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Home My WebLink About09-City AttorneyCITY OF SAN BERNARDINO -REQUEST FOR COUNCIL ACTION From: JAMES F. PENMAN Subject: Ordinance of the City of San ra- . City Attorney ~ . ~ Bernardino amending certain sections of I " ~.: , , . ~ / Chapter 5.14 of the San Bernardino Dept: CITY ATTORNEY , ` Municipal Code relating to entertainment- dances and adult entertainment. Date: August 2, 2002 Synopsis of Previous Council Action: July, 1999: Chapter 5.12 is repealed and Chapter 5.14 is enacted. September, 1999: Section 5.14.120 is amended. October, 1999: Section 5.14.120 is amended. July, 2001: Sections 5.14.010, 5.14.020, 5.14.040 and 5.14.050 are amended. Recommended motion: That said Ordinance be laid over for final adoption. .ir+ Signature Contact person: James F. Penman Phone: 5255 Supporting data attached: Staff Report Ward: All FUNDING REQUIREMENTS: Amount: Source: Finance: -„ Agenda Item ~9 ~~~ 9/~~- STAFF REPORT Council Meeting Date: August 5, 2002 TO: Mayor and Common Council FROM: City Attorney's Office DATE: August 2, 2002 AGENDA: Ordinance of the City of San Bernardino amending certain sections of Chapter 5.14 of the San Bernardino Municipal Code relating to entertainment-dances and adult entertainment (Agenda Item #29). Chapter 5.14, entitled "Entertainment-Dances And Adult Entertainment," was enacted in July of 1999. Various sections of the chapter have been amended over the past three years. Periodically, City ordinances are reviewed to ensure compliance with current statutory and case law. The azea encompassed by the First Amendment oftentimes requires more frequent review and changes due to its continuously changing legal landscape. As a result of the passage of Resolution No. 2001-349, the City of San Bernadino entered into a Professional Services Agreement with the law firm of Best, Best & Krieger LLP ("BB&K") for the purpose of BB&K advising "the City Attorney's Office concerning the review, application and enforcement of the City's adult entertainment license ordinance and related matters." Based upon advisement from BB&K, it is recommended that Chapter 5.14 be amended in certain sections as reflected in the proposed ordinance. Adoption of the proposed ordinance will result in the City's adult entertainment license ordinance being better strengthened to withstand a legal challenge. Attached to this staff report to be of assistance is (1) the proposed ordinance, (2) a "strike- out" version showing the additions and deletions to the current codified ordinance, (3) a copy of the current ordinance, and (4) a compendium (including a summary) of the nine studies referenced in the proposed ordinance. A compilation of the cases referenced in Section 1 of the ordinance are available for review in the City Attorney's office. TO: Mayor and Common Council FROM: Huston T. Carlyle, Jr. Sr. Assistant City Attorney ) DATE: August 2, 2002 RE: Ordinance of the City of San Bernardino amending certain sections of Chapter 5.14 of the San Bernardino Municipal Code relating to entertainment-dances and adult entertainment (Agenda Item #29). Agenda Item #29 concerns an ordinance of the City of San Bernardino amending certain sections of Chapter 5.14 of the San Bernardino Municipal Code relating to entertainment-dances and adult entertainment. As the Staff Report indicates, the following documents aze being provided to you in considering this item: 1. The proposed ordinance. 2. A "strike-out" version showing the additions and deletions to the current codified ordinance. 3. A copy of the current ordinance. 4. A compendium (including a summary) of the nine studies referenced in the proposed ordinance. Sometimes the amount of paperwork one receives on an agenda item may not accurately reflect its importance -- that is not the case here. It is very important that the documents being supplied to you as back-up for this agenda item aze read by you in their entirety before Monday's meeting. ~~~~~ d ~., 1 ORDINANCE NO. z ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING CERTAIN SECTIONS OF CHAPTER 5.14 OF THE SAN BERNARDINO MUNICIPAL CODE 3 RELATING TO ENTERTAINMENT-DANCES AND ADULT ENTERTAINMENT. a The Mayor and Common Council of the City of San Bernardino do ordain as follows: s s SECTION 1. FINDINGS. The Common Council of the City of San Bernardino hereby finds that: (a) The Common Council, in adopting this ordinance, takes legislative notice e of the existence and content of the following studies concerning the adverse secondary side effects of Adult Businesses in other cities: Garden Grove, California (1991); Indianapolis, s Indiana (1984); Los Angeles, California (1977); Dallas, Texas (1977); Austin, Texas (1986); Phoenix, Arizona (1979); Houston, Texas (1983/1997); Saint Paul, Minnesota (1983). The i o Common Council finds that these studies are relevant to the problems addressed by the City in enacting Chapter 5.14 and these amendments to Chapter 5.14, to regulate the adverse ii secondary side effects of Adult Businesses (as that term is defined in Chapter 19.06 of this Code), and more specifically finds that these studies provide convincing evidence that: iz ('t) Adult Businesses are linked to increases in the crime rates