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HomeMy WebLinkAboutFile 2 of 2 - Zoning Text Amendment 97-4 - Public Hearing - NATIONAL LAW CENTER FOR CHILDREN AND FAMILIES NLC SUMMARIES OF "SOB LAND USE" STUDIES CRIME IMPACT STUDIES BY MUNICIPAL AND STATE GOVERNMENTS oN HARMFUL SECONDARY EFFECTS of SEXUALLY ORIENTED BUSINESSES 1. Phoenix, Arizona 10. Oklahoma City, Oklahoma 2. Tucson, Arizona 11. Oklahoma City, Oklahoma II 3. Garden Grove, California 12. Amarillo, Texas 4. Los Angeles, California 13. Austin, Texas 5. Whittier, California 14. Beaumont, Texas 6. Indianapolis, Indiana 15. Dallas, Texas 7. Minneapolis, Minnesota 16. Houston, Texas 8. Saint Paul, Minnesota 17. Newport News,Virginia 9. Cleveland, Ohio 18. Seattle, Washington © National Law Center for Children and Families 1991,1994,1996 4103 Chain Bridge Road,Suite 410,Fairfax,Virgina 22030-4105 (703)691-4626 3000 W.MacArthur Blvd.,Suite 426,Santa Ana,California 92704-6916(714)435-9090 National Law Center Summary of the PHOENIX, ARIZONA LAND USE STUDY DATM MAY 25, 1979 1 The study examines crime statistics for 1978 comparing areas which have sexually oriented businesses with those that do not. The results showed a marked increase in sex offenses in neighborhoods with sexually oriented businesses, and also proved increases in property and violent crimes as well. This study is not unique but is unusually significant, in covering the issue of property crimes more extensively. Three study areas (near locations of sexually oriented businesses) and three control areas (with no sexually oriented businesses) were selected. The study and control areas were paired according to the number of residents, median family income, percentage of non-white population, median age of population, percentage of dwelling units built since 1950, and percentage of acreage used for residential and non-residential purposes. Three categories of criminal activity were included in the study: property crimes (burglary, larceny, auto theft), violent crimes (rape, murder, robbery, assault), and sex crimes (rape, indecent exposure, lewd and lascivious behavior,child molestation). iOn average, the number of sex offenses was 506% greater in neighborhoods where sexually oriented businesses were located. In one of the neighborhoods the number was 1,000% above the corresponding control area. Of the sex offenses, indecent exposure was the most common offense and the largest contributor to the increase of crimes in areas where sexually oriented businesses were located. Even without considering the crime of indecent exposure, the number of other sex crimes, such as rape, lewd and lascivious behavior, and child molestation, was 132% greater than in control areas without sexually oriented businesses. On average the number of property crimes was 43% greater in neighborhoods where sexually oriented businesses were located, and the number of violent crimes was 4% higher in those areas. I The Phoenix ordinance requires sexually oriented businesses to locate at least 1,000 feet from another sexually oriented business and 500 feet from a school or residential zone. Approval by the City Council and area residents can waive the 500 foot requirement. A petition signed by 51% of the residents in the 500 foot radius who do not object must be filed and be verified by the Planning Director. National IawCenter for Ctuldren and Families National Law Center Summary of the TUCSON, ARIZONA IAND USE STUDY DATED MAY 1, 1990 1 OVERVIEW: This report is a memorandum from Police Department Investigative Services to the City Prosecutor describing events and activities at "adult entertainment bookstores and establishments" that demonstrate the need for stronger ordinances. Investigations had been'in progress since 1986 following numerous complaints of illegal sexual activity and unsanitary conditions. FINDINGS: Officers found a wide variety of illegal sexual conduct at all adult businesses. At virtually every such business, employees were arrested for prostitution or obscene sex shows. Dancers were usually prostitutes where,for a price,customers could observe them performing live sex acts. At several businesses, customers were allowed inside booths with dancers and encouraged to disrobe and masturbate. Many times, dancers would require customers to expose themselves before they would perform. Underage dancers were found, the youngest being a 15 ' year old female. Within peep booths, officers found puddles of semen on the floor and walls. If customers had used tissues, these were commonly on the floor or in the hallway. On two occasions, fluid samples were collected from the booths. In the first instance, 21 of 26 samples (81%) tested positive for semen. In the second sampling, 26 of 27 fluid samples (96%) tested positive for 1 semen. "Glory holes" in the walls between adjoining booths facilitated anonymous sex acts between men. RECOMMENDATIONS: (1) The bottom of the door in peep booths must be at least 30 inches from the floor so that an occupant can be seen from the waist down when seated. (2) The booth cannot be modified nor can a chair be used to circumvent the visibility of the client. (3)Employee licensing procedures that include a police department background check should be put in effect. (4) In the event of a denied or revoked license, the requirement of a hearing before any action is taken. f �` National IawCenter for Children and Families 1 National Law Center Summary of the I GARDEN GROVE, CAUFORNIA LAND USE STUDY DATM SEnMmFR 12, 1991 OVERVIEW: This report by independent consultants summarizes statistics to determine whether adult businesses should be regulated because of their impact on the community in terms of crime, decreased property values and diminished quality of life. Statistics were measured from 1981'to 1990, and included crime data and surveys with real estate professionals and city residents. Garden Grove Boulevard, which has seven adult businesses, was selected as the study area. The study incorporated many control factors to insure accurate results. The report includes a brief legal 1 history of adult business regulation and an extensive appendix with sample materials and a proposed statute. CRIME: Crime increased significantly with the opening of an adult business, or with the expansion of an existing business or the addition of a bar nearby. The rise was greatest in "serious" offenses (termed "Part I" crimes: homicide, rape, robbery, assault, burglary, theft and auto theft). On Garden Grove Boulevard, the adult businesses accounted for 36% of all crime in the area. In one case, a bar opened less than 500 feet from an adult business, and serious crime ! within 1,000 feet of that business rose more than 300% the next year. REAL ESTATE: Overwhelmingly, respondents said that an adult business within 200-500 feet of residential and commercial property depreciates that property value. The greatest impact was on 1 single family homes. The chief factor cited for the depreciation was the increased crime associated with adult businesses. HOUSEHOLD SURVEYS: 118 calls were completed in a random sample of households in the Garden Grove Boulevard vicinity. The public consensus was that adult businesses in that area were a serious problem. Nearly 25% of the surveyed individuals lived within 1,000 feet of an adult business. More than 21% cited specific personal experiences of problems relating to these businesses, including crime, noise, litter, and general quality of life. 80% said they would want to move if an adult business opened in their neighborhood, with 60% saying they "would move" or "probably would move." 85% supported city regulation of the locations of adult businesses, with 78% strongly advocating the prohibition of adult businesses within 500 feet of a residential area, school or church. Women commonly expressed fear for themselves and their children because of adult businesses. RECOMMENDATIONS: The report concludes that adult businesses have a "real impact" on everyday life through harmful secondary effects and makes four recommendations: (1) Keep Icurrent requirement of 1,000 feet separation between adult businesses; (2) Prohibit adult establishments within 1,000 feet of residential areas; (3)Enact a system of conditional use permits for adult businesses with police department involvement in every aspect of the process; and (4) Prohibit bars or taverns within 1,000 feet of an adult business. 1 National IawCenter for Children and Families National Law Center Summary of the Los Angeles, CALIFORNIA LAND USE STUDY DATM JUNE, 1977 OVERVIEW: The Department of City Planning studied the effects of the concentration of sexually oriented businesses on surrounding properties for the years 1969-75 (a time of proliferation for such businesses). The report focuses on five areas with the greatest concentration of these businesses (compared to five "control" areas free of them), and cites data from property 1 assessments/sales, public meeting testimony, and responses from two questionnaires(one to business/residential owners within a 500 foot radius of the five study areas and a second to realtors/real estate appraisers and lenders). Crime statistics in the study areas were compared to the city as a whole. Also included: a chart of sexually oriented business regulations in eleven major cities, details of current regulations available under state/municipal law, and appendices with samples of questionnaires, letters, and other study materials. PROPERTY: While empirical data for 1969-75 did not conclusively show the relation of property valuations to the concentration of sexually oriented businesses, more than 90% of realtors, real I estate appraisers and lenders responding to city questionnaires said that a grouping of such businesses within 500-1,000 feet of residential property decreases the market value of the homes. Also, testimony from residents and business people at two public meetings spoke overwhelmingly. I against the presence of sexually oriented businesses citing fear, concern for children, loss of customers and difficulty in hiring employees at non-adult businesses, and the necessity for churches to provide guards for their parking lots. CRIME: More crime occurred in areas of sexually oriented business concentration. Compared to city-wide statistics for 1969-75, areas with several such businesses experienced greater increases in pandering (340%), murder (42.3%), aggravated assault (45.2%), robbery (52.6%), and purse snatching (17%). Street robberies, where the criminal has face to face contact with his victim, increased almost 70% more in the study areas. A second category of crime, including other assaults, forgery, fraud, counterfeiting, embezzlement, stolen property, prostitution, narcotics, iliquor laws, and gambling increased 42% more in the study areas over the city as a whole. RECOMMENDATIONS: The study recommended distances of more than a 1,000 feet separating sexually oriented businesses from each other, and a minimum of 500 feet separation of such businesses from schools, parks churches and residential areas. � National IacvCenter for Children and Families I National Law Center Summary of the VAUTTIER, CAUFORNIA IAND USE STUDY DATEDJAN AIW9, 1978 I OVERVIEW: After experiencing a rapid growth of sexually oriented businesses since 1969, the Whittier City Council commissioned a study of the effects of the businesses on the adjacent residential and commercial areas. At the time of the study, Whittier.had 13 "adult" businesses:• 6 model studios, 4 massage parlors, 2 bookstores, and 1 theater. Utilizing statistics, testimonies, and agency reports, the study compared two residential areas and four business areas over a span of 10 years (1968-1977). One residential area was near the largest concentration of adult businesses, the other had no commercial frontage but was chosen because of similar street patterns, lot sizes and number of homes. For businesses, Area 1 had six adult businesses, Area 2 had one, Area 3 had three, and Area 4 had none. 1973 was selected as the year to compare before and after effects of the adult businesses. Two chief concerns cited in the report are residential and business occupancy turnovers and increased crime. OCCUPANCY TURNOVER: After 1973, 57% of the homes in the adult business area had changes of occupancy, compared to only 19% for the non-adult business area. Residents complained of "excessive noise, pornographic material left laying about, and sexual offenders (such as exhibitionist) venting their frustrations in the adjoining neighborhood." Citizens also expressed concern about drunk drivers coming into the area. Business Area 1, with the most concentration of adult businesses (6), experienced a 134% increase in annual turnover rate. Area 3, with three adult businesses at one location, showed a 107% turnover rate. Area 2 (with 1 adult business) had no measurable change and Area 4 (with no commercial or adult businesses) experienced a 45% decrease in turnover from similar periods. CRIME: The City Council looked at the two residential areas for the time periods of 1970-73 (before adult businesses) and 1974-77 (after adult businesses). In the adult business area, criminal j activity increased 102% (the entire city had only an 8.3% increase). Certain crimes skyrocketed (malicious mischief up 700%; all assaults up 387%; prostitution up 300%). All types of theft (petty, grand, and auto) increased more than 120% each. Ten types of crime were reported for the first time ever in the 1974-77 period. RECOMMENDATIONS: The Council's report recommended a dispersal type ordinance that prohibits adult businesses closer than 500 feet to residential areas, churches and schools. Distances between adult businesses was recommended at 1,000 feet. In addition, the study. proposed a 1,000 foot separation from parks because of their use by citizens after normal working hours. Adult businesses would.be given an 18-36 month amortization period (if the change involved only stock in trade, a 90 day period was recommended). National lawCenter for Children and Families a National Law Center Summary of the INDIANAPOLIS, INDIANA LAND USE STUDY DATIDIE MN-JAM, 1984 ' OVERVIEW: After a 10 year growth in the number of sexually oriented businesses (to a total of 68 on 43 sites) and numerous citizen complaints of decreasing property values and rising crime, the city compared 6 sexually oriented business "study" areas and 6 "control" locations with each ' other and with the city as a.whole. The study and control areas had high population, low income and older residences. In order to develop a "best professional opinion," the city collaborated with Indiana University on a national survey of real estate appraisers to determine valuation effects of 1 sexually oriented businesses on adjacent properties. CRIME: From 1978-82, crime increases in the study areas were 23% higher than the control areas (46% higher than the city as a whole). Sex related crimes in the study areas increased more than 20% over the control areas. Residential locations in the study areas had a 56% greater crime increase than commercial study areas. Sex related crimes were 4 times more common in residential study areas than commercial study areas with sexually oriented businesses. REAL ESTATE: Homes in the study areas appreciated at only 1/2 the rate of homes in the control areas, and 1/3 the rate of the city. "Pressures within the study areas" caused a slight increase in real estate listings, while the city as a whole had a 50% decrease, denoting high occupancy turnover. Appraisers responding to the survey said one sexually oriented business within 1 block of residences and businesses decreased their value and half of the respondents said the immediate depreciation exceeded 10%. Appraisers also noted that value depreciation on residential areas near sexually oriented businesses is greater than on commercial locations. The report concludes: "The best professional judgment available indicates overwhelmingly that adult entertainment businesses -- even a relatively passive use such as an adult bookstore -- have a serious negative effect on their immediate environs." IRECOMMENDATIONS: Sexually oriented businesses locate at least 500 feet from residential areas, schools, churches or established historic areas. National IawCenter for Children and Families I i National Law Center Summary of the ' CLEVELAND, OHIO ]LAND USE STUDY iDATM AUGLST 24, 1977 OVERVIEW: This is a Cleveland Police Department report from Captain Carl Delau, commander of the City's vice and obscenity enforcement units and reported by him while he participated in a panel discussion at the National Conference on the Blight of Obscenity held in Cleveland July 28-29, 1977. The topic was "The Impact of Obscenity on the Total Community." Crime statistics are included for 1976 robberies and rapes. Areas evaluated were census tracts (204 in the whole city, 15 study tracts with sexually oriented businesses). At the time of the study, Cleveland had 26 pornography outlets (8 movie houses and 18 bookstores with peep shows). their location was not regulated by city zoning laws. 1 FINDINGS: For 1976, study tracts had nearly double the number of robberies as the city as a whole (40.5 per study tract compared to 20.5 for other city tracts). In one study tract with five sexually oriented businesses and 730 people, there were 136 robberies. In the city's largest tract 1 (13,587 people, zero pornography outlets) there were only 14 robberies. Of the three tracts with the highest incidence of rape, two had sexually oriented businesses and the third bordered a tract with two such businesses. In these three, there were 41 rapes in 1976 (14 per tract), nearly seven 1 times the city average of 2.4 rapes per census tract. CONCLUSION: "Close scrutiny of the figures from the Data Processing Unit on any and every phase of the degree of crime as recorded by census tracts indicates a much higher crime rate where the pornography outlets are located." 1 �. N-monal tawCenter for Children and Families National Law Center Summary of the N1INNEAPOLIS, MiNNESOTA IAND USE STUDY DATM OCFOBEx, 1980 OVERVIEW: This report is divided into two sections: the relationship of bars and crime and the impact of "adult businesses" on neighborhood deterioration. In the study, an "adult business" is one where alcohol is served (including restaurants) or a sexually oriented business (i.e., saunas, adult theaters and bookstores, rap parlors, arcades, and bars with sexually oriented entertainment). Census tracts were used as study areas and evaluated for housing values and crime rates. Housing values were determined by the 1970 census compared to 1979 assessments. Crime rates were compared for 1974-75 and 1979-80. The study is strictly empirical and reported in a formal statistical manner; therefore it is difficult for layman interpretation of the data. FINDINGS: The report concludes that concentrations of sexually oriented businesses have significant relationship to higher crime and lower property values. Other than statistical charts, no statements of actual crime reports or housing values are included in the report. thus, the lay reader has only the most generalized statements of how the committee interpreted the empirical data. RECOMMENDATIONS: First, that adult businesses be at least 1/10 mile (about 500 feet) from residential areas. Second, that adult businesses should not be adjacent to each other or even a different type of late night business (i.e., 24-hour laundromat, movie theaters). third, that adult businesses should be in large commercial zones in various parts of the city (to aid police patrol and help separate adult businesses from residential neighborhood). The report said "policies which foster or supplement attitudes and activities that strengthen the qualities of the neighborhoods are more likely to have desired impacts on crime and housing values than simple removal or restriction of adult businesses." I f � National IawCentel-for Children and Families National Law Center Summary of the OMAHOMA CITY, OMAHOMA LAND USE STUDY ' DATm MAwH 3, 1986 ' OVERVIEW: This study contains the results of a survey of 100 Oklahoma City Real Estate Appraisers. Appraisers were given a hypothetical situation and a section to comment on the effects of sexually oriented businesses in Oklahoma City. The hypothetical situation presented a ' residential neighborhood bordering an arterial street with various commercial properties which served the area. A building vacated by a hardware store was soon to be occupied by an "adult" bookstore. No other sexually oriented businesses were in the area and no other vacant commercial ' space existed. With less than a one month response time, 34 completed surveys were received by the city. FINDINGS: 32% of the respondents said that such a bookstore within one block of the residential area would decrease home values by at least 20%. Overwhelmingly, respondents said an "adult" bookstore would negatively effect other businesses within one block (76%). The level of depreciation is greater for residents than businesses. The negative effects on property values drop sharply when the sexually oriented business is at least three blocks away. In the subjective portion, 86% of the respondents noted a negative impact of sexually oriented businesses on Oklahoma ' City. Frequent problems cited by the appraisers included the attraction of undesirable clients and businesses, safety threats to residents and other shoppers (especially children), deterrence of home sales and rentals, and immediate area deterioration (trash, debris, vandalism). CONCLUSIONS: Oklahoma City's findings supported results from other national studies and surveys. Sexually oriented businesses have a negative effect on property values, particularly residential properties. The concentration of sexually oriented businesses may mean large losses in property values. I Donal LawCenter for Children and Families National Law Center Summary of the AMARILLO, TEXAS IAND USE STUDY 1 DATW SMMMER 12, 1977 OVERVIEW: This Planning Department report cites several sources including national news magazines, "adult business" ordinances from other cities, an American Society of Planning Officials report and pertinent Supreme Court decisions. Lengthy explanation of the Miller test (with legal definitions), discussion of Young v. American Mini Theatres, and a comparison of the Boston and Detroit zoning models are included. The city defined "adult businesses" as taverns, lounges, lounges with semi-nude entertainment, and bookstores or theaters with publications featuring nudity and explicit sexual activities. (At the time, Amarillo had 3 such theaters and 4 bookstores with space for such publications). FINDINGS: The police department provided an analysis showing that areas of concentrated l "adult only" businesses had 2 1/2 times the street crime as the city average. The Planning Department concluded that concentrations of these businesses have detrimental effects on ' residential and commercial activities caused by 1) noise, lighting and traffic during late night hours 2) increased opportunity for street crimes and 3) the tendency of citizens to avoid such business areas. The study noted that lack of zoning regulations would lead to concentrations of sexually oriented businesses (causing increased crime) or more such establishments locating near . residential areas or family and juvenile oriented activity sites (churches, parks,etc.) RECOMMENDATIONS: 1) Adult businesses locate 1,000 feet from each other. No recommended distance was specified from residential zones or family/juvenile activities. 2) City development of an amortization schedule and permit/licensing mechanism. 3) City regulation of signs and similar forms of advertising. 4) Vigorous enforcement of State Penal Code, especially relating to "Harmful to Minors." 5) City amendments prohibiting minors from viewing or purchasing sexually oriented materials(enforced physical barriers). 1 I I I I I 111,a6onal IawCenter for Children and Families National Law Center Summary of the AUSTIN, TEXAS LAND USE STUDY DATm MAY 19, 1986 OVERVIEW: The report was the basis for developing an amendment to existing sexually oriented business ordinances. At the time, 49 such businesses operated in Austin, mostly bookstores, theaters, massage parlors and topless bars. The study examined crime rates, property values, and trade area characteristics. The report focused on sexually related crimes in four study areas (with sexually oriented businesses) and four control areas (close to study areas and similar). Two study areas had one sexually oriented business and the others had two such businesses. To determine the effects of these businesses on property values, the city sent surveys to 120 real estate appraising or landing ' firms (nearly half responded). For trade area characteristics, three businesses (a bookstore, theater and topless bar) were observed on a weekend night to determine customer addresses. CRIME: Sexually related crime ranged from 177-482% higher in the four study areas than the city average. In the two study areas containing two sexually oriented businesses, the rate was 66% higher than in the study areas with one such business. All control areas had crime rates near the ' city average. REAL ESTATE: 88% said that a sexually oriented business within one block of a residential area t decreases the value of the homes (33% said depreciation would be at least 20%). Respondents also said such a business is a sign of neighborhood decline, making underwriters hesitant to approve the 90-95% financing most home buyers require. They said commercial property is also negatively effected by such businesses. TRADE AREA CHARACTERISTICS: Of 81 license plates traced for owner address, only 3 lived within one mile of the sexually oriented business. 44% were from outside Austin. RECOMMENDATIONS: ly Sexually oriented businesses should be limited to highway or regionally-oriented zone districts. 2) Businesses should be dispersed to avoid concentration. 3) Conditional use permits should be required for these businesses. t National IawCenter for Childs and Families National Law Center Summary of the ' BEAUMONT, TEXAS IAND USE STUDY ' DATED SmEmER 14, 1982 ' OVERVIEW: This report by the city Planning Department encourages amendments to existing "adult business" Mlinances to include eating or drinking places featuring sexually oriented entertainment(strippers,etc.). Zoning laws required "adult uses" to locate 500 ft. from residential ' areas; 300 ft. from airy other adult bookstore, adult theater, bar,pool hall or liquor store; and 1,000 feet from a church, s,•Itool, park, or recreational facility where minors congregate. ' CRIME: Police verified that bars, taverns, and lounges (especially those with sexually oriented entertainment) are f}vquent scenes of prostitution and the sale/use of narcotics. On the whole, all criminal activity waa higher at sexually oriented businesses. ' RECOMMENDATI()NS: 1) Add eating/drinking places that exclude minors (under Texas law), unless accompanied by a consenting parent, guardian or spouse. 2) Require specific permits for ' areas zoned as Genr,;tl Commercial-Multiple Family Dwelling Districts. 3) Reduce the required distance of sexualIN oriented businesses from residential areas, schools, parks, and recreational facilities from 1,000 Io 750 ft. 1 ' � National IawCenter for Children and Families i I AL National Law Center Summary of the HOLSTON, TEXAS LAND USE STUDY ' DATM NOVEMER3, 1983 OVERVIEW: Report by the Committee on the Proposed Regulation of Sexually Oriented Businesses determining the need and appropriate means of regulating such businesses. Four public hearings provided testimony from residents, business owners, realtors, appraisers, police, 1 and psychologists. The committee and legal department then reviewed the transcripts and drafted a proposed ordinance. More hearings obtained public opinion on the proposal and the ordinance was refined for vote by the City Council. TESTIMONY: The testimony was summarized into six broad premises: (1) The rights of individuals were affirmed. (2) Sexually oriented businesses can exist with regulations that minimize their adverse effects. (3) The most important negative effects were on neighborhood protection, community enhancement, and property values. (4) Problems increased when these businesses were concentrated. (5) Such businesses contribute to criminal activities. (6) Enforcement of existing statutes was difficult. ORDINANCE: (1) 'Required permits for sexually oriented businesses (non-refundable $350 application fee). (2) Distance requirements: 750 ft. from a church or school; 1,000 ft. from other such businesses; 1,000 ft. radius from an area of 75% residential concentration. (3) Amortization period of 6 months that could be extended by the city indefinitely on the basis of evidence. (4) Revocation of permit for employing minors (under 17), blighting exterior appearance or signage, chronic criminal activity (3 convictions), and false permit information. (5) Age restrictions for entry. 1 I I I 1 National LawCenter for Children and Panukes National Law Center Summary of the SEATTLE, WASMNGTON LAND USE STUDY DATM MA>[C[i 24, 1989 OVERVIEW: The report concerns a proposed amendment to add topless dance halls to existing land use regulations for "adult entertainment establishments." Seattle had eight such dance halls (termed "adult cabarets"), six established since 1987. The study relies on reports from a number of cities, including Indianapolis,Los Angeles,Phoenix, Austin and Cleveland. FINDINGS: The increased number of cabarets resulted in citizen complaints, including phone calls, letters (from individuals and merchants associations), and several petitions with hundreds of signatures. Protests cited decreased property values; increased insurance rates; fears of burglary, vandalism, rape, assaults, drugs, and prostitution, and overall neighborhood deterioration. The report notes that patrons of these cabarets most often are not residents of nearby neighborhoods. Without community identity,behavior is less inhibited. Increased police calls to a business, sirens, and traffic hazards from police and emergency vehicles are not conducive to healthy business and residential environments. RECOMMENDATIONS: Since city zoning policy is based on the compatibility of businesses, i the report recommends that the cabarets locate in the same zones as "adult motion picture theaters." This plan allows about 130 acres for such businesses to locate throughout the city. National IawCenter for Children and Families Conducted by: PUNNING DEpART.HENT %fay 25, 1979 CITY OF c?HOENIX ADULT BUSI:7_SS - ST:.TDY INTRODUCTION .. necessary premise for regulating adult businesses by zoning is that a land use relation or i=pact results from this form of business. y.any zoning ordinances throughout =::e nation now have ?rovisions based on one of two basic approaches :o i� control the location of adult businesses. One approach, some:im.es tin o:.-: as :`:e Detroit Model, divides or prevents the concentration of adult businesses in an area. A certain distance from residential neighborhoods , churc'.;es, and schools is also ma`-ztained. Another aDproach, or the Boston Model, fosters the concen- tration of adult businesses in one area of the City. The latter a?proach has resulted In the more noteworthy problc^s. For instance , in Boston's concentrated adult :usiress area there is control of signs, upgrading of: streets and sidewalks , renovation of store fronts , and even the cor.s:_::ct_on Of a new ?ark, :his scheme has not affected the high number or sta0DIn 5 , murce=s , and -mugg'_ngs which take place in the district. I A'sc, at one ti-_e, \ew York City had concentrated adult business distr_c:s. However, the ?olice de?artment re?orted that crime complaints were alz.ost :0% higher an police posts with adult businesses, as opposed to posts without t er-. The reports showed higher rates of ra?e, robbery and assault. in one adult business concentration around Tres Square , sales _axes dropped by 43% in a two-year _eriod, due to the loss of 2.5 tir-es as many retail jobs as the rest of to City. Few York soon dropped its original adult business ordinance and adopted an, amend- ment which was ?atterned after the Detroit model. The .:.ew ordinance also went o:e step further than any other in the :ration when suggestion was made to amorti'e =_1- nor.confor-ming adult businesses v thin one year. Thus , up to 80% of tl--- existing 5e businesses were ter-pirated. _2- In the ?hoeni:t Zoning Ordinance an a=end-,ent concerning adult businesses `-2cam-2 ef-fective on :.owe=ber 3, 1977. It too is patterned aster the Detroit =odal. Briefly, the amendment in Section 417 states that : 1. No adult business is to be within 1,000 feet of any use in the same category. 2. An adult business is not permitted within 500 feet of a school or a residential zone unless approved by City Council and area residents. A petition which is signed by 51% of the residents in the 500-foot radius who do not object nust be filed and be verified by the Planning Director. After the petition is completed the City Council may consider :.giving the 500-foot requirement. Adult businesses are being treated as a land use issue by their relationship to impacts on their surrounding properties and on adjacent neighborhoods. Are the I crime impacts noted in Boston and '.New York's districts directly related to the adult business being there, or to some other societal variables in the neighbor- hood? Are they identifiable, and thus a probable cause for negative neighborhood reactions to nearby adult businesses? The Phoenix Ordinance was based on two hypotheses: first, that there are direct impacts which uniquely relate to this class of land use; and second, that there are indirect, but equally potent, attitudinal concerns which result from proximity to an adult business. Examples of the former are possible traffic congestion, unusual hours of operation, litter, noise, and criminal activity. Illustrating the latter is substantial testimony that has indicated that many neighborhood residents dislike living near an area containing an adult business. Also, financial institutions take nearby adult businesses into account when financing -3- residential properties. Finally, people 's perceptions of criminal activity is . reinforced by a greater incidence of sexual cries in areas or cc-=ercial districts containing adult businesses. In this study .e will show that there is a relationship between arrests for sexual crimes and locations of adult businesses. This relation will correlate with concerns which have been expressed by residents of nearby residential neighbor- hoods of the nature of crimes associated with adult businesses. Sex crimes appear to generate substantial fears for the safety of children, women, and neighborhoods in general. Their association with adult businesses generates negative images (as well as real or portential hazards) and results in a lowering of the desirability and livability of an impacted neighborhood. This study specifically shows that there is a higher amount of sex offenses cocmitted in neighborhoods in 2hoenix containing adult businesses as opposed to neighborhoods without them. In this project three study areas- were chosen -- neighboncc with adult businesses, and three control areas -- neighborhoods without adult businesse which were paired to certain population and lard use characteristics. The amount of property trines, violent crimes, and sex offenses from the year 1978 are compared in each study and control area. THE STUDY AND CONTROL AMAS Three different study areas containing adult businesses were selected to collect crime data. The east side of Central Avenue was chosen for the location of two study areas, while the vest side has the third study area. Appendix I describes a more detailed process of how each study area was derived. A control area has no adult business, but generally speaking, has similar popula- tion characteristics of a 'matched study area in terms of: 1. *;u.ber of residents 2. median family income 3. Percentage of non-mite population 4. xedian age of the population S. Percentage of duelling units built since 1950 6. Percentage of acreage used residentially and non-resident: Appendix II states a more detailed process of how each control are: Adult business locations are based on information furnished by the Department and verified by the Planning Depart_ent. i i i ' -5 r • TA.B LE I o THE STUDY AND CONTROL AREA LDCATIONS STUDY AREA I CONTROL AREA I Roosevelt Street - Oak Street Starting at 47th Avenue, east on Osborn Road, 16th Street - 32nd Street South on 35th Avenue, vest on Tho—c-as Road, South on 39th avenue, 1,est on Roosevelt Street North on 43rd Avenue, "West on McDowell Road, and North on 47th Avenue, to the point of beginning. STUDY AREA II CONTROL AREA II Oak Street - Osborn Road Osborn Road - Campbell avenue 32nd Street - 40th Street 32nd Street - 40th Street. STUDY AREA III CONTROL ARC III Missouri avenue - Campbell Avenue Missouri Avenue - Campbell Avenue 19th Avenue - 27th Avenue 27th Avenue - 35th Avenue Figure 1, following shows the boundaries of the three study and control areas. J I f 1 T •. �' / I •lam ,`a. �� A, ;.0 f�f •C y� Ic.C' 1— �• ut. ,V.I.L& o� IN I ■1 0l 11.[w0l l[ Av[ l ecr•w.. .ert �.0 1 I 0«TOCL &PEA S). IS7::OT safe 3) W'S Oupf ivr i [ i I-,rcu•c. I•o (MC r-00u AREA 21 o I 1 I I suvar p� ICP.%Ta01 &MCA 1) �T\Ov•, ■ i u • I I I I IS•fL07 SREA 2) OAK !ST arse •�e'i ^�-- STVOT AREA I) " ..i •i :RCCSEvELT' Si / I .� 02 p'JA•. 20 CAT ti :I • • �•. yr. ■• r r w M j F z o _ .w�.lZI \\\�� A•f[l 44 40 i i4 �, !I .•' 1 ► _ �• I •r 1 l { /wrt �Clvj so n i URE I r r , , s r' ,� , tj 41 Sz-.:d Area I contains t•.:o sq::are miles and one of the City's lar_;=r cs7ce nt=a- tior.s of adult businesses. These !.ucations are : 1702 E. l:cDowell Road; 2339 E. McDowell Road; 2',33 E. XcDowell Road, and 3155 E. :!cDo :ell Road. The catching population characteristics of Study and Control Area I are listed below in Table II. (Appendix III provides a more detailed process of how this data was derived.) TABLE II POPULATION MkRACTERISTICS OF STUDY AND CONTROL AREA I Building/ Median Land Use 7. von-t.'hite 1950-1970 Income AA— � Cor.-=ercial/Residential Study I 247, 5r. $7,675 29 31% 69% Control I 247, 937. $9,885 26 387. 627. The only substantial population characteristic differences in these two aress are in the age of homes built between 1950 and 1970. The concentrated adult business district has a little over half of its homes built after 1950. Whereas the control area has almost 937, of its housing built after 1950. Study Area II is one square mile on the east side of the City, and contains only one adult business within the square mile, at 3640 East Thorns Road. Its control area is to the north side of the Study Area. The comparison of population characteristics are shown in Table III. -7- TABLE III ' PO-FL LI T IO': CHARACTERISTICS OF STUDY A'.-D CONTROL AlEA II Building/ Median Land Use :Son-:.-hite 1950-1970 Inc ore A3e Cor—ercial/Residentia1 Study II 7-4 88.0 $10,779 36 18% 82% Control II 4.4 92.5 $12,013 38 11% 8911. Study area III also contains one adult business at 2103 'a. Ca,-:elback Road. It is one square oile located on the west side of the City. Its Control area is directly to the West. The comparison of population characteristics are shown below: TAB LE IV POPULATION C:LARACTSRISTICS OF STUDY AND CONTROL AR Z4 III Building/ Median Land Use % Non-:White 1950-1970 Income Age Cor:-_,ercial/Residential Study III 8.2 83% $9,829 29 29% 71". Control III 8.8 93% 10,559 28 28% 727. TABLE V PROPERTY , VIOLENT, AND SEX CRIINE:S IN ADULT BUSINESS ARFJIS AND TWIR CONTROL AREAS 1978 STUDY I CONTROL I STUDY II CONTROL II STUDY III CONTROL III P 01/1000 pop.* 0 0/1000 pop.* It 0/1000 0 .* / 0/1000 pop.* / //1000 pop.* f #/10CIO pop.* property 1616 130.05 1176 48.44 753 107.5 363 62.2 780 125.8 575 116.8 Crlatea violent 69 7. 16 66 4.96 21 3.0 21 3.6 39 6.29 36 7.3 Criaea Sax 127 10.22 12 .90 43 6.1 13 2.2 71 11.5 14 2.84 Offensaa Rape 14 1.13 S .38 S .71 1 .17 S .80 2 .41 Indacent 107 8.61 6 .43 37 5.3 1.0 1.7 60 9.7 9 1.83 irxpeaure L IWd A. 2 .16 0 0 1 .14 1 .17 4 .64 1 .20 NAaci Vloua CIA ('d 4 .32 1 .06 0 0 1 .17 2 .32 2 .41 llul�at ►'roperty Crimes a Burglary. Larceny, Auto Theft Vlolant Crimea a llurdar, Rape, Robbery. Assault sex of fettK:a m Rapes. Indecent Exposure. Lewd and I.Aaclvlous. Child Molest * 1978 I:aLltnnteH of I)op4114tiun at the enumeration district level were derived by Cite 1'Innnl►►i; I1011nrtment Rese4irch $.act ion. COIX TL.'S IG1:S Table V ?rooerty. Violent, and Sex Cri-es in Selected Study Areas--19731 is a tabulation of the nL=ber of cries co.-.pitted and the rate of those cri=es per 1,000 people living in each area. This table is on the following page. There appears to be a significantly greater difference between the study and control areas for sex cries than for either property or violent crimes. The following table illustrates a comparison of the ratio of the crime rate of the study area to the control area: TAB LE VI CRDEE RATES AS A PERCENTAGE OF STUDY AREA TO CONTROL AREA Study ?_operty Violent Sex Sex Crimes Area Crimes Cri-es Crimes (Less indecent Fxoosure 1 1477 1447. 11357. 358% II 173 83 277 160 III 108 86 405 178 Avera;e 143% I 1047. 606% 232. It is observed that there are about 407. more property crimes and about the same rate of violent crimes per 1,000 persons in the Study Areas as compared to the Control Areas. On the other hand there is an average of.six times the sex crime rate in the Study Areas as compared with the Control Areas. Although the majority of sex "Table V property, Violent, and Sex Crimes in Selected Study Areas--1978, :.-as derived from infor*^ation provided by the City of phoenix Police Department's Crime Analysis Unit and planning and Research Bureau. The data from these two sections was compiled by adding the number by type of crimes committed in police grids , which are quarter mile neighborhoods. Crimes are based on arrest records and do not reflect ultimate convictions. It has been assumed that conviction rates will be proportional to arrest rates. -9- crimes are Indecent Exposure, the fourth column illustrates that the re^ainder .v of the sea crimes also exhibit a significantly higher rate in the study areas. A detective from the police department stated that most indecent exposure crimes were committed on adult business premises. An example of this finding is in Study Area I. In that location, 89% of the reported indecent ex?osure crimes were coamitted at the addresses of adult businesses. .'here there is a concentration of adult businesses, such as in Study Area I, the difference in sex offense rates is most significant. As stated earlier in the report this location has four adult businesses which are less than 1000 feet a,.-ay from each other and less than 500 feet away from a residential district. There :s also a higher nu=,ber of sex offenses cor=itted--84 more crimes than in Study Area II, and 56 tore cries than in Study Area 111. Similarly, .' en compared to its Control ,area, the sex crime rate, per. 1,000 residences is over 11 times as great in Study Area I. In the rer-aining study areas, which each contain a single adult business, their rates are four and almost three tines as great. APP_:.-DLX I ESTABLISH_•'=.`'T OF S-FUDY AR=1 30r..DARI7-S The process of defining the Study Area 3oundaries was conducted in the follo::ng manner: 1. Locations of adult businesses in Phoeoix -were plotted. 2. The pri=ary concentration of adult businesses :;as identified. 3. Preliminary decision was c:ade to choose three study areas based on concentration and geographic isolation from each other. 4. Establishment of boundaries for each Study Area so that the adult businesses were approximately centered in each study area, and so that each Study Area had an area of at least one square mile, but not more than two square miles. A?PE:DLX II ESTABLIS��_r'VT OF CC`-IROL ARC BOMMARIES The process of defining the Control area boundaries was conducted in the _`ollc•.cing manner: 1. Identification of potential control areas based on the absence of adult businesses. 2. Delineation of possible Control Areas equal in size to the Study Areas. 3. Determination of population and land use characteristics of each possible control area using the sa-•e weighted-proportionality method used for the Study Areas (See Appendix III for Population Characteristi,:s and method- ology) . 4. Selection of a Control Area to catch each Study Area as closely as possible in size, number of residents, and all other selected character- i,tics listed in Appendix III. ' r r .1P?c_:.-DIX III �EVI.O0ODXY. OF ` EIGHTI':G POFLMATIO'; C'? 3.4..C:FR7I,'TTr'S OF STUDY AND CO:.—i.ROL AREAS The characteristics used in weighting the similarities bet. een the Study and Control areas were : 1. • Percenta;e non-white population 2. Percentage of dwelling units built since 1950 3. Median income 4. Median age of the population 5. Percentage of acreage used residentially Infor—nation about the above characteristics was available at the Centus Tract level. Since the Study Area boundaries did not al:-ays align with Census Tract boundaries , it necessary to "average" Census Tract values to simulate the characteristics of the Study areas. The contribution of each Census Tract characteristic value ras mathe- matically weighted, proportional to the amount of population that the Census Tact contributed to the Study area population. Number 5, or the percentage of acreage _sec residentially, was attributed proportionally to the geographic area rather thar. to population. The weighting of each Study and Control Area is tabulated in the following table : . 1 WEICiITINC OF POPUTATTON CHARACTERISTICS BY CENSUS TRACT FOR STUDY AND CONTR01. AREAS Ccna«s Z Non-IIl►Lte Z Dvt llLng Uskita Nathan FamLly Hedian Age of Z of Acreaga Tract Pou�:lo�n Built Since 1950 come Po ulation Used evidentiall study I 1115 8.'' 67 $8,741 32 82 1116 14."1 54 80191 30 80 1133 45.0 SO 56451 27 S8 1135 25.13 61 8,990 27 S7 Control I i 1100 13.0 98 10,992 24 88 i 1101 18 100 11.202 26 45 1122 25 90 8075L 27 74 L123 30 99 10,179 22 52 S126 35 72 8,361 29 68 E , Se�a� D I 1114 7.9 85 116119 33 79 1109 6.9 91 10,469 38 85 Control II I . 1109 6.9 91 10,469 38 92 1083 2.3 94 13,345 38 85 i Sc��Jy t tt 1073 7.8 82 9,996 32 74 1090 8.7 83 9,609 26 68 coitt ru l III 1072 9.2 90 10,570 27 66 109L 8.5 96 10,550 29 78 ie/t2/91 14:29 CH I L REN S L E3R- F0.t,0AT I ON 005 09:-V FROM TI�.ON C 1 TY PROSECUTOR TO 97915410 P.03 MEMORANDUM - DATE: May 1, 1990 rot Xr. William Call TRONs Micheal J. Leverens City Prosecutor ?assistant Chief of police Investigative services Ut. 4480 atWLCTt ADaLT LNTERTAINZ ZUT O"IN"CE Per your reVast, the following inrormation describes some of the events and activities that were occurring in adult entertainment bookstores and establishments that clearly demanded the need for a stronger ordinance. BACKGROUND In late 1986, the police Department, received n=arous complaints of illegal sexual activity and unsanitary conditions occurring in man of the adult entertainment bookstores and establishments. initial reports indicated that sexual activity was cocurring on the promises between customers and prostitutes, customsrs and the entertainers and between the cusstozers themselves. Through covert investigations it was soon discovered that many of these allegations wara in tact true. Investigating officers found that many o= the dancers were prostitutes who were offering private shows where customers could, for a price, observe them performing live sex acts. One or these. acts was the "double dong" show. This show ennsisted of two females using a double headed dildo aimultanaously. In a similar act dancers would perform oral sex on each other. Many times the dancers would require customers to : expose themselves before they would perform. At several of the businaegaw, customers were allowed inside the booths with the dancer and were encouraged to undress and masturbate. For a little more money, the dancers would help the customer masturbate. Waarly all of the dancers engaged in sexually explicit conversations with the customers. ror the right price custcmvrs would be allowed to tcuoh the dancer in every place that bikini panties did not cover and if enough money was paid the customers vould be allowed to insert their fingers into the vagina ;/91 14:30 CHILD-- !'S L.E"uAL F UNI)AT I UI OW "}AY-TT-1990 FROM TUCKl CITY PROSEC:JTOR '73 97'.M1%�410 P.04 ADULT ZNTZRTAINU= OPtD12MNCs page 2 of the dancer. Undercover officers also learned that cuatomeru Could hire the dancers to engage in acts of prostitution. Confidential sources indicated that, in some instat,ats, those acts actually occurred on the premises with the knowledge of the management. Investigating officers also discovered that underage females were being hired to dance nude. The youngest person known to havo been korking in one of these businesses was a fifteen year old female, Ths business that she was working at required that she dance several times an hour and perform what are known as spread shows. In these type of shows a female masturbates either manually or with a vibrator in front of a customer. In most cases those minors were in posseaRion of false identification which they were assisted in obtaining by the older dancers and, in one case, allegedly by the business zanoger. "Glory holes" were discovered in the walls of adjoining booths in some of the bookstores and adult entertainment establishments. These holes ware used by male Customary to facilitate aaxvai acts with the occupant of the neighboring booth. Additionally, certain book stores were found to " fregraanted by homosexuals and it was not unusual to have men standing around the booth area* attempting to pick eacPi otter up. it was also obvious to anyone who went into these businesses that there ram a problem with the sanitary conditions. upon enterInq the vier+ing booths, investigators often found puddles of semen on the floors and/or hanginq on the walls. If the customer did use a tissue these Meryl also usually found on the floor of the booth and in some cases in the hallways. In order to verity the accuracy of their observations, investigating officers collected samples on two separate occasions. Between April and august of 1987, investigators collected 26 random samples at eight separate adult antartainmsnt bookstores and establishMents. of these 26 samples the TPD Crime Lab reported that 21 (sli) tested positive for semen. Thu second collection occurred between october and December of 1483. This time investigators collected 27 random samples at tan separate adult entertainment bookstores and establishments. of these 27 samples, 26 (964) tasted positive for semen. At virtually every adult sntertair=ent bookstore and establishment employaas were arrested for prostitutiot or obscene :ex shows. At one of these businesses a nationally known porn star was mean on 10/02/91 14:3e CH I LDF�a1'S L.ES�L F0f�AT I(3d 0V nAY-2?-1 00 Ocieg FPOM TUCSON CITY PRC_--EnJTQR TO 9791SA10 p.05 lWVLT rWTZR?AZ)=NT ORDIN3LNCZ Page 3 stage in front of approximately twenty people inserting her tonqua and finger into the vagina and anus of another performer. At another businsss, a dancer was arrested ' after she performed oral/anal sex on another female. At the and of her show she blew air out of her vagina in order to make noise. As a result of arrangements that were easily made at these businesses, dancers Were also arrested for performing sex shows and other acts of prostitution at other locations. WZZD FOR 71 STRONGER ORDZ?"0Z During the time that we were conducting these criminal Investigations, the Health Department began invastigating the sanitary conditions in these businesses. Tha Health Departmont recognized, as we did, - that many of the activities that were occurring were made possible by the doors on the booths. when it was suggested that their removal would substantially reduce the opportunity =or people to have anonymous sex, the Adult Entertainment Industry quickly joined forces with a common goal in mind. That goal was to keep the doors on the booths. In order to demonstrate that a health ordinance was not needed these businesses began cleaning the booths and, it some instances, the entire premises. Whole businesses suddenly were painted and in some cases remodeled. signs started being displayed discouraging loitering and asking customers to place their tissues in trash cant. The whole industry began changing due to the fact that they were trying to convince the Health Dspartaant " the public that they could police themselves and that the doors did not have to cone off. In an attempt to diffuse the cry for the removal of the doors the bottom part of the doors were cut off. Shortly thereafter, City Ordinance 7221 was enacted which provided for the licensing of employees and established . regulations regarding the operation and location of adult entertainment enterprises. on November 1, 1999, Mr. Michael J. bloc=a, attorney for several of the enterprises affected by the ordinance, filed is law suit in the United states District court challenging this ordinance. Sines than a series of btetings occurred between Mr, Bloom, the Police Department, and "a City Attorney's office to determine if compromise was possible. As a result, we found that a major issue of contention was whether the doors should come off or be allo"4 to stay on. During an on•sita inspection of these booths with Mr. blocup he advised us that his clients position was t 10i02/91 14:31 CH I L T N'S LESq- FalNDAT I CH 006 05:`o FPCM TUC=1 CI'7 rRQ0.L TO 9T71�410 P.M. ADULT ZI=3tTAXX=NT C)"IIMWCr Page 4 that the doors had to stay on. He stated that his clients ware very concerned of the possibility of non-paying customers congregating around the booth of a paying customer. Mr. Bloom also indicated that his clients would be agreeable to wording in the ordinance that require. the bottom of the doors to be raised to a height that would permit all the interior floor space (of the booth) to be visible from the public hallway. The idea being that this would allow anyone to count the number of feet in the booth thereby insuring that there was only one person in there. Di9cussicna occurred with supervisors and officers of the police Department's Vice Detail pertaining to the alternatives. After these discussiona, and recognizing that although Mr. Bloom's position has some merit, our flrst recommendation was that the doors be removed from the viewing booths for the following reasons. 1. "Glory Nolan" - even if the doors ware raised to knee level, they would still provide customers with enough shielding to encourage and permit illegal sex acts to continua. 2. Xasturbation - doors encourage And facilltate this act and we do not feel the community believes this should be an acceptable or sanctioned practice in a city lievnsed business opor to the public. 3. sanitation - as previously stated random inspections of booths by investigators found some rather offensive conditions. Although there has been significant changes in the operation or these businesses, recant spot checks indicates that this problem persists. 4 . Booths - the viewing booths can be oonfigurfd in a manner that will preclude viewing by non-paying customers. S. Court Decisions - the removal of doors has been upheld by the courts. Since then several meetings with Mr. Bloom have taken place regarding this issue. on April 30, 1990, the Police Department was advised that Kr. bloom, in a letter to Mr. William call, indicated that his clients would agree to raising the bottom o= the doors to a height of 30 inches from the flooro subsequent to this compromise offer# the Police Departaent agrees to recommend that the doors ramain on the booths under the following aonditionsc ` 1 p/d2r91 14:31 CHILDREN'S LEGAL FU1,0AT I GN 009 MAY-22-1--9L' _G:00 .1 %csa4 C:T; PPQMC7JTOR IT410 Mr. ADULT ENTERTAITKK NT ORDINANCE Page 5 1 . The bottom of-the door must.be a minimum Of 30 inches from the floor, so that the occupant of the booth is visible from the waist dorm when seated. 2. The booth can not be modified nor can a Chair be used that will circumvent the intent of condition tl We feel that this compromise answers the privacy issues raised by Mr. gloom and his clients, ss well as, providinq a deterrent effect against the type of behavior that we originally cited for the doors coming off entirely. Additionally, we baliove that the proposed ordinance will also benefit the businesses that it regulates because: 1. Employee licensing obligates the Police Department to eonduCt background investigations on all applicants. Thin will ultimately result in the selection of better enployovs. 2. If the denial or revocation of a lieansa is recommended a hearing is required before any action is taken. 3. The procanca of partial doors should not reduce business. 4 .� The praa*nce of partial doors will assist the businesses in maintaining a cleaner environment and asetinq the regulation sot forth in the ordinance. It is for these raasona and the belief that the ordinance will not adversely affect thasa business establiaftents that the Police Department reconmerds the ordinance be adopted in its prsssnt form. Final Report to the City of Garden Grove: The'Relationship Between Crime and Adult Business Operations on Garden Grove Boulevard Richard McCleary, Th.D. James W. Meeker, J.D., Ph.D. IV -t - October 23, 1991 1n1 441I Cl V I1 r)1.1 t IHr) I �= !;� t- ItON t6. I. Introduction and Executive Summary This report summarizes an exhaustive series of statistical analyses conducted over a ten-month period by Richard McCleary, Ph.D., James W. Meeker, J.D., Ph.D., and five research assistants. This document presents the statistical analyses that we feel are the most relevant for the legal requirement of basing zoning restrictions on adult businesses on their negative impact on the community in terms of crime, decreased property value and decreased quality of life. It is constitutionally important that the City of Garden Grove base any restrictions on adult businesses on these so called "secondary effects" and not upon the content or moral offensiveness of such businesses. We are confident that any independent reanalysis will reach similar conclusions. In July, 1990, we were contacted by the City Manager's Office and Police Department for advice on problems related to the operation of adult businesses on Garden Grove Boulevard. After years of experience with these businesses, the Police Department bad come to suspect that their operation constituted a public y safety hazard. Partly in response to this situation, the City had adopted a zoning ordinance which restricts the location and density of adult businesses. In order to withstand constitutional scrutiny, the City needs to be able to show that the ordinance was based on the negative secondary effects such businesses have on their surroundings and not on the content of these businesses or their morality. The precise dimensions of the negative impact of these businesses were unknown, however. It was not clear that the superficial spatial relationship between crime 1 � , Table of Contents I. Introduction and Executive Summary 1 II. Legal Requirements For Controlling Adult Entertainment Businesses 7 III. Crime in Garden Grove, 1981-1990 17 Figure 1 17.1 Table 1 18.1 Figure 2 19.1.2 Figure 3 20.1 IV. The Impacted Area and the Public Safety Hazard 22 Table 2 23.1 V. Quasi-Experimental Contrasts 25 VI. Survey of Real Estate Professionals 33 VII. Household Survey 39 Vill. Conclusions 47 Appendices Real Estate Survey Frequencies A.9 Household Survey Frequencies A.13 --Real Estate Instrument Household Instrument Proposed Statute Consultants' Final Report - Page 2 and these businesses was statistically significant, for example; and if the relationship was significant, it was not clear what aspect of the operation was responsible for the hazard. The exact extent of other negative effects, such as decreased property values and reduced quality of environment for others in the area, were also unknown. In several meetings with the City Manager's Office and the Police Department during the summer and fall of 1990, and after re,iewing several studies conducted by other cities to justify zoning restrictions on adult businesses, it was decided that we would assist the City in undertaking its own study. This study would consist of an extensive statistical analysis of the City's crime data, a survey of real estate professionals, and a survey of City residents living close to the currently operating adult businesses. The study was designed to focus on the following questions: • Does crime increase in the vicinity of an adult business? If so, is the increase statistically significant and does it constitute a public safety hazard? " • Can the public safety hazard be ameliorated by requiring a minimum distance between adult businesses? What is the required minimum distance? • Are tbere 'any other practical zoning restrictions that would ameliorate the public safety hazard? • Are adult businesses associated with a decrease in property values? • Are adult businesses associated with declining quality of neighborhood? We agreed to conduct the surveys and appropriate statistical analyses under Consultants' Final Report - Page 3 three conditions: First, we could expect to have any public data held by the Police Department or the City Manager's Office; second, we could expect the full co- operation of the Police Department and the City Manager's Office; and third, the City would accept any and all findings regardless of their implications for past, present, or future policy. These conditions were accepted in principle and honored in practice. We enjoyed an extraordinary degree of autonomy and co- operation from both the Police Department and the City Manager's Office. In November, 1990, we began working with the Police Department to define the parameters of the crime data to be analyzed. The complete set of crime reports for 1981-90 were eventually downloaded and read into a statistical analysis system. The reliability of these data was ensured by comparing samples of the data downloaded from the Police Department computers with data archived at the California Bureau of Criminal Statistics and Federal Bureau of Investigation. Satisfied that the reliability of our data was nearly perfect, in-January, 1991, we began the arduous task of measuring the absolute and relative distances between If . crime events. We were eventually able to measure the relevant distances for a subset of 34,079 crimes to vithin 40 feet of the actual occurrence %1-ith 99 percent confidence. In late January through April, 1991, these distances were analyzed in various models and with various methods. The results of these analyses show that: � S Consultants' Final Report - Page 4 • Crime rises whenever an adult business opens or expands its operation and the change is statistically significant. The rise is found in the most serious crimes, especially assault, robbery, burglary, and tbeft. The rise in "victimless" crimes (drug and alcohol use, sex offenses, etc.) is also significant, though less consistent and interpretable. Given the nature and magnitude of the effects, the adult businesses on Garden Grove Boulevard constitute a serious public safety hazard. • Except for expansions, the adult businesses were in operation at their present locations on Garden Grove Boulevard prior to 1981. There has been so little.variation in spatial density since then that the relationship between density and crime cannot be determined. • Architectural devices designed to ameliorate the nuisance of these businesses have no significant impact on crime. 'When an adult business opens within 1000 feet of a tavern (or vice versa) the impact of the adult business on crime is aggravated substantially and significantly. During this same period of time, two questionnaire instruments were developed and administered. In January and February, 1991, a sample of real estate professionals was surveyed. Over nine hundred questionnaires were distributed with a response rate of fifteen percent. The results of this survey show that: k • Real estate professionals overwhelming agree that close proximity of adult businesses are associated with decreased property values for commercial, single-family residential and multiple-family residential property. • Real estate professionals associate the close proximity of adult business with increased cruse and other negative impacts on the quality of the neighborhood. During the spring and summer, 1991, a random sample of households li%ing near the adult businesses was surveyed. The results of this survey show that: Consultants' Final Report - Page S • Residents who live near adult businesses, as well as those who.live farther away, associate adult businesses with increased crime and other negative impacts on the quality of the neighborhood. • A large proportion of residents who live near adult businesses report personal negative experiences that are attributed to these businesses. . • Public support for regulation of adult businesses is overwhelming. While virtually all segments of the community voice support for all regulatory initiatives, home owners and women are the strongest supporters of regulation. Each of these findings is fully supported by every bit of data available to us and by every analysis that we conducted. The crime data and analyses underlying our four major research tasks are described in subsequent sections. Most readers will be more interested in the policy recommendations based on these analyses, however. Based on the four major components of our research, we recommend that: • Lacking any conclusive evidence on the relationship between spatial density and crime, there is no reason to change the current 1000 foot minimum spacing requirement between two adult businesses. • Given the serious public safery hazard, no adult business should operate within 1000 feet of a residence. • Where feasible, the Conditional Use Permit process should be used to ameliorate the public safety hazard. For optimal effectiveness, the Police Department must be fully involved in every aspect of this process. • Given the interaction effect, no tavern should be allowed to operate within 1000 feet of an adult business and vice versa. • The evidence clearly supports the current city ordinance in demonstrating the presence of negative secondary effects associated with location and density of adult businesses as required by current federal and state case law. c 1 Consultants' Final Report - Page 6 These recommendations are informed by an understanding of the legal foundation of the problem. After developing that foundation in the following section, we present our analyses of crime patterns in Garden Grove and two related opinion surveys. Consultants' Final Report - Page 7 II. Legal Requirements For Controlling Adult Businesses The legal control and regulation of pornography in general and "adult entertainment" businesses specifically has a long and controversial history. The 1970 Commission on Obscenity and Pornography overwhelmingly voted to eliminate all legal restrictions on use by consenting adults of sexually explicit books, magazines, pictures, and films.' While President Nixon, who appointed the Commission, was not pleased with the findings, they were consistent with the general liberal view that pornography should be tolerated as a matter of individual choice and taste unless it directly harms others.2 The Williams Committee in England supported a similar position in 1979.3 Alternatively, the 1986 Attorney General's Commission on Pornography called for a more aggressive enforcement of obscenity laws and regulation of pornography that it deemed harmful even if not legally obscene.` The current Judicial doctrinal standard that governs the difficult balance of constitutionally protected free speech and the direct regulation of pornography, is ' Report of the Commission on Obscenity and Pornography (Bantam Books, 1970. 2 See D.A. Downs, The New Politics of Pornography (University of Chicago Press 1989). 3 See W.A. Simpson, Pornography and Politics: Report of the Home Office (Waterlow Publishers, 1983)_ 'Attorney General's Commission on Pornography, Final Report (U.S. Department of Justice, 1986). Consultants' Final Report - Page 8 found in Miller v California 413 U.S. 15 (1973): (a) whether "the average person, appl)ing contemporary community standards' would find that the work, taken as a whole, appeals to the prurient interest; (b) whether the work depicts or describes, in a patently offensive way, sexual conduct specifically defined by the applicable state law; (c) whether the work, taken as a whole, lacks serious literary, artistic, political, or scientific value. (24) Despite this standard, the Attorney General's Commission concluded that: [after the Miller decision]... the nature and extent of pornography in the United States has changed dramatically, the materials that are available today are more sexually explicit and portray more violence than those available before 1970. The production, distribution and sale of pornography has become a large, well-organized and highly profitable industry.' Indeed, there is some empirical evidence to suggest that the number of prosecutions" and appeals' of obscenity convictions have declined nation"Aide.e Recently much of the local control of pornography has been of a more indirect nature given the difficulties of direct regulation and legal constraints involving First Amendment rights. One rather unique approach has been the attempt to regulate pornography as a violation of women's civil rights. This use of ' Final Report supra note 4 at 461. a The New York Obscenity Project, "An Empirical Inquiry in to the Effects of Miller v. California on the Control of Obscenity", New York University Law Review 52:843 (1977). ' R.E. Riggs, "Miller v. California Revisited: An Empirical Note," Brigham Young University Law Review 2:247 (1981). See generally Downs, supra, note 2 at 20. Consultants' Final Report - Page 9 anti-discrimination statutes was first tried by Minneapolis" but has failed to catch on in general.10 However, many municipalities have been very successful in regulating where pornographic businesses and adult entertainment businesses can locate through the use of zoning laws. Municipalities have followed two major strategies in regulating the location of.adult entertainment businesses. One approach is to concentrate adult businesses in a limited area, often called the Boston or "combat zone" approach. The other approach follows the opposite tactic by dispersing adult entertainment businesses, preventing their concentration, often called the Detroit approach." In Boston, adult entertainment businesses bad been unofficially concentrated in a specific area of the city for many years.12 This "combat Zone" was officially established as the Adult Entertainment District in 1974. It was felt that by formally restricting such businesses to an area where they were already established would prevent the spreading of these businesses to neighborhoods ' Minneapolis Code of Ordinances (MDO), Title 7, ch. 139.20, sec. 3, subd. (gg), (1). to See Downs supra note 2. " For a general discussion of these two approaches see Planning Committee of the Los Angeles City Council, Study of the Effects of the Concentration of Adult Entertainment Establishments In the City of Los Angeles, Los Angeles City Planning Department (June, 1977) (Hereinafter LA Study). 12 This discussion of Boston and the "combat zone" approach is taken from the LA Study id., at 9-10. r � Consultants' Final Report - Page 10 where they were deemed inappropriate. In addition, concentration of adult businesses might aid in the policing of such activities and would make it easier for those who wanted to avoid such businesses to do so. There has been some question as to the effectiveness of this regulatory approach, as the LA Study observed: The effectiveness and appropriateness of the Boston approach is a subject of controversy. There has been some indication that it has resulted in an increase in crime within the district and there is an increased vacancy rate in the surrounding office buildings. Due to complaints of serious criminal incidents, law enforcement activities have been increased and a number of liquor licenses in the area have been revoked. Since the "Combat Zone" and most of the surrounding area are part of various redevelopment projects, however, the change in character of the area cannot be attributed solely to the existence of "adult entertainment" businesses." The other approach that municipalities have followed is the dispersement model, sometimes called the Detroit model. In 1972 Detroit modified an "Anti- Skid Row Ordinance" to provide that subject to waiver, an adult theater could not be located within 1,000 feet of any two other "regulated uses" or within 500 feet of a residential area: Regulated uses applied to ten different kinds of business establishments including adult theaters, adult book stores, cabarets, bars, taxi dance halls and hotels. This statutory zoning approach to regulating adult business was legally cballenged and subsequently upheld by the Supreme Court as " Id., at 9. Consultants' Final Report - Page 11 constitutional in Young v. American ?Mini Theatres, Inc." This model has been adopted by numerous cities including Los Angeles and twelve other Southern California cities for controlling adult businesses." While the dispersal model has been found constitutionally valid, several subsequent court decisions have limited the way in which municipalities can adopt " 427 U.S. 50 (1976) (Hereinafter Mini Theatres). This decision is often cited as the legal basis for a dispersal approach, however the opinion appears to support the constitutionality of both the dispersal and concentration models: It is not our function to appraise the wisdom of its [Detroit's] decision to require adult theaters to be separated rather than concentrated in the same areas. In either event, the city's interest in attempting to preserve the quality of urban life is one that must be accorded high respect. Moreover, the city must be allowed a reasonable opportunity to experiment with solutions to admittedly serious problems (427 U.S. 50, 71). Indeed the Supreme Court upheld the Constitutionality of the concentration model in Renton, "Cities may regulate adult theaters by dispersing them, as in Detroit, or by effectively concentrating them, as in Renton."(infra Dote 16 at 52). " The best-single source for information on this topic is the Los Angeles City Council Planning Committee. According to the LA Study: Locally, the cities of Bellflower and Norwalk have enacted ordinances requiring adult bookstores and theaters to obtain a conditional use permit As a part of their study the City of Bellflower surveyed over 90 cities in Southern California to determine how other cities were controlling adult bookstores. Of the cities which responded to the Bel flower survey, 12 require a conditional use permit for new bookstores. The conditions for obtaining such a permit generally include dispersal and distance requirements based upon the Detroit model. Bellflower also includes. (LA Study supra note at 12). The LA Study also presents a table listing 9 cities nationally that have taken a dispersal zoning approach (Id., Table 11). t 1 Consultants' Final Report - Page 12 such zoning laws. In Renton a Playtime Theatres, Inc." the Supreme Court held such statutes cannot be enacted for the purpose of restraining speech but have to be "content-neutral" time, place, and manner regulations designed to serve a substantial governmental interest and not unreasonably limit alternative avenues of communications. In making this determination the court must look to the municipality's motivation and purpose for enacting the statute. If the statute is primarily aimed at suppressing First Amendment rights it is content based and invalid. But, if it is aimed at the "secondary effects" such businesses have on the surrounding community, it is content neutral and therefore valid. In making this determination the court must look at a number of factors, from the evidence the municipality offers to support a finding of secondary effects, to whether the zoning statute eliminates the possibility of any adult businesses within the jurisdiction of the municipality. It is the first factor this report is primarily concerned with.17 In the Mini Theatres case the Detroit Common Council made a finding that adult businesses are especially injurious to a t 16 475 U.S. 41 (1986)(Hereinafter Renton). 17 Even if an ordinance were enacted for the proper reasons the court still must determine whether the ordinance would effectively prevent any operation of an adult business within the municipality's jurisdiction, see Walnut Properties, Inc v City of Whittier 808 F.2d 1331 (1986). However this is presumably not an issue for the City of Garden Grove's ordinance because the enforcement of the ordinance would still allow the operation of adult businesses in various locations throughout the city. Consultants' Final Report - Page 13 neighborhood when they are concentrated. Ibis was supported by expert opinion evidence: In the opinion of urban planners and real estate experts who supported the ordinances, the location several such businesses in the same neighborhood tends to attract an undesirable quantity and quality of transients, adversely affects property values, causes an increase in crime, especially prostitution, and encourages residents and businesses to move elsewhere.1° The courts have not been very explicit in terms of the exact type and nature of the evidence of "secondary effects" that is required to uphold zoning ordinances regulating the location of adult businesses. On the one hand, failure to introduce any evidence linking secondary effects writh the way the ordinance is enforced, is insufficient.19 On the other hand, a complete independent analysis of secondary effects in each jurisdiction that enacts such laws is not necessary. In Renton20 the Supreme Court upheld an ordinance without benefit of an independent analysis. a 1e Mini Theatres supra note 18 at 55. 19 "Here, the County has presented no evidence that a single showing of an adult movie would have any harmful secondary effects on the community. The County has thus failed to show that the ordinance, as interpreted by the County to include any theater that shows an adult movie a single time, is sufficiently "'narrowly tailored' to affect only that category of theatres shown to produce the unwanted secondary effects." Renton 106 S.Ct. at 931. Nor do we see bow the County could make such a showing, since it is difficult to imagine that only a single showing ever, or only one in a year,would have auy meaningful secondary effects." Tollis, Inc. v. San Bernardino County 827 F.2d 1329,1333 (9th Cir. 1987). 20 City of Renton v. Playtime Theatres, Inc., 475 U.S. 41, 106 S.Ct. 925, 89 L.Ed.2d 2a(1986). Consultants' Final Report - Page 14 In this case the City of Renton relied heavily upon the study of secondary effects done in Seattle to justify its ordinance. The Court held: We hold that Renton was entitled to rely on the experiences of Seattle and other cities, and in particular on the "detailed findings" summarized in the Washington Supreme Court's [Northend Cinema, Inc. v. Seattle, 90 Wash. 2d 709, 585 P. 2d 1153 (1978)] opinion, in enacting its adult theater zoning ordinance. The First Amendment does not require a city, before enacting such an ordinance, to conduct new studies or produce evidence independent of that already generated by other cities, so long as whatever evidence the city relies upon is reasonably believed to be relevant to problem that the city addresses."'-' The Los Angeles City Planning Department conducted a study of secondary effects in 1977,2' to support a spacing ordinance similar to the Detroit dispersal model. Since Garden Grove's ordinance follows the same model it may have been legally sufficient for the City of Garden Grove to rely on the Los Angeles study. However, the Los Angeles study is 19 years old and it could be argued that because of its size, population structure, real estate market, and other municipal characteristics, Los Angeles is not a good comparison city for Garden Grove. Like the.LA Study' this analysis relies on a multimethodological approach to analyze secondary effects associated with the location of adult businesses. Both an analysis of crime rates and surveys were conducted to analyze secondary effects 21 Renton, id., 475 U.S. 41 at 51-52. u See LA Study supra note 23 Supra note 11. Consultants' Final Report - Page 15 associated with such businesses. Unlike the LA Study this analysis is more sophisticated in several respects. The LA Study examined the secondary effect of crime rates and their association with adult business by comparing the crime rates of Hollywood area (which bad a large concentration of adult businesses during the period studied, 'November 1975 and December 1976) to the rest of the city." This analysis did show there was an increase in both Part I2-5 and Part II2' crimes associated with the Hollywood area and its higher concentration of adult businesses in comparison to the rest of the city. Nklile supporting the presence of secondary effects, the analysis has several disadvantages for supporting a dispersion regulation model in Garden Grove. The City of Garden Grove is not very similar to Hollywood, either in municipal character, or concentration and type of adult businesses.27 More 24 The analysis presented in the LA Study was taken from a report prepared by the Los Angeles City Police Department, The Impact of Sex Oriented Businesses on the Police Problems in the City of Los Angeles. 23 Part I crimes include homicide, rape aggravated assault, robbery, burglary, larceny, and vehicle theft 26 Part II crimes include other assaults, forgery and counterfeiting, embezzlement and fraud, stolen property,prostitution, narcotics, liquor law violations, gambling, and other miscellaneous misdemeanors. 2' Hollywood in 1969 bad 1 bard-core motel, 2 bookstores, 7 theaters, and 1 massage parlor/scam joint; in 1975 had 3 hard-core motels, 18 bookstores, 29 theatres, and 38 massage parlor/scam joints.