Minneapolis has shortened the window of time around Major League Baseball's July 15 All-Star Game during which other events in the city can be limited.
The American Civil Liberties Union of Minnesota has sued the city, alleging that an ordinance adopted in February is unconstitutional.
The ordinance said the city wouldn't issue permits or event licenses between July 5 and July 20 in an area that includes all of downtown Minneapolis without additional approval from MLB.
Organizers are planning a one-day festival July 19 in Minneapolis to commemorate the 80th anniversary of a deadly Teamsters strike.
The City Council on Friday approved a clarified ordinance that shortens the limits from 15 to seven, ending July 16.
An ACLU spokeswoman says the organization is discussing the change and had no comment.