in those 13 areas in which they are located and in surrounding areas. ie (2) There is substantial evidence that an increase in crime tends to accompany, concentrate around, and be aggravated by Adult Businesses, including but not is limited to an increase in the crimes of narcotics distribution and use, prostitution, pandering, and violence against persons and property. The studies from other cities establish i6 convincing evidence that Adult Businesses which are not regulated as to operation often have a deleterious effect on nearby businesses in residential areas causing, among other i~ adverse secondary effects, an increase in crime and a decrease in property values. is (b) Based on the foregoing, the Common Council of the City of San Bernardino finds and determines that special regulation of Adult Businesses is necessary to ensure that i9 their adverse secondary side effects will not contribute to an increase in crime rates or to the blighting or deterioration of the areas in which they are located or surrounding areas. The zo need for such special regulations is based upon the recognition that Adult Businesses have serious objectionable operational characteristics, particulary when several of them are zi concentrated under certain circumstances or located in direct proximity to sensitive uses such as parks, schools, churches, thereby having a deleterious effect upon the adjacent zz areas. It is the purpose and intent of these special regulations to prevent such adverse secondary side effects. 23 (c) The Common Council, in adopting operational standards, recognizes that za these standards do not preclude reasonable alternative avenues of communication. The Common Council takes note of the proliferation of adult material on the Internet and its z s availability as an alternative avenue of communication. The Common Council also considers and relies on published decisions examining the proliferation of communications on the zs Internet. Reno v. American Civil Liberties Union (1997) 521 U.S. 844 (the principle channel through which many Americans now transmit and receive sexually explicit communication z~ is the Internet); see also: Anheuser--Busch v. Schmoke, 101 F.3d 325, 329 (4th Cir. 1996) (rejecting First Amendment challenge to Baltimore ordinance restricting alcohol za advertisements on billboards and acknowledging that the Internet is an available channel of HE/cj[en[erta.ord] ], to 11 lz 13 14 F•/ is 16 17 le 19 zo zl zz 23 24 2s 26 27 za communication); U. S. v. Hockings, 129 F.3d 1069 (9th Cir. 1997); and U. S. v. Thomas, 74 F.3d 701 (6th Cir. 1996) (cert denied 519 U.S. 820). The emergence of the Internet provides a virtually unlimited additional source of adult oriented sexual material available to persons without regard to geographic boundaries. An adult business no longer needs to be actually physically located within a city to be available to the community. (d) In developing this ordinance, the Common Council has been mindful of legal principles relating to regulation of Adult Businesses and does not intend to suppress or infringe upon any expressive activities protected by the First Amendments of the United States and California Constitutions, but instead desires to enact reasonable time, place, and manner regulations that address the adverse secondary effects of Adult Businesses. The Common Council has considered decisions of the United States Supreme Court regarding local regulation of Adult Businesses, including but not limited to: Young v. American Mini Theaters. Inc., 427 U.S. 50 (1976) (Reh. denied 429 U.S. 873); Renton v Playtime Theaters, 475 U.S. 41 (1986) (Reh. denied 475 U.S. 1132); FW/PBS. Inc. v. Dallas, 493 U.S. 215 (1990); Barnes v. Glenn Theater, 501 U.S. 560 (1991), and City of Erie v Paos A_M. 529 U.S. 277 (2000); United States Court of Appeals 9th Circuit decisions, including but not limited to: Topanga Press. et al. v City of Los Angeles, 989 F.2d 1524 (1993); Kev. Inc. v. Kitsap County, 793 F.2d 1053 (9th Cir. 1986); Colacurcio v. City of Kent, 163 F.3d 545 (9th Cir. 1998); several California cases including but not limited to: Tily B. v. City of Newport Beach, 69 Cal.App.4th 1 (1998); City of National Citv v. Wiener, 3 Cal.4th 832 (~ yy3); t'eople v. Superior Court (Lucero) 49 Cal.3d 14 (1989); and City of Vallejo v. Adult Books. et al. 167 Cal.App.3d 1169 (1985); and other federal cases including Lakeland Lounge v. City of Jacksonville 973 F.2d 1255 (5th Cir. 1992); Hang On Inc. v. Arlington 65 F.3d 1248 (5th Cir. 1995); Mitchell v. Commission on Adult Entertainment 10 F.3d 123 (3rd Cir. 1993); International Eateries v Broward County 941 F.2d 1157 (11th Cir. 1991); and Star Satelitte v. City of Biloxi 779 F.2d 1074 (5th Cir. 1986). (e) The Common Council of the City of San Bernardino also finds that locational criteria alone does not adequately protect the health, safety, and general welfare of the citizens of the City of San Bernardino, and thus certain requirements with respect to the ownership and operation of Adult Businesses are in the public interest. In addition to the findings and studies conducted in other cities regarding increases in crime rates, decreases in property values and the blighting of areas in which such