(see LA Study, Table VI, p. 54). Garden Grove on the other hand only has seven bookstores and adult video stores. Consultants' Final Report - Page 16 importantly, Garden Grove seeks to control adult businesses in terms of their location to schools, churches, and residences (200 feet) and in relation to each other (1000 feet).' To substantiate the relation between these distances and the secondary effects needed to justify the regulation, the analysis should demonstrate an association between the secondary effects and these distances. For example, if crime rates are higher within 1000 feet of an adult business than they are.around other businesses, this demonstrates a stronger association between secondary effects and the regulation designed to control them. Vv'hile areas of a city that have higher concentrations of adult businesses may have higher crime rates than other areas, this gives little support for regulation of specific distances between adult business and other land uses. The LA Study also presents the analyses of two questionnaires, one to businessmen and residential property owners, and one to realtors, real estate appraisers and lenders, to determine the effects of adult businesses. While the w questionnaires"do ask the respondents about possible negative effects, there was no distinction between the negative effects when the distances from adult businesses varied, nor when there were two or more such business located near each other. Both of these issues are important aspects of the Garden Grove ordinance. . '� See Appendix for the Garden Grove ordinance. i Consultants' Final Report - Page 17 III. Crime In Garden Grove, 1981-1990 During the decade of our study, 1981-1990, the Garden Grove Police Department recorded 108,196 UCR Part I crimes (112 homicides, 548 rapes, 3,835 robberies, 16,677 assaults, 24,498 burglaries, 51,393 thefts, and 11,133 auto thefts) and 17,274 UCR Part II crimes (2,828 sexual offenses, 5,353 drug offenses, 5,651 alcohol offenses, 972 weapons offenses, and 2,460 disorderly conduct. Figure 1 lends perspective to these numbers. Part I crimes, which are ordinarily thought to be the "most serious" crimes, make up more than 85 percent of the total. Part II crimes, which include many of the so-called "victimless" crimes, make up less than fifteen percent of the total. Another important difference between these two categories is that, while Part I crimes almost always begin with a citizen complaint, Part II crimes may result from proactive policing. For this reason, Part II crimes have turned out to be less interesting to this study. Although we find a strong relationship between the distribution of Part II crimes (especially Part II sex offenses) and the locations of adult businesses, we cannot draw a valid causal relationship from this finding. Part I crimes are quite another matter. As shown in Figure 1, Part I crimes can be divided further into Personal and Property categories. Personal crimes (or crimes against the person) account for approximately twenty percent of the Part I total. Seventy-eight percent of Personal crimes are assaults; 18 percent are robberies, three percent are rapes, Consultants' Final Report - Page 17.1 Figure 1 - Distribution of Crimes in Garden Grove, 1981-1990 Total Crime Part II Part I Personal AlcO^ol k11112 =65t care it . '27d jgs 53 yea:: s s�2 Part r ProDerty:7 246: E75e° Part n Se. 2838 Part I Personal Part I Property Burglary Reoa 2°°98 5°8 A00owy 4,jtoTnel t 3835 ttt33 Mornicroe 112 Assault 10677 Tnett 51933 Consultants' Final Report - Page 18 and slightly less than one percent are homicides. Property crimes (or crimes against property) account for approximately eighty percent of the Part I total. Of these, 60 percent are thefts, 28 percent are burglaries, and 12 percent are auto thefts. Although it is tempting to think of Property crimes as less serious than Personal crimes, we caution the reader to remember that every crime has a deadly potential. Every armed robbery is a potential homicide. Every theft, burglary, or auto theft could quickly turn into a deadly confrontation. N1,11ile subsequent analyses may distinguish among the seven crimes then, we do this for didactic purposes only. In our opinion, in practice, any Part I crime poses a serious threat to public safety. With this caveat, we note that the mix of crimes in Garden Grove is not significantly different than the mix found in other California cities during the same period. This is also true of population-adjusted crime rates. _Relative to other California cities, Garden Grove has neither a "high" or "low" crime rate.2' To illustrate this point, Table 1 lists the 1985 Part I crime rates for twenty-four representative cities. Garden Grove ranks slightly above the median on homicide and auto theft, and slightly below the median on rape, robbery, assault, burglary, 29 The Garden Grove Police Department is organized into community "teams," however, and it is generally believed that this organizational structure encourages police-citizen interaction, including reporting of crimes. Other things being equal, Garden Grove is expected to have a higher crime rate than a city whose police department is structured along more traditional lines. Consultants' Final Report - Page 18.1 Table 1 - Crimes per 100,000 Population for California Cities, 1985 Homicide Rape Assault Robbery Burglary Theft Auto 7hefr Anaheim 7.3 48.8 273.8 199.6 2351. 4348. 777. Bakersfield 6.6 65.3 567.2 489.5 3651. 6649. 796. Berkeley 10.6 41.6 638.7 435.5 2836. 7971. 841. Concord 2.9 27.9 102.2 2583 1376. 4076. 430. Fremont 2.3 25.8 65.2 372.1 1354. 2969. 265. Fresno 21.2 81.8 566.9 392.7 3632. 7745. 812. Fullerton 4.9 32.3 168.2 201.5 1503. 4071. 503. Garden Grove 10.5 38.1 325.2 293.6 2159. 4040. 693. Glendale 2.9 12.2 189.1 140.2 1378. 2940. 663. Ha)-A•ard 6.4 38.5 267.1 405.0 1809. 4926. 501 Huntington Beach 2.4 22.3 100.9 147.8 1378. 2883. 450. Inglewood 28.7 112.6 1236.2 630.8 2417. 2586. 1660. Modesto 4.7 52.4 187.0 276.7 1979. 6149. 505. Ontario 9.0 76.6 327.6 713.8 2821. 4088. 699. Orange 5.5 25.2 219.8 247.1 1712. 3540. 602. Oxnard 6.5 61.9 294.8 300.4 "2008. 3984. 527. Pasadena 24.6 49.1 596.3 590.3 2262. 5110. 921. Pomona _ 25.9 92.7 907.9 1035.1 3155. 4337. 911. Riverside c - 8.2 57.4 340.0 690.5 2628. 4849. 570. San Bernadino 14.3 87.6 876.3 914.2 3783. 5295. 1127. Santa Ana 16.2 28.9 424.0 294.6 2498. 6612. 1134. Stockton 18.2 61.4 475.4 497.7 3347. 7937. 739. Sunnyvale 4.7 27.2 77.9 100.4 759. 2544. 245. Torrance 3.1 28.5 254.9 202.5 1150. 3024. 865. Source: Uniform Crime Reports, 1985 Consultants' Final Report - Page 19 and theft. None of these rankings is significantly different than the median, of course, and furthermore, the rankings fluctuate slightly from year to year. While Garden Grove has an "average" crime rate relative to other cities, however, like any other city, Garden Grove has a range of "high" and "low" crime neighborhoods. We will address this point in greater detail shortly. For the present, it is important to note that crime rates vary widely across any city. Crime rates also vary widely over time. To illustrate again, Figure 2 shows annual Part I and Part II crime totals for Garden Grove over the decade of this study, 1981-1990.30 In some cases, auto theft and assault, for example, crime appears to trend steadily upward. In other cases, particularly burglary, crime appears to trend steadily downward. In all cases, however, the trend is only apparent. In every constant spatial area that we have examined for this report, we found ten-year trends to lie well within the bounds of stochastic error. In other words, we found no statistically significant trends. For reasons too numerous, complicated, and obscure to be.discussed here, time series of crime totals drift stochastically from year to year and it is the mathematical nature of a drifting process to appear to rise or fall systematically over time. Although this phenomenon has been widely reported by statisticians since the early 19m century, it is not well so Since these are crime totals (not crime rates), Figure 2 must be interpreted cautiously. Due to annexation, in-migration, out-migration, and growth, the population of Garden Grove has changed dramatically over the last ten years. f I - Annual Crime Trends aN ON Homicide Rape Robbery .., 00 ,. N ON ... ..• o oa 6J /. .. co .� a Cd U O C 940 .I. y a.• �.�� •—.�—_t L • A / .1 N M .. N M .I N .• M t� •1 •t N /. M M •I N N N ,t• .1 .t N M M N ./ M M M ttC 1z _I (, Assault Burglary Theft ET.r..w.. T..,..w Tbw..... �` ..t U /.4 8.00 o ca ,., ten\ ., C � C . T• L. .. . 64 N M ./ N M N 81 98 M 44 Consultants' Final Report - Page 19.2 Figure 2 - Annual Crime Trends in Garden Grove, 1981-1990 r, ! � o : cn !� .i :r cfl r . - • • i i ! • S tr O i- to !� i► !! CD K l v, ! L !� ! ? ! ty • 0 Consultants' Final Report - Page 20 understood by popular media or the public. Nevertheless, each of the seven Part I crime trends is consistent with a "random" process and, hence, each is amenable to a statistical analysis. The_ ive Part II crime trends, in contrast, are not at all consistent with a "random" process. To illustrate, note that total sex offenses increase (from 320 to 480) by fifty percent from 1987 to 1988 and then decrease (from 480 to 232) by fifty percent from 1988 to 1989. Annual changes of this magnitude lie well beyond the bounds of Normal "random" variation. In fact, the anomalous 1988 total is due to a concerted enforcement effort by the Garden Grove Police Department. Lacking complete information on Part II enforcement activities during the 1981-1990 decade, we cannot attribute changes in Part II crime rates to the operation of adult businesses. Although we report effects for Part II crimes in subsequent analyses, the only internally valid effects are for Part I crimes. Figure 3 shows another type of trend. Examining the day of the week of the seven Part i crimes, a distinct pattern emerges. We see here that the occurrence of Personal crimes peaks on weekends. Conversely, Property crimes peak during midweek and are least likely to occur on weekends. Tlle basis for this pattern is well established in theory: crimes occur when the opportunity is made available to a person who is inclined to commit criminal actions. Opportunity is defined differently for Personal and Property crimes, however. Personal crimes (especially anonymous robbery and assault committed against strangers) are best Part I Personal Crimes Part I Property Crimes 4 12000 00 a a y 's .............. ....... ... 10000 0 :•1:•: :.1..1• a 3 00 C il: i iii:.; 11 ::1: I. .......... .............. .............. .... ............. ......... :::::::::: .......... .............. .............. .............. ......... .............. :::::::::::::: 0 .. .............. i:iii::::::: ...........,.. .........I;i:: .............. ............:. .....,. ......... II::: ........ .......... CO .................... ... p . �. I, ......................... .I ::11: .......... .......... .......... .......... C ..1.. .... i i 2 'sl..••1: 6 0 :is ii 0 0 .:::::.::: .......... .......... ...:::...: ...... .......... ::11 ..(.: ..I.. .ii :::::::::: 1.. .............. ....... :::::::::::::: I:' ;., ........... N ::I:I ........ ..... I 1: .............. .............. ............... ........1 .... .............. .............. ......... :::::::::: .......... .......... .......... I 1.. 1 1 .......... .......... .......... U .... ......... ............... :i::II: ....... 1 ................... ::::. ::.::.::.::.::.::.::.: ...... .............. ....... . 2000 :............... .........t:::: ::::::::::::: .............. ...... 1...... .......... .....:::: ..1... .I..I' I:.:... :::::::::: ...f..fl: .....�........ :::::::::::::: .............. ....... .............. .............. .......... ...... ....... .............. .............. .......... :::::::::: .......... I: .......... .......... ........... .............. ............... .......... i::::::: .......... .......... .......... I 1: ::::::: .............. .............. ........... ....... I.... .......... ............. '' a 0 0 b_0 Sun. Mon. Tues. Wed. Thurs. Fri. Sat. Sun. Mon. Tues. Wed. Thurs. Fri. Sat. Li. =si� Consultants' Final Report - Page 21 conducted under cover of darkness, on an intoxicated victim, in a relatively deserted public location. These conditions presumably occur on weekend nights outside bars or adult businesses. In daylight, the desired anonymity is unobtainable and the vulnerable, prospective victims are not on the street. Thus, Personal crimes are committed most often on weekend nights. The opposite pattern holds for Property crimes. These crimes, notably theft and burglary, are most often committed when the offender is least likely to encounter any witnesses. In theory, the best time to break into a residence undetected is during the weekday daytime hours when most occupants are away from home. For our purposes, however, the weekday patterns found in these data, as shown in Figure 3, are a simple confirmation of the reliability of our data. More important, perhaps, finding the same patterns in all four Personal crimes and all three Property crimes justifies collapsing Part I crimes into two broad categories. Hereafter, except where an effect or pattern varies across the Part I crimes, effects and patterns wrill be reported for Personal, Property, and Part II crime categories. Consultants' Final Report - Page 22 IV. The Impacted Area and the Public Safety Hazard At present, seven adult-oriented businesses operate on Garden Grove Boulevard. The Parry House, located at 8751 Garden Grove Boulevard, was in operation on December 16, 1980, when the City of Garden Grove annexed this area. Two other adult businesses, the Bijou and the Video Preview Rental Center, located at 8745 and 8743 Garden Grove Boulevard in the same building as the Party House, opened in March, 1986 and August, 1988 respectively. Given the proximity of these three businesses, their indi,6dual impacts on crime are confounded. Treating them as a single cluster of businesses, however, we find a significant increase in both Personal and Property crimes following the openings of the adult businesses at 8745 and 8743 Garden Grove Boulevard in March, 1986 and August, 1988. m The Adult, located at 8502 Garden Grove Boulevard, and the A to Z, located at 8192 Garden Grove Boulevard, are far enough away from the 8700 n block to allow for an assessment of individual impact. But since these businesses opened in February and May, 1980, at the very beginning of our crime data, there is no simple causal benchmark for attributing crime around these businesses to their operation. The pattern of crime around these businesses is nevertheless consistent with that hypothesis. At the other end of Garden Grove Boulevard, the Hip Pocket (12686) and the Garden of Eden (12061-5), which opened in 1971 Consultants' Final Report - Page 23 and 1977 respectively, pose the same problem. In March, 1983, however, the Garden of Eden expanded its operation from one suite to three. As in the case of the Parry House-Bijou-Ndeo Preview Rental Center complex on the other end of Garden Grove Boulevard, we find a significant rise in crime coincident with this expansion. The analyses supporting these findings will be presented shortly. In our opinion, these seven adult businesses constitute a serious and significant public safety hazard. One aspect of this hazard is apparent in Table 2. During the 1981-90 decade, 610 Garden Grove Boulevard addresses bad one or more crimes." The seven adult business addresses accounted for 239 Personal, 694 Property, and 538 Part II crimes, however, so these seven addresses accounted for 10.5 percent of the Part I and 25.5 percent of the Part II crime on Garden Grove Boulevard during the last decade. Since this disparity could occur by chance alone less than one time in one hundred, the implied difference between these seven addresses and the 603 other Garden Grove Boulevard addresses %ith one or more -N .. . 4 crimes is statistically significant. The second column of numbers in Table 2 are ranks. These numbers tell the same story but from a different perspective. As shown, three of the top ten Part I crime "hot spots" are found at the adult business addresses. Five of the top ten Past II crime "hot spots" are found at the adult " Of course, most Garden Grove Boulevard addresses had no crimes during 1981- 90. Of these addresses with at least one crime, more than 55 percent had only one crime. Consultants' Final Report - Page 23.1 Table 2 - Reported Grimes for Adult Businesses Garden Grove Boulevard Only, 1981-1990 Bookstores/Peepshows Address Personal Property Pan I Part II N Rank N Rank N Rank N Rank 8192 Garden Grove 16 19 190 5 206 5 160 1 8502 Garden Grove 25 9 93 13 118 11 52 7 8743 Garden Grove 0 7 192 7 217 4 71 8745 Garden Grove 3 91 17 98 20 112 10 70 8751 Garden Grove 12 29 116 7 128 9 94 5 12061 Garden Grove 11 34 98 10 109 15 68 6 12686 Garden Grove 6 57 173 6 179 6 150 2 Bars/Tavems 6 Address Personal Property Part I Pan II "•• N Rank N Rank N Rank N Rank 8112 Garden Grove 41 1 94 12 135 8 22 17 8284 Garden Grove 15 23 35 50 50 40 4 69 8575 Garden Grove 28 7 84 16 112 13 35 11 8801 Garden Grove 10 46 38 47 48 41 14 31 8803 Garden Grove 21 13 56 28 77 23 20 20 12045 Garden Grove 26 8 59 25 85 20 19 23 12082 Garden Grove 33 4 87 15 120 9 43 9 12761 Garden Grove 11 40 24 78 35 61 4 81 12889 Garden Grove 34 3 78 18 112 13 19 23 Consultants' Final Report - Page 24 business addresses, but this may be expected. Of course, one can argue that the relationship is noncausal or spurious; that these businesses simply moved into a neighborhood that happened to already have a high crime rate. We test and reject this hypothesis in the next section. For now, we draw attention to the Bar/Tavern addresses in Table 2. If the alternative • hypothesis is that.the Garden Grove Boulevard neighborhoods had high crime rates before the seven adult businesses moved in, we would expect to these addresses to have high crime rates as well (more so given that alcohol is served at . these addresses). On the contrary, however, we find that these addresses have generally lower crime rates than the adult business addresses. Whereas three of seven adult business addresses are in the top ten Part I crime "hot spots," only two of nine bar/tavern addresses make the top-ten list. In this sense, the seven adult business addresses on Garden Grove Boulevard constitute serious, significant public safety hazards. if Consultants' Final Report - Page 25 V. Quasi-Experimental Contrasts The address-specific crime counts in Table 2 are compelling evidence of the public safety hazard posed by the adult businesses on Garden Grove Boulevard. Simple counts do not satisfy the criterion of scientific validity, however, for there are many noncausal explanations for any set of numbers. Validity requires that a change in the operation of an adult business be followed by a change in the crime rate near the business. If the before-after change proves statistically significant, validity requires further that the same before-after change not be found in a suitable "control" area. Only after both criteria are satisfied can we state in scientifically valid terms that an adult business poses a public safety hazard. The fact that the adult businesses on Garden Grove Boulevard have operated continually for the past decade has.bad an impact on our ability to a conduct proper before/after analyses. Ideally, crime should be contrasted in a location before>and after an adult business opens. Although this is not literally possible, given the constraints of time and data, there were three major expansions of adult businesses at two existing locations and analyses of these changes confirm the picture of these businesses painted by Table 2. The quasi-experimental contrasts derived from these analyses are outlined in greater detail here. 1) In %larch, 1982, the Garden of Eden expanded from a single suite at 12061 Garden Grove Boulevard into the adjoining suites at 12063 and 12065 Consultants' Final Report - Page 26 Garden Grove Boulevard. The before/after and test/control contrasts for this change are: One Year Before One Year After Test Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 1 14 28 43 15 16 28 59 Properry Crimes 10 46 84 140 17 58 167 242 Part 11 Crimes 21 11 16 48 16 12 17 45 Control Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 0 11 22 33 1 9 28 39 Property Crimes 13 52 76 141 12 56 87 155 Pan 11 Crimes 15 23 27 65 11 22 29 62 Over the next year, Personal crimes within a 200-foot radius rose significantly compared to the preceding year.31 Also compared to the preceding year, Property crimes within a 1000 foot radius rose significantly. The effect of the expansion on Part I1 crimes was mixed and largely insignificant. To control for the possibility that these effects were due to unrelated extraneous variables, a "control" site was developed from the mean crime counts of the other six adult businesses. While crime rose in the vicinity of the Garden of Eden, however, crime remained static at the "control" site. Accordingly, we attribute the increases in Personal and Property crimes to the expansion of the adult business. 3i Hereafter, unless stated otherwise, a significant effect will imply a probability of .01 or less. Consultants' final Report - Page 27 2) In March, 1986, the Bijou opened at its present location, 8745 Garden Grove Boulevard. Since the Parry House had been operating at 8751 Garden Grove Boulevard prior to this time, the opening of Bijou was in effect an expansion. The before/after and test/control contrasts for this change are: One Year Before One Year After Test Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 2 7 21 30 6 11 30 47 Propert Crimes 3 19 94 116 11 40 113 164 Pan II Crimes 13 14 43 70 8 13 42 63 Control Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 2 10 30 42 1 11 31 43 Property Crimes 19 49 76 144 20 60 67 147 Part II Crimes 24 13 25 62 19 16 34 69 Over the next year, both Personal and Property crimes rose significantly within a 500-foot radius. The effect on Part II crimes was mixed and largely insignificant. Since no similar effect was observed at a "control" site developed from the mean crime counts of four other adult businesses, the increases are attributed to the opening of the Bijou. 3) In August, 1988, the Video Preview Rectal Center opened at 8743 Garden Grove Boulevard. Since the Parry Clouse and Bijou were already in operation, this opening too is treated as an expansion. The before/after and test/control contrasts Consultants' Final Report - Page 28 for this change are: One Year Before One Year After Test Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 0 10 51 61 4 15 46 65 Property Crimes 3 19 67 89 6 25 60 91 Pan II Crimes 11 13 16 40 34 11 25 70 Control Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 1 13 49 63 1 11 54 66 Property Crimes 5 22 74 101 4 24 68 96 Part H Crimes 9 17 22 48 28 13 20 61 In the following year, Personal crime rose significantly within a 500-foot radius, Property crime rose significantly within a 200-foot radius, and Part II crimes rose significantly within a 200-foot radius (which is to say, at the Parry House-Rijou- Video Preview Rental Center complex. No increases were observed at a "control" site developed from the mean crime counts of four other adult businesses. The consistent pattern of effects in these three cases demonstrates that the adult businesse's are indeed a public safety hazard as the data presented in the preceding section suggest. Given the nature of the operational changes in these three cases, furthermore, it appears that any expansion of an adult business will have the same effect. In light of the potentially large area of the hazard and the predatory nature of the crimes associated with the hazard, we recommend that no new adult businesses be allowed to operate within I000 feet of a residential area. Of course, virtually any increase in economic or social activity might be Consultants' Final Report - Page 29 expected to produce some increase in crime (though perhaps not so large an increase as was observed in these three cases). When an increase in crone can be attributed to a specific economic or social activity, it is reasonable to expect the responsible parties to take steps designed to ameliorate the problem. In one instance where an adult business acted to ameliorate a nuisance, however, the act had no impact on crime. 4) In September, 1988, the City installed a blockade in the alley immediately to the west of the Adult (8502 Garden Grove Boulevard) to prevent "cruising." While the blockade undoubtedly accomplished this intended purpose, there was no significant effect on Personal, Property, or Part II crimes in the vicinity of the Adult. The before/after contrasts for this change are: One Year Before One Year After Test Site 200' 500' 1000' 200' 500' 1000' a Personal Crimes 2 13 26 41 2 11 21 34 Propem• Crimes 3 19 67 89 6 25 60 91 Pan 11 Crimes •. 11 13 16 40 34 11 25 70 Although this simple architectural device had no significant impact on crime, there are undoubtedly many positive steps that an adult business can take to reduce crime in its vicinity. Since to tsar knowledge, no such steps were taken during 1981-1990, we cannot speak with authority on the likely effectiveness of the various Consultants' Final Report - Page 30 amelioration strategies.33 Nevertheless, we recommend that the City use its legitimate zoning authority to ensure that any new adult business will have a minimum impact on crime in its vicinity. Beyond this recommendation, we find strong evidence to suggest that the public safety hazard posed by adult businesses on Garden Grove Boulevard is exacerbated by proximity to a bar or tavern. This is based on twb contrasts. 5) In April, 1985, a bar opened at 8112 Garden Grove Boulevard, approximately 425 feet from the A to Z. The before/after and test/control contrasts for this change are: One Year Before One Year lifter Test Site 200' 500' 1000' 200' 500' 1000' Persona! Crimes 0 1 12 13 2 8 35 45 Properry Crimes 9 29 56 94 7 41 62 110 Part II Crimes 4 2 7 13 2 9 11 22 Control Site 200' 500' 1000' 200' 500' 1000' Persona!Crimes 0 1 14 15 0 2 14 16 Property Crimes 4 12 45 61 2 19 51 72 Part 11 Crimes 4 8 7 19 5 9 12 26 In the subsequent year, Personal crime within 1000 feet rose significantly. .33 A similar architectural device was installed at the A to Z (8192 Garden Grove Boulevard) in May, 1990. We have insufficient data to measure the effect of this inten-ention, however. Consultants' Final Report - Page 31 Although Property crime also rose, the increase was not significant. No significant change was observed at a "control" site, so the increase in Personal crime was attributed to proximity to the bar. Since analyses of crime 200, 500, and 1000 feet from 8112 Garden Grove Boulevard (the bar) show no comparable effect, the rise in Personal crime cannot be attributed to the bar alone. Rather, it must be due to an interaction between the bar and the adult business. 6) In May, 1989, a bar closed at 12889 Garden Grove Boulevard, approximately 1075 feet from the Hip Pocket. The before/after and test/control contrasts for this change are: One Year Before One Year After Test Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 2 9 13 24 2 13 9 26 Property Crimes 4 15 29 48 5 19 39 63 Parr 11 Crimes 13 22 8 43 80 26 5 111 Control Site 200' 500' 1000' 200' 500' 1000' Personal Crimes 0 2 12 14 1 1 14 16 Property Crimes 5 11 39 55 3 13 44 60 Part 11 Crimes 7 8 7 22 7 8 13 28 In the subsequent year, no significant change was observed either in Personal or Property crime; significance.not withstanding the change was in the opposite direction of what was expected. Part II crimes within 200 feet of the Hip Pocket rose precipitously and significantly. No change was observed at a "control" site. Consultants' Final Report - Page 32 Information from the Police Department suggests, however, that the increase in Part II crimes was the result of an unrelated enforcement campaign. Failure to find any significant effect in this case suggests that the interaction effect observed in the preceding case is limited to 1000 feet. While we strongly recommend that no new adult business be located within 1000 feet of a bar (and vice versa), there is no evidence of interaction at distances exceeding 1000 feet. Consultants' Final Report - Page 33 NT Survey of Real Estate Professionals Following the research model of the LA Study, an analysis of real estate professionals was conducted to determine the prevailing professional opinion of the secondary effects produced by presence of adult businesses.` The questionnaire instrument developed for this task distinguished between the effects on single-family residential property, multiple-family residential property and commercial property values. In addition, it asked for information on the effects of adult businesses within 200 feet, within 200-500 feet and the effects of two or more adult businesses within these distances. Not only were the effects on property values determined but also, effects on other issues that litigation in this area has found important such as crime, traffic, noise, safety of women and children, quality of life, rents, loitering, and the ability to attract other businesses and customers were identified. In January and February, 1991, copies of the instrument were sent to the membership list of the West Orange County Association of Realtors. Of the total 954 surveys sent out, 30 were returned with incorrect addresses. The remaining sample of 924 resulted in a return of 141 completed questionnaires. Of these 141, See the Appendix for a copy of the questionnaire instrument and a complete tabulation of responses. Consultants' Final Report - Page 34 19 where eliminated because of response bias." The final analysis is based on 122 valid responses.' The overall sample was very experienced in real estate, with 12.6 of years experience on average. This group of real estate professionals was very knowledgeable about Garden Grove real estate, with a mean experience in Garden. Grove real estate of 10.1 years. The overwhelming majority of respondents (94.3%) also said that they had an opinion on the impact of adult businesses on the community. The first set of items in our survey elicited opinions pertaining to the impact on property values by adult businesses. When adult businesses are located within 200 feet of a residential or commercial property the overwhelming opinion is that property values will be substantially decreased: 3s Througliiout the questionnaire, various questions were worded in either a negative or positive fashion. This is done to eliminate respondents that merely circle one response, such as strongly agree, to all questions. The assumption is that a respondent who is answering the questionnaire in a responsible fashion would not strongly agree with both a negative assessment of adult businesses and a positive assessment of adult businesses. M This gives a response rate of 122/924 or 13.2%. This is somewhat Iower than the response rate for the LA Study of 81/400 or 20% (p. 38). However, that report makes no mention of correction for response bias. If the 19 returned questionnaires that were eliminated for response bias bad been included in the analysis, the response rate would have been 141/924 or 15.3%. Consultants' Final Report - Page 35 Decrease No Effect Increase Single-family 97.5% 2.5% 0.0% Multiple-family 95.0% 5.0% 0.0% Commercial 81.5% 15.1% 3.3% When adult businesses are located more than 200 feet but less than 500 feet of a residential or commercial property, the effect diminishes only slightly: Decrease No Effect Increase Single-family 95.1% 4.9% 0.0% Multiple-family 92.5% 6.79b 0.8% Commercial 77.5% 20.0% 2.5% The difference between 200 and 500 feet is insignificant. Otherwise, the strongest impact occurs for single-family residences with a smaller (though still extremely large and significant) impact on commercial property. The density of adult businesses is also considered to have a negative impact on property values. When two adult businesses are located within 1000 feet of each other and within 200 to 500 feet of a property, values are expected to diminish significantly: Decrease No Effect . Increase Single-family 89.3% 9.8% 0.8% Multiple-family 86.8% 12.3% 0.8% Commercial 71.9% 27.3% 0.8% Density impacts are judged to be slightly smaller than the impacts of location per Consultants' Final Report - Page 36 se. The density impacts on property value are large and significant nevertheless and support a density regulation. For location and density alike, the overall pattern is clear. The vast majority of real estate professionals associate location of an adult business with decreased property values for single-family residential, multiple-family residential and commercial property. Clearly, these data indicate the presence of an adult business creates the secondary effect of decreased property values. A second set of items elicited opinions on the impact of adult businesses on residential neighborhood qualities. A majority of respondents felt that locating an adult business within 200 feet of a residential area would result in increased crime, traffic, litter, loitering and noise; and decreased safety for women and children, quality of life, and rents. Specific responses were: Increase No Effect Decrease CriMC 93.1% 6.0% 0.9% Traffic 97.4% 1.7% 0.9% Litter 86.2% 12.1% 1.8% Noise 72.4% 24.1% 3.6% Safety 27.4% 10.6% 61.9% Quality of Life 18.4% 6.1% 75.4% Rents 8.0% 10.6% 81.4% Loitering 85-5% 5.1% 9.4% When asked about problems in relation to commercial properties, the vast majority of respondents blamed adult businesses for the same problems cited for residential Consultants' Final Report - Page 37 properties and, also, for decreases in quality of business environment, commercial rents, ability to attract new businesses, and ability of non-adult businesses to attract customers. Specifically: Increase No Effect Decrease Crime 88.7% 9.6% 1.7% Traffic 76.7% 20.7% 2.6% Litter 83.5% 15.7% 0.9% Noise 67.0% 29.5% 3.6% Safety . 23.2% 12.5% 64.2% Business Environment 11.5% 6.3% 81.2% Commercial Rents 8.4% 15.9% 75.7% Loitering 77.0% 8.0% 15.0% Attract Businesses 7.9% 3.5% 88.5% Attract Customers 8.8% 7.0% 84.3% This general response pattern is essentially duplicated when respondents are asked about the impact of locating two or more adult businesses within 1000 feet of each other and within 200 feet of a residential or commercial area: These findings are consistent with other studies addressing the negative impact associated with the location of adult businesses." Closer analysis of response patterns reveals that respondents who felt adult businesses produce a decrease in property values also are likely to respond that these businesses have a negative effect on a neighborbood. One of the strongest associations was between decreased property values and increased crime. This is consistent with our analysis 3 See for example the LA Report. . Consultants' Final Report - Page 38 of the crime data. 1be data from this survey clearly indicates that real estate professionals feel that adult businesses are associated with decreased property values and decreased quality of neighborhood for both residential and commercial areas. Consultants' Final Report - Page 39 VII. Household Survey Results The final component of this research project was a survey of Garden Grove households to assess citizen perceptions of the issues. Toward this end, we first developed a questionnaire instrument based on instruments used in prior research but modified to reflect the particular circumstances of Garden Grove. After field- testing an early version of the instrument on a random sample of Santa Ana telephone households in March and April, 1991, a refined final version of the instrument was then administered to a stratified "random" sample of Garden Grove telephone households in the summer of 1991." To ensure that the sample included households in the proximity of problem areas, the total sample of N=250 included 200 addresses located within 1500 feet of an adult business. We cannot therefore generalize our results to the larger population without applying a set of sample weights. As it turns out, however, the survey resultslre so nearly unanimous that there is no need for complicated statistics. Interviews were conducted by Garden Grove Police Department cadets, the Consultants, and their research assistants. Standard survey research conventions were observed and independent audits were used to maintain the reliability and validity of responses. By Labor Day, 1991, each of the 250 households in the 38 A copy of the final version of this instrument and tabulated response frequencies are found in the Appendix. Consultants' Final Report - Page 40 sample had either been contacted (with a completed interview or a refusal) or ruled out of the sample.39 The final breakdow-n of the sample by interview status is: Completed 118 47.2% 80.3% Refused 29 11.6% 19.7% Language 20 8.0% No Answer 42 16.8% Invalid 41 16.4% Total 250 100.0% 100.0% Non-English speaking households could not be interviewed and this is unfortunate. Nevertheless, the number of completed interviews (118) and the completion rate. (80.3%) of this survey-(80.3%) exceed the numbers realized in household surveys. conducted in other cities. Accordingly, we believe that our results present the most accurate available picture of attitudes toward adult businesses. General Perceptions of the Problem. The general public perceives the adult businesses on Garden Grove Boulevard as a serious problem that has a real impact on daily life. While perceptions of the nature of this problem vary somewhat, virtually everyone polled associates these businesses with one or more negative "'Phone number were ruled out for any of three reasons: (1) the number was not located in Garden Grove; (2) the number was a business; or (3) no one at the nbmber spoke English. i Consultants' Final Report - Page 41 aspects of urban life. Exceptions to this rule are rare and the intensity of the feeling is greatest in neighborhood nearer Garden Grove Boulevard. Each interview began by asking the respondent to estimate the distance from his or her house to the nearest adult business. The breakdown of responses in the sample of completed interviews was: 200 Feet/I Block 12 9.8% 6.9% 500 Feet/2 Blocks 17 14.4% 4.9% 1000 Feet/3+ Blocks 54 45.8% 65.1% Don't Know 35 29.7% The accuracy of these subjective estimates was checked by asking the respondent . to name (or at least, to describe) the adult business nearest their home. In a subset of cases, we were also able to measure the distance objectively. From these data, it is clear that people are quite aware of how near or far away they live from a these businesses. We nextt,asked respondents to assess the impact that an adult entertainment business located in their neighborhood would have on series of "social problems." Specifically: I am going to ask a series of questions concerning what the impact of an adult entertainment business has, or would have, if it were located within 500 feet of your neighborhood. Please tell me if the impact would be a substantial increase, some increase, no effect, some decrease or a substantial decrease. Consultants' Final Report - Page 42 Responses to this series of questions reveal a consistent perception of the impact of adult businesses on the part of citizens. Broken down into three categories: Increase No Effect Decrease Crime 72.9% 27.1% 0.0% Traffic 60.7% 38.5% 0.9% Litter 66.7% 32.5% 0.9% Noise 62.1% 36.2% 1.8% Safety 31.9% 20.7% 47.5% Quality of Life 16.3% 23.9% 59.8% Property Values 14.5% 15.4% 70.1% Rents 15.7% 38.9% 45.3% Loitering 74.3% 22.2% 3.5% Graffiti 56.6% 41.7% 1.7% Vandalism 65.5% 32.8% 1.7% Respondents were asked if they knew of any specific incidents related to adult entertainment businesses in their neighborhoods. Twenty-five respondents (21.4%) answered affirmatively, citing specific examples of the 11 general problem areas covered in the survey instrument. Not surprisingly, most of these respondents lived relatively near an adult business. Finally, to measure the depth of public sentiment, respondents were asked whether they would move if an adult entertainment business were to move into their neighborhood. Seventy-ane respondents (61.2%) indicated that they would ("definitely" or "probably") move. Of the minority (38.8%) who indicated that they would ("definitely" or "probably") not move, nearly half qualified their answers by Consultants, Final Report - Page 43 explaining that financial considerations precluded a move for any reason. Attitudes on Regulation. With an exception to be noted, the public believes that the City should regulate adult businesses. One hundred respondents (85.5%) believe that the City should regulate the location of adult businesses. Despite the apparent laissez faire implications of the minority opinion, however, only one respondent (0.9%) believed that adult businesses should be allowed to operate in residential neighborhoods. Though perhaps disagreeing on the nature and extent of regulation then, even the most ardent opponents of regulation seem to support some type of regulation. A series of questions designed to measure support for and/or opposition to various approaches to regulation reveal a remarkable depth of support for all types of regulation. Regulatory initiatives designed to protect the integrity of residential life, for example, garner nearly unanimous support from every element of the community: 0. Would you support a law that prohibited the establishment of an adult entertainment•business within 500 feet of a residential area, school or church?. Strongly Support 92 78.0% 78.0% Support 13 11.0% 11.0% Neutral 4 3.4% 3.4% Oppose 6 5.1% 5.1% Strongly Oppose 3 2.5% 2.5% Regulatory initiatives designed to reduce the density of adult businesses, on the Consultants' Final Report - Page 44 Regulatory initiatives designed to reduce the density of adult businesses, on the other hand, while not nearly so popular, are supported by a significant majority of citizens. Would you support a law that prohibited the concentration of adult entertainment businesses within 1000 feet of each other? Strongly Support 52 44.1 44.4 Support 21 17.8 17.9 Neutral 16 13.6 13.7 Oppose 22 18.6 18.8 Strongly Oppose 6 5.1 5.1 It should be noted, furthermore, that some of the respondents who oppose density regulations do so because they oppose any initiative short of prohibition. Group Differences. Due to the overwhelming degree of support for almost any regulatory initiative and, also, due to the relatively small sample size, few group differences are statistically significant. Home ownership and gender are exceptions. In.general, home owners are more likely than renters and women are more likely than men to endorse any regulatory initiative. These differences are expected, of course, but a careful examination of response patterns reveals a curious difference. When asked whether the City should regulate the locations of adult businesses, for example, home owners and women alike express stronger support for regulation than their complementary groups. Specifically, Consultants' final Report - Page 45 Own Rent Women Men Regulate Yes 74 24 98 57 42 99 Regulate No 7 10 17 6 11 17 81 34 115 63 53 116 Both differences (owners vs. renters and women vs. men) are statistically significant. This common factor helps define the small minority (14.5%) of respondents who feel that the City should not regulate adult businesses at all.`' Asked if they would move if an adult business were to open in their neighborhood, on the other hand, home owners and women diverge slightly: Oxen Rent U`omen Men Afove Yes 52 17 69 43 27 70 Move No 28 17 45 20 25 45 80 34 114 63 52 115 While home ov-mers are more likely (vs. renters) to say that they would move out of their neighborhoods to avoid an adult business, the difference is not statistically significant. In t cmtrast, the difference for women (vs. men) is quite significant. " Respondents who expressed the opinion that the City should not regulate adult businesses tend to be younger (76.5% under 45) men (64.7%) who rent (58.8%). More important, perhaps, these respondents tend to live relatively far away from adult businesses (76.5% at least three blocks away) and to Iive in households with no children (70.6%). Several of these respondents volunteered that they were "libertarians." Of course, many of the respondents who initially told us that they opposed any regulation later expressed the opinion that adult buiinesses should not be allowed to locate near residential neighborhoods. Consultants' Final Report - Page 46 This divergence reflects a salient difference in the way home owners and women calculate costs and benefits. In the unstructured portions of the interviews, many home owners expressed feelings of resignation. One respondent who had lived in the vicinity of an adult business for more than thirty years, for example, told us that the social and economic costs of moving to another neighborhood precluded this option; and in any event, there would no guarantee that adult businesses would not eventually move into the new neighborhood. On the other hand, many women respondents expressed overwhelming fear for their safety and the safety of their children. One woman respondent with three young children told us that she had already moved because one of her children had been harassed by a man who she believed was a customer of an adult business. Although her new apartment was smaller and more expensive, she believed that the move aas absolutely necessary for the safety of her children. Anecdotal data of this sort are not amenable to statistical analysis. Nevertheless, these data provide a context for interpreting the &jective item responses of our survey. Consultants' Final Report - Page 47 VIIl. Conclusions The data and analyses reported in this document make a clear, compelling statement about the secondary consequences of the adult entertainment businesses along Garden Grove Boulevard. In terms of property values alone, the survey of real estate professionals leads to the unambiguous conclusion that the mere presence of these businesses depresses residential and commercial property values. While the effect on commercial property values is problematic, the effect on residential property values argues for strict regulations governing the distance of adult businesses from residential neighborhoods. In commercial zones, moreover, the consistent opinions of real estate professionals suggest that high density also depresses commercial property values. This argues for strict regulations governing the distances between adult businesses. z A separate survey of Garden Grove households is fully consistent with the responses of real estate professionals. Put simply, these businesses have a real impact on the daily lives of their neighbors. By all measures, respondents living near one of these businesses are aware of the presence of the businesses and have a pessimistic (but apparently realistic) view of their impact on the neighborhood_ Whereas public bearings might lead one to conclude that actual incidents involving these businesses are rare, our survey results show the opposite; more than one in five respondents reported a specific incident related to the operation of adult Consultants' Final Report - Page 48 businesses. This experience leads to strong public support for regulation. Nine of ten respondents endorse regulations that prohibit adult businesses from operating near residential neighborhoods; nearly two-thirds endorse regulations that prohibit the geographical concentration of adult businesses. Although these two surveys may represent subjective opinion, their results are consistent with objective analyses of crime data. Comparing temporal crime rates before and after changes in the operation of adult businesses, we find strong evidence of a public safety hazard. The subjective impressions of Garden Grove residents and real estate professionals have an empirical basis, in other word. Given the seriousness nature of this public safety hazard, we recommend that • No new adult businesses should be allowed to operate within 1000 feet of a residence. We find a significant interaction effect between the adult businesses and taverns or bars. When.an adult business opens within 1000 feet of a tavern or bar, crime rates rise by a factor that cannot be attributed to either business alone. Accordingly, we recommend that • No new tavern or bar should be allowed to operate within 1000 feet of an adult business and vice versa Since the adult businesses on Garden Grove Boulevard (or more precisely, their locations) were in operation prior to the advent of our data, we find no optimum Consultants' Final Report - Page 49 or ideal distance between locations that would ameliorate the public safety hazard. Accordingly, we recommend that • The present spacing code between adult businesses should be maintained. Recognizing the legal and practical difficulties of changing the existing operations, furthermore, we have no recommendations for the existing operations. Mthough we find no evidence that the public safety hazard can be ameliorated by simple arhitectural barriers (walls, e.g.), the hazard could conceivably be minimized by regulations such as limiting the hours of operation, special lighting, and so forth. . Toward this end, we recommend that • Where feasible, the Conditional Use Permit process should be used to ameliorate the public safety hazard For optimal effectiveness, the Police Department must be fully involved in every aspect of this process. There is a tendency to view adult entertainment businesses as "moral nuisances" when, in fact, the data show that they are public safety "hot spots." Adopting this view, it may be useful to enact policies designed to ensure the safety of customers and neighbors. The Garden Grove Police Department is ideally suited to advise on the range of policy options that might be implemented. A final recommendation pertains to public involvement in the process. The results of our household survey reveal strong sentiments favoring any attempt to ameliorate the secondary consequences of this problem. Nevertheless, we detect a Consultants' Final Report - Page 50 spirit of cynicism in the responses of citizens who live in the midst of the problem. For example, the weaker public support for density regulation (vs. regulating the distance from a residential neighborhood) reflects in part a draconian view of the problem; more than a few of the respondents who expressed little or no support for this regulation did so on the grounds that the businesses should not be allowed to operate any-where in the City. It would not be entirely correct to attribute this %iew to moral or moralistic attitudes. In many cases, respondents related personal experiences and fears that make these views understandable. Public support for any practial regulation may require a process that addresses the experiences and fears of these.citizens. Unfortunately, we have no expertise (or even specific insights) to suggest how this might be accomplished. } APPENDIX Real Estate Survey Frequencies Household Survey Frequencies Real Estate Instrument Household Instrument Proposed Statute Consultants' Final Report - Al Real Estate Professionals Survey Response Tabulations Based on your personal observations as a real estate professional, or on information received through the practice of your profession, do you have an opinion as to whether the presence of an adult bookstore affects the resale or rental values of nearby properties? Yes 115 94.3 94.3 No 6 4.9 4.9 Missing 1 .8 .8 How many years have you practiced in the real estate profession? 5 Years or Less 36 29.5 29.5 6-10 Years 16 13.1 13.1 11-25 Years 60 49.2 49.2 25 Years or More 10 8.2 8.2 How many years have you practiced real estate in the Garden Grove area? 5 Years or Less 47 38.5 3 8.5 6-10 Years 19 15.6 15.6 11-25 Years 51 41.8 41.8 25 Years or More 3 2.4 4.1 Missing 2 1.6 :z Based on your professional experience, bow would you expect average values of the following types of property to be effected if they are less than 200 feet away from the new adult bookstore? ...Single-family residential 20% Decrease 76 62.3 62.8 10-20% Decrease 28 23.0 23.1 0-10% Decrease 14 11.5 11.6 No Effect 3 2.5 2.5 Missing 1 .8 Consultants' Final Report - A2 ...Multiple-family residential 20% Decrease 46 37.7 38.3 10-20% Decrease 42 34.4 35.0 0-10% Decrease 26 21.3 21.7 No Effect 6 4.9 5.0 Missing 2 1.6 ...Commercial 20% Decrease 24 19.7 20.2 10-20% Decrease 40 32.8 33.6 0-10% Decrease 33 27.0 27.7 No Effect 18 14.8 15.1 0-10% Increase 3 2.5 2.5 209I Increase 1 .8 .8 Missing 3 2.5 How would you expect the average value to be affected if the properties are within 200 to 500 feet of the new adult bookstore? ...Single-family residential 20% Decrease 67 �4.9 55.4 10-20% Decrease 29 23.8 24.0 0-10% Decrease 19 15.6 15.7 No Effect'.. 6 4.9 5.0 Missing 1 .8 ...Multiple-family residential 20% Decrease 41 33.6 34.2 10-20% Decrease 36 29.5 30.0 0-10% Decrease 34 27.9 28.3 No Effect 8 6.6 6.7 10-20% Increase 1 .8 .8 Missing 2 1.6 Consultants' Final Report - A3 ...Commercial 20% Decrease 20 16.4 16.7 10-209'o Decrease 37 30.3 30.8 0-10% Decrease 36 29.5 30.0 No Effect 24 19.7 20.0 0-10% Increase 2 1.6 1.7 10-20% Increase 1 .8 .8 Missing 2 1.6 Assume that a new adult bookstore will be located within 1000 feet of an existing adult bookstore or other adult entertainment use. Based upon your professional experience, how would you expect the average values of the following types of properties to be affected if they are less than 200 feet away from the new bookstore? ...Single-family residential 20% Decrease 51 41.8 41.8 10-20% Decrease 38 31.1 31.1 0-10% Decrease 20 16.4 16.4 No Effect 12 9.8 9.8 0-10% Increase 1 .8 .8 ...Multiple-family residential 20% Decrease 41 33.6 33.6 10-20% Decrease 32 26.2 26.2 0-10% Decrease 33 27.0 27.0 No Effect 15 12.3 12.3 0-10% Increase 1 .8 .8 ...Commercial 20% Decrease 27 22.1 22.3 10-20% Decrease 27 22.1 22.3 0-10% Decrease 33 27.0 27.3 No Effect 33 27.0 27.3 10-20% Increase 1 .8 .8 Missing 1 .8 Consultants' Final Report - A4 How would you expect the average values to be affected if the properties are within 200 to 500 feet of the adult bookstore? ...Single-family residential 20% Decrease 65 53.3 55.1 10-20% Decrease 29 23.8 24.6 0-10% Decrease 15 12.3 12.7 No Effect 8 6.6 6.8 0-10% Increase 1 .8 .8 Missing 4 3.3 ...Single-family residential 2076 Decrease 42 34.4 35.3 10-20% Decrease 41 33.6 34.5 0-10% Decrease 25 20.5 21.0 No Effect 10 8.2 8.4 0-10% Increase 1 .8 .8 Missing 3 2.5 ...Commercial 20% Decrease 25 20.5 21.4 10-20% Decrease 40 32.8 34.2 0-10% Decrease 25 20.5 21.4 No Effect 23 18.9 19.7 0-10% Increase 4 3.3 3.4 Missing "•• 5 4.1 Based upon your professional experience, bow would you evaluate the impact of locating an adult bookstore within 200 feet of an area on the following problems, if the area is residential? ...Crime Substantial Increase 59 48.4 50.9 Some Increase 49 40.2 42.2 No Effect 7 5.7 6.0 Some Decrease 1 .8 .9 Missing 6 4.9 Consultants' Final Report - A5 ...Traffic Substantial Increase 28 23.0 23.9 Some Increase 60 49.2 51.3 No Effect 26 21.3 22.2 Some Decrease 2 1.6 1.7 Substantial Decrease 1 .8 .9 Missing 5 4.1 ...Litter Substantial Increase 52 42.6 44.8 Some Increase 48 39.3 41.4 No Effect 14 11.5 12.1 Some Decrease 1 .8 .9 Substantial Decrease 1 .8 .9 Missing 6 4.9 ...Noise Substantial Increase 35 28.7 31.3 Some Increase 46 37.7 41.1 No Effect 27 22.1 24.1 Some Decrease 3 '2.5 2.7 Substantial Decrease 1 .8 .9 Missing „ 10 8.2 ...Safety Substantial Increase 24 19.7 21.2 Some Increase 7 5.7 6.2 No Effect 12 9.8 10.6 Some Decrease 24 19.7 21.2 Substantial Decrease 46 37.7 40.7 Missing 9 7.4 Consultants' Final Report - A6 ...Quality of life Substantial Increase 14 11.5 12.3 Some Increase 7 5.7 6.1 No Effect 7 5.7 6.1 Some Decrease 39 32.0 34.2 Substantial Decrease 47 38.5 41.2 Missing 8 6.6 ...Rents Substantial Increase 3 2.5 2.7 Some Increase 6 4.9 5.3 No Effect 12 9.8 10.6 Some Decrease 51 41.8 45.1 Substantial Decrease 41 33.6 36.3 Missing 9 7.4 ...Loitering Substantial Increase 60 49.2 51.3 Some Increase 40 32.8 34.2 No Effect 6 4.9 5.1 Some Decrease 3 2.5 2.6 Substantial Decrease 8 6.6 6.8 Missing 5 4.1 Based upon your professional experience, how would you evaluate the impact of locating an adult bookstore within 200 feet of an area on the following problems, if the area is commercial? ...Crime Substantial Increase 45 36.9 39.1 Some Increase 57 46.7 49.6 No Effect 11 9.0 9.6 Substantial Decrease 2 1.6 1.7 Missing 7 5.7 Consultants' Final Report - A7 ...Traffic. Substantial Increase 24 19.7 20.7 Some Increase 65 53.3 56.0 No Effect 24 19.7 20.7 Some Decrease 1 .8 .9 Substantial Decrease 2 1.6 1.7 Missing 6 4.9 ...Litter ,Substantial Increase 36 29.5 31.3 Some Increase 60 49.2 52.2 No Effect 18 14.8 15.7 Substantial Decrease 1 .8 .9 Missing 7 5.7 ...Noise Substantial Increase 27 22.1 24.1 Some Increase 48 39.3 42.9 No Effect 33 27.0 29.5 Some Decrease 3 2.5 2.7 Substantial Decrease 1 .8 .9 Missing 10 8.2 ...Safety Substantial Increase 16 13.1 14.3 Some Increase 10 8.2 8.9 No Effect 14 1.1.5 12.5 Some Decrease 36 29.5 32.1 Substantial Decrease 36 29-5 32A Missing 10 8.2 ...Quality of business environment Substantial Increase 6 4.9 5.4 Some Increase 8 6.6 7.1 No Effect 7 5.7 6.3 Some Decrease 53 43.4 47.3 Substantial Decrease 38 31.1 33.9 Missing 10 8.2 Consultants' Final Report - A8 ...Commercial rents Substantial Increase 3 2.5 2.8 Some Increase 6 4.9 5.6 No Effect 17 13.9 15.9 Some Decrease 58 47.5 54.2 Substantial Decrease 23 18.9 21.5 Missing 15 12.3 ...Loitering Substantial Increase 41 33.6 36.3 Some Increase 46 37.7 40.7 No Effect 9 .7.4 8.0 Some Decrease 11 9.0 9.7 Substantial Decrease 6 4.9 5.3 Missing 9 7.4. ...Ability to attract new businesses Substantial Increase 4 3.3 3.5 Some Increase 5 4.1 4.4 No Effect 4 3.3 3.5 Some Decrease 39 32.0 . 34.5 Substantial Decrease 61 50.0 54.0 Missing 9 7.4 a ...Ability to attract customers SubstantiaL Increase 6 4.9 5.3 Some Mcrease 4 3.3 3.5 No Effect 8 6.6 7.0 Some Decrease 37 30.3 32.5 Substantial Decrease 59 48.4 51.8 Missing 8 6.6 Based on your professional experience, bow would you evaluate the impact of locating two or more bookstores within 1000 feet of each other and within 200 feet of an area on the following problems if the area is residential? Consultants' Final Report - A9 ...Crime Substantial Increase 75 61.5 64.1 Some Increase 37 30.3 31.6 No Effect 4 3.3 3.4 Substantial Decrease 1 .8 .9 Missing 5 4.1 ...Traffic Substantial Increase 43 35.2 36.1 Some Increase 60 49.2 50.4 No Effect 14 11.5 11.8 Substantial Decrease 2 1.6 1.7 Missing 3 2.5 ...Litter Substantial Increase 63 51.6 52.9 Some Increase 46 37.7 38.7 No Effect 8 6.6 6.7 Substantial Decrease 2 1.6 1.7 Missing 3 2.5 ...Noise Substantial Increase 48 39.3 41.4 Some Increase 46 37.7 39.7 No Effect 17 13.9 14.7 Some Decrease 2 1.6 1.7 Substantial Decrease 3 2.5 2.6 Missing 6 4.9 ...Safety Substantial Increase 22 18.0 18.8 Some Increase 10 8.2 8.5 No Effect 7 5.7 6.0 Some Decrease 24 19.7 20.5 Substantial Decrease 54 44.3 46.2 Missing 5 4.1 Consultants' Final Report - A10 ...Quality of life Substantial Increase 10 8.2 8.5 Some Increase 2 1.6 1.7 No Effect 6 4.9 5.1 Some Decrease 30 24.6 25.6 Substantial Decrease 69 56.6 59.0 Missing 5 4.1 ...Rents Substantial Increase 5 4.1 4.4 Some Increase 5 4.1 4.4 No Effect 7 5.7 6.1 Some Decrease 45 36.9 39.5 Substantial Decrease 52 42.6 45.6 Missing 8 6.6 ...Loitering Substantial Increase 62 50.8 53.4 Some Increase 37 30.3 31.9 No Effect 5 4.1 4.3 Some Decrease 6 4.9 5.2 Substantial Decrease 6 4.9 5.2 Missing 6 4.9 Based on your professional experience, how would you evaluate the impact of locating two or more bookstor;s'kvithin 1000 feet of each other and within 200 feet of an area on the following problems if the area is commercial? ...Crime Substantial Increase 53 43.4 44.2 Some Increase 59 48.4 49.2 No Effect 6 4.9 5.0 Substantial Decrease 2 1.6 1.7 Missing 2 1.6 Consultants' Final Report - Al ...Traffic Substantial increase 33 27.0 27.5 Some Increase 62 50.8 51.7 No Effect 22 18.0 18.3 Some Decrease 2 1.6 1.7 Substantial Decrease 1 .8 .8 Missing 2 1.6 ...Litter Substantial Increase 50 41.0 42.7 Some Increase 53 43.4 45.3 No Effect 12 9.8 10.3 Some Decrease 1 .8 .9 Substantial Decrease 1 .8 .9 Missing 5 4.1 ...Noise Substantial Increase 39 32.0 33.1 Some Increase 48 39.3 40.7 No Effect 29 23.8 24.6 Substantial Decrease 2 1.6 1.7 Missing 4 3.3 ...Safety Substantial Increase 17 13.9 14.3 Some Increase 8 6.6 6.7 No Effect 12 9.8 10.1 Some Decrease 38 31.1 31.9 Substantial Decrease 44 36.1 37.0 Missing 3 2.5 ...Quality of business environment Substantial Increase 5 4.1 4.3 Some Increase 3 2.5 2.6 No Effect 8 6.6 6.9 Some Decrease 47 38.5 40.5 Substantial Decrease 53 43.4 45.7 Missing 6 4.9 Consultants' Final Report • Al2 ...Commercial rents Substantial Increase 6 4.9 5.4 Some Increase 9 7.4 8.1 No Effect 13 10.7 11.7 Some Decrease 39 32.0 35.1 Substantial Decrease 44 36.1 39.6 Missing 11 9.0 ...Loitering Substantial Increase 49 40.2 42.6 Some Increase 45 36.9 39.1 No Effect 5 4.1 4.3 Some Decrease 8 6.6 7.0 Substantial Decrease 8 6.6 7.0 Nfissing 7 5.7 ...Ability to attract new businesses Substantial Increase 4 3.3 3.5 Some Increase 4 3.3 3.5 No Effect 7 5.7 6.1 Some Decrease 43 35.2 37.7 Substantial Decrease 56 45.9 49.1 Missing 8 6.6 ...Ability to attract customers Substantial Increase 7 5.7 5.9 _Some Increase 3 2.5 2.5 No Effect 10 8.2 8.5 Some Decrease 38 31.1 32.2 Substantial Decrease 60 49.2 50.8 Missing 4 3.3 Would you mind if we contacted you in the future regarding your responses to these survey questions? No 63 51.6 64.3 Yes 26 21.3 26.5 Missing 33 78.1 Consultants' Final Report - A13 Household Survey Response Tabulations To the best of your knowlege, how close is the nearest adult bookstore or adult entertainment establishment? 200 Feet 6 5.1 5.1 500 Feet 2 1.7 1:7 1000 Feet 8 6.8 6.8 1 Block 6 5.1 5.1 2 Blocks 15 12.7 12.7 3+ Blocks 46 39.0 39.0 Don't Know 35 29.7 29.7 I am going to ask a series of questions concerning what the impact of an adult entertainment business has or would have if it were located within 500 feet of your neighborhood. Please tell me if the impact would be a substantial increase, some increase, no effect, some decrease, or a substantial decrease. Crime Substantial Increase 55 46.6 46.6 Some Increase 31 26.3 26.3 No Effect 32 27.1 27.1 Some Decrease Substantial Decrease ... Traffic Substantial Increase 42 35.6 35.9 Some Increase 29 24.6 24.8 No Effect 45 38.1 38.5 Some Decrease 1 .8 .9 Substantial Decrease Missing 1 .8 ... Litter Substantial Increase 43 36.4 36.8 Some Increase 35 29.7 29.9 No Effect 38 32.2 32.5 Some Decrease 1 .8 .9 Substantial Decrease Missing 1 .8 Consultants' Final Report - A14 ... Noise Substantial Increase 40 33.9 34.5 Some Increase 32 27.1 27.6 No Effect 42 35.6 36.2 Some Decrease 1 .8 .9 Substantial Decrease 1 .8 .9 Missing 2. 1.7 ... Safety Substantial Increase 25 21.2 21.6 Some Increase 12 10.2 10.3 No Effect 24 20.3 20.7 Some Decrease 9 7.6 7.8 Substantial Decrease 46 39.0 39.7 Missing 2 1.7 General Quality of Life Substantial Increase 14 11.9 12.0 Some Increase 5 4.2 4.3 No Effect 28 23.7 23.9 Some Decrease 18 15.3 15.4 Substantial Decrease 52 44.1 44.4 Missing 1 .8 ... Property Values Substantial Increase 9 7.6 7.7 Some Increase 8 6.8 6.8 No Effect 18 15.3 15.4 Some Decrease 23 19.5 19.7 Substantial Decrease 59 50.0 50.4 Missing 1 .8 Consultants' Final Report - A15 ... Rents Substantial Increase 12 10.2 11.1 Some Increase 5 4.2 4.6 No Effect 42 35.6 38.9 Some Decrease 17 14.4 15.7 Substantial Decrease 32 27.1 29.6 Missing 10 8.5 ... Loitering Substantial Increase 68 57.6 58.1 Some Increase 19 16.1 16.2 No Effect 26 22.0 22.2 Some Decrease 3 2.5 2.6 Substantial Decrease 1 .8 .9 Missing 1 .8 ... Graffiti Substantial Increase 44 37.3 38.3 Some Increase 21 17.8 18.3 No Effect - 48 40.7 41.7 Some Decrease 2 1.7 1.7 Substantial Decrease Missing 3 2.5 'x ... Vandalism SubstaptialIncrease 53 44.9 45.7 Some Increase 23 19.5 19.8 No Effect 38 32.2 32.8 Some Decrease 2 1.7 1.7 Substantial Decrease Missing 2 1.7 Would you move if an adult entertainment business were located near your neighborhood? Definitely Move 36 30.5 31.0 Probably Move 35 29.7 30.2 Probably not Move 28 23.7 24.1 Definitely not Move 17 14.4 14.7 Missing 2 1.7 Consultants' Final Report - A16 Do you believe the City should regulate the location of adult businesses? No 17 14.4 14.5 Yes 100 84.7 85.5 Missing 1 .8 The courts have ruled that cities must provide a place for adult businesses to operate. How far away from your neighborhood would these businesses have to be to have a negligible effect on your neighborhood? 500 Feet 4 3.4 3.4 1000 Feet 10 8.5 8.6 1 Block 3 2.5 2.6 3+ Blocks 89 75.4 76.7 Farther 10 8.5 8.6 Missing 2 1.7 In what zone do you think these t}-pes of business should be allowed? Residential 1 .8 .9 Commercial 44 37.3 37.6 Industrial 68 57.6 58.1 None 4 3.4 3.4 Missing 1 .8 Would you support a law that prohibited the establishment of an adult entertainment business within 500 feet of a residential area, school or church? Strongly Support 92 78.0 78.0 Suppo,jt`-- 13 11.0 11.0 Neutral 4 3.4 3.4 Oppose 6 5.1 5.1 Strongly Oppose 3 2.5 25 Would you support a law that prohibited the concentration of adult entertainment businesses within 1000 feet of each other? Strongly Support 52 44.1 44.4 Support 21 17.8 17.9 Neutral 16 13.6 13.7 Oppose 22 18.6 18.8 Strongly Oppose 6 5.1 5.1 Missing 1 .8 Consultants' Final Report - A17 Are you aware of any specific incidents related to adult entertainment businesses in your neighborhood? No 92 78.0 78.6 Yes 25 21.2 21.4 Missing 1 .8 Do you own your home or do you rent? Owner 82 69.5 70.7 Renter 34 28.8 29.3 Missing 2 1.7 How long have you lived at your current residence? One Year or Less 9 7.6 7.7 Four Years or Less 26 22.0 22.2 Ten Years or Less 30 25.4 25.6 More than Ten Years 52 44.1 44.4 Missing 1 .8 What is your sex? Female 64 54.2 54.7 Male 53 44.9 45.3 Missing 1 .8 What is your age? 21 or Under 6 5.1 5.5 22 thru 35 32 27.1 29.1 36 thru 45 26 22.0 23.6 46 thru 65 34 28.8 30.9 66 or Older 12 10.2 10.9 Missing 8 6.8 Consultants' Final Report - A18 What is your highest level of education? Grade School 2 1.7 1.8 High School 32 27.1 28.1 Some College 48 40.7 42.1 College Degree 28 23.7 24.6 Graduate 4 3.4 3.5 Missing 4 3.4 How many children do you currently have living with you under the age of eighteen? None 60 50.8 51.3 1-2 42 35.6 35.9 3 or More 15 12.7 12.8 Missing 1 .8 How would you characterize your ethnicity? Caucasian 85 72.0 72.6 Hispanic 19 16.1 16.2 Vietnamese 4 3.4 3.4 Oriental 5 4.2 4.3 Black 1 .8 .9 Other 3 2.5 2.6 Missing 1 .8 Would you like to be notified of any public hearings related-to the restriction of adult entertainment businesses in Garden Grove? Yes N 76 65.0 65.0 No 42 35.0 35.0 CITY OF GARDEN GROVE ADULT BUSINESS SURVEY CALL SHEETS CASE ID: Phone number: Address: Interviewer date time outcome time/date of callback 1. -------------------------------- ---------------- -- —------------ 2. ----------------------------------------------------------------------------------------------------------- 3. ----------------------------------------------------------------------------------------------------------- 4. --------------------------------------------------------------•-------------------------------------------- 6. ----------------------------------------------------------------•------------------------------------------ 7. ----------------------- -- ----- ---•--------------- 8. ------------------+;---------------------------------------------------------•------------------------------ 9. -----------------•---------------------------------------------------------------------------------------- General Notes and Problems: -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- Hello, my name is , I am an employee with the City of Garden Grove. We are conducting a survey of Garden Grove residents to gather information on the impact of certain businesses, such as adult bookstores, nude or topless dancing estab- lishments, massage parlors, adult theaters showing X-rated movies, peep shows, etc. on your residential area. The City is conducting this survey in order to properly de- velop legislation in this area. Your responses are greatly appreciated and will be kept confidential. (Need to confirm that the respondent is a responding from a residence and not a busi- ness. If responding from a business discontinue the interview.) 1. To the best of your knowledge, how close is the nearest adult bookstore or adult entertainment establishment? ZI 200 feet 0 1 block D 500 feet ZI 2 blocks D I000 feet ❑ 3+ blocks Z) Don't know 2. Which adult entertainment establishment is it? (Prompt respondent for identifying information, ie the enact business name, or loca- tion, orgeneral identification) if 6. The courts have ruled that cities must prvide a place for adult businesses to oper- ate. How far away from your neighborho$d would these businesses have to be to have a negligible effect on your neighborood? 0 Less than 500 feet 0 1 block Z) 500 feet J 2 blocks 0 1000 feet 0 3+ blocks 7. In what zone do you think these types-af�)usinesses should be allowed? Z) Residential Z) Commercial :3 Industrial 8. Would you support a law that prohibitedithe establishment of an adult entertain- ment business with 500 feet of a residential area, school or church? 0 Strongly support - 0 Support 0 Neutral . 0 Oppose r Z) Strongly oppose 9. Would you support a law that prohibited the concentration of adult entertainment business within 1000 of each other? D Strongly support 0 Support 3 Q Neutral 0 Oppose 0 Strongly oppose 10.Are you aware of any specific incidents related to adult entertainment businesses in your neighborhood? O No 0 Yes If yes please explain: 11. Do you own your home or do you rent ?4 O Own i 0 Rent 18. Would you like to be notified of any public hearings related to the restriction of adult entertainment businesses in Garden Grove? D Yes D No If yes, confirm name and mailing address Thank you for your assistance in responding to our questions. (If they insist on a number of someone to contact about the survey give them the Ciry Manager's Office number 714-741-5101) REAL ESTATE PROFESSIONAL SURVEY :lease ccm�lete this brief survey and return it to the City of Garden Grove, City Manager's Office, by March 1 , 1991. A postage paid envelope is enclosed for your convenience. 1. Based upon your personal observations as a real estate professional, or on information received through the practice of your profession, do you have an opinion as to whether the presence of an adult bookstore affects the resale or rental values of nearby properties? Yes No opinion 2. How many years have you practiced in the real estate profession? 3. How many years have you practiced real estate in the Garden Grove area? Ouestions 4 through 15: • Please read the following information about a hypothetical neighborhood and respond to a few questions in terns of your professional experience and judgment. A middle-income residential neighborhood borders a main street that contains various commercial uses that serve the neighborhood. Although most of the neighborhood is comprised of single-family homes, there are two rultiple-family residential complexes in the neighborhood as well. A commercial building recently has become vacant and will open shortly as a typical adult bookstore. (A `typical" adult bookstore in Garden Grove also contains several "peep show booths. ere are no other adult bookstores or similar activities in the area. There is no other vacant commercial space presently available in the area: Eased upon your professional experience, how would you expect average values of the following types of ;roperty to be affected if they are less than 200 feet away from the new adult bookstore? (Circle the a,-propriate nLober for each type of property.) Decrease Decrease Decrease No Increase Increase Increase 20. 10-20'. 0-101. Effect 0-101, 10-201. 20% 4. Single-family residential 1 2 3 4 5 6 7 5. Multiple-family residential 1 2 3 4 5 6 7 6. Commercial 1 2 3 4 5 6 7 How would you expect the average value to be affected if the properties are within 200 to 500 feet of the new adult bookstore? Decrease Decrease Decrease No Increase Increase Increase 2D% 10-20% 0-10% Effect 0-10% 10-20% 20% 7. Single-family residential 1 2 3 4 5 6 7 S. Multiple-family residential 1 2 3 4 5 6 7 9. Commercial 1 2 3 4 5 6 7 Assume that the new adult bookstore will be located within 1000 feet of an existing adult bookstore or other adult entertainment use. Based upon your professional experience, how would you expect the average values of the following types of properties to be affected, if they are less than 200 feet away from the new bookstore? — Decrease Decrease Decrease No Increase Increase Increase 20% 10-20% 0-10% Effect 0-lOZ 10-2D% 20% 10. Single-family residential 1 2 3 4 5 6 7 11. Multiple-family residential 1 2 3 4 5 6 7 12. Commercial 1 2 3 4 5 6 7 How would you expect the average values to be affected if the properties are within 200 to 500 feet of the new adult bookstore? Decrease Decrease Decrease No Increase Increase Increase 20'. 10-201. 0-101. Effect 0-101. 10-201. 20Z 13. Single-family residential 1 2 3 4 5 6 7 14. Multiple-fanily residential 1 2 3 4 5 6 7 15. Commercial 1 2 3 4 5 6 7 Questions 16 and 17: Based upon your professional experience, how would you evaluate the impact of locating an adult bookstore within 200 feet of an area on the following: 16. If the area is residential: Substantial Some No Some Substantial Increase Increase Effect Decrease Decrease a, crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c. Iftter 7 2 3 4 5 d. noise 1 2 3 4 5 e. safety of wor„en and children 1 2 3 4 5 f. general quality of life 1 2 3 4 5 g, rents 1 2 3 4 5 h. loitering 1 2 3 4 5 17. If the area if corm-ercial: a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 C. litter 1 2 3 4 5 d. noise 1 2 3 4 5 e. safety of women and children 1 2 3 4 5 f, general quality of the business environment 1 2 3 4 5 g, rents 1 2 3 4 5 h, loitering 1 2 3 4 5 I. ability to attract other new businesses 1 2 3 4 5 J. ability of other businesses to attract customers 1 2 3 4 5 Questions 18 and 19: •'.. Based on your professional experience. how would you evaluate the impact of locating two or more adult bookstores within 1000 feet of each other and within 200 feet of an area on the following: 18. If the area is residential: Substantial Some No Some Substantial Increase Increase Effect decrease Decrease — a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 C. litter 1 2 3 4 5 d. noise 1 2 3 4 5 e. -safety of women .and children 1 2 3 4 5 f. general quality of life 1 2 3 4 5 g, rents 1 2 3 4 5 h: affect loitering 1 2 3 4 5 19. 1f the area is commercial: Substantial Some No Some Substantial Increase Increase Effect Decrease Decrease a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c. litter 1: 2 3 4 5 d. noise } 2 3 4 5 e. safety of women and children 1 2 3 4 5 f. general quality of the business environment 1 2 3 4 5 S. rents 1 2 3 4 5 h. loitering 1 2 3 4 5 i. ability to attract other businesses 1 2 3 4 5 J. ability of other businesses to attract customers 1 2 3 4 5 20. In general, to what degree do you feel adult entertainment businesses affect property values? 21. Why do you feel this way? 22. OPTIONAL: Name. Name of Firm. and Address Would you mind if we contacted you in the future regarding your responses to these survey questions? Yes Flo Thank you again for your assistance with this survey. 1326I/1443A 02/04/91 -3- SECTION 9.1 .1 .05 DEFINITIONS A. PURPOSE The purpose of this Section is to promote consistency and precision in the application and interpretation of this Chapter. The meaning of words and phrases defined in this Section shall apply throughout this Chapter, except where the context or usage of such words and phrases clearly indicates a different meaning intended in that specific case. B. GENERAL INTERPRETATION The following general interpretations shall apply throughout this ection: 1 . The word "shall" is mandatory and not discretionary. The word "may" is permissive and discretionary. 2. In case of any conflict or difference in meaning between the text of any definitions and any illustration or sketch, the text shall control . 3. Any references in the masculine or feminine genders are interchangeable. 4. 'lords in the present and future tenses are interchangeable and words in the singular and plural tenses are interchangeable, unless the context clearly indicates otherwise. 5. In case a definition is not listed in this section, the most current Webster Collegiate Dictionary shall be referred to for interpretation. 6. In the event of a conflict between the definitions section and the rerainder of Title IX, the Title IX provision shall prevail . C. DEFINIT:O,'IS Unless otherwise specifically provided, the words and phrases used in the Chapter shall have the following meanings: A ACCESSORY BUILDINGS AND STRUCTURES (NON-RESIDENTIAL) : A building, part of a building, or structure that is inci enta or subordinate to the main building or use on the same lot, which accessory use does not alter the principal use of such lot or building. If an accessory building is attached to the main building either by a common wall or if the roof of tie accessory building is a continuation of the roof of the main building, the access:)V*•building will be considered a part of the main building. ACCESSORY LIVING QUARTERS: Living quarters within an accessory building that is ancillary and subordinate to a principal dwelling unit, located on the same lot, for the sole use of persons employed on the premises or for temporary use by guests of the occupants. Such quarters are expressly prohibited fron containing kitchen facilities or any other area used for the deil_v preparation of food. 5752�j i g2c; i - r �. ins i01 009 ADULT ENTERTAINMENT BUSINESSES: Adult entertainment businesses shall be defined as o ows : 1 . Adult 3ook Store means an establishment having as a substantial or signs icant portion of its stock in trade, books, magazines, other periodicals, prerecorded motion picture film or videotape whether contained on an open reel or in cassette form, and other materials that are distinguished or characterized by their emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatomical areas or an establishment with a segment or section devoted to the sale, display, or viewing of such materials. 2. Adult Motion Picture Theater means an enclosed building with a capacity of fifty or more persons used for presenting material distinguished or characterized by their emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas for observation by patrons therein. 3. Adult r4ini Motion Picture Theater means an enclosed building with a capacity for less than fifty persons used for presenting materials distinguished or characterized by an emphasis on matter depicting or relating to specified sexual activities or specified anatomical areas for observation by patrons therein. 4. Adult Hotel or Motel means a hotel or motel where material is presented that is distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas. 5. Adult 'lotion Picture Arcade means any establishment required to obtain a permit under Chapter 5.60 of the Garden Grove Municipal Code or any other place to which the public is permitted or invited wherein coin, token, or slug-operated or electronically, electrically or mechanically controlled still or motion picture machines, projectors or other image-producing devices are maintained 1 to show images to five or fewer persons per machine at any one time, and where the images so displayed are distingq shed or characterized by an emphasis on depicting or describing specified sexual activities or specified anatomical areas. 6. CaSa-'tt+means a nightclub, theater or other establishment that features live performances by topless and bottomless dancers, "go-go" dancers, exotic dancers, strippers, or similar entertainers, where such performances are distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas. 7. Escort Bureau and Introductory Services means any establishment required to obtain a permit pursuant to Chapter 5.55 of the Municipal Code. 8. Massage Parlor or Bath House means any establishment required to 1 Obtain a permit aJrsuant to Chapter 5.12 of the Garden Grove "in'c:pal Code where, fo►- any form of consideration or gratuity , 05-5-01923A ( 5) ;)s ir) /o, 010 REAL ESTATE PROFESSIONAL SURVEY Please complete this brief survey and return it to the City of Garden Grove, City Manager's Office. by March 1 , 1991. A postage paid envelope is enclosed for your convenience. 1. Based upon your personal observations as a real estate professional , or on information received through the practice of your profession, do you have an opinion as to whether the presence of an adult bookstore affects the resale or rental values of nearby properties? Yes No opinion 2. Now many years have you practiced in the real estate profession? 3. How many years have you practiced real estate in the Garden Grove area? Questions 4 through 1S: Please read the following information about a hypothetical neighborhood and respond to a few questions in terms of your professional experience and judgment. A middle-income residential neighborhood borders a main street that contains various commercial uses that serve the neighborhood. Although most of the neighborhood is comprised of single-family homes, there are two multiple-family residential complexes in the neighborhood as well. A commercial building recently has become vacant and will open shortly as a typical adult bookstore. (A "typical" adult bookstore in Garden Grove also contains several 'peep show booths.) There are no other adult bookstores or similar activities in the area. There is no other vacant commercial space presently available in the area. Based upon your professional experience, how would you expect average values of the following types of property to be affected if they are less than 200 feet away from the new adult bookstore? (Circle the appropriate number for each type of property.) Decrease Decrease Decrease No Increase Increase Increase 20% 10-204. 0-10% Effect 0-101. 10-20% 200. 4. Single-family residential 1 2 3 4 5 6 7 S. Multiple-family residential 1 2 3 4 5 6 7 6. Commercial 1 2 3 4 5 6 7 Now would you expect the average value to be affected if the properties are within 200 to 500 feet of the new adult bookstore? V. Decrease Decrease Decrease No Increase. Increase Increase 2D% 10-20% 0-10% Effect 0-10% 10-20% 20% 7. Single-family residential 1 2 3 4 5 6 7 B. Multiple-family residential 1 2 3 4 5 6 7 9. Commercial 1 2 3 4 5 6 7 Ass=e that the "m adult bookstore will be located within 1000 fret of an existing adult bookstore or other adult entertainment use. Based upon your professional experience. how would you expect Ore average values of the following types of properties to be affected, if they are less than 200 feet away from the new bookstore? — Decrease Decrease Decrease No Increase Increase Increase 20% 10-20% 0-10% Effect 0-10% 10-20% 20. 10. Single-family residential 1 2 3 4 5 6 7 11. Multiple-family residential 1 2 3 4 S 6 7 12. Commercial 1 2 3 4 5 6 7 How would you expect the average values to be affected if the properties are within 200 to 500 feet of the new adult Bookstore? Decrease Decrease Decrease No Increase Increase Increase 20% 10-201. 0-10% Effect 0-10e 10-20e 201. 13. Single-family residential 1 2 3 4 5 6 7 14. Multiple-family residential 1 2 3 4 5 6 1 15. Co"rcial 1 2 3 4 - 5 6 7 Questions 16 and 17: Based upon your professional experience, how would you evaluate the impact of locating an adult bookstore within 200 feet of an area on the following: 16. If the area is residential: Substantial Some No Some Substantial Increase Increase Effect Decrease Decrease a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c. litter 1 2 3 4 5 d. noise 1 2 3 4 5 e. safety of women and children 1 2 3 4 5 f. general quality of life 1 2 3 4 5 g. rents 1 2 3 4 5 h. loitering 1 2 3 4 5 17. If the area if commercial: a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c. litter 1 2 3 4 5 d. noise 1 2 3 4 5 e. safety of women and children 1 2 3 4 5 f. general quality of the business environment 1 2 3 4 5 g. rents 1 2 3 4 5 h, loitering 1 2 3 4 5 i. ability to attract other new businesses 1 2 3 4 5 J. ability of other businesses to attract customers 1 2 3 4 5 Questions 18 and 19: Based on your professional experience, how would you evaluate the impact of locating two or more adult bookstores within 1000 feet of each other and within 200 feet of an area on the following: 18. If the area is residential: Substantial Some No Some Substantial Increase Increase Effect Decrease Decrease a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c. litter 1 2 3 4 5 d. noise 1 2 3 4 5 e. safety of women and children 1 2 3 4 5 f. general quality of life 1 2 3 4 5 g. rents 1 2 3 4 5 h. affect loitering 1 2 3 4 5 -2- 19. If the area is co-nercial: Substantial Some No Some Substantial Increase Increase Effect Decrease Decrease a. crime 1 2 3 4 5 b. traffic 1 2 3 4 5 c, litter 1. 