Under the proposal, sex-related businesses would be prohibited within 500 feet of residential areas, schools and places of worship.

Of the 177 sex-related businesses now operating, only 28 would be allowed to stay where they are.

She added, however, that the law could be applied to any new sex-related businesses that want to open in the city.

She added that it provided more than enough alternative sites for existing sex-related businesses.

But yesterday's rulings were a second day of setbacks for sex-related businesses.

The Internet also helps sales for other sex-related businesses.

Under the zoning restrictions, sex-related businesses must be in manufacturing and commercial areas designated by the city.

The city's zoning law defines a sex-related business as one where at least 40 percent of the floor space is devoted to sexual material or activity.

Mr. Daly said the city was not out to close sex-related businesses except when they are clearly fronts for prostitution or drug dealing.

Under the ordinance, passed in October 1995, sex-related businesses must be in designated manufacturing and commercial areas.