businesses are located, the Common Council also takes legislative notice of the facts recited in the case of Kev. Inc. v. Kitsap County, 793 F.2d 1053 (1986), regarding how live adult entertainment results in secondary effects such as prostitution, drug dealing, and other law enforcement problems. (f) The Common Council finds the following, in part based upon its understanding of the documents, testimony and judicial decisions in the public records: (1) Evidence indicates that some dancers, models and entertainers, and other persons who publicly perform specified sexual activities or publicly display specified anatomical parts in Adult Businesses (collectively referred to as 'performers') have been found to engage in sexual activities with patrons of Adult Businesses on the site of the Adult Business; (2) Evidence has demonstrated that performers employed by Adult Businesses have been found to offer and provide private shows to patrons who, for a price, are permitted to observe and participate with the performers in live sex shows; (3) Evidence indicates that performers at Adult Businesses have been found to engage in acts of prostitution with patrons of the establishment; /// HFlcj[enrena.ordJ (4) Evidence demonstrates that performers employed by Adult Businesses frequently use stage names and other aliases, making it difficult for law enforcement personnel to properly identify them or ascertain their true identies; (5) Evidence indicates that fully enclosed booths, individual viewing areas, and other small rooms whose interiors cannot be seen from public areas of the establishment regularly have been found to be used as a location for engaging in unlawful sexual activity; (6) As a result of the above, and the increase in incidents of AIDS and Hepatitis B, which are both sexually transmitted diseases, the City has a substantial interest in adopting regulations which will reduce, to the greatest extent possible, the possibility for the occurrence of prostitution and casual sex acts at Adult Businesses. to 11 lz 13 14 is 16 17 18 19 zo zl 2z 23 24 2s 26 27 26 (g) Zoning, licensing and other police power regulations are legitimate, reasonable means of accountibility to help protect the quality of life in the community of San Bernardino and to help assure that all operators of Adult Businesses comply with reasonable regulations and are located in places that minimize the adverse secondary effects which naturally accompany the operation of such businesses. (h) The Common Council has also determined that a closing hours requirement promotes the reduction of deleterious secondary effects from Adult Businesses and reasonably relies on prior court decisions on the need for closing hours including Mitchell v. Comm. on Adult Entertainment, 10 F.3d 123, 131-139 (3d Cir. 1993); Lady J. Lingerie, Inc. v. City of Jacksonville, 973 F.Supp. 1428 (M.D. Fla. 1997) and Lady J. Lingerie, Inc. v. City of Jacksonville, 176 F.3d 1358 (11th Cir. 1999); and City of Colorado Springs v. 2354 /nc., 896 P.2d 272 (1995). (i) The Common Council of the City of San Bernardino recognizes the possible harmful effects on children and minors exposed to the effects of such Adult Businesses and the deterioration of respect for family values, and the need and desire of children and minors to stay away from and avoid such businesses, which causes children to be fearful and cautious when walking through or visiting the immediate neighborhood of such businesses; and the Common Council desires to minimize and control the adverse secondary side effects associated with the operation of Adult Businesses and thereby protect the health, safety, and welfare of the citizens of San Bernardino; protect the cititzens from increased crime; preserve the quality of life; preserve property values and the character of surrounding neighborhoods and businesses; deter the spread of urban blight and protect against the threat to health from the spread of communicable and sexually transmitted diseases. Q) It is not the intent of the Common Council of the City of San Bernardino in enacting this ordinance, or any provision thereof, to condone or legitimize the distribution of obscene material, and the City of San Bernardino recognizes that state law prohibits the distribution of obscene materials and expects and encourages law enforcement officials to enforce state obscenity statutes against such illegal activities in the City of San Bernardino. (k) Nothing in this ordinance is intended to authorize, legalize, or permit the establishment, operation, or maintenance of any business, building, or use which violates any City ordinance or any statute of the State of California regarding public nuisances, unlawful or indecent exposure, sexual conduct, lewdness, obscene or harmful matter or the exhibition or public display thereof. (I) In prohibiting public nudity in Adult Businesses, the Common Council does not intend to proscribe the communication of erotic messages or any other communicative HE/cj[enterta.ord] element or activity, but rather only to prevent or reduce the secondary impacts associated with such public nudity; and to 11 lz 13 14 is 16 17 la 19 20 zl zz 23 24 zs 26 z~ za (m) While the Common Council desires to protect