strippers turned away on 500ft rule

What is the name of your state?NY
I own a commercial building to include 5 rental units on 3.875acres. The area is zoned for adult entertainment and a company wanted to lease space from me for an adult entertainment business. In the towns codes on this type of business cannot be within 500ft of a residential home. The actual area the business wishes to rent is 508 feet away from the residential property line. The town board denied his permit based on my property line which is within the 500ft rule. I am not leasing him everything, only the location over 500ft away. Can they actually take and deny him based on my property line?

Will their customers be utilizing your property (say for parking) closer than 508 feet from that residence? Might those customers, the customers that are only there because of the adult entertainment, be closer to the shared lot line coming and going?

Those are great questions and to be honest they dont have to. There is actually a second entrance on a side road. That was not planned but could be a reality.

Sounds to me they town is enforcing the 500ft limit on any properties that exist, which includes yours.

It is most difficult in most areas, if the town is hell bent on keeping this type of business from opening, it probably won't .