Sexually oriented businesses are frequently used for unlawful sexual activities, including prostitution. The concern over sexually transmitted diseases is a legitimate health concern of the City which *277 demands reasonable regulation of sexually oriented businesses to protect the health and well-being of the citizens, including the patrons of sexually oriented businesses. Licensing of sexually oriented businesses is a legitimate and reasonable means of ensuring that operators of sexually oriented businesses comply with reasonable regulations and that operators do not knowingly allow their businesses to be used as places of illegal sexual activity or solicitation. There is convincing documented evidence that sexually oriented businesses, because of their nature, have a deleterious effect on both the existing businesses around them and surrounding residential areas, causing increased crime and downgrading of property values. The purpose of this Ordinance is to control adverse effects from sexually oriented businesses and thereby protect the health, safety and welfare of the citizens; protect the citizens from increased crime; preserve the quality of life; preserve the property values and character of the surrounding neighborhoods and deter the spread of urban blight.
In light of the evidence concerning reported property destruction and criminal activity associated with nude entertainment establishments, we may reasonably presume that the age restrictions in the ordinance reflect a legitimate legislative judgment by the county commissioners that youths under 21 years of age should be protected from the potentially harmful consequences associated with such establishments. We are loath to second guess the county commissioner's judgment in this respect.
[I]f the ordinance ... was justified by the city's desire to prevent the psychological damage it felt was associated with viewing adult movies, then analysis of the measure as a content-based statute would [be] appropriate. The hypothetical regulation targets the direct impact of a particular category of speech, not a secondary feature that happens to be associated with that type of speech.
No such clear and present danger appears. We cannot assume that because [an applicant] was once convicted ... [the applicant will violate the law] again, or that if [the applicant] does so, criminal sanctions will not afford an adequate remedy.... To interpret the ordinance in this case to permit denial of a license because of a past conviction ... would do more than create a hazard to protected freedoms; it would suppress them all together.
If the applicant is an individual, that person must sign the application for a license. If the applicant is other than an individual, every person who has a five percent (5%) or greater interest in the business must sign the application for a license. If the applicant is a corporation, every person owning five percent (5%) or more of the outstanding shares of any class of stock, all officers, and all directors of the corporation must sign the application for a license. If the applicant is a limited liability company, every member holding a five percent (5%) or greater interest in the company and every manager must sign the application for a license.
Because officers and directors, not shareholders, are legally responsible for the management of a corporation's business, we fail to see how the city's interest in accountability is served by notifying shareholders [of violations of the ordinance]. These are management, not shareholder, concerns. If panorama booths fail to comply with the ordinance, the City is free to take appropriate enforcement action against the corporation and its officers and directors. The most obvious remedy available to the City is to put the corporation out of the panorama business by revoking its city licenses. In the end, the shareholders will be held accountable in the only way they can be held accountable—through a diminution of the value of their stock. But that will happen automatically whether or not their names are disclosed to the City. In short, there is no logical connection between the City's legitimate interest in compliance with the panorama ordinance and the rule requiring disclosure of the names of shareholders.
The licensee or any agent or employee of such licensee has violated any law of the United States, of the State of Colorado or the City of Colorado Springs when such violation occurred on the licensed premises, or relates to conduct or activity of any business required to be licensed by this Chapter.
Thus, when the applicant decides to appeal an adverse zoning administrator decision, the process of licensure is tolled by means of the applicant's decision. To conclude, as the plaintiffs do, that the voluntary choice of an applicant to appeal a zoning classification renders the licensing scheme itself unconstitutional because there is no specified time limit for the completion of such appeal process ignores the fact that the time limit specified by the Ordinance for final action by the licensing officer remains intact. The amount of time consumed by the process of judicial review of an adverse zoning administrator determination will also depend in large part on the conduct of the applicant.
Where the licensor has unlimited time within which to issue a license, the risk of arbitrary suppression is as great as the provision of unbridled discretion. A scheme that fails to set reasonable time limits on the decisionmaker creates the risk of indefinitely suppressing permissible speech.
Contemporaneously with the submission of an application for a license, the applicant shall submit the permit from the Zoning Administrator indicating that the requirements of Article 11 of Chapter 14.1 of the City Code are met unless the applicant's sexually oriented business is an existing non-conforming use under the provisions of Article 13 of Chapter 14.1 of the City Code. In the event that such permit is subject to appeal, no further action shall be taken upon such application until such appeal is finally adjudicated.
C.R.C.P. 106 and the Ordinance provide adequate safeguards to ensure that any impermissible prior restraint on a particular applicant's protected rights of free speech may be remedied promptly by judicial intervention.... The provisions of C.R.C.P. 106(a)(4)(VIII) specifically authorize a district court to accelerate or continue any action, and, as indicated, C.R.C.P. 106(a)(4)(V) authorizes a district court to stay any decision to deny, suspend, or revoke a license. These provisions are adequate to withstand the plaintiffs' facial challenge to the Ordinance.
the Court indicated that the statute, regulation, or ordinance itself must explicitly provide for prompt judicial review of the decision to suppress expressive activity.... The Court thus implied that a state's statutory or common-law mechanisms for review of administrative decisions does not satisfy the procedural requirements of Freedman.
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