the rights conferred by the United States Constitution to Adult Businesses, it does so in a manner that ensures the continued and orderly development of property within the City and diminishes, to the greatest extent feasible, those undesirable secondary effects which the aforementioned studies have shown to be associated with the development and operation of Adult Businesses; and (n) The City declares that the restrictions on sexual conduct or activities imposed pursuant to this ordinance are part of a regulatory licensing process, and do not constitute a criminal offense. Notwithstanding any other provision of the San Bernardino Municipal Code, the City does not impose a criminal penalty for violations of the provisions of this ordinance related to sexual conduct or activities. The Common Council adopts these limitations only as a condition of issuance and maintenance of an Adult Business entertainment license issued pursuant to the Municipal Code; and (o) The Common Council finds that preventing the direct exchange of money between entertainers and patrons also reduces the likelihood of drug and sex transactions occurring in Adult Businesses; and (p) Requiring separations between entertainers and patrons reduces the likelihood that such persons will negotiate narcotics sales and/or transact sexual favors within the Adult Business; and (q) Enclosed or concealed booths and dimly-lit areas within Adult Businesses greatly increases the potential for misuse of the premises, including unlawful conduct of a type which facilitates transmission of disease. Requirements that all indoor areas be open to view by management at all times, and that adequate lighting be provided are necessary in order to reduce the opportunity for, and therefore the incidence of illegal conduct within Adult Businesses, and to facilitate the inspection of the interior of the premises thereof by law enforcement personnel. (r) The Common Council finds that security guard requirements, based upon the number of occupants on the premises where entertainment is performed, promotes the reduction of adverse secondary effects from Adult Businesses, promotes public safety, and reduces the likelihood of illegal conduct occuring inside and outside the premises. (s) Based upon (a)-(r) above, and in particular the studies set forth in (a), after review of Chapter 5.14, the Common Council finds that only the following sections in Chapter 5.14 need to be amended as all other sections are in conformity with said studies and findings. Section 2. San Bernardino Municipal Code Section 5.14.010(C)(3) is amended to read as follows: "5.14.010 Definitions C. 3. The following is included in the term "entertainment": The presence of any performer, dancer, employee, agent, model or other person, collectively and/or individually referred to as "entertainer", in any place of entertainment as defined in Sections 5.14.010(A) or (B) who engages in any specified sexual activity (as that term is defined in Chapter 19.06 of this Code) not otherwise prohibited by local, State or Federal law, or who exposes any specified anatomical part (as that term is defined in Chapter 19.06 of this HE/cj[en[erta.ord] Q Code) not otherwise prohibited by local, State or Federal law, or who performs in attire commonly referred to as pasties or a G-string, or any other opaque covering which does not expose the areola or nipples of the female breast, and while covering the natal cleft and pubic area covers less than one inch on either side of the entire length of the natal cleft and two inches across the pubic area. Entertainment as described in this subsection shall be subject to all regulations as described in Chapter 19.06 of this Code, including but not limited to, the requirement for a Development Permit II." to 11 lz 13 14 is 16 17 la 19 zo zl zz 23 24 zs 26 C 2' 28I Section 3. San Bernardino Municipal Code Section 5.14.050 is amended to read as follows: "5.14.050 Issue of License-Investigation A. Upon receipt of an application for an entertainment license, the City Clerk shall conduct an investigation to determine if the proposed business is in compliance with the provisions of this chapter. The investigation shall include immediately forwarding copies of the application to the Police Department, Development Services and the Fire Department for their own independent investigation. Each department shall make recommendations as to the issuance or denial of the license and forward said results to the City Clerk within 20 days of receipt of the application. The City Clerk, shall, within 30 days of receipt of a complete license application, approve and issue the license if all the requirements of this section have been met. If the City Clerk determines that the application does not satisfy the requirements of this chapter, he/she shall deny the application. If no determination is made.by the City Clerk within 30 days of receipt of a complete license application, then the applicant may commence operations under a temporary license, subject to strict compliance with this Chapter, until the City Clerk's determination. The applicant shall be served with written notice of the decision. Notice shall be personally served or served by deposit in the United