration and that the granting of a variance is necessary to alleviate the hardship and in keeping with the intent of this code. The applicant shall have the burden of proof to demonstrate that an undue hardship exists. Any request for a variance must be submitted to the zoning administrator and shall be referred by the zoning administrator directly to the City Council. In making its decision . on whether to grant a variance, the City Council may consider any relevant factor. including. but not limited to. a. The length of time that the adult-oriented business has been operating. b. The ease by which the property could be converted to a conforming use. c. The value and the condition of the improvements on the property. d. The amount of the applicant's investment in the business. e. The amount of the investment already realized. f The cost of relocating the adult -oriented business. Sec. 23. Section SIS. 07 of the Hopkins Zoning Code is amended by repealing subdivision 4. 5 and 6 and by addition the following subdivision: Adult-Oriented Business. Any business as defined in Section 1165.03. subd. 2 of the City Code. . -- Sec. 24. Section 535.01. subd. 3 of the Hopkins Zoning code is amended by deleting the terms "adult establishments." "adult motion picture theater" and "adult novelty business and bookstore" and by adding the following: Permitted Uses B-1 B-2 B-3 Adult-oriented business. as X X governed and regulated by Chapter 1165 of the City Code Other uses listed in subdivision 3 are to be renumbered accordingly. Sec. 25. Section 540.01 of the Hopkins Zoning Code is amended to add the following to the table of permitted uses: Permitted Uses 1-1 1-2 Adult oriented business, as governed and regu- lated by Chapter 1165 of the City Code. X X First Reading: May 2, 1995 . Second Reading: June 6, 1995 Date of Publication: June 14, 1995 Date Ordinance Takes Effect: July 4, 1995 Charles D. Redepenning, Mayor ATTEST: James A. Genellie, City Clerk APPROVED AS TO FORM AND LEGALITY: City Attorney Signature Date . . CITY OF HOPKINS COUNTY OF HENNEPIN SUMMARY OF ORDINANCE NO. 95-762 AN ORDINANCE AMENDING SECTIONS 515, 520, 535, 540 OF THE HOPKINS ZONING CODE AND 1165 OF THE HOPKINS CITY CODE REGARDING ADULT ORIENTED BUSINESSES This ordinance amends Section 515, 520, 535,540 of the Hopkins Zoning Code and 1165 of the Hopkins City Code. The fonowing changes were made: 1. The term adult use is replaced with the term Adult-Oriented Business. 2. The definition of an Adult-Oriented Business is defined to include, among other factors, a business that excludes minors or has at least 30% of floor area or inventory devoted to adult uses. 3. The definition of the term "Adult Book and/or Media Store" is revised by replacing "a substantial portion of its stock in trade" with language referring to at least 30% of floor . area or inventory devoted to adult uses. 4. The definition of the term "Adult Establishment" is deleted from the ordinance. 5. A section is added which defines a "Youth Facility". Youth facilities include playgrounds, swimming pools, libraries, and daycare facilities. 6. Section 1165.09 which establishes the distances which an adult oriented business must be from sensitive uses has been amended to include youth facilities. 7. The method is which licenses are issued for adult-oriented businesses is changed. The City Manager is now required to issue the license to any business that meets the requirements of the ordinance. Licenses which are denied can be appealed to the City Council. Time limits are established for making these decisions. 8. Language has been added regarding appeals to state or federal courts from actions taken by the City CounciL 9. A new section is added regarding Adult Cabarets which establishes conditions for the operation of such establishments. 10. Language is added to the zoning code (Section 520.04) regarding the manner which any non-conforming adult -oriented business would come into conformance with this ordinance. Such businesses would be given one year to come into compliance although they could request a variance based on a hardship. 11. Sections 515.07 and 535.01 of the zoning code are revised by replacing the terms "adult establishments" , " adult motion picture theater", and "adult novelty business and bookstorett with the term adult-oriented business as defined in Section 1165.03, Subd. 2 of the city code. . . 12. Section 540.01 of the zoning code is amended to make adult-oriented businesses permitted uses in industrially zoned areas of Hopkins. A printed copy of the entire ordinance is available from the City Clerk and at the Hopkins library. First Reading of Ordinance #95-762: May 2, 1995 Second Reading of Ordinance #95-762 and approval of the summary of Ordinance #95-762: May 16, 1995 Date of Publication of the Summary: May 24, 1995 Effective Date of Ordinance: June 13, 1995 . .