2 3 4 5 d. noise 1 2 3 4 5 e. safety of women and children 1 2 3 4 5 f. general quality of the business environment 1 2 3 4 5 g, rents 1 2 3 4 S h, loitering 1 2 3 4 5 i. ability to attract other businesses 1 2 3 4 5 J. ability of other businesses to attract customers 1 2 3 4 5 20. In general, to what degree do you feel adult entertainment businesses affect property values? 21. Why do you feel this way? 22. OPTIONAL: Name, Name of Firm, and Address a. Would you mind if we contacted you in the future regarding your responses to these survey questions? Yes No Thank you again for your assistance with this survey. 1326I/1443A 02/04/91 -3- (7) For shopping center associations, the number of days shall be used on a monthly or quarterly schedule. (8) The number of days for individual business addresses shall count toward the maximum allowable days allocated for special event sales. ( 9) All merchandise, materials, signs and debris shall be removed from the outdoor area by 10:00 a.m. of the day following the closure of the event, unless extended by the Director. 7. Holiday Lot Sales Christmas tree sales, fireworks sales and pumpkin sales may be permitted to operate, subject to the following conditions : a. Such use shall be restricted to commercially zoned property. b. Applications must be submitted ten (10) days in advance of the sale. SECTION 9.1 .2.06 ADULT ENTERTAINMENT USES A. PURPOSE. The City Council of the City of Garden Grove finds that adult entertainment businesses, as defined in Section 9.1 .1 .05C, -because of their very nature, have certain harmful secondary effects on the community. These secondary effects include: I . Depreciated property values, vacancy problems in co-nercial space (particularly in the newer commercial buildings) . 2. Interference with residential neighbors' enjoyne,nt of their property due to debris, noise, and vandalism. 3. Higher crime rates in the vicinity of adult businesses. 4. 3lighted conditions such as a low level of maintenance of commercial pre,mises and parking lots. The City Council further finds that the restrictions and development standards contained in this Section will tend to mitigate, and possibly avoid, the harmful secondary effects: on the community associated with adult entertainment businesses. The primary purpose of these regulations is the amelioration of harnfal secondary effects on the co muni ty. The regulations contained in this section are unrelated to the suppression of frae speech and do not limit access by adults to materials with First Anendment potential . 4885T/1907A (31 ) 04/34/91 B. SPECIFIED SEXUAL ACTIVITIES AND ANATOMICAL AREAS. Pursuant to Section 9.1 .1 .05C, an adult entertainment business is any business or establishment that offers its patrons services, products or entertainment characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas." 1 . For purposes of this Section, "specified sexual activities" shall include the following: a. Actual or simulated sexual intercourse, oral copulation, anal intercourse, oral-anal copulation, bestiality, direct physical stimulation of unclothed genitals, flagellation or torture in the context of a sexual relationship, or the use of excretory functions in the context of a sexual relationship, and any of the following depicted sexually oriented acts or conduct: analingus, buggery, coprophagy, coprophilia, cunnilingus, fellatio, necrophilia, pederasty, pedophilia, piquerism, sapphi s:n, zooerasty; or b. Clearly depicted human genitals in a state of sexual stimulation, arousal or tumescence; or C. Use of human or animal masturbation, sodomy, oral copulation, coitus, ejaculation; or d. Fondling or touching of nude human genitals, pubic region, buttocks or female breast; or e. Masochism, erotic 'or sexually oriented torture, beating or the infliction of pain; or f. Erotic or lewd touching, fondling or other contact with an animal by a human being; or g. Human excretion, urination, menstruation, vaginal or anal irrigation. h. 9ancing by one (1 ) or more live entertainers in a manner x displaying specific anatomical areas. 2. For the purpose of this Section, "specified anatomical areas" shall include the following: a. Less than completely and• opaquely covered human genitals, pubic region, buttock, and female breast below a point immediately above the top of the areola; and b. Human male genitals in a discernibly turgid state, even if completely and opaquely covered. 4885T/1907A (32) • 04/J�/9� C. SPECIAL REGULATIONS. In a C-2 zone, where the adult entertainment businesses regulated by this Part would otherwise be permitted, it shall be unlawful to estaolish any such entertainment business without the benefit of the hearing body approving a Conditional Use Permit and if the location is: 1 . 'Within two hundred (200) feet of any area zoned for residential use or within two hundred (200) feet of any building owned and occupied by a public agency; 2. Within one thousand (1 ,000) feet of any other "adult entertainment" business; 3. Within one thousand (1 ,000) feet of any school facility, public or private, grades K through 12; park; playground; public libraries; licensed day care facilities; church and accessory uses. The "establishment" of any "adult entertainment" business shall include the opening of. such a business as a new business, the relocation of such business or the conversion of an existing business location to any "adult entertainment" business uses. For the purposes of this Section, all distances shall be measured in a straight line, without regard to intervening structures or objects, from the nearest point of the building or structure used as a part of the premises where said adult entertainment business is conducted to the nearest property line of any lot or premises zoned for residential use, or to the nearest property line of any lot or premises of a church or educational institution utilized by minors or to the nearest point of any building or structure used as a part of the premises of any other adult entertainment business. D. VARiANCE OF LOCATIO14AL PROVISIONS. Any property owner or his auth,)rized agent may apply to the hearing body for a variance of any locationil provisions contained in this Section. The hearing body, after a hearirg, may grant a variance to any locational provision, if the following finrings are made: 1 . that the proposed use will not be contrary to the public interest or injurious to nearby properties, and that the spirit and intent of this S=ction will be observed; 2. That the proposed use will not unreasonably interfere with the use and enjoyment of neighboring property or cause or exacerbate the developnent of urban blight; 3. That the establishment of an additional regulated use in the area will not be contrary to any program of neighborhood conservation or revitalization nor will it interfere with any pro3ran being carried out pursuant to the Community Redevelopment Law; ?nd 4885T/19074 (33) 0;/03/91 05 4. That all applicable regulations of this Code will be observed. The procedure for this hearing shall be the same as that provided in Article 6, Division 2 of the Garden Grove Municipal Code, with. among other matters, the same notice requirements, the same right of appeal to the City Council , and the same fees payable by the applicant. The i Development Services Department shall prepare the necessary application form for this variance. I E. ADULT MERCHANDISE IN NON-ADULT USE BUSINESS. 1 . Definitions. For the purposes of this Part, "adult merchandise" is defined as any product dealing in or with explicitly sexual material as characterized by matter depicting, describing, or relating to specified sexual activities or specified anatomical areas. In addition, "non-adult use business" means any business or i establishment not included in Section 9.11 .05C. i 2. Floor Space Limitations. No more than fifteen (15) percent of total oor space area open to the public of a non-adult use business shall be devoted to adult merchandise. 3. Segregation of Adult Merchandise. Retailers classified as non-adult use establishments sha disp ay adult merchandise in an area of the business segregated and screened from the area used for the sale and display of non-adult merchandise. Screening may be accompl fished with partitions or said adult materials may be displayed in separate rooms. 4. Access by Minors. Non-adult use establishments shall provide controls su lcient to prohibit access by persons under eighteen (18) years of age to areas screened or segregated for the purpose of selling or displaying adult merchandise. 5. Certain Merchandise Prohibited. Non-adult use businesses shall not display or merchandise adult, sexually oriented implements and paraphernalia, including, but not limited to: dildos, auto sucks, sexually oriented vibrators, edible underwear, benwa balls, inflatable orifices, anatomical balloons with orifices, simulated and -battery operated vaginas, and similar sexually oriented devices. n F. NEWSRACKS. Newsracks shall not display specified sexual activities or specified anatomical areas. SECTI0;1 9.1 .2.07 ALCOHOLIC BEVERAGE SALES A. PURPOSE. To establish criteria and conditions for uses that sell , serve , or allow consumption of alcoholic beverages. 4885T/1907A (34 .1 04?34;91 �1 ,t massage, alcohol rub, administration of fomentations, electric or magnetic treatments, or any other treatment or manipulation of the human body occurs. 9. Model Studio means any business where, for any form of consideration or gratuity, figure models who display specified anatomical areas are provided to be observed, sketched, drawn, painted, sculptured, photographed, or similarly depicted by persons paying such consideration or gratuity. 10. Sexual Encounter Center means any business, agency or person who, for any form of cons- eration or gratuity, provides a place where three or more persons, not all members of the same family, may congregate, assemble or associate for the -purpose of engaging in specified sexual activities or exposing specified anatomical areas. 11 . Any other business or establishment- that offers its patrons services, products, or entertainment characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas. 12. For purposes of the above definitions, "emphasis on matter depicting, describing or relating to specified sexual activities or specified anatonicai areas" is found to be in existence when one or more of the following conditions exist: a. The area devoted to merchandise depicting, describing or relating to specified sexual activities or specified anatomical areas exceeds more than 15 percent of the total display or floor space area open to the public or is not screened and controlled by employees. h. One of the primary purposes of the business or establishment is to operate as an adult entertainment establishment as evidenced by the name, signage, advertising or other public promotion utilized by said establishment. C. One of the primary purposes of the business or establishment is to operate as an adult entertainment establishment as dA:monstrated by its services, products or entertainment rconstituting a regular and substantial portion of total business operations and/or a regular and substantial portion of total revenues received; where such services, products or entertainment are characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas. For purposes of this Section, "regular and substantial portion" is defined to mean greater than fifteen (15) percent of total operations or revenues received. d. Certain types of "adult merchandise" are displayed or merchandised. For purposes of this Section, "adult merchandise" means adult, sexually oriented implements and paraphernalia , 04/J4/91 U1 ` L __ 41 " a f such as, but not limited to: dildo, auto suck, sexually oriented vibrators, edible underwear, benwa balls, inflatable orifices, anatomical balloons with orifices, simulated and battery operated vaginas, and similar sexually oriented devices. AGRICULTURAL CROPS: The use of property for the growth and harvest of - - agriculturalcrops, including the display or sale of seasonal agricultural products grown on the parcel or an adjacent parcel in a roadside stand. ALLEY: A public or private thoroughfare or way that may afford a primary or a secondary means of access to abutting properties. APARTMENT: A room, or a suite of two or more rooms, in a multiple dwelling, occupied or suitable for occupancy as a dwelling unit for one family but not including motels or hotels. ARCADE: Any place of business containing ten ( 10) or more amusements devices, including but not limited to pinball , air hockey and video games, for use by the public at a fee. B BAR: A public or private business open to the general public and lensed by the California Department of Alcoholic Beverage Control with a: "on-sale premises" type license, providing preparation and retail sale of alcoholic beverages for consumption on the premises, including taverns, bars and similar uses. BILLBOARD: A sign identifying a use, facility, or service not conducted on the premises or a product that is produced, sold or manufactured off-site. BILLIARD PARLOR OR POOL HALL: "Billiard parlor" or "pool hall" means a building, structure, or portion thereof in that are located one or more tables designed or used for play of pool , billiards, bagatelle, snooker, 5umper pool , or similar games, or any establishment required to obtain a permit under Chapter 5.40.20 of the Municipal Code. ' BOARDING/LODGING FACILITY: A building containing a dwelling unit where lodging is pnovi"ded, with or without meals, for compensation with not more than five (5) guest rooms for ten (10) persons. BUILDING: Any structure that is completely roofed and enclosed on all sides, excluding all fo ms of vehicles even though immobilized. BUILDING FRONT: That side of any building designed or utilized as the primary customer or pedestrian entrance to the building. Each building may have more than one side of the building designated as a front under this definition. B!;iLDINS HEIGHT: T.ie vertical dfst3nce m23surej from t)e average level .of the building site to the uppermost roof point of the structure, excluding chimneys, antennas, architectural appurtenances and similar fe3tires. 5752T/1923A ( 7) r% 1 STUDY OF THE EF FECTS Of THE CONCE. NTH-ATION Of L 1� 0 �1D � al� TL 71fil vi a/ Lj M IN THE CITY OF 103 ANGIIES I DEPARTMENT OF CITY PLANNING CITY OF LOS ANGELES JUKE 1977 CITY PLAN CASE NO . 26475 Counci l File No . 74-452?.--S . : STUDY OF THE EFFECTS OF THE CONCENTRATION OF ADULT ECTERTAINMENT ESTABLISHMENTS IN THE CITY OF LOS ANGELES Prepared for : Planning Committee of the Los Angeles City Council Prepared by : Los Angeles City Planning Department June; 1977 I •�1 1 TABLE OF CONTENTS Page Summary and Recommendations . . . . . . . . . . . . . . . . . . . 1 I . Findings . . . . . . . . . . . . . . . . . . . . . . . . . . 4 II . Purpose and Scope . . . . . . . . . . . . . . . . . . . . . 7 III . Methods Currently Used to Regulate Adult Entertainment Businesses . . . . . . . . . . . . . . . . . . . . . . 9 A. Approaches to the Regulation of Adult Entertainment by Land Use Regulation . . . . . . . . . . . . . . . . 9 1 . Boston Approach . . . . . . . . . . . . . . . . . . . 9 2 . Detroit Approach . . . . . . . . . . . . . . . . . . 10 3 . Variations Adopted by Other Cities . . . . . . . . . 10 B . Alternate or Supplementary Forms of Regulation Currently Available Under State and Municipal Law . . . 14 1 . Red Light Abatement Procedure . . . . . . . . . . . 14 2 . Police Permit Requirements . . . . . . . . . . . . . 15 C . Other Regulations of Adult Entertainment in Los Angeles . . . . . . . . . . . . . . . . . . . . 18 IV . Methodology and Analysis . . . . . . . . . . . . . . . . . 20 A . Changes in Assessed Valuation Between 1970-1976 . . . . 22 1 . Study and Control Areas . . . . . . . . . . . . . . 22 2 . Conclusion . . . . . . . . . . . . . . . . . . . . . 25 B . Public Meetings . . . . . . . . . . . . . . . . . . . . 27 C . Questionnaires . . . . . . . . . . . . . . . . . . . . 32 1 . Description of Survey . . . . . . . . . . . . . . 32 2 . Results of Survey . . . . . . . . . . . . . . . . 33 D . U . S . Census and Related Data . . . . . . . . . . . . . 44 _ 1 ... .Descri-ption of Hollywood using "Cluster Analysis " . . . . . . . . . . . . . . . . . 44 I TABLE OF CONTENTS ( cont ' d ) 2 . Description of Studio City and North Hollywood using Census Data . . . . . . . . . . . . . . . . . 47 V . Police Department Study of Hollywood . . . . . . . . . . . . 51 TABLES I . No . of Ordinances Regulating Adult Entertainment Uses . . . . . . . . . . . . . . . . . . . . 11 II . Ordinances Regulating Adult Entertainment Uses by Dispersal . . . . . . . . . . . . . . . . . . . . . . . 13a III . City Council Files Relating to Adult Entertainment . . . 19a IV . 1970-76 Changes in Assessed Valuation . . . . . . . . . 24u V . Studio City, North Hollywood and City of Los Angeles Comparison of Census Data . . . . . . . . . . . 48 V1 . Reported Crimes and Arrests 1969-75 - Hollywood and City of Los Angeles . . . . . . . . . . . . . . . . 53 EXHIBITS Exhibit A - Generalized Location of Adult Entertainment Sites in Hollywood and Central City , by Census Tract . . . . . . . . . . . . . . . . . . 22a Exhibit B - Generalized Location of Adult Entertainment Sites in Studio City and North Hollywood , by Census Tract . . . . . . . . . . . . . . . . . . . . 22b APPENDICES A . Assessment Data - 1970 and 1976 B . Form - General Questionnaire C . Form - Appraiser Questionnaire D . Response and Summary of Privately-Distributed Questionnaire ( not a portion of study) E . Data from U . S . Census - 1960 and 1970 SUMMARY AND RECOMMENDATIONS A . Types of Ordinances to Control "Adult Entertainment" Uses Two methods of regulating adult entertainment business via land use regulations have developed in the United States . They are : 1 ) the concentration of such uses in a single area of the city as in Boston ; and 2) the dispersal of such uses , as in the City of Detroit . The Detroit ' ordinance has been challenged and upheld by the U . S . Supreme Court ( Yoiinn vs . American, Mini -Theaters , 96 S . Ct . 711 , 1976 ) . B,. Effect of "Adult Entertainment" Businesses on the Community There has been some indication that the concentration of "adult entertainment " uses results in increased crime and greater police enforcement problems . In the Citv of Los Angeles , the Los Angeles Police Department has -,`ound a 1i ;jk between the concentration of such businesses and increased crime in the Hollywood community . ( The major portion of a Police Department report on this subject is herein contained . ) . 'While several major cities have adopted ordinances similar to the Detroit ordinance , no other major city has , to our knowledge , adopted a Boston-type ordinance . " Testimony received at two public meetings on this subject has revealed that there is serious public concern over the proliferation of adult entertainment businesses-particularly in the Hollywood area . Citizens have testified of being afraid to walk the streets ; that sor,!e businesses have left the area or have modified their hours of operation ; and. that they : are fearful of children being confronted by unsavory individuals or of being exposed to sexually explicit material . A representative of an adult theater chain testified in support of the manner in which this business was run and in support of the type of clientele which attend the theaters . The Planning Department staff is of the opinion that the degree of deleterious effects of adult entertainment businesses depend largely on the particular type of business and on how any such business is operated . A mail survey questionnaire conducted by the Planning Department has tended to emphasize general public concern over the proliferation of sex-oriented businesses and has indicated further, that appraisers , realtors and representatives. of lending institutions are generally of the opinion that concentration of adult entertainment businesses exerts a negative economic impact on both business and residential properties . They feel that the degree of negative impact depends upon the degree of concentration and on the specific type of adult entertainment business . The 1970-76 change in the assessed value of residential and commercial properties containing concentrations of adult enter- tainment businesses was compared with other areas without such concentrations , and with the City as a whole . On the basis of this comparison , it cannot be concluded that properties containing concentrations of adult entertainment businesses have directly influenced the assessed valuations of such properties . Data and analysis based on the U. S . Census of 1970 and certain trend data from the censuses of 1960 and 1970 as applied to areas of the City containing concentrations of adult entertainment businesses are included in the body of the report and in the - Appendix . C . Scope of the Ordinances Enacted by Other Jurisdictions The scope of "adult entertainment" ordinances encompases a variety of adult activities . For example, the Los Angeles Study has considered "adult entertainment" establishments to include adult bookstores and theater's, massage parlors , nude modeling studios , adult motels , arcades , and certain similar businesses . Many other ordinances studied, however, -are iess broad in their coverage . The Detroit ordinance, for instance does not regulate massage parlors or adult motels , nor does -it provicTe for the closing of any such businesses by amortization, which would be necessitated by the retroactive application of such an ordinance . Table I on page 11 indicates the ordinances . reveiwed and the major categories of uses they regulate . 1 Effect of Ordinances Enacted by Other Jurisdictions The U. S . Supreme Court i-n Young vs . American Mini -Theaters pointed out , as one of the bases for upho dding the Detroit ordinance, that the regulation did not limit the number of "adult entertainment" businesses . Our study has indicated that the practical effect of literal adoption of "Detroit" language without modification in the City of Los Angeles would be to limit the potential locations for such businesses rather severely. Due to the predominance of commercial zoning in "strips" along major and secondary streets , an ordinance preventing "adult entertainment" business from locating within 500 feet of residentially zoned property would , in effect , limit such businesses to those areas of the City where there is commercial zoning of greater than 500 feet in depth . Areas with such commercial frontage would include downtown Los Angeles a small part of Hollywood, Westwood, and Century City. A few industrial areas would -also afford a separation of this distance from residential properties . The limitation of 1 ,000 feet between establishments (as provided in the Detroit ordinance) would likely be inappropriate in the City of Los Angeles inasmuch as commercial zoning is located in a strip pattern along most of the City ' s approximate 1 ,400 miles of major and secondary highways . ( It is estimated that approximately 400- miles of such "strip" commercial zoning exists in the City. ) -2- D. Recommendations 1 . If the City Council should find it advisable in light of the findings of .this report to recommend the preparation of an ordinance to control adult entertainment businesses , such an ordinance should be of a dispersal type rather than a concentration type . . (To build a planning policy basis for such regulation , the Council may also wish the Planning Department to consider the development of appropriate policies for incorporation within the Citywide Plan . ) 2 . If a dispersal type ordinance is recommended by the City Council , the Planning Department is of the opinion that such an ordinance should be designed for specific application in the City of Los Angeles , rather than the direct adoption of the Detroit model . If such a dispersal type ordinance is recommended for enactment locally, it should consider : a. distance requirements between adult entertainment establishments . The Planning Department recommends that a separation between establishments greater than 1 , 000 feet is necessary and desirable . b . distance requirements separating adult entertainment establishments from churches , schools , parks , and the like . The Planning Department suggests that a . separation of at least 500 feet is necessary. A similar distance separating adult entertainment uses from single-family residential development should also be considered . C . the possibility of enacting additional provisions to regulate signs and similar forms of advertising should also be considered . 3 . If the City Council should find it advisable to recommend all of the types of "adult entertainment" businesses included in this study, it should consider whether all such uses should be in the same class and subject to the same regulations . 4 . Should the City Council recommend the preparation of a zoning ordinance to regulate adult entertainment businesses , other sectiuns of the Municipal Code relating to the subject , including police permit requirements , should also be amended in order to be consistent with the zoning regulations and to facilitate the administration and enforcement of such regulations . -3- 5 . The Planning Department recommends that it be instructed to review existing zoning regulations applying to the C4 zone ' which currently prohibits "strip tease shows " and that the Zoning Administrator; through interpretation; consider expanding the list of prohibited uses in said zone to include additional adult entertainment uses as herein indentified . G . To assist in the regulation of "adult entertainment" busi - nesses ; the City should continue to vigorously enforce all existing provisions of the Municipal Code relating to the subject; including Zoning regulations . -3a-- I . FINDINGS 1 . A Boston-type ordinance (concentration) to control adult entertainment businesses would not be . acceptable nor desirable in the City of Los Angeles . 2. In the event legislation is enacted in the City of Los Angeles there is adequate basis -for a Detroit--type ordinance ( dispersion) which requires a distance of 1000 feet between establishments and 500 feet from residential zones . -- Existing locational patterns - of adult entertainment businesses ( in Hollywood, Studio City, North Hollywood) actually represent a concentration rather than a dispersion of establishments . ( Such patterns are contrary to the Detroit concept and are due, in fact, to the City` s strip commercial zoning pattern . ) 3 . If dispersion is desired in Los Angeles , an ordinance should be - designed specifically for the City. (Direct application of the Detroit ordinance would not be desirable or appropriate in Los Angeles and would, in part ; tend to result in a concentration of such businesses . ) 4 . Statistics provided by the Los Angeles Police Department (LAPD) indicate a proportionally larger increase in certain crimes in Hollywood from 1965-75 , as compared with the City of Los Angeles as a whole . (Hollywood has the largest concentration of adult entertainment businesses in the City. ) 5 . Statistics provided by the LAPD indicate that there has been a large increase in adult entertainment enterprises since 1969, particularly in Hollywood. From December 1975 to December 1976, however, there has been a decrease in such establishments*. 6 . Te-s.ti-mony obtained at two public meetings on the Adult Entertainment- study conducted on April 27 and 28, 1977 indicated that : - -Man-y--pe-r-sons , including the elderly, are afraid to walk the streets in Hollywood. - Concern was .e-x-p-ressed that children are being exposed .- to sexually explicit materials and unsavory -persons . - S o-m-e -b u-s-i-n-es s e-s no T on-9 er—r�emai n o p e n i n t h e a v-e n i N s-- a n d others have left the area allegedly directly or indirectly due -tn. t1�e -es..tab l-T st:me nfi .Hof-a dua�..e-n•t-e-r t a-i-r�mert_..bus-i-Re sse-s-: Irr--iio 1 lywood, some chuTches dr i ve the eTde-rTy ta- ----se r-v-rces - a n d others p-r-o-v i de' p r..i v_a.t e -g-aa r-d-s---4 n-,t-he i t parking l o-t.s_. Nearly all imrs-on-s opposed -t-he -concentration.- -of,- --ad-u-1-t— - enter ta i-n-me-trt...ac t i v i t i es . r 7 . Responses to questionnaires of the City Planning Department have. indicated that : • Appraisers ; realtors ., lenders ; etc . believe that the concentration of adult entertainment establishments has had adverse economic effects on both businesses and residential property in respect to market value; rental value and rentability/saleability; that the adverse economic effects diminish with distance but that the effects extend even beyond a 1000-foot *radius ; and that the effects are related to the degree of concentration and to the specific type of adult entertainment business . Businessmen , residents , etc. believe that the concentra- tion of adult entertainment astab•lishments has adverse effects on both the quality of life: and on business and property values . Among the adverse business effects cited are : difficulty in retaining and attracting customers to non- "adult entertainment" businesses ; , difficulty in recruiting employees ; and difficulty in renting office space and keeping desirable tenants . Among the adverse effects on the quality of life cited are increased crime ; the effects on children ; neighborhood appearance • litter and graffiti . 8 . A review of the percentage changes in the assessed value of commercial and residential property between 1.570 and '1.975 for the study areas containing concentraticns of adult entertain- ment businesses have indicated that : The three study areas in Hollywood containing such businesses have increased less than the Hollywood Community, and less than the City as a whole . Two of the three study areas in Hollywood have increased less than their corresponding "control areas " ; however , one such study area increased by a greater amount than its corresponding control area. - The study area in Studio City has increased by a greater percentage than its corresponding "control area" .. by a slightly lower percentage than the Sherman Oaks-Studio City Community; and by a considerably greater percentage than the entire city. - The study area in North Hollywood has increased by a considerably lower percentage than its cor.-esponding control area, the North Hollywood Community. and the City as a whole . - On the basis of the foregoing it cannot be concluded that adult entertainment businesses have directly influenced changes in the assessed value of commercial and residential properties in the areas analyzed . 9 . There are various existing laws and regulat.io-ns ( other than zoning ) available to effect proper regulation of adult entertainment businesses . 10. There is a high degree of turnover in individual adult entertainment businesses as. evidenced on pa�,e 51 (Much of this change is probably due to Police enforcement. ) 11. The Los .'Angeles City Council, both on: its own i.nitia.tive and a� the urging of numerous citizens groups, has proposed a variety of approaches to limiting the possibly deleterious effects of "adult entertainment" business on neighborhoods. 12. At least 10 cities have adopted ordinances similar to the Detroit dispersal ordinance. Several other Cities have enacted other Porn s of regulations. 13 . The Detroit ordinance does not regulate massage parlors . Of the cities with regulat'ons, !three have included massage parlors within the purview cif their zoning ordinance. 14 . None of the cities surveyed call out or regulate adult motels as a Lart of their "adiult entertainment" -ordinance. 15. The Detroit Ordinance is prospective in its application and '�herefore does not include an amortization provision, i .e. provide for a time period for the removal of existing businesses. Although other such ordinances have included such provisions, none had been validated by the courts at the time of this study. -6- jj-y"Po ETR STARTS JULY:1 nt 7 hcaurs and[kip �;� s ���t: � •,i I I� �I I� �} gyp'_ r' i "'' r — K,g4k1i} t ' SCOW �t- t �•, ours �� L j SAGqw,"! ' taAK U`J Mm 77 Mi- (v•` 6 i►D_.00�T�TNE�ATR,E ,ys n y �2 g C. w SEM1 DANCERS 11 WANTED!- 5 z AMUS h BACK",. ,,,..,,, .aVLE- pqrr q O r FC'A eGir i '"ti. • OMENS Y' F; t c _' ULI, IHEATR[ t .ly t•. } . � .[-,.'^•••=�lr••.•h Jib ..++�—: ..re�+a .... L' _. .. -��� OPEN ALL NTHE � a h 0V S_ R I+i 3 N r !{1 v i EX071C EXOTIC -. 1��,•�, � i 4j �: — _ O�RIIIG Dr1R111G. N "A '4.a�' FULLCOIAR ! FULLC0100 t;; t•SOIIUD Pi SOUIID OPEN NITE I r Imo. ' I ' -1� � �� �� - Y• •�'l�i� t� i 'J1�•�"� .ty�+:77 4 Y u.. ''i.�rnt��}y C �� �i]r+cl � �, '1 - s+2.,'��'M r'` v.k` ri .0 �.ra'^ � ,,,.r-�",r'`�5i?Cy�C �•,,•..w > _ .+ LIVE _ON 10 I)I a E 40 Aq , rill DEPAT 11 1 1 V THE oEr N • r: .. :x_4 _ a:h r I ��� JONES 1 I . ;'� _ �l YJ s_ �v �; a!+ MISS . r, ,OPEN DAILY 12 NOON OPEN ALL NITE ADULTS ONLY ;;,;� _ �+., • OPEN All NITE _ '- - - - `vim'-�r��4 " '�.'_.-�';rt• `. �'':___.i:�......_.:.,:_,..JI..._ '{ ' - i �t �1 �• ,�,t'r� _ gip; 7. 1' • r s ., zip .r a*.tirta.. r. J t:�; �' t a�'" _. .,.= ,� .. ,'�.-_ i yiaTy c�� FFF ri•.� � ? . � rr�'_ at. _ 'f �',"p�_'�''$..d' "r ,,,VY„y, ,y t, � #`"P y' y T ; �j� !✓ � Tl Y , �r ,R,t - P / .�'f""r'�""'"d�''s l','.".r^. )? � ..Si• • 1.. 1 �tI � � ir�• _ F � } S -xc: ,� +r� tt//� h �"''^y. C �ra•, ,.....«t• J� Y � � � �f �� ,St `•� 4 t � �'i� ✓f 1 t m"ti• x' a 1 ''.,, c s a� n . :tom' rat a '^terms^ --••+ - t 7ff ,f ^- .F.,r r« t r Z �' t t. 'S^ � �v} 1 ,'a ,_O A! {� >.��. .� 6 f• :.:.X ✓ �"=+ 1SFs e 4 � �` ; �, s �r fit;. tj � z �"� ' � s;» o ? a t J t a.jX �r �' �� � we•. 'a /y+�"�# s�$ �.1.srt=, tJ r 1 .� �7 t yr� .,a Yy;N" fir• '• � ,. �K � ✓' t r -R, ��' ' '•�,,; �t� J� 'i.�/1�i—c .t�•� Px �A F: �x n �. � ,b � r. X •T t ;� J� t�y�' ` � f Y� t� X � J j ` iS. �}� t �V 4 -..�� A c R :fi ...x*.r { .mot � s4.-r.a.' � ,r r '�_k S:-"'�..°'.z•..�� .�-,« � F � t = . • II . PURPOSE AND SCOPE On January 12 ; 1577 ; the Los Angeles City Council instructed this Department, with the assistance of other City agencies , to conduct a comprehensive study . to determine whether the concentration of so-called "adult entertainment" establishments. has a blighting or degrading effect on nea,,-by properties and/or neighborhoods . The term "adult entertainment" is a general term utilized by the Planning staff to collectively refer to businesses which primarily engage in the sale of material depicting sex or in providing certain sexual services . These would include the following : adult bookstores ; X-rated theaters ; adult motels with X-rated entertain- ment ; massage parlors ; sexual therapy establishments (other than those operated by a licensed psychologist , psychiatrist ; etc . ) ; and nude, topless or bottomless bars and restaurants . During the past few years , there has - been increasing concern in Los Angeles over the proliferation of such sexually oriented businesses . The de~ ivation of such ' concern is varied---religious , moral ; sociological and economic . The positions advocated by the public range from a Ilia issez faire" attitude to outright moral indignation and demand for prohibition . It should be noted at this time that the topic of newsracks , was not dealt with in this study. The primary reason for not considering newsracks is that , in addition to the absence of a specific Council request for this Department to deal with that subject ; this matter has been and continues to be a topic of litigation in our state courts . Additionally; other public agencies ; including the City Attorney; Bureau of Street Maintenance, and Building and Safety, are presently pursuing assignments regarding newsracks ., and it is premature to determine whether newsracks could feasibly be studied as "adult entertainment" businesses , from a practical or constitutional standpoint . In giving the Planning Department this assignment , the City Council essentially called for a fact-finding process to determine whether adult entertainment establishments , where they exisT n concentration; cause blight and deterioration . When this question has been posed to the public , there have frequently been anguished retorts to the effect that "the answer is so obvious it is ridiculous to even ask the question, " and "what is the City waiting for before it takes action to eliminate these scourges of society?" On the other side of the spectrum., certain parties who are against the adoption of any regulations regarding "adult entertainment" question the legitimacy of the government ' s intl-rest in the subject ; and they have noted that magazines as "scurrilous" as those sold in adult bookstores are also available in the markets and drugstores where the likelihood of perusal by youngsters is obviously greater than within the confines of an adult bookstore (where no parson under 3.8 years of age is allowed ) . -7- In completing this study, the Planning Department has made every effort to ensure a fair and unbiased analysis of "adult entertain- ment . " The staff has been instructed to objectively review information of a factual nature ; and , although the personal feelings of organized groups and the public at large were forcefully expressed at the two public meetings and in the study questionnaires , the staff has maintained independence from such strong emotions in evaluating the data gathered . As noted above , the staff has specifically been given the charge to determine whether the concentration of "adult entertainment" establishments has any blighting or degrading effect on the neighborhoods in which they reside . We did not consider the specific nature or content of the materials or services rendered , advertised or promised , for this would have constituted a censor- like role for the Department which was neither desired nor requested by the Council . This study has focused on the Hollywood community as well as portions of Studio City and North Hollywood as those areas of Los Angeles having the greatest . concentration of "adult entertainment" establishments . In order to assess the effect of the concentration of "adult- entertainment" establishments in these areas , the staff has analyzed such factors as changes in assessed property values , and reviewed various crime statistics as well as other demographic and related data as available from the U . S . Census . In addition , the Department has reviewed various established approaches to the regulation of "adult entertainment" business , including legislation already enacted by other jurisdictions , and earlier efforts of the City of Los Angeles to regulate such businesses . By means of two public meetings on the subject conducted by representatives of the City Planning Commission, and through the use of a mail survey questionnaire, the Department has also attempted to provide additional documentation relative to the actual or perceived impact of adult entertainment businesses on the community. Current information on crime statistics has been provided in a separate . report prepared by the Los Angeles Police Department , major portions of which are herein included . -8- III . METHODS CURRENTLY USED TO REGULATE "ADULT ENTERTAINMENT" BUSINESSES A . APPROACHES TO THE REGULATION OF ADULT ENTERTAINMENT BY LAND USE REGULATION Two primary methods of regulating "adult entertainment" businesses via land use regulations have developed in the United States : the concentration approach ; as evidenced bit the "Combat Zone" in Boston and the dispersal approach ; initialiy developed by Detroit . 1 . Boston Approach In Boston the "Combat Zone" was officially established by designation of an overlay Adult Entertainment District in November of :+.974 . Tho purpose of the overlay district was to create an area in which additional special uses would be permitted in designated Commercial Zones which were not permitted in these zones on -a citywide basis . The "Combat Zone " had existed unofficially for many years in Boston , as the area in question contained a majority of the "adult entertainment" facilities in the City. The ordinance was adopted in response to concern over the spreading of such uses to neighborhoods where they were deemed to be inappropriate . Other considerations included facilitating the policing of such activities and allowing those persons who do not care to he subjected to such businesses to avoid them. Under the Boston ordinance, adult bookstores and "commercial entertainment businesses" are considered conditional or forbidden uses except in the Business Entertainment- , District . Existing " adult entertainment" businesses are permitted to continue as non-conforming uses : but , if discontinued for a period of tt,!o years : may not bo re-established . Establishment of uses in areas of the city other than the "Combat Zone" requires a public hearing before tho Zoning Board of Appeals . The effectiveness and appropriateness of the Boston approach is a subject of controversy. There has been some indication that it has resulted in an increase in crime within the district and that there is an increased vacancy rate in the surrounding office buildings . Due to complaints of serious criminal incidents , law enforcement activities have been increased and a number of liquor licenses in the area have been revoked . Since the "Combat Zone" and most of the surrounding area are part of various redevelopment projects ; howevol, the change in character of the area cannot be attributed solely to the existence of "adult entertainment" businesses . In Los Angeles , the Police Department has investigated the effect of " adult entertainment" businesses in Hollywood and found a link between the clustering of these establishments and an increase in crime . ( See Section V, pages 5 . to 55 ) . For this reason , and due to the enforcement problems created by such concentrations , the Police Department is not in favor of a concentration approach in the City of Los Angeles . Public testimony at hearings and through Planning Department questionnaires has indicated an overwhelming public disapproval of- this approach for the City of Los Angeles . 2 . Detroit Approach The City of Detroit has developed a contrasting approach to the control of "adult entertainment" businesses . The Detroit Ordinance attempts to disperse adult bookstores and theaters by providing that such uses cannot, without special permission ., be located within 1000 feet of any other "regulated uses" or within 500 feet of a residentially zoned area. This ordinance was an amendment to an existing anti -skid row ordinance which attempted to prevent further neighborhood deterioration by dispersing cabarets , motels , pawnshops , billiard halls , taxi dance halls and similar establishments rather than allowing them to concentrate . The ordinance was immediately challenged and eventually was upheld by the United States Supreme Court . ( Young vs American Mini Theaters 96 Supreme Ct . 771 , 1976 . ) In response to our request , data supplied by the City of Detroit Police Department indicates that the combination of the dispersal ordinance and a related ordinance prohibiting the promotion of pornography have been an effective tool in controlling adult businesses . To date, 18 adult bookstores and 6 adult theaters have been closed . There are 51 such businesses still in operation in Detroit and 38 pending court cases for various ordinance violations . 3 . Variations Adopted by Other Cities The success of the Detroit ordinance has spurred attempts by a number of other cities to adopt similar ordinances . The uses controlled and the types of controls established by these ordinances are summarized in Tables I and II , infra. While the current study of the effect of "adult entertainment" businesses on neighborhoods in Los Angeles has encompassed all forms of "adult entertainment" , the ordinances reviewed and the Detroit Ordinance specifically; are less encompassing in scope . Table I , on the following page, lists and reviews a number of ordinances , which regulate various specified adult uses . -10- TABLE I Number of Zoning Ordinances Regulating Specified Adult Entertainment Uses ( 11 Ordinances Reviewed-I not adopted) No . of Cities USE Regulating* Adult Theaters 11 Adult Bookstores 9 Mini -theaters and coin operated facilities 5 Massage Parlors ( includes "physical culture establishments ) Modeling Studios/Body Painting 2 Pool /Billiard Halls 2 Topless Entertainment 2 Newsracks 1 Adult Motels 0 * (Numbers have incorporated-where appropriate-uses entitled "physical culture establishments " and "businesses to which.. . persons under 18 could not be admitted" . ) The Detroit dispersal ordinance: oioes not regulate massage parlors , nor does it require any existing business to close by amortization . Many of the more recent ordinances include amortization provisions and several of these are currently in varying stages of litigation . Perhaps the most comprehensive ordinance proposed to date ( although not adopted ) is that of New Fork City. The proposed ordinance creates five classes )f controlled uses , one of which is entitled "!;r,ysical cu 'C.,Are --stahlishments " and is defined -. as a general class including any establishment which offers ra»aye or other physical contact by members of the opposite sex . The ordinance would also apply to c l ubs wii:nrc the or iatary activity of such club constitutes c:ne of the Five defined classes of adult uses . The ordinance also provides for a special permit exempting individual adult uses from amortization requirements when, the Board of Standards and Appeals make findings regarding : 1 . The effect on adjacent property, 2 . Distance to nearest residential district ; 3 . The concentration that tray re,nain and its affect on the surrounding neighborhood ; 4 . That retention of the business will not interfere with any program of neighborhood preservation or renewal ; or 5 . In the case of an adult bookstore or motion picture theater, the Board finds that the harm created by the use is outweighed by its benefits . Locally, the cities of Bellflower and Norwalk have enacted ordinances requiring adult bookstores and theaters to obtain a conditional use permit . As a part of their study, the City of Bellflower surveyed over 90 cities in Southern California to determine how other cities were controlling . adult bookstores . Of the cities which responded to the Bellflower survey; 12 require a conditional use permit for new bookstores . The conditions for obtaining such a permit generally include dispersal and distance requirements based upon the Detroit model . Bellflower also includes parking requirements and the screening of windows to prevent a view of the interior; it prohibits the use of loudspeakers or sound epuipment which can be heard from public or semi-public areas . Other cities impose such controls as design review, prohibition of obscene material on signs and required identification of the business as "adult" . Such controls are a possible alternative or addition to regulation of adult uses by location . -1_2- f Exterior controls affect the aspects . of adult businesses which are most offensive to some citizens . The basis for such controls stems from the recognition of privacy as a constitutional right and jhe right to be " left alone" as a part of that right . ( See Paris Adult Theatre I v Slayton , 93 S. Ct . 2628 1973 . ) Table II ; following, - provides a comparison and description of ordinances from various cities which are regulating " adult entertainment" businesses by dispersal . 1 The theory that there should be no first amendment bar to sign controls is discussed by Charles Rembar , in "Obscenity--Forget It" , Atlantic Monthly, May 1977 , pgs . 37-41 . -13- TABLE II ORDINANCES REGULATING ADULT ENTERTAINMENT USES BY DISPERSAL DISTANCE DISTANCE FROM FROM CHURCHES CONCEN- AMORTI- APPEALS OTHER CITY USES CONTROLLED RESIDENTIAL SCHOOLS TRATION ZATION PROCEDURE CONTROLS Seattle Adult theaters yes-90 Allow only in days BM, CM, & CMT Zones; termi- nate such uses in all other zones Denver Entertainment to 500 ' which persons under 18 could not be lawfully admitted Dallas Adult shows or 1000, 1000, theaters Cleveland Adult bookstores, 1/1000, adult movies and mini-motion picture theaters, pool or billiard halls Detroit Adult bookstores, 500' 2/10001 Waiver by Ordinance .pro- adult motion petition of hibiting promo- picture theater, 51% of per- tion of pornog- mini-motion picture sons owning/ raphy theaters, cabarets, residing or hotels, motels, doing busi- pawt}shops, pool' or ness within billiard halls, 500' public lodging houses, secondhand stores, shoeshine parlors, taxi-dance halls 13-a - DISTANCE DISTANCE FROM FROM CHURCHES CONCEN- AMORTI- APPEALS OTHER CITY USES CONTROLLED RESIDENTIAL SCHOOLS TRATION ZATION PROCEDURE CONTROLS lew York Adult bookstores, 500' 2-3/ 1 year Special .Sign regulations ,not motion picture 1000 ' closest permit .Applies to clubs tdopted) theaters, "topless" to R- exception .Adult use always entertainment facil- zone must make a primary use ities, coin-operated first• findings entertainment facil- to- go ities, physical cul- ture establishments )akland Adult bookstores, 1000' 1/1000' 1-3 All .require C.U. adult movies, peep yrs. if permit shows, massage no use parlors permit Kansas Adult bookstores and 1000' 1000' Waiver, if Confined to over- :ity motion picture petition of lay C-X zone theaters, bath houses, 51% of per- within C-21 3, 4 massage shops, model- sons resid- ing studios, artists- ing or own- body painting studios ing property within 1000' of proposed use Santa Adult newsracks, book- 1000' 1/500' Public display of 3arbara stores, motion picture (& from defined material theaters parks or prohibited recreation facilities) 9ellflower Adult bookstores, 1000' 1000' (& 1/1000' By C.U. all build- theaters or mini- from parks ing openings, theaters, massage or play- entries, windows, parlors grounds) covered or screened to pre- vent view into the interior Model studios 500 ' No loud speakers or sound equip. 13-h - •i:"i,L ii tcont`d.) DISTANCE DISTANCE FROM FROM CHURCHES CONCEN- AMORTI- APPEALS OTHER CITY USES CONTROLLED RESIDENTIAL SCHOOLS TRATION ZATION PROCEDURES CONTROLS Atlantic Adult motion picture 500 , 2/1000 ' Waiver of 500 ' Requires public City theaters, .mini-theater, from resi- hearing prior to adult bookstores dential with grant of permit petitions signed by 51% Licensing of of parties massage parlors within 500' no treatment of a person of the opposite sex 13-c - B . ALTERNATE OR SUPPLEMENTARY FORMS OF REGULATION CURRENTLY AVAILABLE UNDER STATE AND MUNICIPAL LAW 1 . Red Light Abatement Procedure Red light abatement is a mechanism authorized by state law which allows local government to control criminal sexual behavior by controlling the places in which such behavior occurs . Sec . 11225 of the California Penal Code generally provides that every building or place used for illegal gambling , lewdness , assignation , or prostitution., or where such acts occur.. is a nuisance which shall be enjoined; abated; and prevented. There are three basic steps involved in the City' s application of the Red Light Abatement Procedures : ( a) A complaint is filed by the City Attorney based upon the declarations of police officers of instances of prostitution taking place on the premises . ( b ) The City attempts to obtain a preliminary injunction to shut down the business until completion of the scheduled trial . If the City succeeds ; the premises may only be re-opened as a legitimate business until the time of the trial . ( c ) At the trial , the burden is on the City to prove that prohibited acts occurred on the premises . The remedy may be closure of the premises for all purposes for one year , placing the building in the custody of the court , or an .order preventing the use of the premises for prostitution forever . Complaints may be filed by citizens , and Sec . 11228 of the Code provides that in Red Light Abatement Actions "evidence of the general reputation of a place is admissible : for the purpose of proving the existence of a nuisance" . This method has been used successfully by the City to abate adult entertainment establishments in Hollywood along Western Avenue. Although Red Light Abatement is directed at regulating sites , a Red Light Abatement conviction can affect the ability of an owner or operator to obtain a permit for a similar business at another site ( see permit requirements supra) . Due to the requirement of a court proceeding , however, this method of control is both time consuming and expensive . -14- 2 . Police Permit Requirements Section 103 of the Los Angeles Municipal Code provides fcr the regulation and control of a variety of businesses by permits issued by the Board of Police Commiss.iolers . Permittees are subject to such additional requirements as may be imposed by law or by the rules and regulation; of the Board . Those businesses for which the City of 'Los Angeles reol.-Jres a police permit and which may also be oriented tc,-wards adult entertainment include : Arcades ( Sec . 103 . 101 ) Bath and Massage ( 103 . 205 ) Ce.fe Entertainmrn nt and Shc.ws ( 103 . 102 ) Dancinq Academies , Clubs , Halls (103 . 1J5 , 106 .. 106 . 1 ) 1-',Dt on Picture Shows ( 103 . 108 ) In some cases , the specific regulations applied tc c. business , if enforced , preclude adult entertainment activities as a part of , the operation of the business , with revocation of -the operating permit an available rerred;� for violation of the regulation . The most detailed regulations are applied to ca1:c. entertainment ( Sec . 103 . 102 LAMC) and are summarized as follows : a . Businesses Subject to the Regu.� ations Operation of c.afc entertainment or show for profit , and the operation of public, places where food or beverages are so Id or riven awE-Y and cafe entertainment , shcws , still cr motion picti.res are f;ir;fished, allowed. or shlcvin . The regulation does not apple to bands or orche:st. -•as arovidinq m-11s is for canciny . b . Cafe Entertainment Defined "Every form of live entertainment , music solo bane: or orcne era. act, play, burlesque show, revue , pantcmim , scene- , song or !j;ance act " . The presence ,:,,: any wai ::ress , hostess , female attendant: or female p«tr-,n :.r• guest at.tirofl in a costume of. clot..". ir(I '-hat expo;:: 1.0 public view any portion of eithc;• br;:at�ty at or hel )w the arecla is included with the purview of the ^rdinonce . -1�- 4 C . Summary of Activities Prohibited Allowing any person for compensation or not; or while acting as an entertainer or participating in any live act or demonstration to : ( 1.) Ex-pose his or her genitals , pubic hair ; buttocks or any portion of the female breast at or below the areola . ( 2 ) Wear , use , or employ; or permit ; procure , counsel or assist another person to wear usa or employ, any device , costume or covering which gives the appearance of or simulates the genitals ; pubic hair; natal cleft ; perineum or any portion of the female breast at or blow the areola. The above provisions do not apply to a theatrical performance in a theater- , concert hall or similar establishment which is primarily devoted to theatrical performances . The permit may also be revoked for conviction of the permittee; his emp-!oyee, agent or any person associated with permittee as partner ; director , officer ; stockholde.- .. associate or manager of: ( 1 ) An offense involving the presentation , exhibition or performance of an obscene production , motion picture or play; ( 2 ) An offense involving lewd conduct ; (3 ) An offense involving use of force and violence upon the person or another ; (4) An offense involving misconduct with children ; (5 ) An offense involving maintenance of a nuisance in connection with the same or similar business operation ; or, if the permittee has allowed or permitted acts of sexual misconduct to be committed within the licensed premise . Massage businesses have traditionally been regulated by licensing . The latest changes in the massage regulations became effective in November of 1976 . The application for a permit now requires : ( 1 ) detailed information regarding the applicant ; ( 2 ) name, address of the owner and lessor of the property upon or in which the business is to be conducted, and a copy of the lease or rental agreement ; - i.6- t (3) requirement of z,. public hearing prior to issuance of a permit for the oper%-ti.on of a message business. Operating requirements for massage businesses include-z -- a permit for each massage technician? -- regulation of the hours of operation; -- posted ?.i.st of avai-lable services -r-nd their cost; •- ra record of each treatment, the name and. address of the patron, name of employee and type of treatment administered. So-called "private" clubs or "consenting c"3d`ult which have ostensibly been formed. as an alternative to massage parlors had until' recently been regul:ateC! via the requirement of a socia" club permit In JilnL 2.977 , however, the ore-inance e-stab) .ishing. such requirement was declared. unconsti.tutiona? by LrF; Angel c:s tiuncipal Court due to unreason;�bl IZ: restrictions on the freedom of association. To ante, it is unknown whethVer, the City will appeal the ru:! i.n; or `mend the ordinnnceo - 77•- 4 C. OTHER REGULATION OF ADULT ENTERTAINMENT BUSINESSES IN LOS ANGELES Regulation of adult entertainment businesses has a long history in Los Angeles . In 1915 the "prevalence of sex evils arising out of massage parlors " caused the City Council then to enact Section 27 .03 ( L . A. M. C . ) as "a safeguard against the deterio- ration of the social life of the community. " The ordinance provided : " ( a) It shall be unlawful for any person to administer , for hire or reward, to any person of the opposite sex , any massage , any alcohol rub or similar treatment , any fomentation , any bath or electric or magnetic treatment, nor shall any person cause or permit in or about his place or business or in connection with his business , any agent , employee , or servant or any other person under his control or supervision , to administer§ any such treatment to any person of the opposite sex . " . This provision remained in the Code , in one form or another , until a similar Los Angeles Cpunty ordinance was declared invalid in 1972 due to the preemption of the criminal aspects of sexual activity by the State . In reaching its conclusion , the court referred to the discussion of the Los Angeles City ordinance in In Re Maki . This 1943 case upheld the constitutional validity of the ordinance , and , according to the court , established the primary purpose of such ordinance as the limiting of criminal sexual activity. The late 1960 ' s and early 1970 ' s brought a proliferation of nude bars and sexual scam joints in the Los Angeles area . In 1969, the Cafe Entertainment regulations ( Section 103 . 102 Los Angeles Business Code ) was modified to include strict controls on nudity ( see discussion infra) . A variety of Council motions were made to control other types of "adult entertainment" such as arcades , massage parlors , and newsracks . Many of these were initiated due to substantial citizen complaints , and some resulted in final ordinances . ( See Table III pages 19a to 19d . ) 2 In Re Maki 56 CA 2d . 635 , 1943 . 3 Section 27 . 03 . 1 Los Angeles Municipal Code, 1938 . 4 Lancaster v Municipal Court 6 C 3d 805 , 1972 . -18- Beginning in 1974 , several Council motions were made generally : calling for an investigation and preparation of an ordinance regulating adult theaters and bookstores . The advice of the City Attorney was sought : and at the suggestion of that Office , action was delayed pending the Supreme Court decision regarding the Detroit Ordinance . That decision was handed down in June of 1976 . On July 13, 1976 , a Council motion was introduced by Councilman Wilkinson requesting a study of concentrations of adult entertainment similar to that of Detroit . Table III provides a generalized summary of the major Council files and actions relating to adult entertainment . While not part of this study: a recently enacted ordinance controlling on-site saie of alcoholic beverages should be recognized as an attempt to control another adult-type use . Effective March 1 , 1977 , the Los Angeles Mun.cipal Code was amended to require a conditional use permit for the on-site said of alcoholic beverages . ( Council File No . 70-200 ., City Plan Case No . 22878 ) . Although aimed at the regulation of anti -social activities in all establishments serving alcoholic beverages ; the subject ordinance would, of course; also have a "spillover" effect with regard to those businesses which have adult entertainment as well as alcoholic beverages. Generally, the ordinance would, in all cases; require: is.suanc_ of a conditional use permit for any b.usi.ness. selling a.lcoha.lic beverages for on-site Consumption, rather than the previous practice of permitting them as a matter of right in certain zones . The advantage of the new procedure is that as a prerequisite of approval of an individual. applicati.o.n, there must be a public hearing to determine whether the proposed use will have a detrimental effect upon nearby properties and the neighborhood in which it is being proposed . In the long run : the ordinance may prove to be an effective device to regulate uses (dispensing alcoholic beverages ) which tend to have a deteriorating effect on an area; some of which may, coinci dentally, also be adult --.nterta.inment businesses . -1 c.. TABLE III CITY COUNCIL FILES RELATING TO ADULT ENTERTAINMENT DATE FILE NO. SPONSORS RECOMMENDATION DISPOSITION /23/70 North Hollywood That topless and bottomless bars Disapproved by the Planning Chamber of and pornographic film and literature Commission. Commerce be confined to the M-3 zone. /71 C.F. 72-374 Councilman Effort to control bath or massage Introduction of AB 823 Snyder parlors by modifying the definition modifying the definition of of "physical therapy" in state •law. physical therapy - Died in And, City support for legislation Committee November 1972. that would make Physical Therapists, Chiropractors responsible for activities• in their offices and prohibit treatment by unlicensed assistants unless the license holder is in the room. Recommend modification of Board of State Board of Chiropractic Chiropractors Rules and Regulations. Examiners adopted "Board Rule 316" which makes chiropractors responsible for the conduct of employees • in their place of practice, and specifically prohibits sexual acts or erotic behavior involving patients, patrons or customers. 19-a - TABLE III (cont'd. ) DATE . FILE NO. SPONSORS RECOMMENDATION DISPOSITION !/74 C.F. 72-374 Stevenson and Study of the need and feasibility of 1/9/75 Board of Police S-1 Wilkinson regulating hours of operation, mini- Commissioners approved ordi- S-2 mum requirement for practitioners - nance and adopted agreement and health and safety conditions in with County to provide massage parlors. inspection of massage parlors. 19-b - TABLE III (cont'd.) DATE FILE NO. SPONSOR RECOMMENDATION DISPOSITION 10/18/74 C.F. 74-4521 Snyder, Robert Provide by Ordinance that permits may Police and Fire and Civil Stevenson, not be granted to operate motion Defense Committee referrei Ferraro picture theaters which show "adult" prepared ordinance to films or bookstores which sell -printed Planning Committee. material which may not be sold to minors at locations which are within 1,500 feet of the nearest school, playground or church. 4/21/75 C.F. 74-1969 Police permit requirement for arcades Regulation subsequently becomes effective. Regulates 5 or found unconstitutional by more coin or slug operated machines. the Appellate Department Revocation for non-compliance with of Superior Court, L.A. health, zoning, fire requirements, County. obscenity convictions. Regulates hours of operation. 1/27/76 City Planning Planning Department report to City No action taken. Commission Planning Commission, at their request, regarding proposed regulation of massage parlors and adult bookstores in Los Angeles. 3/9/76 C.F. 73-374 Council adopts ordinance requiring Ordinance now in effect. S-lA permits to operate a massage busi- ness, act as a massage technician and gives a massage for compensation effective 4/17/76. 3/23/76 C.F. 74-4521 Wilkinson and Require public hearings prior to open- Referred to Police, Fire S-2. Stevenson ing of an adult bookstore' which has and Civil Defense. for sale sexually explicit material; limit the hours of operation. - 19-0 - TABLE III (cont'd.) DATE FILE NO. SPONSOR RECOMMENDATION DISPOSITION 6/25/76 C.F. 74-4521 Wilkinson, Gibson, Request City Attorney to draft Referred to Police, Fire Nowell, Braude, an ordinance following Young vs. and Civil Defense Commit- Russell, Wachs, American Mini Theaters q ui e- tees. Stevenson,, Bernardi, nes. Farrell, Lorenzen 6/28/76 C.F. 74-4521 Stevenson, Wachs Preparation of zoning ordinance Referred to Police, Fire to prohibit sexual scam joints, and Civil Defense Commit- adult bookstores and theaters, tees. nude live entertainment within 500' from a private dwelling, church, school, public building, park or recreation cent-er, of within 1000' of each other, to be retroactive, priority to the oldest establishments. 7/13/76 C.F. 74-4.521 Wilkinson Instruct the City Planning Consolidation of above Department to prepare a report cases. After approval of to the City Council regarding full Council assigned to the extent of any possible Planning Department with degradation of neighborhoods the cooperation of other in Los Angeles, due to concen- involved agencies. tration of adult entertainment establishments. 3/15/77 C.F. 74-1969 Police, Fire and Civil Defense Adopted by full Council. Committee recommendation to amend Sections 103. 101, 103.101. 1 of the Municipal Code - (A revised ordinance to regulate arcades) . 5/5/77 C.F. 77-860 File not available Support state legislation pro- S-49 for review. viding specific penalties for use of minors for pornography. 5/11/77 C.F. 77-1997 File not available Regarding prostitution enforce- for review. ment laws. 19-d - IV . METHODOLOGY AND ANALYSIS Methodology In complying with the City Council ' s instructions , the Department has utilized various available data sources ; including property assessment data; U. S . Census data, and obtain.ed other information germane to the subject in an effort to determine, on an empirical basis , the effects ( if any) of adult entertainment facilities on surrounding business and other properties , The Department also reviewed sales data of commercial and residential property in areas containing concentrations of adult entertainment businesses and in "control areas" containing no such concentrations . The staff also attempted to secure information on the sales volume of commmercial properties , but was unable to obtain this information . It should be emphasized that., in conducting this study; every effort was made by the Department to preclude the introduction of subjec- tive judgment or other bias ; except where the opinions of other individuals or groups were . .specifically solicited . * It was the Department ' s intent to base any conclusions entirely on relevant data and other factual information which became available during the course of conducting the study. The procedure employed by the Department in conducting this study involved the following areas of emphasis : 1 . A measure of the change from 1970-76 in assessed "market value" of land and improvements for the property occupied by and within . an appropriate radius of five known "clusters" ( nodes ) of "adult entertainment" businesses . An identical measure of four "control areas" without concentrations of adult entertainment businesses was also made to determine if a significant difference in the rate of change in assessment values occurred in such areas between 1970 and 1976 . Comparisons were also made with the entire community in which the concentration nodes were located . 2 . An analysis of responses received from a mail survey questionnaire conducted by the Planning Department; * Expert opinions were requested from realtors , realty boards , appraisers and lenders through letters and questionnaires . . The Department also sent letters to local members of the American Sociological Association requesting their assistance in this study. Their replies were limited in number and not significant in terms of this study. -20- r'•a 3 . Review of available data from the U . S. censuses of 1960 and 1970, including the results of a "cluster analysis" and description of Hollywood based on such analysis prepared by the City' s Community Analysis Bureau ; 4 . An analysis of verbal and written testimony obtained at two public meetings on this subject conducted on April 27 and 28 , 1977 by representatives of the City Planning Commission ; 5 . A review of various approaches to the regulation of "adult entertainment" businesses ; including legislation enacted by other jurisdictions; 6 . An analysis of alternate forms of control ; including existing Municipal Code provisions relative to this general subject ; 7 . A discussion of earlier efforts of the City . to control adult entertainment in Los Angeles; and 8 . A presentation of the Los Angeles City Police Department ' s report dealing with crime statistics and their relation to "adult entertainment" businesses in Hollywood . 9 , The actual " last sales price" of commercial and residential properties in areas containing concentrations of "adult entertainment" -businesses were compared with the assessed values of property in such areas . The results were then compared with "control areas" containing no concentration of such businesses . ( It was found that - the actual sales prices tended to parallel assessed values and that in other cases the comparison was inconclusive : No further discussion of this aspect of the study is contained herein . ) 10 . In an attempt to determine any possible effects of "adult entertainment establishments" on business sales volume, the Department reviewed sales data from a Dun and Biradstreet computer tape file for the years 1970 and 3.976 . However, this source of date could not be used since it did not contain directly comparable information for the two years indicated . (A substantial change in the number of member firms listad apparently occurred after 1970. ) In addition ; the Department requested sales information from the City Clerk ' s Business License File . The City Clerk advised that the generation of the information requested would require 100 man-days of work; consequently their information could not be obtained within the time constraints for completion of the study. -21 Items 5 , 6, and 7 , above, are the subject of Section III of this report , entitled "Methods Currently Used to Regulate Adult Entertainment Business " . The Police Department ' s report is discussed herein as Section V . The Planning Department ' s analysis of topics 1 through 4 is described in detail , below . A . CHANGES IN ASSESSED VALUATION BETWEEN 1970-76 IN FIVE SEPARATE AREAS CONTAINING HIGH CONCENTRATIONS OF ADULT ENTERTAINMENT BUSINESSES In order to determine if there has been a significant change in assessed property values which may have been influenced by the proliferation of "adult entertainment" businesses , the Department has calculated the change in the assessed value of land and improvements for properties occupied by, and located within , a 1 , 000 to 1 ,800 foot radius of known concentrations of adult entertainment businesses . Five such areas were selected for analysis , as described below. The year 1970 was selected as the base period because of the availability of data for that year , and since that point in time corresponds approximately with the beginning of the proliferation of adult entertainment businesses in Los Angeles . The percentage change in the assessed "market" value 'of land and improvements for commercial and residential properties was calculated for the 1970 base year and for 1976 . Similar calculations covering the same time period were also prepared for "control areas" ( containing no concentration of adult entertainment businesses ) but which were similar, in terms of zoning and land use , or which were located in geographical proximity to the study area nodes . Four such control areas were selected . 1 . Study and Control Areas On the basis of field invesigations and other available data, the Department determined that there are five different areas within the City suitable for analysis , each containing a relatively high concentration of adult entertainment establishments . As shown in Exhibits "A" and "B" on the following pages , three of these concentrations (or "nodes" of activity) are located in Hollywood ; one is in Studio City; and one is in North Hollywood . In each case, the focal . point of the area selected for analysis was the intersection of two major streets , with the adult entertainment businesses located along the commercially zoned frontage of one or both of the streets forming the intersection . In four of the five areas selected, residentially zoned and developed properties are situated not farther than one-half block from the commercially-zoned frontage . (One node in Hollywood is entirely surrounded by ccmmercial properties . ) -22- ;KXH8b1T A tADULT ENTERTAINMENT STUDY, l Co. 'HOLLYWOOD AREA Col Franklin Ave.' cn Igoe 1903.01 /19.04 vd.i ollywood 81 oollol� I 70--o 90 P 1912.01 CD Sunset Blvd. C: Fountain Ave.- I Fountain Ave-1 1908 1 1909. 1911 1913 0 Santa Monica Blvd.i N' 19le— nj V*Vrr 001.'e V 1917 c 1914 E. 1915 E 0, 0., 8 E. 207 1916,02 (Melrose Ave. %/00�0- iiEi7 JARMAS OF CONCENTRATION 207 -A !THEATERS; ... ..................... 0� FW6L AREASi. Iwo 0.0 2400 W 22-a Magnolia Blvd. i� IZS 55 ADULT ENTERTAINMENT STUDY, --- - •_BY CENSUS TRACTSI NORTH HOLLYWOOD—STUDIO CITY AREAS / N� ' Ventura Frwy. Moorpark St.. Q �` ::+ :<:•, i 4 3Z o -r Valleyspring Ln.i +, o Acama o 1 1436.02 .:'y:is•,--.+.i••, / //// I L.A. City Boundary i. ejVa //// ///j/I / /i /// MASSAGE PARLORS 7 // j/////// ;BOOKSTORES/ARCADES 41 1438.028.01 :THEATERS , , iADULT MOTELS Ridgemoore, Laurie Dr ! Laurie PI., Berry,ofbonalo... a /jam-o joe / 'AREAS OF CONCENTRATION 1000 2 000 Fr %�� • ,4, `'•'j"^'5 '.CONTROL AREAS Although Main Street in downtown Los Angeles contains a relatively high concentration of sex-oriented businesses (primarily theaters, arcades and bookstores), this area was not selected for analysis since no residential properties are located in proximity thereto. In addition, Main Street has traditionally contained burlesque theaters, arcades, bars and similar types of establishments, and there has been no significant change in this generalized pattern of land use during the past ten years. In the Hollywood area, the focal points of concentration are at the following three intersections: Santa Monica Boulevard and . Western Avenue (containing 12 such businesses) ; Hollywood Boulevard and Western Avenue (9 such businesses) ; and Selmna Avenue and Cahauenga Boulevard (containing 7 such businesses) . In Studio City, the focal point is east of the main intersection of Tujunga Avenue and Vineland Avenue (at Eureka Drive) which contains six adult entertainment businesses; and in North Hollywood the focus of concentration is at Lankershim Boulevard and Vineland Avenue (containing 4 .such businesses) In the Hollywood area, property within an approximate 1,000-foot radius of the above named intesections was included for purposes of analysis. In Studio City it was appropriate to include those properties situated within an approximate 1,500 foot radius of the intersection of Eureka Drive; in North Hollywood, property within an approximate 1,500 foot radius of the intersection of Lankershim Boulevard and Vineland Avenue was selected for analysis. -23- As also shown in Exhibit "A" , three separate "control areas " were established in Hollywood, each originating at the intersection of two major streets and also encompassing all property within an approximate 1 , 000-foot radius of the street intersection . Control areas were established at : Santa Monica Boulevard and Vermont Avenue ; Hollywood Boulevard and Highland Avenue ; and Hollywood Boulevard and Gower Street . In the San Fernando Valley, Exhibit "B" indicates one control area, centered at the intersection of Lankershim Boulevard and Whipple Street, and encompassing property within a radius of approximately 1 , 500 feet of that intesection, relates to the two nodes of concentration in Studio City and North Hollywood. None of the control areas has adult entertainment businesses within its boundaries , with the exception of the area surrounding the intersection of Hollywood Boulevard and Gower Street which contains one such business . Table IV , indicates the percentage change in assessed land and improvement value from July 1970 to July 1976 for the commercial and residential property encompassed by the applicable radius surrounding each of the five nodes of concentration , together with their corresponding control areas . For purposes of comparison , the same data is shown for the entire City and for the Community within. which the study areas are located. Since concentrations of adult entertainment businesses could have a particular effect on the value of other business properties in an area, a separate tabulation is also shown for only commercial ) zoned land within each study and control area . ( Table IV- As indicated in Table IV, the 1970-76 percentage change in total assessed "market" valuation of commercially and residentially zoned property ( land plus improvements ) increased in all three areas in Hollywood containing concentrations of adult entertainment businesses . However , there was some variance in the magnitude of the increase. Changes in the three study area nodes were 2 . 79, 8 . 71 , and 3 .41 percent ; compared with increases in the three corresponding control area of 12 . 53 , 1 . 94, and 5 .09 percent , respectively. The study area node located at Santa Monica Boulevard and Western Avenue increased by 2 . 79 percent., compared with a substantially greater increase of 12 . 53 percent in the "control area" associated with that node . Total assessed value within the study area surrounding the intersection of Selma Avenue and Cahuenga Boulevard increased by 3.41 percent while the associated control area increased by the slightly greater amcunt of 5 . 09 percent . In direct contrast to this pattern , however , the Hollywood and Western node registered an 8 . 71 percent increase, while its corresponding control area increased by only 1 . 94 percent . -24- TABLE IV 1970-76 Changes in Assessed Valuation of Commercial and Residential Land and Improvements for Five Areas Containing Concentration of Adult Entertainment Businesses, as Compared With "Control" Areas, Surrounding Community, and City of Los Angeles. Property Within Approximate 1,000 to No. of Entertainment Percentage Change in Assessed 1, 800 Foot Radius of Intersection of "Sites" Valuation 1970-76 Streets Shown: 1969-70 June 1977 Land Improvements Total Santa Monica Boulevard and Western 6 12 -0.22 5.81 2.79 Avenue (Hollywood) Santa Monica Boulevard and Vermont N.A. 0 -4.84 32.66 12.53 Avenue (Hollywood Control Area) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - Hollywood Boulevard and Western 6 9 3. 51 13.21 8.71 Avenue (Hollywood) Hollywood Boulevard and Highland N.A. 0 19.32 -7. 83 1.94 Avenue (Hollywood Control Area) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Selma Avenue and Cahuenga 4 7 21.12 -12.54 3. 41 Boulevard (Hollywood) Hollywood Boulevard and Gower N.A. 1 17.76 -8.61 5.09 Street (Hollywood Control Area) Hollywood Community N.A. 31 21.20 32.72 27. 00 City of Los Angeles N.A. N.A. 35.08 38.92 37.15 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Tujunga Avenue and Ventura 1 6 67.11 63.10 64.93 Boulevard (Studio City) Lankershim Boulevard and Vineland 2 4 15. 88 9. 65 12.61 Avenue (North Hollywood) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24-a - TABLE IV (cont'd.) Property Within Approximate 1, 000 to No. of Entertainment Percentage Change in Assessed 1, 800 Foot Radius of Intersection of "Sites" Valuation 1970-76 Streets Shown: 1969-70 June 1977 Land Improvements Total Lankershim Boulevard and Whipple N.A. 0 62.28 27.66 42.76 Street (Valley Control Area) Sherman Oaks-Studio City N.A. 10 69.25 60.44 64.33 Community North Hollywood Community N.A. 5 28.59 33. 15 31.07 City of Los Angeles N.A. 212 35.08 38.92 37.15 24-b - TABLE IV-A 1970-76 Changes in Assessed Valuation of Commercially Zoned Land and Improvements for Five Areas Containing Concentration of Adult Entertainment Businesses as Compared With Commercially Zoned -Land in "Control Areas" , Surrounding Community, and City of Los Angeles. Property Within Approximate 1,000 to No. of Entertainment Percentage Change in Assessed 1,800 Foot Radius of Intersection of "Sites" Valuation 1970-76 Streets Shown: 1969-70 June 1917 Land Improvements Total Santa Monica Boulevard and Western 6 12 -0.47 8.53 3. 4 Avenue (Hollywood) Santa Monica Boulevard and Vermont N.A. 0 -12.53 4 .13 -6. 38 Avenue (Hollywood Control Area) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Hollywood Boulevard and Western 6 9 -2.52 -0.45 -1.77 Avenue (Hollywood) Hollywood Boulevard and Highland N.A. 0 25.01 -11. 19 4.06 Avenue (Hollywood Control Area) - - - - - - - - - - - .- - - -. - - Selma Avenue and Cahuenga 4 7 21.93 -18. 79 0. 54 Boulevard (Hollywood) Hollywood Boulevard and Gower N.A. 0 17. 07 -17.22 1.09 Street (Hollywood Control Area) Hollywood Community N.A. 31 13.43 -1.51 6.70 City of Los Angeles N.A. 212 12.27 13. 52 12 .93 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — -- Tujunga Avenue and Ventura 1 6 19. 24 25. 83 21.9 Boulevard (Studio City) Lankershim Boulevard and Vineland 2 4 -0.76 3.91 1.92 Avenue (North Hollywood) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24-c - TABLE IV-A (cont'd. ) Property Within Approximate 1,000 to No. of Entertainment Percentage Change in Assessed 1,800 Foot Radius of Intersection of "Sites" Valuation 1970-76 Streets Shown: 1969-70 June 1977 Land Improvements Total . Lankershim Boulevard and Whipple N.A. 0 82. 28 -6.35 27 .16 Street (Valley Control Area) Studio City Community N.A. 10 30. 95 13 .01 22. 02 North Hollywood Community N.A. 5 2.74 7 . 56 5. 21 City of Los Angeles N.A. 212 12.27 13 . 52 12. 93 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Sources/Notes - Tables IV and IV-A: Actual assessment data from which percentage changes in Tables IV and IV-A were derived is shown in Appendix A. Assessment data was obtained from the City's Land Use Planning and Management System (LUPAMS) computer file. Data is as of July 1 for years shown. "Entertainment Site" means adult theatre, arcade, massage parlor, nude dancing establishment or similar use. Number of "entertainment sites" for 1969-70 was obtained from L. A. Police Department; for June 1977 from L. A. Police Department and L. A. City Planning Department. N.A. means not available. Property included within areas described is shown in Exhibits A and B. 24-d - The percentage increase in assessed values within the three study areas . as well as the cont_-ol Ireas , was considerably less in each case than percentage gains registered by the Hollywood Community or the City as a whole . In the case of the study area nodes located in the San Fernando Valley, the pattern appears to be somewhat more spurious . The study area node containing adult entertainment businesses located in Studio City ( centered east of the intersection of Tujunga Av-enue and Ventura Boulevard ) increased by 64 . 