States mail, first class postage prepaid, at the address shown on the application. Service shall be deemed complete upon personal service or deposit in the United States Post Mail. B. Standards for Approval of License. The City Clerk shall approve and issue an entertainment license if the application and evidence submitted show that: 1. The operation, as proposed by the applicant, if permitted, would comply with all applicable laws, including but not limited to the City's building, fire, zoning and health regulations; and 2. The applicant has not knowingly made any false, misleading or fraudulent statement of fact in the license application process, or on any document required by the City in conjunction therewith; the applicant's age is eighteen (18) years or more; and the applicant has paid the required application fees." (MC-1100, 7-23-01) Section 4. San Bernardino Municipal Code Section 5.14.060 is amended to read as follows: /// HE/cj[enrerta.ord] "5.14.060 Operational Standards to 11 lz 13 14 15 16 17 la 19 zo zl zz 23 24 zs 26 z~ zs The following operational standards shall apply to all entertainment described in Section 5.14.010: A. No operator, entertainer or employee of a place of entertainment shall permit to be performed, offer to pertorm, pertorm or allow patrons to perform sexual intercourse, oral or anal copulation, lap or straddle dancing, fondling or stimulation of human genitals, pubic region, buttocks, or female breasts. B. No operator, entertainer or employee of a place of entertainment shall encourage or permit any person upon the premises to lap or straddle dance, touch, caress, or fondle the breasts, buttocks, anus or genitals of any other person. C. If the place of entertainment is licensed to serve alcoholic beverages, the licensee shall abide by the rules and regulations set forth by the California Department of Alcoholic Beverage Control. D. No person shall perform for patrons any entertainment described in Section 5.14.010(C)(3) except upon a stage at least eighteen (18) inches above the level of the floor which is separated by a distance of at least six feet from the nearest area occupied by patrons, and no patron shall be permitted within six feet of the stage while the stage is occupied by an entertainer. This subsection shall not apply to individual viewing areas where the stage is completely separated from the viewing area, floor to ceiling, by plexiglass or other clear permanent barrier. E. Stage or entertainment areas shall not be open to view from outside the premises. F. Permanent barriers shall be installed and maintained to screen the interior of the premises from public view for each door used as an entrance/exit to the business. G. No exterior door or window shall be propped or kept open at any time during hours of operation; any exterior windows shall be covered with opaque covering at all times. H. No person under the age of eighteen (18) years shall be permitted within the premises at any time during hours of operation. The place of entertainment shall maintain separate restroom facilities for male patrons and employees and female patrons and employees. Male patrons and employees shall be prohibited from either looking into or using the restrooms for females and female patrons and employees shall be prohibited from using the restrooms for males except to carry out the duties of repair, maintenance and cleaning of the restroom facilities. Restrooms shall not contain television monitors or other motion picture or video projection recording or reproduction equipment. J. The premises shall provide separate dressing room facilities for male and female entertainers which are exclusively dedicated to the entertainer's use. K. The licensee shall provide an entrance/exit to the premises for entertainers which is separate from the entrance/exit used by patrons. L. No entertainer shall have physical contact with any patron and no patron shall have physical contact with any entertainer while on the premises. /// HE/cj[enterta.ord] to 11 12 13 ,~w 14 !`u/ is 16 17 16 19 zo zl zz 23 24 zs 26 27 za M. All areas of the place of entertainment accessible to patrons shall be illuminated at least to the extent of two foot-candles (measured as units of illuminance), minimally maintained and evenly distributed at ground level. N. Individual viewing areas shall be operated and maintained without any hole or other opening or means of direct communication or visual or physical access between the interior space of two or more individual viewing areas. O. No individual viewing area may be occupied by more than one person at any one time. P. All individual viewing areas shall be physically arranged in such a manner that the entire interior portion of the individual viewing area is directly visible from aisles and public areas of the premises. Visibility into the individual viewing rooms shall not be blocked or obscured by doors, curtains, partitions, drapes, or any other obstruction whatsoever. Q. No patron, guest or invitee shall directly pay or give any gratuity to any pertormer, dancer, employee or model and no dancer, pertormer, employee or model shall solicit any pay or gratuity from any patron. R. No owner or other person with managerial control