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A. The application shall be approved or denied by the town clerk within sixty (60) days of the date the application is filed with and accepted as complete by the town clerk. The town clerk shall deny a license if:

1. Any individual applicant is under the age of twenty one (21) years;

2. The applicant has made a false statement upon the application or gave false information in connection with an application;

3. Any individual listed in the application pursuant to subsection 9-8-6A of this chapter has had an adult business license revoked or suspended anywhere within the state within one year prior to the application;

4. The applicant has operated an adult business which was determined to be a public nuisance under state law, this code or other municipal ordinance or law within one year prior to the application;

5. A corporate or limited liability entity applicant is not in good standing or authorized to do business in the State of Colorado;

6. The applicant is overdue in payment to the town of taxes, fees, fines, or penalties assessed against or imposed against the applicant in relation to an adult business;

7. An applicant is in violation of or is not in compliance with any of the provisions of this chapter; or

8. An applicant or any other individual listed pursuant to section 9-8-6 of this chapter has been convicted of or pleaded nolo contendere to any crime involving pandering, prostitution, obscenity, or any other crime that is connected with operating another sexually oriented business, in any jurisdiction, within five (5) years from the date of the conviction to the date of the application.

B. An application for a license under this chapter which is not acted upon by the town clerk within sixty (60) days after the application is filed with and accepted as complete by the town clerk shall be deemed to have been approved, and the requested license shall be issued.

C. In the event that the town clerk denies a license, the town clerk shall make written findings of fact stating the reasons for the denial and a copy of such decision shall be sent by certified mail to the applicant at the address shown in the application within three (3) days after denial. An applicant shall have the right to appeal the denial at a hearing before the town council, provided that written request for such a hearing is made to the town manager within ten (10) days following the date of the denial of the license by the town clerk. Notice of the appeal hearing shall be mailed to the applicant at the address shown on the application at least five (5) days prior to the hearing. The appeal hearing shall be heard at the next regular town council meeting occurring at least ten (10) days after the filing of the request for hearing with the town manager. Review by the town council shall be a de novo hearing.

D. At an appeal hearing, the town council shall hear such statements and consider such evidence as the town clerk, police department or other enforcement officers, the applicant, other party in interest, or any other witness shall offer which is relevant to the denial of the license application by the town clerk.

E. At an appeal hearing, the applicant may be represented by an attorney of the applicant's choice, at the applicant's own expense. The appeal hearing may be informal, and the strict rules of evidence shall not apply.

F. If the town council determines that the applicant is ineligible for a license under subsection A of this section, it shall issue an order denying the application within thirty (30) days after the hearing is concluded, based on findings of fact. A copy of the order shall be mailed by certified mail to the applicant at the address on the application within three (3) days of the adoption of such order. If the application is approved by the town council, the requested license shall be issued as provided in this chapter.

G. Any order made pursuant to subsection F of this section shall be a final decision and may be appealed to the district court pursuant to rule 106(a)(4) of the Colorado rules of civil procedure. Failure of an applicant to timely appeal said order constitutes a waiver of any right the applicant may otherwise have to contest the denial of the applicant's license application.

H. No license shall be issued by the town clerk after approval of an application until the building in which the business is to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as are necessary to comply with the provisions of this chapter and all applicable building and fire code regulations, and then only after inspection of the premises has been made by the police and/or building official to determine that the applicant has complied with the plans and specifications submitted upon the application. Such inspection of the premises shall be made within ten (10) days after the town clerk receives written notification from the applicant that the premises are in compliance with the submitted plans and specifications. If the licensed location has been inactive, without good cause, for at least one year, or if the building has not been constructed and placed in operation within two (2) years after approval of the license application, or construction of the building has not commenced within one year after such approval, the town clerk, in the town clerk's discretion, may revoke or elect not to issue or renew the license. (Ord. 30, Series 1996)