# Petition for Writ of Certiorari — Holmberg v. City of Ramsey

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1997
- **Citation:** 519 U.S. 1091

## Text

c~ Supreme Court, u.g.
(\) FILED

B96 727 Nov 4 1996

peftt OF THE CLERK

SUPREME COURT OF THE UNITED STATES —
October Term 1996
No.

ARNOLD HOLMBERG,
Petitioner.

CITY OF RAMSEY,
Respondent.

PETITION FOR WRIT OF CERTIORARI AND APPENDIX
TO THE SUPREME COURT OF THE
STATE OF MINNESOTA

RANDALL TIGUE LAW OFFICES PA
RANDALL D. B. TIGUE

2620 NICOLLET AVENUE SOUTH
MINNEAPOLIS, MINNESOTA 55408
(612) 874-9903

Attorney for Petitioner

Questions Presented

1. Is the Ramsey, Minnesota Adult Entertainment
Zoning Ordinance unconstitutionally overbroad in violation
of the First and Fourteenth Amendments to the United
States Constitution, in that it is not narrowly tailored to
those uses shown to have caused adverse secondary effects?

‘ Is the ordinance unconstitutionally vague, in violation
of the First and Fourteenth Amendments to the United
States Constitution?

a Did a genuine issue of material fact exists as to
whether the Ramsey, Minnesota Adult entertainment Zoning
Ordinance is content-based, rather than a legitimate attempt
to regulate adverse secondary effects?

ies and Pr in low

The parties to the proceeding below were the City of
Ramsey, a municipal corporation, as Plaintiff and Larry
Holmberg and the Amusement Center, Inc., a Minnesota
corporation, defendants. During the pendency of the appeal,
the Defendants sold their interest to Arnold Holmberg, who
brings this action as Petitioner.’

Review is sought of the decision of the Minnesota
Supreme Court, filed August 6, 1996. The Minnesota
Supreme Court’s decision is unrecorded and set forth in the
Appendix at A.1. The Minnesota Supreme Court’s decision
refusing to grant review of the decision of the Minnesota

During the pendency of the appeal in this matter, Larry Holmberg
and the Amusement Center Inc., the original defendants, conveyed their
interest in the subject premises to Petitioner Arnold Holmberg. This fact
is reflected in the opinion of the Minnesota Court of Appeals. See 548
N.W. 2d at 303 n.1, Appendix at A. 3 n.1

.

court of Appeals reported as City of Ramsey v. Holmberg,
548 N.W. 2d 302 (Minn. App. May 28, 1996), a copy of which

is set forth in the Appendix at A.2 - A.10.

ii

TABLE OF CONTENTS
Questions presented

Parties and Proceedings Below
Table of Authorities
Jurisdiction

Constitutional and Statutory
Provisions Involved

Statement of the Case
Argument:

I. The Minnesota Court’s upholding of
Ramsey Ordinance No. 90-23 against an
overbreadth challenge creates a conflict
between that Court and the Highest courts
of other jurisdictions, and conflict

between the Minnesota courts and this
Court’s holdings, requiring resolution

by this Court

II. Even if the Ordinance in question
were not unconstitutionally overbroad,
It would be unconstitutionally vague .

III. In the alternative a genuine
issue of material fact for trial

exists as to whether establishments
which deal exclusively in take-home
consumption cause any adverse
secondary effects.

Conclusion

ili

13

22

23

24

me Sten

TABLE OF AUTHORITIES
ONSTI ION:

First Amendment to the United
States Constitution ; ; , i,1,24

Fourteenth Amendment to the
United States Constitution. . ; i,1,4

DE TATUTES:
Title 28 U.S.C. Sec. 1257(a) . 1
ORDINANCES:
Ramsey City Ordinance No. 90-23. 1,3,4,6,13
CASES:

Alexander y. City of Minneapolis,
535 F. Supp. 1162 (D Minn. 1982),

aff'd 698 F.2d 936 (8th Cir. 1983). 23

Boos v. Barry, 485 U.S. 312
(1988) . ; ; ; 14

Central Hudson Gas & Elec. Corp.

v. Public Service Commission of N.Y..,
447 U.S. 557, (1980) . : : 21

City of Ramsey v. Holmberg,
548 N.W. 2d 302 (Minn. App.

May 28, 1996) . : | ii,13

City of Renton vy. Playtime
Theaters Inc., 475 U.S. 41 (1986) ; 13,14,16,18,21

iv

Denver Area Educational
Tel cations ;
Inc. v. Federal Communications

Commission, 116 S. Ct. 2374
(1996) .

44 Li v.R d
JA, 116 8. Ch. 1495
(May 13, 1996)

l rg v. City of
12 F. 3d 140 (8th Cir. 1993)

ILO Inv nts, Inc. v

City of Rochester, 816 F. Supp.
516 (D. Minn. 1992), rev'd

25 F.3d 1413 (8th Cir. 1994),

cert. denied, II5 S.Ct. 578 (1994)

New Jersey Citizens Action v.
Edison Township, 797 F.2
1250 (3d Cir. 1986)

Pennsylvania Alliance for

Jobs & Energy v. Council

of the Borough Munhall (PAJE),
743 F.2d 182 (3d Cir. 1984)

People v. Supreme Court (Lucero),

49 Cal. 3d 13 (1989)

Police Department of Chicago
v. Mosley, 408 U.S. 92 ( 1972)

Posadas De Puerto Rico

iates v.Tour
at P.R., 478 U.S. 328 (1986)

21

12,17,18,20,21,22

24

24

16

14

21

Pringle v. City of Covina,

115 Cal. App 3d 151 (1981)

Regan v. Time, Inc., 468 U.S. 641,
648-649 (1984)

Richardson v. Wile, 535 A.2d 346
(Del. 1988)

Sebago Inc. v. City of Alameda,
211 Cal. 3d (1989) rev. denied,

(Cal. 1989)

Schneider v. City of Ramsey, 800 F.
Supp. 815 (D. Minn. 1992),

aff'd sub. nom. Holmberg v.

City of Ramsey, 12 F. 3d 140

(8th Cir. 1993), cert. denied,

IS S.Ct. 59, 130 L.Ed.

2d 17 (1994)

Texas v. Johnson, 491 U.S. 397
(1989) .

Tollis v. San Bernardino
County 827 F. 2d 1329
(9th Cir. 1987)

United States v. Carolene
Products Co., 304 U.S. 144
(1938) .

Young v. American Mini Theatres,
427 U.S. 50 (1976)

Ward v. Rock Against Racism,
491 U.S. 781 (1989)

16

14

17

17

14

16

23

13,14,16,18

21

Worldwide Video v. Tukwila,

117 Wash. 2d 832 (1991),
cert. denied, 112 S.Ct. 1672 (1992)

Z.J. Gifts, Inc. v. City of

Aurora, 932 F. Supp. 1256
(D. Colo. July 2, 1996)

16

18,24

ri ion

Review is sought of a decision of the Supreme Court
of the State of Minnesota, entered August 6, 1996.
Jurisdiction is based upon Title 28 U.S.C. Sec. 1257(a).

Constitutional and Statutory
Provisions Involved

This case involves the First and Fourteenth
Amendments to the United States Constitution, the text of
which are set forth in the Appendix at A.52, and Ramsey
City Ordinance No. 90-23, pertinent portions of which are set
forth in the Appendix at A.44 - A.51.

Statement of the Case

Respondent commenced the present action against
Petitioner’s predecessors in interest to seek a permanent
injunction enforcing the provisions of Ramsey Ordinance No.
90-23, enacted by the Ramsey City Council in November of
1990. The Ordinance regulates the location of so-called
adult uses within the City of Ramsey.

The ordinance, at Section 9.02, defines the term
"adult uses" as follows:

"Adult uses include adult bookstores, adult

motion picture theaters, adult motion picture

rental, adult mini-motion picture theaters,

adult massage parlors, adult steam room/bath

house/sauna facilities, adult companionship

establishments, adult rap/conversation parlors,

adult health/sports clubs, adult cabarets, adult

novelty businesses, adult motion picture

arcades, adult modeling studios, adult

hotel/motels, adult body painting studios, and

all other premises, enterprises, establishments,
businesses or places open to some or all
members of the public, at which there is an
emphasis on the presentation, display,
depiction or description of ’specified sexual
activities’ or ‘specified anatomical areas’ which
are capable of being seen by members of the
public." Petitioners’ Appendix at A.45- A.46.
The same section defines the term "adult

use/bookstore" as follows:

"A building or portion of a building used for
barter, retail or sale of items consisting of
printed matter, pictures, slides, records, audio
tape, video tape, or motion picture film if
such building or portion of a building is not
open to the public generally but only to one
or more classes of the public extending (sic)
any minor by reason of age or if a substantial
or significant portion of such items are
distinguished or characterized on the emphasis
on the depiction or description of ’specified

»xual activities’ or specified anatomical
areas.” Id, at A.47 - 48.

The same ordinance defines the term "adult use --

motion picture arcade" as follows:

"Any place to which the public is permitted or
invited where in coin or slug-operated or
electronically or electrically or mechanically-
controlled still or motion picture machines
projectors or other image-producing devices

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are maintained to show images to five or
fewer persons per machine at one time, and
where the images so displayed are
distinguished or characterized by an emphasis
on depicting or describing ‘specified sexual
activities or specified anatomical areas.” Id.
at A.49 - 50.

The ordinance further defines the term "adult use --
novelty business” as:

"A business which has as a principal activity

the sale of devices which stimulate human

genitals or devices which are designed for

sexual stimulation.” Id. at A.5SO.

Finally, the definition section of the ordinance
distinguishes between "adult uses--principal,” which it defines
as a business establishment having more than "ten percent of
its stock in trade or floor area allocated to, or more than 20
percent of its gross receipts derived from, any adult use,” and
"adult uses accessory," in which under 10 percent of the stock
in trade or floor area or under 20 percent of the gross
receipts are derived from adult uses. Id. at A.47.

Prior to the commencement of this action,
Petitioner’s predecessors had previously unsuccessfully
challenged the constitutionality of Ramsey Ordinance No. 90-
23. See Schneider v. City of Ramsey, 800 F. Supp. 815 (D.
Minn. 1992), aff'd sub. nom. Holmberg v. City of Ramsey,
12 F. 3d 140 (8th Cir. 1993), cert. denied, IIS S.Ct. 59, 130
L.Ed. 2d 17 (1994). In the federal action, Petitioner’s
predecessors alleged that at the time of the commencement

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of the federal action in 1990, their operation featured three
separate and distinct adult uses as defined in the ordinance,
to-wit: an adults-only bookstore, an adults-only movie
arcade, and an adult business -- novelties, and that the
location of the establishment violated Ordinance No. 90-23,
in that the establishment was located within 1,000 feet of
residentially zoned property and within 1,000 feet of a
licensed day care center.’The federal action challenged the
facial constitutionality of Ordinance No. 90-23 on the
following bases:

a. The ordinance was enacted without sufficient
empirical support as to its necessity to combat adverse
secondary effects, rendering the ordinance not a content-
neutral regulation of location, but rather an impermissible
content-based censorship.

b. The operation and effect of the ordinance
would be to ban adult entertainment totally from the City of
Ramsey, or at least substantially curtail its availability.

. That the stated purpose of the ordinance was
merely pretextual, in light of the absolute ban on adult
entertainment created in fact.

d. Because the ordinance amortizes out of
existence adult entertainment businesses in a manner not
done to any other non-conforming use, the ordinance
violated the Equal Protection Clause of the Fourteenth
Amendment to the United States Constitution. See
Petitioner’s Appendix at A.102 - A.103.

In the federal action, the District Court upheld the

*See complaint in the federal action, paragraphs 23(a) and (b),
Petitioner's Appendix at A.91 - A.104.

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facial constitutionality of the ordinance, holding that based
upon the research of David Licht, a professional planner, and
public hearings:
"[T]he City concluded that adult uses create
secondary effects in the community, including
increased crime, increased health risks,
diminished property values, and general
neighborhood blights. It found that these
effects are particularly experienced when the
adult use is accessible to minors or located
near residential property or related residential
uses such as schools, day care centers,
libraries, or parks. It found that special
regulation of uses is necessary to assure that
adverse secondary effects would not
contribute to or enhance criminal activity in
the area of such uses nor contribute to the
blighting or downgrading of the surrounding
property and lessening of its value." 800 F.
Supp. at 819.

However, the District Court in the federal action also
specifically found that with one exception, there was no
evidence that Respondents’ adult bookstore, as then
constituted,’ in fact had generated adverse secondary effects.
The U.S. District Court specifically noted:

5 As already noted, supra, the store at the time of the federal
litigation the stock in trade for retail consisted of entirely sexually explicit
magazines, videos, and rubber goods, and featured a video arcade for on-
premises viewing of sexually explicit materials.

"[Licht} was not able to document an actual

decrease in property values the City based on

the short period of time the adult business

had been open in the city. The police reports

consisted largely of complaints of protesters at

the business about the operation of the

business and the conduct of its workers, and

complaints from Larry Holmberg about the

conduct of the protesters." Id. at 819.

The U.S. District Judge further noted that subsequent
to the adoption of the ordinance, "There has been no
evidence of decreased property values in the vicinity of the
adult business (footnote omitted)." Id. at 820. The omitted
footnote specifically noted that after Licht’s report was
presented to the City Council, a group of property owners
persuaded the City to reduce property taxes by 25 percent, to
reflect an alleged loss of property values. Following an
investigation by the senior appraiser in the Anoka County
Assessor’s office, the Anoka County Board of Adjustment
reversed this decision. See Id, at 820, n. 2.

