HomeMy WebLinkAboutRES 00-007 RESOLUTION NO. 00—tl7
WHEREAS, the City Council of the City of Beaumont adopted Ordinance No. 98-8
on February 3, 1998, regulating Sexually Oriented Businesses (herein "the ordinance");
and,
WHEREAS, an application for a sexually oriented business license was submitted
for "D.P.D. Investments dba Peeper's Adult Book Stop" with listed owners of John
DeYoung and Frankie DeYoung, and a location address of 6035 MLK, Jr. Parkway in the
City of Beaumont, which application was dated April 19, 1999 and bears the signature of
John DeYoung; and,
WHEREAS, Section 7-84, of the ordinance sets forth the requirements regarding
an application for a sexually oriented business license which state that a license shall be
issued unless it is determined by a preponderance of the evidence that the applicant has
failed to provide information reasonably necessary for issuance of the license or has
falsely answered a question or a request for information on the application form or that an
applicant or a person with whom applicant is residing is overdue in payment to the City of
taxes, fees, fines or penalties assessed against or imposed on him/her in relation to any
business and further provides that the license, if granted shall state on its face the name
of the person or persons to whom it was granted; and,
WHEREAS, Section 7-89 of the ordinance provides that "subject to City Council
Approval, the City shall revoke a license if it determines that a licensee gave false or
misleading information in the material submitted during the application process or a
licensee or the employee managing the sexually oriented business is delinquent in
payment to the city, county, or state of any taxes or fees"; and,
WHEREAS, D.P.D. Investments dba Peeper's Adult Book Stop has provided to the
City disclosure documents, pursuant to Civil Action No. 99CV-534, D.P.D. Investments dba
Peeper's Adult Book Stop v The City of Beaumont, et al; United States District Court for
the Eastern District of Texas, establishing that Deborah M. Parish is a partner and owner
in Peeper's Adult Book Stop. Accordingly, her ownership was concealed from the City.
Based upon the failure to provide information reasonably necessary to consideration of an
application for a sexually oriented business license or falsely providing information
required for that license, as demonstrated by the application submitted by D.P.D.
Investments dba Peeper's Adult Book Stop, resulted in granting of a license; and,
WHEREAS, John DeYoung, a owner and license holder of a sexually oriented
business license issued to D.P.D. Investments dba Peeper's Adult Book Stop by the City
of Beaumont pursuant to the ordinance has been charged with the offense of mail fraud
in the United States District Court for the Eastern District of Texas in Criminal No. 1:99-
CR-173(1) United States of America v John DeYoung and said John DeYoung entered a
guilty plea to that offense on December 17, 1999 and during the course and scope of the
plea hearing said John DeYoung did, under oath, admit that from on and about January,
1998 to on or about November, 1999, he devised a scheme and plan to defraud sales
taxing entities of taxes on approximately Three Hundred Thousand ($300,00) Dollars, said
sales tax entities including the State of Texas, the Comptroller's office of the State of
Texas as a taxing entity, the City of Beaumont as a sales-taxing entity and the County of
Jefferson; and,
WHEREAS, the City has moved to revoke the sexually oriented business license
issued to D.P.D. Investments dba Peeper's Adult Book Stop pursuant to provisions of
Section 7-89 of the ordinances which provides that the City shall revoke a license if it
determines that a licensee gave false or misleading information in the material submitted
during the application process or a licensee or the employee managing the sexually
oriented business is delinquent in payment to the city, county or state of any taxes or fees;
and,
WHEREAS, a public hearing was held before the City Council on January 4, 2000
regarding the revocation of the sexually oriented business licensed issued to D.P.D.
Investments dba Peeper's Adult Book Stop, and during the course of said hearing, the City
Council received evidence regarding grounds for revocation of the sexually oriented
business license; and,
WHEREAS, the City Council is of the opinion that cause exists to revoke the
sexually oriented business license issued to D.P.D. Investments dba Peeper's Adult Book
Stop;
NOW, THEREFORE, BE IT RESOLVED
BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT on or about April 19, 1999, an application for a sexually oriented business license
for D.P.D. Investments dba Peeper's Adult Book Store was submitted to the City of
Beaumont and said application listed as owners of the business John DeYoung and
Frankie DeYoung, said application being signed by John DeYoung; and,
THAT a sexually oriented business license was issued on April 22, 1999 under the
business name of D.P.D. Investments dba Peeper's with a location address of 6035 MLK,
Jr. Parkway, Beaumont, Texas with a notation that the license was held by John DeYoung
and Frankie DeYoung; and,
THAT Section 7-84 of the ordinance provides that a license shall be issued unless
it is determined by a preponderance of the evidence that the applicant has failed to provide
information reasonably necessary for the issuance of the license or has falsely answered
a question or request for information on the application form or that an applicant or a
person with whom the applicant is residing is overdue in payment to the City of taxes, fees,
fines or penalties assessed against or imposed upon him/her in relation to any business;
and,
THAT a license, if granted, shall state on its face the name of the person or persons
to whom it was granted; and,
THAT the City shall revoke a license if it determines that a licensee gave false or
misleading information in the material submitted during the application process or the
licensee or the employee managing the sexually oriented business was delinquent to the
city, county or state of any taxes or fees; and,
THAT evidence presented during a hearing before the City Council in regard to the
sexually oriented business license held by D.P.D. Investments dba Peeper's Adult Book
Stop establishes by a preponderance of the evidence that the applicant failed to provide
information reasonably necessary for the issuance of a license or falsely answered
questions on the application form and that an applicant or a person with whom the
applicant is residing is overdue in payment to the city of taxes, fees, fines or penalties
assessed against or imposed upon him/her in relation to any business, to wit: the
application failed to identify Deborah Parish as an owner of D.P.D. Investments dba
Peeper's Adult Book Stop, falsely indicated that the only owners were John DeYoung and
Frankie DeYoung and that John DeYoung, by virtue of his plea in the United States
District Court for the Eastern District of Texas in Criminal Docket No. 1:99CR173-1, United
States of America v John DeYoung admitted that between January, 1998 and November,
1999 he "skimmed" and withheld from sales taxing entities including the State of Texas as
a taxing entity, the City of Beaumont as a taxing entity and the County of Jefferson taxes
on approximately Three Hundred Thousand ($300,000) Dollars related to his businesses
known as Peeper's and The Oasis; and,
THAT, had the application not contained false information and failed to provide
information reasonably necessary for issuance of the license i.e. information related to
ownership of D.P.D. Investments dba Peeper's Adult Book Stop and that funds were due
sales taxing entities, the City would not have issued a sexually oriented business license
to D.P.D. Investments dba Peeper's Adult Book Stop, said license being issued solely on
the basis of false and fraudulent information provided by the applicant and the applicant's
failure to comply with provisions of the ordinance; and,
THAT, the City Council finds that the sexually oriented business license issued to
D.P.D. Investments dba Peeper's Adult Book Stop shall be revoked based on the evidence
presented in the hearing and the information set out in this resolution.
Accordingly, the City Manager or his designee is hereby directed to deliver a
certified copy of this resolution to the person in charge of Peeper's Adult Book Stop, 6035
MLK, Jr. Parkway and that the license revoked hereby shall be revoked and of no force
and effect from and after 8:00 a.m. Thursday, January 6, 2000.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of
9.dza��� 2000.
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