93 percent--the largest increase of any of the areas analyzed . In direct contrast , the "adult entertainment node" located at Lankershim Boulevard and Vineland Avenue increased by only a.2 . 61 percent . The one "control area" associated with these two San Fernando Valley nodes increased b; 42 . 76 pc.-cent a substantially greater g in than the North Hollywood node. : but 22 peg^cent .. ess than the Studio Ci , nc�:�e . (Whether the sharp percentage increase shown for the Studio Ci. ty nodr, was the direct result of a recent reissessment cannot be readily determined . ) The increase in assessed value within the Studio City study area was virtually the same as that cf the entire Sherman Oaks-Studio City Community but almost twice the percentage gain for commercial and residentiai properties in the entire City. The North Hollywood study area increased by a considerably lower percentage than the North Hollywood Community and the City as a whole . With regard to commercial properties considered separately, Table IV-•A reveals that the percentage change in assessed values of land and improvements combined was g--nerally lower in ail study areas than in their corresponding control areas . One notable exception , however , is the Santa Monica Boulevard and Western Avenue node which increased by 3 . 4 percent - while its corresponding control area ( Sant: Monica and Vermont ) decreased by 6 . 38 percent . In Hollywood the change in assessed values of all study and control areas was less than in the entire Hollywood Community. In the San Fernando Valley the two study areas both increased loss than th ; entire communities within which they are situated . 2 . Conclusion Changes in Assc:ssod Valuation On the basis of the foregoing . there would seem to be sonic- basis to conclude that the E.ssessed valuation of property within the study areas containing concentrations of adult entertainment businesses have jenc;�ally t,:nded to increase to lesser degree thin Similar e.res without such concentrations . However in the staff ' s opinion there would appear to be insufficient evidence to support the contention that concentrations of sex--oriented businesses h-vc be<;n the primary cause of these patterns of change in 25- i assessed valuations between 1970 and 1976 . However, responses to the Department ' s mail questionnaires from real estate representatives and appraisers have indicated that in their opinion, concentrations of adult entertainment businesses have, in some cases , : had a direct negative impact on property values . --26- B . PUBLIC MEETINGS Two public meetings were conducted by representatives of the City Planning Commission in order to receive citizen input regarding the effects , if any: of concentrations of "adult entertainment" establishments on nearby properties and surrounding neighborhoods . Notice of the hearings was published in local newspapers ; aired on . radio; mailed to owners of commercial and multiple residential property within 500 ft . radius of the study areas and also to persons who had previously responded to the Department ' s questionnaire . The first meeting was held in Hollywood on April 27 , 1977 at Le Conte Junior High School . The second meeting was conducted in Northridge on April 28, 1977 at Northridge Junior High School . Both meetings were conducted by Planning Commission President Suzette Neiman and Planning Commissioner Daniel Garcia, with Deputy City Attorney Chris Funk also in attendance. Questionnaires were available at the meetings for the convenience of those wishing to submit their comments in writing . Attendance was approximately 200 persons at the Hollywood meeting and 300 persons at the Northridge meeting. A combined total of 60 persons addressed the Commission . The following is a summary of the comments received by the Commission . (Tape recordings of the hearings are available for review under City Plan Case Number 26475 , in the Planning Commission Office, Room 561.--K, Los Angeles , City Hall ; telephone (21.3 ) 485-5071 . ) The most prevalent type of comment at the Hollywood meeting was an expression of fear of walking in areas where "adult entertainment" and related business are concentrated . This concern was expressed both by parents, reluctant to allow their children to be exposed to offensive signs and wares , and by women and elderly persons who feared walking in the areas either in the day or evening ; because of the incidence of crime in the area. Specific instances of solicitation and other crimes were recited. Some proprietors testified that they felt their businesses have suffered, due to fear on the part of their• customers . Other common statements concerned : - Physical or economic deterioration of the area resulting from the influx of adult businesses . - An increase in street crime . - Offensive signs and displays . - A need to use existing enforcement tools such as "red light abatement" to control "adult entertainment" businesses . .27- Representatives of La Cienega art gallery proprietors expressed concern over the recent establishment of an adult theater in the area and its incompatibility with gallery use . A representative of the "Pussycat Theaters " organization informed the Commission that a survey taken by the theater operators indicated that th.e majority of patrons were middle class , that most were registered voters , -and that many were married and had college educations . It was stated that a large number of the patrons were found to reside within a few miles of their theaters . The representative of this theater chain expressed concern at. the " lumping" of all adult entertainment businesses into one classification . He felt that in terms of aesthetics , clientele , and effect upon the neighborhood , the theaters were not in the same classification as some other types of adult businesses . (The Commission requested the written documentation of the survey; however, it has not been received to date. ) Several speakers at the Northridge meeting expressed concern that the City even felt i.t needed to request their opinion on such a subject . They felt that their displeasure over the distribution and display of pornographic materials should be obvious . Citizens also indicated how they had been responsible for the closing of certain establishments in the San Fernando Valley by picketing and other means . Some speakers indicated that they were disturbed by the availability and display of obscene material in drug stores and supermarkets . The following is a summary listing of specific relevant comments from the two meetings : Hollywood Meeting (April 27 , 1977 ) - It was alleged that organized crime is in the sex service business and. that this is a $64 million local business . - Hollywood and particularly Hollywood Boulevard was once a cultural center ; now there is a different class of people . This is a degeneration of Hollywood and Hollywood Boulevard . - In Hollywood, due to fear for safety, people walk around in groups , not alone or as couples . Zoning is not the ultimate response to obscenity : there are public nuisance laws , red light abatement statutes , etc . - There was concern about the effects on children ; parents in Hollywood indicated that they did not allow their children to walk unescorted : there are too many muggings and attacks . - There are problems brought on by the changing population of the area : street fights , acts of mischief and minor property damages have resulted . -28- Severa? persons indicated that they had not walked in the area for years due to muggings, solicitations, etc. The City should make greater use of the Red Light Abatement Law. A homeowners' association r.epresentati.ve talked of being accostcd by a y i.r+. on F;o:.l ywood Bcu J.evaard; that crime was a "fa)!-cut" of -idui t entertainment; and that this was a moor,: for crimes, such es burglary, muggings, thefts anti the Like. -- Some persons were personally offended, and stated that the sex businesses ha.:ve affected residents economically and aosthati.call y. Art M-.,alzrs (fin4 art dealers; antique businesses oper:tcrs; proprietors of legitimate book stores) on La Cienega Boulevard were concerned over the proliferation of adult entertainment businesses; there are vacant stores in this area that they fear may go into use for aduit entertni.nrtiznt business. They are concerned? that La Cienega wi.l.1 no longer be a cultural center . Representatives of the Screen Actor 's Guild and Actor' s Equity i ndicntLd they had demonstrated against an adult bookstore an6 appeal.ee to the entertainment industry to help with this probl-em. - A represent .tive of the Hollywood Chamber of Commerce indicated there had been ;i0 or 70 surveys of the area, but lack of City support. He said the City should modify its C4 Zone regulations and ;.l 'mina.te movie arcades. A Stue!io City r_eal.tor indicated hc. had sent 1.1,000 replicas of the Planning Department' s ctuestionnai.res (under his letterhead) to residents of Studio City. He indicated there t7ere 6 ad.u? t motels near Universal Studios and that more were coming. A former non--adult material bookstore owner in Hollywood (past tenant _ cf location picketer: on April. 26 , 1e77) indicated that when his building was sold, his rent doubled; that c.ther tenants got three day notices (to move out) , that everybody was getting out--he c.1.ai.med something was g_)ing on in that block. fie a?.so indicated that radio station KFWB had mcv,e from the a.r.ea:. It was indicated that KFWB moved because women employees were afraid. It was also stated that a restaurant in that bui.?ding went out of business. -29•- 1 - A local minister indicated concern for the elderly, and that children from 4 to 7 years old cannot ride their bikes without being accosted ; he also indicated there had been 23 arrests for prostitution near a local elementary school ; he further stated that residents have to go to other areas to shop . A representative of a local synagogue stated that the elderly were afraid to walk to religious services and that car pooling had been established . A representative of the Hollywood Businessmen ' s Association advised that 50 percent of the sex crimes reported ( in the City) were in the Hollywood area; that since the Police have closed some sex establishments crime has dropped; that adult entertainment businesses have contributed to a deteriorating condition in Hollywood ; that there is a 100 percent turnover in school attendance; that the business license ordinance should be modified to require an environmental impact report and proper sign controls for new establishments and that notice should be given to persons within one--half mile ; he also reiterated that traditional businesses,- were leaving the area. It was indicated that property values had gone down ; Vine and Selma was valued at $12 . 50 per sq . ft . years ago, but recently it was worth only-.$8 . 50 per sq . ft . Northridge Meeting (April 28, 1977 ) - A representative of the ' North Hollywood Chamber of Commerce indicated that adult entertainment businesses were an economic and social blight; that the Police Commission was no help; that they had proposed the M3 Zone for these uses; that we need more police and should make greater use of red light abatement ; that the Alcoholic Beverage Control Department should do more .- - Claims were made that the Pussycat Theater in North Hollywood was a dangerous environment to women and children ; that in the recent past 2 teenage girls had been accosted and a woman had been attacked and had to jump from a car . - A beauty shop owner near a Pussycat Theater indicated she no longer stayed open in the evening. because her customers were afraid . - Adult entertainment businesses should be required to rent space in "Class A" buil*dings ., - Various persons objected to newsracks , obscene material , problems of congestion and ingress and egress . =30- - The Miller vs . California court case was discussed : it was contended that this case established that "a community can set its own standards" . - Questions were posed as to whether economic and financial impact should be facts needed to develop an ordinance to control adult entertainment . Claims were made that adult entertainment business bring crimes and violence to the area . A speaker stated that both the Boston and the Detroit ordinances are unacceptable . "You cannot control pornography by zoning" , and opposition to the zoning approach to obscenity was expressed . "California is the pornographic capital of the world. " People are offended by pornographic material in department stores , drug stores , supermarkets , etc . The recent Los Angeles County newsrack ordinance was discussed . One person posed the question "why don ' t we have , an Environmental Impact Report for pornographic businesses ?" Church representatives and a teacher at the Christian Schocl were concerned about their members and children being exposed to pornographic advertising displayed at the Lankershim Theater and Pussycat Theater . They are afraid to let their children out on the streets . It was stated that "we should use civil , public nuisance and red light abatement to control adult entertainment businesses . " Conclusion In summary, the overwhelming majority of speakers felt that the concentration of "adult entertainment" businesses in their neighborhood was detrimental , either physically by creating blight or economically by decreasing. patronage of traditional businesses ; or socially by attracting crime . As a result of increased crime , nearby residents have become fearful and have been forced to constrain their customary living habits in the community. Although the testimony obtained at the public hearings would from a subjective point of view, substantiate the conclusion that "adult entertainment" businesses have a deleterious effect on the surrounding community, the staff is of the opinion that legitimate questions may have been posed by the Pussycat Theater representative regarding a single classification .for all "adult entertainment" uses . There would appear to be some basis to support the contention that certain types of such uses are more "objectionable" than others , and that negative effects of a particular type of business might be minimized, depenc,ing on how the business is operated and advertised . -31 - r C SURVEY QUESTIONNAIRE CONDUCTED BY DEPARTMENT OF CITY PLANNING 1 . Description of Survey In order to determine additional factual data relating to the subject . and to seek the comments and opinions of property owners , businessmen, realtors , real estate boards , real estate appraisers ; representatives of banks ; Chambers of Commerce; and others ,' the Department. conducted a mail survey. Two questionnaires were developed . One was designed primarily for businessmen and residential property owners and is hereinafter referred to es the General Questionnaire . The second was designed fo- realt,-rs ; real estate appraisers and lenders and is hereinafter referred to as the Appraiser Questionnaire A r of the two questionnaires is contained in the Append` x The completed questionnaires , together with other letters relative to this subject : are on file in Room 51.0; Los Angeles City Ha11 . The General Questionnaire was mailed to all property owners (of other than property in single-family use) within a 500••foot radius of each of the five study areas . The questionnaire was also distributed to various community groups ( including local and area Chambers of Commerce) and at the public meeting in Hollywood and in Northridge . The Appraiser Questionnaire was mailed to all members of the American Institute of Real Estate Appraisers having a Los Angeles City address and to members of the California Association of Realtors whose office is located in the vicinity of the study areas . Each of the two questionnaires contained spaces for a respondent to check answers to a series of questions relating to the overall effect ( if any) of adult entertainment establishments on nearby properties . It should be emphasized that the Department intentionally structured the "objective response" portion of the questionnaires so as to reduce "bias" and to solicit the maximum range of responses to any specific question . For example; a respondent could check "pr,s tive "negative" or "no effect" in response to the question .1Nhat overall effect do you feel that adult entertainment establish - ments have on a neighborhood?" In addition to the direct response portion of the questionnaire, information of a more subjective nature was also solicited . For example; after each question; space was provided for a respondent to list any comments or examples which might pertain to a specific question . The beginning of each questionnaire also invited the respondent to write comments in the space provided or on a separate sheet . Between February 10 and April 30, 1977 , a total of approxi - mately 4 ,000 questionnaires were mailed ( with return envelopes provided ) or otherwise distributed to businessmen, -real estate appraisers , re2ltors : representatives of banks and savings and loan institutions , the owners of mu.ltiple-_unit residenti ?l property.. anal others . Of this number., 694 questionnaires were completed and returned to the Department ( an overall :i7 .4 percent rate of return) . In addition, the Department received A7 non-solicited , completed questionnaires from property owners in Studio City. These questionnaires were distributed in a private mailing by a private individual . The subject mailing included a replica . of the Department ' s appraiser questionnaire ; together with written material alleging City intent to create an adult entertainment zone in Studio City (copy included as Appendix D-2 ) . According to the subject individual ' s testimony at the public hearing on April 27 ; '.977 , 11 , 000 replica questionnaires were mailed . Due to the prejudicial nature of the mailing; these questionnaires are not included in the study. However , the staff did tabulate the subject responses and the tabulation and summary are included in Appendix D--3 . All persons responding to the above mailing were sent a memo from the Department , correcting the misinformation ( copy included in Appendix 0-1 ) . 2. Results of Survey Questionnaires A tabulation of the responses to the specific questions- solicited in the objective portion in each of the two types of questionnaries is presented below. A summary of the comments follows : GENERAL QUESTIONNAIRE - RESPONSES - Total no. of responses = 581 = 16% return Total no . of questionnaires 3600 Question � . What overall effect do you feel that adult entertainment :establishments have had on a neighborhood : Positive Negative No effect Effect on the business condition ( sales & profits ) in the area : 43 (7 . 4%) 492 (84 . 7% ) 36 (6 . 2% ) Fffart nn Nnmac P. _- � , t Positive Negative No effect Effect on homes ( value & 35 ( 6 . 0% ) 446( 76 . 8%) 19( 3 . 3%) appearance ) in the area located 500 feet or more from adult entertainment businesses? 2. Do you believe t-he 26 (4 . 5%) no effect 305 (52 . 5%) decreased establishment of adult property values entertainment facili - 206 ( 35 . 5%) lower rents ties in the vicinity. of your business has 275 (47 . 3%) vacant 13 (2 . 2%) increased had any of the businesses property values following effects? (Please check all 288 (49 .6%) tenants 16 (2 . 8%) lower those effects which moving out taxes you feel have occurred . ) 224 (38 . 6%) complaints 98 ( 16 . 9%) higher from customers taxes 3 ( - ) less crime 489 (84 . 2%) decreased business activity 370 ( 63 . 7%) more crime 1 ( - ) improved 8 ( 1 .4%) increased neighborhood business appearance 416 ( 71 . 6%)deteriorated 312 ( 53 . 7% ) more neighborhood litter appearance 8 ( 1 .4%) other . ( please specify) 3 . (Not applicable for tally . ) 4 . Have you seriously considered moving your business elsewhere because of nearby concentrations of adult entertainment businesses? 167 (28 . 7%) Yes 165 ( 28 .4% ) No 5 . Would you consider expanding in your current location? 83 ( 14 . 3% ) Yes 177 ( 30. 5% ) No -34- 6 . What types of adult 410 ( 70 . 6%) adult 179 ( 30 . 8%) nude or entertainment bookstores topless dancing establishments are there in your area 310 (53 . 4%) massage 389 (67 .0%) adult ( Please check parlors theatres appropriate boxes . ) 190 (32 . 7%) peep shows 240 (41 . 3%) adult motels 237 (40. 8%) bars with X-rated entertainment 3 other sex shops How far from your business is the nearest adult entertainment establishment? ( Not tabulated due to limited response . ) 35 - Responses to the foregoing questions reveal that adult entertainment businesses are perceived by the majority of respondents as exerting a negative impact on surrounding businesses and residential properties . Whether or not such negative impacts have _actually occurred , or only perceived to have occurred, cannot be . readily determined, empirically, on the basis of this survey. However, in terms of the attitudes of the respondents toward such businesses , the conclusion must be drawn that the overall effect on surrounding properties is considered to be negative. Among the adverse effects of adult entertainment establishments cited by businessmen are : - Difficulty in renting office space - Difficulty in keeping desirable tenants - Difficulty in recruiting employees - Limits hours of operation (evening hours ) - Deters patronage from women and families ; general reduced patronage Of those businessmen indicating that they have not seriously considered moving because of nearby concentrations of adult entertainment business , the most frequent response was that they had been in the area a great many years, and to establish elsewhere would be too risky and/or that their investment was too great to move. A few respondents indicated that it is the adult entertainment businesses that should move , not they. The few businessmen commenting that they would not consider expanding in their current location indicated that their business did not warrant expansion . Several businessmen indicated that their businesses are relatively unaffected by nearly adult entertainment establishments . Among the businesses cited are a commercial art studio; a building trades contractor; a mail order business; a telephone answering service and a wholesaler . Among the few positive effects cited by businessmen is the increase in business for certain non-adult entertainment businesses such as tourist-serving businesses (e . g. car rental agencies ) . "The bad effect it might have is cancelled out by the business it does attract; x-rated theaters attract tourists . " Many respondents commented on the crimes associated with adult entertainment establishments : prostitution, dope, theft , robbery, etc . A high percentage of respondents report they do not feel safe in such areas . A high percentage of respondents commented on their concern for the effects of adult entertainment environment on the morals and safety of children . A high percentage of respondents commented on the aesthetics of adult entertainment establishments : garish, sleazy; shabby, blighted, tasteless , etc . Also, many commented on the increased incidence of litter and graffiti . —37 APPRAISER QUESTIONNAIRE - RESPONSES - Total no . of responses = 81 = 20% return Total no . of questionnaires TGS Question Response 1 . What effect does the concentration increase in value 1 of adult entertainment establishments hove on the market value of business decrease in value 71 (87 . 7%) property ( land, structures , - fixtures , etc . ) located in the vicinity of such no effect 5 (6 . 2%) establishments? 2 . What effect does the concentration increase in value of adult entertainment establishments have on the rental value of business decrease in value 55 (67 . 9%) property located in the vicinity of such establishments? no effect 4 (4 . 9%) 3. What effect does the concentration of increase in rentability/ adult entertainment establishments saleability 3 (3 . 7%) have on the rentability/saleability of business property located in the decrease in rentability/ vicinity ( length of time required to saleability 48 (59 . 3%) rent or sell property; rate of lessee/ buyer turnover; conditions of sale or no effect 3 (3 . 7%) lease, etc . ) ? 4 . What effect does the concentration of increased income . 2 ( 2 . 5%) adult entertainment establishments have on the annual income of businesses decreased income 59 (72 .8%) . located in the vicinity of such establishments? no effect 7 (8 . 6%.) 5 . Have any business owners or proprietors yes 23 (28. 4%) considered relocating or not expanding their businesses because of the nearby no 4 (4 . 9%) concentration of adult entertainment establishments? not known 28 (34 . 6%) 6 . In recent years, has the commercial yes 45 (55 .6% vitality (sales , profits , etc . ) of any area in the City of Los Angeles been no 29 (35 . 8%) affected in any way by the nearby concentration of adult entertainment not known - establishments? 7 . What effect does the concentration of . adult entertainment establishments have on the market value of private residences located within the following distances from such establishments? Increase Decrease No effect Total Less than 500 feet 2 (3 . 8%) 48 (90 . 6%) 3 (5 . 7%) 53 500 - 1000 feet 2 (3 . 6%) 51 ( 91. . 1%) 3 (5 . 4%) 56 More than 1000 feet 1 ( 3%) 29 (87 . 09%) 3 (9 . 1%) 33 8 .. What effect does the concentration of adult entertainment establishments have on the rental value of residential income property located within the following distances from such establishments? Increase Decrease No effect Total Less than 500 feet 2 (3 .4%) 51. (87 . 9%) 5 (8 . 6%) 58 500 - 1000 feet 1 (2 . 6%) 33 (86 .8%) 4 ( 10 . 5%) 38 More than 1000 feet 1 ( 2 . 8%) 27 ( 75%) 8 ( 22 . 2%) 36 9 . What effect does the concentration of adult entertainment establishments have on the rentability/salep.bility of residential property located within the following distances from such establish- ments? Increase Decrease No effect Total Less than 500 feet 1 ( 2 . 5%) 37 (92 . 5%) 2 (5%) 40 500 - 1000 feet 1 ( 2 , 6%) 35 (89 . 7%) 3 (7 . 7%) 39 More than 1000 feet 1 (2 . 8%) 28 ( 77 . 8%) 1 ( 19 . 1%) 36 10 . In regard to the questions setforth above, please describe the effects which you believe the concentration of adult entertainment business has on each of the following : Property values of surrounding: Decrease Unknown No effect Increase Commercial property 45 ( 56 . 8%) 32 (39.. 5%) 1 2 ( 2 . 5%). Residential property 42 (51 . 9%) 38 (46 . 9%) - 1 General 16 ( 19 .8%) 65 (80 . 2%) - - -39-- Rental values of surrounding : Decrease No response No effect Increase Commercial property 39 (48. 1%) 42 (51 . 9%) - - Residential property 37 (45 . 7%) 44 (54 . 3%) - - General 12 ( 14 . 8%) 69 (85 . 2%) - - Vacancies Number 1 56 (69 . 1%) : .1 23 (28 . 4%) Length ?. 72 (88 . 9%) 2 (2 . 5%) 6 ( 7 . 4%) Rate of tenant turnover - 49 (60.5%) 1 31 (38 . 3%) Annual business income 24(29 . 6%) 53 (65 .4%) 2 ( 2 . 5%) 2 ( 2 . 5%) Complaints from customers and residents due to concentration Yes 24(29 . lu%) 57 (70.4%) Neighborhood appearance 24 ( 29. 6%) 3 (3 . 7%) Crime 1 1 - 48 (59 . 3%) Litter l 1 44 (54 . 3%) Other (please specify) —40— Several respondents commented that the adverse effects are related to the degree of concentration and that one free-standing business may have no effect; also, that the effect is related to the type of adult entertainment business (unspecified) . A few respondents indicated that the property value and dollar business volume for any given property would increase for businesses compatible with adult entertainment businesses , e . g . other adult entertainment businesses , bars , etc . A very high percentage of appraisers and realtors commented on the adverse effects of the subject businesses on neighborhood appearance , litter and graffiti . —41— GENERAL QUESTIONNAIRE REALTOR RESPONSES - Total no. of responses = 32 NOTE : Due to distribution, certain realtors received the General Questionnaire rather than' the Appraiser Questionnaire . For analysis purposes , the subject responses were tabulated separately and analyzed together with the, responses to the Appraiser Questionnaire . Question 1 . What overall effect do you feel that adult entertainment establishments have had on a neighborhood: Positive Negative No effect Effect on the business condition 31 (97%) 1 ( sales & profits ) in the area: Effect on homes (value & appearance) - 31 (97%) 1 in the area immediately adjacent to adult entertainment businesses : Effect on homes (value & appearance) - 29 (91%) . 2 in the area located 500 feet or more from adult entertainment businesses: 2. Do you believe the 1 ( 31 . 3%) no effect 29 (91%) decreased establishment of adult property entertainment facilities 23 (71 .9%) lower rents values in the vicinity of your business has had any 25 ( 70%) vacant 0 increased of the businesses property values following effects? ( Please check all 25 (70%) tenants 3 ( 9 . 4%) lower taxes those effects which moving out you feel have occurred . ) 25 (70%) complaints 7 (21 . 9%)higher taxes from customers 0 less crime 23 (91%) decreased business activity 26 (81 . 3%)more crime 0 increased business -42- 30 ( 94% ) deteriorated 27 (84%) more litter neighborhood appearance Other ( please specify) 3 . ( Not applicable for tally. ) 4 . Have you seriously considered riioving your business elsewhere because of nearby concentrations of adult entertainment businesses ? 10 (31 . 3%) Yes 15 (46 . 9%) No 5 . Would you consider expanding in your current location ? 10 ( 31 : 3%) Yes 12 (37 . 5% ) No 6 . What types of adult 27 (84 . 4%) adult 13 (40. 6%) nude or entertainment estab- bookstores topless dancing lishments are there in your area? 17 ( 53 . 1% ) massage 24 ( 75%) adult ( Please check parlors theatres appropriate boxes . ) 15 (46 . 9%) peep shows 15 (46 . 9%) adult ^� motels 12 ( 37 . 5%) bars with X-rated entertainment How far from your business is the nearest adult entertainment ( Not tabulated due to limited establishment? response . ) 43 - D. U . S . CENSUS AND RELATED DATA 1 . Cluster Analysis "Used by Community Analysis Bureau to Describe Various Parts of the City" The last U .S . Decennial Census was conducted on April 1 , 1970. With the proliferation of adult entertainment business it would seem appropriate to include as background information a description of the socio-economic and physical characteristics of the areas. under study, as revealed by census data . Such a description may provide insight as to the underlying factors contributing to the concentration of sex-oriented business in the areas under study. An excellent available source ' provi`ding such a description is a 1974 report prepared by the City ' s Community Analysis Bureau (CAB) concerning the "State of the City" . * In this document , the CAB has utilized a statistical technique known as "cluster analysis" to identify specific areas within the City which have common characteristics , as revealed by census data . In conducting this study, the CAB made use of 66 census data items' (or variables ) which were selected from the entire spectrum of socio-economic and physically descriptive data items available for all census tracts in .the City. The U .S . Census Bureau reports data on numerous geographical levels , the "census tract" being the smallest geographical area for Which :data is maintained and reported on a regular.-basis . There are 750 such census tract areas in the City, each containing a population of slightly fewer than 4,000 persons , on the .`average . The five study area nodes and four control - areas under study herein are contained within port'ions• of 25 census tracts . The particular variables' which most accurately describe a particular census tract were used by the Community Analysis Bureau in such a manner as to combine those areas which have the most similar characteristics . As a result of this procedure, thirty cluster groups were established throughout the City, each such cluster consisting of one or more census tracts , each census tract within a particular cluster being more similar to other parts of that cluster than to any other geographical section of the City. * The State of the City - A Cluster Analysis of Los Angeles - City of Los Angeles Community Analysis Bureau , June 1974. -44- Description of- Hollywood Area The three study areas in Hollywood containing concentrations of adult entertainment . businesses are included within portions of 11 census tracts . Their three associated "control areas" are partially contained within nine census tracts . These 20 tracts are all included within 'a- larger area identified in the CAB ' s report as "Cluster. 15" , entitled "The Apartment Dwellers" , consisting of 34 tracts . A .description of this area, as quoted from the previously cited CAB report , is set , forth below. The fact that this description is based on data which is now seven years old may not be disadvantageous , for the purposes of this study, inasmuch as adult entertainment businesses began to flourish in the 1969-70 period . " Cluster 3.5 is a lower income, predominately old apartment area located west of the Civic Center . . . " "The cluster represents a total population of 174,000, 46% male and 54% female . The median age is 40 . The area is mostly White , but does have e:n above average ethnic mix--19% Spanish-American, 3% Japanese, 2% Chinese, 3% Black . It is a cluster of workers and senior citizens . One in five residents is over 65 . Female participation in the labor force is the highest of the 30 clusters . The population under 18 is small . Many of the families are headed by women . . . " " . . . Close to seven out of ten labor active residents are white collar employed . Most completed high school and 15% completed college. At $8, 700, median family income is below the average for the City. This lower income does not translate into an abnormally high poverty distribution .-, One in ten families and a smaller proportion of unrelated individuals are welfare recipients . . . " " . . .Residents r,f the cluster are centrally located to both the Downtown and its commercial -financial strip extension, Wilshire Boulevard . Many public transit routes service the area . Close to 40% of the households have no automobile . The presence of two or more cars is not common . :Of -the older apartment complexes many have no garage facilities . . . " -45- " . . .Old apartments comprise 42% of the multiple units . One of the heaviest concentrations occurs east of Western Avenue and north of Olympic Boulevard . These are high density, closely packed, rectangular shaped, stucce units which line the streets approaching Wilshire Boulevard. South of Olympic Boulevard, the pattern remains one of multiple family units, but these are generally interspersed with homes or are the end product of converted two and three story frame hogses . Hollywood i.s similar, but is h4s several single family residential areas and apartment encroachment appears to have more of" an impact . . . " " . . .Most of the cluster ' s 102, 700 dwellings are renter occupied, including a majority of the homes . Median rent averages $108, but 17% of the multiple dwellings are available for less than $80. . . " " . . . Single family residences are a small proportion of the total housing stock and . like the area ' s apartments , many predate World . War II . Few of the essentially single family residential neighborhoods have the kind of z.ening protection which requires that 'new construction be single units . Replacement housing has tended to be large apartments . Homes averaged $26,000 in median value, which is more a factor of the land than the improvements . Much of the land west of Western Avenue adjoins the more expensive Hancock Park area . . . " " . . . Cluster 15 has one of the highest population densities in the City, 19,080 persons per square mile ; not exceptional for an apartment area. It also has the highest cluster average of elementary school transiency rates--46% for incoming students and 34% for students leaving . This mobility of the residents did not seem to affect the median sixth grade reading score . It was above the City average . The cluster has 8 park sites within its boundary and is also served by the more regional recreation areas of Echo Park , MacArthur Park and Griffith Park all of which are within access . . . " " . . .The incidence of burglary per 100 improved g y p p parcels is high , a partial reflection of the. large number of dwelling units per land parcel . One of the more disturbing aspects of the cluster is the suicide rate . Outside of Downtown, only three of the clusters had higher rates . . . " — 1G— 2 . Use of 1970 Census Data to Describe Studio City and North Hollywocd Areas There are four census tracts which comprise the Studio City study area; two such tracts in North Hollywood; and three census tracts representing the "control area" for the San Fernando Valley. (One of the "control area" tracts also forms part of the Studio City study area. ) The. CAB ' s cluster analysis reveals that these eight different census tracts are all quite dissimilar, inasmuch as the seven tracts are contained within six different "clusters" . A detailed description of each of these . six clusters would not be practical for purposes of this study. However, a summary of certain key variables attributable to the two study areas in Studio City and North Hollywood, and the one corresponding control area might be instructive , and is therefore presented in Table V following . For purposes of comparison , the data is also shown for the City as a whole. -47- TABLE V Comparison of 24 Variables from 1970 Census Describing Studio City and North Hollywood Nodes and Corresponding Control Area VARIABLES AREAS-------------AND-----------VALUES Studio City North Hollywood Control (Tujunga & (Lankershim & (Lankershim Entire Populatio.n Ventura) Vineland) & Whipple) City Population per sq . mile 5,742 8, 265 5,893 6,041 % Persons 0-1.7 18 .4 18 .2 16 . 7 30 . 2 % Persons 65+ 10. 6 17 . 9 15 . 2 10 . 1 % White (non.-Spanish) °2 .0 85 . 3 90.7 60 . 3 1/0 Black 0 0 0 17 . 2 % Spanish.-American 6 . 5 13. 7 7 . 7 18 .4 % Families w/female head 10. 6 16.4 16 . 4 16 . 2 Education % High School dropouts , 25 & older 22 . 1 38.6 25 . 3 38 . 1 % 25+ who have finished 4+ years college 22 .0 10. 2 18. 3 13 . 9 Economics Approximate median family income $15 ,672 $ 9,471 $12,575 $10, 535 % White collar employed 80.4 60.6 77 . 3 57 .4 % unemployed 7 . 8 6 . 1 9. 1_ 7 .0 % families in poverty 3 .7 10.0 6 .6 9 . 9 % families receivi:.ng welfare 4 . 3 7 . 6 4 . 7 9 . 9 % 1-unit structures 50. 6 48. 9 34 . 2 51 . 7 Approximate median value, owner occupied units $39, 141 $25,335 $35 ,530 $26, 700 Approximate median monthly rent, renter occupied units $ 135 $ 123 $ 129 $ 107 % of owner occupied, 1 unit , structures built before 1940 24 . 1 52.4 52 . 2 28 . 5 % of renter occupied, 2+ unit structures built before 1940 10.9 13 .9 21 .8 30 . 7 -4 8- TABLE V (cr,nt ' d) Comparison of 24 Variables from 1970 Census Describing Studio City and North Hollywood Nodes and Corresponding Ccntrol Area VARIABLES AREAS-------------AND-------------VALUES atudiu City Morth Hollywood Control (Tujunga & (Lankershim & (Lankershim Entire Crime Rates Ventura) Vineland) & Whipple) City Assaults per 100 population . 465 . 374 .478 .857 Robberies per 100 population lip . 267 . 170 .454 Burglary per 100 improved parcels 13 . 36i 10 , 34 13 . 5 14 . 96 Total Arrests per 100 population 4 . 23 4 . 26 4 . 10 8. 26 Narcotic Arrests per 100 population aged 14-44 2 . 66 1 . 39 1 .60 2 . 04 On the basis of thy. forgoing 1S70 Census data, it is possible to d: :,El ��p gcneral description of the two study area modes containing adult entertainment businesses in the Valley. As indicated above, such a description must necessarily be based on data P.pplying to entire census tracts , even through the study areas may encompass. only portions of tracts _ Residents of the Studio. City study area node in 1970 were predominantly an sipper middle income group, with a relatively high percentage oI' college graduates . High school dropouts were considerably below the citywide norm. Eight out of ten employed persons were in "white collar" jobs . The percentage of families receiving welfare or in poverty status was considerably below the citywide percentage . The unemployment rate was slightly higher than that of the entire city. The median value of owner occupied homes in the Studio City area was more than $12,400 higher than the City median . About one-half of the housing units were one-unit structures . ApzxtTe=it rental rates were also higher than the city as a whole . The percentage of one-unit, owner . occupied housing units built before 1940 ( 24 . 1 percent) approached the citywide median of 28 . 5 percent . With regard to crime statistics (as of 1970) , robberies per 100 population in the Studio City area were below the rate for the city as a whole ( . 172 and . 454, respectively) , although the number of burglaries per 100 improved parcels ( 13 .86) was close to the citywide rate of 14. 96 . Total arrests per 100 population (4 . 23 ) were about one-half of the 8 . 26 rate which prevailed citywide. . -49- The North Hollywood study area contrasts rather sharply with the above described Studio City area . In North Hollywood, median family income was $9,471 in 1970-- lower than the citywide median of $10, 535---and considerably lower than the $15 ,672 median income of residents in the Studio City study area. Sixty-one percent of employed persons were in "white collar" jobs in North Hollywood, compared with 80 percent in Studio City and 57 percent in the entire city. The percentage of families in a poverty status in North Hollywood was" considerably higher than in Studio City ( 10. 0 percent and 3 .7 percent , respectively) . The percent of families in North Hollywood receiving welfare was higher than in Studio City, but lr:wer than in the entire city. Unemployment rates , however, were looter iP. North Hollywod than in Studio City and the entire City. Housing values were considerably lower in North Hollywood than in Studio City;, and slightly lower than average values throughout the entire city. Median montly ren•cs were lower in North Hollywood than in Studio City but higher than in all of Los Angeles . Of all owner-occupied one-unit structures , 52 .4 percent were built prier to 1940 in the North Hollywood study area, compared with only 28 . 5 percent in the entire city. Single-family homes in North Hol"lywoed are older than in Studio City. As revealed in Table V, 1970 crimes rates for the seven variables tabulated were lower in North Hollywood than in the city as a whole . Except for "robberies per 100 population" and "total arrests per 100 population" all ether rates in North Hollywood were lower than in the Studio City study area. Tabulation of U . S . Census Trends from 1960 tc 1970 Time series ( trend) data can often be of value in identifying underlying socio-economic or physical characteristics which may have contributed to the change in an area. During the course of this study, the staff prepared a tabulation of the 1960-70 change in selected socio-economic variables as reported in the U . S . Census , covering the five study areas , the four "control " areas , and the City as a whole . This was done in order to determine if changes in the study area nodes were significantly different than. the "control areas" , or fr.m citywide norms . A tabulation of this data is contained in Appendix E . A review of this data revealed that the 1960-70 trends in the variables selected (relating to population, economics and housing ) were not significantly different for the study areas than for the "control areas" . In general , numerical or percentage changes in the data were also similar to citywide trends and no firm conclusions of particular relevance to the study could be developed . —50— V . POLICE DEPARTMENT STUDY OF HOLLYWOOD This section of the report considers the number and percentages of adult entertainment businesses in the City, changes in these businesses since 1975 and more specifically, crime rates in the Hollywood arei as compared to crime rates , citywide . The following information was compiled by the Los Angeles Police . Department and shows the incidence of certain adult entertainment establishments as of two different time periods-- November of 1975 and December 31 , 1976 . The statistics show a decrease in massage parlors , bookstores , arcades and theaters and a slight rise in adult motels . This was during the same period of time that there was stepped-up surveillance and deployment of officers in areas where concentrations of adult entertainment establishments existed . (The Hollywood community is within the West Bureau . ) This information and that which follows involving the incidence of crime in the Hollywood area provides what may be a positive correlation between crime and the presence of adult entertainment facilities . Percent TYPE OF ACTIVITY Nov . 1975 Dec . 1976 of Change Adult Motels 37— 38 + Massage Parlors 147 80 -45% Bookstores/Arcades 57 45 -2.1% Theaters 47 44 -6% TOTAL 288 207 -28% DECEMBER 31 , 1976 LOS ANGELES CITY POLICE DEPARTMENT BUREAU OF ACTIVITY AND PERCENTAGE CENTRAL SOUTH WEST VALLEY TYPE OF ACTIVITY BUREAU BUREAU BUREAU BUREAU Adult Motels 5( 13%) 23(60%) 5 ( 13%) 5 ( 13%) Massage Parlors 6 ( 7%) 4 (5%) 42 (53%) 28( 35%) Bookstores/Arcades 6( 20%) 1 ( 2%) 24 ( 53%) 11 ( 24%) Theaters 7 ( 16%) 1 2% 28 (64%) 8 18% TOTAL 27(23%) 29( 14%) 99(48%) 52(25%) -51- The information in this section is an extract from a report to the Planning Department on "The Impact of Sex Oriented Businesses on the Police Problems in the City of Lcs Angeles*" , prepared by the Los Angeles City Police Department . The City Council in instructing the Planning Department to conduct the Adult Entertainment study has also instructed other City agencies to cooperate with and contribute as necessary to the report process . In accordance with such instructions , the Police Department conducted . an analysis of the relationship between the concentration of adult entertainment establishments and criminal activity in the Hollywood area as compared to the citywide crime rates for the period beginning 1969 and ending 1975 . This period of comparison covers the years during which adult entertainment establishments appeared and proliferated in the Hollywood area. Part I crimes are those criminal acts which most severely effect their victims ; they include homicide, rape , aggravated assault , robbery, burglary, larceny, and vehicle theft . During the period of 1969 through 1975 , reported incidents of Part I crimes in the Hollywood Area increased 7 . 6 percent while the City showed a 4 . 2 percent increase . Thus , Hollywood ' s Part I crimes increased at nearly twice the rate of the City ' s increase . In conformance to the overall trend , every Part I crime committed against a person , not against property, increased at a higher rate in Hollywood Area than in the citywide total . Street robberies and 484 Purse Snatches ., wherein the victim was directly accosted by their assailant , increased by 93 . 7 percent and 51 . 4 percent , respectively; the citywide increase was 25 . 6 percent and 36 .8 percent . Suspects arrested f^r Part I criminal acts in Hollywood Area increased 1.6 . 2 percent whole the City dropped by 5 .3 percent . This reveals that Hollywood Area was 21 . 5 percent over the City ' s total in the apprehension of serious criminals during the seven year period . Equally alarming as the increase in Part I arrests , is the increase in Part II arrests (described on Table VI , pages 53-54 ) in Hollywood Area as opposed to the rest cf the City. Hollywood increased in this category by 45 . 5 percent while the City rose but 3 . 4 percent . Prostitution arrests in Hollywood Area increased at a rate 15 times greater than the city average . While the City showed a 24 . 5 percent hike, Hollywood bounded to a 372 . 3 percent increase in prostitution arrests . Similarly, pandering arrests in Hollywood Area increased by 475 . 0 percent, 3-1/2 times the city increase of 133. 3 percent . (See note p . 54 . ) *The complete report prepared by the Los Angeles City Police Department is available for review in the official files under City Plan Case Nc . 21475 in the Los Angeles City Planning Department . —52— Table VI 1.969 THROUGH 1975 SURVEY PERIOD REPORTED CRIMES AND ARRESTS Hollywood Area Citywide Part I Offenses 1969 1975 % Change 1969 1975 % Change Homicide 1e 37 +94 . 7 377 574 +52 . 3 Rape 214 199 -7 . 0 2115 1794 -.15 . 2 Agray . Assault 605 886 +46 . 5 14798 14994 +1 . 3 Robbery 905 1591 +75 . 8 .11909 14667 +23 . 2 Burglary 5695 5551. -2 . 5 65546 69480, +6 .0 Larceny 7852 8396 +6 . 9 89862 93478 +4 . 0 Autc Theft 2621 2608 -0 . 5 32149 30861 -•4 .0 TOTAL 17911 19268 +7 .6 216756 225857 +4 . 2 St . Robberies 381 738 +93 . 7 5321 6684 +25 . 6 484 Purse Snatches 185 280 +51 . 4 1951 2668 +36 .8 ARRESTS Hollywood Area Citywide Part I Offenses 1969 1975 % Change 1969 1975 % Change Homicide 21 26 +23 . 8 475 573 +20 . 6 Rape 67 47 -29 . 9 858 552 -35 . 7 Agray . Assault 239 348 +45 . 6 6250 3163 -49 .4 Robbery 368 285 -22 . 6 4855 5132 +5 . 7 Burglary 864 514 -40 . 5 7823 6032 -22 . 9 Larceny 546 1371 +151 . 1 6877 11.706 +70 . 2 Auto Theft 319 226 -29 . 2 4820 3121 •-5 . 3 TOTAL 2424 2-8.3.7 +16 .. 2 31958 30279 -5 . 3 Hollywood Area Citywide *Part II Offenses 1969 1975 % Change 1.969 1975 % Change TOTAL 10660 15503 +45 . 4 179233 185417 +3 . 4 *(Part II arrests include : other assaults , forgery and counter- feiting, embezzlement and fraud , stolen property, prostitution , narcotics , liquor laws , gambling , and other miscellaneous misdemeanors . ) Prostitution Arrests 1969 1975 % Change Hollywood Area 433 2045 +372 . 3 Citywide 2864 3564 +24 . 5 . -53- Table VI (cont ' d) Pandering Arrests 196.9 1975 % Change Hollywood Area 8 46 +475 . 0 Citywide 42 98 +133 . 3 NOTE : (The prostitution arrests made in. Hollywood Area in 1975 represents 57 . 3 percent of all arrests for prostitution made in the city. The pandering arrests made in Hollywood Area in 1975 represents 46 . 9 percent of all pandering arrests made in Los Angeles during that year . ) DEPLOYMENT Hollywood Area 1969 1975 % Change Patrol 1.97 255 +29 . 4 Investigators . 45 61 +35 . 6 TOTAL 242 316 +30. 6 Citywide 6194 7506 +21 . 1 ADULT ENTERTAINMENT ESTABLISHMENTS HOLLYWOOD AREA 1969 through 1975 1969 1975 I. Hard-core motel 3 Hard-core motels 2 Bookstores 18 Bookstores 7 Theaters 29 Theaters 1 Massage parlor/scam joint 38 Massage parlor/scam joints 11 Locations (Total ) 88 Locations (Total ) —54- HOLLYWOOD AREA 350 484 PURSE SNATCHES. 800 STREET ROBBERIES 325 750 306 700 275 650 250 600 225 550 200 500 175 450 150 400 125 350 100 300 OT T f T 69 '70 171 '72 '73 '74 '75 69 '70 171 '72 '73 '74 175 loo 1700 ALL ROBBERIES. ADULT ENTERTAINMENT ESTABLISHMENTS 1600 90 1500 80 1400 70 1300 60 1200 50 1100 40 1000 30 900 20 800 10 Ot r r t r r 1 0 69 '70 '71 '72 '73 '74 '75 69 '70 '71 172 173 '74 - 175 During the period included in this report, the Citywide deployment of police personnel rose by 21 . 2 percent . However , with the surge of crime in the Hollywood Area, deployment there increased by 30 . 6 percent , 9 . 4 percent higher than the rest of the City . Included in this figure is a 29.4 percent hike in uniformed officers and 35 . 6 percent rise in investigators to cope with the criminal elements . This survey reflects a seven-year span during which time the Adult Entertainment Establishme.nt in the Hollywood Area proliferated from a mere 11 establishments to an astonishing number of 88 such locations . The overall deleterious effect to " the entire community is evident in the statistics provided . The overwhelming increase in prostitution , robberies , assaults , thefts ' and the proportionate growth in police personnel deployed throughout Hollywood , are all representative of blighting results that the clustering of Adult Entertainment Establishments has cn the entire community. These adverse social effects not only infect the environs immediately adjacent to the parlors but creates a malignant atmosphere in which crime spreads to epidemic prop^rtions . The remaining sections of the Police Department report are letters and signature petitions from concerned businessmen , clergy, merchants , citizens and police officers and are in the file and available for inspection upon request . The following paragraph summarizes this section of the Police Department report . The police officer reports can be summarized as follows : all officers felt the sex-oriented businesses either contributed to or were directly responsible for the crime problems in the Hollywood area . The officers felt the sex shops were an open invitation to undesirables and thereby directly caused the deterioration of neighborhoods . Also, it was suggested that these businesses purposely cluster in order to establish a "strength in numbers" type effect, once they establish a foothold in a neighborhood they drive the legitimate businesses out . The letters from the businessmen , clubs , churches and concerned citizens were all in support of police efforts to close adult entertainment facilities . The letters all expressed the feeling that the sex shops attracted hom^sexuals , perverts , prostitutes and other undesirables and directly contributed to the decline cf the Hollywood area . —55— HOLLYWOOD AREA . +372.3° ED 1969 ' '045 |975 . fiHiMUnumt _ � s • ' . +700 0° > 88 § p' A A . A AkU( . », +4750 & pƒ \ p. } 433f . PANDERING PROSTITUTION ADULT ARRESTS . ARRESTS ENTERTAINMENT ESTABLISHMENTS HOLLYWOOD AREA VS. CITY OF L: A. RATE OF INCREASE 1969 - 1975 HOLLYWOOD. AREA Q 4 .4 CITY OF L.A. :°:;::;;: `•ii�! ii iiSi jjIi}ii. MII:i}!i F!i!f illi t.:l!ali,as:im i!:is i::::•:::!•::! i:i:•�i:iiiiil;!ii: n iiiii!!:i}iiii+i:: Q .iliitii' ii+'i°i �i'i?iEiiiiii: • u••i•,i�s:4siiiEsit ° `iie 'i 7.6 : iij!i!!!!!:i•�!!!i! :i!:iE•:!i:i• Mum r::s{s{i A' i!!!: !i!i:::: !:i•I!:::i;;'!I!i!: 1'ii �li+ii11!itl 4.2 °/O 1� i.i ii!.,I;!i.... ii :::••:i:•::•:!: !!!'!°!i!iii!iiiii: 2 mm. is PART I CRIMES PART I ARRESTS PART n ARRESTS Los An eles City Planning Depart►:ent Calvin S . Hamilton , Director Frank P . Lombardi , Executive Offi �:er Glenn F . Blossom, City Planning Officer Citywide Planning and Development Division Glenn 0 . Johnson , Division Head Code Studies Section Jack C . Sedwick , Senior City Planner Robert Janovici , City Planner Charles S . Rozzelle, City Planner Marcia Scully, Planning Assistant, Project Coordinator Evelyn Garfinkle, City Planning Associate Fred Hand , City Planning Associate Ronald Lewis , City Planning Associate (former project staff member) Charles Zeman , City Planning Associate Staff Support Donald S . Jacobs , Data Analysis Fred Ige , Planning Assistant Joyce Odell , Cartographer Gilbert Castro, Cartographer Barbara Reilly, Typist Corrine Gluck , Typist Mary Volz , Typist Mewland Watanabe , Typist Jeanne Crain , Typist Audrey Jones , Typist Mason Dooley, Photographer APPENDICES APPENDIX A (Sheet 1) Changes in Assessed "Market" Value of Residential and Commercial Property 1970-76; Areas of Concentration of Adult Entertain t Businessest Corresponding Control Areas, and City of Los Angeles Assessed "Market" Values Areas of Concentration Land Improvements Total ("Nodes") and Control Areas 1970 1976 1970 1976 1970 1976 Santa Monica i Western 12,955,100 12,926,800 12,945,620 13,697,620 25,900,900 26,624,420 Control Area - Santa Monica and Vermont 11,549,300 10,990,500 9,971,400 13,227,900 21,520,700 24,218,406 Hollywood i western 17,618,700 18,237,710 20,361,040 23,015,660 37,979,740 41,289,370 Control Area - Hollywood i Highland 21,956,500 26,197,880 39,051,920 35,992,140 61,008,420 62,190,020 Selma i Cahuenga 28,720,280 34,785,080 31,852,740 27,856,660 60,573,020 62,641,740 Control Area - Hollywood i Gower 14,502,880 17,078,900 13,411,880 12,256,520 27,914,760 29,335,420 Tujunga G Ventura (Studio City) 7,115,460 11,890,900 8,493,260 13,852,800 15,608,720 25,743,700 Lankershim 4 Vineland 13,789,200 15,979,306 15,287,340 16,763,160 29,076,540 32,742,460 (North Hollywood) Control Area - Lankerphin z - Whipple 11,168,200 18,169,000 14,744,280 18,823,200 25,912,480 36,992,200 Land Improvements_ Total City of L.A. 8,303,456,720 11,216,558,900 9,692,014,690 13,464,660,940 17,995,471,400 24,681,219,84 APPENDIX A (Sheet 2) Changes in Assessed "Market" Value of Commercial Pro erties, 1970-76; Areas of • Concentration of Adult Enterta nment Bus messes an Corresponding Control Areas Assessed "Market" Values Commercially Zoned Property Areas of Concentration Land Improvements Total ("Nodes") and Control Areas 1970 1976 1970 1976 1970 1976 Santa Monica 6 Western 6,093,600 6,064,600 4,606,880 4,999,800 10,700,480 11,064,400 Control Area - Santa Monica and Vermont 4,748,500. 4,153,400 2,778,900 2,893,700 7,527,300 7,047,100 Hollywood 6 Western 6,628,00 6,461,500 3,739,420 3,722,400 10,367,820 10,183,900 Control Area - Hollywood S Highland 13,547,420 16,936,300 18,608,880 16,525,640 32,156,300 33,461,940 Selma 8 Cahuenga 25,581,200 31,192,000 28,319,380' 22,998,660 53,900,580 54,190,660 Control Area - Hollywood 6 Gower 11,056,780 12,944,100 9,645,980 7,984,840 20,702,760 20,928,940 Tujunga s Ventura 1,373,000 1,637,200 941,000 1,184,100 2,314,000 2,821,300 (Studio City) Lankershim 6 Vineland 2,709,800 2,689,100 3,646,360 3,799,100 6,356,160 6,478,200 (North Hollywood) Control Area - Lankershim and Whipple 2,485,500 4,530,700 4,088,740 3,028,900 6,574,248 8,359,600 Land Improvements Total 1970 1976 1970 1976 1970 1976 City of Los Angeles 1,530,432,100 1,718,169,310 1,712,362,900 1,943,843,290 3,242,795,080 3,662,012,600 Sources City's Land Use Planning and Management System (LUPAMS) computer file i CITY OF Los ANGELES CALI FO R N I A DEPARTMENT OF CITY PLANNING COMMISSION CITY PLANNING 5151 CITY HALL SUZETTE NEIMAN .� LOS ANGELES. CALIF. 90012 PRESIDENT FRED E. CASE Y ICE•PRESIDENT CALVIN S. HAMILTON .yam DIRECTOR DANIEL P. GARCIA LESTER B. KING FRANK P. LOMBARDI LEONARD LEVY EXECUTIVE OFFICER TOM BRADLEY RAYMOND I. NORMAN - MAYOR SECRETARY APPENDIX B March 14, 1977 REQUEST FOR YOUR ASSISTANCE IN OBTAINING iNFORI4ATION REGARDING "ADULT ENTERTAINMENT ESTABLISHMENTS" The Los Angeles City Council has recently requested the Department of City Planning, in cooperation with the Police Department and other City agencies, to conduct a study concerning "adult entertainment" businesses. Because of your particular knowledge of the businesses in the vicinity of your adress, we are requesting that you answer the questions on the attached questionnaire. These questions relate to the effect of adult entertainment establishments on other businesses and neighborhoods in the surrounding area. The results of the questionnaire will be of great value to us in conducting this study. Please return your completed questionnaire in the stamped envelope provided before April 1, 1977 . If you have any questions about the study or wish to discuss this matter with Planning Department staff members, please call 485-3508 . We greatly appreciate your cooperation in assisting us in this survey. Original signed by Calvin S. Hamilton , CALVIN S. HA14ILTON Director of Planning CSH:CSR:cd 0417B/0029A AN Fouat— EMPt_OVMENT OPPORTUNITY—AFFIRMATIVE ACTION EMPLMYEsa ADULT ENTERTAINMENT QUESTIONNAIRE Los Angeles City Planning Department 14ay 9, 1977 Please answer the seven questions below by checking the appropriate spaces. Feel free to write comments in the space provided or on a separate sheet. For the purposes of this study, an adult entertainment establishment includes businesses such as: adult bookstores; nude or topless dancing establishments; massage parlors; adult theatres showing X-rated movies; "peep shows" ; so-called adult motels, and bars with X-rated entertainment. 1. What overall effect do you feel that adult entertainment establishments have on a neighborhood: Effect on the businesses condition (sales & profits) in the area: positive negative no effect Comments/Examples: Effect on homes (value & appearance) in the area immediately adjacent to adult entertainment businesses: positive negative no effect Effect on homes (values & appearance) in the area located 500 feet or more from adult entertainment businesses: positive negative a no effect Comments/Examples: (OVER) B_1 2. Do you feel the establishment of adult entertainment facilities in the vicinity of your business has had any of the following effects? (Please check all those effects which you feel have occurred. ) no effect decreased property values lower rents increased. property values vacant businesses lower taxes tenants moving out higher taxes complaints from customers decreased business activity less crime increased business more crime more litter improved neighborhood appearance deteriorated neighborhood appearance other (please specify) Please list specific examples relating to any box checked, immediately above. 3. What are the hours of operation of your business? 4. Have you seriously considered moving your business elsewhere because of nearby concentrations of adult entertainment businesses? yes no Why? 5. Would you consider expanding .in your current location? yes no; if not; why? 3- 2 - G. What types of adult entertainment establishments are there in your area? (Please check all appropriate boxes. ) adult bookstores nude or topless dancing massage parlors adult theatres peep shows adult motels bars with X-rated entertainment How far from your business is the nearest adult entertainment establishment? Thank you for your cooperation. Please return this questionnaire to: City of Los Angeles Department of City Planning 200 North Spring Street Room 513, City Hall Los Angeles, CA 90012 Name (Business) Address E-3 - CITY OF LOS ANGELES CITY PLANNING CALIFORNIA DEPARTMENT OF COMMISSION f CITY PLANNING !SUZETTE NEIMAN F Sa1 CITY HALL ►RtSIDtnT s LOS ANGELES. CALIF. 90012 FRED E. CASE VIC[.PRESIDENT CALVIN S. HAMILTON DANIEL P. GARCIA • DfRtCTOR LESTER S. KING ♦0 1 ` LEONARO LEVY �DED FRANK P. LOMBARDI [X[CUTIVE OFFIC[R TOM BRADLEY RAYMOND 1. NORMAN MAYOR s[CR[TARY APPENDIX C March 14, 1977 REQUEST FCF YCUr ASSISTANCE nT %'_-.BTAMT11-T;'-Z- IT•T `CRY11__.'_^ICIT REGAR10==ULT FN 1 iiT-vT _II.M T1 S T BLI.; hli-,IITS The Los Angeles City Czuncil has recently requested the Department of City Planning, in cooperation with the _=o.ice Department and other City • agencies, to conduct a study concerning "adult entertainment" businesses. Because of your particular lcnowled,e of the' businesses in the vicinity of your address, we are . requesting that you answer the questions on the attached questionnaire. These questions relate to the effect of adult enter- tainment establishments on other businesses and neighborhoods in the surrounding area. The results of the questionnaire will be of great value to us in conducting this study. ?lease return . your completed questionnaire in the stamped envelope provided before April 1, 1977. If you have any questions about the study or wish to discuss this matter vrith 'Tanning Department staff members, please call 435-350Z. We greatly appreciate your cooperation in assisting us in this survey. A. CALVIN S.• IAMII.,TCN Director of :Tanning CSH:CSR:imc -C- ADULT ENTERTAINMENT QUESTIONNAIRE . Los Angeles City Planning Department March 14, 1977 Please give your opinion regarding questions set forth below by checking the approp•-late spaces and providing comments in the space provided or on a sparate sheet. For the purposes of this study, "adult entertainment establishments" in- clude businesses such as: adult bookstores, nude or topless dancing estab- lishments; massage parlors; adult theatres showing X-rated movies; "peep shows"; so-called adult motels and bars with X-rated entertainment. ^` EFFECT ON SURROUNDING BUSINESSES 1. What effect does the concentration of adult entertainment establish- ments have on the market value of business property (land, structures, fixtures, etc. ) located in the vicinity of such establishments? Increase in value decrease in value no effect Comments/examples: (Please cite specific examples, including avail- able data.) 2. What effect does the concentration of adult entertainment establish- ments have on the rental value of•business property located in the vicinity of such establishments? increase in value decrease in value ho effect Comments/examples: (Please cite specific examples, including avail- able data. ) 3. What effect does the concentration of adult entertainment establish- ments have on the rentability/saleability of business property located in the vicinity (length of time required to rent or sell property; rate of lessee/buyer turnover; types of businesses of prospective lessees/buyers; conditions of sale or lease, etc. )? Increase in rentability/saleability decrease -in zentability/saleability no effect Comments/examples:. (Please cite specific examples, including available data. ) -2 4. What effect does the concentration of adult entertainment establish- ments have on the annual income of businesses. located in the vicinity of such establishments? increased income decreased income -no effect Comments/examples: (Please cite specific examples, including available data. ) 5. Have any business owners or proprietors considered relocating or not expanding their businesses because of the nearby concentration of adult entertainment establishments? Yes No Not known If yes, please indicate the specific reason, if known. 6. In recent years, has the commercial vitality (sales, profits, etc. ) of any area in the City of Los Angeles been affected in any way by the nearby concentration of adult entertainment establishments? Yes No Not known If yes, which- areas? Comments/examples: (Please cite effects and provide available data. ) C-2 -3- EFFECT ON SURROUNDING RESIDENTIAL PROPERTIES 7. What effect does the concentration of adult entertainment establish- ments have on the market value of private residences located within the following distances from such establishments? Increase Decrease No Effect Less than 500 feet, 500 1000 feet , More than 1000 feet Comments/example's: (Please cite specific examples, including available (data. ) 8. What effect does the concentration of adult entertainment establish- ments have on the rental value of residential income property located within the following distances from such establishments? Increase Decrease No Effect Less than 500 feet 500 - 1000 feet More than 1000 feet Comments/examples: (Please cite specific examples, including available data. ) 9. What effect does the concentration of adult entertainment establish- ments have on the rentability/saleability of residential property located within the following distances from such establishments? Increase Decrease No Effect Less than 500 feet 500 - 1000 feet More than 1000 feet Comments/examples: (Please cite specificexamples, including available data. ) - _ -4- OVERALL EFFECTS 10. In regard to the questions set forth above,- please describe the effects which you believe the concentration of adult entertainment businesses has on each of the following: Property values of surrounding: Commercial property _ Residential property Rental values of surrounding: i Commercial property Residential property • Vacancies Number Length Rate of tenant turnover Annual business income Complaints from customers and residents due to concentration Neighborhood appearance Crime ' Litter Other (please specify Thank you for your cooperation. Please return this questionnaire to: City of Los Angeles Department of City Planning 200 North Spring Street Room 516, City Hall Los Angeles, CA 90012 Name Organization Address Do you wish to be notified of the public hearing on this matter? Ypa Nn �• APPENDIX D-1 May 3, 1977 Concerned Members of the Public ADULT ENTERTAINMENT STUDY We wish to thank you for your interest in the above matter. Recently, residents of the Studio City area have received erroneous information regarding the activities of this Department. Specifi- cally, they have been informed that it is our intent to create an "adult entertainment zone" on Ventura Boulevard. This information is not correct. In January of this year, the Los Angeles City Council instructed the Planning Department to conduct a study to determine whether so-called "adult entertainment" establishments, where they exist in concentration, tend to have a deteriorating or blighting effect on adjacent properties and areas. Since that time, the Department staff has been evaluating data from the public and governmental agencies to determine whether evidence of such effects exists. Within the next two months, the analysis of the information gathered will be presented to the Los Angeles City Council which will make a decision as to whether adoption of regulations is appropriate. We regret that you were sent alarming erroneous information; if you have any further questions, please call my staff at 485-3508 or 485-3868. (Original signed by) CALVIN S. HAMILTON Director of Planning CSH:RJ:mw Hppenarx u—t ce°tc°t`o�s est c°°e\es F k 0` ��spo°JV°s'Des t° to o� gel' ° 40So toff e \OO ce09- z t 00% \°teM st ° c� d9eNt°co GI NM ood c°\\� % e) 00�� Ja`o G��\ ��(� V.e\ec, PN� \o e\ °< tte�d ae�. St aPO Qcess ed °\\�I'� ea•►� �bo0 gctea\eo of ched �b\\sb \°N °e °ec9 Jc e\ ott° e P `�g\a o't o°c <°° .the \edg \be ate at, . 0 ko°� s'�\\ boa to\a(A `ne°icc�JSt\3 est t`�°c seod cG° � t\o the � c�OJ c°\\° oG`\O°o °E �O�e Cps bet v� ood C:\Xl .s It oe`I FAO �S oeet%o9s e\�°c\e`I Moy Ptt°ve`Itt`ct p.Nxo o C:\\l Q�OQ,:t\\N\�t j�oR`b�d es� City oR`P' I`eot °E StJ \N 0\�� `N\'I`��SPN �a�a\boo de G Qtesca 0 �5• �aho \abec9 G\\\\'\ \��\ - � � N� o Q�Gvv \P fed 00M \-\G �S �It\ ,,0'0 PNO p.\\eo s O P/ Gtv 00 O°tt`Qh�\\`pcaoe SO sl T OFvo J P. ace Zoc\ GP�`F,9 Cl`l*l V , pta S'( �9.�acA P pp50 vd 1,00 ce cev a oe G_1 t��9 des Z;e�a% z° G��y Qco eo ��VO ��S �°gib'c a a� ecso 6\\ \\, C°ano°�c� y�ati��c,0t�e1% ���ng an Ct`a�pcga9 ace`ate fie` Vo . eao ct►°nicea�- c -tt;o c' rco o°v on ;cis (`e �aA�t`v cr" N° vo Sec°na O``d ad��` e ` ct�5,aIL s gas an 60% 1• \men APPENDIX 0-3 PRIVATELY DISTRIBUTED QUESTIONNAIRE (Note : Not a portion of Planning Department Study) - RESPONSES - Total no . of responses = 197 Question Response 1 . What effect does the concentration increase in value 2 of adult entertainment establishments have on the market value of business decrease in value 178 (90 . 4% ) property ( land, structures , fixtures , etc . ) located in the vicinity of such no effect 2 establishments? 2 . What effect does the concentration increase in value 2 of adult entertainment establishments have on the rental value of business decrease in value 169 (85 . 8% ) property located in the vicinity of such establishments? no effect 3 3 . What effect does the concentration of increase in rentability/ adult entertainment establishments saleability 2 have on the rentability/saleability of business property located in the decrease in rentability/ vicinity ( length of time required to saleability 161 (81 . 7%) rent or sell property; rate of lessees/ buyer turnover; conditions of sale or no effect 3 lease , etc . ) ? 4 . What effect does the concentration of increased income 2 adult entertainment establishments have on the annual income of businesses decreased income 149 ( 75 . 6%) located in the vicinity of such establishments? no effect 5 5 . Have any business owners or proprietors yes 71 (36 . 9%) considered relocating or not expanding their businesses because of the nearby no 4 (4 . 9%) concentration of adult entertainment establishments? not known 96 (48 . 7%) 6 . In recent years, has the commercial yes 100 (50.8%) vitality ( sales , profits , etc . ) of any area in the City of Los Angeles been no. 57 (28 . 9%) affected in any way by the nearby concentration of adult entertainment not known ( 35 . 8%) establishments? D-3- 1 a 7 . What effect does the concentration of adult entertainment establishments have on the market value of private residences located within the following distances from such establishments? . Increase Decrease No effect Total Less than 500 feet - 148 ( 100%) - 148 500 - 1000 feet - 145 ( 100%) - 145 More than 1000 feet - 142 (95 . 9%) - 148 8 . What effect does the concentration of adult entertainment establishments have on the rental value of residential income property located within the following distances from such establishments? Increase Decrease No effect Total Less than 500 feet - 143 (99 . 3%) 1 144 500 - 1000 feet - 138 (98 . 6%) 2 ( 1 . 4%) 140 More than 1000 feet - 133 (95%) 7 (50%) 140 9 . Wh'at effect does the concentration of adult entertainment establishments have on the rentability/saleability of residential property located within the following distances from such establish- ments? Increase Decrease No effect Total Less than 500 feet - 147 ( 100%) - 147 500 - 1000 feet - 141 (99 . 3%) - 142 More than 1000 feet - 141 (97 . 2%) - 145 10 . (Not tabulated) In summary, the respondents felt that the subject businesses have a decidedly adverse impact on surrounding businesses and residential properties and the large majority believe that the adverse effect extends beyond the 1000-foot radius . D-3-2 Comments indicate concern for : 1 . personal safety, e . g . assaults 2 . moral effect on children 3 . safety of property, e . g . v.andalism, robbery, etc . 4 . neighborhood appearance . Adult entertainment establishments were described variously as tawdry, tacky, garish, seedy, messy, neglected, untidy, blighted, unkempt . 5 . litter , e . g . cans, bottles , newpapers , etc . , strewn about public and private property, especially heavy after Saturday night . 6 . spillover parking into residential areas . On-site parking is often inadequate . Customers seeking anonymity park at a distance . away from any given establishment , on residential streets . 7 . graffiti on public and private property. D-3-3 APPENDIX E SANTA MONICA BOULEVARD & WESTERN AVENUE NODE CITYWIDE POPULATION 1960 1970 1960 1970 Total Population 18,484 19 ,033 2 ,479 ,015 2 ,811 ,801 Slack 38 340 334 ,916 503 , 606 Percentage 0 . 2 1 . 8 13 . 5 17 . 9 Spanish 540 3 ,833 260, 399 518 , 791 Percentage 3. 7 20. 1 10. 5 18 . 5 Median Age 42. 1 38 . 0 33 . 2 30 . 6 Persons 0-17 2, 190 3 , 126 756 ,640 849 , 246 Percentage 11 . 8 16. 4 30. 5 30. 2 Persons 65+ 2 ,437 3 , 334 253 , 993 283 , 395 Percentage 13 . 1 17 . 5 10 . 2 .10 . 1 No . of Husband & Wife Families 3 ; 153 3 , 380 545 , 109 553 , 564 No . of Unrelated Individuals 3 ,833 6 , 190 329 , 977 421 ., 701 Average Household Size 1 . 95 1 . 90 2 . 77 2 . 68 HOUSING Total Units 9, 859 101667 935 , 507 1 ,074 , 173 Singles 2,938 1 ,919 559, 745 560, 378 Percentage 30.0 18 .0 59 . 0 52 .0 Multiples 6,921 8, 748 375 , 762 510, 261 Percentage 70 . 0 82 . 0 40 . 0 47 . 4 Built Pre-1939 7, 039 5 , 736 481 , 797 328 , 988 All Occupied Units 9, 226 9 , 962 876 ,010 1 , 0249, 835 Owner 1 , 330 1 , 078 404 , 652 419 , 801 Percentage 14 . 0 11 .0 50 . 0 39 . 0 Renter 7 , 896 8, 986 471 , 358 607 , 573 Percentage 86 . 0 89 . 0 43 . 0 56 .4 ECONOMICS Median Family Income 5 ,699 7 , 713 6 ,896 10 , 535 Median School Years Completed 12 . 1 12 . 3 12 . 1 12 . 4 Median Value Owner Occupied in $ 16 ,450 25 ,825 17 ,300 26 ,700 Median Rent in $ 77 105 78 114 Total Employed 9 ,370 9, 113 126 ,276 1 , 150 , 796 Unemployed 900 912 6 , 914 86 , 802 Percentage 9 . 6 10 . 0 5 . 5 7 . 5 E-1 LANKERSHIM BOULEVARD & WHIPPLE STREET ( Valley Control Area) NODF CITYWIDE POPULATION 1960 1970 1960 1970 Total Population 5 ,.497 5 ,897 2 ,479 ,015 2 , 811 ,801 Black 9 2 334 ,916 503 , 606 Percentage 0 . 0 . 1 13 . 5 17 . 9 Spanish 100 439 260 , 399 518, 791 Percentage 1 . 8 7 . 4 10 . 5 18 . 5 Median Age 42 . 1 41 . 6 33 . 2 30 . 6 Persons 0-17 1 , 106 1 ,091 756 ,640 849 , 246 Percentage 20 . 1 18 . 5 30 . 5 30. 2 Persons 65+ 729 1 ,076 253 , 993 283 , 395 Percentage 13 . 3 18 . 2 10 . 2 10 . 1 No . of Husband & Wife Families 1 ,371 1 ,301 545 , 109 553 ., 564 No . of Unrelated Individuals 841 1 , 337 329 ., 977 421 , 701 Average Household Size 2 . 36 2 . 11 2 . 77 2 . 68 HOUSING Total Units 2, 520 2 , 865 935 , 507 1 ,074 , 173 Singles .1 , 289 1 , 082 559, 745 560, 378 Percentage 51 . 2 37 . 8 59 . 0 52 . 0 Multiples 1 , 231. 1 , 783 375 , 762 510 , 261 Percentage 48 . 8 62 . 2 40 . 0 47 . 4 Built Pre-1939 898 813 4812797 328, 988 All Occupied! Units 2,328 2 , 790 876 ,010 1 ,024 , 835 Owner 1 , 076 989 404 , 652 419 ,801 Percentage 46 . 2 35 . 4 50 .0 39 . 0 Renter 1 , 252 1 , 801 471 , 358 607 , 573 Percentage 53 . 8 64 . 6 43 . 0 56 . 4 ECONOMICS Median Family Income 8 ,086 13 , 154 6 , 896 10 , 535 Median School Years Completed 12 . 6 12 . 6 12 . 1 12 .4 Median Value Owner Occupied in $ 22 , 350 375 /00 17 , 300 26 , 700 Median Rent in $ 92 136 78 114 Total Employed 2, 574 2 , 736 1262276 1 , 150, 796 Unemployed 177 280 6 ,914 86 ,802 Percentage 6 . 9 10. 2 5 . 5 7 . 5 E-2 HOL'LYWOOD & WESTERN NODE CITYWIDE POPULATION 1960 1970 1960 1S70 Total Population. 6,860 8,438 2 ,479 ,015 2 ,811. ,801 Black 3 72 334 , 916 503 , 606 Percentage _ . 1 1.3 . 5 1.7 . 9 Spanish '1.83 0109 260, 399 518, 791 Percentage 2 .6 10 . 7 .10 . 5 18 . 5 Median Age 43 . 9 41 . 3 33 . 2 30 . 6 Persons 0-1.7 576 803 756 ,640 849 , 246 Percentage 8 . 3 9 . 4 30. 5 30 . 2 Persons 65+ 1 , 158 1. ,644 253 ,993 283 , 395 Percentage 16 . 8 19 . 4 1.0 . 2 10 . 1 No . of Husband & Wife Families 1 , 306 1 ,408 545 , 109 553, 564 No . of Unrelated Individuals 2 ,805 3 ,602 329, 977 421 , 701 . Average Household Size 1 . 76 1. . 62 2 . 77 2 . 68 HOUSING Total Units 6 , 773 8,044 935 ,507 1 ,074 , 173 Singles 764 702 559, 745 560, 378 Percentage 1.1 . 3 8 . 7 59 . 0 52 . 0 Multiples 5 , 81.8 7 , 559 375 , 762 510, 261 Percentage 85 . E 94 . 0 40 . 0 47 .4 Built Pre-•1e39 3, 731 3 ,037 481 , 797 328, 988 All Occupied Units 5 , 996 7 , 506 876, 010 1. ,024,835 Owner 394 420 404,652 419 ,801 Percentage 6 . 6 5 . 6 50. 0 39 . 0 Renter 5 ,602 7 , 137 471 , 358 607 , 573 Percentage 93 . 4 94 . 4 43 . 0 56 . 4 ECONOMICS Median Family Income 6 ,429 8, 537 6,896 10 ,535 Median School Years Completed 12 . 5 12 . 6 1.2 . 1 12 . 4 Median Value Owner Occupied in $ 22,200 37 ,333 17 ,300 26 , 700 Median Rent in $ 92 1.23 78 114 Total Employed 6, 535 6 , 745 126, 276 1 , 150, 796 Unemployed 481. 575 6 ,914 86 ,802 Percentage 7 . 4 8. 5 5 . 5 7 . 5 E 3 SANTA MONICA BOULEVARD & VERMONT AVENUE NODE CITYWIDE POPULATION 1.9EO 1970 1960 1070 Total Population 16 ,855 1.5 , 736 2 , 47S, 015 2 , 811 ,80i Black 510 . 1 , 287 334 , TJ.6 503 ,606 Percentage 3 . 0 8. 2 1.3 . 5 %7 . 9 Spanish 869 3, 936 250, 399 51.8, 79i Percentage 5 . 2 25 . 0 10 . 5 18 . 5 Median Age 38. 8 34 . 2 33 . 2 30 . 6 Persons 0-1.7 2 ,482 2, 751 756 , %c140 849 , 246 Percentage 14 . 7 17 . 5 30 , 5 30 . 2 Persons 55+ 2 , 830 2 ,432 253 ,993 2835395 Percentage 16 . 8 15 . 5 10 . 2 10 . 1 No . of Husband Wife Families 3 , 343 2, 720 545 , 109 553 ; 564 No . of Unrelated Individuals 4 ,881 4,818 329, 977 421 , 70 Average Household Size 2 . 04 2 .01 2 . 77 2 . 068 HOUSING Total Units 8,856 7 ,982 S35., 507 1 ,074 , 1.73 Singles 2 ,655 1. , 913 559 , 745 560, 378 Percentage 30 . 0 24. 0 59 . 0 52 . 0 Multiples 5 ,531. 5 , 081 375 , 762 510, 261. Percentage 62 .4 76 . 2 40 . 0 47 . 4 Built Pre-1939 6, 589 4,093 481 , 797 328,988 All Occupied Units 8, 274 7, 636 876 , 010 1 ,024,835 Owner 1 ,404 896 404 ,652 41-� , 801 Percentage 17 . 0 1.1 . 7 50 .0 39 . 0 Renter 6 , 870 6, 748 471 , 358 607 , 573 Percentage 83 .0 88 .4 43 . 0 56 . 4 ECONOMICS Median Family Income 5 , 901 8, 142 6 , 896 10 , 535 Medip.n School Years Completed 12 . 2 12 . 5 12 . 1 12 . 4 Median Value Owner Occupied in $ 15 ,975 24, 100 17 , 300 26, 700 Median Rent in $ 76 103 78 :i14 Total Employed 9,073 6, 528 126, 276 1 , 150, 796 Unemployed 595 465 6, 914 86,802 Percentage 6 .6 7 . 1. 5 . 5 7 . 5 E-4 FFLMA AVENUE CAE+'1ENCA BOULEVARC NODE CITYWIDE POPULATION 1960 c70 IS50 1c-;70 Total Population 14,886 ?.3, 827 2 , 11,79, 015 2, 811 ,801 Black 43 342 334 , 9 .6 503 , 606 Percentage . 3 2 . 5 1.3 . 5 17 . 9 Spanish . 840 1 .,822 260, 319 518, 7�1 Percentage 5 . E 1.3 . 2 10 . 5 18 . 5 Median Age 43 . 3 39 . 8 33 . 2 30 . 6 Persons 0-17 1 , 309 1 , 248 756 ,640 84S , 246 Percentage 8 . 8 9 . 0 30 . 5 30 . 2 Persons 65+ 2 ,895 2 , 712 253 ,993 283 , 395 PI.rcentagL. 19 . 5 19 . 6 10 . 2 10 . 1 No . of Husband & Wife Families 2 ,406 1 876 545 , 109 553 , 564 N c' U n ed Ind � �� ! du� ' > G 631 5 . 951 329, 977 421 , 701. Average: Household S-, ze 68 i : 60 2 . 77 2 . 68 HOUSING Total Units 1.0,022 9, 680 935 , 507 i ,Q74 , 173 Singles 1. ; 714 1. , 1.40 559 , 745 560, 378 Percentage 1.7 . 1. 11 . 8 59 . 0 52 . 0 Multiples 8., 11.0 8 , 533 375 , 762 510, 261 Percentage 80 . 9 88 . 2 40. 0 47 . 4 Built Pre-1.939 7 , 1.97 5 , 161. 481 , 797 328 , 988 All Occupied Units 8, 958 8, 658 876, 010 1. ,024,835 Owner 812 683 404,652 41S ,801 Percentage 9 . 1 7 . 9 50. 0 39 . 0 Renter 8, 164 7 ., 965 471 , 358 607 , 573 Percentage 92 . 1 43 . 0 56 . 4 EC0N0-11I'_: Median Family Income: 5 , 535 7 , 584 6 ,896 10, 535 M^dian School Years Completed 12 , 2 12 . 5 1.2 . 1 1.2 . 4 Median Velue Owner Occupied in $ 20 , 125 30 ,0925 17 , 300 26 , 700 Median Rent in $ 80 ill 78 lit" Total Employed 8, 112 E , 990 126, 276 1 , 150, 79G Unemployed 998 943 6 ,914 86 ,802 Percentage 12 , 3 13 . 5 5 . 5 7 . 5 E-5 TUJUNGA BOULEVARD & VENTURA BOULEVARD NODE CITYWIDE POPULATION! 1.960 1970 1.960 1970 Total Population 1.7 ,544 11. , 599 2 ,479,015 2 , 811 ,801. Black 50 44 334 , 916 503 , 606 Percentage . 3 . 4 -3 . 5 17 . 9 Spanish 398 758 260 ., 399 518 , 75';. Percentage 2 . 3 6 . 5 10 . 5 •1.8 . 5 Median Age 39. E 38 . 7 33 . 2 30 . 6 Persons 0-17 3 ,638 2, 137 756 ,640 849, 245 Percentage 20 .. 7 18 . 4 30 . 5 30 . 2 Persons 65+ 1. ,368 1 ., 232 253 ,0193 283, 395 Percentage 7 . 8 10 . 6 1.0 . 2 10 . 1 No . of Husband & Wife Families 4 , 526 2, E6, 545, 1.09 553, S6 No . of Unrelated Individuals 3, 100 2.,832 329, 977 421 , 701 Average Household Size 2 . 36 2 . 17 2 . 77 2 . 68 HOUSING Total Units 8, 110 5 ,529 935 ,507 i.,074 , 173 Singles 4 ,520 2 , 716 559 , 745 560, 378 Percentage 55 . 7 49 . 1 5S- . 0 52 . 0 Multiples 3; 590 2, 813 375 , 762 510, 261 Percentage 44 . 3 50. 9 40. 0 47 . 1- Built Pre-1.939 2,058 1. ,009 481 , 797 328,988 All Occupied Units 7, 548 5, 367 876,010 1. ,024 ,835 Owner 3;904 2 ,463 404 ,652 419 ,801 Percentage 51 . 4 45 . 9 50. 0 39 . 0 Renter 3,644 2 , 904 471 , 358 607 , 573 Percentage 48. 3 54 . 1 43 . 0 56 . 4 ECONOMICS Median Family Income 9. 956 15 ,672 6, 896 10, 535 Median School Years Completed 12 . 6 12 . 9 12 . 1 12 . 4 Median Value Owner Occupied in $ 23, 700 39.,650 172300 26, 700 Median Rent in $ 98 142 78 114 Total Employed 8., 800 5, 965 126, 276 1 , 150, 796 Unemployed 584 504 6 ,914 86 ,802 Percentage 6 . 7 8. 4 5 . 5 7 . 5 E-6 HOLLYWOOD BOULEVARD AND HIGHLAND AVENUE NODE CITYWIDE POPULATION 1960 1970 1960 1970 Total Population 1.1. ,438 1.2, 016 . 2, 479 ,015 2 ,811 ,801 Black 38 326 334 , 916 503 , 606 Percentage . 3 2 . 7 13 . 5 17 . 9 Spanish 357 1 ,509 260, 399 518, 791 Percentage 3 . 1 1.2.. 6 10 . 5 18. 5 Median Age 44 . 5 41 . 0 33 . 2 30 . 6 Persons 0-17 832 970 756 , 640 849, 246 Percentage 7 . 3 8. 1 30 . 5 30 . 2 Persons 65+ 2 , 281 2 , 379 253 , 993 283 , 395 Percentage 19 . 9 1.9 . 8 10 . 2 10 . 1 No . of Husband 8, Wife Families 1 , 718 1 ,606 545 , 109 553 , 564 r10 . of Unrelated Individuals 5 , 768 6,408 329, 977 421 , 701 Average Household Size 1 . 57 1 . 56 2 . 77 2 . 68 HOUSING Total Units 8, 261 8,835 935 , 507 1 ,074 , 173 Singles 1 , 169 858 559 , 745 560, 378 Percentage 14 . 2 9 . 7 59 . 0 52 . 0 Multiples 7,067 7 , 958 375 , 762 510, 261 Percentage 85 . 5 90 . 1 40 .0 47 . 4 Built Pre-1939 5 , 768 4 , 344 481 , 797 328 , 988 All Occupied Units 7 , 322 7 , 756 876,010 1 ,024 ,835 Owner 559 559 404 ,652 419 ,801 Percentage 7 . 