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I'm not an attorney but I think you can safely ignore that provision on First Ammendment grounds. If you were buying from a private seller perhaps they (I don't know what covenants are enforceable and what are not...for example anything about race or ethnicity would be unenforceable) could enforce it since the First Amendment prevents government intrusions on free speech but has no bearing on restrictions privately agreed to. But since you bought it from the city if they took action against you for violating the covenant I do believe they would be tossed out on their ear.

Also working in your favor is the fact that the MPAA rating is a private classification mark and while there's no doubt that some towns try to incorporate into rules affecting movie theatre operations I doubt those would stand up to a challenge since that gives a private entity a law-making function.