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City of New York v. Dezer Properties, Inc.

Citations: 259 A.D.2d 116; 697 N.Y.S.2d 41; 1999 N.Y. App. Div. LEXIS 10889

Court: Appellate Division of the Supreme Court of the State of New York; October 28, 1999; New York; State Appellate Court

Narrative Opinion Summary

This case involves an appeal concerning amendments to the New York City Zoning Resolution (ZR) regarding adult establishments and the application of the '60%-40% substantial portion analysis' under section 12-10, known as the '60-40 rule.' The primary issue was whether the rule applied to single-use adult eating or drinking establishments and theaters. The City initiated legal action under the Nuisance Abatement Law following observations of adult entertainment at the defendant's club, which failed to comply with the ZR. Despite the club's attempts to modify its setup and policies, including admitting minors, the court found these efforts insincere and insufficient. A preliminary injunction was vacated and later reinstated, as the club failed to prove compliance with zoning regulations. The court ultimately ruled in favor of the City, granting a permanent injunction against the club's use as an adult establishment. The decision emphasized that the '60-40 rule' applies to such venues, and the defendants' modifications were deemed superficial. The case highlights the court's firm stance on zoning compliance and the definition of 'adult establishments' under city regulations.

Legal Issues Addressed

Application of the '60-40 Rule' under Zoning Resolution Section 12-10

Application: The case evaluates whether the '60-40 rule' regarding substantial portion analysis applies to single-use adult establishments like eating or drinking venues and theaters.

Reasoning: The key question is whether this rule applies to single-use adult eating or drinking establishments and theaters, and if the defendant's modifications to their establishment adhered to this rule.

Definition of 'Adult Establishment' under Zoning Resolution

Application: The court interprets 'adult establishment' as any venue where a significant portion is dedicated to adult content, emphasizing that no exemption exists for single-use establishments.

Reasoning: The Zoning Resolution classifies 'adult establishment' as any commercial venue where a 'substantial portion' involves adult eating or drinking. There are no exemptions for establishments that focus solely on food or drink or that are theaters.

Judicial Interpretation of Compliance Measures

Application: The court evaluated the defendant's compliance efforts with the 60-40 rule, finding them insufficient and insincere, leading to a permanent injunction against adult use.

Reasoning: The defendants did not demonstrate compliance with the 60-40 rule but rather attempted superficial measures that did not alter the fundamentally non-conforming nature of their business.

Nuisance Abatement Law Application

Application: The City employed the Nuisance Abatement Law to enjoin the defendant's adult entertainment activities due to their non-compliance with zoning regulations.

Reasoning: In September 1998, following city investigators' observations of topless and table dancing at the defendant club, the City initiated legal action under the Nuisance Abatement Law to enjoin adult entertainment at the venue.

Preliminary Injunction and Compliance with Zoning Regulations

Application: A preliminary injunction was initially issued against the defendant, who later sought to vacate it by implementing a minors-admission policy, which the court rejected.

Reasoning: The trial court eventually vacated the preliminary injunction, reasoning that there was no evidence the club previously excluded minors.