Di Ma Corp. v. City of St. Cloud

562 N.W.2d 312, 1997 WL 177339
CourtCourt of Appeals of Minnesota
DecidedJune 5, 1997
DocketC2-96-1584
StatusPublished
Cited by7 cases

This text of 562 N.W.2d 312 (Di Ma Corp. v. City of St. Cloud) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Di Ma Corp. v. City of St. Cloud, 562 N.W.2d 312, 1997 WL 177339 (Mich. Ct. App. 1997).

Opinion

OPINION

DANIEL F. FOLEY, Judge *

DI MA Corporation, Malcolm, Inc., and Compel Corporation brought this action challenging the constitutionality of the City of St. Cloud’s ordinances regulating adult use establishments. In addition, in relevant part, DI MA and Malcolm sought injunctive relief against the city to prevent enforcement of the amortization ordinance, and Compel sought damages against the city because its club was temporarily closed under the ordinance and ultimately went out of business.

A trial was held before a jury, which returned a special verdict in favor of the city. The trial court concluded that the ordinances were constitutional and their enactment satisfied statutory requirements. Appellants moved for amended findings and, in the alternative, for a new trial. The court amended the basis for its conclusions of law in part, but otherwise denied the motions. This appeal followed. We affirm in part and reverse in part.

FACTS

Appellant DI MA Corporation owns and operates Adult Book & Cinema, the only adult bookstore in St. Cloud. Appellant Malcolm, Inc. owns the real estate on which the adult bookstore is located. Appellant Compel Corporation briefly operated a nonalcoholic nightclub in St. Cloud, known as the Compel Club, that featured live nude dance entertainment.

*316 In May 1991, an article in the St. Cloud State University student newspaper discussed alleged high risk sexual activities occurring in the adult bookstore’s individual viewing booths and concern about the spread of AIDS. Tim Forby, AIDS Risk Concern at Adult Book & Cinema^ U. Chron., May 7, 1991, at 1. In part as a result of the article, a proposal was brought before the city council on August 5, 1991, to enact an ordinance addressing these health problems. At an August 19, 1991 public hearing on the ordinance, a former manager at the bookstore who suffered from AIDS said he had complained about this activity for over two years, and said he probably contracted AIDS at the bookstore. A manager of the next-door fast food restaurant said it affected his business, and explained customers and employees had been solicited for sex in his parking lot. The city attorney noted he had received information from adjacent business owners and members of the gay community as to this sexual activity. Ordinance 1535, the high risk sexual conduct ordinance, was enacted, in part based on a judicially approved Minneapolis ordinance.

Later, in October 1991, the city health department inspected the adult bookstore and found it was not in compliance with the high risk sexual conduct ordinance. The health director testified at trial that he discovered what appeared to be human semen in various stages of dehydration on the benches, walls and floors of the private viewing booths. The lighting was not in compliance, the booths had doors, and some booths had holes in the walls in which a person in one booth could expose his genitals to someone in an adjacent booth, all in violation of the high risk sexual conduct ordinance.

Meanwhile, in early August 1991, planning director Patti Gartland, city attorney Jan Petersen, and the planning commission began preparation of a proposed zoning ordinance regulating adult use establishments. The planning commission considered the proposed zoning ordinance at meetings in August, September, and October 1991, and recommended a motion to add an adult use ordinance.

Evidence was received at trial as to the type of information the city relied on in addressing the ordinance. The St. Cloud police chief testified he met with planning commission members during this period and briefed them as to citizen complaints about the bookstore. The city council president testified he was aware of the citizen complaints including cruising, solicitation of males sitting in the parking lot of adjoining restaurants, and bookstore patrons using restaurant restroom facilities. He also testified that in 1989 he and all council members received a copy of the Minnesota Attorney General’s study on regulation of sexually-oriented businesses. Hubert H. Humphrey, III, Report of the Attorney General’s Working Group on the Regulation of Sexually Oriented Businesses (1989). He received another copy of the same report in 1991, and distributed it to his colleagues because it was directly related to the planning committee work. To the best of his knowledge, city council members received copies of this report as well as studies and ease law from the planning commission prior to the October 28, 1991, city council meeting.

The full St. Cloud City Council considered the proposed adult use zoning ordinance on October 14, 1991, as well as on October 28, 1991. On October 28, a public hearing was held and planning director Gartland addressed the full city council, describing the purposes and effect of the proposed ordinance change. Gartland cited and relied on results of significant litigation in which such ordinances from other cities have been upheld in court.

On November 4, 1991, the city council enacted ordinance 1545. This ordinance provides that an adult use establishment, such as an adult bookstore or adult cabaret, may be located only in 1-1, light industrial, and I-2, general industrial, districts, and in addition may not be within 1,320 lineal feet from any other adult business use or within 350 lineal feet from any hotel, motel, nursing home, housing for the elderly, daycare facility, church, school, and any residentially zoned property. The minutes refer to reliance, at least in part, on a similar Minneapolis ordinance recently upheld by the Eighth Circuit *317 Court of Appeals. The city council returned to the planning commission the issue of whether there should be a two-year amortization for existing adult uses.

When ordinance 1545 was adopted, Adult Book & Cinema was an adult bookstore within the meaning of ordinance 1545 and, at the time, was the only known adult use existing in the city. It was a nonconforming use under the terms of the ordinance in at least two respects: it was not located within an I-1 or 1-2 industrial zoning district and it was within 350 feet of a motel. Pursuant to the provisions of the general zoning ordinance governing nonconforming uses, it was allowed to remain at its current site.

The planning commission began to consider proposed ordinance 1551. That ordinance provided that nonconforming adult use establishments were permitted only until December 31,1993, when they would become unlawful. The zoning administrator was to advise such establishments of the deadline by July 1, 1992. The property owner could request an extension of the compliance date from the city council. The city council could authorize the extension upon written recommendation of the zoning administrator, where the owner established discontinuance would result in a taking without just compensation.

On November 12, 1991, the planning commission discussed the amortization provision for the nonconforming adult uses, but voted not to recommend the ordinance. Instead, it referred the issue of amortization in general to the nonconforming use subcommittee.

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Bluebook (online)
562 N.W.2d 312, 1997 WL 177339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/di-ma-corp-v-city-of-st-cloud-minnctapp-1997.