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This case arises out of Baltimore City's efforts to regulate the operation of adult entertainment businesses, and presents two questions involving the application of such regulations to a business qualifying as a nonconforming use. The City of Baltimore

(the City) appeals from a decision of the Circuit Court for Baltimore City holding that 1) Dembo, Inc. (Dembo), appellee, did not abandon its nonconforming use by failing for two years to apply for a license to operate an adult entertainment business, and 2) the City's licensing requirements were not applicable to Dembo because it qualified as a nonconforming use. Dembo acquired

nonconforming use status because it operated a business involving partially nude dancing prior to the enactment of an ordinance prohibiting such business activity in a B-3 zone and requiring the licensing of all such businesses. was correct in concluding that We hold that the circuit court Dembo did not abandon its

nonconforming use by failing to apply for a license,

but erred in

its order that Dembo was exempt from the licensing provisions of the ordinance.1

The parties and the circuit court refer to Dembo as the entity to be licensed. Technically, the ordinance requires licensing of the person who is the owner and operator of the adult entertainment business. The owner and operator of Dembo is Donald Dembo. Because in this case there is no issue that requires a distinction between the corporation, Dembo, Inc., and the individual, Donald Dembo, we shall for convenience include Donald Dembo within the term Dembo, and refer to Dembo in the singular neuter.

1

LEGAL AND FACTUAL BACKGROUND Baltimore City Ordinance No. 443 (the Ordinance), enacted on December 15, 1994, regulates the use of "adult entertainment" businesses, "where persons appear in a state of total or partial nudity."2 The Mayor and City Council, in the Ordinance, expressed

concern for the secondary effects upon citizens' health and safety which have been found to flow from the operation of adult

entertainment businesses. Dembo's business, known as the "Gentlemen's Gold Club" (the Gold Club), is located in leased premises at 5801 Pulaski Highway, in a B-3 zoning district. Prior to enactment of the Ordinance,

there was no use known as "adult entertainment," and Dembo's operations, which included partially nude dancing, were a permitted use in a B-3 district as a "tavern, including live entertainment and dancing." Dembo operated the Gold Club under a use and

occupancy permit issued July 29, 1992. The Ordinance defines and "adult makes entertainment" the operation and of an "adult adult

entertainment

business"

entertainment business in a B-3 district unlawful, except as a nonconforming use.3 See Baltimore City Code, Art. 30,

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