The only secondary effect shown subsequent to the
enactment of the ordinance was "high risk sexual conduct" in
the motion picture viewing booths at the business. The
District Court concluded that the evidence of such activity in
the viewing booths "shows actual adverse secondary effects
since the adoption of Ordinance No. 90-23." Id. at 820.

In upholding the constitutionality of the ordinance,
the District Court specifically found that since Respondents’
business clearly fell within the definition of adult-uses
principle, Respondents lacked standing to challenge the
overbreadth of those definitions. See Id. at 822, n.3.

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After the United States District Court’s decision was
affirmed by the Eighth Circuit,‘ Petitioner’s predecessors
substantially modified the operation of the bookstore.
Specifically they sealed off from the public the entire video
booth area, so there was no on-premises consumption of
sexually explicit material taking place on the premises. This
in fact eliminated the only activity at the store found by the
United States District Court to cause any adverse secondary
effects.° Secondly, they substantially changed the amount of
retail merchandise available for sale, altering the nature of
the bookstore, to make it akin to the "Fantasy House" chain
of stores, such as the one in Fridley, Minnesota.
(Petitioners Appendix at A.59)

In an affidavit submitted by a clerk at the store, not
only were the video booths physically blocked off from public
access, but the video tape viewing booths were disconnected
from electrical power so they were non-functional
(Petitioners Appendix at A.59) Of the remaining floor
space, only 40 percent was devoted to sexually explicit
material, in the nature of books, magazines, video tapes or
novelties, and the remaining 60 percent was devoted to such
items as motorcycle magazines, car magazines, hunting
magazines, and Popular Mechanics type of magazines (Id. at
A.59).

As part of their submissions in opposition to
Respondents’ motion for summary judgment, Petitioner’s
predecessors included the affidavit of Robert Bruce

* See Holmberg v. City of Ramsey, 12 F. 3d 140 (8th Cir. 1993).

> See 800 F. Supp. at 820.

Eee settee — ° - a a ci a OR TER LET ET RO fe LE Ee 2. TEE |

McLaughlin, a former city planner, who has conducted

extensive review of the studies relied upon by city planners to
justify adult entertainment zoning ordinances. The affidavit

provided, in pertinent part, as follows:

ee As such, I have personally read and
become familiar with virtually all of the
published literature related to adverse
secondary effects of adult entertainment, and
have personally reviewed most of the
unpublished literature relied upon by
municipal governments as it related to adverse
secondary effects of adult entertainment
zoning.

4. Based upon your affiant’s extensive
professional experience, your affiant has yet to
find a single municipality or city planner that
has ever studied the adverse secondary effects
of general book and video stores, featuring
adults-only sections consisting of a minority of
the floor space, and featuring no on-premises
consumption of sexually explicit material.

5. All of the adult entertainment studies
relied upon by any municipality have
uniformly been of adults-only theaters; adults-
only bookstores, which have consisted of
virtually 100 percent sexually explicit material
and featuring on-premises consumption of
said material through coin-operated "peep
shows"; and alcoholic and non-alcoholic bars
featuring live nude dancing.

6. The reason that general video stores

with adults-only sections have never been the
subject of secondary effect studies has nothing
to do with the newness or novelty of such
entertainment forms; such entertainment
forms had been common throughout the
United States for at least IS years and have
been well known to city planners for that
entire period of time.
rE Rather, the reason such entertainment
forms have never been the form of secondary
effects studies is the fact that such
entertainment forms have been universally
recognized as materially different in nature
from adults-only bookstores, adults-only
motion picture theaters, and live nude dance
entertainment.
8. The chief reason why nobody has
studied the adverse secondary effect of
general release video stores with adults-only
sections is that no responsible city planner has
ever seriously suggested that such
entertainment forms cause the type of adverse
secondary effects associated with adults-only
theaters and adults-only bookstores, featuring
on-premises consumption of such
materials.” Petitioner’s Appendix at A.56 -
A.57.
Upon this record, the District Court, by the
Honorable James A. Morrow, District Judge, granted
Respondent’s motion for summary judgment in part and

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denied it in part.°

However, the District found that genuine issues of
material fact remained as to two issues:

"First, whether the zoning ordinance is

reasonably believed to be relevant to the

problem that the City of Ramsey seeks to
address; and second, whether the zoning
ordinance is sufficiently narrowly tailored to
affect only that category of businesses shown -

to produce unwanted secondary effects."

Petitioners’ Appendix at A.41 - A.42.

In holding that a genuine issue of material fact
existed, Judge Morrow specifically noted that because
Petitioner’s predecessors had changed the nature of their
store to eliminate on-premises consumption of sexually
explicit material, and because they were precluded from
raising an overbreadth challenge in federal court, Defendants
were not barred from raising a constitutional challenge,
based on overbreadth, in the present proceeding. The
District Court wrote:

"[Blecause Defendants challenged the zoning

ordinance from the position of an adult

bookstore with on-premises consumption of
adults-only material and because the studies
apparently show that other cities have

Judge Morrow granted the motion for summary judgment, insofar
as it found that Respondents’ use of the property at its current location
was prohibited under the City’s ordinance, that Defendant Holmberg was
properly served by publication, and that the initial enactment of the zoning
ordinance was a legitimate content-neutral time, place, and manner
regulation. See Petitioner’s’ Appendix at A.21 - A.22.

Petitioner does not seek review of those decisions.

10

experienced adverse secondary effects from
adult bookstores with on-premises
consumption of adults-only material, it seems
that Defendants would have been precluded
from raising the overbreadth of the provisions
as a constitutional challenge to the ordinance,
since they clearly fell within the core of the

| zoning ordinance provision. [Citation
omitted.] Judge Murphy appropriately held
so when Defendants attempted to challenge
the adults-use accessory provisions of the
ordinance. [Citations omitted.]

Whether the studies relied upon before the
City of Ramsey before enacting the zoning
ordinance address the adverse secondary
effects of adult bookstores without on-
premises consumption of adults-only materials
and whether the ordinance is sufficiently
narrowly drafted to correspond with the
studies’ findings are disputed issues of
material fact. These two issues must
therefore be reserved for trial and Plaintiff's
Motion for Summary Judgment and a
permanent injunction must be denied."
Petitioner’s ’ Appendix at A.42.

In its renewed motion for summary judgment,
Respondent tendered copies of all of the studies relied upon
by the City of Ramsey in enacting its ordinance, and also all
of the studies relied upon by the City of Rochester in
enacting the ordinance which was the subject of litigation in

11

7

pie

EEE

ILQ Investments, Inc. v. City of Rochester, 816 F. Supp. 516
(D. Minn. 1992), rey’d 25 F. 3d 1413 (8th Cir. 1994), cert.

denied, IIS S.Ct. 578 (1994).

In a responsive affidavit, Petitioner’s planning expert,
Robert Bruce McLaughlin indicated that he had personally
reviewed all of the foregoing studies and that none of them
dealt with adverse secondary effects of adult entertainment
featuring no on-premises consumption. See Petitioners
Appendix at A.63 - A.65.

Moreover, in addition, Petitioner noted that the only
study of adverse secondary effects done by a governmental
agency which considered an exclusively adult bookstore
containing no on-premises consumption concluded that no
adverse secondary effects resulted from the operation of such
a store (Petitioners’ Appendix at A.65). That study, done by
the City of Daytona Beach is set forth in Petitioners’
Appendix at A.73 - A.82. In particular, the study concerned
the News Mart, located at 214 North Beach Street, featuring
the sale of books and magazines. The study concluded:

"There have been no problems at this

business. Books are wrapped in plastic foil

and customers are not allowed to read them.

A separate area is marked off." Petitioners

Appendix at A.77.

In addition, McLaughlin himself set forth in his
Affidavit that in the City of Rochester, Minnesota, he had
personally conducted a study featuring a bookstore with adult
materials and no on-premises consumption, and several
control uses, including conventional book and video stores.
The study concluded that the store featuring adult materials
and no on-premises consumption had no negative impact on

12

property values within the city, and there was no inordinate
demand for police services, and no evidence of urban blight
(Petitioner’s Appendix at A.65).’

Notwithstanding the foregoing, the District Court
granted summary judgment to Respondent as to the
constitutionality of the ordinance as applied to Petitioner's
use, which decision was upheld by a 2-1 margin by the
Minnesota Court of Appeals,® and the Minnesota Supreme
Court declined further review.

ARGUMENT
I. THE MINNESOTA COURT’S UPHOLDING OF
RAMSEY ORDINANCE NO. 90-23 AGAINST AN
OVERBREADTH CHALLENGE CREATES A CONFLICT
BETWEEN THAT COURT AND THE HIGHEST COURTS
OF OTHER JURISDICTIONS, AND CONFLICT BETWEEN
THE MINNESOTA COURTS AND THIS COURT'S
HOLDINGS, REQUIRING RESOLUTION BY THIS
COURT.

In Young v. American Mini Theatres, 427 U.S. 50
(1976), and City of Renton v. Playtime Theaters Inc., 475

U.S. 41 (1986) this Court recognized the limited and narrow
exception to the general rule government regulation of
speech cannot be content-based; government may not treat
person’s speech differently from another, based upon the

DOT Nat REIS 2 RR yy Ss

A summary of Mr. McLaughlin's study concerning Rochester is set
forth in Petitioners” Appendix at A.86 - A.88.

* See City of Ramsey v. Holmberg, supra, 548 NW 2d 302 (Minn.
App. May 28, 1996).

13

content thereof.’ The reasoning behind this limited
exception created Young and Renton was that in permitting
special zoning treatment for adult entertainment, defined by
the content of the entertainment featured, the municipalities
were not regulating the content of the material per se, but
rather the “adverse secondary effects” caused by that
particular genre of entertainment, effects such as a decline in
property values, an increase in crime, and general blighting
of the surrounding neighborhood. For example, in the
plurality opinion in Young, written by Justice Stevens,”°
specifically noted the following:

"In the opinion of urban planners and real

estate experts who supported the ordinances,

the location of several such businesses (adult

theaters and other regulated business) in the

same neighborhood tends to attract an

undesirable quantity and quality of transients,

adversely affects property values, causes an

increase in crime, especially prostitution, and

encourages residents and businesses to move

elsewhere.” 427 US. at 55.

The plurality opinion particularly relied on the fact
that the ordinance was enacted in response to established
"secondary effects" such as decline in property values and

* Examples of where this Court has pronounced the general rule
include Police Department of Chicago v. Mosley,408 U.S. 92 (1972);
Regan v. Time, Inc., 468 U.S. 641, 648-649 (1984); Texas v. Johnson, 491
U.S. 397 (1989); Boos v. Barry, 485 U.S. 312 (1988).

' The 5-to-4 majority in Young came as a result of a plurality opinion,
written by Justice Stevens, in which Chief Justice Burger, and Justices
Rehnquist and White joined, and a concurring opinion by Justice Powell.

14

-

increase in crime rate, rather than objections to the content
of the films shown, as a basis for enacting the ordinance.

Mr. Justice Stevens, in his plurality opinion, specifically noted
the following:

"The Common Council’s determination was
that a concentration of ’adult’ movie theaters
causes the area to deteriorate and become a
focus of crime, effects which are not
attributable to theaters showing other types of
films. It is this secondary effect which these
ordinances attempt to avoid, not the
dissemination of ‘offensive’ speech. In
contrast, in Erznoznik v. City of Jacksonville,
422 U.S. 205, 95 S. Ct. 268, 45 L.Ed. 2d 125,
the justifications offered by the city rested
primarily on the city’s interest in protecting its
citizens from exposure to unwanted,
‘offensive’ speech. The only secondary effect
relied on to support that ordinance was the
impact on traffic -- in effect which might be
caused by a distracting open-air movie even if
it did not exhibit nudity." 427 U.S. at 7l, n. 34
In Renton, the Court upheld the validity of the
ordinance only upon a showing that the
ordinance was "narrowly tailored to affect only
that category of theaters shown to produce
unwanted secondary effects..." 475 U.S. at 52
In courts of many jurisdictions, including supreme

courts of other states, have not hesitated to invalidate adult
entertainment zoning laws, when those laws are not
definitionally “narrowly tailored” to uses found to have

15

caused adverse secondary effects.

For example, numerous courts have held that adult
entertainment zoning laws cannot be constitutionally applied
to theaters which, on a single occasion, show a single adults-

only film. See, for example, Pr Pringle v. City of Covina, 115
Cal. App 3d 151 (1981); People v. Supreme Court (Lucero),
49 Cal. 3d 13 (1989); and Tollis v. San Bernardino County
827 F. 2d 1329 (9th Cir. 1987). In Tollis, the court clearly

stated the appropriate test for measuring content-neutrality
under Young-Renton type of ordinances.

"To be acceptable as a content-neutral time,

place, and manner regulation, an ordinance

must be ‘designed to serve a substantial

governmental interest and allow for

reasonable alternative avenues of

communication.’ [Citation to Renton omitted. ]

Here, the county has presented no evidence that a

single showing of an adult movie would have any

harmful secondary effects on the community. The
county failed to show that the ordinance, as
interpreted by the County to include any theater that
shows an adult movie a single time, is sufficiently

‘narrowly tailored’ to affect only that category of

theaters shown to produce the unwanted secondary

effects’ [Citation to Renton omitted.]" Id. at 1332 -

1333.

Likewise, in Worldwide Video v. Tukwila, 117 Wash.
2d 832 (1991), cert. denied. 112 S.Ct. 1672 (1992), the
Washington Supreme Court invalidated a municipal zoning
ordinance which defined “adult entertainment” and “adult
bookstore” as one which devoted more than ten percent of

16

its stock in trade to sexually explicit materials, as applied to
an establishment dealing exclusively in take-home materials,
pointing out that all the studies of adult entertainment which
have lead to the conclusion that secondary effects are present
have dealt with establishments featuring on-premises
consumption of materials, such as theaters, large stage shows,
coin-operated peep shows; none have establishments which
deal solely in materials to be consumed at-premises have
similar secondary effects. In a similar vein, the Supreme
Court of Delaware in Richardson v. Wile, 535 A.2d 346 (Del.
1988) held that it would be unconstitutional to apply adult
entertainment zoning laws to general release video stores
with adult-only sections.

