People Theatres of N.Y., Inc. v. City of New York

20 A.D.3d 1, 793 N.Y.S.2d 356
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 12, 2005
StatusPublished
Cited by7 cases

This text of 20 A.D.3d 1 (People Theatres of N.Y., Inc. v. City of New York) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People Theatres of N.Y., Inc. v. City of New York, 20 A.D.3d 1, 793 N.Y.S.2d 356 (N.Y. Ct. App. 2005).

Opinion

OPINION OF THE COURT

Nardelli, J.

In these appeals, which we consolidate for disposition, we are asked to review two judgments of the Supreme Court, New York County (Louis B. York, J.) which, inter alia, granted plaintiffs’ motions for summary judgment in each action, declared the 2001 Adult Use Amendments to the 1995 Adult Use Zoning Ordinance unconstitutional, and permanently enjoined the municipal defendants from enforcing those amendments.1

Plaintiffs are “adult” establishments within the City of New York which offer various forms of sexually oriented expression, and include bookstores, theaters, video stores and eating and drinking establishments which provide live entertainment, such as nude or topless dancing.2 The municipal defendants include the City of New York, Michael R. Bloomberg, as Mayor of the City of New York, Amanda M. Burden, as Director of City Planning for the Department of City Planning of the City of New York, and Patricia Lancaster, as Commissioner of Buildings, Department of Buildings of the City of New York.

The adult entertainment industry, in the mid-1960s, began a period of rapid expansion. New York City, in 1965, had only nine such establishments within its five boroughs, but by 1993, that number had mushroomed to 177. In response, the New York City Department of City Planning (the DCP), in September 1993, undertook an “Adult Entertainment Study” (the DCP Study) to ascertain the impact of adult establishments on the quality of urban life, and to assist the City Planning Commission (the CPC) in determining whether to adopt specific zoning regulations aimed at adult property uses, a measure that had already been undertaken by a number of other municipalities.

[4]*4The DCP Study, which was released in September 1994, initially examined the impacts found, through similar studies, in nine other localities: Islip, New York; Los Angeles, California; Indianapolis, Indiana; Whittier, California; Austin, Texas; Phoenix, Arizona; the State of Minnesota; Manatee County, Florida; and New Hanover County, North Carolina. The DCP concluded that these reports indicated that adult entertainment uses have negative secondary impacts, including increased crime rates, depreciation of property values, and the deterioration of community character and the quality of urban life (see Stringfellow’s of N.Y. v City of New York, 91 NY2d 382, 390-392 [1998]).

The DCP, with respect to New York City, reviewed earlier studies of adult establishments, including: a 1977 report by the CPC; the 1983 Annual Report of the Mayor’s Office of Midtown Enforcement; a 1993 Chelsea Action Coalition and Community Board 4 study; testimony given at an October 1993 public hearing held by the Manhattan Task Force on the Regulation of Sex-Related Businesses; and an April 1994 study by the Times Square Business Improvement District. The DCP also conducted its own analysis of adult entertainment uses in six targeted study areas within New York City3 and, based upon the abundance of information before it, concluded that adult entertainment establishments, especially in areas marked by high concentrations of those businesses, produce negative secondary impacts, including increased crime rates, property value depreciation, deterioration of community character and quality of life, and a reduction in commercial activity. The DCP, therefore, recommended that adult establishments be regulated differently from other commercial establishments because of the above-cited adverse effects, and that restrictions should be placed on the proximity of adult uses to residential areas, schools, houses of worship and other adult establishments.

The New York City Council subsequently imposed a one-year moratorium on the creation or expansion of adult-use establishments, effective November 1994. In the accompanying report, it was noted that the moratorium was being adopted as a result of the DCP findings, and that the one-year period was to allow sufficient time for the DCP to develop permanent regulations. In March 1995, the DCP and the City Council Land Use Committee filed a joint application to amend the zoning law in order [5]*5to establish a permanent and comprehensive set of regulations applicable to adult establishments.

The CPC and the City Council thereafter conducted public hearings and received comments from the City’s five borough boards and 59 community boards, and on September 18, 1995, the CPC approved the proposed amendments. On October 25, 1995, following additional public hearings, the City Council adopted the permanent restrictions (Text Amendment N 950384 ZRY), effective immediately (the 1995 Ordinance).

The 1995 Ordinance does not prohibit the operation of any specific classification of establishment but, rather, has at its core a set of locational restrictions and anticoncentration provisions. An adult establishment was defined as

“a commercial establishment where a ‘substantial portion’ of the establishment includes an adult book store, adult eating or drinking establishment, adult theater, or other adult commercial establishment, or any combination thereof’ (Amended Zoning Resolution of City of New York [AZR] former § 12-10).

Commercial establishments fell within one of the foregoing categories if they “regularly feature[d]” or devoted a “substantial portion” of their stock-in-trade to entertainment or material that was “characterized by an emphasis on” “specified anatomical areas” or “specified sexual activities” (id.). The 1995 Ordinance provided that the following factors were to be considered in determining whether a facility fell within the zoning restrictions:

“(1) the amount of floor area and cellar space accessible to customers and allocated to [adult] uses; and (2) the amount of floor area and cellar space accessible to customers and allocated to [adult] uses as compared to the total floor area and cellar space accessible to customers in the establishment” (id.).

With regard to the term “substantial portion,” which was left undefined in the 1995 Ordinance, and which was to engender a fair amount of confusion, the Court of Appeals, in City of New York v Les Hommes (94 NY2d 267, 271 [1999]), noted that:

“In response to an inquiry as to what constitutes a ‘substantial portion,’ the City Department of Buildings issued Operations Policy and Procedure Notice (OPPN) No. 4/98, and several weeks later superseded it with OPPN No. 6/98. Both imposed similar [6]*6guidelines ‘to clarify the meaning of the phrase “substantial portion” ’ (Dept of Buildings, Operations Policy and Procedure Notice No. 6/98, Aug. 13, 1998). With respect to ‘adult establishments’ generally, if ‘at least 40 percent of the floor and cellar area that is accessible to customers [is] available for adult’ use, then a ‘substantial portion’ of the business is devoted to adult use within the zoning resolution. In any event, if ‘10,000 or more square feet of a commercial establishment ... is occupied by an adult use, the commercial establishment is deemed to be an “adult establishment” regardless of the overall size of the establishment.’ ”

The 1995 Ordinance also provided that adult establishments were barred from certain districts, including residential districts and districts zoned for manufacturing and commercial use, but which also permitted residential development (AZR §§ 32-01, 42-01).

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Bluebook (online)
20 A.D.3d 1, 793 N.Y.S.2d 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-theatres-of-ny-inc-v-city-of-new-york-nyappdiv-2005.