6 7 . 2 50 . 0 39 . 0 Renter 6 , 781 7 , 197 471 , 358 607 , 573 Percentage 92 . 4 92 . 8 43 . 0 56 . 4 ECONOMICS Median Family Income 5 , 792 7 , 510 6 , 896 10, 535 Median School Years Completed 12 . 3 12 . 6 12 . 1 12 . 4 Median Value Owner Occupied in $ 23 ,000 33, 300 17 , 300 26 , 700 Median Rent in $ . 85 117 78 114 Total Employed 6 ,469 6, 177 126 , 276 1 , 150, 796 Unemployed 861 878 6 , 914 86 ,802 Percentage 13 . 3 14 . 2 5 . 5 7 . 5 E-7 r HOLLYWOOD BOULEVARD AND GOWER STREET NODE CITYWIDE POPULATION 1.960 1970 1560 1970 Total Population .7,067 2 , 342 -2 , � 79,015 2,811. ,801 Black 9 53 334 , 916 503 ,606 Percentage . 1. 2 . 3 13 . 5 17 . 9 Spanish 292 311 260, 399 518, 791 Percentage 4 . 1. 1.3 . 3 1.0 . 5 1.8 . 5 Median Acre 45 . 2 37 . 3 33 . 2 30 . 6 Persons 6-1.7 567 227 756 ,640 849 , 246 Percentage 8 . 0 9 . 7 30 . 5 30 . 2 Persons 65+ 1 ,445 325 253 , 993 283 , 395 Percentage 20 . 4 13 . 3 1.0 . 2 10 . 1 No . of Husband & L.life Families 1. , 316 336 545 ., 109 553 , 564 Nc . of Unrelated Individuals 2 , 707 1 , 155 329, 977 421 , 701. Averages Household Size 1 . 74 1 . 64 2 , 77 2 . 68 F.OUSING Total Units 4, 334 1 , 571 935, 507 1 ,074 , 173 Singles 669 226 559, 745 560, 378 Percentage 1.5 . 4 1.4 . 4 59 . 0 52 . 0 Multiples 3,463 1 , 365 375 , 762 510, 261 Percentage 84 . 6 85 . 6 40 . 0 47 . 4 Built Pre-1.939 2 , 778 726 481 , 797 328 , 988 All ' Occupied Units 3 , 924 1 ,446 876 ,010 1 ,024 ,835 Owner 345 93 404 ,652 419 ,801 Percentage 8. 8 6 . 4 50 . 0 39 . 0 Renter 3 , 579 1. , 353 471 , 358 607 , 573 Percentage 91 . 2 93 . 6 43 . 0 56 . 4 ECONOMICS Median Family Income 6, 102 8, 515 6 ,896 1.0, 535 Median School Years Completed 12 . 4 12 .4 12 . 1 12 . 4 Median Value Owner Occupied in $ 21. , 750 271) 600 17 , 300 26 , 700 Median Rent in $ 84 112 78 1.1.4 Total Employed 3 ,885 1 ,430 126, 276 1 , 150, 796 Unemployed 380 148 6, 914 8G ,802 Percentage 9 . 8 10. 3 5 . 5 7 . 5 E-8 LANKERSHIM BOULEVARD & VINLAND AVENUE NODE CITYWIDE POPULATION 1960 1970 1960 1970 Total Population 7 ,600 9 , 344 2 , 479 ,015 2 ,811 ,801 Black 1 0 334 , 91.6 503 , 606 Percentage 0 0 . 13 . 5 17 . 9 Spanish 263 146 260, 399 518, 791 Percentage 3 . 5 1 . 6 10 . 5 18 . 5 Median Age 41 . 9 38 . 7 33 . 2 30 . 6 Persons 0-1.7 1. , 551 1 ,697 756 .,640 849 , 246 Percentage 20 . 4 18 . 2 30 . 5 30 . 2 Persons 65+ 1 , 268 1 ,674 253 , 993 283 , 395 Percentage 16 . 7 17 . 9 10 . 2 10 . 1 No . of Husband & Wife Families 1 ,833 1 ,963 545 , 109 553 , 564 No . of Unrelated Individuals 1. , 325 2 , 521 329, 977 421 , 701 Average Household Size 2 . 35 1 . 70 2 . 77 2 . 68 ..._. HOUSING Total Units 3 , 558 4,897 935 , 507 1 ,074, 173 Singles 1 , 705 1 , 359 559 , 745 560, 378 Percentage 47 . 9 27 .8 59 .0 52 . 0 Multiples 1 ,853 3 , 538 375 , 762 510, 261 Percentage 52 . 1 72 . 2 40 . 0 47 . 4 Built Pre-1939 1 , 501 1 , 369 481 , 797 328 , 988 All Occupied Units 2 , 711 4,677 876,010 1 .,024 ,835 Owner 1 , 213 1 , 143 404 , 652 419 , 801 Percentage 44 . 7 24 . 4 50 . 0 39 . 0 Renter 2 ,098 3 ,534 471 , 358 607 , 573 Percentage 55 . 3 75 . 6 43 . 0 56 . 4 ECONOMICS Median Family Income 6 ,690 9, 471 6 , 896 10 , 535 Median School Years Completed 11 . 9 12 . 4 12 . 1 12 . 4 Median Value Owner Occupied in $ 17 ,800 25 ,450 17 , 300 26 , 700 Median Rent in $ 86 118 78 114 Total Employed 3,483 4 ,452 126 , 276 1 , 150, 796 Unemployed 267 291 6 , 914 86 ,802 Percentage 7 . 7 6 . 5 5 . 5 7 . 5 E-9 STAFF REPORT AMENDMENT TO ZONING REGULATIONS ADULT BUSINESSES IN C-2 ZONE WITII CONDITIONAL USE PEkMIT CASE NO. 353.015 JANUARY 9, 1978 Since 1969 , beginning on Whittier Boulevard, easterly of the 605 Freeway, the community has experienced a rapid growth of adult businesses . Beginning in the unincorporated County area with an adult bookstore, the uses have expanded to include a theater, massage parlors, and model studios, and now stretch to the central business district of Whittier. Fifteen adult businesses now exist , thirteen of which are located in the City of Whittier. On June 21 , 1977 , the City Council adopted Ordinance 2116, as an urgency measure, defining and regulating certain adult businesses through the conditional use permit process. The Council in the adoption of said ordinance declared that such uses have operational characteristics which may have a deleterious effect on immediately adjacent residential and commercial areas . The purpose of the urgency measure was to attempt to keep the situation status quo so that the issue could be studied and appropriate regulations , if necessary , be adopted in order to protect such commercial and residential areas within the City from the possible blighting or downgrading effect of adult business. Ordinance 2116 was amended on December 7, 1977 by Ordinance 2128 which added two uses to those regulated. The urgency ordinance was modeled after an ordinance of Detroit , Michiqan , which was upheld by the U. S . Supreme Court in June of 1976. Said ordinance dispersed such uses by use of separation distances from one another and from residential districts . Extensive' discussion of the Detroit Ordinance and others appears in the American Society of Planning Officials Report No. 327, "Regulating Sex Dusine:ses, " -2- a copy of which is enclosed. (Copies furnished only to the City Council, Planning Commission, and the file. The file copy may be reviewed in the office of the Planning Department. ) EXISTING USES Currently, there are adult businesses at the following locations : Address Type of Business 10529 Whittier Blvd. Model studio 10555 Whittier Blvd. Model studio 10619 Whittier Blvd. Model studio 10703 Whittier Blvd. Model studio 10705 Whittier Blvd. Book store 10711 Whittier Blvd. Model studio 10713 Whittier Blvd. Massage parlor 10824 Whittier Blvd. Massage parlor 11205 Whittier Blvd. Massage parlor 11527 6 29 Whittier Blvd. Model studio 11531 Whittier Blvd. Book store 11729 Hadley Massage parlor 7030 Greenleaf Theater The first of these, at 11729 Hadley Street, took out permits for partitions in January of 1969. The use of the building was stated as "physio-massage. " Another massage parlor opened in 1976, at 11625 Hadley, but closed shortly thereafter. Several of the businesses have in these few years, changed hands and locations. At 10510 Dorland, a permit has been requested to convert an existing residence to a model studio, and is currently awaiting dedication of street right-of-way for issuance of permit. STAFF STUDY Since June 21 , staff has been collecting and analyzing data -S- and reviewing testimonies and contacting other agencies in efforts to determine what effect adult businesses have on adjacent properties. The one major factor to keep in mind in reviewing the data, however, is that not all of it can be isolated as being directly related only to the presence of adult businesses because of the variety of the factors influencing the study areas over the last ten years. The study compared two areas on Whittier Boulevard over a ten-year period. Said areas are shown on the attached map. Area One , between Redman Avenue and Norwalk Boulevard, contains the largest concentration of adult businesses , the other, Area Four , easterly. of Painter Avenue, between Jacmar and Watson Avenues , had no commercial frontage on Whittier Boulevard, and was used as a control. Area Four was selected because of its similar street patterns , lot sizes , and number of homes, to those of the first, where the adult businesses were concentrated. The ten years compared were 1968 through 1977 (including some 1967 date where 1968 was not available) . The first adult business on Whittier Boulevard was licensed on November 29 , 1971 , but the first in the study area appeared in 1973 , and by late 1974 , more than half of the current businesses were in operation. Therefore , the end of 1973 was selected as the date to be used to compare before and after affects. The following is a summary of the results of the study, and indicates the factors considered : -4- Study Area One Study Area F'Ou Number Per cent Number Per ci!n 1. Number of homes 160 175 2. Number of businesses 1967 17 1976 19 0 3. (a) Number of changes of occupant Homes 154 96 170 97 Business 37 205 0 (b) Changes since 1973 Homes 88 57 32 19 Business 17 46 0 (Adult businesses) (7) (19) 4 . Number not changed Ilomes 67 41 79 45 Business 5 2B 0 5. Number of homes sold (a) At least once 46 28 79 45 (b) Since 1973 26 57 58 61 Average sale price 1968 S19, 100 7 18, 750 5 1969 17, 000 2 19,000 G 1970 21 ,000 2 20, 500 3 1971 25, 400 5 20,000 3 1972 20, 500 4 20,650 . 7 1973 21 , 500 2 20,500 9 1974 20, 300 4 22, 125 7 1975 26, 100 7 26,000 9 1976 31 , 100 9 30,800 14 1977 • 36, 500 H 37, 227 "Projected from G month data G. Median Home Value ( 1970) $18, 214 $18, 280 7 . Per cent owner occupied 1970 64 02 1977 04 85 0. Ages of Housing 39 years 27 years r -5- A further breakdown of the study area one, into the first and second blocks northerly of Whittier Boulevard reveals that the per- centages in items ), and 5 above, are slightly higher in the first blocks than in the second blocks by 5 to 15 per cent. Item 3 (b) , above, shows a major difference between study areas one and four of 36• (57 - 19) in number of changes in occupancy. Item 5 shows that the rate of sales of housing is about the same (57: - 611k) , but item 7 shows that the owner occupancy rate has in- creased from 64% to 84• in study area one. This trend is supported by testimony at a recent public meeting, soliciting such information . For business properties, the picture is more conclusive than for residential. Expanding items 3 and 4, above, in the business category , we find the following: Number of changes in occupancy since 1967 37 since 1973 17 Number changing more than once since 1967 12 since 1973 4 Number not changing since 1961 5 since 1973 10 Number of changes to adult businesses 7 In addition to the above data, the annual vacancy rate dropped in 1976 to the level in 1966, having increased, to a peak of three and one-half times that level in 1972. It must be noted, however, that this apparent stability is due to the fact that adult businesses mow occupy previously vacant buildings . The Whittier Police Department has, during the last few years, been collecting evidence in efforts to eliminate alleged illegal activities from the adult businesses. As a result of these efforts , r . -6- seven of the existing businesses are presently the subject of "red light abatement" action. The initial investigation and evidence gathering documented that all of the nude model studios and three of the massage parlors were actively involved in prostitution. Other problems created by the presence of these businesses are in the form of assault and battery and aggravated assault incidents. There have also been several thefts reported by the customers (johns) who are victimized by the employees. These individuals usually do not file complaints on the incidents, however, fearing that their spouses will become aware of their activities. Therefore, these incidents always do not appear on the police logs. For several years , the Police Department has received complaints of excessive noise, pornographic material left laying about and in some instances sexual offenders, such as exhibitionists, ventinq their sexual frustrations in the adjoining neighborhood. Another problem posed by the patrons of these adult businesses is the influx of drunk drivers and intoxicated persons . The majority of customers frequenting the business after 4 :00 p.m. , and until the early morning hours are males who have been drinking and are seeking sexual release. The Police Department has compiled from the daily logs for the two, four-year periods, 1970-1973 and 1974-1977, the number of incidents of 38 types of criminal activity and the data compared with the City as a whole. This comparison revealed the following numbers of incidents in the given years : 1970 - 23 1974 - 57 1971 - 29 1975 - 73 1972 - 52 1976 - 90 1973 - 29 1977 - 49 1970-73 - 133 1974-77 269 C -7- The comparison of the totals of each four-year time period shows an increase of 102% in incidents of crime in the period 1974-77 over the period 1970-73, whereas , the City as a whole for the same period, experienced only an 8. 3% increase in incidents of crime. Some specific crimes increased in greater proportions as indicated in the following figures for selected crimes : CRIME 1970-1973 1974- 1977 increase All Assaults 8 39 387 Theft (Petty) 13 29 123 Robbery 8 13 63 Burglary (Residential) 15 23 53 Malicious Mischief 3 24 700 Prostitution 3 12 300 Grand Theft Auto 5 14 180 Theft (Grand) 4 9 125 Arson 0 5 Displaying a Weapon 0 5 Prowling 0 5 Some crimes, on the other hand, decreased in frequency, such as felony narcotics , which decreased from 16 to 9, but due primarily to changes in narcotics laws. Eight other crimes decreased from one or two incidents in four years to zero to one incident in four years. Nineteen of the remaining types of crimes increased, while ten types were reported for the first time during the time period of 1974-1977 . At various public meetings, over the last several years , citizens have testified of being afraid to walk the streets , that some businesses have left the area or have modified their hours of oper- ation , and that they are fearful of children being confronted by individuals of offensive character or of being exposed to sexually explicit material. At a recent meeting, several of those who spoke, but lived some distance from the adult businesses, spoke on behalf of those who lived closer, but feared reprisals if they testified. -8- At one time, there was a general complaint from parents in the neighborhood that their minor children had been in possession of the negative portion of Polaroid film packs and although this image was not as clear as the positive portion, it clearly showed the lewd poses of the models working in the studios . Young males would rummage through the trash receptacles of the various businesses and pick up these items. It was noted during Police Department investigation of the alleged prostitution activities at these nude model studios, that they had become aware of the complaints and refused to allow Polaroid cameras in the businesses. This did not, however, stop the problem of adult newspapers obtained at the book store being left strewn in the parking areas and alleys adjacent to the businesses. Rates and numbers of changes of occupancy of residences and in- creases in complaints to the Police Department are the only measurable indicators of the moral and emotional impact of adult businesses on the surrounding neighborhood. This impact is , however, the most difficult to assess and is probably the most significant as it relates to the mental and physical well-being of the neighborhood and the City as a whole. The health, welfare , and general prosperity of the community are some of those things which facts and figures cannot adequately describe, but the protection and furtherance of which is part of the stated purpose for the development of land use regulations. An indication of the intensity of the moral and emotional impact is the unity of the residents and their willingness, through organ- izations, such as Citizens for Decency Through Law, to work for improvement of their neighborhood. This organization has been suc- cessful in eliciting support of other organizations to help in said efforts . -9- Aesthetics are a matter of personal preference, but plays an important role in effecting peoples ' attitudes . Regulations , such as the sign ordinance , may not control content or colors of buildings or signs. Typically, the adult businesses are painted in garish, high contrast colors, utilizing flashing or moving lights to attract attention to the businesses. This technique is not, however, unique to such businesses, but is quite common in marginal, strip commercial areas . It is noted that one other major strip commercial use, fast food restaurants, are beginning to change their images from the bright roofs,. big signs and giant logos , to the softer, more contem- porary, brick, wood , and tile, finding that their success does not depend entirely on their visibility . They have found that those who wish to avail themselves of the services offered will seek them out. The same philosophy could also be applied to adult businesses , allowing them to blend into other commercial neighborhoods. Dispersion or Concentration Two basic types of ordinances have been enacted by cities across the United States , dispersing or concentrating. In contrast to the Detroit ordinance , Boston created an "adult entertainment" district, concentrating adult businesses into what became known as the "combat zone. " The purpose was to concentrate adult businesses into a single small area to prevent them from spreading into other areas of the City. The Boston experience failed, however, because, according to Boston police and redevelopment spokesmen , " they (the property owners) killed the goose that laid the golden egg, " by not policing themselves . In Detroit, as in Boston, the problem was primarily in large downtown commercial districts and "skid rows. " In these areas , adult entertainment businesses mingled with pawnshops, cheap hotels, -10- bars, strip joints, etc. , as well as the "non-porno" businesses . Property owners, attracted by the high rents, willingly paid by the adult businesses, eventually forced many legimate businesses to close, move , or go broke by increasing rents . In the Hollywood area, as reported in several articles appearing in the Los Angeles Times , owners have stated that they don ' t particu- larly care for the type of business, but like the rent that will be paid by these businesses . This could be a major factor in low rent commercial areas. In the Hollywood area, the influx of adult businesses appears to have been followed by a higher vacancy rate. In West Whittier, however, the commercial area between Redman Avenue and Norwalk Boulevard, suffered from a higher vacancy rate before the commencement of adult businesses than after, but largely because adult businesses occupy those buildings which were most frequently found vacant. It could be expected that an owner of a vacant building would accept the high offers for rent with a good chance that the building would stay rented. For the purpose of determining impact of concentration of adult businesses, four areas were compared, using Polk directories from 1967 to 1977 (1966 thru 76 information) , to determine the rate of change of occupancy in adjacent residential neighborhoods before and after the introduction of adult businesses. Three of the surveyed areas contained adult businesses, the fourth, the control area, used for the entire study, included no commercial. Area one has. six adult businesses, area two has one, and area three has three . The :ollowing map shows the areas studied. The results are as follows : Changes Per Year Changes Cer Year Before A. U . ' s After A. B. ' s Area 1 9 . 4 22 ( 1974+) Area 2 . 1 . 1 (1972+) Area 3 5. 3 11 (1974+) Area 4 (Control) 20 11 (1974+) l ' -100- J.,..,.,r�i/ '1 `'l "��F•.;'(IM Mlll '�,�i . .. u.r/r.rr f ? •1 '4-J Rv0 t' w �I•r .r a u«u•• •u/ :/�/� Jl(Y. 1e.•,t, �; r. 4 /..//•.. ,�•• • i ... .. . ..................... rj ' _� _i � •aa ' d' ...• ,ram ��-�• CI••"'/•'. WHITTIER :'' �R wti;•;� ��' �yIty, ..�'tir�.•,rsy r -/%':r ••1 r,y//`(�\...-. •t •��' •� ( "f .0\. f... r -(( 1. a 1:• I•�1., r'-'+r' nova 10 Sl ,.4 K,;"s i ti♦ J, .•• � , �•,Ky� *-��1'�_ l0.�;1.L Ors j �" }. �\ ..•on..r � I rib tff' 7Y 1. /•• J� •t f-11,� i • '/r", �Morl � ,w w... ' .._..: " -:,�• �s / . ;:'•�t.4� �: ,� , ' b 1i�I ■nl.•.Il .tr• .1:"+�y' � ,1 Y� .-��.ir•-•i •r; r• j,.. i.\�Q. +�� !•:" � .•- A WAY \f e r1 v�..•' �, ARM Z{y '!I ��L�REA a „'„'...••_I •a sr //0%.Tr _ ` �••'. .,•' �'/ ,�w•..c• Y 11("_'1_- I , •4i ice.� ,•d..'{7• 1 .�,� ,r/ • \�/.''/'yr`�.n. i•. . •1 HA Y .,f• ,lal_L.;+ ,• LC :�..y r �•:.�r. '�.(1 .i H a 1''� ,,, :. i' �� s`L�:�(-♦-.-:. ��.r/.+1•,. It •''sPHIL AD( A. �'I'f:",'•;�•ly 'v �f�•[ffL� . p•i� a• •�»�• / !.�-►+7�1 ►1 �4• �:: / f ••4 b . � •• �i�/ '( •.r' .�•`y/ r � i�j .. c��Jrrfl�� ^?' ': .�. �%d�J r:r r. /; 6 ::ti �r .• 1 j a r � �.yY .o' , ...•..... ;r �' •r '` ' 1 "i' ! Il• •.::, ., ,.i�.. .,`�,"�J •o''•�•:'••'s,��r,/� � r:� . • •1 �••-u�t�'M��'{.• Il'-1'7-• �Si�^ ,+�• , I � %i,�' ',:: ,V�/�f:� ;f.� �o t•,t•�•t',` oo .• .l ^ .�^� .. u.,.t�• •t- .r a I . i 'i. ,4 � l•,:..c rl;may"/'•• !�.••' � J:,,,r,` •� tl _•^wrr....�{w.•_..r ___-•—. yr ' ,y f, ' Y'11 7 v`' s � • ' G ` r , ``, .�i �� � ._1.. ... _ _�/ � ter,l"y,`„•- (rr�•r :,.I. !! W4 ♦/ ] �' �t A��• =��• •� I•� ('.f !.`..- r_•i a•'�f'• SI. ^� a.•a ��'w` .� 9 C.'�•{ � / y :rt5 u-.r•6 :•I• r.i ��:\ fVJr• " u i�c•i�-• /• .f a •. ��W t •: '.f-S� .i Ir•.! r r • +1 ,j'' t�f,'•'a� �,� ' ..r.w:_.. T` ' .�; {r 44Jr f � •'� -]//I 'sm LQ ..y� � �1+t/• oto � .!'�\j,• y\ .t �•e° .,. /f• .-~---�- j t,,a,': ,/, �. I�•TI :� y�.•r l� :1 •'• •.'1 ✓'+i/J .`.r.•�� !�( •I(� .. ��. •w..w/_.r 7.••r.• 'r I.'.i •'d•Rr /' "1 - J. 1 ,.•' v/r' :,.r i�1;W...i > 0. ;f ,' •. �" (:v r•1•/•/ �.' Q.rq� 1� 4y •� �•�� •ri r•r�., •may,. ..' bS.'•` .. .�:. _ T/ b\\� '`{/ i '�..y�t;!•. ..t.;J,' Map of Gift W 141hi Hier �• ;•;f.�Q %: :�4'. f ,o�.,.••�;••:•`,;�,. ' xreds Stodia to •^ + ., 1, • � :y'•.•,. ��� .► •. "r'.,n.. • • •�CC--r�r�1..J.J l�. •�/rl�rf•j��• ., 'S �..� L,lelerlmn e the affefs o f advft hosInesses 017 ' I•! '��./•�1� �•,I>' ��r� ;\\4�r�r : �j.t \a��ew' .. ad •acenf properf ies I's all Ir a4 , l 'N._: `'�^r\1' 6 \a, �l•. ••. ~� •,`l•,-�� ` ... _ . •"��_�.fti�1IbJC�.fu_mil ._i� r -11- Area 1 , with a concentration of adult businesses by 1974, exper- ienced a 134♦ increase in annual turnover rate, Area 2 experienced no measurable change, Area 3, with three businesses at one location, experienced a 107% increase. The control area, with no commercial and no adult businesses , experienced a 45% decrease in turnover rate for similar periods. If dispersion is determined to be the most effective type of I control (short of prohibition) to impose on such uses to protect adjacent properties, the question then becomes how much dispersion -- how much separation between related uses and from adjacent residential uses . The Supreme Court in the Detroit case found no objection to the 1 ,000 ft. separation of "regulated businesses" and 500 feet from residential districts. As mentioned earlier, Detroit ' s ordinance was developed for a large downtown, with a skid row area. With the exception of Whittwood, the Quad, Uptown Whittier, and the industrial area, Whittier' s commercial areas are strips of shallow commercial lots along Whittier Boulevard and intersections of major streets . Almost any separation between residential districts and adult businesses eliminates these businesses from the strip commercial areas , forcing them into Uptown or the shopping centers . The issue of separation of adult businesses from schools , churches, parks, and similar public assembly areas , has also been raised and dealt with in ordinances of other municipalities . Currently, the closest adult businesses to any of these public uses is 470 ft. from a church, 300 ft. from a park , and 1, 100 ft. from a school. Any distance requirement must, however, be based on the relation- ship between distance and degree of impact. Brief discussion witli the principal of Franklin School and a representative of Whittier 12- Presbyterian Church, revealed that neither had seen any evidence of direct impacts on their institution by the adult businesses . Both were very much aware of their presence, however, and the principal at Franklin School stated that several families who have moved from the area cited the presence of said businesses. One businessman who relocated to another area in the City, stated that the businesses were not a factor but that his clients now comment on the improvement. The park referred to is McNees Park, at Whittier and Hadley, in the unincorporated County area. Whittier Police Department indicates that while the park is the scene of many arrests and source of many problems , no definite correlation can be made between the problems and its proximity to adult businesses . Only one church is within the areas where the current urgency ordinance would allow adult businesses. Other churches are within 250 feet of the area uptown where such businesses could be located. Whittier High School is also within 250 ft. of allowable location in the M zoned area and St. Mary ' s parochial school is within 500 feet. Central Park (Bailey and Washington) is also within 250 feet of property eligible for the location of adult businesses. Police records show that complaints of public drunkenness are more frequent in the areas around adult businesses where they are also in close proximity to bars and taverns which are not "bonafide eating places . " There may, therefore, be reason to separate adult businesses from businesses with certain types of on-sale alcoholic beverage permits issued by the Alcoholic Beverage Control Board. Churches , schools , and other public facilities are closed much of the time and do not present the opportunities whi.ch the parks do. The peak use hours of adult businesses are evenings, when schools , churches, and most public facilities are closed. Therefore , the -13- effect on these uses would naturally be less than on uses which were all day uses , such as parks , or which, like residences , have evening and weekend "peak use" or enjoyment times. For these reasons , it may be in the community interest to require separation between adult businesses and parks. Five hundred feet should be considered a minimum separation, as this distance can be easily walked in less than five minutes. A thousand feet would require an individual to purposely set out to walk whereas 500 feet or under can be "wandered into. " Based solely on the study of one adult business, located almost in the midst of a residential neighborhood (area 2) , and its effect on that neighborhood, it would appear that a 500 ft. separation from 'residential areas is adequate so long as the adult businesses are separated from one another to avoid concentration. Adequate separation between adult businesses would also lessen the visual or aesthetic impact of concentrations such as businesses caused by their usual garish colors and flashing signs . In addition to adult businesses , the Detroit ordinance included , when originally adopted as a skid row ordinance in 1962 , as "rtyu- laced uses, " Group "D" cabaret, establishments for the sale of beer or intoxicating liquor for consumption on the premises , hotels or motels, pawnshops , pool or billiard halls, public lodging houses, secondhand stores , shoeshine parlors, and taxi dance halls. Adult bookstores and adult theaters were added to this ordinance in 1972 . The Group "D" cabaret mentioned above is a topless or nude cabaret. Cabarets in the City of Whittier are currently regulated through a permit processed through the City Council. Other establish- ments for on-premise consumption of alcoholic beverages are currently regulated through the conditional use permit process. Pool or billiard halls , secondhand stores, and pawn shops, are permitted -14- uses in the C-2 zones and by themselves present no evidence of any deleterious effect on adjacent properties . Shoeshine parlors and taxi dance halls are more or less unique to the skid row areas of the large cities and do not exist in Whittier nor are they expected to. None of these uses are inherently attracted to one another, but all seem to be common to skid row areas . The skid row aspect of the Detroit ordinance has no bearing on Whittier' s situation and staff cannot substantiate the need for any further regulation of those uses which are not classified as adult businesses . In some areas, adult only motels and hotels have been established, featuring closed circuit TV showing pornographic movies as well as providing other "services ," similar to the adult businesses discussed above . Staff feels that the likelihood of this type of business occurring in Whittier is not too great as these are more prevalent in areas of high transient traffic. Rather than attempt to define .such a use in anticipation of its occurring, the proposed definition of adult businesses should provide adequate control over such a use. Definitions Defining an "adult business" is difficult, particularly when trying to separate them from other uses with similar names . The current urgency ordinance uses as its base, the definitions which appear in the Detroit ordinance with minor modifications . The key to the Detroit definitions is the "specified anatomical areas" and "sexual activities. " However, such terminology is not immediately applicable to such uses as modeling studios, massage parlors, body painting studios, escort service , rap centers, and similar uses which utilize live humans for providing services. These uses differ from theaters and bookstores in that the latter uses reproductions of humans and the "specified anatomical areas" can be easily applied. -15- In defining individual adult businesses , the folloKing have been used: "Adult Book Store" shall mean an establishment having as a sub- stantial or significant portion of its stock in trade, material which is distinguished or characterized by its emphasis on matter depicting, describing, or relating to specified sexual activity or specified anatomical areas, or an establishment with a segment or section thereof devoted to the sale or display of such material. "Adult Business" shall mean and include an adult book store, adult theater, massage parlor, or modeling studio. "Adult Theater" shall mean a theater which presents live entertainment or motion pictures or slide photographs , which are distinguished or characterized by their emphasis on matter depicting, describing, or relating to specified sexual activity, or specified anatomical areas. "Massage Parlor" shall mean an establishment or business which is required to be licensed pursuant to Section 6200 et sey of the Whittier Municipal Code. "Material" shall mean, and include, but not be limited to , books , magazines, photographs, prints, drawings , or paintings , motion pictures, and pamphlets, or any combination thereof. "Adult Modeling Studio" shall mean an establishment or business which provides the services of modeling for the purpose of re- producing the human body wholly or partially in the nude by means i r -16- of photography, painting, sketching, drawing, or otherwise . "Specified Anatomical Areas" shall mean: (a) less than completely and opaquely covered: ( i) human genitals, pubic region; (ii) buttock , and (iii) female breast below a point immediately above the top of the areola; and (b) human male genitals in a discernibly turgid state, even if completely and opaquely covered. "Specified Sexual Activities" shall mean (a) human genitals in a state of sexual stimulation or arousal; and/or (b) acts of human masturbation, sexual stimulation or arousal; and/or (c) fondling or other erotic touching of human genitals, pubic region, buttock, or female breast. In the Detroit case, the phrase "distinguished or characterized by an emphasis on matter depicting. . . " was attached as vague . But, since there was no question in the Detroit case as to whether the material was "distinguished or characterized by an emphasis on matter depicting, " the court did not rule on the vagueness of such a defin- ition. A similar vagueness is found in the definition of adult bookstore where the phrase reads , "an establishment with a segment or section devoted to the sale or display of such material. " The City 's urgency ordinance narrows the vagueness some by using the phrase, "substantial or significant portion of its stock in trade. . . depicting . . . . " Such words as substantial, significant, distinguished by, segment and section usually require the courts to provide the narrowing. A number of cities define adult businesses as : J'. -17- . .any business which is conducted exclusively fo.r the patronage of adults, from the premises of which minors are specifically excluded, either by law or by the operation of such business . " Such a definition will generally encompass any use which the City is attempting to regulate and gets around the touchy question of content of material, relying on existing State and local regulations . These regulations are briefly discussed below. The Whittier Municipal Code, Section 6288, prohibits giving a massage to or admitting any person under 18 years of age into a massage parlor unless parent or guardian has consented . thereto in writing. Minors are currently excluded specifically from adult bookstores and adult theaters by Section 313 . 1 of the Penal Code of the State of California because of the "harmful" content of the material available. Section 309 of the Penal Code prohibits admitting minors into places of prostitution, but the law does not prohibit admitting a minor to view the Physical body and photograph it for .his own use. In this case, the exclusion is imposed by the management of the busi- ness who is not required by law to do so but does so out of fear of the possibility of being found guilty of contributing to the de- linquency of a minor pursuant to Section 272 of the Penal Code . The difficulty at this point in time with a general definition is that litigation is still pending on one such ordinance whereas the court has sanctioned, though on a 5 - 4 vote, the definitions contained in the Detroit ordinance. The two types of definitions can , however, be used together. The severability clause (Section 9105) of the zoning regulations would protect one definition if the other was ruled against by the court. r -le- If the courts should rule in favor of the general definition, then the ordinance is that much stronger and accomplishes the overall goal of regulating existing and future adult business uses and elim- inates the need for defining every possible business which might be conjured up. Control Assuming the dispersion approach is the most acceptable, two methods are available as alternatives to determining where adult businesses can be located. The first is to permit them by right in given zones , with the locational criteria. The second is to require approval through a permit process of some kind. The conditional use permit is the only tool available to the City for this type of control. By allowing the use to be established by right , the City re- linquishes control over the use other than through enforcement of criteria which might be established. Such regulation fails to take into account special circumstances relative to a specific location, on which adult businesses might have impact. The conditional use permit process allows staff and Planning Commission to review each request and requires the applicant to show that the use will not have an adverse impact on the area and that there is a demonstrated need for the use at that location. The question remaining then is which zone is appropriate. Being a commercial use, an adult business would be limited to one of the C zones or the M zone. The C-0 zone is intended for offices and uses which service offices or employees of office type uses, such as beauty and barber shops. The C-0 zone, as well as the C-1 zone, act somewhat as transitional or buffer zones, often separating heavier C-2 zones from residential zones and allowing residential uses as -19- as well. Adult businesses in the C-0 and C-1 zones would not be able to meet any reasonable separation criteria. The C-2 zones , though often separated from residential districts by C-0 and C-1 zones are not ideal either because of their proximity to residential uses and the shallow depths of most C-2 zoning which makes meeting separation criteria difficult. The courts have said that restrictions on a legal business cannot be such that the effect is elimination or prohibition of such uses . First permitting adult businesses in the C-2 zone would provide reasonable flexibility through the conditional use permit process for the approval of a limited number of adult businesses in several areas of the City. Abatement of Nonconforming Uses It is quite obvious that any requirement for separation from residential areas and between businesses will have the effect of making all of existing adult businesses , with the exception of the theater Uptown, nonconforming uses, subject to abatement. The courts have held that reasonable time must be given in the amortization of nonconforming uses . Such time limits must com- mensurate with investment involved and based on the nature of the use. The improvement made to structures in which existing adult businesses are located were basically partitioning and signs . The valuation listed on the permits ranged from (total of all permits on property) $1,000 to $12,450, averaging $3, 105 per adult business . Three locations apparently had no modifications which required building permits . The permit fees amounted to a total of $572 . 95, averaging $47 . 75 per business. One case of hiyh valuation and permits resulted from the repair to a structure after extensive - t ` ' r -2 0- fire damage. These amounts are not, in staff ' s opinion, significant investments for the use, and on the high rate of return on adult business investments any costs should have been amortized several times. The courts in 1974 upheld an 18-month amortization of a use declared a public nuisance, where users had no investment in any permanent improvements on the property and where users had adequate time to make plans to move and where there was substantial evidence that there was adequate properties favorably zoned in the county which could be used to locate the business. A reasonable amortization should not be less than 18 months nor need be longer than two or three years . Where the conformity only requires a change in the stock in trade , such as books or a change in the material presented as in a theater, the amortization period can be shorter. The proposed ordinance would provide 90 days in this case. Conclusion The information obtained and reviewed during the conduct of this study has definitely shown that concentration of .adult businesses in the City of Whittier have had an adverse impact on the adjacent neighborhoods. The increases in crime and residential occupancy turnover are two of the key indications of neighborhoods beginning to decline and deteriorate. The City' s intent in regulating such businesses is to prevent them from causing deterioration in adjacent neighborhoods . Assuming that such regulation , now pending is timel• that is, not too late, some of the more physical evidences of deterioration are not blatantly evident. flowever, experiences of c municipalities and of individuals support the impact of prolonged concentration of such businesses . R imp— -21- , Inasmuch as the courts have prevented the outright prohibition of adult businesses, regulation is the only control left to the cities. It is evident from the study that individual, isolated businesses do not have nearly as great an impact as concentrations . Therefore, the dispersion of adult business in certain areas of the City is the most appropriate form of regulation, using the conditional use permit process to review each application. The Supreme Court has upheld 1,000 foot and 500 foot separations in the Detroit case. These separations are adequate for Whittier' s situation. In certain circumstances, lesser separation would accomplish the same end, but structuring an ordinance with specific areas complicates its enforcement. The effect of such separation would make portions of the industrial areas and shopping centers eligible locations for adult businesses, subject to conditional use permit approval. All of the existing locations of adult businesses would become nonconforming under the provision of the proposed ordinance and required to conform within the prescribed abatement periods. Recommendation Staff recommends that the Planning Commission recommend that the City Council find that the regulation of adult businesses is required for the preservation of the integrity of existing commercial area and residential areas in close proximity thereto and is in the public interest and would promote the general welfare of the community and that the attached draft ordinance regulating such businesses be adopted. (Considered by Whittier City Planning Commission, January 9. 1978 and Whittier City Council January :4. 1978) ADULT ENTERTAINMENT BUSINESSES IN INDIANAPOLIS AN ANALYSIS 1984 ADULT ENTERTAINMENT BUSINESSES IN INDIANAPOLIS AN ANALYSIS Department of Metropolitan Development Division of Planning February , 1984 t TABLE OF CONTENTS SUMMARY AND RECOMMENDATIONS i INTRODUCTION 1 STUDY METHODS 2 CRIME INCIDENCE 8 MAJOR CRIMES 9 SEX-RELATED CRIME 15 CRIME IMPACT BY AREA TYPE . 22 REAL ESTATE IMPACT 27 PROFESSIONAL APPRAISAL OF IMPACTS 32 20% NATIONAL SURVEY 33 • 100% MSA SURVEY 39 • APPENDICIES 1 , AREA MAPS 1 -1 II . SURVEY OF APPRAISERS 1 �-I 111 . LAND USE CONTROL OF I11 -1 ADULT ENTERTAINMENT r SUMMARY AND RECOMMENDATIONS SUMMARY AND RECOMMENDATIONS During the past ten years , Indianapolis has experienced a signi - ficant growth in the number and variety of adult entertainment businesses located in its jurisdiction. An adult entertainment business , for the purposes of this study, is an establishment which primarily features sexually stimulating material or per- formances. As of mid-1983 there were sixty-eight such businesses operating in this City. They were located at forty-three separate sites. The proliferation of these businesses heightened the community's awareness of their existence and resulted in numerous requests that the City control their presence. Beyond the moral objections raised by many citizens , it was also alleged that such businesses had a detrimental effect on property values and contributed to high crime rates where they were located. The Indianapolis Division of Planning undertook this study in July of 1983. Of the existing adult entertainment sites , the study examined six representative locations ( the Study Area ) ' and the presence - or 'lack thereof - of certain relevant con di - tions therein. It then compared these sites with six physically similar locations ( the Control Area ) containing no adult en- tertainment business. Both groups of sites were compared with the City as a whole. Because of their importance to the public welfare of the commun- ity , the study examined the factors of crime incidence during the period 1978 - 1982 and real estate value appreciation from 1979 - 1982• In support of limited real estate data on a small area level , the City collaborated with Indiana University in a national survey of real estate appraisers to develop a "best pro- fessional opinion" as to the effect of adult entertainment busi - nesses on surrounding real estate values. As discussed in Appendix -III of this report, case law has firmly . established the legal and constitutional basis for control of the use of land within their jurisdiction by states and municipalities in order to safeguard "the public health, safety, morals and gen- eral welfare of their citizens". The "public welfare", in this context , embraces the stabilization of property values and the promotion of desirable home surroundings . On the other hand, case law has also upheld the right of this business sector to operate in the connunity under the First and Fourteenth Ammend- ments of the Constitution. In establishing an empiric base to determine whether controls were warranted in order to direct the location of these businesses , analyses of the data showed: . 1 The average major crime rate ( i .e. , crimes per 10,000 population ) in the IPD District was 748.55, the Control i Area 886.34 , and the Study Area 1090.51 . Major crimes oc- curred in areas of the study that contained at least one adult entertainment establishment at a rate that w 23% higher than e similar areas studied not having suc • businesses a 46$ the igher than the Police District at large. Although it was impossible to obtain a discrete rate for sex-related crimes at the police district level , it was possible to compare rates between the Control Areas and the Study Areas. The average sex-related crime rate in the Control Areas over the five year period wa while that rate for the Study Areas wa b.4. . If the ratio of sex-related crimes was the same as that established for major crimes between the Control Area and the Study Area, however, we would expect a sex-related crime rate of 32_-,3. The actual rate of 46.4 is 77% high- er than that of the Contro yeas rather than_th_e__2 that wo'oull be expected an indicates the presence of abnormal influences in the Study Areas . - Close examination of crime statistics within the Study Areas indicate a direct correlation between crime and the residential racier of the neighborhood. Crime frequen- cies wer 56% igher in residential areas of the study than in i ommercial areas. - At the same time , sex-related crimes occurred__four t�S) more frequently within residential neighborhoods having at least one adult entertainment business than in neigh- borhoods having a substantially. district-related commer- cial make-up having adult entertainment. - Although the housing base within the Study Areas was of a distinctly higher value than that of the Control Areas , its value appreciated at only one-half the rate of the Control Areas' and one-third the rate of Center Township as a whole during the period 1979 - 1982. - Pressures within the Study Areas caused the real estate market within their boundaries to perform in a manner con- trary to that within the Control Areas, Center Township and the_ nty. In a time when the market saw a decrease 0�0% itistings , listings within the Study Areas actu- a ncreased slightly. ii '` As a result , twice as many houses were placed on the market at substantially lower prices than would be expected had the Study Area's market performance been typical for the period of time in question. \y"fhe great majority of appraisers (75%) who responded to a na- tional survey of certified real estate appraisers felt that an adult bookstore located within one block would have a negative effect on the value of both residential (80%) and commercial (72%) properties. 50% of these respondents foresaw an immedi - ate depreciation in excess of 10%. At a distance of three blocks , the great majority of respon- dents (71%) felt that the impact of an adult bookstore fell off sharply so that the impact was negligible on both residential (64%) and commercial (77%) . At the same time , it appears that the residual effect of such a use was greater for residential than for commercial properties . In answer to a survey question regarding the impact of an adult bookstore on property values generally, 50% felt that there would be a substantial-to-moderate negative impact , 30% saw little or no impact, and 20%, saw the effect as being dependent on factors such as the predominent values (property and social) existing in the neighborhood, the development standards impos- ed on the use, and the ability of an existing commercial node to buffer the Impact from other uses . While the statistics assembled and analyzed in this study should not be construed as proving that adult businesses cause the ne alive im- pacts uminate erein , an obvious variab a in each instance of com- parison is • t eir present rime rates - particu arly thos .fit arO sex-related - show substant -a eviation from normal rates for this popu a i yse estate listings and sales _show_a n� - vely abnormal performance of the real AtslaiE�ar�ceLin�rsas_��e� . ad u a l-h me n ss o e re d. t-te f—ca s e-,— -he—be-s-t---pT-of e4= Vona Ju gement available indicates overwhelmingly that adult enter- ainmen usinesses - even a re ative y_passive use such as an adult b6oks-tore - have a serious negative effect on their imrrediate envi - rons. - Consequently, it would seem reasonable and prudent that the City ex- ercise its zoning power to regulate the location of adult entertain- ment businesses so that they operate in areas of the community that, while accessabie to their patrons, are yet located in districts that are least likely to injure the general welfare cf residents . 111 IT IS, THEREFORE , RECOMMENDED: THAT ADULT ENTERTAINMENT BUSINESSES BE ALLOWED TO LOCATE IN AREAS THAT ARE PREDOMINANTLY ZONED FOR DISTRICT-ORIENTED COMMERCIAL ENTERPRISES - 1 . E. , C4 OR MORE INTENSE USE CATEGORIES . THAT NO ADULT ENTERTAINMENT BUSINESS BE ALLOWED TO LOCATE IN AREAS THAT ARE PREDOMINANTLY ZONED FOR NEIGHBORHOOD- ORIENTED COMMERCIAL ENTERPRISES - 1 . E. , C3 OR LESS INTEN- SIVE USE CATEGORIES. THAT EACH LOCATION REQUIRE A SPECIAL EXCEPTION WHICH, AMONG OTHER CONSIDERATIONS, WOULD REQUIRE APPROPRIATE DEVELOPMENT STANDARDS DESIGNED TO BUFFER AND PROTECT ADJACENT PROPERTY VALUES. - THAT THESE USES NOT BE ALLOWED TO LOCATE WITHIN 500 FEET OF A RESIDENTIAL, SCHOOL, CHURCH OR PARK PROPERTY LINE NOR WITHIN 500 FEET OF AN ESTABLISHED HISTORIC AREA. Iv INTRODUCTION As is the case in most large cities , Indianapolis has experienced a rapid growth in the number and variety of adult entertainment businesses over the past ten years . As of June , 1983 there were sixty-eight such businesses located singly and in clusters through- out Marion County. For the purpose of this study, the term "adult entertainment busi - ness" is a general term utilized to collectively designate busi- nesses which primarily feature sexually stimulating material and/ or performances. These non-exclusively include adult bookstores , adult cabarets , adult drive-in theaters , adult mini motion picture theaters and arcades , adult entertainment arcades and adult ser- vice establishments. These enterprises have posed a particular problem due , in part , to the moral implications attendant upon such businesses in the minds ' of many members of the community. While this is , perhaps , the view of the majority, case law on the subject has clearly established that the exclusion of such businesses from a community is an in- fringement of First Amendment rights . The proliferation of such businesses providing various forms of adult entertainment in Mar- ion County has exacerbated this dilemma and given rise to addition- al charges of negative impacts on neighborhoods in proximity to their location. Through the use of their zoning power, cities have within the past half century directed the physical growth of communities in order to assure a harmonious blend of land uses which foster the general welfare of the population. This power has been applied more recent- ly to adult entertainment businesses in many communities and has served as a prime means of controlling possible negative impacts on neighborhoods. This study was undertaken to examine these alleged negative impacts with the purpose of empirically establishing, to the extent poss- ible , their existence or non-existence as well as their real di - mensions in Indianapolis. The possible relationships between these impacts and the land use characteristics of the sites in which they are offered were also examined to as:ertain whether certain land use classifications were better suited than others for the loca- tion of adult entertainment businesses . v METHODOLOGY l STUDY METHODS As described below, the study methodology employs the comparison of different land areas in Indianapolis . The two basic areas of comparison are Study Areas and Control Areas. They are distin- guished by the existence of adult entertainment establishments within their boundaries ( the Study Areas ) or the absence there- of ( the Control Areas ) . These two designations are further differentiated as to the gen- eral purpose or emphasis of the land uses they contain. Those that generally serve the immediately surrounding residential uses are termed "Neighborhood-Related" while those that contain uses meant to serve a broader geographic area are designated "Commun- ity-Related". STUDY SITE LOCATIONS At the time of the study's inception, there were at least forty- three possible , distinct sites in Indianapolis where adult enter- tainment was offered either singly or in clusters of establish- ments. For manageability purposes , It was decided to select six of these sites that were representative. In choosing these subject lo- cations (as well as the Control Areas of the study) ,the determinant characteristics were their zoning mix, population size and the relative age of housing stock. In each case, adult entertainment • was offered during the time span of the study. The selection process was additionally based on the number of es- tablishments located in a given neighborhood, whether it was. resi- dential in nature and therefore neighborhood-related, or contained a significant portion of its land use in regional , commercial uses which made it community-related. The designation "Neighborhood-Related" was applied where a prepon- derance ( 75% or more ) of the area within 1000 feet of the site was zoned D1 through D12 ( residential dwelling district classifi - cations ) and the commercial areas were neighborhood-related - prin- cipally C3 ( a neighborhood commercial classification ) . Special Use designations were judged to be neighborhood-related or not on an individual basis. SUi (church) E SU2 (school) , for example , were judged to be generally neighborhood-related. "Community-Related" areas were described as areas where a signifi- cant proportion (30% or more) of the zoning within the 1000-foot radius was C4 ( Community-Regional Commercial ) or more intense and the Special Uses within the boundaries were of a community-wide na- ;kure. SU6 (hospital) and .SU21 (cemetery) were judged, therefore, to be related to the community generally.. i 1 Within these two broad classifications , six locations were chosen. Two of them were situated in residential settings , two in re- gional-commercial settings and two in areas that fell in between , i . e. , areas that had a high percentage of residential zoning but also contained a certain proportion of regionally oriented com- mercial zoning. These six locations became the Study Areas of this investigation. (cf. Appendix 1) AREA ZONING CHARACTERISTICS STUDY AREAS SITE CHARACTERISTICS Residential Commercial Special Parks Residential 1.5 31 East 38th St. D4-82% Cl-7% SU1-3% C3-8% 2 .3155 East loth St. D5-75% C3-24% SU9-1% - Coml ./Residential 3.3555 west 1 th St. D5-78% C4-22% - - 4 .2101 W. Washington D5-60% C3-3% SU2-17% PK1-2% C4-18% Commercial 5.6116 E. Washington D5-65% C4-30% - - D8-5% 6.4441-63 N. Keystone D5-15% C2-5% 11U-12% PK2-5% C3-10% 12U-13% C5-40% Of the two sites chosen in residential areas, one contained an adult bookstore (Apollo Adult Books , 5431 East 38th St.) and a massage parlor(Eve's Garden of Relaxation, 5429 East 38th St.) The other residential location contained an adult movie house (Rivoli Theater, 3155 East 10th St.) and a topless bar (Ten-De Club, 3201 East loth St.) One of the commercial/residential areas had a topless bar within its boundaries (Blue Moon Saloon, 2101 West Washington) , while the other harbored the White Front Bar which featured topless dancing (3535 west 16th St.) The two corrme rc i a 1 areas chosen were In the sixty-one hundred block of East Washington St. and the forty-four hundred block of North Keystone. The first site contained .two adult book- stores (Modern Art Bookstore at 6118 and Adult Arcade at 6122) and a massage parlor (Spanish Moon at 6116.) The Korth Keystone location contained four massage parlors (Other World, 4441, Diamond's. Angels , 4445, Pleasure Palace, 4461 , and Tarn and Country, 4463) , two adult bookstores (Video World, 4447 and Adult Bookstore, 4475) as well as a topless lounge (Devil 's 2 Hideaway, 4451) . Six areas were also selected to serve as control sites for the study. These sites were chosen on the basis of their proximate location to the Study Areas (or their location on major thor- oughfares in areas physically similar in location and types of development) , size of population and zoning characteristics . None contained adult entertainment businesses . Selection was also made so that two of the sites were in predominantly resi - dential areas , two in commercial areas and two in areas that contained a significant mix of residential and regional com- mercial zoning. These six sites became the Control Areas of the study, (cf. Appendix I .) AREA ZONING CHARACTERISTICS CONTROL AREAS SITE CHARACTERISTICS Residential Commercial Special Parks Residential 1.2300 West loth St. D5-82% C1-4% - - C3-14% 2.2500 East loth St . D5-80% C2-12% - - C3-8% Coml . /Residential 3.5420 E. Washington D5=62% C3=1% - - D6=8% C4-19% D8=10% 4.2600 W. Washington D5-35% C1-2% SU1-3% - D4=34% C2-1% SU2-3% C5-113% C7-8% Commercial 5.5200 14. Keystone D2s7% C1=4% 11U-10% D4-2% C3-9% D5-15% C5-25% D7-6% C7-20% CS-2% 6.750 N. Shadeland D2-3% C4-49% SU1=15% D3-15% C5=10% D7-3� CS-5% AREA ZONING CHARACTERISTICS NEIGHBORHOOD-RELATED COMMUNITY-RELATED Residential Study Area 1 . 100% - 2 99% 1% Control Area 1. 100% - 2. 100% - Coml ./Residential Study Area 3• 78% 22% 4. 82% 18% Control Area 3. 81% 19% 4. 78% 22% Commercial Study Area 5. 70% 30% 6. 35% 65% Control Area 5• 43% 57% 6. 36% 64% STUDY SITE COMPARISONS Throughout the following analyses, a series of comparisons are made at several different levels of geography: i .e. , County/ Police District ; Census Tract/Census Tract Cluster; and Control/ Study Area. Large Area When dealing with crime statistics , the Indianpolis Police Department District is used as the largest universe of com- parison. In the case of real estate Information , Marion County is used as the largest geographic area of comparison. Center Township is also used as a basis of comparison in the analysis of adult entertainment impacts on property values Mid-Size Area Intermediate geographic levels used for comparison in the study were census tracts when study sites were centrally located within their boundaries . Where they were not, those - census tracts in proximity to the site were chosen as the basis of comparison. 4 • CENSUS TRACTS/TRACT CLUSTERS Study/Control Areas 1 2 3 4 5 6 Control Areas 3r12 3527 3CI-I WfT 3216 3606 2416 3547 3612 3426 3217 3607 3548 36o8 Study Areas 3314 3526 3411 3414 3607 3216 3601 3548 3426 3224 3549 3538 3225 3226 Sub-Area The Control Areas and the Study Areas, as described above, formed the smallest geographic group of the study. These target areas were constituted using the criteria listed in the previous section of this report and data derived for them by aggregating block-level or addressed data within a 1000-foot radius of the area centroid. 5 C ice` 111 wrr rr Fa• I �" M4r • I rF• , � I • rw w•• ww ' • J - ' wr• • ' ru rr w.1 ww �,,• • I• •- rY b yr •ti „M M.•w w••r O•. K 1 • 1 Y« rw •Kr M w.• • w1+. •+ ••rr «.•• •.••w •w•r I •«• w w. ` wa w. •e 1 • r• w! r, wn a.r I Mw n ti� M M Fw wr ' It: �• rw •••+ ... r •+..r ••.as rria ►•••• ww 4••w N• w w.• • Nw we r. ,,•- • • W r« wy w« l•r 1 + . am M w• w• M� rs• wn w•+ wK ' •.w wn , • j w w.+ 1 •..r rr ' • I � WJ `w wy • wM ' w•w •1•.r I 1 w.r wr 1980 CENSUS TRACTS , ADULT ENTERTAINMENT BUSINESS STUDY O Study Area O Control Area 6 • CRIME INCIDENCE CRIME INCIDENCE The Data Processing Unit of the Indianapolis Police Department performed two computer runs of their "Incidence Files" I in August of 1983 at the request of the City Division of Planning. The re- sultant printouts detailed all reported incidents to which po- lice had been dispatched in the Critrol Areas and the Study Areas during the years 1978, 1979 , 1980, 1981 and 1982. Data were assem- bled from these printouts on a year-by-year, area-by-area basis They were then grouped by Major Crlmes2 and Sex-Related Crimes . Summary data for the Indianapolis Police District were also assem- bled for major crimes during the years 1978 through 1982 . Unfor- tunately, sex-related crimes had not been discreetly assembled for the Police District and study constraints would not allow their tabulation manually. The purpose of these tabulations was to identify any possible abnormalities that might have occurred In expected frequency and - nature of crime between the Indianapolis Police District , the Control Areas which were chosen for their similarity to the Study Areas and the Study Areas themselves in which adult enter- tainment establishments were In operation. As was demonstrated in the previous section , the Study Area loca- tions were chosen as being representative of existing adult en- tertainment sites In zoning mix, size of population , age of hous- ing stock and types of adult entertainment services offered in the area. Excepting the latter, these same criteria were used in the choice of Control sites. Because they were representative , it is possible to compare Control and Study Areas as well as In- fer findings to other adult entertainment locations in the com- munity. Based on the summaries . of crimes , crime rates were computed f�r each area using 1980 Census data as the population constant . The crime rate statistics portrayed the frequency of crime in each area for each 10,000 of population and allowed direct com- parison of crime impacts between the three areas . The same tech- nique was used to compare the magnitude of sex-related crime in the Control Areas and the Study Areas . 7 MAJOR CRIMES The crimes of Criminal Homicide, Rape , Robbery, Aggravated Assault, Residence and Non-Residence Burglary, Larceny and Vehicle Theft are reported on a monthy basis by the Indian- apolis Police Department as Major Crimes. During the period of this study ( 1978 - 1982 ) , there were 175 ,796 major crimes reported in the IPD District with an annual high of 37,220 occuring in 1980. The crime rate for this year was 792 .42 in the police district. l This represented an increase of 2 ,115 major crimes over the previous year total and an increase of 6% in the crime rate. The lowest annual total in the study period ( 33,898 ) was reported in 1981 which represented a drop of 10% in the crime rate from the previous year. Indianapolis Police District Major Crimes/Rates 1978-1982 Poputatlor►- 489,700 ' 1078 1070 1060 1"1 1062 ` Ikrder 76/1.62 02/1.06 107/2.28 66/1.38 40/1.47 Rapp U 1/7.26 439/9.38 410/6.73 400/8.62 387/8.24 Robbery 1063/41.79 2063/43.71 2103/46.60 2104/48.71 1003/42.43 Aggravated aauult 1363/2"11 1604/33.04 1743/37.11 16$0/40.03 1692140.25 Reald&rwA Burglary 834d/13d.11 663W130.20 7406/160.87 7677/163.45 778S/166.70 Nlorrfi a aldence Burglary 2302/60.94 2011/42.82 2679/54.91 2308/40.14 2213/47.12 Larceny 18e02/307.04 18927/402.0e 18W6/402.61 16782136729 17497/372-51 Vehicle Thotte 3.674/78.22 3461/73.47 3781/80.63 2602/65.18 "02/61.78 Totat 34837/741.62 36106/747.39 37220/792.42 33808/721.70 34736/730.64 Total Crkrw 176.796 Per 10.000 Population 8 r Y: Over the same period of time , the Control Area for this study had 5,170 major crimes committed within its boundaries - the highest number occurring in 1980 when 1 ,099 crimes were re- ported. The crime rate for this year was 942.05 in this area. This is compared to the lowest total of 912 and a crime rate of 781 .76 for 1978. This represented an absolute difference of 187 total major crimes and a difference of 21% in the crime rate ( 160.25 ). Control Area Major Crimes/Rates*1978-1982 (Population-11.68a) 1978 1079 1960 1981 1982 Murder 1/0.8a 4/3.43 3/2.67 6/429 2/1.71 Rape 8/a.aa 12/1029 16/12.86 6/6.86 13/11.14 Robbery 37/31.72 44/37.72 44/37.72 50/42.8a 38/30.86 Aggravated Assault 10/15.29 36/30.00 29/24.86 30/25.72 37131.72 Residence Burglary 1511129.42 229/196.30 2a2/224.58 2721233.16 198/1159.72 Non-Residence Burglary 71/60.86 b0/42.88 62/53.15 59/50.57 79/67.72 Larceny 484/414.88 544/4aa.31 6741422.03 W1504.03 679/438.31 Vehicle The it 141/120.ea 112/945.01 110/".29 83/71.15 90/77.15 Total: 912/761.7a 1.030/582.91 1,099/942.05 1.095/938.63 1,034/886.34 Total: 5,170 *Per 10.000 Population Aversga: 886.34 During the period 1978 - 1982 , 4,657 major crimes were committed in the Study Area. As in the IPD District and the Control Area, the greatest volume of major crimes ( 1 ,103 ) occurred in 1980 which had a crime rate of 1 ,291.42 . The fewest number of crimes in the study's time frame was 867 in 1978 which represented a di fferencial in the total number of major crimes reported and the rate of crime of -236 and -276.32 respectively from 1980 9 Study Area Major Crimes/Rates* 1978-1982 (Pope►aliorr- 8,541) 1978 1979 1"0 1"1 1982 b@,rder 813.61 0/- 2/2.34 ISM" 0/- R." 3/3.51 12/14.05 11/12.88 9/10.54 6J9.37 Robbery 65/64.40 &W02.05 68/67.91 28/30.44 44151.52 A09ravaled Assault 25/29.27 11V21.08 22/26.78 16/18.73 29/33.96 Residence Burglary 181/18a.5o 2001234.17 244/285.68 190/222.46 189/22129 Lion-Res 1deexe Burglary 62/26.01 68/67.91 80/93.67 65/76.10 64/74.93 Larc6ny 462/540.92 450/626.87 " 686/686.10 660/655.68 464/643.28 Vehicle Then 78/88.98 90/105.37 100/117.08 60/7025 77/90.16 Tolat 867/1015.10 881/1031.60 1103/1201.42 931/1090.04 876/1024.47 Total 4.667 'Per 10.000 Poputalioct Average: 1090.61 The frequency of crimes in the IPD District , the Control Areas and the Study Areas showed approximately the same pattern. In each of the areas , the number of major crimes increased from 1978 to 1980 when they peaked. Subsequent years showed frequency levels below the 1980 high. The average crime rate figure for the Indianapolis Police Depart- ment District was. 748.S5. The Control Area had a rate that was 137. 79 higher than the overall police district , whereas the Study Area was .204. 17 points higher than the Control Area. In other words , people living in the Control Area of the study were ex- posed to a major crime rate in their neighborhoods that was 18% higher than that of the IPD population generally. Residents of the Study Area, however, were exposed to a major crime rate that was 23% higher than that of the Control Area and 46% higher than the population of the IPD District as a whole . 10 Major Crime Rate* 1978-1982 IPD District Control Area —-- Study Area - --- 1600 1300 1291.4 OF 1 100 1016.1 1031.E 1024.E • 942.1 938.Q 900 t3`•i f �� �� 886.3 7024 741.7 747.4 721.7 739.E 700 600 1978 1979 1980 1981 1982 *The numerical Instance of Criminal Homicide, Rape, Robbery, Aggravated Assault. Residence Burglary. Non-Reaidence Burglary. Larceny and Vehicle Theft- Per 10,000 Population. it It is interesting to examine crime rates within the Control and Study Areas in relation to the land use characteristics i of the locations in which they occurred. Crime rates provide a better understanding of actual impact on the resident of the area than crime frequencies in that they establish a ratio of crime to each 10,000 of popula- tion. In this way, they tell us just how vulnerable a neigh- borhood is historically to crime within its boundaries . 1978- 1982 ANNUAL AVERAGE MAJOR CRIME RATE BY LAND USE AREA Commercial Coml ./Res. Residential Pop./Crime/Ann.Rt Pop.. Crime/Ann.Rt, Pop. Crime Ann.Rt, Control 1 . 379 240 1267 2. 523 1147 4386 902 13Tj 3075 3. 2828 837 592 4. 2382 705 592 52 t o 1� 592 5. 2159 1173 1087 6. 3395 1067 629 555 22 807 Study t. 219 439 4009 2. 1218 831 1365 11 37 1270 1768 3. 1015 834 1643 4. 1203 653 1086 2211$ lZ 7 1341 5. 3656 1232 674 6. 1230 668 1086 +fit; 1900 778 Accordingly , we find that this impact is 74% higher in dis- trict commercial areas of the Control Area than similar dis- trict commercial areas of the Study Area. However, while the rate is approximately the same in the residential areas of both, the Study Area exhibits a crime rate that is 127% high- er than the Control Area in locations that are mixed district- commercial and residential in nature. 12 1978-1982 Annual Average Major Crime Rates*: Selected Areas 5000 4750 4500 4000 3760 3500 3200 3075 3000 2760 2500 2250 2000 1768 1750 1600 13d1 1260 1091 r f•. . 1000 885 ": i:f ::: :$': 807 :: :: :;::; 778 760 •:. i :: :::: X Will Goo 2 .::: .:: ZZ- :: :•r Total Area Coml. Coml./ Res. Total Area Coml. Comi./ Res. Res. Rea. Control Area -- Study Area Per 10.000 Population f 13 SEX-RELATED CRIME 5 Crimes of Rape , Indecent Exposure, Obscene Conduct , Child Mo- lestation, Adult Molestation and Commercial Sex were segre- gated and then aggregated from police printouts of total crime incidence occurring within the Study Area and the Control Area for the period 1978 - 1982 . A total of 153 sex-related crimes was reported in the Control area during this period, with a high of 39 having occurred in 1979. During the same period, the Study Area experienced 198 sex-related crimes , reaching a high of 52 in 1981. Control Area Sex-Related Crimes/Rates*1978-1982 (POp'ada t ton-11.006) 1976 leis 19W 1e.61 1682 RaOe a 17 is _ a 12 h6ecertl Eapoaar• 7 10 a 13 e ooscry COn*xl 0 2 0 0 1 CHtd Molestation a 10 4 s 12 Adult Molestation 2 a 0 1 i comn.«cW ' BOIL O 1 1 0 0 Totat 13/1e.7 Ee/33.4 "/24.e 20126.7 92r27.4 Total lea •Pr 10.000 Population Study Area Sex-Related Crimes/Rates*1978-1982 (Poputatlon-6.64 U 1678 1979 1"o 1ee1 1942 Rap@ : 1! I1 10 a rxd.o.rtt Eapoewe 10 14 1i a 7 OOscana Condsl O 0 0 1 O Cnud ►otestatkn s a s 11 a Adull Mot.atattat 1 0 0 0 a c«,>m.ra.t sea 1 t 1e to 13 Total j%M2-3 43J60.4 4-t/61.a a2ty" 4W".e Tout 106 •Per 10.000 P*P6ACf1ort 14 Sex-Related Crime Rate's 1978-1982 Control Area— — Study Area ——— — 65 80.0 60 , ♦\ 55 6 // �\ 6,•/ \ 50 / 46.8 45 / 40 / 35 ! 33.4 30 ! / 27.4 2 5 24.0 25•7 .� ..r -- tiry/ 20 16.7 15 10 5 0 1978 1970 1260 1981 1882 f The numerical instance of Rape, Indecent Exposure, Obscene Conduct. Child Molestatlon, Adult Motestatlon and Commercial Sex- Per 10,000 Population. t 15 Whereas sex-related crime rates in the Control Areas varied from a low of 19.7 in 1978 to a high of 33.4 in 1979, the Study Areas increased from a low of 22.3 in 1978 to its peak of 60.9 in 1981 The average sex-related crime rate in the Control Area was 26.2 over the five year period. The rate in the Study Area was approximately 77% higher than this average during the same period of time at 46.4. Comparing the crime rate for sex-related crimes by land use categories in the Control and Study Areas , a different pat- tern than that for major crime rates emerges . 1978-1982 ANNUAL AVERAGE SEX-RELATED CRIME RATE BY LAND USE Area Commercial Coml ./Res . Residential Pop./Crimes/Ann. Rt. Pop./Crimes/Ann- Rt, op./Crimes/Ann. Rt. Control 1 . 379 2 11 2. 523 7 27 902 9 20 3. 2828 35 25 4. 2382 29 24 5210 64 25 5. 2159 49 45 6. 3395 29 11 555T 28 Study 1. 219 5 46 2. 1218 23 38 1737 - 2� 39 3. 1015 38 75 4. 1203 32 53 221 70 63 5. 3656 69 38 f 6. 1230 31 50 TW 100 41 16 99 7S-1982 Annual Average Sex-Related Crime Rates*: Selected Areas too ■s ■o ea ao 76 . 70 66 63 so sa so / as 45 40 39 S . 35 ao 28 26 25 '\ 25 $ . \ .,. . . 20 2 0 $v {f .@ \. . ,o o .. Toe Area com. Coml Res. Total Area coma corn/ Res. Re,, R■■.. Control Area Study Area * Per 10.000 Population 17 Whereas major crime rates were simi lar in residential areas of the Control and Study Areas , the Control Area rate was substan- tially higher in district commercial areas and lower in mixed district commercial/residential areas . In contrast to this , the sex-related crime rate was uniformly higher in all land use cate- gories of the Study Area, ranginq from +46% in residential areas to +152% in district commercial/residential areas . SUMMARY OF FINDINGS Both the Control and the Study Area experienced a sig- nificantly higher incidence of major crimes/10,000 population than the IPD District as a whole. Much of this increase would be expected given their location in generally older, less affluent and more populous areas of the city. It is more difficult to explain the distinctly higher crime rate experienced in the Study Areas as compared to the Con- trol Area - 1 ,090.51 versus 886.34. This dicotomy is even more apparent in the instance of sex- related crime rates In the two areas . The average sex-re)ated crime rate in the Control Areas was 26.2. The Study Areas had an average rate of 46.4. If the same ratio between the Control and Study Areas estab- lished for major crime during this period were applied, we would expect a crime rate that was 23% higher - or 32.3 - In the Study Areas. The actual rate of 46.4 is 77% higher than that of the Control Area and underscores a distinct departure from the expected. Not only is the rate substantially higher In the Study Area, but it Is twice the rate that would have been expected from the distribution of crimes generally in Indiana- polis. The anomalies demonstrated In the comparison of the Study Area with the general population and the Control Area will not, In themselves , establish a causal relationship between Adult Entertainment Businesses and the crime rates in the immediate aeea surrounding them. The fact does remain, however, that in each subsection of the Study Areas where adult entertainment is offered a substantially higher sex-related crime presence ob- tains over the corresponding subsections of the Control Area in which no adult entertainment is offered. The same Is true regarding the rate of major crimes . 18 In areas chosen for their similarities otherwise, an obvious difference lies in the presence of one or more adult enter- tainment establishments . 1 g_. f FOOTNOTES 1. The Incidence File is a computerized listing of all reports made by police after initial investigation of an incident to which they were dispatched. It , therefore , provides a more reliable indication of crime incidence than the com- puterized "Police Run" file which logs police dispatches based on preliminary information on the incidents. 2 . Criminal Homicide , Rape , Robbery, Aggravated Assault , Resi- dence Burglary, Non-Residence Burglary, Larceny and Vehicle Theft. 3. Rape , Indecent Exposure, Obscene Conduct, Child Molestation , Adult Molestation and Commercial Sex. 4. since population estimates were not available for each year of the survey, the 1980 Census figures were used because they were the result of an actual enumeration and, falling at the mid-point of the survey, they would tend to balance out popu- lation trends during the five year time span. 5. Sex-related crimes are not isolated and compiled on a routine basis for the IPD District as a whole. A manual compilation of these data was proscribed by the time limitations of the study. ,1 20 t CRIME IMPACT BY AREA TYPE l IMPACT BY AREA TYPE As it will be noted, sample size poses a distinct problem when attempting analysis at the small area level . This is particu- larly true in the instance of mortgage information. Due to this inadequacy , it is impossible to compare the impact of adult entertainment businesses on residential property value below a certain level of geography. This is not the case, however, with crime statistics. In this case it is possible to compare sub-areas of the target areas since the comparisons are based on the actual instance of crime in the area ( unlike mortgage data where average value is the basis of comparison.) The sub-area comparisons were based on the nature of the areas in relation to their land use composition as determined by the Comprehensive General Land Use Plan of Marion County. Four sub- areas were of a distinct regional commercial nature, four were • residential in nature and four were of a mixed residential- commercial makeup. The three groupings were compared with each other to determine if crime , from a historical viewpoint , occurred more frequent- ly in areas of one land use configuration than another. Whether or not crime frequencies , at least in part , are deter- mined by the land use characteristics in which they were com- mitted cannot be definitively answered here. Several striking patterns do emerge from the comparison, however. CRIME FREQUENCIES BY AREA TYPE Of the 9,829 major crimes committed in the Control and Study Areas during 1978 - 1982 , 27% were perpetrated in regional com- mercial areas , 31% in mixed commercial -residential areas and 42% in predominantly residential areas . In other words , crime frequencies were 56% higher in residential areas than commer- cial areas while mixed commercial-residential areas were 37% higher than commercial areas. The following table displays major crime frequencies for the five year period by type of area , the existence or non-exis- tance of adult entertainment and specific location. 21 MAJOR CRIME FREQUENCY 1978 1979 1980 1981 1982 Tot . % District Commercial Study Area No. Keystone 83 71 11-2 87 86 439 E. Washington 150 152 202 186 141 831 233 223 317 293 227 1270 Control Area No. Shadeland 38 41 34 43 84 240 No. Keystone 212 217 210 259 249 1147 250 2-5T __2_4 302 333 13T7 l Mixed Res ./Coml . 2657 27% Study Area W. Washington 123 184 190 185 152 834 West 16th St. 177 128 140 104 104 653 30o 312 330 2S9 25b IT37 Control Area W. Washington 110 182 211 184 150 837 E. Washington 160 151 130 139 125 705 2 00 333 3 IT 323 275 1-5 +T2 Residential 3029 31% Study Area EastlOth St. 219 235 294 242 242 1232 East 38th St. 115 111 165 127 150 668 —33�►+ � 59 _9 392 1900 Control Area East loth St. 211 239 269 210 243 1173 West loth St. 181 200 244 260 182 1067 33q T+5$ 3 9 392 22-40 4140 42% The pattern was similar in comparison of the frequency of sex- related crime within the three areas during the same period of time. It was more pronounced, however. Fifty-one percent of the total occurred in residential environments , while thirty-eight percent occurred in mixed commercial-residential areas. In com- parison , only eleven percent of the total occurred in dis- trict commercial areas. The following table displays sex-related crime frequencies for the five year period by type of area, the existence or non-exis- tence of adult entertainment and the individual locations inclu- ded in the study. 22 SEX-RELATED CRIME FREQUENCY 1978 1979 1990 1981 1982 Tot . % District Commercial Study Area No. Keystonc - 2 2 - 1 5 E. Washington - 4 4 8 7 23 Control Area No. Shade land - - - - 2 2 A o. Keystone 1 3 1 1 1 7 1 3 1 1 3 9 Mixed Res/Coml . 37 11% Study Area W. Washington 5 10 12 8 3 38 West 16 St. 111 4 8 9 10 32 20 17 13 70 Control Area W. Washington 3 8 11 8 5 35 E. Washington 4 10 3 8 4 Residential 134 38% Study Area • East loth St. 12 18 14 17 8 69 East 38th St. 1 5 4 10 11 31 13 23 —1$ 27 19 100 Control Area East loth St. 11 13 7 7 11 49 West loth St. 4 5 6 5 9 29 15 —18 13 12 20 7B 178 51% These trends are not easily explained on the basis that '+here there are more people there will be more crime." Community-rela- ted commercial areas draw clientele from a broad geographic area and can be expected to attract many times the residential popu- lation of the immediately surrounding area. This is the purpose of the district commercial zoning designation. Further, the trans- ient nature of this population could be considered to contribute to the incidence of certain crimes. 23 Major Crimes / 1978-1982, Selected Areas Commercial 2657 Study 1270 . Control 1387 Residence/ Commercial 3029 t Study 1487 Control 1542 Residential 4140 Study 1900 Control 2240 0 1000 2000 3000 4000 6000 (. l 24 Sex-Related Crimes 1 1978-1982, Selected Areas Commercial 37 Study 28 Control g Residential/ Commercial 134 Study 70 Control 64 Residential 178 Study ;=7 100 Control 0 50 160 160 200 250 300 25 SUMMARY OF FINDINGS There appears to be a strong correlation between crime frequency and the residential character of neighborhoods , i .e. , the more residential the nature of the neighborhood, the greater is the instance of crime in that neighborhood. Crime frequencies were , in fact, fifty-si.x percent higher in residential areas than dis- trict connercial areas . The above correlation is even more acute when considering sex- related crimes . Sex-related crimes occurred four times more fre- quently in substantially residential milieus having one or more adult entertainment businesses than in commercial environments having one or more such businesses. 26 REAL ESTATE IMPACT REAL ESTATE IMPACTS This study also undertook the quantification of possible effects of the proximity of adult entertainment businesses on the value of residential properties within a one thousand foot radius of their locations• In examining the potential impacts , three sources of residential property values were investigated: i .e. , Indianapolis Residential Multiple Listing Summaries (MLS) of the Metropolitan Indianapolis Board of Realtors , the 1980 Census (tract and block occupied, single-unit housing valuation data) ; and, annual lending institu- tion statements under the Federal Home Mortgage Disclosure Act (MDA) . Summary data from the MLS were available over the period 1979 - 1982, while actual mortgage values reported by lending Institutions were available for the period 1977 - 1982. The U.S. Bureau of the Census provides homeowner estimates of home value at the time of the 1980 Census (April 1 , 1980) . The data available from these three sources differ in other ways. The 1980 Census , while relying on homeowner estimates of the worth of property, is a 100 percent survey and is described down to the block level . Home Mortgage Disclosure Act data provide a record of actual mortgages processed and reported by local lenders (only a portion of the total volume) . The lowest geographic level at which this information is available Is the Census Tract and, even at this level , at times poses a difficulty with the available sample size. Multiple Listing Summaries generally reflect an esti- mate of worth based on current market conditions for the area and can be assembled at virtually any geographic level since they are listed by address. As in the case of the Mortgage Disclosure Act statements, however, there are at times problems with the suffi- ciency of the sample size at the small area level:. Each of the data sets presents some weaknesses. Although the 1980 Census only reflects an estimate of housing value at one point in time, It has the advantage of being a 100 percent survey of occupied, single-unit housing. The other two sources offer time series data over periods of four and five years. They have the liability, how- ever, -of sometimes lacking a sufficient sample size at the small area level in any given year to allow an acceptable level of statis- tical confidence. Due to these characteristics of the data, certain modifications were made in the study's original intent. Rather than doing annual comparisons of housing value, 1979 was chosen as the comparlson year and the 1980 Census data set chosen due to the ability to summarize it at the county, tract and block level . 27 The geographic levels of comparison were the County as a whole, the Census Tract or Tract cluster in which the Study or Control Areas were located and the areas within a 1000-foot radius of the Study and Control location centroids. A next step was to use the data available on real estate activity in the Multiple Listing Summaries to establish market performance between 1979 and 1982 in both the Control and Study Areas* The results were compared to real estate activity in the residential market of Center Township which, In terms of value and general housing condition, most closely resembles the two areas among the nine Marion County townships. COMPARISON RESULTS AVERAGE MORTGAGE VALUES - 1979 Marion Countyl $ 41 ,854 Control Areas Study Areas Tract/Tract Clusters $ 31 ,858 $ 28,003 ( Tract/Tract Clustersl ] ( 27,872 ] [ 21 ,605 ] 1000-foot Radiusl 23,721 24,616 ( 1000-Foot Radlus3 ] [ 16,038 ] i 23,823 ] 1 . Source: 1980 Census. 2. Source: Home Mortgage Disclosure Act Statements. 