At the Romantix Bookstore on Palm Avenue in Imperial Beach, there are private arcade booths, where adults can watch adult movies.
But according to a city staff report, the booths are also potential places for sexual activity including prostitution.
The report also says some people on the Internet have been offering to meet there for sex.
"We found a number of booths that were huge, bench seating, it was enough room for 12 people,"said Code Compliance Officer David Garcias.
Garcias said the booths are also completely closed in, with an inside lock, so no one outside could enter.
There was another problem. There was no city ordinance making it illegal.
But that changed Wednesday night after city leaders approved a new ordinance restricting the size of adult arcade booths so only one person can fit.
That's not all.
"It puts walls 18 inches off the floor, the locking mechanisms are going to be by key access, so an inspector will be able to key in if they have to," said Garcias.
A lawyer representing Romantix said the case could have ended up in court over privacy rights but both sides reached a fair compromise.
"I would say it was smart for both sides to sit down first and avoid litigation if at all possible," said attorney Robert DePiano.
The new ordinance was patterned after a city of San Diego ordinance. It goes into effect in 30 days.
The bookstore was also ordered to add signs warning people that sexual activity is prohibited and allow only one person in each booth.