(a) 
A person commits an offense if the person operates or causes to be operated a sexually oriented business within one thousand feet (1,000') of:
(1) 
A church;
(2) 
A school;
(3) 
A child care facility;
(4) 
A boundary of a residential district;
(5) 
A public park;
(6) 
The property line of a lot devoted to residential use; or
(7) 
Any building or structure in which alcoholic beverages are offered for sale.
(b) 
A person commits an offense if he or she causes or permits the operation, establishment, substantial enlargement, or transfer of ownership or control of a sexually oriented business located within one thousand feet (1,000') of another sexually oriented business.
(c) 
A person commits an offense if he or she causes or permits the operation, establishment, or maintenance of more than one (1) sexually oriented businesses in the same building, structure, or portion thereof, or the increase of floor area of any sexually oriented business.
(d) 
For the purpose of subsection (a) of this section, measurement shall be made in a straight line, without regard to intervening structures or objects, from the nearest portion of the building or structure used as a part of the premises where a sexually oriented business is conducted to the nearest property line of the premises of a church, school, child care facility or building or structure in which alcoholic beverages are offered for sale, or to the nearest boundary of an affected public park, residential district, or residential lot.
(e) 
For the purposes of subsection (b) of this section, the distance between two (2) sexually oriented businesses shall be measured in a straight line, without regard to intervening structures or objects, from the closest exterior wall of the structure in which each business is located.
(f) 
Any sexually oriented business lawfully operating on the effective date of this article that is in violation of subsection (a), (b), or (c) of this section shall be deemed a nonconforming use. The nonconforming use will be permitted to continue for a period not to exceed twelve (12) months, unless sooner terminated for any reason, or voluntarily discontinued for a period of thirty (30) days or more. Such nonconforming use shall not be increased, enlarged, extended, or altered except that the use may be changed to a conforming use. If two (2) or more sexually oriented businesses are within one thousand feet (1,000') of one another and otherwise in a permissible location, the sexually oriented business which was at first established and continually operating at a particular location is the conforming use and the later established business is nonconforming.
(g) 
A sexually oriented business lawfully operated as a conforming use is not rendered a nonconforming use by the location, subsequent to the grant or renewal of the sexually oriented business license, of a church, school, child care facility, public park, residential district or residential lot, or any building or structure in which alcoholic beverages are offered for sale, within one thousand feet (1,000') of the sexually oriented business. This provision applies only to the renewal of a valid license, and does not apply when an application for a license is submitted after a license has expired or has been revoked.
(2001 Code, sec. 114.13)
(a) 
If the mayor denies the issuance of a license to an applicant because the location of the sexually oriented business establishment is in violation of any section of this article, then the applicant may, not later than ten (10) calendar days after receiving notice of the denial, file with the mayor a written request for an exemption from the locational restrictions of this article.
(b) 
If the written request is filed with the mayor within the ten-day limit, the city council shall consider the request. The mayor shall set a date for a public hearing within sixty (60) days from the date the written request is received.
(c) 
A hearing by the city council may proceed if a quorum of the city council is present. The city council shall hear and consider evidence offered by any interested person. The formal rules of evidence do not apply.
(d) 
The city council may, in its discretion, grant an exemption from the locational restrictions of this article if it makes the following findings:
(1) 
That the location of the proposed sexually oriented business will not have a detrimental effect on nearby properties or be contrary to the public safety or welfare;
(2) 
That the granting of the exemption will not violate the spirit and intent of this article;
(3) 
That the location of the proposed sexually oriented business will not downgrade the property values or quality of life in the adjacent areas or encourage the development of urban or rural blight;
(4) 
That the location of an additional sexually oriented business in the area will not be contrary to any program of neighborhood conservation nor will it interfere with any efforts of urban renewal or restoration; and
(5) 
That all other applicable provisions of this article will be observed.
(e) 
The city council shall grant or deny the exemption by a majority vote. Failure to reach a majority vote shall result in denial of the exemption. Disputes of fact shall be decided on the basis of a preponderance of the evidence. The decision of the city council is final.
(f) 
If the city council grants the exemption, the exemption is valid for one (1) year from the date of the city council’s action. Upon the expiration of an exemption, the sexually oriented business is in violation of the locational restrictions of this article until the applicant applies for and receives another exemption.
(g) 
If the city council denies the exemption, the applicant may not reapply for an exemption until at least twelve (12) months have elapsed since the date of the city council’s action.
(h) 
The grant of an exemption does not exempt the applicant from any other provisions of this article, other than the locational restrictions.
(2001 Code, sec. 114.14)