3. Source: Residential Multiple Listing Summaries . Comparison of the 1980 Census data would indicate that the value of housing in the areas addressed in this study are from hO to 73 percent below the Marion. County average. -While the average value of housing at the census tract level was somewhat higher in the census tracts in which the Control Areas were located than those in which the Study Areas were located ($31 ,858 vs. $28,003) . the opposite was true when comparing the target areas themselves. Housing values within 1000 feet of adult entertainment businesses in the Study Areas were greater (although by a lesser-margin) than those in the Control Areas ($24,616 vs. $23,721). * Whereas the sample size is sufficient in most years to provide acceptable confidence levels for mortgage averages, the sample is only marginally acceptable in 1981 and 1982 for the Control Area. 28 This finding is borne out by an examination of actual mortgages executed within the affected census tracts of the Control and Study Areas, as. well as real estate listings at the 1000-foot level . Using mortgage and real estate listing data we find that, while consistent with the Census data findings, the disparities were more acute. Average mortgages at the tract level were $27,872 vs . $21 ,605 in the Control and Study Area tract clusters respectively. At the 1000-foot level , real estate listing values in the Control Areas dropped to $16,038 while Study Area listings increased by approximately 10 percent over the average mortgage value in the tract clusters of the Study Area. It would appear that, while property values at the tract cluster level are appreciably higher surrounding the Control Areas , housing within the Study Areas themselves is, on the average, of distinctly higher value than housing stock in the Control Areas. TIME SERIES ANALYSIS RESULTS During the period 1979 through 1982, mortgages processed in the • Control Areas of the study showed an average annual appreciation rate of +24.7 percent. During the same time frame, mortgages appreciated at an average annual rate of only +8.7 percent in the Study Area. In comparison, residential mortgages in Center Town- ship appreciated at a +16.7 percent average annual rate for the period. AVERAGE MORTGAGE VALUES 1979 - 1982 1979-1982 1979 1980 1981 1982 % Change Control Areal $16,038 $21 ,687 $22,650 $28,420 + 77% Study Areal 23,823 25,432 30,964 30,090 + 26% Center Township2 16,100 17,178 18,903 25,099 + 56% i .Source: Indianapolis Multiple Listings for Residential Prop. 2.Source:Home Mortgage Disclosure Act Statements. 29 MORTGAGE VALUES % Change From Base Year (1;73) . 103. Center To-.-inship 7- j t udy Area — — — C:ntrol Area — — .- 50 / rr 25 0 -25 -5U 1979 158o 1981 1982 REAL ESTATE LISTINGS ' % Change From Base Year (1?79) a 10a� Center Township 75 Study Area — — — Control Area — -- — 50 25 0 — — — — — -25 \ (, -50 -75 -130 (. 1975 1� O 19 1 19 2 30 The average value of mortgages from 1979 to 1982 in Center Town- ship increased by 56 percent while Control Area values Increased by 77 percent and the Study Area by 26 percent. RESIDENTIAL REAL ESTATE ACTIVITY 1979 - 1982 1979 1980 1981 1982 % Change Control Area Listingsi 29 23 15 15 - 52% Study Area Listingsi 28 28 26 29 + 4% Center Township Mortgages 2 898 635 377 182 - 80% 1 . Source: lndpls . Multiple Listings, Residential Properties . 2. Source: Home Mortgage Disclosure Act Statements . Both Center Township and the Control Area followed general market trends in the volume of real estate activity, falling by 80 per- cent and 52 percent, respectively, from 1979 to 1962. Once again, the Study Area performed in an atypical fashion, actually regis- tering a slight increase in volume (4 percent) over the same period. CONCLUSIONS While bearing in mind the above-mentioned difficulties in certain cases with the sample size at the sub-area level , the following observations may be made on analysis- of the data. A comparison of residential real estate listings indicates that the areas chosen in this study which have adult entertainment establishments within their boundaries have , on the average , a residential housing base of substantially higher value than that located in the areas chosen as control sites . Despite the higher value of housing stock In the Study Areas , property values appreciated at only one-half the rate of the Con- trol Area and at one-third the rate of Center Township as a whole. Another anomaly apparent in analysis of real estate activity within the three areas is that market forces within the Study Areas were present which caused real estate activity within its boundaries to run completely contrary to County. Township and Control Area trends . 31 in sum-nary , the available data indicate that twice the expected number of houses were placed on the market at substantially low- er prices than would be expected had the Study Area real estate market performed typically for the period of time in question . 1 32 APPRAISER SURVEY PROFESSIONAL APPRAISAL OF IMPACTS Because of the great number of variables that have the potential to cause a particular real estate market to perform erratically . at a small area level , it was decided to solicit a "best available professional opinion" from real estate appraisers regarding the market effect of adult entertainment businesses on proximate land values. The Indianapolis Division of Planning approached the Indiana University School of Business ' Division of Research for assis- tance in polling the real estate appraisal community on the sub- ject . The University proposed that the survey be national in scope and offered to design and pretest the survey instrument . Dr . Jeffrey Fisher of the University's School of Real Estate collaborated in drafting the instrument and conducted the ini- tial test at a workshop in early September. Analysis of this pretest indicated the need for minor adjustments to the form. In its final format , the instrument (cf. Appendix II ) posited a hypothetical middle income, residential neighborhood in which an adult bookstore was about to locate. Respondents were asked to numerically rate the impact of this business on both residential and comr.*rcial property values within one block and three blocks of the store. They were also asked to rate a num- ber of potential other uses as to whether they would increase or decrease property values. Finally, survey participants were asked to express what they generally felt the effect of adult bookstores was on property values. The survey sample was drawn at two levels. Using the membership of the American Institute of Real Estate Appraisers as the sur- vey universe, a twenty percent random sample of members was constructed for the entire nation. In addition, MAI (Menber Appraisers Institt+te) members who practiced in 22 Metropolitan Statistical Areas' (MSAs - as defined by the U. S. Bureau of the Census) of a size similar to Indianapolis were surveyed at the one hundred percent level . In January of 1984, 1527 questionnaries were mailed. As of February 22, 507 (33%) had been returned. These returns were split evenly between the 20% (249 returns) and 100% (25R returns) samples. In the national sample the rate of return by geographic region was fairly consistent: East ,41 - 27%; North Central , 56 - 28%; South, 89 - 25%; and , West , 63 - 24%.Return rates from the 100% MSA survey varied from 14% from Newark, N. J. to 62% from Cleveland, OM. 20% NATIONAL SURVEY RESULTS Survey respondents overwhelmingly (80%) felt that an adult book- store located in the hypothetical neighborhood described would have a negative impact on residential property values of premi - ses located within one block of the site. Of these , 21% felt that the property value would decrease in excess of 20% , while 59% foresaw a value decrease of from 1% to 20%. One-fifth of the respondents saw no resulting change in residential property val - ues. Seventy-two percent of the respondents also felt that there would be a detrimental effect on commercial property values at the same one block radius. Only 10%, however, felt that the effect would exceed 20% of worth with the majority (62%) seeing a 1% to 20% decrease in value . 28% of the survey predicted that ' there would be no negative effect . While the great majority of appraisers felt that the effect of an adult bookstore on property within one block of the site would decrease property values , they felt that this impact fell off sharply as the distance from the site increased. At a distance of three blocks , only 36% of the respondents felt that there would be a negative impact on residential properties , whereas 64% felt that there would be no impact at all . Better than three-fourths (77%) of the survey saw no impact on commer- cial property at this distance. In summary: - The great majority of appraisers who responded to this sur- vey felt that there is a negative impact on residential and commercial property values within one block of an adult bookstore. - This negative impact dissipates markedly as the distance from the site increases , so that at three blocks the esti - mate of negative impact decreases by more than one half judged by the number of respondents indicating negative impact at three blocks. - The majority of respondents felt that the negative impact of an adult bookstore is slightly greater for residential properties than for commercial properties and decreases less dramatically with distance for residences . 34 • 14r710'.:AL SURVEY OF APPRAISERS impact of Adult Bookstores On Property Values RES I DEt%'TI AL PROPERTY AT ONE BLOCK 2 .O. KI I•.II +C.- IfNt0 t.(11 •O. C4 KI 1 Cf/,•.l 1D r.a 10, ICt KI 1 _ 1 1 a 1 ) 1 I 1 _ ( 1 , 1 11 1 // 1 • 1 •1 &9CU1.II J-t•a 1 1,.8 1 31.1 1 7..6 A. It.$ I CJ J 1 1.• 1 •-• 1 1.• I 1./ 1 1 a.! b 7 1.. 11 .J 11 1 1I 1 . al. 1 .,! ••ti/.1t tin aH♦ 1 U.{ 1 .►..• 1 7•.7 ( aa.♦ ( H.1 1 a♦J ( s+.I I 1J.1 1 11.1 1 . . .----... J 1.a ) a.• 1 It.a t •.• 1. _ • 1 • 1 ♦ 1 /I 1 u l a• 4 .a CI.MLC J_ is.• J 1•.I t )... . 1 )l.I-J._71.1 / 7.• 1 l.• 1 f.a 1 •.. I CdL 41 M a• 11 /•{ ••t•1, qd as.a 7..I HJ u..• 2 `e 20+ iI- 1- Neg. No 23 10 Chg. COMMERCIAL PROPEP.iY AT ONE BLOCK 10 8 II.IP. t pVM 1 •0, Kt aI• I •Ql .. a..rtw wtII O•• 'I a It, Kt I 1 1 7 I a _L _ .• J l 1 1 / t 1 11 1 • 1 a• K C.I.K at.. 1 11.1 1 It .I 1 M.a 1 1/.• J I•.1 1 t.a 1 11.• 1 It.• 1 •.1 1 1 I.I l /.• 1 •.• 1 1.a / 1 1 1 1 1• 1 tI 1 /1 1 M 0C(•1.1[.11•(M! 1 a.l 1 ,..1 1 •I.t 1 It.• 1 1•.1 1 I.l 1 a.• 1 ... 1 •.• I J_. -M.J __ 7.1. 1.. U J_ )1 -J_ 1 2 •(c.l.11 II171t. I da 1 I..• I »./ 1 I N-. I 1 7t.6 1 ss.• 1 ...a .. __t. a.1 ..l J.• ! -LA.L .1. 18.4.-J • 1 IJ 1 14 1 to 1 .O C-&-Ll .-1 99.6 1 )I.a, 1-37.l_l.1•.L l.—L .A i , ,... I .(.. I % 20+ 11 - 1- Neg. No 1 a./ 1 I.• 1 1..• 1 1 .aJ v-•-•r.y--.-•.al r-r---�l+rr---a 1. ca.� •1 a• .. •1 .:. 20 10 Chg. tolac /•.I M.a ".I /I.I 1". 7f I4tTIO'IAL SURVEY OF APPRAISERS it-+fact of Adult Bookstores On Property Values RESIDEINTIAL PROPERTY AT THREE BLOCKS K{14 t Ov•1 1 •lT K, It-a? r0-,- 606A 04/1 •0• 100 itl 1 n • 1 / ! 1 1 t • 1 • 1 a K C111aK )%Lai 1 1$./ 1 l•.f 1 0.4 1 •.f 1 . A.I 1 /.1 1 1.a 1 •.• 1 •.• 1 I 1 / 1 • 1 17 i f 1 as f.f tal.f[.laa<1•t / a.t 1 I•.1 1 M.a 1 •.. 1 •.! 60- 1 •.• 1 ..• / t.t , •.a 1 1. s J _ 1.. 1 l• 1 IL 1 f "cA$.it tclot% 1 •.• l fl.7 1 .a.• t !1.• 1 fl.• 1 //.• 1 f1.• 1 !t.• 1 I/.• 1 __ _1 J./ J /.• 1 .II.J 1 •.• 1 40 a 1 >• 1 N / •• am anrr.a 1 If.l 1 11.1 1..tf.J 1 I1.1 1 •l.f 1 tJ.t 1 fl.• 1 1 Il.l 1 /..1 1 1•.I 1 /a.• 1 • 1 • 1 • 1 1 1 • 1 1 ,K•I•it tl,Cl•a 1 •.. 1 •.• 1 IM.• 1 •.• 1 •.• 23VAVA _ _ a •w J _... i. ,.,_ ,__,.. L _ VA 1 ..• 1 ... t ... 1 ... I VA VA -1^----(------(-- ---1 --1 43�It.... •l _ w •• U - tU f•1•t. /•A ft.• a•.• /a.• IH.• % 20+ 11- 1- tleg, tlo 20 10 Chg. COmKERCIAL PP.CPEP.TY AT TREE 3L'v'CKS 100 Cpw1 1 "" 80 ap tc, It.•t rv= iWf• K•1 •O• c of at 1 I c r r, .0 a 1•l 1 I • / a 1 • 1 . 1 / 60 KCat.K /•Il• 1 .•.• 1 1.1.• 1 •.• 1 .•.• l I.•. 1 •.. 1 •.• 1 0.0 1 •.• 1 f 1 7 1 f I • 1 • 1 •1! .t(►Ia1(tl••a!•a 1 1l./ 1 1/.• 1 II.. 1 ... 1 ... 4r] � 1 1.1 1 •.• 1 !.! 1 •.• 1 Fr C.l.il I•,OI•• t ••.r 1 ".1 1 •!.• 1 i1.1 1 1..• 1 •.• 1 /l.• 1 f•.% a 1t.1 / 1 .1.• 1 •.• 1 r.1 1_ f.• t 20 • 1 >H 1 M 1 •1 1 M 1 IM M CrrriL_ .1 I/J_l .fl.l 1, 71.1 /..1/ •-_L .2&. - 1 •f.• 1 tl.• / N./ 1 •/..a 1 1 /!.I 1 1•.1 1 M.• 1 fa.J 1 •Ic•.--.r 1,r----�1-v-.--.-1-..__1 $ + — — 1.''.g, o I.c.a.0 Iarou• 1 •a / •.• 1 ••.• 1 .•.• a ..• 20 10 Chg. •1 ._ Y ••__ V ... 8GA 36 Respondents were also asked to evaluate the impact on residential property within one block of a number of alternate uses for the hypothetical site described in the survey . Of the alternate uses proposed, a clear majority felt that a medi - cal office or a branch library would increase the value of sur- rounding residential property. A storefront church, welfare of- fice , tavern , record store , ice cream parlor or video-game parlor were generally felt to neither improve nor decrease residential property values significantly. On the other hand, a substantial majority felt that a pool hall , drug rehabilitation center or a disco would decrease property values - although not as overwhelm- ingly as an adult bookstore, NATIONAL SURVEY OF APPRAISERS Impact On Residential Properties Land Use Va 1 ue Higher Lower Much Some Same Some Much Store-front church 5% 20% 58% 16% 1% Pool hall 1% 8% 45% 38% 8% Welfare office - 12% 46% 33% 8% Neighborhood tavern 2% M 45% 32% 4% Record store 8% 274 61% 5% - Medical office 24% 38% 35% 2% - Drug rehab Center - 7% 35% 42% 17% Ice cream parlor 15% 30% 53% 3% - Video-game parlor 1% 18% 50% 27% 5% Disco - 11% 42% 35% 12% Branch 1 i b ra ry 24% 34% 38% 4% - 37 The survey also asked the degree to which adult bookstores affect property values generally and the basis for this opinion . Twenty-nine percent of those expressing an opinion saw little or no effect as the result of adult bookstores on surrounding property values. They based this opinion on their own professional exper- ience ( 135) , the observation that this use usually occurs in an already-deteriorated neighborhood (24%) and the feeling that only one such adult entertainment use would be inconsequential . i A substantial- to-moderate negative impact was projected by 50% of the respondents. Twenty-nine percent felt that this was be- cause it attracted "undesirables" to the neighborhoods in which they were located, while 14% felt that it creates a bad image of the area and 15% felt that the use offended pervailing commun- ity attitudes so that home buyers/customers would be discouraged. 13% based their opinion on professional experience . A number of survey respondents (20%) saw the potential impact on a neighborhood as being contingent on certain variables . 28% of these felt that it would depend on the existing property val- ues in the area as well as the subjective values of its resi - dents. 23% felt that development standards such as facade and signage would determine impact and 11% saw the nature of the ex- isting commercial area and its buffering capacity as being most important. r c ' /lGla. CO3..7 1 .o. K t IC.►I .0"- oev7. .!►1 r0. CO rCt I CCr,•.,t 1T I.l lot KI , 1 1 , 1 7 1 • 1 IMPACT ON VALUES ' ' 1' ' ' '• ' •' 100 unu, ro I.r CI , Jo.o 1 Io.1 I t..� 1 !,.! 1 I 1 14. 1 tM l •] 1 ]] t 111 1 YItla HtC<►.t, 1 11.. 1 !..• t 17.1 1 11.3 1 •..! 1 J1.1 1 W.. 1 07.). 1 •1.1 ! 80 1 •.] 1 11.r loot 1 01.. 1 c•atlr.i rt t 11.1 t I1.1 t )a.. 1 I1.• 1 1..1 •C o/l rlor Uo1l 1 1l., 1. /•.I , 111.1 1 .31.4 1 ,1.& 40 - cix. .) .. !1 ./ got tCI.t 14.6 01.1 ,..1 toot 1.1.. i 20 $ None/ Subst/ Cont. little Mod. 38 _.► .. : ._ .......... .. _ r ►c�;.i;iii►.ii:_.�:.s.ii►:41i:t.1%ii.i:.:�i'-_-� .. it i m n o i-l.--•-- '•. �- _•�4 •.....=__irD- :lii: 1►:t.!iii.�i►i. i: .i: 1i:i. :ii� .. �►:..{.F• -., {rtt i.�, i►.b"i..e i►tt i .t"S .� I,,�' i.t,-1 .► I� �- m x t'1t► �ttt.�':it.l►il `►it►�i►i.,t i I}it►�iLL tILL I� W O I .. .:,. ei• f.tt .. :t� ,ct :t I, � u, �,,� ►�ii►t.•.ii.i:,:.lira:�:s►.�a:i.l_a►sl.at_�ia►.t. ; tk!iii:f.:Li:1.s ►r;:.�i`i.E .�:('t:.j.►s_. .: I�i'i ►t� ..�li 1itt.itli�t:}l i►l.isii 'i►l.�l1►.'� gi ytls:-rli i.tii .lit�.lits i►ti.iiis.l:i: li.ii.iii�. ii KD it i _h -�� - -, y� 'r'•, �' i �� �i! F� �t!�'f'.,iii.•liii.(itY_li:illii�,'i:►;.l:i�.l:':,?iii.l►��i l -ii-l:t:. ►'►.�t: .!} lt.t!i's►.ii:-.li I � _4_ ° 100% MSA SURVEY RESULTS The 100% survey of Metropolitan Statistical Areas similar in size to Indianapolis produced results that were consistent in virtually all respects with the results of the 20% national survey. As in the nationwide survey, respondents overwhelmingly (78%) in- dicated that an adult bookstore would have a negative effect on residential property values in the neighborhood described if they were within one block of the premises. 19% felt that this depreci - ation would be in excess of 20%, whereas 59% foresaw a decrease in value of from 1% to 20%. Sixty-nine percent saw a similar decrease in commercial property values within one block of the adult bookstore. As in the national survey , far fewer (only 10%) felt that a devaluation of over 20% would occur. The majority (59%) saw the depreciation as being in the 1% to 20% range . Once again , the negative impact observed within a one block radius of the adult bookstore fell off sharply when the distance was in- creased to three blocks - although, judged on the number of those indicating no impact , there would appear to be more of a residual effect on residential properties than on commercial properties . 39% of the appraisers felt that a negative impact on residential properties would still obtain at three blocks from the site. Only three percent felt that this impact would be in excess of twenty percent. The remaining 36% felt that depreciation would be some- where in the one to twenty percent range. 61% saw no appreciable effect at all at three blocks. Commercial property was judged to be negatively impacted at three blocks by 23% of the survey. 76% saw no change in value as a re- sult of the bookstore. In summary: Appraisers assigned a negative value to an adult bookstore located within one block of residential and commercial pro- perties at an approximate three-to-one ratio. At a three block distance, this ratio tended to be reversed. The number of those indicating a decrease in value at three blocks decreased at only one half the rate for residential property as for commercial property. 40 HSI. SUn1'EY OF APPRAISEPS IMPACT OF ADULT BOOY,STORES 0:l RESIOENTIAL PROPERTY AT ONE BLOCK Dec re as020{ Is M-20 11 1$- 10t iI((II : ill II ! , ! (• i ! Decrease ;!!�{�{{;�;► I�II f��j f {1!i�li ( II11 ��I 4 j i . I{{ { I� IBM No Decrease I % 0 20 40 60 80 - � lt•.•1 1 ..e. wl . ..•. 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I I.1 1 11.1 1 •r 1 1.1 1 ••.• 1 •.• 1 NJ 1 `• 1 1.! 1 •.• /. •.! 1 y I_ L1.1..J.. 1_.LI 1�_- I / I 1 1 1 1 • 1 • • • 1 • / A 1 •.! 1 1.• ! .1 11.1 /_ !•• .1 W.J. is".1 •.1 J-Ji I Kt 1 / 11.f / M.• 1 MN 1 Mr 1 r.\ 1 Y.I 1 •.! 1 1 •.• 1 /.• I •J 1 /.1 t M• 1 I.I 1 1.•.-••••1•..��1.1••-•-1�••••_-lv---••l w.wa.al•sar--.-1•r�r w•1_-. 42 • / • 1 1 1 • I I 1 • 1 • 1 t 1 • •.• I w• 1 M.• I •J 1 •J / 1.• • •J 1 i.• 1 •.• 1 L• t �.• l tl.a / •J .l .IJ _! .•i1...•.• 1 4.1 1 �. 1 •.1 I w1 I I.• 1 •.I 1 •M 1 •J 1 •.+ 1 •N 1 1 • I • I _ • /.- I .lam /.J 1.1 •.1 • 1 1 1 •.• 1 •.• 1 1.1 1 1••.• 1 •J 1 •.• / •J 1 •.1 1 1.• • 1 w1 J LI / IN I_ •.• ♦ IJ..I •r../ .IJ / /.1 1_ • • • f •• • •1 41 •r MSA SURVEY OF APPRAISERS I hPACT OF ADULT BOOKSTORES-ON. RESIDENTIAL PROPERTY T R'EE BLOCKS I ]%-20 , f ' " oll lij�i , , 1 1 { 1 1 1 4{I 'll 1 1 .IIIIII De c re as Ii;; '+Ili! {,�) ±If�i!� 1 !fi1, l Ro DPc reas,. I�I:I1�! 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SURVEY OF APPRAISERS IMPACT OF ADULT BOOKSTORES ON COMMERCIAL PROPERTY AT THREE BLOCKS Decrease>20% 11 I 1 2 0,, T Decreas i;;,: . !H No Decreas 11!ill'i 11i,01:11i Hill % 0 20 40 60 80 4Z 4 ............. j a j T: To ........... 1.11 11 13 1.: 1 a.. A . I.S S.. S.6 $-;I I it I Aj 8'-'AJ .1 A& I 'as a ............. 2 ..... ..... &.96 1 .1, 4.4 I A a 14A 44 In response to a question asking appraisers to rate the impact of a number of different corm rcial uses at the same location on residential properties within one block , the majority felt that a medical office or a branch library would have a favorable im- pact while a welfare office or drug rehabilitation center would have an undesireable impact. The majority felt that a storefront church, pool hall , neighborhood tavern, record store, ice cream parlor or a video-game parlor would not have much of an impact and were about equally split as to whether the effect of a disco would be neutral or negative. MSA SURVEY OF APPRAISERS Impact On Residential Properties Land Use Value Higher Lower Much Some Same Some Much Store-front church 4% 24% 52% 20% 1% Pool hall 1% 12% 48% 33% 6% Welfare office 1% 13% 41% 37% 7% Neighborhood tavern - 17% 52% 25% 6% Record store 6% 29% 54% 10% - Medical office 20% 37% 39% 4% - Drug rehab center - 6% 39% 40% 15% Ice cream parlor 14% 29% 52% 5% - Video-game parlor 1% 17% 51% 28% 3% Disco - 13% 44% 33% 10% Branch library 24% 37% 34% 5% 1% 45 In response to the question about their evaluation of the impact of adult bookstores generally on surrounding property values , 21% of those expressing an opinion felt that there would be little or no impact with such a use. They principally based this opinion on their experience as appraisers (20%) and the observation that such uses usually located in areas that had already deteriorated (26%) . 47$ of the survey felt that there is a substantial -to moderate impact . Their opinions were based on professional appraisal ex- perience ( 18%) , and the observations that : given current mores , an adult bookstore would discourage home buyers and customers (14%) ; the use precipitated decline and discouraged improvement (11%) ;and, it would attract "undesirables" to the neighborhood (29%) . The nature of this impact on property was contingent on a number of factors in the minds of 32% of the respondents. 13% felt that it depended on local attitudes and the adequacy of legal controls on their operation. Exterior factors such as signage and building facade quality were seen by 16% as the determinant . 30% felt the impact would be directly related to the values (both monitary and human) prevalent in the neighborhood. 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L• •.• I.• •.• /A •.• )A •,•_-•.• •.• i,• f.• •.• 1./.• 1 - No reason given. 5 Volume/type of 2 . Not enough informa- customer. . tion. 6 Decore/management. 3 - Local attitudes 7 - Deco re/management. and controls. 8 Type of nieghborhood 4 - Nature of existing values. commercial uses. 9 - If attracts similar uses. :s SUMMARY OF FINDINGS The great majority of appraisers (75%) who responded to the national survey of certified real estate appraisers felt that an adult book- store located within one block would have a negative effect on the value of both residential (80%) and commercial (72%) properties . 50% of these respondents foresaw an immediate depreciation in excess of 10%. At a distance of three blocks , the great majority of respondents (71%) felt that the impact was negligible on both residential (64%) and commercial (77%) properties . Even so, it would appear that this residual effect of such a use was greater for residential than for commercial premises. In answer to a survey question regarding the impact of an adult book- store on property values generally, 50% felt that there would be a substantial-to-moderate negative impact , 30% saw little of no im- pact , and 20% saw the effect as being dependent on factors such as the predominant values (property and social) existing in the neigh- borhood, the development standards imposed on the use , and the abil- ity of an existing comnnercial node to buffer the impact from other uses . The results of the 20% national sample and the 100% survey of Metro- politan Statistical Areas were virtually identical . The one signi - ficant variation that did occur was in the response to the question asked as to the effect of adult bookstores on property values gener- ally. Respondents in the MSA survey placed more emphasis (32% versus 20%) on conditional factors at the site . 51 FOOTNOTES 1 . Metropolitan Statistical Areas (MSAs) surveyed at 100% were chosen on the basis of having a one to two million population at the time of the 1980 U. S . Census . They were : Phoenix, Arizona ; Sacramento, San Diego and San Jose , California; Denver/Boulder, Colorado; Hartford, Connecticut ; Fort Lauder- dale , Miami and Tampa, Florida ; Indianapolis , Indiana; New Orleans , Louisiana; Kansas City, Missouri ; Newark, New Jersey ; Buffalo, New York ; Cincinnati , Cleveland and Columbus , Ohio; Portland, Oregon ; San Antonio, Texas ; Seattle, Washington ; and Milwaukee, Wisconsin. Although slightly outside the population parameters for this selection , Louisville , Kentucky and Atlanta , Georgia were also included. 2 . Regional designations used were those .employed by the U. S. Bureau of the Census for the 1980 Census . The data were processed and crosstabulations performed using the Statistical Package for the Social Sciences. 3. The discrepency between the number of survey responses and the number of responses to the question in this and subsequent tab- les is the result of some respondents having omitted answers to questions b and 7 of the survey. t 52 APPENDIX I Area Maps NOTE For the purpose of this study , the maps included in this Ap- pendix categorize existing land uses within the Study and Con- trol Areas as having a Resi - dential or a District Commer- cial Character. All dwelling district , neighbor- hood-related commercial and spe- cial use zoning classifications are designated as being of "Res- idential Character". More intense commercial uses , industrial uses and district- related special uses are consi - dered to have a "District Com- mercial Character". Ell H . 6unpa Ille El� ��llI �llll� � r9` �" ' Ili � III��I RUBBER! IN viol 211111111116 �'Q ! 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CHAIN DIVISION + ; District Commercial , r 1 4 Character 1 ® Control Area Centroid I_ X ADULT ENTERTAINMENT BUSINESS STUDY i . 0 L— 1 . • O A,:y q IE N P A R K LA S Q ) :t rt w :cl _ CftAR_f3>�. W 1150 n I 11 It's - 1 ' O I I* I j v ,• J ,�IJI qtS i i . 9 I •t: l yJa: t141 ]yC 5 •14l) I yl V �3t t ol _ J I 1 -- ' 1 � 1 n CONTROL AREA LAND USE I I R E At S T G A TI E �t 750 North Shadeland Ave. S HIO ' D PINlG r [� Residential Character I I I District Commercial CIE T E Ri Character I I Control Area Centroid I I I - xI ADULT ENTEP.TAIiMENT BUSILESS STUDY . — _ - — .—._..__ L�L � ' ►• r. ) {� .� Il. ) l• rat 1�'f 1 r• a . 9�1 Jr ?=J: I 21LT 1 in , h\ E711 9 2 a Ir.,. in.- - I + h�` s� - - - —sr try. r_ .; � — �I ^r ► I I I, 5) -rJ� S S� St fUt ' • JJ v Q• J3 rt J, Ru. O L j it 20+ ,4V J" 37. LS00 16J. ! 00 �. • .i•_ 1 S •� + / . Jar �`Elf — — _ S.L..I S" I ! O J i •1: Q •� � I tQv � i s. .s g a J t . CONTROL AREA LAND USE k C(4[IRY (LKF 5200 North Keystone Ave. [� Residential Character District Commercial I Character I rru N aODR rY ® Control Area Centroid t {- X11 t APPENDIX II Appraiser Survey CITY' OF INDIANAPOLIS JAI^• WLLIAM H HUDNUT,III � r = I.tl.YQfl DAVID E CARLEY DEPARTMENT Of METROPOLITAN DEVELOPMENT DO*.noa January 20, 1984 Dear MA I Member: The City of Indianapolis , Indiana is currently In the process of preparing a new local ordinance that will regulate the location of adult entertainment businesses in relation to residential neighborhoods in our community. In an effort to provide a basis for the proposed legislation. that is equitable and legally defensible, I would like to ask your help in establishing a "best professional opinion" on the matter. As a real estate professional , the oplonions you share with us on the enclosed survey forms would be very valuable to us in the development of a positive legislative approach to this difficult local issue. Thank you very much for your assistance. Sincere P v Carley cc. L. Carroll 11- I INDIANA UNIVERSITYSCHOOL OF B151`LSS ' . ��• BkominglonAndianapolis r^ ITJ 301h and Fee Lane -2: Bloomington, Indiana 47405 •G'T�• Diy000n of Research TO: Professional Real Estate Appraisers FROM: Indiana University, School of Business, Division of Research Please help us in this brief national survey. The information provided will help clarify an important question. Read the following information about a hypothetical neighborhood and respond to a few questions in terms of'your professional experience and judgment. A middle income residential neighborhood borders a main street that contains various commercial activities serving the neighborhood. There is a building that was recently vacated by a hardware store and vill open shortly as an adult bookstore. There are no other adult bookstores or similar activities in the area. There Is no other vacant commercial space presently available in the neighborhood. Please indicate your answers to questions 1 through 4 in the blanks provided, using the scale A through G. l SCALE: A Decrease 201 or more B Decrease more than 10% but less than 20% C Decrease from 0 to 10% D No change in value E Increase from 0 to 10% F Increase more than 10% but less than 20% G Increase 20% or more 1) Now would you expect the average values of the RESIDENTIAL property within one block of the bookstore to be affected? 2) Now would you expect the average values of the COYJ11RCIAL property within one block of the adult bookstore to be affected? 3) How would you expect the average values of RESIDENTIAL property located three blocks from the bookstore to be affected? 4) Now would you expect the average values of the COKM]MCIAL property three blocks from the adult bookstore to be affected? over T S) Suppose the available commercial building is used for something other than an adult bookstore. For each of the following potential uses, would the average value of residential property within one block of the new business be. . . A much higher B somewhat higher than if an C about the same adult bookstore D somewhat lower occupied the site. E much lover In the space provided, write the appropriate letter for each potential use. Store-front church Drug rehabilitation center Pool hall Ice cream parlor Welfare office Video-game parlor Neighborhood tavern Disco Record store Branch library Medical office 6) In general, to what degree do you feel adult bookstores affect property values? 7) Why do you feel this way? 8) Where do you practice? City State . Your name (If you prefer not to give your name, pleAse check here ) Thank you for your cooperation. Please return this questionnaire in the postage paid envelope provided for your convenience. r '1 /l r j APPENDIX III Land Use Control of Adult Entertainment le c ' APPENDIX iII LAND USE CONTROL OF ADULT ENTERTAINMENT LEGAL BASIS Zoning has traditionally been defined as a process by which a municipality legally controls the use which may be made of pro- perty and the physical configuration of development upon tracts of land within its jurisdiction. This is accomplished by means of zoning ordinances which are locally adopted to divide the land into different districts permitting only certain uses within each district for the protection of public safety, welfare, health and morality. ) Zoning regulations not only regulate the use to which buildings or property may be put within designated districts , but also the purpose or object of the use beyond the mere conditions or cir- cumstances of the use.2 In a 1920 landmark decision , the New York Court of Appeals up- held New York City's comprehensive zoning legislation,3 and re- affirmed this legislation as a proper exercise of the city 's police powers. In 1926, the practice of comprehensive zoning received substan- tial support when the United States Department of Connerce pro- mulgated the Standard State Zoning Enabling Act . This Act be- came the model for most of the early zoning enabling legisla- tion in the country. While the courts have reaffirmed that municipalities are proper- ly exercising their police powers through zoning regulation , it is generally held that they have no inherent power to zone ex- cept (as is the case with the police power itself) as such power is delegated to them by the state legislature through statutory enactment. The right of state legislatures to delegate compre- hensive zoning power to municipalities , on the other hand , is uniformly recognized by the courts .4 Because municipalities in the state had to be enabled to exercise zoning powers within their jurisdictions , the Indiana State Legislature , by means of enabling legislation, delegated this power to local units of government.5 Control of the use of private land inevitably raised a number of constitutional questions. In the landmark 1926 case of Euclid v. Ambler Realty Co. , the United States Supreme Court upheld the city of Euclid, Ohio's municipal zoning ordinance which had been claimed to involve an unconstitutional deprivation of property by deciding that comprehensive zoning ordinances are a proper Itl- 1 exercise of the police power and do not constitute an unconstitution- al deprivation of property. This position was reaffirmed by the Supre ne Court of the United States in 1927.7 Thus , the general legality of zoning is established beyond doubt . Subsequent decisions by this court established that such ordin- ances , however, could be unconstitutional when applied to a par- ticular property. This established the basis for the system under which the City of Indianapolis currently operates where each var- iance or rezoning request is decided on its own merits . THE PUBLIC WELFARE The police power authorizes a government to adopt and enforce all laws necessary to protect and further the public health, safety, morals and general welfare of its citizens.9 Limitations on the exercise of zoning power are essentially the same as those restricting the police power under the U. S. Consti - tution, i . e. , they must be reasonable and guarantee due process and equal protection. It may not be exercised in an unreasonable, oppressive , arbitrary or discriminatory way. Zoning laws , then , must have a real , substantive relation to the legitimate govern- mental objective of the protection and furtherance of the public health, safety, morals and general welfare of citizens . The public welfare, in these contexts , means the stabilization of propertyy values , promotion of desirable home surroundings , and happiness , and and embraces the orderliness of community growth, land value and aesthetic objectivesil and is reasonably design- ed to further the advancement of a community as a social , econom- ic and political unity. 12 COUTROL OF ADULT ENTERTAINMENT13 Reacting to the increased availability of pornography in the United States and attendant pressures at the community level for its con- trol , a number of municipal governments have addressed the pro- liferation of adult entertainment businesses through, among var- lous methods , land use controls . The validity of such an approach was upheld in 1976 ip the landmark decision Young v. American Mini Theatres , Inc. 14 in which the Court upheld a Detroit zoning ordinance which prohibited more than two adult movie theaters or other sexually-orientated enterprises from locating within 1000 feet of one another or certain other designated businesses . Against III -II t , attacks grounded in the First and Fourteenth Amendments to the Constitution of the United States , the Court sustained the ordin- ance on the dual bases that: 1. The ordinance was a reasonable response to demonstrat- ed adverse land-use and property value effects asso- ciated with sexually-oriented enterprises ; and 2. the ordinance silenced no message or expression but merely placed geographic restrictions upon where such expression could occur. While an exhaustive analysis of the Young decision is beyond the scope of this discussion , the following generalized principles may be gleaned from the plurality, concurring and dissenting opinions of the Justices. First , hostility to constitutionally protected speech is an impermissible motive. The more apparent and rational the relationship of the adult use restrictions to recognized zoning objectives , such as the preservation of neigh- borhoods and the grouping of compatible uses , the greater the _ likelihood that the restrictions will be upheld. Second, even a properly motivated ordinance will be invalidated if it unduly burdens first amendment rights . For example , an ordinance imposing locational restrictions that are so severe as to result in an inability to accommodate the present or anti - cipated number of adult businesses in a municipality will cer- tainly be struck down. The Young court repeatedly moored its de- cision upholding the Detroit ordinance upon the finding that numerous sites complying with the zoning requirements were a- vailable to adult businesses and that the market for sexually - explicit fare , viewed as an entity, was therefore "essentially unrestrained". Third, ordinances which are so vague in wording and definitions that a non-pornographic entrepreneur is unclear whether he falls within its proscriptions may be violative of due process . A vague ordinance may operate to hinder free speech through use of language so uncertain or generalized as to allow the inclusion of protected speech within its prohibitions or leave an individual or law enforcement officers with no specific guidance as to the nature of the acts subject to punishment. Finally , an ordinance which authorizes the exercise of broad discretionary power by administrative officials to determine which adult business will be allowed to operate , especially if the exercise of such discretion Is not grounded on objective , ascertainable criteria, will probably be disapproved as contrary to the precept that , in the First Amendment area, "government may regulate only with narrow specificity". III -III i Any community, then , which would employ its zoning power to regulate adult uses within its jurisdiction must be particularly concerned that the adoptive ordinance be demonstrably motivated by and found- ed on sound land use principles , it allow reasonable accommodation for such uses within its jurisdiction , and that it clearly define both the nature and regulations of the use in order to avoid, to the extent possible , the need for subjective interpretation of each proposed use. The Young decision has encouraged a great amount of experimentation on the part of municipalities in an effort to prevent deterioration of their commercial districts and adverse impact upon adjacent areas . The effectiveness of these innovations will be determined by time and the legal tests to which they will be subject as this business segment establishes itself. For the time being, however, this decision encourages an approach in which localities have tended to control the siting of adult en- tertainment businesses on the basis of land use . I 1 s III -IV FOOTNOTES 1 . Cf Smith v. Collison , 119 Cap App 180, 6 P2d (1931) ; Devaney v. Bd. of Zon;nq Appeals , 132 Conn. 537, 45 Ad2 828 ( 1946) ; T oi"ouul-ouse v. Bd. of Zoning Adiustrent , 147 Me 387, 87 Ad2 670 (1952) . 2. Cf American Sign Co. V. Fowler, 276 SW2d 651 (KY •1955) - 3. Cf Lincoln Trust Co. v. Williams Bldg. Corp. , 229 NY 313, 128 NE 209 (1920) . 4. Jonas v. Fleming Town Bd. & Zoning Bd. of Appeals , 51 Ad2d 473, 382 NYS 2d 394 (4th , Dep' t 1976) . 5. I .C. 36-7-4. 6. ' Euclid v. Ambler Realty Co. , 272 U.S. 365 , 47 S Ct 114 , 71 L Ed 303 (1926T. 7. Cf Zahn v. Bd, of Pub. Works , 274 U.S. 325 , 47 S Ct 574 , 71 L Ed 107 1927 ; and Garieb v. Fox, 274 U.S . 603, 47 S. Ct . 675 , 71 L Ed 1228 (1927) . 8. Cf Sup. Ct, in Nectow v. Cambrid a (U.S. 183, 48 S . Ct . 447 , 72 L Ed 842 (1928) . 9. Cf Scrutton v. County of Sacramento, 275, Cal App 2nd, 79 Cal Rptr 872 19 9 ; Troiano v. Zoning Corrn'n of Tarn of No. Bran- ford, 155 Conn 265, 231 A2d 53 19 7 ; and, Trust Co of Chicago v. City of Chicago, 408 111 91 , 96 NE 2nd 499 1951 . tO. Cf State v. Bessent , 27 Wisc. 2d 537, 135 NW 2d 317 (1965) . 11. Ibid. , and J .D. Construction Co. v. Bd. of Ad' . , 119 NJ Super 140, 290 A2d 452 1972 . 12. Ibid. , and Fischer v. Bedminster Twp. , 11 NJ 194, 93 A2d 378 (1952) - 13.For a more complete discussion of this subject , see Mathew Bender, Book V, Chapter III , Sections 11 .01 ,11 .02 and 11 .03. 14. Cf 421 US 50, 96 S Ct 2440 , 49 L Ed 2d 310, reh denied 97 S Ct 191 (1976) , rev'd 518 F2d 1014 (6th Cir 1975) . 111-V :;.i�rprr f • �- POLICE DEPARTMENT cL[VCLAND. OMIO DEPARTMENTAL INFORMATION ais"•i.'alidi� st{S=ti�^. L-:'_� I lust 24, :-XAMINLD BY_ RANK u��13t t!7? Fr Rom C_='- I. Belau, Captain TO John a nil_, Deb. I1sp�ct-r aue�ccT . r=t Shoo cutlat3, ccntribution of these cu;,;e*.3 to the Ixcreased cr=^e r_:e in e census tract areas c: :he e-it s:.=-s. copirs TO Chief'a C_'fice, ?+a Depart—tent, Bureau :.f 1-i—sp ectiors. Qir: Durin; the Naticnal Conference czi the 31ighz o: Obsce.i_ty ,:-hicz ::_s ,%Id in Cleveland, Ohio cn %ly 28-29, 1977, Capta�: Carl I. Delau of the Cleveland 2c_ic_ Dspartnent participated in a ps.nel discussion w:^.ich :ors =oderated by Brace T-!ylor, ;_s_sta:.t Law Director of the City of Cleveland. The subject covered :;as titled as the "T`:s Cbscenity Upon the To`w.1 Coz*unity" and it ;:as during t.-ds discu.ssica tat C_pta_n a tzlk in += llch he readily _cinted out that areas :•rh_ch housed rorro3rs-:y sfons had a ^�_-c r h~3her cri-e rate t`:er. other areas of the city. Cc=ents from �ts talk an:! st.tiarics wn__ he provided axe as folio,.ra. Experienced Detectives during their _:.%ay investigations ::3•re had the occ3sior_9 to gain personal lc owledge of the i.-pact o: ;orr_cgraphy and its contr:cutj cz tc crime, in particular raves and sex offenses. Tree extremely offensive c=ines �-._ch ereIlk well k.:o.rn to ;.his de.a:-e nt are -briefly described as follaws. .1IRMIt: A.-i eight year old female ::as sexually assaulted sand 7 :` ._red =;_ her bcdy left in 3 county park. :he 24 year old, .:ale assailant was ap-re'rerded =:d '_^veshigation it ;:as found that the assailant was az avid reader or hard cc:a -:o_nog-?_h ___ �ritnesses ind'_cited that Srith{n several hours In, '.as at a smut shop viewi__; .:agaz:zes . -ic srovred ,juvenile =,lea and fe=les in nude poses. WEB: :_Oter a series of rapes, tea assailant ;ras found to be �t ?=' ;»- cld =31e. Repeating as stated in tta official :office report, "^_'.a s1:s.ect Stated that Bother some of bis ideas for the par rice?ar acts used in her ripe (Cur.nili+-Fus; :ra'_ from •r+air•1ng same in a :ornogr =hy naSazine. Sus:ect further stated to Detectives L:a: e _ +�e•^red hard core movies iz a theater, area of ?.. 1-05 St. rr' Iuc?1d Ave. S. d OF?EMSM: Huaband and .e=e, ages 33 and 26 hive been cha— .•__. a -fie= of various se.-c offenses on three children of one family, boy, , ag3 10, :.oy, -g= __ =.d a:r?, :e3 12. The i---sbe.nd had a large collection cf ccre movies and a_3g2z.nps and '•.n= taken rhot..c-rachs of the children involved in their sex relations. Knowledge gained from our routine inv.stigation indicated a vary c:oze ccrrel=tionsrhip -�etween many types of cr=aes and t a ewer increasing exposure of hard ccr e magazines end =o%ries. it the request of Bruce Taylcr, the Police Depa�ent =Ade use c_' w-e Data 2roce_str 3 Unit and obtained cr{.=e a tat{stics =zz t.he entire City. hue facts a.s o=.a'zed verified :prat aiowledgable ;olice of=_cers had a1l:=y3 cien aware of and is that the incident of er!--e is =uch greater in areas : z2re s-mt outlets ?_e located. ___ as related i.-, this r_ort were obtained on a census tract basis, ::..is beirs the small_;—. - of measure_nent into which the geographical arts of.Cleveland is divided. The 1-0,70 cen-sus s•.:r- vey conducted by tha U.S. C-zsu3 Bureau divided the City of Cla4>>13nd into 204 equal_y ce-"us tracts. The figures provided below are related to census tracts. . Cleveland has a total of 26 ssut outlets -&ieh deal in *=-rd core _ . which consist of 8 movie houses and 18 &re took- stcras :ri`.eh pctp shown included at These 26 outlets are located in 15 ca sus tracts out o: :re 2. C4 census t:-=cts +z t`o c::y, • _ . . ­_ _—.a _-- 1._• Intl +n�•�•• n•+ col+?3�iva ._.a3�r=ctioAS. POLICE DEPARTMENT CLEY[LANO. OHIO DEPARTMENTAL INFORMATION �•�+.:st 24 ms�.- s 1f XAMINED BY_ RANK =ua-ust � 1f7• Delau, Captain TO .Tor_a 11'11a, D"". I.1S7?Ct^.r suejccT Sr=t Shoo Cutlats, ccatrioution of these cu let a r 'e a to the Lacrersed crime - "' t a census tract areas .he s--it s -s CCtICSTO 1--hief'3 C_-fice, lava DePart*snt, Bu_resu 3.' 1-iZ ections Si_. During the National Cor-Terence cn t e Bligh. of Obscen_ty ;:hatch was _.:ld in Cleveland, Ohio c3 .;uly 28-29, 1977, Captain:. Carl I. -Delau of t::e Cleveland ic_ice Depas-tient participated in a panel discussion which :r`s moderated by Bruce Taylor, :;_sista.:t Law Director of the City of Cleveland. The s::bject covered -gas titled as the "The 1= c= Cbscenity Upon the Total Coc:unity" and it ::as du::-^e teaks discussion tat C_pta_- jj -' -- . .. 3 tzllc in .hich he readily =eLnted out that areas :•rh_ch housed rorrogra;n" snots had a ^_c G3he= c.Lae rate then other areas of the city. C:,.=ents from baps talk and statistics he ?rovided are as follo,43. Experienced Detectives duping theiz r.'.ay invest{gat{cns have t_.+ the �cc3s'_ors to gain personal :c:owle4e of the impact o: pornegrachy and its contric:t{cn tc 1rir.e, in particular r3^es end sex offenses. Tien extremely offensive crimes ,:nich ?re well k*:o:m to this de_a:~e nt are briefly described as follows. :1.:�D�t: �Z eight year old 'ernale ::as sexually ass_u?ted 2-nt :...:^c_rsa =__ her bc�'.y left in a county park. ^he 24 year old male assailant :.-as apprehended an-; veatig_tion it :•as found that the assailant was am avid reader of hard ccre ^_rnorr?::? _._ ritnesses indicated that ui+.hin several hours as :•.is at a S=t shop viewin; =agaz:zes . ..ic showed juven'le =••les and fe=lea Ln nude poses. r1kES: :�t6er a saries of rapes, tna assailant was found to be P ?'' �»r old pale. Repeating as stated in tea official police report, " ,he sus:ect stated .h at :otter some of bis ideas for the rarricular acts used in her rape (Cu;.nil:LnVvs, era'_ s==c::; rom -noosing wane in a .ornogr_t2.•y magazine. Suspect further stated to Detectives that he ::a_ =-2-wed hard core movies iz a theater, area of 3. 105 St. a•d Euclid Ave. S=-L OF:-1=ScS: Husband and :,r__e, ages )'11 and 26 have been c'.^a:Ced __ a ,-I,e: of various sex offenses on three child-ren of one family, boy, ag3 10, toy, ?gB __ _r'_, :.ee 12, The %sb=nd had a large. collection of h-p—rd ccre movies a-vid sagazines and :== z.fan rhotcgraphs of the children involved in their sex relations. Knowledge gained from our routine investigation izndic_ted a vary c_o:e crrelationsi:ip between vary types of crimes and the eve: i:creasing exposure of hard e:c.-e agazines grad movies. At the r—equest of Bruce Taylc:, the Police De_aent =ade use :e Data Proce_s! 3 Unit and obtained cr'_e statistics =zr a entire city. •.ue facts __-=_ are o:.a'zed verified :Tat knowledgable police officers had a wa 3 bien aware of and s .hat the incident of cr'�e is = :uch greater in areas ::ere szzxt outlets e located. s related :.a t:js r_L-crt were obtained on a census tract basis., .:-is being the slra'__e3: •=_f: C measurement into which the geographical area of Cleveland is divided. The 10,70 census s �- ey conducted by the U.S. C-nsu3 Bureau divided the City of Cleveland into 2C4 equal_! c': • -=_ a."u.s tracts. The figures :rovided below are related to censu3 tracts. Cleveland has a total o: 26 scut outlets which deal in :.:rd core L.ch consist of 8 movie houses and 18 are too}r storms with pc-p show-a included at tL--a_a :eae 26 outlets are located in 15 cans:v tracts out o_' tre 2C4 cenr s t:-Cts +-1 t`.c :...�A o a, t^.r a �� �.'�y �Cr'�p' O_"' =2J'.�:3tiv@ r�3'r�Ctions r c_,,__e o _e opera s =_nc' nc.. - • f DEL W- IABLE VARIABLE LABEL F OS 1LAME 169 I,F'8LK 12 F'8LK 1 2-FOLK 12 170 UF'8LKIN F'8LKIN-MEANI 171 UF'M8X8 F'M8X8-OWNVM 172 DR BURG RBURG8R-RSURG7R 173 I1BBURG 174 PPROB BROSSR-BRO87R 175 DRAPE RAF'E8R-RAF'E7R 176 DASLT ASLTSR-ASLT7R 177 I,BARS BARS-BARS7 178 ItPEER BEER-BEER? 179 11UINE WINE-WINE? 180 PLIQUOR LIQUOR-LIQUOR7 181 EtTYF'EA TYFEA-TYF'EA7 182 UTYF'EB TYF'EB-TYF'E78 183 UTYF'EC TYF'EC-TYF'E7C 184 FOOGF'CT FOOG8 BY BARS 185 FACTOR? FACTOR SCORES FROM NEIGHBORHOOD VARIABLE 186 FACTORS 1980 FACTOR SCORES FROM NEIGH. VAR . S FF'L A. LE VI,kIAPLE Li4EL FOS NAME 132 RESF'CT8 7. AREA RESIDENTIAL 1980 133 COMF'CT8 X AREA COMMERCIAL 1980 134 RAF'E7 FREQ 1974 RAF'ES 135 ASLT7 FREQ ALL ASSAULTS 1974 136 RAF'E7R RAF'ES F'ER 1000 FOP. 137 ASLT7R ASSAULTS F'ER 1000 F'OP . 138 EF'OP 1974 ESTIMATED F'OF' FROM FOLK 139 CR[,EXSR SUM OF RESIIiENTIAL CRIMES 1979 DATA 140 FACTS7 141 PEER SUM OF 1980 PARS WITH BEER LIC. 142 WINE SUM OF 1980 PARS WITH WINE LIC. 143 LIQUOR SUM OF 1980 BARS WITH LIQUOR LTC * 144 SEER7 SUM OF 1970 PARS WITH BEER LIC. 145 WINE7 1970 WINE LIC. 146 LIQUOR7 SUM OF 1970 LIQUOR7 LTC * 147 SEXBIZ SUM OF 1980 SUANAStADULT MOVIES • ADULT 'B 148 PARS SUM OF ALL 1930 BARS 149 PARS7 SUM OF ALL 1970 PARS 150 HUF'CTMF F'M8MF BY F'MSSF+F'M3IiT+F'M3MF 151 AREAMMF F'M8X%—F'M8X4 152 CBAR CONDENSED BARS VARIABLE 011 =It GT 2 PAR 153 DENSER EPOP8 DIVIDED BY AREA 154 ADULT BARS+SEXBIZ 155 TYPEA 1980 PARS WITH CLASS A LIQUOR LIC. 156 TYPES 1980 BARS WITH CLASS B LIA . LIC. 157 TYPEC 1980 BARS WITH CLASS C LIO . LIC. 158 TYF'EA7 1970 PARS WITH CLASS A LI0o LIC. 159 TYF'EB7 1970 BARS WITH CLASS B LIG . LIC. 160 TYF'EC7 1970 BARS WITH CLASS C LIQ . LIC . 161 RPURG7R RATEF4*1000 BY DEMO1 162 PBURG7R RATEF5* 1000 BY DEMOI 163 BROB7R RATEF6* 1000 BY DEMO1 164 DV8111 V8111—VI11 165 DV8112 V8112—V112 166 [iF'MSF'00 F'M6F'00—V113 167 [,EF'OP8 EPOF'8 —DEMO1 168 1,P8LK2 F'8LK2—F'OLK2 YL I City of Oklahoma City COMMUNITY DEVELOPMENT DEPARTMENT Planning Division ADULT ENTERTAINMENT BUSINESSES IN OKLAHOMA CITY A SURVEY OF REAL ESTATE APPRAISERS March 3, 1986 c�y of Dklaho city Community Development 200 N Wolker Oklohomo City, Oklo, 73)02 February 3 , 1986 Dear Oklahoma City Appraiser, The City of Cklahoma City has recently adopted a new crdinancc thZt- will regulate the location of adult entertainment businesses . Adult entertainment businesses are defined in our ordinance as those which emphasize acts or materials depicting or portraying sexual conduct. These businesses include "Adult Bookstores, " clubs with nude dancers, theatres which show sexually explicit movies , etc. In an effort to more completely analyze the impact of adult businesses on surrounding properties, Planning Division asks for your help in establishing a "best professional opinion" on the matter. As a real estate professional , the opinions you share with us on the enclosed survey forms would be very valuable to us in the development of a local data base for this sensitive land use issue. Thank you very much for your assistance . Sincerely, Carl �riend Principal Planner CF:SK :dar cc : Pat Downes H. D. Heiser 4, COMMUNITY DEVELOPMENT DEPARTMENT Planning Division CITY OF OKLAHOMA CITY TO: Professional Real Estate Appraisers Please help us in this brief Oklahoma City survey. The information provided will help us establish an important data base regarding adult entertainment businesses . The first four questions relate to the hypothetical situation presented below. The last three questions refer to actual situations in Oklahoma City that you might be aware of. A middle income residential neighborhood borders an arterial street that contains various commercial activities serving the neighborhood. There is a building that was vacated by a hardware store and will open shortly as an adult bookstore. There are no other adult bookstores or similar activities in the area . There is no other vacant commercial space presently available in the neighborhood. Please indicate your answers to questions 1 through 4 in the blanks provided, using the scale A through G. SCALE: A Decrease 20% or more 8 Decrease more than 10% but less than 20% C Decrease from 0 to 10% D No change in value E Increase from 0 to 10% F Increase more than 10% but less than 20% G Increase 20% or more 1) How would you expect the average values of the RESIDENTIAL property within ONE block of the bookstore to be affected? 2) How would you expect the average values of the COMMERCIAL property within ONE block of the bookstore to be affected? 3) How would uou expect the average values of RESIDENTIAL property located THREE blocks from the bookstore to be affected? 4) How would you expect the average values of COMMERCIAL property located THREE blocks from the bookstore to be affected? 5) Are you aware of the existence of adult entertainment businesses in Oklahoma City? 6) what is your opinion as to the effect of these businesses on surrounding properties? 7) Specifically, how do you think these businesses affect the surrounding property? Are you a member of : MAI ASA SREA other Your name or agency (If you prefer not to give your name , please check here ) Thank you for your cooperation. Please return this questionnaire in the postage paid envelope provided for your convenience. METHODOLOGY On February 7, 1986, 100 questionnaires were mailed. All real estate appraisers in Oklahoma City listed in the Yellow Pages were included in the survey. As of March 1, 1986, 34 (34%) of the questionnaires had been completed and returned. Real estate appraisers do not receive certification from the State of Oklahoma; however, 26 of the respondents (76%) belonged to a professional organization. The table below summarizes the objective part of the questionnaire. Subjective comments are discussed in a separate section of this report. SCALE QUESTIONS 1 2 3 4 A 11 (32%) 7 (21%) 4 (120) 4 (12%) Decrease 20 0 or more B 8 (24%) 9 (26%) 3 (9%) 3 (9") Decrease 10% - 20'a C 6 (180/10) 10 (2900 10 (290m) 7 (21a) Decrease 0 - 10% D 9 (26ro) 8 (24%) 17 (500/0') 20 (59%) No change in value E,F, and G were positive values--not checked by anyone . OKLAHOMA CITY REAL ESTATE APPRAISER SURVEY RESULTS The 100% survey of real estate appraisers in Oklahoma City produced results that were consistent in virtually all respects with the result of the national survey of appraisers carried out by the city of Indianapolis . Respondents overwhelmingly (74%) indicated that an adult bookstore would have a negative effect on residential property values in the hypothetical neighborhood described if they were within one block of the. premises. 32% felt that this depreciation would be in excess of 20%, wheras 42°0 foresaw a decrease in value of from 1% to 20%. (Comparative national figures are 78b, 19ro and 59`0 respectively. ) Seventy-six percent (76%) saw a similar decrease in commercial property values within one block of the adult bookstore. As in the national survey, fewer (21;0) felt that a devaluation of over 20110 would occur. The majority, (55'') saw the depreciation as being in the 14% to 20% range. (Comparative national figures are 69%, 10% and 59% respectively. ) The negative impact fell off sharply when the distance was increased to three blocks. As in the national survey, there appears to be more of a residual effect on residential properties than on commercial properties. 50% of the appraisers felt that a negative impact on residential properties would still obtain at three blocks from the site. Only 12% felt that this impact would be in excess of 2Oa. The remaining 38a felt that depreciation would be somewhere in the 1% to 20% range. 50% saw no appreciable effect at all at three blocks. (Comparative national figures are 39%, 30% and 61%. ) Commercial property was judged to be negatively impacted at three blocks by 41M of the survey. 59% saw no change in value as a result of the bookstore. (Comparative national figures are 23% and 76% respectively. ) In summary: - The great majority of apprQasers ( about 75%) who responded to this survey felt that there is a negative impact on residential and commercial property values within oneblock of an adult bookstore. - This nagative impact dissipates as the distance from the site increases, so that at three blocks, '.half.of the appraisers felt that there is a negative impact on residential property and less than half felt that there is a negative impact on commercial property. rf�. RESULTS FROM SUBJECTIVE QUESTIONS Oklahoma City real estate appraisers were also asked for their opinions as to the effect of adult entertainment businesses on surrounding properties. Most of the respondents discussed a variety of negative effects. Only five respondents (14%) said that adult entertainment business had very little effect on surrounding properties. Of these, three appraiser felt that these types of businesses located in commercial areas that were already blighted. All respondents indicated their awareness of the existence of adult entertainment businesses in Oklahoma City; many refered to the loth and MacArthur location as a prime example of an undesirable cluster situation. Opinions are summarized below: Not good: attracts undesirables, threat to residents feeling of safety & security- - acts as a deterent to home sales Would you want your home or business next door? -forces good businesses out -tends to have a snowball effect -an immediate transition begins, with the better quality businesses moving out and a lower :lass business moving in (pawn shops, bingo parlors) -embarrassment to other businesses and cliental - late hours , parking- trash and debris - vandalism -children in the area in danger of adverse influence or by actual molestation by perverted people drawn to such establishments Typical shoppers and residents go elsewhere to shop, and, if they're able to live. If there is a large concentration of this type of business, there can be a very large loss in property value. -tends to prevent economic improvement in the area , effects the community as to attracting other businesses -detrimimental impact on rental rates QUALITY OF LIFE: A Look At Successful Abatement of Adult Oriented Business Nuisances in Oklahoma City, Oklahoma (1984-1989) By Jon Stephen Gustin, Retired Sergeant Oklahoma City Police Department June 1992 Quality of life is of concern to every community in our country. Researchers from a variety of disciplines publish quality of life statistics for communities based on a variety of issues. Environment, economy, cost of living, employment and crime rate are examined to determine a composite look at overall quality of life. On a seemingly minute scale, one factor directly effecting quality of life in communities across the nation has been the impact on a community by adult businesses. Recent attention to these businesses and associated problems have surfaced with the emergence of Moral Majority political activists and ancillary lobbyists. The attention to these groups in the focal limelight of the media has played a major role in the systematic eradication of many adult businesses and changed the way many communities, police departments and prosecutors respond to "victimless crime" . For the purposes of this report, adult oriented businesses include the following: Prostitution: Brothels, Escort Services, Massage Parlors, Street Prostitution. Adult Entertainment Businesses: Establishments selling, renting or offering for view any pornographic material including: Bookstores, Peep Shows, Theaters, or any other business where a clear intent is to appeal to the prurient interest including nude or semi-nude dancing. 1 Traditionally police departments have assigned personnel to investigate complaints stemming from adult businesses on a reactive rather than proactive basis . These units have usually been labeled Vice or Morals Details consisting of both overt and covert investigations. In most cases this assignment has been an ancillary duty of officers involved in investigation of illegal drugs, although larger cities have recently realized the need for specialization of this difficult area of law enforcement. Oklahoma City is a city of over 650 square miles within city limits with an MSA population is nearly 750 ,000. In the early 1980's Oklahoma City had a disproportionately large number of "Adult Oriented Businesses" . The economy of the 180s, in Oklahoma, helped pave the way for these businesses to thrive. The oil industry was in peak production and with massive exploration and production the state's population grew with an influx of oil field workers and support personnel. The salaries paid were often far above the national average in like industries and entertainment businesses grew rapidly in a symbiotic relation to the oil boom. A fair historical comparison is the gold rush era in California and Alaska at the turn of the century. Along side legitimate businesses illegitimate businesses catering to the rapid growth of migrant workers thrived as well. Houses of prostitution, Nude and Semi-Nude bars, Adult theaters, Adult bookstores and all levels of prostitution spread through the city. From an historical perspective Oklahoma City was, in fact, a 20th century wild west during this era. 2 I Pornography entrepreneurs, Pimps, and Adult Business related promoters relocated to Oklahoma City from across the nation to compete for their share of huge profits to be made. By 1984 There were over 150 adult businesses operating in the city and an estimated population of 200 street prostitutes. The street walkers offered their wares in half a dozen locations inside city limits and the crime rates in these areas sky rocketed. These areas came to be known as "strolls" . Competition for a share in the profits to be made from adult businesses lead the owners to become increasingly more blatant with street signs and advertisements. Escort services purchased half and full page ads in South Western Bell Telephone Company's Yellow Pages, advertising for obvious prostitution. In 1984 Oklahoma City had an epidemic proportion of illicit sex related industries and the crime problems associated with them. Citizens in the community began to voice concern about the decay of community moral standards and the associated high crime rate while property devaluation in adult oriented business affected home and business owners. In 1984 George Harper, a local grocer, mounted a media assault on these enterprises and his organization, "Oklahomans Against Pornography" began gaining grass roots support in the community. Other citizen's and church groups followed Mr. Harper's lead and in a relatively short period of time action groups coalesced into a powerful block of local influence. 3 Robert H. Macy, the district attorney of Oklahoma County, a well respected local leader, took a clear stand that pornography and illicit sexual oriented business cases presented to his office by law enforcement personnel would be prosecuted with an emphasis on maximum penalties for offenders. Mr. Macy's eagerness to become involved in an originally unpopular change of the status quo set the stage for police action. Mr. Macy's predecessor was considerably more liberal in his approach to prosecution of pornography and illicit sexually oriented enterprises which made them nearly impossible to successfully prosecute. Abolishment of unwritten district attorney's guidelines in Oklahoma County, which had been more stringent than Oklahoma State Law, finally made it possible to arrest offenders and seek prosecution in areas that were previously ignored. Assistant district attorneys began to specialize in first amendment issues with respect to pornography prosecution and took a hard stand against powerful national organizations, the foremost of which was the First Amendment Lawyers Association, a group specializing in criminal defense of pornographers across the nation. Initially there was frustration on the part of the anti-porn special interest groups based on a lack of aggressive police enforcement. Frustrations escalated and a schism developed between the police administration and these groups. Local elected officials found themselves barraged with mail and phone calls. City Council chambers filled with supporters of an anti-porn crackdown on numerous occasions. 4 Pressure .rapidly grew into demands for action from elected officials who passed their constituents' demands on to the police administration. Continued demands were made of the city fathers as well as the chief of police to take affirmative action. Mr. Macy, initiated additional pressure for the police to act aggressively by publicly announcing his position of strict prosecution. The demands were simple and succinct: mount an attack on adult businesses in the community with the intent of putting them out of business if they were breaking the law. Historically the police department had difficulty in successful prosecution of cases of pornography, prostitution and related adult businesses, particularly at the municipal level . With the blessing of the Chief of Police and the City Council and the backing of an enthusiastic District Attorney, street level enforcement began. The battle fell on the shoulders of the Vice Detail to mount an offensive against all aspects of the problem. Priorities were established in the initial plan of attack. Along with street prostitution, which was at epidemic levels, the worst offenders in pornography distribution were selected for strict enforcement. Enforcement measures began, first against the nearly 200 street prostitutes who were the most visible problem. Arrest levels were dramatic and "John Traps" were simultaneously conducted, where the males seeking prostitute's services were arrested by female police decoys. 5 Media involvement played an essential role in the plan to decrease the prostitution problem. Published names of arrested customers as well as prostitutes along with television coverage of persons arrested brought the problem into the living rooms of every home in Oklahoma City. Television media accompanying police on raids and filming from inside surveillance vans, was unprecedented and the media's attention to the situation increased public awareness further. Citizen support grew from a more enlightened public. Community tolerance of adult enterprises turned to outrage and unilateral support for police and prosecutors in enforcement of "victimless" crimes for the first time. After the street prostitute population was diminished through a "no tolerance" enforcement approach coupled with aggressive prosecution at the County level , enforcement efforts were focused on brothels. In one raid vice Officers simultaneously made arrests at 12 houses of prostitution where officers arrested all of the madams, prostitutes and customers. Again media coverage continued to fan the fire for citizen support. Adult book stores with peep shows posed a particularly difficult problem for law enforcement as well as prosecution personnel . A variety of arrests from these establishments included males customers offering to engage in sex acts with undercover officers, sale of and possession of pornography, display of pornography, and health department violations. 6 In several investigations officers swabbed the walls and floors of peep show booths securing samples of seminal fluids in the evidence seized. The president of the First Amendment Lawyers Association personally conducted the defense in initial prosecution for the sale of pornography to undercover police officers. In every instance the district attorney's office soundly won every case and informed juries assessed maximum penalties each time. A precedent was set in the community and adult businesses began closing city wide, some voluntarily and others after conviction of pornography charges. The growing momentum then focused on nude and semi-nude dance bars involved in prostitution and drink hustling with promises of sexual favors for the purchase of expensive cocktails. In many investigations undercover police officers observed nude dancers seated with customers in dimly lit areas of the bars, known as "kinky corners" , fondling customers genitalia or permitting customers to fondle them. Repeated arrests in these bars forced them into compliance with the law forcing them out of business based on a lack of customers' support. The final arena of the battle became escort services which were no more than illegal organized fronts for prostitution. A year long investigation of escort services began with nearly a 100% conviction rate obtained by the district attorney's office in State Court, including convictions of madams who owned and operated the services. 7 1 It quickly became evident that simple arrest and conviction had little affect on these businesses and that in order to effectively abate this nuisance it would be necessary to eliminate the only link between the prostitutes and their prospective clients. In an attempt to accomplish this, Vice Detail officers operated their own undercover escort service arresting those persons who sought prostitutes in this manner. The investigation drew media attention, but since many clients were travelers visiting Oklahoma City from other areas of the country no noticeable decline was observed. It was determined that the only solution to the problem was the elimination of phone service to those phone numbers where documented prostitution cases had been made and convictions obtained. The matter was taken before the State Corporation Commission in an effort to obtain an order form the commission to mandate Southwestern Bell Telephone Company to suspend services of phone numbers utilized in the furtherance of criminal conduct. In this instance Vice Officers were not represented by the District Attorney's office, but instead by the Oklahoma City Municipal Counsellor's Office. The attempt was not successful , in that municipal counsellors refused to press forward with the issue. It was later learned that The Municipal Counsellor himself was employed by Southwestern Bell Telephone Company at the same time he served as Municipal Counsellor. This action occurred near the end of the examined five year period of 1984 through 1989. 8 At the beginning of 1990 only a handful of the original 150 adult businesses were still in operation and all that remained operated within statutory guidelines. Hard core pornography was nearly impossible to openly purchase in Oklahoma City, rarely were prostitutes noticed on the streets and none of the houses of prostitution remained in business. Documented links between rape and pornography have been made in a number of instances including a 1983 study by Murray Straus and Larry Baron of the University of New Hampshire. Ted Bundy, a serial rapist, admitted his use of pornography as a fuel for his murders of 24 young women and children. Bundy is not a select example of this phenomenon, but is more a typical example of the devastation of pornography in the hands of a dysfunctional individual . The measure of success of vigorous enforcement and prosecution efforts in a community are only evidenced in changes noted in that community as a result of those efforts. Active enforcement in Oklahoma City began in 1984 and continued into 1989. It has been documented that incidents of reported rape during that period decreased in Oklahoma City while rising in the rest of the state as well as the nation. In 1983 , 588 rapes were reported to police and it is estimated that only one third of actual rapes are reported. By the end of 1989, 427 rapes had been reported to police. The 27% reduction in reported rape accounted for 641 women and children who were not raped, but would have been had the rape rate remained unchanged for the five year period. 9 The rest of the State of Oklahoma experienced an increase of reported rape by 16%. Had Oklahoma City's rape incidence increased at the same rate as the remainder of the state, reported rape in Oklahoma City would have been close to 1 , 000 more victims between 1984 and 1989 . It is also interesting to note that in 1983 , nearly half of the rapes in the entire State of Oklahoma occurred in Oklahoma City, while in 1989 only one third of the rapes occurred in the same city. In a proactive policing environment numbers of arrests decrease proportionately to the number of crimes committed. Vice Officers made only 10% as many morals arrests in 1989 as they were required to make in 1985 to abate the same nuisances. Oklahoma City is an example of the benefits of stringent enforcement and prosecution of Adult Oriented Businesses commonly characterized as "victimless crimes" . Because of the actions and efforts on the part of citizen's groups, District Attorneys and Police Officers working as a team 1,000 potential rape victims are healthy, happy and alive today. 10 Oklahoma Reported Rapes 1983 - 1989 = Oklahoma County All Other Counties 748 710 723 733 794 782 j 6571000 _ /- 5 5 %" 800T 5 4 , 4 "! 4 2�7. 600 ; 400 - 200 f. -_.-- 0 I/ 1 1 1 1 1 1 1 9 9 9 9 9 9 9 8 8 8 8 8 8 8 3 4 5 6 7 8 9 Reported Rapes * per Uniform Crime Report Jon Gustin Morals Arrests - OCPD 1985 - 1989 800 600 400 200 0 1985 1986 1987 1988 1989 j Arrests 766 693 507 223 84 ® Arrests • per Activity Statistics OCPD ` Ama _ . t Z-1 ,A Report On Zoning And Other Methods�:*0f Regulating ,Adult Entertainment /n Amarillo September 12, 1977 r PLANNING DEPARTMENT CITY OF . AMARILLO, TEXAS -r k A REPORT ON ZONING AND OTHER METHODS OF REGULATING ADULT ENTERTAINMENT IN AMARILLO CITY COMMISSION Jerry H. Hodge Mayor Jerry Ammerman Curtis A. Crofford Commissioner No. l Commissioner No. 3 Houston Deford J. Dean Christy Commissioner No. 2 Commissioner No. 4 John S. Stiff City Manager PLANNING AND ZONING COMMISSION W. E. (Bill) Juett Chairman U. C. Sterquell , .Jr. , Vice-Chairman Herbert Johnson Ronald Edmondson Martin G. Manwarren Jack Hazlewood Marvin Winton PLANNING STAFF H. Dale Williamson Director of Planning, Traffic and Code Enforcement Secretary, Planning and Zoning Commission J D Smith, Jr. Chief Planner Donna Stanley, Planner II Geno Wilson, Draftsman II Gary Dumas , Planner I Steve Rodriquez, Draftsman I Michael D. Moore, Planner I Gail Beck, Secretary III Tom Horton, Draftsman II Maxine Hawk, Clerk II September 12, 1977 PREFACE This report presents the findings of the Amarillo Planning Department regarding the adult entertainment industry within the confines of the Amarillo City Limits. These findings analyze the l-and use- effects of adult entertainment businesses and alternatives for their regulation. Adult entertainment businesses are those that customarily are not open to the general public by the exclusion of minors by reason of age. Presently, the only authority available to a city for regulating adult businesses is the city's power to zone and license. These methods of control have been sanctioned by. the Young v American Mini Theaters, Inc. case. The determination of what is or is not obscene is to be made by a jury on a case by case basis in accordance with the test. described in the Marvin Miller v State of California decision. The criminal offenses for dealing in obscenity, proscribed by the Texas Penal Code, are the exclusive province of the State, and the city .may not invade this area by seeking to define obscenity or provide rebuff for its sale, display or distribution. A REPORT ON ZONING AND OTHER METHODS OF REGULATING ADULT ENTERTAINMENT IN AMARILLO INTRODUCTION This report on the current extent of pornography in Amarillo was initiated upon the request of the Amarillo Planning and Zoning Commission April .25, 10 7. Accompanying the request was the desire for information concerning the possible zoning control of all businesses catering to adults only. For the purpose of this . report, adult-only businesses have not been limited to those that display porno- graphic material , but include bars, lounges, and any other business type which restricts entry, sale or .viewing based upon a minimum age. This study is an attempt to briefly explore the. national problem of adult only businesses with a major emphasis on those which deal in pornographic material . The Amarillo situation was analyzed in relation to the extent of the national growth of the adult-only industry and the extent and limitations to which the City can control , through land use mechanisms , the proliferation of the industry outlets. No city ordinance regulating any type of adult business is included within. this report and none will be drafted until discussion has occurred on the various options available for the control of adult businesses. In any consideration of whether or not to control and restrict adult-only outlets within the municipal jurisdiction, the following should be reviewed: 1 . To prohibit these uses to locate anywhere in the municipality, three points must be considered: A. The Courts have generally invalidated legislation which attempts to prohibit a particular use altogether from a municipality. B. Prohibiting the location of any pornographic use in the city could be contested on the grounds that it provides an individual engaged in such practice no means of livelihood within the City. C. Such legislation could also be contested on the grounds that it infringes upon the right of freedom of speech. 2. If these uses are to be allowed and restricted within tie municipality, the City must decide where such uses are to be located. METHOD OF ANALYSIS In the preparation of this report, several data sources were employed. Current weekly national news magazines were searched for references to the problems .of major urban areas relative to this topic. Several individual cities known to be exploring methods. of controlling the growth of the 'adult-only industry were contacted and adopted City Ordinances were reviewed. The American Society of Planning Officials provided advance information from an unreleased. publication on Adult-Entertainment which has since been published (copy included for-your review). Several recent Supreme Court decisions were reviewed in order to determine the general mood of the law as handed down. This information was synthesized into .a form which details the national limita- tions- placed upon a state and city in the land use control of adult-only businesses. The Texas obscenity law was then reviewed in order to determine the limitations: of legislative regulation of adult-only businesses and.the extent to_which'.AinariIlo,- as. a city,may- regulate the industry through land use and licensing mechanisms. . DEFINITIONS Obscenity is defined by the Supreme Court in the following exerpts from Marvin Miller v State of California: 1 . "Obscene material_ is not protected by the First Amendment, Roth v United States , 354, U.S: 476, 77 S. Ct. 1307, 1L. Ed. 2d 1498, reaffirmed. A work may be subject to state regulation where that work, taken as a whole, appeals to the prurient interest in sex; portrays, in a patently offensive.way,. sexual conduct specifically defined by the applicable state law; and taken as a whole, does not have serious literary, artistic, . political , or scientific value." 2. "The basic guidelines for the trier of fact must be: (a) whether the average person, applying contemporary community standards would find that the work, taken as a whole, appeals to the prurient interest, Roth, Supra, at 489, 77 S. Ct. at 1311 ; (b) whether the work depicts or describes , in a patently offensive way, sexual conduct specifically defined by the applicable state law, and (c) whether the work, taken as a whole, lacks serious literary, artistic, political , or scientific value. If a state obscenity law is thus limited, First Amendment values are adequately protected by ultimate .independent appellate review of constitutional claims when necessary." 3 "The jury may measure the essentially factual issues of. prurient appeal and patent offensiveness by the standard that prevails in the forum community, and need not employ a 'national standard'." As stated above the basic guideline for determining what is obscene is through an evaluation of the material utilizing the forum community standard. In Smith v United States, 97 S. Ct. .1756, (1977) the Court amplified its consideration of the community standard when it stated that community standards are required to be applied by the me in accordance-:.with -its understanding of the tolerance of the average person in the community. The result being that the jury has the discretion to determine what appeals to the prurient interests and what is patently offensive in its community. "State law cannot define the.contemporary community standards for appeal to the prurient interest and patent offensiveness that under Miller v California are applied in determining whether or not material is obscene . . Though state legislatures are not completely foreclosed from setting substantive limitations for obscenity cases, they cannot declare what community standards shall be' . (Smith v United States (1759)] The conduct regulated by the Texas Legislature is defined in the Texas Penal Code Subchapter 43B, "Obscenity". The following is that portion of Chapter 43 which regulates the sale, distribution and display of obscene material : 43.21 . Definitions In this subchapter: (1 ) "Obscene" means having as a whole a dominant theme that: (A) appeals to the prurient interest of the average person -applying contemporary community standards ; (B) depicts or describes sexual conduct in a patently offensive way; and (C) lacks serious literary, artistic, political; or scientific value. (2) "Material" means a book, magazine, newspaper, or other printed or written materi.al ; a picture, drawing, photograph, motion picture, or other pictorial representation; a play, dance, or performance; a statue or other figure; a- recording, transcription, or mechanical , chemical , or electrical reproduction; or other article, equipment or machine. (3) "Prurient interest" means an interest in sexual conduct that goes sub- stantially beyond customary Limits of candor in description or represent- ation of such conduct. If it appears from the character of the material or the circumstances of its dissemination that the subject matter is de- signed for a specially susceptible audience, the appeal of the subject matter shall be judged with reference to such audience. (4) "Distribute" means to transfer possession, whether with or without consideration. (5) "Commercially distribute"means to transfer possession for valuable consideration. (6) "Sexual conduct" means: (A) any contact between any part of the genitals of one person and the mouth or anus of another person; �B� any contact between the female sex organ and the male sex organ; C any contact between a person's mouth or genitals and the anus or genitals of an animal or fowl ; or (D) patently offfensive representations of masturbation or excretory functions. 43.22. Obscene Display of Distribution (a) A person commits an offense if he intentionally or knowingly.displays or distributes an obscene photograph., drawing, or similar visual representation or other obscene material and is reckless about whether a person is present who will be offended or, alarmed by the display or distribution. (b) An offense under this section is a Class C misdemeanor. 43.23. Commercial Obscenity (a) A person commits an offense if, knowing the content of the material : (1 ) he sells, commercially distributes , commercially exhibits , or possesses for sale, commercial distribution, or commercial exhibition any obscene material ; (2) he presents or directs an obscene play, dance, or performance or participates in that portion of the play, dance, or performance that makes it obscene; or (3) he hires, employs, or othengise uses a person under the age of 17 years to achieve any of the purposes set out in Subdivisions (1 ) and (2) of this subsection. (b) It is an affirmative defense to prosecution under this section that the obscene material was possessed by a person having scientific, educational , governmental , or other similar justification. (c) An offense under this section is a Class 6 misdemeanor. unless committed under Subsection (a)(3) of this section, in which event it is a Class A misdemeanor. 43.24. Sale, Distribution , or Display of Harmful Material to Minor (a) For purposes of this section; �1 "Minor" means an individual younger than 17 years. 