See also Sebago Inc. v. City of Alameda, 211 Cal. 3d
(1989) rev. denied, (Cal. 1989), holding that adult
entertainment zoning laws could not be constitutionally
applied to “adult news racks,” in the absence of any other
evidence demonstrating that such businesses cause adverse
secondary effects.

The Minnesota Court of Appeals rejected all of this
persuasive and contrary authority from other jurisdictions
and relied exclusively on ILQ Investments, Inc. v. City of
Rochester 25 F. 4 1413 (8th Cir 1994), cert. denied, 115 S.
Ct. 578 (1994), upheld the application of adult entertainment
zoning laws to a business which offered exclusively off-
premises consumption of adult materials in sixty percent of
whose floor space featured material of a non-sexual nature.

Apart from the fact that ILO Investments, Inc. is
directly in conflict with far more persuasive authority from
other jurisdictions, the analysis in that case is fundamentally
flawed for at least two additional reasons:

17

First of all, as already noted, supra, adult
entertainment zoning is a limited exception to the general
rule absolutely prohibiting content-based distinction in
speech, only where it can be shown that the regulation is not
directed at the content of speech itself, but only against the
adverse secondary effects created thereby. Therefore, to the
extent that ILO stands for the proposition that a city, having
before it evidence that establishments which deal in 100
percent adult entertainment, with exclusively both on and off-
premises consumption, can reasonably apply adult
entertainment zoning regulations to any establishment
featuring any amount of adult entertainment, on or off-
premises consumption, it is plainly inconsistent with the
underlying rationale of Young, Renton, and their progeny
and should be rejected.

In this regard, the ILO analysis was persuasively
rejected to the court in _Z.J. Gifts, Inc. v. City of Aurora, 932
F. Supp. 1256 (D. Colo. July 2, 1996). Citing the language in
ILQ to the effect that, “even if Downtown Book & Video is
a new type of adult business, it may not avoid time, place,
and minor regulation that has been justified by the study of
secondary effects of reasonably similar businesses,”"' the
court Z.J. Gifts stated:

Respectfully, this analysis is flawed in that it is

directed more toward the subjective intent of the city

council then the objective effect of the freedom to
communicate.

In the many cases which have addressed the probiem

of sexually oriented businesses and the efforts of

'' 25 F. 3d at 1418, cited 932 F. 2d at 1258.

18

oa ee

communities to restrict them, the analyses undertaken
have followed a pattern of repeating the litany from
the Supreme Court in [Renton] and other cases that
such cases are content neutral because they are not
designed to suppress the content of speech - only the
secondary effects of sexually oriented speech on the
neighborhood. There can be no quarrel with that
approach in those cases where those effects are well
documented in the types of studies which were used
by Aurora in considering this Ordinance. If the
plaintiff had booths for peep shows on its premises,
the issues in this case would then deal with some of
the particular restrictions which may be more than
necessary to meet the governmental purpose of
avoiding or mitigating those secondary effects. The
problem here is that none of the material relied upon
by the city council shows what the business of
Christie’s bears any relationship to such effects.”_Id.
at 1258.

The court went on to note:

“If the Plaintiff's business is sufficiently

dissimilar to the types of businesses associated

with the undesirable secondary effects that are

of legitimate governmental concern as shown

on the studies relied upon by the defendant,

then the application of the ordinance to

Christie’s store as sought by the defendant in

the counterclaim is directed not at crime,

public health, or property values. Instead it

seeks to suppress the sexual messages in the

store’s inventory. In some, the only

19

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significant difference shown between the

business of Christie’s and the other retail
businesses in this retail zone district is that
Christie’s sells explicit communications about

sexual activity. Thus, it can be justified only

by the reference to sexual content of

plaintiff's business.

There’s an obvious difference between a package
liquor store and a bar, and those differences are
noted in liquor licensing requirements [Citation
omitted. ]

There is also a qualitative difference as well as a
quantitative distinction between sports arenas and
sporting goods stores. It is difficult to believe that
anyone would suggest that sporting goods stores must
be limited to the same zoning areas as sports arenas
based on a rise in crime or reduction in residential
property values associated with sports arenas.” Id. at
1259,"

A grant of certiorari would resolve these clear
conflicts between jurisdictions.

Secondly and perhaps more significantly, to the extent

that decisions such as the instant case and ILQ Investments,
Inc., reached the results they did premised upon the notion
that courts must defer to legislative determinations as to the

The court further noted that similar difference existed between

the establishment providing sexual entertainment for consumption on
premises, and a cable television system broadcasting sexually explicit
entertainment in the home, relying on_Denver Area Educational
Telecommunications Consortium, Inc. v. Federal Communications

Commission, 116 §. Ct. 2374 (1996). See 932 F. 2d at 1260.

20

significance of the state interest being advanced, whether
those interests are directly advanced, and whether the
solution is appropriately narrowly tailored, those decisions
are plainly no longer good law in light of this Court’s

decision. In 44 Liquormart v. Rhode Island, =» ~US. ___,
116 S. Ct. 1495 (May 13, 1996), in which this Court expressly

overruled Posadas De Puerto Rico Associates v. Tours & Co.
at P.R., 478 U.S. 328 (1986), requiring deference to
legislative judgments in those matters.’

Secondly, the record before this Court is far different
than was the record before the Court in ILQ, Investments,
Inc., supra. In ILQ, the only legislative history before the
Court was the City’s studies establishing that adult
entertainment caused various adverse secondary effects.

The ILQ court concluded that based upon that record, the
City Council could reasonably have believed that the adult
entertainment zoning ordinance enacted was relevant to the
secondary effects problems caused. However, the record in

2 In the Central Hudson Gas & Elec. Corp. v. Public Service
Commission of N.Y., 447 U.S. 557, (1980), the United States Supreme

Court advanced the following test for juding the validity of commercial
speech which is not misleading or deceptive: First, that the governmental
interest in the regulation be substantial, that the regulation in question
directly advance the interest, and that the regulation in question be
narrowly tailored, so thta it is not more extensive than necessary to serve
that interest. In Renton, and more particulary in Ward v. Rock Against
Racism, 491 U.S. 781 (1989), the Court adopted the following tests for
determing the validity of a content-neutral time, place, and manner
regulation: the regulation must serve a substantial government interest,
unrelated to the suppression of free expression, it must be narrowly
tailored to serve that interest, and must leave available alternative
avenues of communication. Given the extreme similarity of the tests for
commercial speech and time, place, and manner regulation, there appears
to be no principled reason for treating the two tests differently.

21

the instant case is far different. It consists not only of the
studies relied upon in the City’s original enactment of the
ordinance, which generally show the existence of adverse
secondary effects; but also consists of two studies which
conclusively demonstrate no adverse secondary effects from
purely take-home entertainment and demonstrate that the
percentage of adults-only material sold at a given store is
irrelevant to secondary effects, of the City’s own experience
with the very use in question, showing that the only adverse
secondary effects related to on-premises motion picture view
booths, which have been eliminated. Therefore, even
assuming ILQ was correctly decided on the record before the
court in that case, that in no way supports the conclusion
that ILQ commands the same result in the face of a totally
different set of facts.

Il. EVEN IF THE ORDINANCE IN QUESTION WERE
NOT UNCONSTITUTIONALLY OVERBRAOD, IT WOULD
BE UNCONSTITUTIONALLY VAGUE.

The alternative definition of adult use-principal is
that no more than 20 percent of its gross receipts be from an
adult use.’* However, the ordinance is silent on the
question of the time period over which the 20 percent is to
be calculated. If on a given day, 10 people purchase Hustler
magazines, and no one buys any Popular Mechanics or other
non-sexual items, is the store in violation of the ordinance on
that day? Must a store owner sell $8.00 of non-sexual
material before he can sell $2.00 of sexually explicit material?
There is plainly no reasonable basis upon which a store

i4

A.47.

See definition of “Adult uses principal,” Petitioners’ Appendix at

22

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owner can comply with such a regulation.

‘ At least one court has held that a similar zoning
ordinance is unconstitutionally vague, in that it is impossible
to know how to comply with it. See Alexander v. City of
Minneapolis, 535 F. Supp. 1162 (D Minn. 1982), aff'd 698 F.

2d 936 (8th Cir. 1983).
Ill. IN THE ALTERNATIVE A GENUINE ISSUE OF
MATERIAL FACT FOR TRIAL EXISTS AS TO WHETHER
ESTABLISHMENTS WHICH DEAL EXCLUSIVELY IN
TAKE-HOME CONSUMPTION CAUSE ANY ADVERSE
SECONDARY EFFECTS.

Even assuming a patently absurd proposition that a
City Council could conclude that because an establishment
which features 100 percent adults-only material and has on-
premises consumption of such material causes adverse
secondary effects, the same secondary effects are caused by
an establishment with only 11 percent adult material and no
on-premises consumption, that does not answer the question
raised by the doctrine enunciated by the United States
Supreme Court in United States v. Carolene Products Co.,
304 U.S. 144 (1938), in which the Court stated:

“Where the existence of a rational basis for

legislation whose constitutionality is attacked

depends upon facts beyond the sphere of

judicial notice...the constitutionality of a

statute predicated upon the existence of a

particular state of facts may be challenged by

showing to the court that those facts have

ceased to exist." 304 U.S. at 153, 58 S.Ct. at

784.

In this regard, the decision of the district court in the

23

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instant case is plainly in conflict with the decision of Third
Circuit in New Jersey Citizens Action v. Edison Township,
797 F.2d 1250 (3d Cir. 1986), in which the court invalidated,
under the First Amendment, an ordinance prescribing door-
to-door political canvassing and soliciting after 5 p.m. In
doing so, the court overruled a panel the same court had
made only two years earlier in Pennsylvania Alliance for Jobs

& Energy v. Council of the Borough Munhall (PAJE), 743
F.2d 182 (3d Cir. 1984), in that the Plaintiffs in the latter

case made a factual showing that solicitations after 5 p.m. did
not contribute to burglary which was the factual basis for
upholding the ordinance in the earlier decision.

Likewise, in the instant case, a district court had
before it uncontradicted evidence from studies in other
jurisdictions that plainly demonstrated that take-home
establishments do not cause the same adverse secondary
effects as do establishments which feature on-premises
consumption. This plainly creates, at minimum, a genuine
issue of material fact for trial.’

ONCLUSION

For all of the foregoing reasons, the writ of certiorari
should be issued to the Minnesota supreme Court, and the
decision of the Minnesota Supreme Court should be
reversed.

's In this regard, See Z.J. Gifts v. City of Aurora, supra, 932 F. Sup.
1256, 1258 (D. Colo. July 23, 1996), in which the court noted that there

was no evidence that the Plaintiff's similar business establishment in
another city had caused adverse secondary effects and no evidence that the
business had caused adverse secondary effects in the city of Aurora in 2 %
years.

24

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: Randall D.B. Tigue ;

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(612) 874-9903
Attorney for Petitioner
Minn. Att. I.D. No. 110000

Dated: November 1, 1996. :

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APPENDIX

Order of Minnesota Supreme Court
denying further review

Opinion of Minnesota Court of Appeals

Order and Memorandum of Judge

Ellen Maas of Anoka County District Court .

Order and Memorandum of James
Morrow of Anoka County District Court

Pertinent portions of text of Ramsey
City Ordinance No. 90-23

Text of the First and Fourteenth
Amendments to the United States
Constitution

Joint Answer of Defendants

Affidavit of Robert Bruce McLaughlin,
dated 11/94 ; :

Affidavit of Cammille Nelson

Affidavit or Robert Bruce McLaughlin,
dated 4/13/95 and =

exhibits

Affidavit of Randall D.B. Tigue
and Exhibit :

Affidavit of Larry Allan Holmberg

Amended Complaint in federal litigation

A.l

A.2

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A.21

A.44

A.52

A.53

A.56

A.59

A.6l

A.83

A.89

A.9I

STATE OF MINNESOTA
IN SUPREME COURT
C5-95-2346

City of Ramsey,
Respondent,

VS.

Arnold Holmberg,
Appellant.

ORDER

Based upon all of the files, records and proceedings
herein,

IT IS HEREBY ORDERED that the Petition of
Arnold Holmberg and the conditional petition of the City of
Ramsey for further review be, and the same are, denied.

IT Is FURTHER ORDERED that the requests of the
League of Minnesota Cities and the Minnesota Civil Liberties
Union to serve and file briefs as amicis curiae are accordingly
denied.

Dated: August 6, 1996.

BY THE COURT:

ls/

Chief Justice

Al

Finance and Commerce Appellate Court Edition May 31, 1996
COURT OF APPEALS
CIVIL OPINIONS
State of Minnesota
In Court of Appeals
City of Respondent,

Respondent,

vs.
Arnold Holmberg,
Appellant.
Filed May 28, 1996
Affirmed
Schumacher, Judge
Davies, Judge (Dissenting)
Anoka County District Court
File No. C9-94-3310
James J. Thomson, Kennedy & Graven, chartered, 470 Pillsbury
Center, Minneapolis, Minnesota 55402 (for Respondent)
Randall D.B. Tigue, Patrice M. Feterl, 2620 Nicollet Avenue,
Minneapolis, Minnesota 55408 (for Appellant)
Considered and decided by davies, Presiding judge, Parker,
Judge and Schumacher, Judge

SYLLABUS

1. This court will not address an issue decided
adversely to a Respondent if the Respondent fails to file a
notice of review.

