The regulations of this Section have neither the purpose nor effect of imposing a limitation or restriction on the content of any communicative materials, including sexually oriented materials. It is not the intent nor effect of this Code to restrict or deny access by adults to sexually oriented materials protected by the First Amendment, or to deny access by distributors and exhibitors of sexually oriented entertainment to their intended market. It is the purpose of this Code to regulate sexually oriented businesses and adult uses to promote the health, safety, morals, and general welfare of the citizens of the City and to establish reasonable and uniform regulations to:

   A.   Prevent additional criminal activity within the City;

   B.   Prevent deterioration of neighborhoods and its consequent adverse effect on real estate values of properties within the neighborhood;

   C.   Locate sexually oriented businesses away from schools, churches, residential properties daycare centers, libraries, parks, commercial recreational facilities for minors, and businesses selling alcoholic beverages;

   D.   Prevent concentration of sexually oriented businesses within certain areas of the City;

   E.   Prevent the spread of sexually transmitted diseases. (Ord. 752, 12-5-1994; amd. 1998 Code)

Sexually oriented businesses or "adult uses" as defined in Section 3-4-2 of this Code shall be subject to the following general provisions:

   A.   Activities defined as obscene by Minnesota Statutes section 617.241 are not permitted and are prohibited.

   B.   Sexually oriented businesses and adult uses, either principal or accessory, shall be prohibited from locating in any building which is also utilized for residential purposes.

   C.   Sexually oriented businesses and adult uses, either principal or accessory, shall be prohibited from locating in any place which is also used to dispense, consume or sell alcoholic beverages.

   D.   A sexually oriented business or adult use which does not qualify as an accessory use shall be classified as an adult use- principal.

   E.   Sexually oriented businesses or adult use classified as an adult use-principal may not locate or operate within the City without first obtaining a sexually oriented businesses "adult use-principal" license as required by Section 3-4-3 of this Code. (Ord. 752, 12-5-1994; amd. 1998 Code)

   A.   Sexually oriented businesses classified as adult use-principal shall be permitted uses in Highway Business Districts and I-1 Industrial Districts (with a special use permit) only and located at least five hundred (500) radial feet, as measured in a straight line from the closest point of the property line of the building upon which the adult use-principal is located to the property line of:

      1.   Property zoned: R-1, Single-Family Residential (Low Density), R-2, Multi-Family (Medium Density), R-3, Multi-Family (High Density), AO, Agriculture-Open Space or any residence in a B-2, Highway Business District;

      2.   A licensed daycare center;

      3.   Public or private educational facilities including preschools, elementary, junior high or senior high schools;

      4.   A public library;

      5.   A public park;

      6.   Another adult use, principal;

      7.   Churches;

      8.   Commercial recreational facilities if the majority of its customers consists of minors;

      9.   Specialty schools if the majority of its students consists of minors;

      10.   Businesses selling alcoholic beverages.

   B.   Adult use-principal activities, as defined by this Code shall be classified as one use. Two (2) or more sexually oriented businesses or adult uses-principal shall not be located in the same building or upon the same property.

   C.   Sexually oriented businesses shall adhere to the following signing regulations:

      1.   Shall comply with the requirements of size and number for the district in which they are located.

   D.   Adult use-principal activities shall be prohibited at any public show, movie, caravan, circus, carnival, theatrical, or other performance or exhibition presented to the general public where minors are permitted. (Ord. 752, 12-5-1994; amd. 1998 Code)

   A.   Adult use-accessory shall:

      1.   Comprise no more than ten percent (10%) of the floor area of the establishment in which it is located.

      2.   Comprise no more than twenty percent (20%) of the gross receipts of the entire business operation.

      3.   Not involve or include any activity except the sale or rental of merchandise.

   B.   Adult use-accessory shall be restricted from and prohibit access to minors by the physical separation of such items from areas of general public access. Business owners shall make every reasonable precaution to limit access to minors and shall comply with Minnesota Statutes section 617.293 and any amendments thereto.

   C.   Adult use-accessory shall be prohibited from both internal and external advertising and signing of adult materials and products. (Ord. 752, 12-5-1994; amd. 1998 Code)

Sexually oriented businesses and adult uses which are classified as legal nonconforming uses may continue in accordance with the provision of this Code except that any such nonconforming use shall be terminated and become illegal twelve (12) months after the effective date hereof. To the extent possible, the City shall attempt to identify all such uses which become classified as nonconforming under the provisions of this Section and shall notify the property owners and operators of such uses in writing of the change in status and the terms and conditions which apply. The owner of any property or business on which an adult use is located may apply to the City Council for an extension of the termination date. Any such application shall be in writing and be received by the City at least thirty (30) days prior to the termination date. Failure to submit a timely extension application shall constitute a waiver of the right to request an extension. The extension may be granted if the applicant demonstrates that the amortization period is an unreasonable burden upon the business and does not allow adequate time to recover a reasonable return upon the business investment. The applicant shall have the burden of proof to demonstrate hardship with the established termination date and also the time required for an extension. In making its decision, the City Council may consider any factor relevant to the issue, including, but not limited to:

   A.   The degree or magnitude of threat to the public health, safety, and general welfare posed by the secondary impacts of the operation.

   B.   The length of time that the adult use has been operating.

   C.   The ease by which the property could be converted to a conforming use.

   D.   The nature and character of the surrounding neighborhood.

   E.   The value and condition of the improvements on the property.

   F.   The amount of the applicant's investment in the business.

   G.   The amount of investment already realized.

   H.   The cost of relocating the adult use. (Ord. 752, 12-5-1994; amd. 1998 Code)