2� "Harmful' material" means material whose dominant theme taken as a whole: (A) appeals to the prurient interest of a minor, in sex, nudity, or excretion; (B) is patently offensive to prevailing standards in the adult community as a whole with respect to what is suitable for minors; and (C) is utterly without -redeeming social value for minors. (b) A person. commits an offense if, knowing that the material is harmful.: (1 and knowing the person is a minor, he sells , distributes'; exhibits, or possesses for sale, distribution , or exhibition to a minor harmful material ; (2) he displays harmful material and is reckless about whether a minor is present who will be offended or alarmed by the display; or (3) he hires,. employes, or uses a minor to do or accomplish or assist in doing or accomplishing any of the acts prohibited in Subsection (b)(I) of (b)(2) of this section. (c) It is a defense to prosecution under this section that: (1) the sale, distribution, or exhibition was by a person having scientific, educational , governmental , or other similar justifi- cation; or (2) the sale, distribution, or exhibition was to a minor who was accompanied by a consenting parent, guardian, or spouse. (d) An offense under this section .is a Class A misdemeanor unless it is committed under Subsection (b�(3) of. this section in which event it is a felony of the third degree. The preceding has outlined the substantive limitations of that which can be found obscene in the State of Texas. The enforcement of those sections of the State Penal Code applying to obscene material is left to the discretion of the District and County Attorneys. The remainder of this report will concern the controls that the City may impose to regulate -the adult-only industry through land use controls , licensing, and measures to assure that minors will not be allowed to purchase or view the display of pornographic material in commercial businesses. THE NATIONAL PROBLEM/CITIES Urban areas across the nation are beginning a crackdown on the growth of sex- oriented businesses. Recent public outcries and national exposes have been forcing new evaluations of-existing pornography law. This renewed attack on pornography is partially founded. upon the Supreme Court decision in Young v American Mini Theater. This decision, affirming the City of Detroit's police power ability to zone adult entertainment, redefined the standards the community .can use to appraise that material which is found to be adult entertainment and protected by the 1st and 14th Amendments of the U. S. Constitution. The following exerpt from Young v American Mini Theaters makes clear the Supreme Court view of adult entertainment and zoning: Though the First Amendment protects communication in the area -of adult motion pictures from suppression; the State may legitimately use. the content of such pictures as the basis for placing theaters exhibiting them in a different classification from other motion picture theaters for zoning purposes. The City's interest in the present and future character of i-ts neighborhoods adequately support the limitation imposed . . . on the place where adult films may be exhibited. As a result of Young v American Mini Theaters_, several cities have initiated zoning ordinances similar to Detroit's to control. the proliferation of sex industry outlett into incompatible areas of city development.' Kansas City, Missouri and Atlanta, Georgia, are: examples of cities recently implementing zoning ordinances to control the adult entertainment industry. These cities have.*accepted the fact that there is a large market for adult entertainment. By implementing and enforcing a zoning ordinance-to control site location choices -to those sites meeting certain minimum requirements, these cities have sanctioned the adult entertainment industry. However, this sanction.does not entail a condonation of commercial sex -activities outside the control of land use planning activities. The problems with the proliferation of adult businesses in major urban areas are growing, not only in the volume of outlets , but also in new types of adult businesses. Cities that have attempted to use zoning ordinances to define explicitly each controlled adult entertainment business have found that the ordinances are subject to constant update as the adult entertainment industry implements new techniques for -the dissemination of its product. The following list illustrates some of the kinds of.pornographi c adult businesses that could have a blighting effect upon a neighborhood if allowed to. grow uncontrolled. The list also points to..tne problem of attempting to define each new adult. business. Pornographic Adult Businesses - Adult .bookstores Adult mini motion picture theater (peep shows) Adult motion. picture theaters Artists body painting studios Eating places with adult entertainment Exotic photo studios Lounges and bars, topless Lounges and bars, bottomless Massage parlor Nude theater Nude wrestling parlor As cities strengthen -laws dealing with -certain listed businesses, new businesses provi di ng. the same or similar services have been invented-by the industry. Fora example, in Birmingham,- laws governing massage parlors were tightened forcing most to:: close 5 As a reiult, shoeshine shops, where you can lie down while getting your shoes shined and providing the same service. as the massage parlor, were opened. The•£ity. was then forced to adopt another ordinance requiring that a person could not lie down to get a shoeshine. . Similar.situations occurred in Boston when massage parlors were under attack. A quick metamorphosis was made of' adult entertainment businesses under the. guise of sensitivity training parlors, nude wrestling studios and exotic. photography centers. These later generation businesses were clearly not massage parlors, even though similar services were offered, and were not subject to the massage parlor ordinances. Two distinctly different zoning techniques have been used.to regulate the adult entertainment industry. They are: 1 . The Boston, 'Mass-achusetts approach. In 1974 Boston was the first city in the nation to put its official stamp on- the adult entertainment zone. Boston created a special zoning category for adult bookstores , peep shows, x-rated movies and strip joints. This zone was a special overlay district applying to only seven acres of the City's space. The overlay zone had two main purposes: (A) The City wanted to concentrate similar adult entertainment uses into a single small area; and (B) the City wanted to prevent the spread of these uses to other areas of the City. The district approach has certain advantages over a case by case zoning approach. Specific district boundaries are set and development standards are established. These two items when taken together reduce greatly the administrative cost when compared to a case by case condi- . tional or specific use permit requirement. The limited confines of the district boundary reduces the potential for new development. The district approach also reduces the opportunity for arbitrary and subjective de- cisions. The overlay district offers the potential to evaluate the total public service impact of adult uses. The concentration in a single area allows for the review of relative cost and revenues to the City. Police costs will certainly be higher, as will related traffic and parking costs. These costs though can be determined. Permits can be required and the fees for these can reflect the true costs to the community. 2. The Detroit, Michigan approach. In 1972 Detroit implemented an ordinance designed primarily to prevent the development of additional "skid-rows". It was found that concentrations of various straight and pornographic uses were generally determinates of the deterioration_ of surrounding areas. Detroit has two objectives: (A) to separate typical "skid-row" uses from each other; and (B) to keep these same uses separate from residential areas. These objectives lead to a single policy of dispersing. "skid- row" uses and spreading them throughout the commercial and industrial areas of the City. After "skid-row" uses had been determined, defined and subjected .to a conditional permit process , they were allowed in only certain zones of the City and then only in sites meeting certain requirements. These two techniques and adaptations to them are the only methods currently being used to control the location of adult entertainment activities. The Supreme Court in Young v American 'Mini Theaters has upheld the approach that Detroit has implemented. No test has yet been made of the Boston method of controlling the spread of adult businesses. Recently the Boston "Combat Zone" (the seven acre overlay district) has obtained some notoriety as being a failure, with social and administrative costs exceeding a tolerable level . Both Detroit and Boston have chosen land use controls as their primary method of regulating adult businesses. Both use coincidentally a licensing regulation. Other cities such as Santa Maria, California, have chosen licensing as their primary approach to regulating adult businesses. Licensing approaches have been adopted in order to maintain certain minimum standards at places of adult entertain- ment. The licensing mechanism is designed to regulate entertainment businesses which also provide food, alcoholic beverages or exhibition of the human body. Licensing outlines required performance standards and sets fees and required deposits as guarantees of compliance with ;the standard. ADULT ENTERTAINMENT IN AMARILLO Several businesses in Amarillo cater either wholly or partially to the adult-only market. The attached map, LOCATION OF ADULT ENTERTAINMENT IN AMARILLO, illustrates the general location of the majority of businesses whose activities include catering to the adult-only market. As the attached map indicates , adult businesses in Amarillo have generally tended to congregate into several areas in a strip fashion along -major thoroughfares. The Amarillo Police Department in a statistical analysis of street crimes (rape, robbery, all assaults, theft from persons, auto burglary, driving under the influence, public intoxication, vandalism and illegal weapons) found that the incidence of street crimes was significantly greater around the concentrations of adult-only businesses than the overall City average. The Police Department went further in their analysis and noted that these street crimes were 2-1/2 times the City average in the immediate vicinity of alcohol only adult businesses , and 1-1/2 times the City average immediately surrounding businesses featuring alcohol and semi-nude entertainment. In reviewing these facts. relative to crime in the vicinity of adult businesses, the reader should be aware that adult-only establishments , especially alcohol only lounges, have tended to concentrate in several areas while lounges featuring semi-nude entertainment are fewer in number and have tended to somewhat isolate themselves from other adult-only establishments. MI LON I . } MILf6 .J• ST, f11A NA�TINy3J .� t s ? mAj- 9241?<'� AKN. 1 If _ `��' • .'.il{I;j �.Cti ��(_ / F '� rr�1 R S. , MI1� e Y .I':I ��� l�ta!'i tv�' e.�. I.Slt-:-' 00 {{ 1 its �ii•2i,i`.!`! ij�1�1 ;;*��l-t'.L,i.,1_�f.}.�' rj�'ti'tr'i •T �� I ....,..._.. It Do ' iir�•t•+Ir I lil .'P' o s�.�'f 1 �� {. . � /'' �• ��r�.s. - j l 11 lI a 1 .S �J / ll •i LOCATION OF ADULT ENTERTAINMENT IN AMARILLO R f / -LEGEND ADULT THEATRES / BOOKSTORES _ 0 BOOKSTORES WITH EXPLICIT PORNOGRAPHIC MATERIAL / 0 LOUNGES WITH SEMI-NUDE ENTERTAINME NT A BOOKSTORES WITH NONEXPL16T PORNOGRAPHIC' MATERIAL %, 1_/ARMUI� • LOUNGES •I `.. I CRT *F A MILW . _ PLANNING[EPMTM[IRLl _/1 - No"L Vlo 0 Outlets for adult-only material in the City include several book stores, drug - stores , grocery stores, etc. , with sections of books and magazines featuring nudity and nonexplicit sexual activity. Pornographic publications featuring nudity with explicit sexual activity, are available within the City in only seven known loca- tions , three being adult theaters with books,. magazines, novelties and peep shows. These are dispersed lineally- across the CBD and its fringe. There are also four book stores.. that devote space to publications featuring pornography with -explicit sexual activity. No attempt has been made to locate all activities featuring minimal amounts of pornographic publications_. As can be discerned from this overview of the .extent of .pornography distribu- tion within the City, our current problem is not great. However, the following paraphrased statement concerning Mason City, Iowa, illustrates the potential for growth of the adult entertainment industry. Between 1963 and 1564 go-go dancers gradually began to appear in the lounges and bars of the town. By 1965 the dancers were topless. In . 1973 the City received an application for its first adult moviehouse license. The license was refused (probably by an arbitrary and subjective decision). * The applicant filed a judicial appeal and won the case forcing the City to grant the license. In 1973 an adult book store opened, complete with sex novelties and movies. Also in 1973 a popular lounge hired totally nude dancers. Four competitors aoon followed suit. Finally the. City gained its first massage parlor. There is no reason to assume that Amarillo will be exempt from a growth of adult oriented businesses similar to Mason City. The lack of any valid City mechanism to control and regulate the anticipated growth could lead to (a) concentrations of adult entertainment businesses creating a crime incidence condition equal to or greater than the current situation around concentrations of alcohol only businesses , and (b) a proliferation of adult entertainment businesses in and around residential areas and other family or juvenile oriented activities. . POSSIBLE CONTROL MECHANISMS. OF ADULT BUSINESSES IN AMARILLO Adult businesses in Amarillo are comprised of taverns , lounges , lounges with semi-nude entertainment, adult bookstores and adult theaters. Various state and local laws currently regulate to certain extents each of these uses. The Texas Liquor Control Act regulates all businesses selling alcoholic beverages, after local option-approval , through a licensing procedure. These same businesses must also be licensed by the City and must conform to zoning and occupancy requirements. Those businesses that feature semi-nude entertainment are also controlled by Penal Code Section 21 .07, 21 .08, and 43.23 (Public Lewdness , Indecent Exposure, and Commercial Obscenity) and City Ordinance 13.29 (Operation Regulations ; grounds for revocation, violations of Dance Establishments) . Purveyors of adult printed -and celluloid material are controlled only by Penal Code Sections 43.22, 42.23, and 43.24 and general zoning and occupancy requirements. While the above state and local ordinances work to regulate portions of the adult entertainment industry, they are at best a piecemeal approach. For example, the enforcement of Chapters 21 and 43B, of the Penal Code through the appropriate court, is generally a slow and tedious process requiring manpower that is not avail- able for this type of low priority victimless crime. The maintenance of the minimum requirements of the Texas Liquor Control Act and the various local laws regulating the sale of alcoholic beverages are only a means to maintain certain standards of operation in taverns, lounges , etc. The general zoning regulations which currently restrict adult businesses are not designed for the particular land use impacts resulting from the adult businesses. These impacts range from late night hours of operation and resulting noise, traffic, lighting, etc. , to increases in crime rates immediately surrounding the businesses. Bypassing the intrinsic limitations of enforcement of the Penal Code, an approach to a more definite control of these businesses is through a strengthening of zoning regulations specifically defined to moderate the land use impact of adult-only businesses. Coincidentally with the improved zoning regulations, a license and permit mechanism can be implemented. This mechanism can set and require compliance with minimum standards. of operation for various adult businesses and recover actual or expected expenses incurred in their enforcement through annual permit fees. These fees can reimburse the City for the added costs of police patrols, improved streets, additional street lighting to reduce accident and crime potential , routine City Depart ment inspection, etc. These measures would generally be applied to all adult-only businesses, No infringement upon their constitutional rights would result from compliance with a zoning and licensing mechanism designed to minimize the land use and social impacts of adult-only businesses. Zoning regulations specifically designed to restrict adult-only businesses can serve .the following purposes: 1 . Assure a land use .compatability between the adult use and the surrounding land use. 2. Require that certain minimum density standards for adult uses are maintained. . 3. Require the amortized termination of those adult uses not currently meeting either-or both of the preceeding zoning purposes. Licensing adult-only businesses can serve the following purposes: 1 . Maintain a record of business, location, owner, etc. 2. Assure that certain performance requirements are met, such as hours of operation, maintenance of employment standards and compliance with all laws governing material sold or displayed by the business. 3. Provide a method by which the City can recoup any expenditures for public services required above the city average exclusive of the licensed business type. Performance standards can include a provision for administrative revocation of an adult business license for any noncompliance with a performance standard. " This revocation of license would not necessarily be supported by any conviction or state criminal charge against the license holder. The basis for the revocation would. be for violation of the performance standards as defined explicitly in the City Code's standards for .operations of an adult business. Performance standarc would of course be required to vary in content relative to controlled adult business t3 Adult business licenses should not attempt to regulate the land use effect of the use on the neighborhood or community, but should be utilized to assure perform- ance at a certain standard, to maintain an accurate record of business locations, and to provide fees to the City for services above the average. By maintaining a clear distinction. between the requirements of a license and the zoning ordinance the entire control mechanism is strengthened. The preceeding portion of this section has dealt with the regulation of businesses that totally restrict entry, sale, and viewing of products to adults only. Methods. to control the ease of view of generally distributed pornographic material are numerous and not detailed explicitly in this report. Briefly though, methods to control the display of this material range from requiring the display to be .in separate rooms . =-vith, an enforceable and enforced restricted admittance, to simply covering the entire publication with an opaque slip cover with the publications name printed on the cover. The control of the display and sale of pornographic material through a City Ordinance licensing mechanism would work to protect minors from harmful material (Section 43.24) and adults who would be offended by certain displays of pornographic .material (Section 43.22) generally available for the public's view. SUMMARY AND FINDING The analysis of the impacts of adult-only businesses upon surrounding land uses indicates that these businesses do have effects that can be distinguished from other uses allo►-ied in like zoning districts. The following identifies two causal factors isolated in this preliminary analysis: 1 . The Amarillo Police Departments statistical survey of street crime in the vicinity .of adult-only business indicates that crime rates are considerably above the City's average immediately surrounding the adult-only businesses analyzed. 2. Concentrations of these adult-only activities have detrimental effects upon surrounding residential and commercial activities. These effects are caused by (a) the noise, lighting and traffic generated by the pedestrian and vehicular traffic frequenting these businesses whose primary hours of operation are from late evening to late night, (b) the increased opportunity for "street crimes" in areas with high pedestrian traffic, and (c) the tendency to avoid . areas where adult businesses (especially pornographic) are established. This avoidance and other factors can lead to the deterioration of surrounding commercial and residential activities. Other cities have noted these effects of adult-only businesses and have attempted remedies to the problem. Boston; Massachusetts, has concentrated all adult uses into a single area of the City. Detroit, Michigan, has dispersed adult uses throughout the city to sites that meet certain minimum land use requirements. Both of these cities have adopted zoning ordinances that restrict location choices of adult book stores, theaters , cabarets, etc. Their ordinances are limited to those. activities that definitely do not fall under penal code control . The City of Los Angeles study on adult entertainment includes a consideration for the zoning control of other adult oriented activities including massage parlors, nude modeling studios , adult motels, arcades, etc. Los Angeles has disregarded the question of legitimacy and has suggested zoning those adult businesses as recognized existing land uses. Detroit has implemented an ordinance which requires that adult entertainment businesses not be located within 500 feet of residentially zoned areas , .or within 1000 feet of another regulated use. In Amarillo, adult uses are currently allowed in general retail and all less restrictive zoning districts. If Amarillo adopted an ordinance with space. requirements between regulated uses and residential zones similar to that of Detroit, the number of potential sites for adult businesses would be severely limited. This method,limiting severely the potential site choices of adult businesses, would probably not be upheld by the Courts. The limitation of site choices would be caused by the narrow commercial strip developments less than 500 feet wide along most of Amarillo's major throughfares. Also, this approach would probably tend to concentrate adult activities into the central business district and "a few industrial areas. RECOMMENDATIONS FOR THE CONTROL OF ADULT-ONLY BUSINESSES IN AMARILLO If the Planning and Zoning Commission and -City Commission should find from the data presented in this report that there exists sufficient need to control adult- only businesses :and businesses which display generally circulated pornographic material ; the Planning Department would recommend the following: A. Any zoning ordinance amendments proposed to regulate adult businesses should not attempt to define individual activities but should instead regulate .the site location choices of all businesses that restrict sale, display or entry based upon a minimum age,, and not consider the legitimacy of the use. B. 'The potential site location choices for adult-only uses should be dispersed rather than concentrated. This distance should be measured radially from property line to property line and should be at least 1 ,000 feet. Requirements designed to maintain the integrity of residential zones and other areas where therE there is considerable traffic in juvenile or family oriented activities should be adequate for the purpose but should not be overly restrictive. C. Should the City develop amendments to the Code of Ordinances designed to control the site location choices of adult entertainment businesses., it may be desirable to specify an amortized termination schedule for any existing adult business which does not meet the minimum site location standards as specified in the Ordinance. D. Concurrent with any zoning ordinance revisions designed to control adult uses , a permit and license mechanism should also be developed. The minimum operational standards specified by the license will vary according to the type of business to be regulated. E. Any zoning ordinance amendments concerned with adult businesses should provide provisions to regulate signs and similar forms of advertising. F. The City Commission should encourage a vigorous enforcement of the State Penal Code to remove illegitimate uses. Especially important is that portion of the Penal Code which protects minors from all pornographic material. The City should impose specific amendments to the Code of Ordinances requiring businesses publicly displaying generally circulated pornographic material to prohibit minors, by an enforced physical barrier, from viewing or purchasing pornographic .material. If the City Commission, following a recommendation from the Planning and Zoning Commission, finds the necessity to control adult-only businesses -and the. public display of generally circulated pornographic material , all amendments to the Code of Ordinances should be prepared as a total package and submitted to the Planning and Zoning'-Commission -for preliminary review, before action by. the City Commission. The Planning and Zoning Commission review should have the intention of assuring the purpose and continuity of each amendment to the overall goal of regulating these adult businesses and adult material displays.. 1 . Zoning for the Pornographic Arts , City Development Department, August, 1976, Kansas City, Missouri 2 The cases reviewed in depth were: A. -Young v American Mini Theaters, Inc. , 96 S. Ct. 2440 (1976). This was the Supreme Court review of the City of Detroit zoning ordinance which regulated (a) the proximity of adult uses to residential zones, (b) the proximity of adult uses to other areas where heavy traffic or concentrations -of minors were found and (c) the density of adult businesses. The Court held that a city has the authority to control the location and density of adult entertain- ment businesses based on its police power right and duty to protect the health, safety and welfare of its citizenry. 6.. Miller v California, 93 S. Ct. 2607 (1973). This decision laid down the most recent standard for determining what is obscene. This decision is the basis for the Texas Penal Code Chapter.43, Public Indecency. C. : Smith v United States , 97 S. Ct. 1756 (19.77) ;..Paris-.Ad.u1t -.Theatre I v Slatop, 93 -S. Ct. 2629 1973 , and Roth v United States, 77 S:' Ct: 1304 (1957) . These earlier decisions were reviewed in order to determine the history of restrictions- upon 1st. Amendment guarantees. This review revealed that in effect the Court is ruling on the controversial problem of obscenity and state community standards determining prurient 'appeal and patent offensiveness on a case by case basis.- 3 Amended by Act 1975, 64th Leg. , p 3729 Ch. 163, 1 1 , eff. September 1 , 1975. 4 Acts 1973, 63rd Leg., p 883, Ch. 399, 1 1 , eff. January 1 , 1974. 5 U.S. News & World Report, September 13, 1976, p. 76. 6 Time, April 5, 1976. As 10 CITY OF BEAUMONT, TEXAS TO: Planning Commission and City Council FROM: Planning Department SUBJECT: Regulation of Adult Uses;- REVISED September 14. 1982 issues and Analysis At present, the Zoning Ordinance of the City of Beaumont regulates certain adult uses by establishing a set of "special conditions" that-must be met before such uses may be approved. By adult uses, the ordinance refers to "adult bookstores," "adult motion picture theaters," and other adult uses such as massage parlors or nude modeling or photography studios. The definition of an adult use is tied to situations where minors, by virtue of age, are excluded from the premises. This approach was used to elimi- nate the need to crake individual subjective Judoer,ents and to take advan- tage of Texas Statutes concerning the sale, distribution or display of harmful rateriat to minors. The special conditions which must be a*t before an adult use can be perrr,itted are: . (a) An adult use stall not be located within five hundred (500) feet of the district boundary line of any residential zoning district. (b) An adult use shall not be established or txpanded within three hundred (300) feet of any other adult bookstore, adult theater, bar, pool hall, or liquor star*. (c) An adult use shall not be established or expanded within one thousand (1000) feet of the pro;erty line of a church, s:'-0:1 , public park or'other recreational facility-s;'ieht r..ir.:•rf cc� :�t•. Unfortunately, these special conditions do not apply to eating or drinking places which offer live entertainr*nt that would norr-ally be co-:sid:red as an adult use. It is the position of the planning staff that eatin4 or csrirkir.g places which have entertainment such as tiotie dancers . strippers . go-go girls, and other similar activities from. which minors are txcluded by virtue of age under the laws of Texas unless accorreanied by a consenting parent, guardian or spouse, should be considered and classified as adult uses. This could necessitate amending the zoning ordinance. Currently, all adult uses rtcognited in the zoning ordinance are allowed in the General Corrercial - Multiple Dwelling Districts (GC-MD) only with a specific use permit. They are permitted in the C-M, ll, and HI Districts as a use of right. 1f and only if all of the following conditions are found then the City Council is required to issue a specific use permit for adult uses in a GC-MD Oistr ct3 i Adult Uses Page 2 Issues and Analysis (cont'd) 1) That the specific use will be compatible with and not • _ Injurious to the use and enjoyment of other property, nor significantly diminish or impair property values within vicinity; . - 2) That the establishment of the specific use will not impede . the normal and orderly development and improvement of sur- rounding vacant property; 3) That adequate utilities, access roads , drainage and other necessary supporting facilities have been or will be provided; 4) The design, location and arrangement of all driveways and parking tpaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; 5) That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, tunes , dust, noise and vibration; 6) That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; 7) That there are sufficient landscaping and screening to insure harmony and compatibility with adjacent property; and B) That the proposed use is in accordance with the conrrthensive plan. From. a planning perspective, the key conditions to the analysis of a reQuest for a sptcifie use pem-it are conditions 11 and 02. As a general rule , uses which are perr.,itted in a zoning district only %ith a specific use ;err-it have unusual nuisance characteristics which often are inc atible or injurious to the uses that are permitted as a right in the same toning district. if unregulated, these incompatible uses r4y significantly dir.inish or impair area property values and inpede the norz.al and orderly dove lorr-ent of stirrcur-ding areas. The require-ant that adult uses must qualify for a specific use permit in •� a GC-MD District is justified on the basis of local analysis- and reference to studies on the subject pre Fared by the City Developmrit De4t. of Kansas City Missouri., the Planning Department of the City of k4rillo, the City of Detroit, and the Planning Advisory Service of the kmerican Planning Association. The City of Detroit adopted adult use regulations in 1972 as part of an "Anti-Skid Row Ordinance" that prohibited locating adult uses within $DO- feet Of a residential area or within )DOD feet of any two other "regulated" uses., ' The, ttrm "regulated uses" applied to 10 different kinds of establish- a' Adult Uses -`s Page 3 Issues and Analysis (cont'd) ments including adult theaters , adult bookstores, cabarets , bars, taxi dance halls and hotels. Detroit subsequently amended its ordinance as a result of a District Court ruling by prohibiting the location of adult uses within 500-feet of a residential zoning district instead of any resi- dential area. Adult entertainment establishments were added to the "Anti-Skid Row Ordinance" by the City of Detroit because of evidence of the adverse socio- economic and blighting impact that such uses have. "That evidence consisted of reports and affidavits from sociologists and urban planning experts, as well as some laymen, on the cycle of decay that had been started in areas of other cities , and that could be expected in Detroit, from the influx and concentration of such establishments."1 In Texan the Planning Department of the City of Amarillo has prepared and published a study entitled 'A Report on Zoning and Other Methods of Regula- ting Adult Entertainment Uses in Amarillo." The essence of the report was that adult entertainment uses have impacts upon surrounding land uses that are distinguished from other businesses permitted in the same zoning dis- tricts. The fo11•owing are two of the causal factors identified in their analysis of adult entertainment uses. 1. The Ara rillo Police Department's statistical survey of street crime in the vicinity of adult-only business indicates that crime rates are considerably above the City's average imrediattly surrounding the adult- only businesses analyzed. 2. Concentrations of these adult-only activities have detri- mental effects upon surrounding residential and corr•.er- cial activities. These effects are caused by (a) the noise, lighting and traffic generated by the pedestrian and vehicular traffic frequenting these businesses whose primary h-)urs of operation are from late evening to late night, (b) the increased opportunity for "street crimes" in areas with high pedestrian traffic, and (c) the tendency to avoid areas where adult businesses (especially pornographic) are established. This avoidance and other factors can lead to the deteriora- 2 tion of surrounding co.�rercial and residential activities. The analysis of the adverse Igact of adult entertainment uses provided for the City of Amarillo is consistent with local experiences here in EeaLnon t. The local consequences of the concentration of adult entertainment uses was clearly illustrated in the 'Com ercial 'Re vital ization Plan for the •\ Charlton-Pollard Neighborhood" which was prepared by the Planning Department in May of 1981. This plan was prepart,d as a "demonstration project" under a grant from the Economic Development Administration and was dtveloped to s . . Adult uses - ---_. ..t: page e Issues and Analysis (cont'd) be used as a model or prototype for the revitalization of other areas that have experienced commercial deterioration, neglect and disinvestment. The major points of the Ilan which have bearing on this report are as follows: • `The concentration of bars , lounges, and package stores on Irving Street represents a semi-developed adult entertainment tone. Adult entertai mmnt uses tend to have a "skid-row effect' on ad- joining properties and, when concentrated, often result in deteriorating residential and commercial property values, higher crime rates and depressed neighborhood living conditions. Stt►+een 1970 and 1980 the total number of businesses located on Irving declined from 23 to 19. At the same time the number of package stores and lounges increased from 6 to 9. Neighborhood cocTnercial uses such as washaterias , restaurants , and grocery stores left the area and were partially replaced by lounges, body shops and car crashes. The character of cornercial development along Irving has changed in rtcent years from neighborhood car.,ercial to highway or nuisance c . ,ercial with a high degree of incompatibility. The high incidence of lounges and package stores on Irving actually discourages the retention or new developr.ent of ntight,orhood cor..- mercial uses and is not conducive to -otiyhbarhood co-r*rcial revitalization."3 The plan described in detail the downhill economic decline in this ntig'.bor- hood which was caused by the presence and concentration of adult entertain- ment uses. Neighborhood convenience eomercial establishr-ents which were needed to rest the market der-ands of the residents in the area were driven am-ay by the Srowing prestnce of these incompatible uses. racy residents in the area who were for.-tr shop;trs testified that they and their children were threatened and verbally abused by the custo-.-,:rs C#f the various adult entertainment uses and they feared for their safety and well-being. This ex;erience is consistent with the evidence used by the City of Detroit in deciding to disperse and regulate the locational as;ects of adult enter- tain.- -t uses. This local experience also was the basis for _the recon- rtndation by the Planning Departrfnt that '. . .the adult nuisance uses in the area which art not compatible with either residential or convenience r- .cial development and which diminish the chances fcr 1•-.­ 0 economic revitalization should �-. amortized out and rt : :vtd at the earliest opportunity." The Police Department of the City of Beaumont has concluded that adult uses such as bars , lounges or taverns, and especially those featuring such sex- ually-oriented activities as exotic dancers and go-go girls , art the frequent scene of illegal sexual activities such as prostitution and the sale and Lust of narcotics. Criminal activity in an area with adult uses is above Adult Uses M ..p Page S Issues and Analytis (cont'd) v average and is often attributable to the need of drug users to obtain money to finance the purchase of narcotics. Crimes against persons, such as mv99ing, art also above average in such areas.. The bunching or grouping of adult uses has an even greater adverse-impact. The character of the area attracts a distinct class of people and a crimi- nal element. It results in a reinforcing multiplier effect on criminal behavior and leads to a higher incidence of crime. , The preservation of residential neighborhoods and business districts against the deteriorating influence of crime and blight ranks among the highest functions that city dwellers expect its planners, commissioners and elected officials to perform. Current zoning regulations in Beaumont are not adequate .to control the adverse'impact of sexually-oriented adult uses on sur7unding residential areas or to prevent coamrcial deterioration and blight. In deciding what additional minimun regulations of adult uses art needed to protect the residents of the City of Beaumont, it is significant to note the recent efforts of the City of Galveston to regulate adult uses. The City of Galveston permits adult motion picture theaters and adult book stores in coffm rcial and industrial zoning districts but only with a specific use permit. In addition, these adult uses are not permitted within $00 feet of any residential zoning district or within 1000 feet of the property line of a church, school, public park or recreational facility where minors con- gregate. The legal validity of the Galveston Ordinance which has sore similarities with the Beaumont toning Ordinance was upheld in District Court. However, upon subsequent appeal , the decision of the District Court was reversed. It was the opinion of the Fifth Circuit of the United States Court of Appeals that the Galveston Ordinance went too far in that, under the guise of regulation, it banned theaters from, showing motion pictures for adult avdiences.5 The c s on of the Fifth Circuit Court is a clear warning to local governments that they cannot adopt regulations which have the affect of banning adult uses. Sumr.ation and RecoT-endations There is clear and convincing documented evidence tkat adult entertainnent uses , because of their very nature, have serious objectionable operational characteristics , particularly when several of them are concentrated, that produce or result in a deleterious effect upon adjacent areas and the surrounding neighborhood. Special rtgulatton of these uses is necessary to ensure that these adverse affects are minirrized and controlled so as not to contribute to the blighting or downgrading of adjacent property and • the surrounding neighborhood. At present, Section 30-33.B.2) of the Beaumont Zoning Ordinance establishes special conditions for adult bookstores, adult notion picture theaters and other adult uses such as massage parlors, nude modeling or photography studios. The planning staff recormnds that these special conditions should ; Adult Uses Page 6 Summation and Recorm- ndations (cont'd) also be applied to eating or drinking places which offer live entertainment - �. from which minors are excluded under the laws of Texas unless . accompanied by a consenting parent, guardian or spouse. In Iddition, the planning staff recom.mnds that a specific use permit should be required for all adult entertainment uses in the GC-MD District. In particular, Section 30-33.6.2) would be amended by adding the following condition; d) Because adult uses generally have unusual nuisance charac:. - istics which can be incorgatible and injurious to other con: mercial or residential uses and which may significantly diminish or impair area property values and impede the norr-al and orderly development of surrounding areas, a specific use permit shall be required when the proposed use is to be _ located in a GC-MD, General Commercial - Kuitiple Family Dwelling district. The planning staff would also recorr-end that condition "c)" in Section 30-33.8.2 which prohibits an adult use being established or expanded within 1000 feet of the property line of a church, school , public park or other recreational facility where minors congregate be reduced to 750. The reduction is recor", nded :after consultation with the legal De;artr..ent concerning the impact of the decision of the Fifth Circuit Ap;eal Court on the Galveston Zoning Ordinance. The planning staff his prepared a series of maps which will be presented at the public het-ing which demonstrate that with this proposed reduction in separation : .ween uses that thert are r,u.-*rous cor-r.-ercially viable locations for at t entertainment yses. Thest text a-tiend-.. nts do not represent an attempt ban adult entertainrent uses from the City of Beaumont. F007NO1ES 13'c-a-r V. Tr4 ::cr, Jne., 96 S.Ct. 2440 ( 1976). ?"A Report on Ioning and Other F*thods of Regulating Adult Entertain- ment in Arr.arillo,' rlanning Departmxnt - City of kurillo, Texas (1977)9 pp. 1�•I5. %Commercial Revitalization Plan for the Charlton-Pollard Neighborhood,' Planning Department - City of 6Eaunont, Texts (1981). 4"Kemo on Neighborhood CaTercial Revitalization Plan for the Charlton. Pollard Neighborhood," Planning Department - City of 6taumont (June 23, 1982). _ _ SBasiard-res v. City of GrTver:on, 682 F.2d 1203 (1982). l'IIIJ:•:i : I.l:'1'1VV : 1111VL1 Ill::►Ul�l'J 0AGE J YES: 3 NO: 23 NO. 8: If the answer to No. 7, above is "NO" would your decision have been influenced .in any way • .• by nearby (within a 2-square block area) concentrations of adult entertainment establishment o r ! COMMENTS: ' R All answers reflected that the decision to relocate (19 "No's") in the immediate area would .o be heavily influenced by the operation of adult entertainment businesses in the neighborhoo< h , 140. 9: Are you opposed to future locations of any of the following types of adult entertainment establishments in your neighborhood? OPPOSED NOT OPPOSED INDIFFERENT oc A. ADULT BOOKSTORES 24 0 0 B. MASSAGE PARLORS 23 0 0 w C. PEEP SHOPS 23 0 0 1- D. BARS WITH X-RATED ENTERTAINMENT 21 0 1 E. NUDE OR TOPLESS DANCING 21 0 3 r F. ADULT THEATRES Z1 0 1 ` G. ADULT MOTELS 22 0 2 z H. OTHER SEX SHOPS 21 0 2 w NO. 10: Do you feel that any of your normal living habits (going out at night, walking in the evenil >c riding your bicycle, etc) would be limited or hindered in any way by the operation of adult' ! entertainment establishments in your neighborhood? YES: 26 NO: I PC COMMENTS: z o + 0- "We feel it would reduce any neighborhood to a ghetto. It would bring in the worst element. in We don' t nQed degenerates. There is enough of that already in town." "The element of this type of business never helped any business near it-they only degrade j. an area.* "Look at most any city. The adult oriented businesses are usually located in uoide::1 vable areas - I think that if adult businesses were to bo concentrated, fringe areas would soon degenerate to an undesirable environment, (appearance, etc. ) ". AN ANALYSIS OF THE EFFECTS OF SOBS ON THE SURROUNDING NEIGHBORHOODS IN DALLAS, TEXAS AS OF APRIL 1997 Prepared for: Ms. Sangeeta Kurupplilai Assistant City Attorney CITY OF DALLAS Office of tho City Attorney City Halt 78N Dallas, Texas 76201 Prepared by: PETER MALIN, MAI 06/12/97 15:30 TX/RX N0.5591 P.001 THE MALIN GROUP Real ."-Cas April 29, 1997 Me, Sangeets Kuruppill2i Assistant City Attorney CITY OF DALLAS Office of the City Attorney City Hall 78N Dallas, Texas 75201 RE: The analysis of the effects of Sexually Oriented Businesses (SoBs), specifically those which offer or advertise live entertainment and operate as an adult cabaret, on the property values in the surrounding neighborhoods. The findings below update and incorporate the report prepared by The Malin Group dated Oecember 14, 1994. Oear Ms. Kuruppillai; In accordance with our engagement letter dated August 2, 1904, as amended on March 21. 1997. we have completed the study referenced above. Below is a summary of our findings and the reasoning behind our conclusions. CONCLUSIONS Sexually oriented businesses, specifically those that offer or advertise live entertainment and operate as an adult cabarets, currently exist In the city of Ciallas. Many of these businesses are located by themselves away from other S08s while in some areas of the city they can be found concentrated in one area. In our December 14, 1994 Report ("The Report"), we found that S05s have both a real and a perceived negative impact on surrounding properties. In such areas, crime rater, are higher and property values are lower and/or the properties take longer to lease or sell. Our study has found that the higher the concentration of these businesses in one locale, the greater their impact on the neighborhood- 06/12/97 15:30 TX/RX NO.5591 P.002 Ms. Sangeeta Kurupillai April 29, 1997 Page 2 There are two primary ways in which SOBs affect the neighborhood: one is by their presence, including signage and advertising, and the other is by the hours they keep and the type of people they attract. Their presence influences the publids perception of the neighborhood in which they are located. SOBS "can create 'dead zones' in commercial areas where shoppers do not want to be associated in any way with adult uses, or have their children walk by adult uses".' This influence appears to be the same whether the dancers are appearing in a state of nudity or semi-nudity. The public perception is that it is a place to be avoided by families with women and children. The second major Influence is the hours of operation and the type of people which SOBs attract. This appears to lead to higher crime in the area, loitering by unsavory people, including prostitutes, and parking problems which can negatively affect the surrounding businesses. Additionally, there is frequently parking lot noise and disturbances which often turn violent. The SOBe keep late hours which can also become a nuisance to nearby residents. We studied police calls for service emanating from 10 different SOBS over a four year period from 1993 through 1996 and found that SOBS were a major source of such calls. The seven SOBs along West Northwest Highway near Bachman Lake averaged more than one call to the police everyday. We also studied sex-related arrests for the four year period ending March 1997. The number of sex crime arrests which include rape, prostitution/commercial vice and other sex offenses, was 396 in the area along West Northwest Highway which includes the seven SOBS. This compares to 77 and 133 sex crime arrests respectively in two similar arede.along Northwest Highway, the second of which contained two SOas spaced more than a .i mile from the other. From this evidence, it appears that there is increased sex crime arrests and disturbances requiring police presence around SOBS and significantly more crime when there is a concentration of SOBS in one area. We reviewed studies completed in numerous other cities including: Austin, Los Angeles, Indianapolis, New York, and Phoenix on the effects of adult entertainment on the surrounding properties. in addition, we reviewed summaries of similar studies • completed in Islip, New York; St. Paul. Minnesota; Whittier, California; Manatee County, Florida and New Hanover County, North Carolina. Finally, we did extensive research regarding the SOBs in Dallas. 'Adult Er7tertainment Study, Department of City Planning, City of New York, 1994, p. 3. 06/12/97 15:30 TX/RX NO.5591 P.003 Ms. Sangeeta Kurupiilai April 29, 1997 Page 3 All of these localities, after completing their own independent study of the issue, and reviewing the work of the others, decoded to enact controls on SOBs which would prohibit there from concentrating in one area in the community and limit the areas in which they could locate to those away from residential, religious, educational and recreational uses. In most cases, the localities limited SOBS from locating in all but a few zoning districts. They set minimum distances between other S08s as well as residential, religious, educational and recreational uses. These distances were generally 500 or 1,000 feet. Most localities established amortization periods after the enactment df the ordinance in which S08s became non-conforming. Generally, local authorities could grandfather certain SOBs through a public hearing process. Most of the clubs that were grandfathered were isolated establishments which advertised discretely and were buffered from residential uses. In several instances, State and Federal Courts have found that legislation controlling 808s was constitutional and did not abridge First Amendment rights. As long as the locality provided for a sufficient number of relocation sites, these restrictions were found to be constitutional. We reviewed these studies to determine whether the other cities used sound principles in reaching their conclusions. After reviewing the studies completed by New York, Phoenix, Indianapolis, Austin and Los Angeles, we determined that their methodology was appropriate and their conclusions were sound. . We have no reason to believe that these findings would be any different In Dallas. These studies in the "other localities found that adult entertainment uses have negative secondary Impacts such as increased crime rates, depreciation of property values, deterioration of community character and the quality of urban life."' In other cities' studies, ss well as the study that we completed in Dallas, 'Where respondents indicated that their businesses or neighborhoods had not yet been adversely affected by adult uses, this typically occurred in Study Areas with isolated adult uses. Moreover, these same respondents typically stated that an increase in such uses would negatively impact them. Community residents fear the consequences of potential proliferation and concentration of adult uses in traditionally neighborhood- P. vii 06/12/97 15:30 TX/RX NO.559.1 P.004 Ms. Sangeeta Kurupillai April 29, 1997 Page 4 oriented shopping areas and view the appearance of one (emphasis added) or more of these uses as a deterioration in the quality of urban life."' In Dallas, we interviewed a number of real estate brokers active in an area punctuated by S013s who reported that S08s "are perceived to negatively affact nearby property values and decrease market values". Eighty percent of the brokers responding to a NYC survey indicated that an adult use would have a negative impact on nearby property values. This is consistent with the responses from a similar national survey of real estate appraisers" completed by Indianapolis and a survey completed in Los Angeles of real estate professionals. "Adult use accessary business signs are generally larger, more often illuminated, and graphic (sexually-oriented) compared with the signs of other nearby commercial uses. Community residents view this signage as out of keeping with neighborhood character and are concemed about the exposure of minors to sexual images."6 This was a major complaint in our interviews in Oallas and the findings of the New York City report as well as the other localities. We have prepared a video tape to accompany this report that shows typical SOB signage in Dallas. The newer clubs that stand-alone and meet the requirements of Chapter 14 Section 4 1 A of the Dallas zoning code, generally have more discrete on-site signage while those that must compete for customers from nearby or adjacent SOBS have more obvious on-site signage intended to draw the public's attention. SUMMARY We found from our study of three Dallas neighborhoods and the findings of numerous other localities, that one isolated SOB has much less direct impact on the neighborhood than a concentration of SOBs. It does, however, impact the properties immediately surrounding it. The more visible it is, the more impact it has. Concentration Effect Our study show* that the location of multiple SOISs in one neighborhood can have a major Impact on the neighborhood by contributing to crime, driving away 'IBID. P. viii `IBID. p, viil 'IBID. P. viii 06/12/97 15:30 TX/RX iO.5591 P.005 Ms. Sangeeta Kurupillai April 29, 1997 Page 5 family-oriented businesses and impacting tha nearby residential neighborhoods. When concentrated, SOBs typically compete with one another for customers through larger, more visible signs, and graphic advertising. They tend to be a magnet for certain types of businesses such as pawn shops, gun stores, liquor stores, check cashing storefronts and late-night restaurants. Impact on Surrounding properties The highest and best use of nearby property becomes limited under the principle of conformity as few other tenants wish to be near the SOB-dominated area. Investors and lenders are unwilling to invest in new improvements in these areas and the vacant land sits idle for years. Single-family homes in the area frequently end"-up as rentals because the families move away from the SOB-dominated area and it becomes exceedingly difficult to sell such houses. Attitudinal Impact As the recent Now York City study states: "The experience of urban planners and real estate appraisers indicates that negative perceptions associated with an area can lead to disinvesstmont In residential neighborhoods and a tendency to shun shopping streets where unsavory activities are occurring, leading to economic decline.° The forces that influence real estate value are described as follows: 'The market value of real property reflects and is affected by the interplay of basic forces that motivate the activities of human beings. These forces, which produce the variables in real estate market values, may be considered in four major categories: social idestis and standards (emphasis added), economic changes and adjustments, governmental controls and regulation, and physical or environmental changes."' The attitudinal data in the survey is thus significant even in those instances where the current negative impacts of adult entertainment establishments are difficult to measure,° °IBID, page vi 'The Appraisal of Reel Property, seventh edition, by The American Institute of Real Estate Appraisers, Page 3. AAdult Entertainment Study, Department of City Planning, City of New York, 1994. Page vi. 06/12/97 15:30 TX/RX NO.5591 P.006 Ms. Sangeeta Kurupillai April 29, 1 997 Page 6 SCOPE OF WORK Our study was conducted in the following manner. We reviewed similar studies of adult entertainment completed by five major cities. As part of our research, we Identified a Study Area which included seven S08s operating as Cabarets (The "Study Area"). We then proceeded to compare and contrast this area with two other areas of Oallas with similar land uses and traffic patterns (the "Control Areas"), one of which did not include any SOBS and one that included two that were a A mile apart. These were compared on the basis of sex-crime rates and calls for police over a four year period. Additionally, we interviewed property owners or their real estate brokers and agents who are actively leasing, listing, managing, buying or selling properties in the Study and Control Areas. We collected and analyzed crime statistics within the Study Area and the two control areas known as Control Area East and West. These crime statistics included the four years ending December 1996. Both the number of sex-crime arrests and number of police calls at the specific SOBS were analyzed (See Exhibit C). The number of sex crime arrests, in the Study Area which includes the concentrations of SOBS was five times higher than the Control Area with no 808s and nearly three times higher than the Control Area with two isolated 608s. We then contacted owners or their real estate representatives at properties in each area that were either trying to sell or lease land or improvements. This interview process Included talking to people involved with single family residences, strip shopping centers, community.shopping centers, apartments, free standing retail stores, vacant restaurant buildings, vacant autopart stores and vacant commercially zoned land. We surveyed this group regarding the length of time the property had been on the market, their experience with that property with respect to its pricing and what observations they could offer about trends in the neighborhood. If it was a real estate agent, we asked them to compare this property in this neighborhood to similar properties in other neighborhoods. Finally, we asked these agents if the presence of SOBs in the neighborhood had any impact on their property or the surrounding neighborhood. The Study Area is a neighborhood located near Bachman Lake on West Northwest Highway, a major gateway to the city where seven S05s are located. There are three other locations of concentrated SOBS: Greenville Avenue near Lovera Lane; Harry Hines Boulevard near Royal Lane and Spur 342 east of California Crossing where smaller concentratlons of SOBS are congregated. We did not study these sreas. 06/12/97 15:30 rX/RX N0. 5591. P.007 Ms. Sangeeta Kurupillai April 29, 1997 Page 7 Generally, most other live entertainment SOBS are dispersed and located individually throughout many neighborhoods in the city_ The Control Areas, East and West were chosen due to their similar land uses and traffic pattems to those of the Study Area. Control Area West is an area along West Northwest Highway just to the east of the Study Area which does not contain any SOBs. It is located along the same highway as the Study Area and predominately consists of highway commercial and residential uses_ Control Area East consists of another part of the same highway, East Northwest Highway. This Control Area however, contains two SOBS one of which, Frs, is at Lawther Lane at the east end of the Control Area and a second SOB, Doll's House, is located at the west end of the Control Area. This area contains both highway commercial and residential uses. The two S08s are approximately one-half a mite apart but are within 1,000 feet of residential uses. The boundaries of the three areas were chosen to coincide with the Police Department beats. It is through the beats that crime data is collected and analyzed. ANALYSIS OF DATA A summary of other localities' findings regarding SOBs: DALLAS. TEXAS Property Owner/Agent Inte+vlewa Between September-and November, 1994 The Malin Group interviewed 30 people who were either the owners of commercial property or their agents in the one Study Area and two Control Areas. During March and April 1997, we conducted "her interviews with some of the same and many additional owners and agents in the areas. All of the people interviewed in the Study Area believed that their property values (or those of the owner that they represented) were lower due, in part, to the presence of the seven SOBS operating as Adult Cabarets along West Northwest Highway. This loss of value manifested itself in a variety of ways including: increased operating costs, such as, additional security patrols, burglar alarms, trash cleanup; income property selling at much lower sales prices than comparable properties in similar areas, extreme difficulty leasing in certain shopping centers and a lack of demand for commercial land. We examined three sales of retail zoned land in the Study Area which sold for but a fraction of what similar properties along the same highway in the Control Area brought. The land sales in the Control Area ranged between S10.00/SF and $12.00/SF while 06/12/97 15:30 TX/RX NO.5-D91 P.008 Ms. Sangeeta Kurupillai April 29, 1997 Page 8 four sales along the same highway just a mile away in the Study Area sold for prices between $1.20/5F and $7.001SF respectively. Two tracts with incom"enerating retail buildings show similar results. The one in the Study Area sold on a 16.5% capitalization rate (cap rate) while the one in the Control Area sold on a 12.5% cap rate (the higher the rate the lower the value). This difference in rates can be directly attributed to the additional risk factors reflected by the area. The difference between the two yields reflects a 25% drop in property prices near the concentration of SO13s. In our interviews with real estate professionals, we leamed that some properties had been on the market next to or across the street from SOBs for over 10 years. Interest in these sites historically has come from the same small group of users which includes: other SOBS, pawn shops, liquor stores, night clubs, tanning salons, and certain restaurants. These users have found that the SOBS clientele will patronize their businesses; therefore, they tend to congregate near S013s. We learned that retail space near SOSs is more difficult to lease because the type of tenant who will locate there tends to be limited to those listed above. As a result, these properties take much longer to market. Also, a comparison of lease rates between the Study Area and the Control Area showed lower asking rates near the SOBS operating as adult cabarets. Most owners and agents that we interviewed who have holdings in either the Study Area or Control Area West believe that should the Study Area be rid of the SOBS, more investment in new restaurant and retail properties would quickly follow. This is due to the high traffic count along Northwest Highway, the density of surrounding developments and the demand generated from the surrounding business and residential neighborhoods. Many others we talked to echoed these sentiments and believed that owner's would make significant investments in nearby apartments if the SOBs were gone. Crime As part of our comparison of these areas, we collected crime statistics for the Study Area and compared them to the two Control Araas. We found that sex-related crimes were over five tllrnes higher In the Study Area than In Control Area West and nearly three times highor than In Control Area West. Sex Crimes, as defined by the FBI, include: rape, prostitution/commercial vice and sex offenses. (See Exhibit A attached). The results of this comparison show crime in three similar commercial corridors along Northwest Highway. The Study Area had 396 sex crime arrests during the 50 month period thru March 1997 while Control Area East and West had 133 and 77 respectively. Control Area West is less than a mile from the Study Area along the same highway; yet, it had five times fewer sex crime arrests. 06/12/97 t5:30 '1'X/RX N0.5591. P.009 Im Ms. Sangeeta Kurupillai April 29, 1997 Page 9 S of Sox Crime Arrests Locadon 1123 -3197 Study Area 396 Control Area East 133 Control Art* ~ 77 These results cannot be solely attributed to the SOBS because of the differences in demographics other factors may be contributing to the crime in the Study Area. However, the data clearly suggests that the 508s are one of major causes of crime and confirms the results of similar studies In Austin, Los Angeles, Indianapolis, etc. This is true especially with respect to the sex crimes where the same result has been found in nearly all the other localities studied. Police Calls We analyzed Dallas Police Department call logs where such calls were made from the S08s in the three areas (See Exhibit 8). A review of these calls from the four year period 1993 thru 1995 shows a repetitive series of complaints coming from these SOBS which includes assaults and unruly behavior both inside and outside of the clubs. The Police Reports show numerous situations where weapons were present and prostitution was occurring. In the Study Area during this four year period, there was more than one call per day for the Dallas Police from these seven locations. DALLAS - SUMMARY In all of our interviews in both 1994 and 1997, we found that only one person thought they benefitted tram the presence of the SOBs. The S08s were largely responsible for the Study Area's negative perception by the public and many people interviewed believe that the SOBs are largely responsible for the high crime in the area. The Control Areas, where crime was lower, were also impacted by the nearby presence of S06s. The two S08s reported 275 calls for Police during the last four years. The Control Area with the two $08s also had significantly more sex crime arrests than the Control Area with no SOBs. We found that properties in Dallas are negatively impacted by the presence of SOBS. This is more evident when they concentrate in one area, but can be seen elsewhere through the dining and shopping patterns in the neighborhood. We found that crime is significantly higher in the Study Area where seven establishments are located. Contributing to this is competition for customers requiring larger, more obtrusive and 06/12/97 15:30 rX/RX N0.5591 P.010 Ms. Sangeem Kurupillai April 29. 1997 Page 10 graphically suggestive signage. Little investment in the area is being made because there are a limited number of users who wish to be near such establishments, What investment is occurring requires much higher returns to offset the risks apparent in the neighborhood. Our finding3 here in Dallas are reinforced by the numerous studies done in other localities, all showing higher crime in areas where SOBS are concentrated (especially sex crimes). The general negative feelings towards these areas and avoidance of the area by.those who live in the surrounding community, both in our study and those from around the country. show how the public perceives such areas. This is reinforced by numerous newspaper articles on the subject, both in Dallas and the other localities and nationaf press. The presence of the SOBS In the Dallas Study Area has resulted in a general diainvestment in the surrounding properties. Respectfully submitted, THE, UN GROUP Peter Malin, MAI Managing Director PM/kn 06/12/97 15:30 TX/RX N0.5591 P.011 ,•• \\- f ��,�,S <,rr ''• r lty J f ,ta � L BOO � �� +. �`�a�� � ��� �.: oaf!!` ��►.�i.. .: :� flipy lop Cr IP ki AL reel �CAME MAL �N�ff? i'� IG=yam •r wylra • L r- fiCarrolttor+ pall Addl: R1CHA DSON �( R 1 i nAj- r F,i 1 So to _ t y 1 GARLAN . ++ Un! iy WINGark Hlg, art j b b � 7 Sunnyvale r — � -- n • � n r`F 70 �7 I G DALLAS� w•o.6• t MESQUITE i alc Coc'k*atl - j,--,�° bill ' w •' lit it coville Ouncain 0 •n• 47 v + of Sat Hill Soto Lancaster X Wilmer Gt Neck- tghta The Malin Group 1. Study Area 2. Control Area- West 3. Control Area-East 061,1 15:30 TX/RX NO. 5591 P. 01.4 exma rs 06/12/97 15:30 TX/RX N0.5591 P.015 EXHIBIT A Comparison of Sex-Related Arrests for So months enCtng 03/01/'97 Mo. of No. of Study Area Sex Crimes S066' Police Beat sae 149 7' Police Seat 537 41 0' Police $mat 538 208 o` Total 396 Sex Crimes ? SOS* No. of No. of Control Ana-West Ux Crimes SOBS Police Beat 546 17 0 Polls s seat 552 00 0 Total 77 Sex Crimes 03062 No. of No. of Control Area-East Sax Crimes SOBS Police Heat 215 13 1 Police Seat 244 52 1 PoNcs Beat 241 98 1 Total 134 sex Crimes 330,98 ' Sex crimes are defined as Part I and Part II sex crime llrrost3. These indude Rape. Prostitutlon/Commercial Vice and outer, Sex Offenses. ' These inciude 508a as defined in the proposed amendment to Chapter 41A dated 103110197. ' THS is a ConCentrstlon of SOO& al" several biotic* of West Northwest Highway. ' These beate are immediately adjacent to the seven SO9s in Seat S38, Source: Dalt" Police Department 06/12/97 15:30 TX/RX NO. 5591 P.016 EXHIBIT B (Page 1 of 2) SUMMARY OF PQWCE CALLS FOR SERVICE 01193 THRU 12a6 Avg. Per MameslAddresses 1993 1994 1996 1996 Total Year Chez Pussycat 43 13 18 13 87 22 3217 W Northwest Hwy.Oaltas. Texas 75220 Crystal Pistil 18 14 11 4 47 12 3211 W NaMwest Hwy, Dallas, Texas 75220 Baby Dols Tboass Satoon/D* Vu 142 165 128 179 614 153 3039 W llort>wresl Hwy, Dallas, Texas 75220 Fantasy Ranch0amond'slBilllonaire goys Club 28 76 64' 44' 212 53 3027 W Northwest Hwy, Dallas, Texas 76220 rn The Fare fist 109 85 70 73 337 84 3021 W Northwest Hwy, Dallas, Texas 75224 `' Cabgula X)U 35 58 29 53 175 44 2828 W Norltwvesi Hwy, Dallas, Texas 75220 v� a Totata for Study Anw—Which Includes a eorountratios of SWs. 1,472 3bS 0 ' This Uub was dosed loot six rnonft during'1995 and 1996 and these totals were annualized. SDlWRY OF POLICE CALLA FOR SERVICE 01193 THRU 12" o Avg. Per � NernesJAddreeses 1"3 1994 1995 1986 Total Year �- PT's Gentlemen Club 40 45 21 48 154 39 4475 W l.awther Drive, Dallas, Texas 75220 Doll's House 0 40 43 38 121 30 6509 E Nortmest Hwy, Dallas, Texas 75231 Totals for Control Area—Which Includes two Isolated 5013s, 275 35 EXHIBIT B (Page 2 of 2) $LMINARV OF FOME CALLS FOR SEFMCE #V$3 THRU 12f96 rV Aug. Pat Nan esfAddresses 1993 im 4"s 1396 Tool Year Million Ddlar Sawn 37 15 11 19 82 21 6826 G+eenvile Avenue, AaRm, Texas 75231 ; 0 rn N cD r — CJ7 GJ O X Y. Z O UI CD h-" "CJ O O EXHIBIT C SOBS in the Study and Control Areas by Type of License Study Area Chez Pussycat Class A Dance Hall Crystal Pistol Class A fiance Hall Saby Dolls Topless Saloon Class A Dance Halt De Ja Vu Class A Oance Hall Fantasy RanchlDiamonds Class A Dance Hall The Fare West Class A Dance Hall Caligula XXI SOB-Cabaret Control Aroa East SOB Cabaret Doll's House Class A Dance Hail Control Area West None This license was denied and status is pending litigation. 06/12/97 15:30 TX/RX NO.5591 P.019 • t. EXHIBIT O SQURCE Study of the Effects of the Concentration of Adult Entertainment Establishments in the City of Los Angeles. Prepared by Los Angeles City Planning Department, June. 1977. Adult Business Study - Impacts in Late Evening/Early Morning Hours, Prepared by Phoenix Planning Department, .tune, 1994. 1986 Staff Study in Support of S.O.S. Ordinance. Prepared by the City of Austin, Texas, 1986. Adult Entertainment Businesses in Indianapolis -An Analysis, Prepared by Department of Metropolitan Development Division of Planning, February, 1984. Adult Entertainment Study, Prepared by Department of C1ty Planning. City of New York. (November, 1994. 06/12/97 15:30 'rX/RX N0. 5591 P.020 EXHIBIT E PETER MALIN, MAI QUALIFICATIONS IN REAL ESTATE COUNSELING, VALUATION AND EXPERT SERVICES Peter Malin, a third generation real estate professional, has 19 years experience in the field. His experience ranges from being a Land Use Manager for the nation's largest private landowner (IPCO) to being a founder of Dallas' fourth largest Commercial Real Estate firm. Today, as Managing Director of The Malin Group, he oversees a small group of real estate economists in Dallas, Texas, providing advice and counsel to a national client base. His writings on issues in Real Estate have been published in a wide range of international journals, magazines ,and newspapers. He is the editor and publisher of a widely recognized newsletter, Capital and Investment Trends, reporting on real estate trends in the Texas markets. For four years Mr. Malin worsted for Intemational Paper Company, the nation's largest private landholder, in their development, land management and real estate divisions. He was involved in the valuation of timberlands as well as the development of recreational real estate such as ski areas and waterfront property. After spending four years as a commercial appraiser in Dallas, Texas, Mr. Malin became the Director of Real Estate Valuation for Laventhol and Horwath in their Dallas office. In this capacity, he directed a national practice which specialized in property valuation and counseling. He received the MAI designation in 1986 from the Appraisal Institute, and has testified in numerous courts during the past eleven years as an expert on real estate values. Mr. Malin's other experience includes appraisal, market research and counseling on commercial properties throughout the U.S., including, • Major urban developments including urban land, hotels, office buildings, parking garages and regional malls. . • Major recreational developments including hotels, resorts, conference centers, golf courses and residential communities. • Special use properties such as computer and telecommunication centers with clean rooms, marinas. NASCAR sanctioned racetracks, airplane hangers and school campuses. After leaving Laventhol and Horwath, he founded Newmarket Consulting Group and the parent firm. Newmarket Group Southwest, a full service commercial real estate firm. 06/12/97 15:30 TX/RX \0.5591 P.021 White at Newmarket, he established a national practice comprised of valuation, consulting and litigation services performed in over 35 states. Currently Mr. Malin is licensed and certified as a general appraiser in California, Massachusetts and Texas. He has held appraisal 11censes in over 20 states during the past five years. Mr. Malin is also a licensed real estate broker in the state of Texas. Mr. Malin is a graduate of the Kent School in Kent, Connecticut. He received his Bachelor of Arts degree in American Studies from the University of Denver In 1973. Later, he completed graduate level courses at New York University's Real Estate Institute, followed by study in Real Estate Investments and Taxation at a graduate level at North Texas State University. in 1988-1990, Mr. Malin developed and hosted the Annual Real Estate Education Conference sponsored by the Appraisal institute in Dallas.. He has lectured on intemational Appraisal issues and developed and taught the first Appraisal Course on "International Appraising" for the Appraisal Institute. In 1993, he lectured at the 2Oth World Congress of Fdddration Internationale de Geometric as well as the 6th Annual Valuation of Assets in Bankruptcy Conference sponsored by the University of Texas Law School. Mr. Malin continues to lecture on real estate topics for The Dallas Bar Association and the American Society of Appraisors. Mr. Malin has been hired . i expert witness in numerous cases involving real estate issues and valuation. He has testified or been admitted as an expert In local. state, and Foderal courts in Texas. Florida. Alahama, and Louisiana. Today, The Malin Group Real Estate Economists continues to serve a national client .base and provides real estate research. advice and counsel to its clients. Mr. Malin continues to publish timely articles on industry trends in national forums such as Urban Land Magazine and The Mortgage Banker. He also continues to publish the firm's newsletter, Capital and Investment Trends which covers the Texas real estate markets. 06/12/97 15:30 TX/RX P.022 r• � p3 l HOUSTON CITY COUNCIL CO"ITTEE ON THE.PROPOSED REGULATION OF SEXUALLY ORIENTED"BUSINESSES LEGISLATIVE REPORT ON AN ORDINANCE AMENDING SECTION 28-73 OF THE CODE OF ORDINA_VCES OF THE CITY OF XOUSTON, TEXAS; PROVIDING FOR THE REGULATION OF SEXUALLY ORIENTED COMMERCIAL E'dTER,PRISES, ADULT BOOKSTORES, ADULT MOVIE. THEATRES M-D MASSAGE ESTABLISHMENTS; AND MAXING VARIOUS PROVISIONS AND FINDINGS RELATING TO THE SUBJECT ® \ `e, ,i COMMITTEE ON THE PROPOSED REGULATION OF , SEXUALLY ORIENTED BUSINESSES EGISLATIVE REPORT . INTRODUCTION This Legislative Report has been prepared by the Committee on the Proposed Regulation of Sexually Oriented Businesses as a summary of the Committee 's work in preparing the draft ordinance which has been submitted to the Houston City Council for consid- eration. This Report briefly sketches some of the most signifi- cant aspects of the history -of the Committee, summarizes prior efforts at the regulation of sexually oriented businesses both In Houston and elsewhere, recapitulates the. principal themes heard in the public testimony taken by the Committee, and offers a brief section-by-section analysis of the proposed ordinance. This Report has not been drafted as a legal treatise on the regvlation of sexually oriented businesses. Certainly consider- able care was taken by the Committee to consult with the Legal Department at every step of the legislative process. Representa- tives of the Legal Department actually drafted the language of the ordinance pursuant to the directions of, and in consultation with, the Committee. However, the various legal issues raised during the Committee's deliberations are dealt with here from the layman'a, not . the lawyer's perspective, although it is the lawyer's perspective that undergirds the ordinance. The purpose V of this Report is to explain to members of Council, and to the Seneral public, what the Committee has recomr ended, and Why, in the plainest possible language. For the same reason, this Report is not tilled With footnotes, although all of the informa- tion is drawn from .tht materials and transcripts compiled by the Committee, and available as a matter of public record. ORIGINS AND ESTABLISHMENT OF THE COMMITTER. On September 27, 1982, Mayor Kathryn J. Whitmire of the City of Houston announced the formation of a special committee of Council Members for the purpose of determining the need for and appropriate means of regulating sexually oriented businesses in Eouston. This Council Committee on the Proposed Regulation of Fexually Oriented Businesses was composed of Council Members Dale M. Gorczynski, who represents District H, Council Member George Greanias, who represents District C, and Council Member Christin Hartung, who represents District G. Mayor Whitmire appointed Council Member Greanias to serve as chair of the Committee. The Committee was formed by the Mayor in response to growing community concerns about the proliferation of sexually oriented f.' 1 Sexually oriented Businesses pigs 2 •• businesses in Houston. This concern had been sumanPirized in a memorandum from Council Member GreaniAs to the Mayor on • September 20, 1982: 'Given its healthy economic climate and a legal onvironment that is, despite our identification with the Bible Belt, laissez faire on most sexual matters, Houston has long been an attractive environment for sexually oriented businesses. . . . 'Since Houston Is not zoned, these sexually oriented businesses are located anywhere and every- where, oftentimes near. residential areas, or near schools, - churches, or public parks. Their locations are frequently marked by garish or enticing signag e. The effect on the ability of neighborhoods and commer—cial areas to retain their identity after the opening of such businesses in the area has been extremely adverse. Koreover, the establishment of one such business in an area has often led to Ahe opening of another, in a rather­% Pe rverle example of synergy. Finally, there is a growing body of evidence to suggest that there are substantial links between at least some of these businesses and various forms of organized crime. .' The re-morandum from Council Member Greanias made clear that In his mind at least the issue was not one of morality, or of passing judgment on the lifestyle of any individual, but of reasonable land use controls versus the rights and privileges of the individual: 'The importance of the city's ability to deal meaningfully with the issue of sexually oriented businesses should not be underestimated. To s=.e it may seem a parochial question, relevant only to those who live in areas where sexually oriented businesses have located; to others it may appear just one afore Item on the agenda of those who are convinced that the city is in the terminal throes of sexual degradation on every front. 