Agenda - Planning Commission - 02/03/1998

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Page 2- January 25, 1998 Z.B. First Amendment-- Is moratorium on adult businesses unconstitutional? City of Crystal v. Fantasy House Inc., 569 N. W.2d 225 (Minnesota) J 997 In June 1995, the city of Crystal, Minn., adopted an interim ordinance prohibiting adult businesses within 1,000 feet of residential areas, daycare centers, libraries, parks, churches, or playgrounds. There were no areas in the city that were not within 1,000 feet of any such places, so adult establishments were effectively banned from the city. .. In December 1995, Fantasy House Inc. opened Fantasy House Gifts, which sold shirts, greeting cards, a limited number of adult videos and books, and various sexual novelty items. The store was located within 1,000 feet of a park and a residential area. The city sued Fantasy House. It sought a court order prohibiting Fantasy House from operating its business in the city because it violated the interim ordinance. In January 1996, the city adopted a permanent ordinance to replace the interim ordinance. It relied on studies of businesses that allowed on-site use of sexually explicit material to prove that all aduIt establishments caused negative secondary effects. The permanent ordinance restricted any business devoting 25 percent or more of its floor area to adult merchandise or activities to industrial areas not within 250 feet of any residence, church, school, daycare, or park. The city supplemented its original complaint to include a claim that Fantasy House violated the permanent ordinance. Fantasy House claimed both ordinances were unconstitutional restrictions on free speech. It also chimed the differences between businesses that provided on-site use of sexually explicit material and those that didn't were so great the city couldn't rely on studies of businesses providing on-site use to restrict businesses that did not. The city agreed the interim ordinance didn't allow adult uses anywhere in the city, but argued a state statute allowed municipalities studying a proposed ordinance to adopt an interim ordinance to protect the planning process and the health and safety of its citizens. An interim ordinance could regulate, restrict, or prohibit any use for up to one year. ' The evidence at trial showed the permanent ordinance permitted adult uses on 34 acres of land in the city. This was about .9 percent of the total area of the city, and about 15 percent of the city's industrial and commercial property.. The court ruIed both ordinances were unconstitutional restrictions on free speech. It found the ordinances didn't provide reasonable alternative locations for adult uses and weren't "narrowly tailored" to a "substantial government interest." Also, the court found it was unreasonable for the city to rely on studies of adult establishments providing on-site use of sexually explicit material because Fantasy House didn't provide on-site use. The city appealed. DECISION: Reversed. The city had the statutory right to impose a moratorium on adult uses through adoption of the interim ordinance. The permanent ordinance was constitutional.