Plaintiff who provided such services to the homes or hotel rooms of paying customers challenged the licensing provision which required that he obtain a license in order to operate a home business, arguing that such a restriction is a prior restraint on expression. The Court summarily rejected plaintiff's argument that the ordinance invested unbridled discretion in the hands of a public official in determining whether to issue or deny a sexually oriented business license, stating "Quite the opposite is true. The ordinance requires the City Treasurer to issue the license upon finding that the applicant meets a set of objective, value-neutral criteria, such as being of a certain age, not being delinquent in city taxes, and not having any prior convictions for sex-related offenses."

Plaintiff also argued that the licensing ordinance lacked the necessary procedural safeguards to insure that the decision-maker will issue or deny a license within a reasonable time period. The District Court disagreed and held that the licensing scheme does not impose an unreasonable delay because the maximum period of delay imposed before the applicant could begin operating would be 70 days. The Court further determined that the ordinance provided for "prompt judicial review," allowing for a prompt determination on the merits of the appeal. According to the ordinance,"Upon filing of an appeal…the City Treasurer shall issue a temporary license to operate said sexually oriented business pending the entering of a judgment on appeal…"

Lastly, the Court rejected plaintiff's contention that the negative secondary effects of sexually oriented businesses are not present with a nude out-call dancing service, stating, "Although decreased property values and urban blight would probably not be troubling secondary effects, …opportunities to engage in prostitution are certainly increased…as are the chances that minors will be exposed to this activity…the City maintains an interest in checking the spread of sexually-transmitted diseases in this setting."