2. City of Ramsey Ordinance 90-23, which
regulates the location of adult businesses, is a constitutionally
valid restriction on the time, place, and manner of speech and
is not impermissibly overbroad.

3. City of Ramsey Ordinance 90-23 is not vague
merely because it does not specify a time period in which the
percentage of revenue derived from the sale of adult goods
must be calculated.

OPINION
SCHUMACHER, Judge (Hon. Ellen L. Maas, District Court
Trial Judge)

Larry Holmberg and the Amusement Center, Inc.’
appeal from summary judgment granted to respondent City of
Ramsey (the city), arguing that a zoning ordinance is overbroad
and vague. We affirm.

FACTS

Larry Holmberg (Holmberg) owned and operated a
business in the city called the Amusement Center, Inc. When
it opened in 1990, it sold adult books, magazines, and novelties;
it also operated booths for viewing adult movies. At the time
the Amusement Center opened, the city had no ordinances
governing the location of adult businesses, and there were no
other adult businesses operating in the city. The city council
decided to study how adult businesses affect neighborhoods and
hired a professional city planner to investigate. The planner
complied and analyzed neighborhood impact studies from other
cities and assessed the city’s general zoning plan. Based on the
planner’s report and the city planning commission’s
recommendation, the city council concluded that adult
businesses like the Amusement Center produce negative
"secondary effects," such as increased crime, lower property
values, and general neighborhood blight.

The council amended the city’s zoning ordinance to
categorize adult businesses into either “adult use principal" or
"adult uses-accessory." Under the ordinance, an adult use is a
business emphasizing the display or description of certain
sexual activities or anatomical areas. An adult use-principal
business is defined as one having more than 10% of stock or
floor area allocated to, or more than 20% of gross receipts
derived from, any adult use. An adult uses-accessory business

‘After this matter was fully briefed, argued and submitted to this court for
decision, Larry Holmberg and the Amusement center, Inc., conveyed to
Arnold Holmberg their interests in the business and real estate subject to the
injunction at issue in this appeal. Accordingly, Arnold Holmberg has been
substituted as the appellant in the caption of the case, but because Larry
Holmberg and the Amusement Center, Inc., litigated this case in the district
court and in this court, we continue to refer to them in our opinion.

A3

Nae aa ccc ae mae ansenuae n Sai SGA

is defined as one having 10% or less of stock or floor area
devoted to, or 20% or less of receipts derived from, adult
movie rentals or magazines sales. The ordinance provides that
an adult use-principal business must be located at least 1,000
feet from certain protected uses, including residential zones,
day-care centers, schools, parks liquor stores, and churches.
The Amusement Center violated the ordinance because it was
an adult use-principal business and was located within 1,000 feet
of residentially-zoned property, a day-care center, a church, and
a bowling alley that serves liquor.

Holmberg unsuccessfully challenged the constitutionality
of the ordinance in a federal court action, arguing that it
violated the First and Fourteenth Amendments. Schneider v.
City of Ramsey, (D. Minn. 1992), affd sub nom. Holmberg v.
City of Ramsey, 12 F. 3d 140 (8th Cir. 1993), cert. denied, 115
S.Ct. 59 (1994).

The city then brought this action seeking declaratory
relief and an injunction preventing Holmberg from operating
his business. In opposition to the city’s motion for summary
judgment, Holmberg contended _ the ordinance was
unconstitutional as applied to his changed business. Holmberg
noted that he changed his business by eliminating the viewing
booths and adding non-adult merchandise so that only 25% of
the stock and floor area was devoted to sexually-oriented
material. Hcimberg argued that because the nature of his
operation at the time of the federal litigation prevented him
from raising an overbreadth claim, the doctrines of collateral
estoppel and res judicata did not prevent him from again
litigating the constitutionality of the ordinance.

The district court granted in part and denied in part the
city’s summary judgment motion. The court granted the motion
with respect to the city’s claim that the ordinance is a content-
neutral time, place, and manner regulation. The court denied
the remainder of the motion, concluding that there were
genuine issues of material fact about (1) whether the studies
relied on by the city address the effects of adult bookstores with
no on-premises consumption of material and (2) whether the

Ad

ordinance affects only the types of businesses shown to produce
unwanted secondary effects. The court invited the city to
supplement the record and stated that if the city could show
there were no issues of material fact regarding these two
factors, "a permanent injunction should issue."

The city renewed its motion for summary judgment and
submitted copies of all the materials relied on by the city when
it enacted the ordinance. The district court found that, based
on the expanded record, the ordinance was constitutional and
granted the city’s request for a permanent injunction.
Judgement was entered for the city.

ISSUES

3 Are the issues of res judicata or collateral
estoppel properly before this court?

2. Is the city’s zoning ordinance unconstitutionally
overbroad?

3. Is the city’s zoning ordinance unconstitutionally
vague?

ANALYSIS

1. The city argues that Holmberg is precluded by
the doctrines of res judicata and collateral estoppel from
litigating the constitutionality of the ordinance. Holmberg
contends, and we agree, that this issue is not properly before
this court because the city did not file a notice of review.

Even if the judgment below is ultimately in its favor, a
party must file a notice of review to challenge the district
court’s ruling on a particular issue. Arndt v. American family
Ins. Co., 394 N.W. 2d 791, 793 (Minn. 1986). If a party fails to
file a notice of review pursuant to Minn. R. Civ. App. P. 106,
the issue is not preserved for appeal and a reviewing court
cannot address it. Potter v. LaSalle Sports & Health Club, 368
N.W. 2d 413, 418 (Minn. App. 1985), aff'd, 384 N.W. 2d 873
(Minn. 1986). Under 413, 418 (Minn. App. 1985), aff'd 384 N.W.
2d 873 (Minn. 1986). Under this procedural posture of this
case, it is appropriate for this court to review both of the
district court’s orders on the city’s motions for summary
judgment. See Minn. R. Civ. App. P. 103.04 (on appeal from

AS

judgment, appellate court may review any order involving
merits or affecting judgment).

The city argued to the district court that the
constitutionality of the zoning ordinance was fully litigated in
the federal action, and res judicata or collateral estoppel barred
the claim in state court. The district court ruled against the
city on this issue. In its order filed January 20, 1995, the district
court ruled that in the federal litigation, Holmberg

would have been precluded from raising the

overbreadth of the provisions as a constitutional

challenge***,since[he] clearly fell within the

core of the zoning ordinance provision.

See Dorso Trailer Sales v. American Body & Trailer, 482 N.W.
2d 771, 774, (Minn. 1992) (res judicata only bars matters that
were litigated or could have been litigated). In its renewed
summary judgment motion, the city did not argue res judicata
or collateral estoppel, and in its September 5, 1995, order, the
district court did not address the issue, stating that it was bound
to follow the rule of case as determined by its first order.
Because the issue was decided adversely to the city, the city was
required to file a notice of review in order for this court to
address it.

Determining whether an ordinance is
constitutional is a question of law, and this court need not
defer to the district court’s conclusions. In re Billie, 494 N.s. 2d
877, 881 (Minn. 1993). An ordinance is presumed
constitutional and the burden of proving otherwise rests on the
party attacking its validity. City of St. Paul v. Daisin, 245
Minn. 325, 329, 71 N.W. 2d 855, 858 (1955). An overbroad
restriction of expression is unconstitutional. New York v.
Ferber, 458 U.S. 747, 769, 102, S.Ct. 3348, 3361 (1982). The
doctrine of overbreadth, which invalidates entire statutes, is
"strong medicine” and should be applied cautiously. Osborne
v. Ohio, 495 U.S. 103, 122, 10 S.Ct. 1691, 1703 (1990) (quoting
Broadwick v. Oklahoma, 413 U.S. 601, 613, 93 S. Ct. 2908, 2916
(1973).

Because the city’s ordinance does not ban adult

A6é

businesses completely, but merely limits the areas in which they
may operate, it is properly analyzed as a time, place, and
manner regulation. See City of Renton v. Playtime Theatres,
475 U.SAl, 46, 106, 106 S.Ct. 925,928 (1986), (time, place, and
manner regulation analysis applies where ordinances does not
ban adult business altogether, but merely regulates its location).
Such regulations are valid if they are content-neutral and are
"designed to serve a substantial governmental interest and do
not unreasonably limit alternative avenues of communication."
Id. at 47, 106 s.Ct. at 928.

Local governments may restrict adult businesses in
order to curb their unwanted "secondary effects." Id. at 106
S.Ct. at 929-30. In determining whether the secondary effects
of adult businesses justify regulation, a city is not required to
conduct its own study, but may rely on the studies and
experiences of other cities,

so long as whatever evidence the city relies

upon is reasonably believed to be relevant to

the problem that the city addresses. Id. at 51-

52, 106 S.Ct. at 931.
Holmberg argues that the ordinance is overbroad in its
definition of "adult use-principal" because it is not limited to
the specific types of businesses that have been shown elsewhere
to cause adverse secondary effects. He claims no studies have
shown that businesses such as his current operation --those with
off-premises consumption and a majority-of stock and floor
space devoted to non-adult material--cause undesirable
secondary effects. This same argument was rejected by the
Eighth Circuit in ILQ Investments v. City of Rochester, 25 F.
3d 1413 (8th Cir.), cert. denied IIS S.Ct. 578 (1994). In ILQ, an
adult business argued that it was unreasonable for the City of
Rochester to rely on other cities’ studies because they did not
address similar businesses-those that offer non-sexually explicit
as well as sexually explicit materials and do not allow on-
premises consumption of such materials. Id. at 1417. The court
soundly rejected this argument, stating:

That is simply not the law *** Under City of

A7

Renton, Rochester need not prove that

Downtown Book and Video would likely have

the exact same adverse effects on _ its

surroundings as the adult businesses studied by

Indianapolis, St. Paul, and Phoenix. So long as

Ordinance No. 2950 affects only categories of

businesses reasonably believed to produce at

least some of the unwanted secondary effects,

Rochester "must be allowed a_ reasonable

opportunity to experiment with solutions to

admittedly serious problems.” ***Even if

Downtown Book and Video is a new type of

adult business, it may not avoid time, place, and

manner regulation that has been justified by

studies of the secondary effects of reasonably
similar businesses.
Id. at 1418 (footnote omitted) (quoting Young v. American Mini
Theatres, Inc., 427 U.S. 50, 71, 96 S.Ct. 2440, 2453 (1976)
(plurality opinion)).

We find the district court was correct in concluding that
in this case, as in ILQ, the city’s reliance on voluminous studies,
reports, and reference materials satisfies the City of Renton
test. Any businesses affected by the ordinance are those that
the city reasonably believed cause undesirable secondary effects.

The council had before it a planning report that
specifically addressed the city’s concerns. In preparing the
report the planner examined articles, reports, and background
materials from throughout the United States, as well as
information provided by the city. In addition to the planning
report, the city examined reports from the cities of Rochester,
St. Paul, Phoenix, and Seattle, which deal with "reasonably
similar businesses." As the district court noted, most of the
studies and reports relied on by the City of Ramsey “are the
same studies upon which the City of Rochester relied in ILQ."
The council had before it a planning report that specifically
addressed the city’s concerns. In preparing the report, the
planner examined articles, reports, and background materials

A8

from throughout the United States, as well as information
provided by the city. In addition to the planning report, the
city examined reports from the cities of Rochester, St. Paul,
Phoenix, and seattle, which deal with "reasonably similar
businesses." As the district court noted, most of the studies and
reports relied on by the City of Ramsey "are the same studies
upon which the City of Rochester relied in ILQ.." The council
had sufficient information about adult businesses in general to
enact a valid ordinance.

Holmberg argues that the record here--unlike that in
ILQ consists of two studies showing that the sale of purely
take-home merchandise does not produce unwanted secondary
effects. These studies were not before the city, however, at the
time it enacted the ordinance. Moreover, they fail to raise a
genuine issue as to whether the city reasonably believed that
the businesses to which the ordinance applies produce at least
some of the unwanted secondary effects experienced by other
cities.

nA Part of the definition of an "adult use-principal"
business is that more than 20% of gross receipts are derived
from an adult use. Holmberg argues that the ordinance is
vague because it does not specify a time period during which
the 20% figure is to be calculated. We disagree. The lack of
a definite time period in which to apply the terms of the
ordinance is not fatal. See generally Humenansky v. Minnesota
Bd. of Medical Examiners, 525 N.W. 2d 559, 564 (Minn. App.
1994) (statute is not unconstitutionally vague merely because
some marginal fact situation may pose difficulty of application),
review denied (Minn. Feb. 14, 1995)

DECISION
Ordinance 90-23 is neither impermissibly overbroad nor

ee

vague.
Affirmed.

DAVIS, Judge (dissenting)

I respectfully dissent.

In prior litigation it was determined that the City of Ramsey

ordinance was neither facially unconstitutional nor

- aetna -

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are a

unconstitutional as applied in Amusement Center, Inc.
Holmberg v. City of Ramsey, 12 F. 3d 149 (8th Cir. 1993), cert.
denied, IIS S.Ct. 59 (1994) (Holmberg 1). Holmberg now
contends, however, that Amusement Center’s operation is
significantly different from its prior business. Holmberg seeks
again to challenge--on constitutional grounds--the application
of the ordinance in Amusement Center.

In my view, Amusement Center’s current off-sale
operation is so significantly different from its prior on-sale
business that Holmberg should have the opportunity to again
challenge the ordinance on constitutional grounds; not facially,
of course, but as applied to his current operation.

