In 1977, the city of Los Angeles conducted a comprehensive study of adult establishments. The study concluded that concentrations of adult businesses are associated with higher rates of prostitution, robbery, assaults, and thefts in surrounding communities.
Accordingly, the city enacted an ordinance prohibiting the establishment, substantial enlargement, or transfer of ownership of an adult arcade, bookstore, cabaret, motel, theater, or massage parlor within 1,000 feet of another such enterprise or within 500 feet of any religious institution, school, or public park. There is evidence that the intent of the city council when enacting this prohibition was not only to disperse distinct adult establishments housed in separate buildings. The intent was also to disperse distinct adult businesses operated under common ownership and housed in a single structure.
The ordinance the city enacted directed that the distance between any two adult entertainment businesses shall be measured in a straight line from the closest exterior structural wall of each business. Subsequent to enactment, the city realized that this method of calculating distances created a loophole permitting the concentration of multiple adult enterprises in a single structure. Concerned that allowing an adult-oriented department store to replace a strip of adult establishments could defeat the goal of the original ordinance, the city council amended the code by adding a prohibition on the establishment or maintenance of more than one adult entertainment business in the same building, structure or portion thereof.
The amended ordinance defines an adult entertainment business to include an adult arcade, bookstore, cabaret, motel, theater, or massage parlor. It notes that each of these enterprises shall constitute a separate adult entertainment business even if operated in conjunction with another at the same establishment. Respondents Alameda Books, Inc., and Highland Books, Inc., are two adult establishments operating in Los Angeles. Each occupies less than 3,000 square feet and is located more than 1,000 feet from other adult establishments and 500 feet from sensitive uses.
Both respondents rent and sell sexually oriented products, including videocassettes. Both provide booths where patrons can view videocassettes for a fee. Retail sales and video booths are located in the same commercial space with only one entrance to each establishment. After a city building inspector found in 1995 that Alameda Books was operating both as an adult bookstore and an adult arcade in violation of the zoning regulations, respondents sued under 42 U.S.C. § 1983 for declaratory and injunctive relief. The District Court initially denied both motions on the First Amendment issues in count I. After respondents filed a motion for reconsideration, the District Court found that Los Angeles' prohibition on multiple-use adult establishments was not a content-neutral regulation of speech and granted summary judgment to respondents. The Court of Appeals for the Ninth Circuit affirmed on different grounds. The Supreme Court granted certiorari to clarify the standard for determining whether an ordinance serves a substantial government interest under Renton.
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