Montgomery, Alabama- An adult entertainment store wants $500,000 from the city of Montgomery for being wrongly denied a business license, a sum that public officials plan to scrutinize before deciding whether to pay.
X-Mart Adult Supercenter at 3500 Birmingham Highway is seeking what it estimates is revenue it lost between September 2004 and July 2005 after being closed by the city.
Montgomery City Council members initially closed the store for operating without a business license, then kept it closed by denying its license application. X-Mart challenged the denial in federal court, which ruled this summer in its favor on free speech grounds.
X-Mart was closed for 275 days, and city lawyers have agreed to look at the store's earnings for 275 days from its reopening, said Gary Edinger, a lawyer representing ATM Express, the store's Florida-based parent company.
"It's a lot of taxpayer money," Edinger said, referring to the $500,000 figure. "We don't foresee any problems with them paying for the lost income but nothing has been finalized."
The city confirmed no settlement has been reached.
"We'll look forward to their data and will make an official response after we've seen their numbers," said Michael Briddell, executive assistant to Mayor Bobby Bright.
Edinger said ATM Express and the city filed motions to expedite the judge's ruling in hopes of saving taxpayers money. U.S. District Judge Vanzetta McPherson also ordered the city to pay the ATM Express $24,750 in attorney fees.
The mayor, in a previous interview, said the store was not denied a business license based on the pornographic material it sold, but because it initially chose to operate without a business license.
He also said, however, the city would not welcome similar businesses with "open arms."
Back story: July 10, 2005
Though the city of Montgomery lost a 10-month legal battle this week when a federal court granted an adult store permission to operate on Birmingham Highway, the ruling could be appealed.
Miami-based ATM Express, Inc. opened the X-Mart Adult Supercenter at 3500 Birmingham Highway in September 2004.
Montgomery police officers closed the business for failure to obtain a business license.
The business challenged the city, charging that the city was violating their First Amendment rights.
The United States District Court for the Middle District of Alabama, Northern Division, agreed with the business.
On Friday the court wrote in its conclusion that "the potential evil of censorship" was a critical factor in its decision, "but that the ruling was driven by the need to protect the First Amendment."X-Mart was open for business Friday night.
"I'm very happy about the decision," said Jimmy Cassandro, director of operations for X-Mart Adult Supercenter. Bright said the store's merchandise was not welcome in the Montgomery community.
"I am horribly disappointed in this ruling. We won't welcome this business or ones like it with open arms," Bright said. "But we will comply with the law. We don't agree with this merchandise, that's why we took this matter to court.The city will explore its options to appeal the ruling, Bright said.
Cassandro said the store takes steps to ensure children are not exposed to their products.
"That's the reason we place our store away from the community, because we don't want to bother anyone," Cassandro said. X-Mart customer David Walden, 25, of Tallassee, said the city of Montgomery shouldn't be able to make decisions for people.
"I just figure people should be able to choose what they buy and shop for," Walden said. "People don't have to come in here in if you don't want to. I'm just happy to have my own choice."