The on-sale/off-sale distinction is fundamental.
Amusement confronts the court with an issue regarding the
underpinnings of the ordinance distinct from the question
faced in Holmberg I. The finding of constitutionality in
Holmberg I would not be controlling as to Holmberg in his
current conduct of this significantly different off-sale business.

ILQ Investments v. City or Rochester, 25 F. 3d 1413 (8th
Cir.) cert. denied, 115 S.Ct. 578 (1994), likewise falls short of
conclusiveness on the absence of on-sale/off-sale distinction that
might be applicable to Holmberg.

Al0

STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ANOKA TENTH JUDICIAL DISTRICT

City of Ramsey,
Plaintiff,
vs. ORDER
Larry Holmberg and Court File No. C9-94-3310
the Amusement Center, Inc.,
Defendants.

This matter was heard on June 7, 1995 before the
Honorable Ellen L. Maas, Judge of District Court. James
Thomson, Esq., appeared on behalf of Plaintiff. Randall D.B.
Tigue appeared on behalf of Defendant. The Court, upon
reviewing the files, affidavits, and proceedings herein, and upon
hearing the arguments presented, hereby makes the following:

ORDER

1. Plaintiffs request for summary judgment is
GRANTED.

2. A permanent injunction shall issue.

3. All other motions are denied.

4+ The attached memorandum is made part of this
Order.
Dated:_September 5, 1995 /s/

Ellen L. Maas
Judge of District Court

All

a

MEMORANDUM
FACTUAL AND PROCEDURAL HISTORY

This matter arises from Plaintiff, City of Ramsey’s ("the
City") motion for modification of Judge Morrow’s January 20,
1995 Order, or in the alternative, summary judgment against
Defendants. Larry Holmberg and the Amusement Center, Inc.,
permanently enjoining Defendants from operating the adult
bookstore located at 6710 Highway 10 ("the property") in the
City of Ramsey.

Since April 1990, The Amusement Center, Inc., has
operated a business on the property consisting of the sale of
adults-only books and magazines, the sale of sexual novelties
and the in-store display of adults-only motion pictures in video
; booths. The video booths have been, removed or closed to the
public. the business is located within 1,000 feet from
residentially zoned property, a church, and an on-sale liquor
establishment.

On November 13, 1990, the Ramsey City Council

enacted Ordinance No. 90-23 which, in part, permanently
amended the City code governing the zoning and regulation of
adult uses. Under Ordinances No. 90-23, adult uses may
operate in the City in B-3 and B-W zoning districts provided
that they are at least 1,000 feet from certain uses, including
residentially zoned property, churches, and on-sale liquor
establishments. Adult uses operating in any other location are
prohibited under the ordinance.
In March 1991, Defendants commenced an action against
the City in federal court unsuccessfully challenging the
constitutionality of Ordinance No. 90-23. See Schneider v. City
of Ramsey, 800 F. Supp. 815 (D. Minn. 1992). In their
complaint in that action, Defendants admitted that their
business violated Ordinance No. 90-23. See Schneider v. City
of Ramsey, 800 F. Supp. 815 (D. Minn. 1992). In Holmberg v.
City of Ramsey, 12 F. 3d 140 (8th cir. 1993), the Eighth Circuit
Court of Appeals upheld the ordinance. The United States
Supreme Court denied Defendants’ writ of certiorari. 115 S.Ct.
59, 130 L.

OO Ee ee

Al2

Ed. 2d 17, 63 U.S.L.W. 3257 (1994).

In March 1994, Plaintiff commenced this action to
permanently enjoin Defendants from operating their business
in its present location. On October 10, 1994, Plaintiff moved for
summary judgment seeking (1) a declaratory judgment declaring
that Defendants’ use of the property is a prohibited use under
Ordinance No. 90-23 and (2) a permanent injunction
prohibiting Defendants from operating an adult bookstore on
the property. Defendant contend that since December 30,
1993, (the date on which the Eighth Circuit affirmed Judge
Murphy’s decision upholding Ordinance No. 90-23), the video
booths have been closed to the public and because of this
change the subject ordinance is now impermissibly broad and
therefore unconstitutional.

On January 20, 1995, the Honorable James A. Morrow
issued an Order granting in part and denying in part Plaintiff's
motions. Judge Morrow granted Plaintiffs motion for
declaratory judgment, declaring that Defendants’ use of the
property is a prohibited use under Ordinance No. 90-23. In
addressing the constitutionality of Ordinance No. 90-23 Judge
Morrow followed City of Renton v. Playtime Theatres, Inc., 475
U.S. 41, 106 S.Ct. 925, 89 L.Ed. 2d 29 (1986) in which the United
States supreme Court held that a statute or ordinance
regulating adult uses is constitutional if: (the statute or
ordinance is a content-neutral time, place, and manner
restricting; (2) the government has an important or substantial
interest-in regulating adult entertainment business which is
unrelated to the suppression of free speech, and (3) the
incidental restriction on First Amendment freedoms is no
greater than essential to further the government’s interest. See
Judge Morrow’s January 20, 1995 Order, p. 20.

Judge Morrow held that the City’s ordinance is content-
neutral but declined to address the remaining issues, namely
whether the City had an important or substantial interest in
regulating adult uses and whether the ordinance was narrowly
tailored, because the studies upon which the City relied were
not part of the record. Judge Morrow denied the city’s request

Al3

Re ne ee

~~

for a permanent injunction but invited the City to supplement
the record and further stated that if the city could satisfy the
remaining two elements, "a permanent injunction should issue."
Judge Morrow's January 20, 1995 Order, paragraph 6.

The City now has submitted those studies to this Court
and requests that this Court rule on the two issues left
unanswered by Judge Morrow. This Court must follow the rule
of the case as determined by Judge Morrow in his January 20,
1995 Order. Accordingly, this Court’s analysis is limited to
determining whether the City has satisfied the last two prongs
of the City of Renton test: (1) whether the City had a
substantial governmental interest in regulating adult
entertainment businesses which was unrelated to the
suppression of free speech; and (2) whether Ordinance No. 90-
23 is sufficiently tailored to affect only that category of
businesses shown to produce the unwanted secondary effects.

ANALYSIS
I, THE CITY HAS A _ SUBSTANTIAL
sOVERNMENTAL IN N T
USES

The substantial governmental interest asserted by the
City is its interest in limiting the adverse secondary effects of
adult uses. The eighth Circuit stated that "it is not enough for
the city merely to give lip service to a legitimate governmental
interest. The City also has the burden to substantiate its
declaration that zoning regulations are needed to curb
unwanted secondary effects of sexually oriented business that
operate in Ramsey." Holmberg v. City of Ramsey, I2 F. 3d 140,
143 (8th cir. 1993). In identifying and measuring the unwanted
secondary effects of adult uses, a city may rely upon studies or
evidence generated by other cities "so long as [that] evidence...is
reasonably believed to be relevant to the problem that the City
addresses". ILO Investments v. City of Rochester, 25 F. 3d 1413
(8th Cir. 1994) citing City of Renton y. Playtime Theaters, 475
US. 41, 51 106 S.Ct. 925, 931, 89 L.Ed. 2d 29 (1986).

The city chose to rely on studies conducted by other
cities in drafting its zoning ordinance. Judge Morrow stated

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4

that "[t]he problem faced by this Court in that it cannot
determine from the record as it has developed thus far whether
the studies on which the City relied include adverse secondary
effects of adult bookstores without on-premiss consumption".
See Judge Morrow’s January 20, 1995 Order p. 22. Judge
Morrow noted that the case at bar may be distinguishable from
ILQ Investments and as such, may require the city to consider
studies addressing adverse secondary effects of adult bookstores
without on-premises consumption. Accordingly, Judge Morrow
declined to rule on the issue but invited the City to supplement
the record with the actual studies. following the law of the case
as determined by Judge Morrow, this Court must find that if
the City relied on studies that are reasonably believed to be
relevant to th unwanted secondary effects of adult uses, the
City will have met its burden of establishing that there is a
substantial governmental interest in regulating adult businesses.

In ILQ the owner of an adult bookstore challenged the
constitutionality of the City of rochester’s zoning ordinance
defining and restricting the location of adult establishment uses.
The adult bookstore in ILQ segregated forty percent of its floor
space into an adults-only selling area selling sexually explicit
books, magazines, and novelty items. The store had no
facilities for on-premises viewing of these sexually explicit
materials.

The City of Rochester’s Common Council directed the
Planning commission to study the effects of adult entertainment
uses. The Planning Department published the results of its
study. This report discussed the relevant legal issues and
precedents and summarized studies of the adverse secondary
effects of adult entertainment businesses conducted by other
cities including Minneapolis, St. Paul, Phoenix and Indianapolis.
the Rochester Common Council found that the other cities’
Studies were relevant to the existing or foreseeable impact
which such uses can have. Based upon these studies and a
public hearing, the Rochester Common Council adopts its
adults uses zoning ordinance.

Plaintiffs in ILO challenged the bases of the city relied

Al5

on in adopting the ordinance. Plaintiffs claimed that because
the studies relied on by the city did not specifically address
businesses similar to the store at issue, i.e., a bookstore that
offers both sexually explicit and non-sexually explicit materials
and allows only off-premises consumption of those materials,
the city’s concern over secondary effects was not legitimate and
the ordinance was not narrowly tailored. Id. at 1417. The
Eighth Circuit rejected this argument stating:

The studies the Common Council found

relevant to Rochester’s problems identified and

measured adverse secondary effects linked to

adult businesses generally -- higher crime,

neighborhood deterioration, lower property

values, and an increase in transients -- as well as

adverse secondary effects specifically

attributable to adult bookstores.

Id. at 1417-1418.

The instant case is on all fours with ILQ. This Court has
reviewed the voluminous studies, reports, reference materials
and affidavits submitted by the City. This Court finds that the
legislative history of Ordinance No. 90-23 demonstrates that the
City has satisfied the second prong of the City of Renton test.

-The City retained Northwest Associated Consultants,
Inc., to conduct a planning and zoning study of adult uses. In
September 1990, the consultants published the results of its
study in a report entitled, "City of Ramsey Adult Use Planning
Report" ("The Planning Report"). The purpose of the study
was to determine the primary and secondary effects of adult
uses in the City, the appropriate locations of adult uses within
the community and the appropriate and harmonious regulation
of adult uses and other uses.

In their analysis and evaluation of adult uses, the
authors of the Planning Report relied upon two primary
categories of resources. The first resource category included
several studies, articles, reports and background materials from
all over the United states including Minnesota, all of which are

Al6

on file with the City Offices.? The second resource category
included information from the City. Specifically, the May 29,
1990 public hearing conducted by the Ramsey Mayor, City
Council, Planning Commission, and staff, the transcript of those
proceedings and current Ramsey Police Department complaint
records generated in connection with adult use activities within
the City.

The Planning Report which contains an extensive
analysis of actual and proposed zoning districts designed to
provide specific opportunities for adult uses within the City,
offered the following conclusions:

1. Activities defined as adult uses are protected by
the First Amendment to the United States Constitution.
2. A community must provide reasonable

The Planning Report identified the following reference materials:
Report of the Attorney General’s Working Group on the Regulation of
Sexually Oriented Businesses, June 6, 1989.

Rochester/Olmsted Planning Department Adult entertainment Research
Report, March 2, 1988. ASPO Planning Advisory Service Report #327:
regulating Sex businesses by William Toner, May, 1977

Adult Entertainment Businesses in Indianapolis, an analysis, february 1984.
Relation of Criminal Activity and Adult Businesses; prepared by the City of
Phoenix Planning Department May 1979.

American Law of zoning: 17.01; 17.02.

Application of Miller’s Test by Jury.

Surveys of X-Rated Pornographic Activity in Dakota County 1986-1989, May
20, 1989.

Law Enforcement Cooperation; National Coalition Against Pornography, Inc.
Pornography Changes Attitudes and Actions, June 1989.

Pornography Destroys, Dallas Association for Decency.

Uncovering Obscene Materials - A Mother’s Approach.

Adult Entertainment, Supplement Study, St. Paul Division of Planning, 1988.
Adult Entertainment, 40 Acre Study, St. Paul Division of Planning, 1987.
City of Coon Rapids, City Code-Licenses.

Director's Report, Adult Entertainment, Department of Construction and
Land Use, City of Seattle, Washington, August 1989.

City of Renton v. Playtime Theater, Inc., et al

475 US. 41 (1986).

City of Minneapolis City Code

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LK

opportunity for adult uses to exist. The Renton Washington
Supreme Court case provides a guidance in this regard.

3. Adult uses may produce a secondary impact or
effect which is judged as negative to the health, safety, and
general welfare of the community and as a result, these
secondary impacts or effects can be controlled.

4. A community, due to the secondary impact of
adult uses, can regulate such activities and restrict their
proximity to sensitive activity sites which are typically oriented
toward minors.

3 Due also to secondary impacts, a community can
maintain the separation of adult uses from one another.
6. A community has the right to police adult uses

to insure they are operating in a fashion where the secondary
impacts or effects are mitigated to the extent possible.

City of Ramsey Adult Use Planning Report, September 20, 1990,
p. 3.

The City relied on the Planning Report, as well as
reports from the cites of Rochester, St. Paul, Phoenix, Seattle,
and thee ASPO report when it passed Ordinance No. 90-23.
This Court notes that most of these studies and reports are the
same studies upon which the City of Rochester relied in ILQ.

The City passed its zoning ordinance relying on other
cities’ studies showing that sexually oriented businesses have an
adverse impact on surrounding neighborhoods. When the
ordinance was passed, the City Council had reliable evidence
before it that businesses like Holmberg’s produce undesirable
side effects. In the companion federal case, the Eighth Circuit
Court of Appeals upheld the District Court’s decision
concerning the second prong of the City of Renton test:
"Because the City reasonably believed the studies were relevant
to the problems i Ramsey, City satisfied its burden." Holmberg
v. City of Ramsey, 12 F. 3d 140 (8th Cir. 1993) citing Renton,
475 U.S. at 51-52. Thus, the provisions of the ordinance
requiring Holmberg to relocate his business represented a
legitimate governmental response to a substantial interest.