'But the problem imposed by these sexually oriented businesses is much broader in its implica— tions, and runs dirtctly to the heart of our present policies on land use. Does our dr.cision not to impose zoning carry with it the requirement that we not seek to moderate the influence of sexually oriented busi- nesses on our neighborhoods, whatever the consequences for the stability and quality of those neighborboods? t 4 • S*xually Oriented Businesses Pag• 3 Does our decision not to impose zoning tie our hands in dealing with the collateral criminal activity that apparently attaches to some of these operations?" At the same time, the initial memorandum from Council Member Greanias to Mayor Whitmire underscored a problem for which the Committee was to show great concern during the course of its deliberations: 'There is also another, Equally important question: Does our desire to protect the freedom and privacy of the individual, and to permit that indi— vidual to pursue his or- -her life without inhibition, Bean that we are proscribed from taking any actions that while not significantly infringing on those rights nevertheless sets a standard for the community as a whole?" It was these questions that formed the heart of the Committee 's inquiry during.,lts . one year of existence. The Co=ittee believes that these' 'qu;stions have been successfully addressed in the proposed ordina*ice that has been presented to Council for its consideration. • OPERATION OF THE C0104ITTEE ' Methodology. The Committee conducted its work in several phases. The first phase, which was carried out in November and December of 1982, involved a series ubl c herzin s in several parts of the city, as wellas at City all. There were three regional hearings and one hearing in City Council Chambers. The first hearing was held at Spring hoods Senior Nigh School on November S. 1982. The second hearing WAs held at Berean Baptist Church on November 22, 1982. The third hearing Was held at Bering Methodist Church on December S, 1982. The fourth and final session in this first series of hearings was held in City Council Chambers on December 15, 1982. (During the course of these hearings, several comments were made about choosing churches as the sites for some of the hearings. The Committee chose -these, locations not because of their religious significance, but because they had a history of being used for community affairs, their locations Were well known to the general public, and access to each such site Was convenient from various places around the city.) After the first set of hearings had been completed, the Committee went into executive sessions for a period of approxi— mately three inonths, m ate er of 1982 until the early part of April 1983. During that time, the Committee met with representatives of the Legal Department to review the testimony Sexually Oriented Businesses * , 1 Page C gathered in the initial hearings, 3s Well as to discuss the results of staff research on the subject . Among those partic- ipating in* this work were Messrs. John Whittington, Robert Collins , Charles Williams , and Adam Silverman from the Legal Department of the City of Houston, rent Speer, John Elsenhans and Michael McEachern from the office of Council Member George Greanias, Fred Harper from the office of Council Member Christin Hartung, and Nancy Brame from the office of Council Member Dale Gorczynski. Francis J. Coleman, Jr. , City Attorney for the City of Houston, also participated in these conversations from time to time. On May 6, 2983, the Committee published the results of its efforts: a draft of a proposed ordinance regulating sexually oriented businesses in the City of Houston. At the time that the Committee published its draft ordinance, further hearings were anr:ounced at which the Comnee wove soTfcit testimony on the ordinance as proposed. These hearings -- originally planned to be three in number -- were :,held .pn Wednesday, May 15, 1983, Wednesday, May 22, 1983, and. Thursday, May 24 , 1983, . in City Council Chambers. A fourth hearing, not originally planned, was held on Thursday, June 16, 1983. Based upon these further public hearings, the Committee then vent back into executive swulQn w'th its legal counsel and other staff to au: a furt er refinements in the or ce. The changes made pursuant e p c eozvnents are noted in the corm:ntary on the specific ordinance provisions themselves. An additional word is perhaps warranted on the decision of the. Committee generally not to meet with individuals and groups . apart from the public se ns. It was determined early on that an ordinance such as that being considered by the Committee, With its potential for controversy, should not be subject to private bargaining between individuals or businesses and members of the Committee behind closed doors. It was felt by all members of the Committee that it would be far more preferable to gather all testimony and evidence in a public forum, and then reflectively to consider the information without conferral with private parties. At the same tine, the Committee felt that its executive deliberations were justified in encouraging the free flow of discussion of ideas and sensitive concepts, knowing that the . entire work product would be subject to they public co=nent, review and debate inherent in the Committee's procedures and the processes of Council. The Committee also felt it imperative not to become subject o demands for quick action at the price of Working With delibeir= ate speed towards its goals. It is for this reason that the original date scheduled for submission to Council of a draft � Sexually Oriented Euainezz" Fag* S version of an ordinance was moved from January 25 to July 1v. (This date was pushed back several more times , and for similar • reasons, before the ordinance was finally submitted to Council . ) It was for this . same reason that additional hearings Were scheduled during the second phase of the public sessions. Likewise, the Committee decided to . request that the proposed ordinance be considered during the course of three readings, as contrasted with the normal procedure of suspending the three-reading practice and passing ordinances -- even those oftentimes having major effects on the city -- on an emergency basis in just one reading. Throughout its work, the goal of the Committee was to assure ample ventilation of all points of view, the thoroughgoing examination of all of the very difficult questions involved, and as complete an understanding as possible by all parties of the issues confronting the Committee and the solutions arrived at. Analysis of Testimony. The hearings held by the Committee on the Proposed Regulation of Sexually Oriented Businesses were arong the most extensive ,fiver .held by any committee of . the Fouston City Council. The hearings were open to all persons Who wished to testify, and the Committee made no attempt to limit the type of remarks made to the Committee or to censor those .remarks ' in any way. (At this point it should be noted that the Committee also accepted written comments from anyone, regardless of whether they testified in person. Such comments became part of the Com-ti.tee's public record as a matter of course.) Sowever, a \clear distinction should be drawn between the Committee's will- Ingness to permit full expression of diverse views. -- a willing- ness that is reflected in the transcript of the hearings -- and any wholesale incorporation of those remarks by the Committee Into the ordinance proposed to Council. Indeed, a chief function of the Committee Was to evaluate the testimony, and to set aside those comments seen as not gervane to the issues at hand or not dealing with problems , addressing instead those issues within the rightful purview of the city. Thus, although there were a substantial number of witnesses expressing a fundamentalist opposition to what those witnesses deemed obscenity and pornography, the Committee chose -- and in fact Dade clear during the hearings -- to focus its efforts on wand use issues rather than questions of pornography and ob- scenity. Similarly, a number of witnesses made comments adverse to the operation of gay bars. Again it was pointed out to those witnesses that such establishments were not necessarily within . the Working definition of •a 'sexually oriented business' (a definition that was modified over time .*as the ordinance Was further refined) and therefore not a subject in thEmselves to be dealt with in the proposed ordinance. Finally, a number of _ Witnesses made statements and proposals that would effectively ' Sexually Oriented Businesses Page 6 ban all sexually oriented businesses, as that phrase is broadly defined. The Committee rude it clear, both during the hearings •�,`l and afterwards, that it was not the intention of the Committee to r propose any ordinance that would be subject to a successful court challenge because it either directly or indirectly (or for that matter inadvertently) eliminated the opportunities for such businesses to exist in the City of Houston. With these comments by way of preface, it is useful to review briefly the principal points made during the hearings and _ later relied upon by the Committee in the drafting of the proposed ordinance. Further comments on the use of the testimony In the development of the various ordinance provisions can be found in the section by section analysis of the ordinance that concludes this Report. Th'Zifirst point made by many witnesses that seemed of 'Merit to the Comma tee was that sexually oriented businesses, while a nuisance and not necessarily representative of the desires or activities of a majority of-Houstonians, nonetheless have a right to exist. The rights of individuals were a theme in the testi- mony of a number of the witnesses. The willingness of Houstonians to 'live and let live* Was reinforced in the findings ' of a Rouston attitudes survey conducted by Dr. Steven Klineberg, of Rice University, along with others. Briefly put, that study concluded that Houstonians were loath to support restrictions on personal behavior. Among those witnesses whose testimony Was seen as most helpful by the Committee, the majority of such witnesses were generally solicitous of individual and minority rights, not anxious to irpose any community standard of conduct on unwilling individuals, and concerned with merely striking an appropriate balance between the needs of the community at large and the rights of individuals to do as they please. The n0 point made by many of the witnesses to whose testimony the Committee repeatedly . referred during its delibera- tions was that While these businesses might have the right to exist, protection of their rights could be consistent with effective regulatory restrictions that would minimize the adverse consequences of those businesses to adjacent areas and activ- ities. These witnesses -- many of them individuals who had direct 'personal experience of these businesses in their neighbor- hood, or representatives of civic organizations that had had many dealings With the problems created by such businesses - stated that while the businesses might have a right to exist , steps could be taken that, while not unduly restrictive of their operations, would offer some assistance to those neighbors and businesses surrounding the sexually oriented business. For instance, one gentleman living on West Alabama next to an adult bookstore, while agreeing that such businesses would probably Sexually Oriented Susiriesses Page 7 • continue to exist and that he Was resigned to that fact , also cited a series of untc:rard incidents occurring on or near his property that were directly related to that adult bookstore. His position ste_med to bs that while Council might not be able to rid him of the business, it might nonetheless take steps to amelio- rate the worst effects of that enterprise. The hi point made by many of the witnesses who proved most helpfu to the Committee in providing guidance for the drafting of the ordinance was that among the most important negative Effects of these businesses were the adverse eonse- quences on neighborhood protection and enhancement, and the consequent adverse effect on property values. A number of negative representatives and civic club participants re- counted nuyerou s in of problems that had been created by these, businesses for neigh5orhoods which were trying to preserve a neighborhood fabric. ecezal ze 1 es a r s with substan=' tial experience in areas r_ a by Sexually oriented businesses offered documented instances in which property values had been affected by the establisha:ent�of sexually oriented businesses, as well as information of a core +general . nature as to the effect of these businesses on the course of neighborhood development. In expert testimony by D . Anl ck of the Rice Center, given efore the "ull Council, this 'cause and effect' syndrome was again attested to. it 'seem-ed to be a consensus among both the lay` and expert witnesses that in neighborhood areas and areas of quality ccmmereial development, the establishment of sexually -� oriented businesses had a detrimental effect on property values, at least in part because t-%ey were perceived adversely to affect the quality of life -- including among other things such issues as suitability for family activities and stability of the neighborhood environment -- of the area. The ourt point z.ade by the witnesses whose testimony was most com=on zelied upor, by the Committee was that among the V host significant problem- created by the businesses were the ancilla_-y activities eiuscd by the clustering of businesses, as in the case of street pro: titution in the lower Westheimer area , and the problem of extes-*-or appearance. Even where businesses could not be forced to arc locate because of apparent preemptions In state law, most witnei ;es stated that reasonable. controls on signage and exterior appez Nance were required. The intrusiveness' of the signage and exterior features into the consciousness of the community was repea..�dly cited. It was also noted that although adults might tram themselves to ignore such signage, it Would be hard if nv . impossible to demand the same self-discipline from children. That children would be likely attracted to such advert .sing (which in at least one case ever: featured popular carto::n characters) was perceived as a significant problem in the expert testimony of one psychiatrist , " Sexually Oriented Businesses Page S Who cited information discussing the relations between exposure to such signage and psychological problems those children might subsequently experience. Th if point developed in the testimony and regarded as significant y the Committee Was that sexually oriented busi- V nesses are likely contributory factors to criminal activities that are encouraged as ancillary to those enterprises. This link between these businesses and related problems of criminal activity Was affirmed by the Chief of police and other represen- tatives of the Police Department, as well as by non-expert witnesses with long personal experience of living in areas where sexually oriented businesses a're located. To the Committee, this Issue of criminal activity occurring in the area of sexually oriented businesses was not a central problem, but rather . a concurrent question of somewhat lesser significance than *the land use issues. At the same time, however, the Committee felt that the testimony justified the conclusion that the criminal activity that does tend to occur in the vicinity of sexually oriented businesses, particularly wbe-rj .those businesses have clustered, has an adverse effect on property values. This adverse effect makes such activities a secondary concern, even though the principal focus' of the Committee .and the ordinance is on land use natters. The th oint brought out in the testimony -- particularly the testimony of city employees engaged in enforcing current statutes regulating such businesses, as well as private in- dividuals who have sought Iegal recourse against such businesses %A-- was the difficulty of achieving reasonable enforcement of the law. Part of this enforcement problem centers on the relatively limited arsenal of remedies available to home-rule cities under Texas law in such circumstances. - Some of the problem has been alleviated by cooperative efforts between cities and counties, as Is the case in Houston, where Harris County cooperates with the city by bringing suits whenever requested to accompany a city suit, thus bringing into play the padlock power of the county -- a power the city lacks. However, another part of the problem is that existing laws and ordinances are structured in such a way as to :sake it difficult to sustain an action against even an of- fender clearly in violation of' the law. For example, if an Injunction for 'abatement of a nuisance is brought against the owner of a particular sexually oriented business -- such as an adult modeling studio -- it is quite possible that by the tire the suit is actually brought to trial the ownership of the business has been transferred. The case-- is then thrown into limbo because the appropriate party or parties is (or are) no longer 'joined" in the suit. The lawsuit stalls while the - business continues in operation. Sexually Oriented Businesses page 9 ' nothor which the Committee thought relevant to its deliberat ons regarded those businesses which are thought to enjoy special protection under the First Amendment. This issue was perhaps one of the most difficult that the Committee faced. Despite whatever personal preference the members of the Committee , might have had, the clear mandate of the Committee was to prepare an ordinance that Was as legally defensible as possible. After ' considerable deliberation, the Committee accepted the contentions of those lawyers who argued that to lump First Amendment and all* other businesses into one indistinguishable category for purposes of regulation would probably be unwise and cause the ordinance to be submitted to substantial challenges. This is not to say that the arguments of the lawyers are unquestionably correct. Nor is it to say that following the recommendations of these lawyers represents what the Committee believes to be wise public policy. But what the Committee did was to remember continuously its principal charge, and to set aside its personal preferences and opinions in favor of proposing an ordinance with a maximum likelihood of being upheld in court. While a variety of other'i'ssues and problems were raised in testimonv taken before the Committee, the foregoing points seer.�ed , to members of the Committee to be the most significant and worthy of attention. The manner in which this testimony was translated into proposals for legislative action will become clear in the Section by Section Analysis that follows below. ' PRIOR BOUSTON ATTEMPTS TO REGULATE Early Efforts. The proposed ordinance does not represent the first attempt by the City of Houston to regulate seru ally oriented businesses. As stated in HOUSTON: A HISTORY, by David G. McComb: 'In 1840 a city ordinance provided a fine of not less than DSO and a jail term of ten to thirty days for any Woman committing lewd actions or exhibiting herself in a public place in a style 'not usual for respectable fe-males. ' Brothels within the city limits could not be located closer than two squares to a family residence. A supplementary ordinance in . 1841 required a $20 bond for a ' female of ill fame' found in a public place after 8: 00 p.m. in order to ensure good behavior. Although perhaps not a prostitute , one of the most notorious female characters from the period was Pamela Mann, an expert at firearms, knives, horseback riding, and profanity.. She appeared in court at various times charged with counterfeiting, forgery, fornication ,__ larceny, ' and assault. According to Willirim Ransom Hogan, she ran the Mansion house Hotel in such fashion that 'Mrs. Vann and her 'girls' achieved a satisfying success ' � Sexually Oriented Businessjs Page 10 • providing Houston with female companionship of a 'robust •and none too virtuous nature. ' " Universal Amusement. A more recent and perhaps more relevant attempt to regulate sexually oriented businesses in Houston occurred in 1977, with the passage of Ordinances 28-65 and 36-14 . Ordinance 28-65 amended a prior ordinance to make it 'unlawful for any person to operate or cause. to be operated an adult commercial establishment within two thousand (2000) feet of a Church, school or other educational or charitable institution. " Under this ordinance, an •adult commercial establishment* was defined as 'any business or enterprise hav as a_ubstantial or in trade or activit the sa e, distribution, lending, rental, exh on, or o er viewing of material depicting sexual conduct or specified anatomical areas for consideration." Ordinance 36-14 made it unlawful to operate within two thousand (2, 000) feet of a church, school or other educational or charitable institution any motion picture theatre 'Which exhibits a film that explicitly depicts . . . contact between any part of the geni-tals Qf-.one person and the genitals , mouth or anus of another person; . . . contact between a person's r+outh, anus, or genitals and the mouth, anus, or genitals of an animal or fowl= . . . manipulation of a person's genitals; defecation; or urination." Both ordinances required all businesses coming under the ambit of the law to bring themselves into compliance within thirty (30) days of passage of the ordinances. (A third ordinance, not as significant, dealt with a redefinition of 'public amusement park' and 'places of public entertainment and amusement. "). The 1977 ordinances were success Ul y challenged in a 1977 case styled Universal Amusement Co. , V. Hofheinz. In an opinion handed down Octo er , 977, Judge Ross N. Sterling granted the request of plaintiffs for declaratory and injunctive relief. At the conclusion of the trial, the Court orally declared the ordinances unconstitutional on their face, permanently enjoined their enforcement against plaintiffs , and severed plaintiffs ' claims .for punitive damages and attorneys ' fees. For purposes of considering the ordinance now being proposed by the Committee, it is instructive to consider the grounds on which the 1977 ordinances were struck down as unconstitutional by the Court. Although at least one of the attorneys appearing before the Committee during its second session of hearings alleged that no ordinance could be fashioned that would meet the objections made by the Court, the Committee is of the opinion that it is indeed possible to draft such an ordinance. In summary, Judge Sterling held the ordinances unconstitu- tional on grounds of vagueness, stating that this . alone Would be Sexually Oriented Businesses Pas• 11 . . sufficient grounds to void the ordinance on grounds of unconsti- tutionality. However, he gent on to say that in his opinion there were other constitutional defects, namely that the ordi- nances were violative of the First and Fourteenth Amendments to the Constitution by abridging the freedoms of speech and press guaranteed therein, that they denied the plaintiffs the equal protection of the laws as guaranteed by the Fourteenth Amendment, and that they denied plaintiffs due process of law as guaranteed by the Fifth and Fourteenth Amendments. Va eness. The Court found that the challenged ordinances violated basic tenets of . constitutional law. It cited the general .rule that whenever a penal statute is involved -- as was the case here, since a fine of up to $200 was to be imposed for violations of ordinance 28-65 -- the terns of that statute "must be sufficiently explicit to inform those who are'subject to it what conduct on their part Will render them liable to its penal- ties' and that 'a statute which either forbids or requires the doing of an act in terms so vague that teen of common intelligence must necessarily gvess at -,its -refining and differ as to its application violates the .first! issential of due process of law. " However, the Court was quick to point out that even more ' than the usual rule requiring exactness in the dr,:fting of a penal statute was involved in the case at band. The ordinances In question were not only penal, but also restricted the exercise of First Aaendrrent rights. While the Court did not hold that no such restrictions on First Amendment rights could ever be suc- cessfully enacted, it did state emphatically that in such in- stances even stricter standards than those required of ordinary penal statutes would be called for. The plaintiffs in Universal Amusement claimed that the ordinances under examination failed both the general test of strictness required of any penal statute, not to mention the stricter standard applied when a law restricting First Amendment rights are in question. With this argument the Court agreed. Especially troublesome was the lack of anv definitions whatsoever for such words as 'Church, ` 'school, " or 'ot er a ucational or charitable ns i ution. ' Simi works 'sbstant ai" and ' „gnificant' as uS± tQ,rrQdi.f�•�Tn o� t� st�cic {� ,1T�,de or activity" was found by tha. Court to be '_hopelessly vague. " As the Court pointed out: 'Any theater which ever exhibited 'X or R' movies might be covered from time to time depending on the neaning of the words 'substantial ' and 'significant. "The Court noted that one of the asserted purposes of the ordinances was the protection of children, but held that this Sexually Oriented Susinessev Page 13 to live in a particular section of town so that a watchful -eye could be kept on them. To paraphrase The Mikado, the legislative • remedy should fit the problem. Another posse a way of looking at it is that the cure should not be worse than the disease. In Universal Amusement the Court found that there was not just over rem t , but substantial overbreadth. • The Court seemed to be of the opinion that the attempt to regulate busi- nesses Which dealt in material depicting 'sexual conduct, or "specified anatomical areas' failed the overbreadth test because It raised the distinct possibility that the ordinances would *deter those who normally deal with such materials from exercis- ing their right to sell or exhibit them because (1) what they sell or exhibit might fall within the scope of the ordinance, and (2) their dealings with such material might result in the brand- ing of their businesses as 'adult commercial establishments. " In the opinion of the Court, the ordinances being challenged had the potential to effectively prohibit all theatres from shoving •R" rated movies and medical bookstores from selling books on anatomy or physiology which depicted.-rudity or partial nudity. -Coupled with the fact that the ordinances as written wire not in the opinion of the Court subject to narrowing by state law decisions, the ordinances were found to be consequently overbroad and " therefore constitutionally infirm. Protected Speech. The ordinances that were the subject of the lawsuit in Un versal Amusement attempted to regulate to some extent activities normally' considered as under the ambit of the First Amendment. Therefore one of the issues was whether the ordinances abridged freedom of speech in any unwarranted fashion. The Court noted that there could be regulation of such speech. But, the Court stated , such regulation must be reasonable. In the case of the ordinances at issue, the Court held that the administrative officials charged with enforcement of the ordi- nances were left free to exercise what the Court characterized as 'virtually unfettered discretion. ' For instance, under the ordinances it was left to a policeman to determine what was a •church• or 'school.' Such breadth of discretion was found by the Court to be unacceptable in ordinances which proposed to regulate what were considered First Amendment activities. This concern for protected speech was heightened by the fact that as a practical matter the ordinances did not merely limit - the time and place and manner where the activities at issue could be engaged in. Instead, in application the ordinances banned all such activities from the City of Houston, at least as far as the Court could fee under its review of the facts. Under such circumstances, the Court stated, it was impossible to say that_ _ these particular ordinances represented a reasonable restraint on the First Amendment activities at issue. ' Sexually Oriented Businesses Page 14 & . Equal Protection. The Court in Universal Amusement also stAied that while a city c8n treat different c asses of people in - different ways, the difference in treatment must be based on some rationale directly connected with the appropriate exercise of municipal power for accepted purposes. The question in the particular case Was whether the city, in treating the businesses at issue differently than other businesses, was doing so for reasons that were grounded in acceptable public policy consis— tently applied. The Court also noted that of some importance would be whether the state had already enacted legislation to deal with the public policy issues stated as the grounds for the ordinances. In Universal Amusement, the Court found that the purported purpose o protecting c i ren and permitting them to be raised In a suitable atmosphere, while perhaps worthwhile, did not call for the expansive ordinances that had been attempted. Moreover, the Court toted that there were already a substantial number of laws on the books at the state level dealing with the problem of protecting children from slZcb activities. The Court distin— guished the Detroit ordinance, - ori which Houston had relied, by noting that one of the primary purposes of that ordinance was to preserve the quality of urban life. Given these facts, the Court ' seemed to believe that the City of Houston had gone too far in its ordinances, given the goals it was seeking to accomplish. Due Process. The final issues dealt with by the Court in Universal Amusement was that of denial of due process. The Court round t at while some exercise of municipal authority in this area might be justified, the ordinances at issue went far beyond what was permissible and in effect deprived persons of their property without adequate reason or compensation. First, the . ordinances effectively banned such businesses from the* city even though it purportedly only limited their ability to locate in certain areas. Second, the ordinances were drafted in such a way that even if- a business could find an acceptable location, the- business would forever be in jeopardy of losing its authority to operate if a church or school roved within the prohibited distance. summary. In reviewing the decision of Universal Anvse-went for purposes of its work in drafting an ordinance proposal , the Committee kept several points in rind with regard to the fore— going discussion. First, businesses that are argued as under the ambit of. the First Amendment enjoy special protection. But even the Court in Universal Amusement seemed to indicate that such protection is not a solute and that reasonable regulation is permissible. . ' Therefore,, the Committee took special care in all - - matters of regulation affecting First Amendment businesses to exercise what the Committee deemed prudence and_ restraint, • Sexually Oriented Businesses Page 16 Fifth, the Committee has provided in the ordinance for several avenues of recourse for any party that believes himself - aggrieved by administration' of the ordinance. At the same time , however, the ordinance has throughout been designed to limit the discretion of the administrative officers In charge of the ordinance to minimize the possibilities for such abuses of discretion that would require redress. Sixth and finally, the Committee has spent considerable. tin, e reviewing computerized maps to give reasonable assurance that while the ordinance may be restrictive in absolute terms of locations available to sexually oriented businesses, it is not prohibitory in what it seeks to accomplish. After reviewing a series of maps developed In accordance with the distance formulas set forth in the ordinance, the Committee feels that there is reasonable evidence to support the conclusion that such is indeed the case. REMEDIES ADOPTED BY OTHSR CITIES Houston is not the only American city to have had to deal with the problem of sexually oriented businesses. Other munic- ipalities such as Detroit, Roston, Chicago, Dallas, Los Angeles, ' and Santa Maria, California, as well as regional governments such as Fairfax County, Virginia, have also grappled with the issue. Although Houston is unique as compared to these other governments with respect to the zoning issue, there are nonetheless lessons that can be drawn from comparing the experience of other municipalities to our own. Detroit. The efforts of the city of Detroit to regulate sexually oriented businesses found their roots in attempts made In 2962 to combat the skid-row effects occurring in certain neighborhoods. Ultimately, the city in 1976 amended the anti-skid row ordinance developed out of that earlier effort to cover sexually oriented businesses. These new regulations were upheld by the Unit-ad States Supreme Court. The key events of this ordinance provided the following: (1)- Sexually oriented businesses were explicitly defined; (2) Sexually oriented businesses were prohibited within five hundred feet (500' ) of an area zoned residential; (3) Sexually oriented businesses were prohibited from locating within one thousand feet (1000' ) of any two other regulated sexually oriented businesses; and • Sexually Oriented Businesses page Is mixed into the general run of office buildings and retail *and wholesale operations. Substantial residential housing or resi- dential activities were not part of the fabric of the neighborhood. The decision to create a Combat Zone proved advantageous to the city of Boston for a number of reasons. First, the creation of.a single such zone where all businesses Were treated alike avoided any charges that the Boston regulatory scheme violated the equal protection provisions of the Fourteenth Amendment . Second, by creating a particular zone where such businesses could be established without question, the City avoided the sometimes difficult issues involved in trying to define what would or would not be considered a 'sexually oriented business.' Finally, the city was under this scheme able to avoid the difficulties and confusions that can sometimes be attendant upon any system involving licensing. In addition, the Boston approach entailed lower administrative costs, gave the city firm control over the growth o: the sexually oriented businesses industry, and provided city officials with a controlled environment -- essentially a laboratory -- in which to 'nvestigate the effects of sexually oriented businesses on their surrounding environment. It is interesting to note that while the Boston plan has met with ' reasonable success, it has not been copied by any other American city. While the Comittee was urged to consider the combat zone concept for Houston, the -proposal was discarded at a rather early point in the deliberations. The principal reason for rejecting the concept was the geographical difference between Boston and Fouston. Boston proper is a city of fairly limited land area . Houston currently contains approximately 560 square miles. While . a single combat zone might work in Boston, given its limited size, the Committee concluded that r defensive combat zone approach in Fouston would require at least several such areas throughout the city. Otherwise, those located at a distance from the single combat zone might argue that their right of access to sexually oriented businesses had been wrongfully limited. The other problem, of course, would be that of locating sites for these multiple combat zones. Although several witnesses advocated this approach to the Committee-, no witness Was ready to volunteer his or her area as a candidate for such a zone -- in itself eloquent testimony to the perception of the effect of these businesses on their surrounding areas, a perception that ' expert witnesses would shoe appears to translate into adverse consequences for property values. exually Oriented Busl6exsea Age 19 Chicago. In 1977, the city of Chicago amended its municipal . ) to Include new regulations on adult-use businesses. The :s • -iicago ordinance generally followed the Detroit legislation. �- Tne basic strategy of the regulatory scheme could be broken into 5f three parts : first, there was a strong effort to define the ie : irpose and Intent of the ordinance; second, there was a good id utal of effort put into defining sexually oriented businesses; and third, there was substantial time spent to carefully define • ie type of regulation and enforcement being adopted. is ae The Chicago ordinance also had some features not found in ss ie Detroit ordinance. First, registration standards were imposed re __fat required nine types of responses, mostly concerning owner- he ship. Certain restrictions, though vaguely defined, were placed to � i exterior displays. On this particular point, the ordinance al 1 :ovided that 'no adult use shall be conducted in any manner that ng permits the observation of any material depicting, describing or a 3 -lating to 'specified sexual activities' or 'specific anatomical i -eas ' from any public way or from any property not registered as an adult use." This provisiRn. was under the ordinance applicable os t-) *any display decoration, sfgn, 'show window, or store opening. " ct I .nally, fines of not less than fifty dollars ($50.00) nor more he than two hundred dollars ($200. 00) Were imposed for each offense ' he ' -- with the provision that in the case of a continuing offense to t day during Which the offense continued could be -counted as a he xvk,rate ease. ng Dallas. The city of Dallas adopted an ordinance regulating sexualloriented . businesses in 1977. Interestingly, While ax Dallas is a zoned city, this regulatory ordinance was not made i- I rt of the zoning ordinance, but rather was incorporated into ed t e general municipal code. The Dallas ordinance, like that in of Chicago, was closely modelled on the. Detroit law. Under the Dallas ordinance, the distance requirement between of sexually oriented businesses and areas zoned residential was one 5- t`ousand feet (1000' ) . This distance Was measured as a straight ice l ne from property line to property line of the two conflicting :ue structures without regard to intervening structures. It is !nt i^structive to note that this one thousand foot (10001 ) re- Vo s riction was struck down due to lack of evidence as to the in ieteriorating effects sustained by neighborhoods as a result of so .he Interposition of sexually oriented businesses. 'p e. ' •P• Los Angeles. In 1978, the city of Los Angeles imposed a -.he shirty 30 ay- moratorium on the establishment of new sexually A- tented businesses in order to provide an opportunity for the :_tom to draft a new and comprehensive ordinance regulating the .r try. (It is not clear whether such a moratorium would be ✓ i._assible under recent antitrust decisions involving the A h • Sexually oriented Businesse-s page 22 to pass legislation to assure public sAfety, health, morals and other related goals . The city also bass its right to regulate ' as proposed in this ordinance under specific grants of authority from the state, including Art. 1175, 522 (authorizing regulation by municipalities of places of public amusement) , Art. 1175, 523 (authorizing licensing by runicipalities of businesses suscepti- ble to the police power) , Art. 1175, 524 , (authorizing municipal regulation of billboards and other exterior signage) , Art. 1175, 534 (authorizing municipalities to exercise the general police power) , and Art. 2372w (authorizinq municipalities to regulate businesses Whose principal activity is the offering of services intended to provide sexual stimulation or sexual gratification) . The Committee has proposed that Council exercise the foregoing powers on the basis of its findings generated through the hearings held by the Committee and Council between Novem- ber 4, 1982 and October 25, 1983. These findings have already been discussed at so=e length in the foregoing subsection titled 'Analysis of Testimony. ' Tine Legislative Findings. section of the ordinance briefly su=arizes•tthose trindings. • Article I: Definitions. The definitions included tinder Article I have been carefully crafted to conform with- the -Commit- ' tee's intention to regulate as effectively as possible, Without infringing on federal constitutional guarantees, areas preempted by state legislation or the operation of legitimate businesses. Although most of the definitions are by their nature self-evident, comments on some of the definitions .are warranted to underscore the balance which the Committee constantly sought between effective regulation on the one hand and , on the other, the limits placed on municipal action by federal constitutional guarantees and state law. 'Enterprise.* for exa--ple, refers only to those establish- ments whose raiox-Imsines involves products or services intended to provide sexva stirulat on or gratification. Inclusion of the Word 'major' is iAt&n§ded J.Q exem2±L- out sum busi esses as conv - n ence stores whiChor a ' z her s mi ar Such magazines As -a -relatively small part of their oyera' opera- tion. In addition, specific exempt ons are granted to several categories of businesses. Adult bookstores, adult movie -theatres and businesses licensed to sell alcoholic beverages are exempted because of apparent preemption by state law; massage parlors are omitted because they are covered by another city ordinance. (It should be noted, however, that although the foregoing businesses are not defined as 'enterprises,' and therefore not subject to the locational and permit requizemr-nts of the ordinance, they still are subject to specified provisions of the ordinance.) Businesses licensed by the state, such as those employing h Sexually Oriented Businesais Page 23 psychologists or physicians are also exempted, as are businesses whose major activity is the selling of clothes . o The definitions in Article I also offer good examples of the consistency in reasoning which the Committee sought to achieve in its work. For instance, it has already been noted that a major theme in the testimony heard by the Committee concerned the deleterious effects of sexually oriented businesses on children, and the consequent problems caused for neighborhood stability and the. quality of life, as reflected in property values. For this reason, schools were placed within the category of protected establishments near which such sexually oriented businesses cannot be located. (It was this same general line of reasoning namely, the need to protect areas - frequented by children and used for family oriented activities , -- that led to including churches among the protected activity categories.i However, it was also concluded by the Committee that at some point a person, even though still in school, matures to the point where the city can no longer reasonably claim the right to protect him or her from such businesses. WM 4=the_ age at which maturity may be achieved by different individtia-ls may vary, it was concluded by the Committee that a reasonable cutoff age as a general rule would be seventeen (17) , coinciding with earliest usual age of ' � graduation from secondary school. For this reason the definition of 'school" (Article I, Section V) is limited 'to public and private schools used for primary or secondary education.' Another problem the Committee faced in drafting the ordi— nbnce proposal was to minimize opportunities for circumvention of the ordinance. Concern was expressed by all members of the Committee and by the Legal Department, that some sexually oriented businesses, eager to escape the locational restrictions placed upon them, might start showing movies and argue that they Were in fact 'Adult Movie Theaters' protected by state law and not subject to municipal restrictions on location. The Committee has sought. to deal with problems of this sort by careful drafting, as in the definition of 'Adult Movie Theatre' , Which specifically requires that such theatres have tiers or rows of seats facing a screen or projection area , making it clear that simply setting up a projector and a screen will not make a modeling studio a movie theater under the ordinance. Article II. Permit Re fired. Article II of the ordinance - establIshes tat a sexually oriented commercial enterprises within -the Houston city limits must obtain a license from the Director of Finance and Administration before they can operate. Article III. Permit Applications. The requirements Which_ must be fulfilled beTO-re a permit may be granted to a sexually oriented commercial enterprise are set out in Article III . The Sexually Oriented Businesse's 4 page 24 list of information to be supplied, which shall be submitted- to the Director of Finance and administration, was taken for the host part from the present ordinance 28-73. This was decided by the Committee on the basis of issues raised during the hearings . For instance, a number o: witnesses cited the problems inherent in tracking down the person ultimately responsible for a partner- ship or corporation= hence, the Committee has reco=ended a o di closures which, while not onerous to the business enterp rise, wil provide information adequate for reasonable enforcement of the ordinance should its provisions subsequently be violated. The application requirements also call for submission of relevant state-issued documents pertaining to . the authorization of the enterprise to do business within the State of Texas. The application form shall also include a written declaration that etll information contained in the appli- cation is true and correct, and that the applicant is in con- formity with all provisions of the ordinance; violation of these provisions will be grounds for suspension or revocation of the permit. Article IV. Permit Fee. ' The I ordinance establishes a permit fee of $350. 00 for each permit application. The aunt of this fee was based on testimony by William R. Brown, .Director of ' Finance and Administration, which fixed the cost of processing each such application at within Ten Dollars ($10.00) of the $350. 00 figure later adopted by the Committee. Since the $350. 00 represents the cost to the city of actually Processing the application, regardless of Whether the permit is approved or disapproved, the fee is payable at the time the permit is re- quested and shall be nonrefundable. The permit shall be good for one year from the date of issuance, and shall be renewable annually; the $350. 00 fee for each renewal of the permit repre- sents the costs of each year's review of the permit application and the ongoing costs of administering the regulations estab- lished by the ordinance, including the costs of enforcement through inspections of the astablishmants by city personnel. It should also be noted that just prior to submission o: the proposed ordinance to Council, a general review of all fees and charges of the City of Houston was undertaken. This general review, which will generate the most reliable direct and indirect cost data in the city' s history, may produce a different figure - for the processing of the permit. If so, an adjustment (most likely upward) Will have to be made in the permit fee. At the time of - this writing, however, the $350. 00 figure still repre- sents the best estimate of the actual cost of processing the application and administering the regulations proposed under the ordinance. . ' • Sexually Oriented Businesses " Page 25 Article V. Issuance or Denial of a Permit. Assuming the submitteB application conforms to the requirements of the ordi- nance, the Director of Finance and Administration must within twenty (20) days issue a permit to the applicant. Although there are several grounds on which an application for a permit will be denied -- the failure to supply all of the -required information, for example, or the giving of information that is knowingly false, fraudulent or untruthful -- the most important of these reasons focuses on certain distance requirements that must be met In the location of sexually oriented commercial enterprises. (Again, exempted from these locational restrictions are adult movie theaters, adult bookstores, businesses sidlling alcoholic beverages, and massage parlors.) Specifically, the ordinance would require that all subject businesses be located not less V than 750 feet from a church or school (both terms* being defined in the ordinance) and not less than 1 ,000 feet from each other. (In the event two such businesses are closer to each other than 1 ,000 feet, then Article VI, Section B provides that a permit shall be issued to the applicant 'having the longer period of enterprise ownership at the 4sme • %pation for which a permit is sought.') -'- A third distance requirement set out in Article V has been ' characterized as the 'residential concentration' test. A circle with a 1 , 000 foot• radius is drawn around " the location of the proposed business. ' If within the circle thereby determined seventy-five percent (75%) or more of the tracts are residential (that is, if seventy-five percent (751) or more of the tracts were coded as residential, in the city' s Metrocom computer) , then the business could not locate there. Conversely, however, should land use in the area become more commercial , such that the percentage dropped below seventy-five percent (75%) , the business might under a new permit application be granted the right to operate at the formerly unacceptable location. These distance requirements are good examples of the Commit- tee's efforts to analyze the information preserved during the public hearings, to distill from that information the real nature of the problems to be addressed and to then develop solutions logically and consistently related to the actual problems. For example, while many who testified acknowledged the right of such businesses . to exist, and while many of these same witnesses expressed solicitude for the rights of those who might want to avail themselves of the goods or services offered by such busi=, nesses, the same witnesses also expressed strong concern about balancing these considerations against the effects such busi- nesses might have on children and the fabric of the family unit , as well as property values and the quality of urban life. • In reviewing the testimony, the Committee concluded that this-- concern was justified -- particularly in light of some of the ' Sexually oriented Busihesse's page 26 expert testimony offered -- and hence created the 750 foot rule with respect to churches and schools which were viewed as centers for family oriented activities. A second set of problems brought out, in the hearings is the detrimental effect that the ' clustering Jof such businesses can have on a surrounding area. `testimony from the Chief of Police , as - well as information supplied by residents of areas where concentrations of such bisinesses are unusually high, repeated the point that the clustering of such businesses exacerbate the problems they create by developing an atmosphere in which a y *secondary markets of illicit activities -- both sexual and otherwise -- are encouraged. .Although most witnesses agreed that the location of such businesses could not be restricted in such a way as to effectively eliminate them altogether, most witnesses Including the Chief of Police -— stated that in their view a 'separation" or 'nonclustering' provision would alleviate some of . the problems normally associated with the operation of such businesses. - In reviewing this testimony, and in considering the experience of cities such as- Detrpit, the Committee concurred with the judgment of the wl nesses and therefore included a requirement regarding spacing of •the businesses from each other. A third set of problems identified during the hearings was the difficulties created when these businesses locate in areas that are1 rimarily residential in character. These problems are aggravated Houston because of thwack of toning laws; in the absence of any ordinance, only deed-restricted developments are allowed some measure of protection and Even that degree of protection stops at the border of the deed restricted area . Most Witnesses who testified on this point before * the Committee acknowledged that there was little likelihood that zoning would be imposed in Houston. At the same time, however, many of these same witnesses indicated their belief that reliance on deed restrictions as the sole method of protection was woefully inadequate, particularly since so many of the areas most severely affected by the problem of sexually oriented businesses Were ones in which deed restrictions had irrevocably lapsed, or in which such restrictions had never existed at all. In reviewing the testimony on this point, the Committee concluded that there were sound policy reasons for- the city to provide greater protection for areas of high residential concen- tration from the adverse consequences of too many sexually oriented businesses. Concern for children and family-related activities already cite a ove With respect to the distance requirement from church and schools was likewise a factor here. Concern was also felt for the need to maintain some degree of stability in residential Areas so as to provide at least "a ��' measure o corresponding stability the property tax bare. y Sexually Oriented Businesse's Inge 27 Finally, concern was expressed that the protections afforded deed restricted areas, however minimal, ought to be extended by providing singular (if not the same) protection to any area With a high concentration of residential usage. (Although the Committee considered extending the same sorts of proections to areas less residential in character, it Was not thought that the sake policy considerations applied With equal force as areas became *less residential.') In evaluating these distance requirements, the Committee also remained sensitive to concerns that were raised during the hearings by opponents 'of the ordinance. For instance, at least one of the lawyers representing some of the businesses that will be affected by the ordinance argued that the 'residential concen- tration' test was tantamount to zoning. After careful considera- tion the Committee respectfully disagreed. To the Committee, there is a great deal of difference between an ordinance creating a zoning commission Which then proceeds to establish use cate- gories for entire areas of the city and an ordinance which merely requires that if the market,,operating freely, has resulted in an area that is 'predominantly" Yeaidential' in character, then certain businesses cannot locate within a fixed distance of that area. In the first instance, the city dictates land usage and ' only a change by- the city in the ordinance fixing such usage will permit -deviation from that rule. In the second instance, the city merely provides that in the event usage in a particular area should through operation- of the free market develop along certain lines, then certain restrictions will be involved. Conversely, should the market dictate a change in overall usage of an area (as in a case Where an area formerly predominantly residential became commercial) , then the city restrictions would be lifted. The difference might best be characterized as that between active and passive -- or 'reflective' -- land. management. The Committee also took quite seriously the concerns ex- pressed during the hearings by some representatives of the affected businesses that determining whether a proposed location would conforms With the ordinance would prove unduly burdensome and costly. Rowever, the Committee believes that introduction of the Met.rocom computerized mapping system into city government effectively answers. this concern. As stated in testimony offered before the Committee by Ken Strange, the Yetrocom administrator, It will be possible, for a minimal charge which reflects the actual cost of computer and clerical time, tb determine in advance .-- and within just a few hours -- . whether a particular proposed site is permissible for a sexually oriented business . Under the circumstances, the Committee concluded that the 're s- idential concentration" test Was not only a suitable remedy for some of the problems adduced durinq the hearings, but also that £exually oriented Businesses rage 28 • the test would not place an undue or unfair burden on the businesses to be regulated. A brief corwent should be made With respect to the appeAls process established to provide recourse from permit denials by the Director of Finance and Administration. While an initial appeal hearing before the Director is provided for in the ordinance, the Committee felt that given the nature of the issues Involved, and the desire to assume that the ordinance in both theory and practice did not operate to abuse individual rights , an appe Tto Council should also be provided. This has been done In Article V, Section E. Article VI. Existing Ent e rises. The method of transition from the present situation to that under the new ordinance, and specifically the treatment of previously existing businesses Lander the new ordinance was the subject of considerable thought by the Committee. The results of that lengthy consideration of the transition problems are embodied in Article VI. Section A of Article VI provides the timetable under which businesses must conform with the ordinance. For this purpose the ordinance divides the City into four quadrants; compliance with ` . the terms and conditions of the ordinance are phased through use of these quadrants. Section B provides that where two subject "', businesses are within 1,000 feet of each other, that business having the longer period of ownership at the same location shall receive the permit, while the business with the lesser ownership period at the same location shall be denied a permit. In the opinion of the Committee, this approach seemed the fairest Kay to treat the difficult problem of dealing fairly with businesses too cloie together to comply with the ordinance , Without abandoning . entirely the attempt to enforce the ordinance against existing businesses. The Committee chose to remain• consistent- with this •prior in time, prior in right' approach by providing that where \ t a subject business is closer than 750 feet to a church or school , V that business Will not be required to abandon the location if it can be shown that the period of enterprise ownership at the same location exceeds the length of tine the church or school bas been located at that site. Sections C and D of Article VI deal with the difficult issue \ of grand-fathering versus amortization of existing businesses. The Committee decisions with respect to the issues raised by this question again exemplify the careful attempt to base legislative action on the relevant information gathered during the hearings process as well as the desire of the Committee to offer the maximum possible protection to individual interest$ while also dealing effectively with the need for action testified to in the hearings. Sexually Oriented Businesse's ' Page 29 • During the hearings, it became evident to the Committee that the problems created by sexually oriented businesses had been allowed to persist for so long that merely addressing the problem 'frora here on out" would not be adequate. prospective legis- lation would do little or nothing to alleviate .the current serious problem caused by businesses already existing. The Committee therefore concluded that existing businesses should come under the ordinance; for this reason the Committee rejected grandfathering of existing businesses and determined that amor- tization vould be the appropriate approach. At the same time , bowever, the Committee recognized that Even if existing busi- nesses were to be brought under the ordinance, this could not be done in a wa that would ignore the investments that had been made In the businesses (and therefore prima facie unconstitu- tionally deprive persons of their property Wit of ut just compen- sation, ) . . . The Committee understood -- and if it had not, it certainly Would have after having been drilled on the point umerous times byL re v e Le al Department -- that even under an amortization approach the amor za on period could not be so short as to eftectively deprive the owners of the rubjeet businesses of their property interests without just compensation. Sensitivity to the need • for an adequate amortization period was frustrated, however, by the lack of evidence in the nearing record on which the Committee could base its decision as to what constitutes an appropriate amortization period. No &ember of the affected industries, nor owners or representatives of affected Individual businesses, appeared before the Committee for purposes of offering testimony on this point. (One owner of an adult bookstore did suggest, by written correspondence to the Commit- tee, that the amortization period be extended -to ten (10) years; however, the Committee believed that this suggestion was un- realistic. Certainly the recommendation was not supported by any factual data . ) ' In the absence of such testimony, the Committee found itself in a difficult position. While the Committee admittedly wished to legislate the shortest possible period within which subject businesses must come under the ordinance or, alternatively, abandon their present locations, the members did not want to Impose a time limit that , based on actual numbers, was unfair. The problem, however, was that the numbers were not available because the relevant affected businesses had chosen not to supply them to the Committee. (The Committee briefly considered using the subpoena powers available to Council under the Charter when considering such legislative matters, but decided against doing so for reasons explained below. ) bexually Oriented Susinesse's Page 30 In the end, the Committee devised ordinance provizions ' -- Sections C and D of Article VI -- which deal with this dilemma in ' an effective, fair and practical way. Section C of Article VI provides that if an existing business cannot qualify for a permit under the ordinance, then that business shall terminate its operations at that particular location within six months after the business receives notice from the Director of Finance and % Administration of its ineligibility for a permit. However, ✓ should any business so notified believe that six months will be Insufficient for the business to recoup the investment represented by the enterprise, then the avner or owners of that business shall have the right to petition the Director of Finance and Administration for an extension, which can be as long as the Director determines appropriate based on the Evidence presented. The Committee believes this approach adequately answers the dilemma presented by the lack of factual testimony in the record as to the earning capacity of these businesses. The provisions set forth a reasonable minimum time period for compliance that speaks -to the Committee's deli-se for-. speedy implementation of .the ordinance. At the same time; 1v3sinesses which believe six months is too short, can, if they choose, come forward with books and records supporting their contention that they are entitled to a ' longer amortization period -- indeed, to as long an amortization period as they can prove. Should the Director of Finance and Administration refuse to grant such an extension despite the evidence submitted or should the extension be less than that reasonably justified, the decision could be appealed to -the Council under Article V, Section E. And if that appeal failed, It is the Committee 's understanding that the applicant may have standing to appeal the Director's decision to the state district courts as an arbitrary and capricious exercise of discretionary authority under those doctrines relating to taking of property. The Committee believes that this approach is fairer and more feasible than fixing a longer period of &*ortization effective with respect to all businesses. Moreover, this approach avoids the need to subpoena books and records from business owners unwilling or at least hesitant to divulge financial information In order to develop an amortization period grounded in a hearing record. Instead, the decision is left to each individual busi— ness and its owner As to whether that particular owner wishes to divulge business data in order to secure an Extension of the six month time limit. This assures the business owner maximum privacy should he or she so desire, while also allowing the city to achieve its goal of speedy compliance with the ordinance in order to deal as effectively as possible with a serious existing problem. Sexually Oriented Busi;esse's ' Page 31 • Article VII. Revocation of Permit. The Committee in hearing testimony became concerned not just about the circwnstances under which the initial permit would be granted, but also about the means by which a permit could be revoked should a business fall out of compliance with the ordinance during the tern of the permit. For this reason, the Committee requested the drafting of provisions that dealt with the principal problems testified to during the hearings as to the operation of these businesses. These common problems can be classified as follows: Minors as Em to ees. A number of witnesses before the tommittee expressed concern, particularly with regard to adult modeling• studios, as to the actual age of some persons employed on the premises. Article VII, Section A(1) provides that a permit shall be revoked if persons . under the age of seventeen (17) are- found to be employees of a subject enterprise. Seventeen years of age was selected to comply with relevant state law. A companion provision, Article XI, prohibits the entry upon the premises of such businesses of anyone younger than seventeen, . and regvfres 'each affected business to provide an attendant to assure compliance With this prohibition. rxterior Appearance and Si na e. Although a .majorl't—yof the witnesses appearing before the Commit- tee felt that the control of the exterior appearance and signage of such businesses would help deal with the negative effect of such businesses on neighborhood stability and property values, most also stated concern that such provisions, if enacted, would not be heeded seriously by the businesses in question. In 'consider- . ing these arguments, the Committee concluded that effective enforcement of these provisions was a neces— sity. The Committee therefore provided that violation of these -provisions Will result in loss of the permit to do business. Recurring or Chronic Criminal Activity. A consis- tent eras 1n the testimony Sefore the Committee, whether offered by experts, citizens with specially significant experience with sexually oriented busi- nesses or members of the eneral public, was the problem of associated crime taking place in these establishments without action being taken by the city or any other suitable authority against such establishments. once again, many witnesses stated that while they understood the need to accept the right of such businesses to exist , they believed there was a need- to provide sanctions against those businesses • Sexually Oriented Businesses Page 32 which operate outside the law or which permit (either deliberately or by acts of omission) unlawful - activities to take place on their premises. Article - VII, Section A (3) addresses this problem raised during the hearings by providing that Whenever three or more persons are adjudged guilty in a trial court of committing certain criminal acts (as specified in • Chapter 21 , Chapter 43, Section 22. 011 , or Section 22.021 of the Texas Penal Code) on the premises of such a business , the pernit of that business will be revoked 9it can be shown that the owner or operator of the 5iness either knew. of the activities and did not seek to prevent them, or else• failed to take adequate steps to become aware of the activity. • The Committee believes that the concept of three or more persons being found guilty in a trial court. serving as the triggering mechanism for this position !is both fair and effective. Requiring actual convie- Vtions deals with the mi4 ieerh expressed by some during the hearings that such a provision, if triggered only by a certain number of arrests, would encourage police harassment of such establishments. The sensible alternative appeared to require judicial action on .the. arrest. At the same time, however, members of the Committee ' Were keenly aware that the pace of 'the judicial process makes it unlikely that in any one-year period three or more persons would be arrested, tried and have their cases heard at all levels of appeal. Given these realities, Article VII, Section AM represents a comprordse in which judicial action is required , but completion of the appeals process is not. Moreover, should a particular business owner feel that this revocation mechanism is being used improperly against him because of .some defect in the adjudications relied upon, this issue can be raised independently in the appeal on the revocation where the Director can then make a determination on the merits of the argument separate from the criminal process. False , Fraudulent or Untruthful Permit - Informa- tion. one of the most significant dMiculties reported to the Committee during its hearings by those agencies currently charged with enforcement of existing laws against those businesses proposed to be covered by . the ordinance is the lack of accurate and complete data. In many instances according to testimony this lack of information is due to the businesses • themselves, which engage in practices ranging from legally complex schemes of corporate ownership that • • Sexually Oriented Businesses Page 33 obscure true authority and control to outright falsehoods and fraudulent misrepresentations with . respect to the operations of a business. It is of course impossible to divert those who are determined to undertake such actions from doing so. But the Committee concluded that a major gap in enforcement would be created if the giving of false, fraudulent or untruthful information on the application form were not provided for; this is the reason for, and purpose of Article VI I, Section A (4) . As a concluding comment, the Committee would paint out that all of the revocation provisions are subject to the same appeals process provided for elsewhere throughout the ordinance. (These appeals provisions are set out in detail in Article V, Sections C through E.) This appeals process would include ,an •appeal to Council. The Committee is also of the opinion that in the event Council were to uphold the revocation of a permit by the Director of Finance and Administration, that decision would be subject to appeal to a state district court. Article IX. Other Permit Provisions. Article IX includes a mcuber -of miscellaneous but Important provisions. Section A requires posting of the permit on the premises of the business authorized by that permit. The permit must be posted in an "open and conspicuous" place to assure ease of enforcemerit• by public officials. (Open and conspicuous posting of the permit also benefits the business, since it allows for a check of the per— mit's existence with a minimum of disruption to normal business operations. ) Section B makes all permits issued under the ordinance good only for the location for which the permit was originally issued; In addition, permits are not assignable or transferable. This latter provision was adopted by the Committee in response to the problem cited during the hearing of 'rolling over' ownership of a business. The propensity of such businesses when under scrutiny (as during a court case brought by the city for prohibited activities) to change ownership and thereby continue to do business - while avoiding further legal action (because the new owner has not been named as a defendant in the city snit) is dealt with by making any such change of ownership grounds for termination of the permit. Section C of Article IX sakes it unlawful to counterfeit, forge, change, deface or alter a permit ' In any way. Articles IX and X. Restrictions on exterior Appearance and Signage. Antic a IX which covers all sexually oriente usi— nesses, as well as adult bookstores, adult wovie theatres, and- - massage establishments , sets restrictions regarding the external sexually Oriented Businesses PLge 34 appearance of all such businesses. (with respect to businesses selling alcohol , only signage and not exterior appearance is ' regulated. ) First, no such business can allow its goods or cervices to be visible fron any pc ftt outfide the establishment. Second, the ordinance forbids the use cf flashing lights or pictorial representations on the exterior -of such businesses; words can be used to a limited extent as noted below in the discussion of Article X. Third, the ordinance requires that all such businesses be painted a single achromatic color -- that is to say, some shade of grey. Exceptions to this requirement are permitted where the business is located in a commercial nulti-unit center Where the entire center is painted the same color, or where the color scheme employed is part of an overall architectural 'system or pattern. (A similar exception is pro- vided for any unpainted portions of the. exterior. ) The ordinance provides that all subject businesses Will come into conformity with these provisions of the ordinance within six months of- the effective date of the ordinance. . Article X regulates thg :signage of all sexually oriented ? businesses, including adult bookstores , adult movie theatres, and massage establishments; businesses licensed to sell alcoholic beverages also are subject to the signage provisions. The ordinance allows two types of signs to be displayed. The first type -- a 'primary signs -- may contain only the name of the establishment and a generic phrase, selected from phrases specified in the ordinance, describing the nature of the establishment. The letters on a 'primary sign' must be uniform and must be of a solid color. The background on the sign also must be of a solid color. Additionally* "primary signs' must not contain any pictorial representations or flashing lights, must be rectangular, must not exceed 75 square feet in area, and must not .exceed 10 feet in height and 10 feet in length. The second type of sign is the *secondary sign.' A 'secondary sign, ' while smaller than a "primary sign,' has fever restrictions placed on it. 'Secondary signs' are regulated 'only to the extent that they must be attached to a wall or door of an establishment, must be rectangular, must not exceed 20 square feet in area and must not exceed S feet in height and 4 feet in length. Non-conforming signs must be removed or wade to conform within six months of the effective date of the ordinance. Exten- sions of the six month period can be granted by the Director of the Department of Finance and Administration if it can be proved that more time is needed to recoupment 'the investment in the non-conforming . sign. Approval of the request for extension cannot be withheld if the request is adequately supported by- financial records. The procedure for securing such an extension • rexually Oriented Buxinesses Page 35 Is virtually identical to the procedure set out in Article V1, Sections D through r, concerning requests for extensions of the . six month amortization period for non-conforming existing enterprises. The Committee adopted these provisions regarding exterior appearance and signage after hearing considerable testimony, both from expert witnesses and members of the lay public, re-garding the problems caused by the exterior appearance and signage of the businesses. Again, -the majority of witnesses admitted the right of -such businesses to exist, and a number of witnesses pointed out vhat they believed to be the state-imposed limitations on the city's ability to reg-late the location of certain kinds of these businesses, such as adult movie theaters and adult bookstores. However, it was also pointed out to the Committee by a number of witnesses that despite these concessions, action -should still be taken to minimize the adverse effect of these businesses on their surrounding neighborhoods. The Committee found in hearing testimony that these adverse effects take several forms"'' First, a number of experts in \4 Houston real estate testified that the businesses adversely affect the value of adjoining and neighboring property. Specific - examples of this phenomena Were cited to the Committee during its hearings. (Similar testimony was offered during the additional hearing held before the entire Council. ) Second, the Committee received lay testimony regarding the * effects of the exterior appearance of such businesses on children. A number of parents expressed concern over the consequences to their own children and children of others because of exposure to the language and signage, including pictorial representations, used by these businesses. This testimony from lay persons was corroborated by expert statements regarding the adverse effects of such 'signage and exterior decoration upon children. . These two considerations -- the effect of the businesses on the value of neighboring properties and on children -- seemed to the Committee to be part of the more general problem of preseving a reasonable level of quality of life in Houston, a problem of paramount importance it the city is to maintain a stable community environment where property values are maintained (an essential element in any consideration of municipAl finances , for example) and further investment is encouraged. ThEre was considerable testimony, for instance, to the effect that the current situation along lower Wertheimer is impeding economic redevelopment of the area. The sexually oriented businesses clustered in that area are apparently able to pay extraordinarily high monthly . rotnts -- much higher than non-sexually oriented businesses can afford. The result has been the "shutting -outs of -- non-sexually oriented businesses, which could survive Y • Sexually Oriented Busiiiesse's page 36 •• economically except for the artificially high rents. (In addition, there wAs considerable testimony: as . to how the atmosphere created by the clusterinq of such busineese made it difficult for non-sexually oriented businesses to attract sufficient clientele to be successful.) This inability to attract . 'seed businesses" has in turn made it difficult to Encourage other larger-scale quality development in the area. It has also discouraged those Who wish to reside in the area and thereby continue the mixed-development plan of land use that has historically made the Montrose a unique community. In response to these problems, the Committee did not propose steps that would ban sexually oriented businesses altogether. Instead, the zemedies . propose4 would limit the concentration of such businesses and their obtrusiveness even where allowed to locate; it is the intention thereby to create an economic situation in which other types of businesses might also be encouraged to locate in an area, thereby achieving a more balanced urban mix. Where the particular type of business could not be regulated as to its , lgcatioq -- as in the case of adult bookstores or adult movie theatres, thanks to the apparent preemption of any city action because of state law -- the Committee recomrcen2ed the next most effective and available' action: namely, to make the businesses as unobtrusive as possible, and to minimize the negative impact of the businesses on their surrounding areas through controls on signage and exterior appearance. There were those who argued to the Committee that the signage of sexuully oriented businesses is no more alluring than that associated with other outdoor advertising. other witnesses . contended that even the garish external appearance of these . businesses was no Worse than might be found in conjunction with other non-sexually oriented businesses. Based on all of the testimony, however, the Committee conclu3ed that the qualitative difference between the signage and exterior appearance regulated under this ordinance and other signage and exterior businesses themselves. Based on the testimony, it is the opinion of the Committee that sexually oriented businesses have adverse effects on their surrounding neighborhoods unlike any negative effects that could be shorn by strip shopping centers in general , convenience stores or other commercial establishmen%s. As the. Committee reads the testimony of those witnesses deemed most credible, a clear case is made that sexually oriented businesses, because. of their unique adverse consequences on the surrounding neighborhoods , require regulation in whatever way reasonable possible to minimize those adverse consequences. It is also the .Committee's finding that based both on the- testimony and the. experience of other city' s, the single most ��• � ' Sexually Oriented Busiriesse3 ' . .---.---... .-------• - .._ .. . . - ._. . _ . .. y Page 37 effective action to be taken with respect to sexually oriented businesses is to restrict their location. Kouever, locational restrictions by themselves are not enough; Where the law allows , these should be coupled with restrictions on external signage and appearance to minimize the obtrusiveness of the sexually oriented business wherever located. Where thanks to state law the city's right to regulate location has been preempted, the need to strictly regulate exterior signage and appearance becomes even more critical as almost the only meaningful tool left in the municipal arsenal to deal With the problems posed by sexually oriented businesses for the quality of Houston life. Article Xr. A e Restrictions on rntr . A recurrent theme In the testimony before the Comm itee was the effect of these businesses upon children, Which in turn Would affect the quality of life in Aouston. One of the specific problems considered by the Committee in this regard Was the entry by minors onto the premises of such businesses. The Committee felt that barring persons under the age of seventeen from entry onto the preinises of a sexually oriented busine4 s -- .which in this instance would Include an adult aovie theatre; adult bookstore or. massage esablisament '-- Kas a reasonable response to this concern. Section B of Article =I, placing an affirmative duty on the • establiment to -enforce this provision seemed to the Committee to be the simplest, most reasonable means of attaining enforcement of this article, . particularly as the alternative would be a large number of roving inspectors, the cost of which would most likely be borne by the establistme-nts through the permit fee. Article XII. Restrictions on Employment of Minors. In addit on to concern al>out the presence of minors in sexually oriented businesses as ccstomers, the Committee also received . testimony indicating that minors might 'be employed in some of these businesses, particularly the adult modeling studios. For this reason, the Committee felt At necessary . to include a specific prohibition against the employment of persons under• tlie age of seventeen in aexvally oriented ' businesses =- •again including adult movie theatres, adult bookstores .and massage establishments. Article XIIr. Priority of Right.' one issue raised during the ocm ttee s 2eliberations, was whether a sexually oriented enterprise, once lawfully permitted, could lose its permit if a school or church were to be established within 750 feet of the enterprise, or if seventy-five per cent of the tracts of land within ..t'he calculated circular area were to become residential in accordance with the terms and conditions of Article V, Section B (3) . After substantial deliberation, the Committee concluded that the 'prior in time, prior in right' doctrine should be consistently applied. A church or school which • Sexually Oriented Busintssex Page 38 ., • •• knowingly chose Its locat:'on despite the prior existence of a sexually oriented co_mnereial enterprise, were not deemed by the Committee to occupy the same status as those schools, churches and residential areas which existed prior to the establishment of the sexually oriented business in Question. However, - the Committee did provide that this right to continued existence would terminate with the expiration without timely renewal or revocation of the permit. Article XIV. Effect on Massage Establishments. The City of Eouston already as one ordinance governing massage establishments -- Chapter 27 of .the Houston Code of Ordinances . The provisions of this ordinance are not intended to supplant that Chapter; but instead are designed to complement Its provisions. If a conflict should be deemed to exist between Chapter 27 and this new ordinance, however, the provisions of the new ordiance will govern. Articles XV — XIX. Additional Provisions. Articles XV through XIX are a2ditional provisions eeme necessary by the Committee for a complete ehd' .ef•fective ordinance. Article XV sets the rules regarding notices under the ordinance; all such notices must be sent in writing and will be considered as having • been delivered there days after their delivery to the -D.S, - Hails. Article XVI makes violations of the ordinance a Class C risde.neanor; each day a violation continues is deemed for purposes of the ordinance as a separate offense. Article XVII ' establishes the authority of the Director of Finance and Aministration, or his duly appointed subordinantes, to enforce the ordinance, if necessary by lawful entry by r}eans of a search warrant onto the premises of the business in question. Article XVIII empowers the City Attorney to file suit to enforce this. ordinance. Article XIX provides that if any provision of • the: ordinance should for any reason be held invalid, the remainder of the ordinance shall continue in full force and effect. CONCLUSION The Committee has attempted to show in this Report that the new ordinance regulating sexually oriented businesses is not a 'knee jerk' response to public complaints about such establish— rents. Rather the ordinance is the cumulation of over one year ' s work during which time citizen Input Was received, specific problems were identified , various remedies were considered, and legal contours were set. The Committee candidly acknowledges that a more restrictive ordinance was envisioned in the early days of the. project, as reflected bv ' the draft initially propagated by the Committee. However, such a restrictive ordinance could not be sanctioned if the Committee were to adhere �.� Sexually oriented Pusiriessth 01 Page 39 •• • to its goal of striking a careful balance between the rights of those persons who do not wish to be exposed to sexually oriented businesses and the rights of those persons who wish to operate or patronize such establishments. The Committee earnestly believes ' that the current proposed ordinance achieves that goal, and that the ordinance proposed to Council represents the furthest legally defensible extent to which the city can go in the regulation of sexually oriented businesses.