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M4 15:35 r:ib d1z 81S1 9749 CITY-RICHFIE .D -0-0-0 CITY ATTY Zoning establishes districts and permits certain types of uses in each such district: More particularly. certain types of businesses are considered to have a IP blighting influence on other properties as a result of Its operations. The oft cited use is the slaughter house or rendering plant More recently,the City Counc1 considered the potential blighting influences of businesses such as pawn shops and required that they be dispersed and a specified distance from each other and away from resideniiaiy zoned property. There is an overridng differential when considering adult uses. The U.S. Supreme Court has concluded that adult businesses, not dealing in obscene materials,are protected by the First Amendment Obscenity is not, however, protected and may be prosecuted under state law. • An adult use business is typically a business that generates revenue by featuring material,whether books, magazines, motion pictures or entertainment that . features or depicts sexual activities. Any regulation of the FirstAmendment guarantees of freedom of communication and expression will be narrowly construed. The Scope of regulation has been delineated in great part by the U.S. Supreme Court in two cases: Young v.American Mini Theatres, Inc. 427 US 50 (1976) - and Renton v. Playtime Theatres, Inc.475 US 41 (1986). Two other more recent Eghth Circuit cases from Minnesota are also attached: kloimberq v. City-40 of Ramsey, No.92-3897 MN,flied December 30, 1993 and ILO Investments, Inc.v City of Rochester, No.93-1925,filled June 15, 1994. Based on the above cases, any zoning regulation must be analyzed by reference to the following: 1. An adult use cannot be regulated on the basis of the materials that • they sell orate entertainment provided but only on the effed that - such businesses have on the surrounding area. 2. A municipality must conclude that such adult businesses create adverse secondary effects such as neighborhood blight, diminished property values and increase crime. 3. Municipalities need not conduct their own adverse secondary effects studies. They can rely on=dies performed by other cities, provided that the studies are reasonably related to the problem that the Cay is trying to address. 4. Ether(-Aspersed or concentration regulations may be utilized but, in either case, the City must allow a reasonable opportunity area in the City for adult uses to locate. - 2