II. ORDINANCE _NO.__90-23_ DOES NOT

Als

UNREASONABLY_ LIMIT ALTERNATIVE AVENUES OF
COMMUNICATION

Under the third prong of the third prong of the City of
Renton test, the City must demonstrate that Ordinance No. 90-
23 is narrowly tailored so as not to unreasonably limit
alternative avenues of communication. See Janra Enterprises,

Inc. v. City of Reno, 818 F. Supp. 1361 (D. Nev. 1993) and
Renton y. Playtime Theatres, Inc., supra. Defendants contend
that the City was constitutionality required to disregard the
studies upon which it relied in passing Ordinance No. 90-23
because none of those studies evaluated the secondary effects
of adult establishments like the Amusement Center, Inc.
Defendants’ argument is not persuasive.

Again in ILQ the court rejected the store owner’s
argument that the City of Rochester must disregard the studies
used because non evaluated the secondary effects of bookstores
offering non-adult as well as adult materials and having no
facilities for on-premises consumption by stating: "[t]hat is
simply not the law. The requirement of narrow tailoring is
satisfied ‘so long as the...regulation promotes a substantial
government interest that would be achieved less effectively
absent the regulation” Id. at 1418 citing Ward v. Rock Against
Racism, 491 U.S. 781, 791, 105 L.Ed. 2d 661 (1989).

Under Ordinance No. 90-23, sexually orientated
businesses like Defendants’ adult bookstore can locate
anywhere within the authorized commercial zones, provided the
location is at least 1000 feet from the protected uses. In the
City of Renton, the U.S. supreme court stated that the subject
ordinance withstood Respondents’ First amendment challenge
so long as the City refrained from "effectively denying
Respondents a reasonable opportunity to open and operate an
adult theater within the city." City of Renton, 475 U.s. at 54.
This Court holds that because Ordinance No. 90-23 provides
defendant with potential relocating sites in accessible
commercially zoned areas, the ordinance does not unreasonably

Al9

,

limit alternative avenues of communication.’
CONCLUSION

Judge Morrow previously determined that Ordinance
No. 90-23 is a valid content-neutral time, place, and manner
restriction. This Court now holds that the city has an
important or substantial interest in regulating adult
entertainment businesses that is unrelated to the suppression of
free speech and that the incidental restrictions on First
Amendment freedoms is no greater than essential to further
the City’s interest. The City was reasonable in relying on
studies from other cities which addressed the negative
"secondary effects" often associated with sexually oriented
businesses. In addition, Ordinance No. 20-23 is sufficiently
narrowly tailored so as to allow alternative avenues of
communication.

Therefore, this Court holds that ordinance No. 90-23 is
constitutional and Plaintiff's request for a permanent injunction
is hereby granted.

‘Defendants contend that the 10 percent restriction in Ordinance 90-23 is
overly broad and therefore unconstitutional. This Court notes that the 10
percent restriction in and of itself does not make the ordinance overly broad
and unconstitutional. This Court notes that the 10 percent restriction in and
of itself does not make the ordinance overly broad and unconstitutional. the
10 percent restriction is simply used to define an adult use. Defendants are
not restricted from operating an adult bookstore that has 100% of its
inventory in sexual materials as long as it operates such a store within a
properly zoned area.

ee ices

PAA han sinks nas ee Ae

i
3
.

A20

STATE OF MINNESOTA DISTRICT COURT
COUNTY OF ANOKA TENTH JUDICIAL DISTRICT
City of Ramsey,

Plaintiff,
VS. ORDER
Larry Holmberg and the
Amusement Center, Inc., a Court File No.
Minnesota Corporation, . C9-94-3310

Defendants.

The above-captioned matter came on before the
undersigned Judge of District court on October 10, 1994, on
Plaintiffs motion for summary judgment. Plaintiff requested
(l)a declaratory judgment declaring that Defendants’ use of
property located at 6710 Highway 10 in the City of Ramsey is a
prohibited use under the City’s zoning ordinance and (2) a
permanent injunction prohibiting defendants from operating an
adult bookstore on that property.

Plaintiff was represented by Mr. James J. Thomson,
Esq., of Holmes & Graven, Chartered, 470 Pillsbury Center,
Minneapolis, Minnesota 55402.

Defendants were represented by Mr. Randall D.B.
Tigue, Esq., 2620 Nicollet Avenue, Minneapolis, MN 55408.

The last brief was received on November 3, 1994.

Based upon the arguments and memoranda of counsel
and all of the files, records, and proceedings herein, the Court
makes the following:

ORDER
4 Plaintiffs motion for summary judgment is GRANTED
IN PART and DENIED IN PART.
3 Defendants’ use of the property located at 6710 Highway
10 in the city of Ramsey is a prohibited use under the City’s
zoning ordinance. Plaintiff is entitled to a declaratory judgment
and its motion is GRANTED.
a Defendant Holmberg was evading service of process
within the state of Minnesota and Defendants were therefore

A21

Feed

poe

ts A, Sie a FI

ipa ine HS

asthe

4 ae

properly served by publication in accordance with Minn. R. Civ.
P. 4.04(a). Plaintiff's motion is GRANTED in that respect.

4 The zoning ordinance is a content-neutral time, place,
and manner regulation. Plaintiffs motion is GRANTED in
that respect.

a Plaintiff is not entitled to have the remainder of its
motion granted as there are two genuine issues of material fat
left to be resolved. First, whether the zoning ordinance is
reasonably believed to be relevant to the problem that the City
of Ramsey seeks to address, and second, whether the zoning
ordinance is sufficiently narrowly tailored to affect only that
category of businesses shown to produce the unwanted
secondary effects.

6. Although Plaintiffs motion for a permanent injunction
cannot be granted, the issues left for trial are narrowed to the
two outlined above in paragraph 5 of this Order. If Plaintiff is
able to prove the above two facts, a permanent injunction
should issue.

os The attached memorandum is incorporated into this
Order.
8. The Court Administrator shall notify the parties of this

Order by mailing copies of the same to the parties’ attorneys,
whose names and addresses appear on the first page.

BY THE COURT:

ls/

James A. Morrow

Judge of District Court
_ Tenth Judicial District

Dated:_1/20/95.
MEMORANDUM
FACTS
Defendant Larry Holmberg is the owner of property
("the property") located at 6710 Highway 10 in the City of
Ramsey. Since April, 1990, the Amusement Center, Inc., has
operated a business on the property consisting of the sale of
adults-only books and magazine., the sale of sexual novelties
and the in-store display of adults-only motion pictures in video

A22

a“

booths. The video booths are now blocked off from the public.
The business is located within 1,000 feet from residentially
zoned property, a church, and an on-sale liquor establishment.

On November 13, 1990, the Ramsey City Council
enacted Ordinance No. 90-23 which, in part, permanently
amended the City Code relating to the zoning and regulation
of adult uses. Pursuant to the ordinance, adult uses may
operate in the City of Ramsey in B-3 and B-W zoning districts
provided that they are at least 1,000 feet from certain uses,
including residentially zoned property, churches, and on-sale
liquor establishments. Adult uses operating in any other
location are prohibited by the Ordinance.

In March, 1991, Defendants commenced an action
against the City of Ramsey in the United States District Court
for the District of Minnesota. In their complaint in that action,
Defendants admitted that their business violated the ordinance,
but challenged its constitutionality. Following a trial, the
District Court upheld the ordinance. Schneider v. City of
Ramsey, 800 F. Supp. 815 (D. Minn. 1992). Following an appeal
by Defendants, the United States Eighth Circuit Court of
Appeals affirmed the District Court. Holmberg v. City of
Ramsey, 12 F. 3d 140 (8th Cir. 1993). The United States
Supreme Court denied defendants’ writ of certiorari on
October 3, 1994. 115 S.Ct. 59, 130 L.Ed. 17, 63 U.S.L.W. 3257
(1994).

The present action is brought by the City of Ramsey to
enforce the provisions of its zoning ordinance.

ANALYSIS
Summary Judgment Standard

Summary judgment is proper only if the pleadings,
depositions, answers to interrogatories, and admissions on file,
together with the affidavits, show that there is no genuine issue
of material fact and that either party is entitled to judgment as
a matter of law. Minn. R. Civ. P. 56.03.

The substantive law will identify which facts are
"material." A "material fact" is one that will affect the result or
outcome of the case, depending on its resolution. Anderson v.

A23

Liberty Lobby, Inc., 477 U.S. 242, 248, 91 L.Ed. 2d at 2ll, 106
S.Ct. at 2510. See generally, OA C. Wright, A. Miller & M.
Kane, Federal Practice and Procedure; Civil 2d Section 2725, pp.
89-95 (1993).

A "genuine issue” is one that is not futile to try to a fact
finder; it cannot be one that is sham, frivolous, or unsubstantial.
Benson v. Northern Gopher Enterprises, 446 N.W. 2d 678, 680
(Minn. 454, 456, 160 N.W. 2d 153, 155 (1968).

A material fact is "genuine" if the evidence is such that
a reasonable jury could return a verdict for the non-moving
party. Anderson, 477 U.S. at 248, 91 L.Ed. 2d at 2Il-12, 106 s.Ct.
at 2510. See generally, 10A Federal Practice and Procedure; Civil
2d Section 2725, pp. 95-109.

The standard for granting summary judgment in
Minnesota has developed to follow changes taking place in
federal law. In Carlisle v. City of Minneapolis, 437 N.W. 2d 712
(Minn. Ct. App. 1989), the Minnesota Court of Appeals
considered that:

The United States Supreme Court has stated

that the plain language of Rule 56 mandates the

entry of summary judgment “after adequate

time for discovery and upon motion, against a

party who fails to make a showing sufficient to

establish the existence of an element essential

to that party’s case, and in which that party will

ear the burden of proof at trial. In such a

situation, there can be no ’genuine issue as to

any material fact,’ since a complete failure of

proof concerning an essential element of the

non-moving party’s case necessarily renders all

other facts immaterial."

Carlisle, 437 N.W. 2d at 715, quoting Celotex Corp. v. Carrett,
477 US. 317, 322-23, 91 L.Ed. 2d 265, 273-74, 106 S.Ct. 2548,
2552-53 (1986). If the moving party has sustained its burden of
proof and has negated an essential element of the nonmovant’s
case, the nonmoving party must present affirmative evidence to
defeat the properly supported motion. Carlisle, 437 N.W. 2d at

A24

715. See also, Lloyd v. In Home Health, Inc., 523 N.W. 2d 2,
3(Minn. Ct. App. 1994) ("Summary judgment on a claim is
mandatory against a party who fails to establish an essential
element of that claim, if that party has the burden of proof,
because this failure renders all other facts immaterial").

The moving party has the burden of proving that there
is no genuine issue of material fact. Vieths v. Thorp Finance
Co., 305 Minn. 522, 524, 232 N.W. 2d 776, 778 (Minn. 1975).
when the moving party makes out a prima facie case, the
burden of producing facts that raise a genuine issue shifts to
the opposing party. Thiele v. Stich, 425 N.W. 2d 580, 583
(Minn. 1988), citing Celotex Corp. Summary judgment is proper
in Minnesota when the nonmoving party fails to provide the
court with specific facts indicating that there is a genuine issue
of material fact. See also, St. Louis County attorney’s Office v.
Twenty-Four Thousand Six Hundred Forty-Three and 01/100
Dollars ($24,643,01) in Various Denominations of U.S. Currency
and Twenty-Four Video Poker Machines, 524 N.W. 2d 542,__,
1994 Minn. App. LEXIS 1254 *12 (Minn. Ct. App. 1994), citing
Music Land Group, Inc. v. Ceridian Corp., 508 N.W. 2d 524,
5[30]31 (Minn. Ct. App. 1993). When the moving party has met
its threshold burden, a nonmoving party cannot successfully
resist a motion for summary judgment by "simply show[ing] that
there is some metaphysical doubt as to material facts." Carlisle,
437 N.W. 2d at 715. See also, Matsushita Electric Industrial Co.
1. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89
L.Ed. 2d 538, 552 (1986), cited with approval in Carlisle, 437
N.W. 2d at 715.

The Court must resolve any doubt regarding whether a
fact issue exists or not in favor of finding that a fact issue exists.
Rathbun, 300 Minn. at 230, 219 N.W. 2d at 646. See also, 2A
David F. Herr & Roger S. Haydock, Minnesota Practice Section
56.03, Author’s Comments Section 56.19 (2d ed. 1985). See
further, 1OA Federal Practice and Procedure: Civil 2d Section
2727, pp. 124-25 and 1994 Supplement thereto, at pp. 33-35.

Further, the evidence presented to the Court must be
viewed in the light most favorable to the nonmoving party.

A25

ot mate s3 2

Vieths, 305 Minn. at 524-25, 232 N.W. 2d at 778; Marose v.
Hennameyer, 347 N.W. 2d 509, Sil (Minn. Ct. App. 1984). This
means that all doubts and factual inferences must be resolved
against the moving party. Nord v. Herreid, 305 N.W. 2d 337,
339 Minn. 1991). See also, 10A Federal Practice and Procedure;
Civil 2d Section 2727, pp. 124-25 and 1994 Supplement thereto,
at pp. 33-35. However, the United States Supreme Court has
made it clear that there is

no express or implied requirement in [Federal]

Rule [of Civil Procedure] that the moving party

support its motion with affidavits or other

similar materials negating the opponent’s claim.

On the contrary, Rule 56(c)*, which refers to

"the affidavits, if any" (emphasis added), suggest

the absence of such a requirement. And if

there were any doubt about the meaning of

Rule 56(c)° in this regard, such doubt is clearly

removed by Rules 56(a)® and (b)’, which

provide that claimants and defendants,

respectively, may not move for summary

judgment "with or without supporting affidavits"

(emphasis added). The import of these

subsections is that, regardless of whether the

moving party accompanies its summary

judgment motion with affidavits, the motion

may, and should, be granted so long as

whatsoever is before the district court

demonstrates that the standard for summary

ee

‘Minn. R. Civ. P. 56.03.
»Minn. R. Civ. P. 56.03.
®Minn. R. Civ. P. 56.03.

‘Minn. R. Civ. P. 56.03.

A26

judgment, as set forth in Rule 56(c)*, is

satisfied. One of the principal purposes of the

summary judgment rule is to isolate and dispose

of factually unsupported claims or defenses, and

we think it should be interpreted in a way that

allows it to accomplish this purpose.
Celotex Corp, 477 U.S. at 323-24, 91 L.ed. 2d at 274, 106 S.Ct. at
2553 (emphasis and the words "emphasis added" in original).

Finally, even when the parties do not dispute the facts,
but merely the application of the law as to those facts, summary
judgment is proper. Fire & Cas. Ins. Co. of Connecticut v.
Illinois Farmers Ins. Co., 352 N.W. 2d 798, 799 (Minn. Ct. App.
1994).

Summary Judgment Analysis

Plaintiff argues that there is no genuine issue of
material fact concerning the City of Ramsey’s entitlement to
declaratory judgment and an injunction. Defendants, on the
other hand, argue thet a genuine issue of material fact exists as
to whether Defendants’ current operation is an "adult use" as
defined in the zoning ordinance. Further, Defendants argue
that genuine issues of material fact exist regarding Defendants’
affirmative defense. Defendant assert that they were
improperly served’ and that the ordinance is
unconstitutional’® as applied to defendants’ current use of the

*Minn. R. Civ. P. 56.03.

“Defendant Holmberg is the designated agent for service of process for
Defendant the Amusement Center, Inc. Plaintiffs Reply Memorandum in
Support of Summary Judgment Motion, at 5. Improper service of process on
Defendant Holmberg would be improper service of process on Defendant
The Amusement Center, Inc.

"Defendants argue that the zoning ordinance is unconstitutional under
both the Federal Constitution (First and Fourteenth Amendments to the
United States Constitution) and under the Minnesota Constitution (Article
1, Section 3 Minnesota Constitution). Minnesota’s appellate courts have held
that the state constitution’s freedom of expression guarantee affords as much

A27

property.

; Violati i , i i

! Chapter 9, Section 9.11.19 of the City of ramsey City
Code, added by City of Ramsey Ordinance 90-23 in 1990,
provides in part as follows:

Subdivision |. Purpose. The nature of adult
uses is such that they are recognized as having
: adverse secondary characteristics, particularly
3 when they are accessible to minors and located
near residential property or related residential
uses such as schools, day care centers, libraries
or parks. Furthermore, the concentration of
adult uses has an adverse effect upon the use
and enjoyment of adjacent areas. The nature of
j adult uses requires that they not be allowed
within certain zoning districts, or within
; minimum distances from each other or
residential uses. Special regulation of adult uses
; is mecessary to ensure that the adverse
a peas secondary effects would not contribute or
enhance criminal activity in the area of such
uses nor will it contribute to the blighting or
downgrading of the surrounding property and
lessening of its value.

Subd. 2. General. Adult uses as defined in this
Chapter shall be subject to the following
general provisions:

a. Activities classified as obscene are not

hoped

protection as the First Amendment, Knudtson v. City of Coates, 506 N.W. 2d
: 29, 32 (Minn. Ct. App. 1993), reversed on other grounds, 519 N.W. 2d 166
(Minn. 1994), and the liberties have been interpreted for some purposes more
broad under the state than under the Federal Constitution. State v. Davidson,
; 48] N.W. 2d 51, 56 (Minn. 1992). For the issue at bar, however, the parties
have not identified any ways in which the protections of the federal and state
Constitutions vary.

A28

permitted and are prohibited.

b. Adult uses, either principal or accessory,
shall be prohibited from locating in any
building which is also utilized for residential
purposes.

c Adult uses, either principal or accessory,
shall be prohibited from locating in any place
which is also used to dispense or consume
aicunolic beverages. +

d. An adult use which does not qualify as
an accessory use pursuant to Subdivision 4a. of
this subsection, shall be classified as an adult
use-principal.

Subd. 3. Adult Uses-Principal [sic]:

a. Adult use-principle shall be located at
least 1,000 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

locate to the property line of:
é Residentially zoned property,
2. A licensed day care center,

3. A public or private educational facility
classified as an elementary, junior high or senior
high,

A public library,

A public park,

Another adult use-principal Isic},

An on-sale liquor establishment, or

Any church or _ church related
organization.

b. Adult use principal activities, as defined by
this Chapter, shall be classified as one use. No
two adult uses-principal shall be located in the
same building or upon the same property and
each use shall be subject to this Section.
C.

d.

SNA MA

A29

follows:

Subd. 4. Adult Uses - Accessory [sic]:

a. Adult use-accessory shall:

1, Comprise no more than 10% of the floor
area of the establishment in which it is located.
2. Comprise no more than 20% of the
gross receipts of the entire business operation.
a Not involve or include any activity
except the sale or rental of merchandise.

b.

l.

.&

3
c

Subd. 5. Nonconforming Adult Use - Principal
[sic] or Accessory’...

Chapter 9, Section 9.02 of the City of Ramsey City
Code, amended by City of Ramsey Ordinance 90-23 in 1990, is
the definitions section of the City Code. It provided in part as

Adult Uses: Adult uses include adult
bookstores, adult motion picture theaters, adult
motion picture rentals, adult mini-motion
picture theaters, adult massage parlors, adult
steam room/bathhouse/sauna facilities, adult
companionship establishments, adult
rap/conversation parlors, adult health/sport
clubs, adult cabarets, adult novelty businesses,
adult motion picture arcades, adult modeling
studios, adult hotels/motels, adult body painting
Studios, and other premises, enterprises,
establishments, businesses or places open to
some or all members of the public, at or in
which there is an emphasis on the presentation,
display, depiction or description of "specified
sexual activities" or "specified anatomical areas"
which are capable of being seen by members of

A30

the public.

a. Specified anatomical areas:
1.
Z: ae

b. Specified Sexual Activities:

NAWSWNE

Adult Uses - Accessory [sic]: A use, business, or
establishment having 10% or less of its stock in
grade or floor area allocated to, or 20% or less
of its gross receipts derived from movie rentals
or magazine sales.

Adult Uses - Principal [sic]: A use, business, or
establishment having more than 10% of its stock
in trade or floor area allocated to, or more than
20% of its gross receipts derived from, any
adult use.

Adult Use Body Painting Studio...

Adult Use - Bookstore [sic]. A building or
portion of a building used for the barter, rental
or sale of items consisting of printed matter,
pictures, slides, records, audio tape, videotape,
or motion picture film if such building or
portion of a building is not open to the public
generally but only to one or more classes of the
public excluding [sic] any minor by reason of
age or if a substantial or significant portion of
such items are distinguished or characterized by
an emphasis on the depiction or description of
"specified sexual activities" or "specified
anatomical areas".

Adult Use - Motion Picture Arcade [sic]. Any
place to which the public is permitted or invited
wherein coin or slug-operated or electronically,
electrically or mechanically controlled or
operated still or motion picture machines,
projectors or other image producing devices are
maintained to show image to five or fewer
persons per machine at any one time, and
where the images so displayed are distinguished
or characterized by an emphasis on depicting or
describing "specified sexual activities" or
"specified anatomical areas."

Adult Use - Novelty Business [sic]. A business
which has as a principal activity the sale of
devices which stimulate human genitals or
devices which are designed for sexual
stimulation.

Plaintiff argues that the facts are undisputed and that
Defendants are violating the City’s zoning ordinance.
Defendants argue that they have admitted certain allegations
contained in the City’s complaint, but that "the allegations
expressly not admitted are that Defendants operate an adult
use as defined by the ordinance on the property, and that the
Defendants’ current us is expressly prohibited by the
ordinance." Memorandum of Points and authorities in
Opposition to Plaintiff's Motion for Summary Judgment, at 4-5.
Defendants further argue that

No affidavits of any kind are submitted

describing Defendants’ current use or which

would lead the court to determine that the

current use falls within the purview of the

ordinance. By contrast, defendant in his

A32

affidavit, sets forth the fact that since the time
of the Eighth Circuit decision, substantial
changes have been made to the nature of the
operation, including elimination of the on-
premiss viewing of adults-only material, and a
change in merchandise, to eliminate much of
the sexually explicit material, and to substitute
novelty items, making the store similar in nature
to the "Fantasy House’ [sic} establishment in
Fridley.

Memorandum of Points and Authorities in Opposition to
Plaintiffs Motion for Summary Judgment, at 5. Defendants
subsequently "request that the motion for summary judgment
be denied." Memorandum of Points and Authorities in
Opposition to Plaintiff's Motion for Summary Judgment, at 5.
It is clear from the summary judgment standard as set
out above on page 5 of this memorandum that Plaintiff is not
required to submit affidavits in support of its motion. See
Celotex Corp., 477 U.S. at 323-24, 91 L.Rd. 2d at 274, 106 S.Ct.
at 2553. However, the Court has before it three affidavits
regarding the content of the premises. All three affidavits were
executed after Defendants’ memorandum of law in opposition
to the motion for summary judgment was submitted to the
Court. Two of the affidavits were submitted in support of the
motion for summary judgment and one -was submitted in
opposition to the motion. The first affidavit is from Mr.
Michael Auspos, the Police Chef for the City of Ramsey. He
states in part:
L. I am the Police Chief for the City of
Ramsey, Minnesota. On October 5, 1994, I
entered the adult bookstore located at 6710
Highway 10 in the City. Attached to this
affidavit are pictures of the property as it
existed on October 5, 1994. A sign on the
property depicts the business as an "adult
bookstore."

A33

2. I entered the building through the front door,
which was open. I walked into the display area
of the building. Along the east wall of this area
were magazine racks containing a few comic
books and other types of non-adult magazines.
[Emphasis added]. Other racks contained
sexual artifacts and novelties. On the other
racks towards the west portion of the room
there were numerous pornographic magazines,
which were in a plastic wrap and sealed. Along
the west wall display area were video cassettes
of a pornographic nature.

The second affidavit is from Mr. James Singewald. It provides,
in part:

l.[ am a police officer for the City of Ramsey.
On Wednesday, October 5, 1994 Shortly after
11:00 a.m., I entered the premises at 6710
Highway 10 in the City of Ramsey, along with
Police Chief auspos.

2. As I entered the building, there was a male
sitting behind the counter at the front door. I
walked into the portion of the building
displaying the sexual novelties, adult books and
magazines. In the magazines area, I observed
some sports magazines and comic books in
addition to the magazines containing sexually-
explicit material. The portion of the display area
that contained the non-sexually explicit magazines
was less than 10%

[Emphasis added].
3. be
4. das
> As I was leaving the business, I observed

along the sidewalk adjacent to the building two
discarded and unrolled condoms.

A34

The third affidavit is from Ms. Camille Nelson. It provides:

L. Your affiant is employed as a clerk at
the Amusement Center Bookstore, located at
6710 Highway 10, Ramsey, Minnesota.

2. As such your affiant has had occasion to observe

the new floor layout at the Amusement Center.
3. Under the new layout, the video tape
viewing booths are physically blocked off, and
we are under instructions to admit no one into
the area of the store.

4. In addition, all of the video tape viewing
booths have been disconnected from electric
power so they are totally non-functional.

5. Of the remaining floor space, only 40
percent is devoted to material of a sexually explicit
nature, either books, magazines, video tapes, or
novelties. [Emphasis added].

6. The remaining 66 *% of the floor space in
the store is devoted to items such [sic]
motorcycle magazines, car magazines, hunting
magazines, and Popular Mechanics types of
magazines.

7. Your affiant executes this affidavit in
opposition to Plaintiffs Motion for Summary
Judgment.

Although the affidavits vary in the percentage of the

floor space used to display sexually explicit materials between
90% and 40%, it is undisputed that in excess of 10% of the
floor space is dedicated to adult use materials, either books,
magazines, video tapes, or novelties. As set out above, the
zoning ordinance provides that "“[a] use, business, or
establishment having more than 10% of its stock in trade or
floor area allocated to, or more than 20% of its gross receipts
derived from, any adult use” is an adult use-principal. Section
9.02 City of Ramsey City Code.

A35

The dispute is not over

material” facts, but over the legal consequences of those facts.
As discussed above, when not the facts, but rather the
application of the law to those facts, is disputed, summary
judgment is proper. See Fire & Cas. Ins. Co of Connecticut v.
Illinois Farmers Ins. Co., 352 N.W. 2d at 799, cited supra pages
3-6 of the memorandum.

The application of the clear language of the zoning
ordinance to the facts shows that the Defendants operate an
"adult use-principal.". Because Defendants do not otherwise
dispute that they are in violation of the provisions of the
ordinance, Plaintiff is entitled to its declaratory judgment.

As Plaintiff has set out in its memorandum of law in
support of its motion, violations of zoning ordinances constitute
irreparable injury and are appropriate for injunctive relief. In
the adult use case of City of Minneapolis v. F & R, Inc., 300
N.W. 2d 2 (Minn. 1980), reh. denied (Minn. Jan. |, 1981), the
Supreme Court emphasized that it has recognized that an
injunction is probably the most efficient way for local
governmental unit to deal with continuing zoning violations. F &
R, Inc., at 4, citing City of Mahtomedi v. Spychalla, 308 Minn.
429, 432, 243 N.W. 2d 31, 33 (1976); Itasca County v. Rodenz,
268 N.w. 2d 423, 424 (Minn. 1978); and Brown County v.
Meidinger, 271 Nw. 2d 15, 19 (S.D. 1978). Compared to
injunctive relief, repeated prosecution for a violation of a
zoning ordinance, seeking imposition of a fine or jail term, is an
inadequate method of attaining the goal of zoning ordinance
compliance. The purpose of use restrictions is not punishment
but the attainment of conforming uses. An injunction ordering
compliance with use restrictions is peculiarly suited to this end.
Furthermore, repeated prosecution for each violation is a

"The difference in facts is not material, because a finding either way does
not affect the result or outcome of the case, since either way the percentage
of floor space dedicated to sexually explicit materials excess 10%. See
Anderson v. Liberty Lobby, Inc., 477 U.. at 248. 91 L.Ed. 2d at 2il, 106 S.Ct.
at 2510. See further, cases cited in the summary standard as set out above on
page 2 of this memorandum.

A36

eT ON

misuse of limited administrative and judicial resources. F & R,
Inc., at 4.

It is therefore mecessary to review defendants’
affirmative Gofenses...

Defendants previously unsuccessfully cholenaed the
constitutionality of the zoning ordinance in federal court. See
Schneider v. City of Ramsey, 800 F. supp. 815 (D. Minn. 1992),
aff'd sub nom. Holmberg v. City of Ramsey, 12 F. 3d 140 (8th Cir.
1993), cert. denied, 15 S.Ct. 59, 130 L.ed. 2d 17, 63 U.S.L.W. 3257
(1994). The question is therefore whether defendants should be
allowed to raise the constitutional issue again.

Although not in so many words, Plaintiff has contested
defendants’ ability to challenge the constitutionality of the
zoning ordinance under the principles of res judicata or
collateral estoppel. Defendants assert that the elements of
neither principle are met.

Res judicata and collateral estoppel are two different
but related doctrines. See Gulbranson v. Gulbranson, 408 N.W.
2d 216, 217 (Minn. Ct. App. 1987). Res judicata bars claims,
while collateral estoppel bars issues. Res judicata is applied
when a party does not presented the whole of the claim in the
original suit. Collateral estoppel is applied when the claim in
the second suit is different from that involved in the first, but
involves one or more issues that were actually litigated and
necessarily determined in the original action. Res judicata
prevents further litigation of issues that were not in fact
litigated so long as they were part of the same claim.
Collateral estoppel, on the other hand, deals only with the
effect of the judgment on issues actually litigated and
necessarily determined in the prior suit. 3 Douglas D.
McFarland, William J. Keppel, Minnesota Civil Practice (2nd ed.
1990) Section 2532, at 623.

Res judicata operates as an absolute bar to a
subsequent suit on the same cause of action, concluding the
parties and their privies not only as to every matter that was
litigated, but also as to any other claim or defense which might

A37

have been litigated. R.W. v T.F., 510 N.W. 2d 231, 234-35
(Minn. Ct. App. 1994), rev. granted (Minn. 1994). See also,
Dorso Trailer Sales, Inc. v. American Body and Trailer Inc., 482
N.W. 2d 771, 773-74 (Minn. 1992).

When a prior judgment is offered as a bar fo a later suit
on a different claim, the question is simply whether any issue
has been adjudicated by the judgment that is 2'sc: present in the
second suit. If it has, the judgment is conclusive on that issue
and cannot be contradicted in the second action. The issue
must be identical to the one in the prior suit. If the issue was
not involved in the prior adjudication thereof on the merits, the
judgment can have no effect in the later action. 3 Minnesota
Civil Practice Section 2538, at 648-49. Collateral estoppel is
appropriately applied where (1) the issue at hand is identical to
an issue in the prior adjudication, (2) there was a final
judgment on the merits, (3) the party to be estopped was a
party or in privity with a party to the prior adjudication, and (4)
the estopped party was given a full and fair Opportunity to
litigate the adjudicated issue. Saint Paul Fire and Marine Ins.
Co. v. Central Nat'l, Ins. Co. of Omaha, 480 N.W. 2d 608, 613
(Minn. 1988). See also, 3 Minnesota Civil Practice Section 2538,
at 650-51.

Defendants assert in their joint answer that Plaintiff is
barred by res judicata from bringing this action. They claim
that Plaintiff should have brought the action as a compulsory
counterclaim in federal court. This assertion is incorrect.
zoning ordinance violations are continuing in nature and a
party need not assert a counterclaim based on facts which occur
after the party serves its answer. Cochrane v. Iowa Beef
Processors, Inc., 596 F. 2d 254, 264, fn. 9 (8th Cir. 1979), cert.
denied 442 U.S. 921, 99 S.Ct. 2848, 61 L.Ed. 2d 290 (1979). See
also, 6 Federal Practice and Procedure; Civil 2d Section 141 1, at
79-81 (1990). Plaintiff is correct that it may bring an action for
an injunction at any time in such situations and that it is not
barred by res judicata from bringing this action.

In the federal action, Defendants in this action brought
Suit against the city alleging its zoning ordinance violated their

A38

RL

rights under the First and Fourteenth Amendments of the
United States Constitution. Defendant The Amusement
Center, Inc.’s business at that time consisted of the sale of
adults only books and magazines, the sale of sexual novelties,
and coin-operated picture viewing machines for viewing adults
only motion pictures on the premises. Schneider, 800 F. Supp.
at 817-18. Judge Murphy upheld the ordinance. After the
Eighth Circuit Court of appeals affirmed Judge Murphy’s
decision on December 30, 1993, the video booths were closed to
_the public. Defendants now allege that since the business has
changed, the ordinance is overly broad and therefore
unconstitutional. Memorandum of Points and Authorities in
Opposition to Plaintiffs Motion for Summary Judgment, at Il.

The United States Supreme Court has established a
three-part analysis to determine whether a statue or ordinance
regulating adult entertainment business is constitutional. City
of Renton v. Playtime Theaters, Inc., 475 U.S. 41, 106 S.Ct. 925,
89 L.Ed. 29 (1986); Young v. American Mini Theaters, 427 U.S.
50, 96 S.Ct. 2440, 49 L.Ed. 2d 319 (1976). First, a court must
determine whether the statute or ordinance is content-neutral
time, place, and manner restriction. Then, a court must
determine whether the government has an important or
substantial interest in regulating adult entertainment business
which is unrelated to the suppression of free speech. and
finally, a court must determine whether the incidental
restriction on First Amendment freedoms is no greater than
essential to further the government’s interest. Janra Enterprises,
Inc. v. City of Reno, 818 F. Supp. 1361 (D. Nev. 1993), citing
Tollis, Inc. v. San Bernardino County, 827 F. 2d 1329, 1331 (9th
Cir. 1987). See also Renton, 475 U.S. at 47, 106 S.Ct. at 928. See
further, Alexander v. City of Minneapolis, 928 F. 2d 278, 282-284
(8th cir. 1991), reh. denied, 1991 U.S. App. LEXIS 12080 (8th
Cir. 1991) and ILQ Investments v. City of Rochester, 25 F. 3d 1413,
1416 (8th Cir. 1994), cert. denied, IS S.Ct. 578, 130 L.Ed. 2d 493,
63 U.S.L.W. 3420 (1994).

In her findings, Judge Murphy held that "[t]here is no
indication that the stated purpose of the ordinance was a

A39

pretext masking a true purpose to restrain Plaintiffs’ [now
Defendants’] speech on the basis of its content" and "there is no
direct evidence that the City intended to limit the content of
Plaintiffs [now Defendants’] speech, nor is there indirect
evidence from which any such intent may be inferred.”
Schneider, 800 F. Sup. at 821-22. The Eighth Circuit held that
"[bJecause the City’s zoning ordinance limits the location of
sexually oriented businesses rather than banning them
altogether, the ordinance is analyzed as a form of time, place,
and manner regulation of protected speech." Holmberg, 12 F.
3d at 143, citing Renton, 475 U.S. at 46, 106 S.Ct. at 928.

Under the collateral estoppel doctrine, this Court must
accept the first part of the three party analysis as determined
and Defendants cannot challenge it again.

The substantial governmental interest alleged in this
case is the City of Ramsey’s interest in limiting adverse
secondary effects of adult uses. As the Eighth Circuit pointed
out, the City cannot merely give lip service to a legitimate
governmental interest, but has the burden to substantiate its
declaration that zoning regulations are needed to curb
unwanted secondary effects of sexually oriented businesses that
operate in ramsey. Holmberg, 12 F. 3d at 143. The City can
establish its interest either by showing actual adverse secondary
effects or in the alternative can under Renton rely on the
experiences of other cities in enacting its adult zoning
ordinances. Id. The First Amendment does not require a City to
conduct new studies or produce new evidence independent of
that already generated by other cities, so long as whatever
evidence the city relies on is reasonably believed to be relevant
to the problem that the city addresses. Renton, 475 U.S. at 5l-
52, 106 S.Ct. at 931. Judge Murphy found that there is no
indication that the city planner’s study was "anything but a
thorough, professional inquiry into evidence reasonably believed
to be relevant to the problem the city was addressing. The
findings adopted by the City incorporate conclusions from this
study and express a substantial governmental __ interest."
Schneider, 800 F. Supp. at 822. Judge Murphy also addressed

A40

the argument that the lack of post-enactment adverse secondary
effects in the city undermines reasonable reliance on the city
planner’s study. She rejected the argument based on
International Eateries of America, Inc. v. Broward County, 941 F.
2d 1157, 1163 (lith Cir. 1991), cert. denied, 112 S. Ct. 1294, II7
L.Ed. 2d 517 (1992). Schneider, 800 F. Supp. at 822, fn. 4.

The problem faced by this Court is that it cannot
determine from the record as it has developed thus far whether
the studies on which the City relied include adverse secondary
effects of adult bookstores without on-premises consumption.”
However, the uncontested affidavit of Mr. Robert McLaughlin
suggests that:

x All of the adult entertainment studies

relied upon by any municipality have uniformly

been of adults-only theaters; adults-only

bookstores, which have consisted of virtually 100

percent sexually explicit material and featuring

on-premises consumption of said material
through coin-operated "peep shows"; and
alcoholic and non-alcoholic bars featuring live

nude dancing.

McLaughlin Affidavit at 2 (emphasis added).

The question is whether the studies’ evidence from the
other cities is reasonably believed to be relevant to the problem
that the City of Ramsey seeks to address and whether the
ordinance is sufficiently narrowly tailored to affect only that
category of businesses shown to produce the unwanted
secondary effects. See World Wide Video v. City of Tukwila, 816

"In this respect the case at bar may be different from JLQ Investments v.
City of Rochester, 25 F. 3d 1413 (8th Cir. 1994), cert. denied, 15 S.Ct. 578, 130
L.Ed. 2d 493, 63 U.S.L.W. 3420 (1994). There the Eighth Circuit Court of
Appeals held that the studies relied on by Rochester’s Common Counsel
identified and measured adverse secondary effects linked to adult businesses
generally as well as adverse secondary effects specifically attributable to adult
bookstores. JLQ Investments, at 1417-18. In the case at bar, however, this
Court has no evidence whatsoever regarding the content of the studies that
the City of Ramsey relied upon.

A4l

P.2d 18, 21 (Wash. 1991), cert denied ll2 §.Ct. 1672, 118 L.Ed. 2d
391 (1992). See also Schad v. Mount Ephraim, 452 U.S. 61, 68
L.Ed. 671, 101 S.Ct. 2176 (1981) and Erznoznik v. City of
Jacksonville, 422 U.S. 205, 45 L.Ed. 2d 125, 95 §.Ct. 2268 (1975).
This question may have been addressed by the federal court or
if it was not, the federal court might have been able to address
it. However, there is nothing in the record for the Court’s
review that suggests either. Rather, because defendants
challenged the zoning ordinance from the position of an adult
bookstore with on-premises consumption of adults only
materials and because the studies apparently showed that other
cities have experienced adverse secondary effects from adult
bookstores with on-premises consumption of adults only
material, it seems that defendants would have been precluded
from raising the overbreadth of the provisions as a
constitutional challenge to the ordinance, since they clearly fell
within the core of the zoning ordinance provision. See Young,
427 US. at 59-60, 106 S.Ct. at 2447, 49 L.Ed. 2d at 319-320.
Judge Murphy appropriately held so when Defendants
attempted to challenge the adult use accessory provisions of the
ordinance. Schneider, 800 F. Supp. at 822, fn. 3.

Whether the studies relied on by the City of Ramsey
before enacting the zoning ordinance address the adverse
secondary effects of adult bookstores without on-premises
consumption of adults only material and whether the ordinance
is sufficiently narrowly drafted to correspond with the studies’
findings are disputed issues of material fact. These two issues
must therefore be reserved for trial and Plaintiff's motion for
Summary judgment and permanent injunction must be denied.

CONCLUSION

Defendants’ use of the property located at 6710 Highway
10 in the City of Ramsey is a prohibited use under the City’s
zoning ordinance and Plaintiff is entitled to a declaratory
judgment to that effect. further, Defendants first affirmative
defense, that the zoning ordinance is unconstitutional, can only
be rejected in part. the ordinance is a valid time, place, and
manner regulation, but the court cannot determine on the

A42

record as it has developed thus far whether the studies relied
on by the City of Ramsey before e

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386018_1752%3A1. Public record. Not legal advice.