over an Adult Business (as that term is defined in Chapter 19.06 of this Code) shall permit any person on the premises of the Adult Business to engage in a live showing of the human male or female genitals, pubic area, or buttocks with less than a fully opaque covering, and/or the female breasts with less than a fully opaque covering over any part of the nipple or areola and/or covered male genitals in a discernibly turgid state. This provision may not be complied with by applying an opaque covering simulating the appearance of the specific anatomical part required to be covered. S. If the occupancy limit of that portion of the premises where entertainment is pertormed is greater than two hundred (200) persons, at least one security guard will be on duty outside the premises, patrolling the grounds and parking areas at all times while the entertainment is provided. An additional security guard will be on duty inside the premises if the occupancy exceeds four hundred (400) persons. The security guards shall be charged with preventing violations of law and enforcing compliance by patrons with the requirements of the chapter. No security guard required pursuant to this subparagraph shall act as a door person, ticket seller, ticket taker, or admittance person while acting as a security guard. An additional security guard shall be provided if one security guard is to be utilized for the purpose of conducting searches on patrons. All security guards shall be licensed in accordance with Business and Professions Code §7582, et seq. T. The premises within which the entertainment is located shall provide sufficient sound absorbing insulation so that noise generated inside the premises shall not be audible anywhere on adjacent property or public right-of-way or within any other building or other separate unit within the same building; U. All signage conforms to the standards applicable in Title 19 of this Code; V. Every place of entertainment shall have a manager on the premises at all times when entertainment is performed; W. The place of entertainment must not operate or be open between the hours of two a.m. and eight a.m., however, the restriction herein imposed applies only to permitting or allowing the public to dance and to the providing of entertainment of HE/cj[enterta.ord] '7 to 11 lz 13 14 is 16 17 16 19 20 21 22 23 24 zs /w, 26 27 za any sort other than mechanical music between such hours and is not deemed to prevent or make unlawful the serving of meals or refreshments between such hours; and X. All business activities must take place within the enclosed structures, unless otherwise permitted by the City. Y. The City Clerk shall impose conditions prior to approval of an application which are deemed necessary by the Police Department, Development Services, and the Fire Department to insure compliance with the provisions of this Chapter or to protect the public health and safety.. Such conditions shall be limited to the following: hours of operation; maximum occupancy; fire and life and public safety issues; fire suppression; exterior signage prohibiting loitering and littering; clean-up of premises; location of the business; amount and type of calls for police service in the area; exterior lighting; existence of public telephones; and security guards. The conditions imposed shall include the posting of a bond or cash equivalent for the clean-up of premises, dependent upon the physical condition of past premises as a result of past entertainment events of applicant." Section 5. San Bernardino Municipal Code Section 5.14.120 is amended to read as follows: "5.14.120 Appeal A. Any applicant aggrieved by the decision of the City Clerk with reference to the issuance, conditional issuance, denial, suspension, or revocation of a license, may appeal to the Hearing Officer for the City of San Bernardino. The Hearing Officer shall be appointed by the Mayor to hear all appeals under this section for a fixed term not to exceed two years; afterwhich such Hearing Officer shall be ineligible for reappointment until after one year has passed. Upon the timely filing of an appeal from the denial, suspension or revocation of a license, the decision of the City Clerk is stayed until the appeal is decided by the Hearing Officer. B. The right to appeal to the Hearing Officer from the denial, suspension or revocation of any license required by this chapter shall terminate upon the expiration of fifteen (15) days following the deposit of a certified letter in the United States Post Office advising the applicant of the action of the City Clerk and of his or her right to appeal such action to the Hearing Officer. C. The hearing shall be held within twenty (20) days of the receipt by the City Clerk of the appeal, or at the next regularly scheduled meeting of the Hearing Officer, whichever is sooner. D. The Hearing Officer shall render his/her decision within five days from the conclusion of the hearing. Said decision shall be sent by certified mail. The City Clerk or any applicant aggrieved by the decision of the Hearing Officer shall have the right to appeal to the City Planning Commission. Upon the timely filing of an appeal, the decision of the Hearing Officer is stayed until the appeal is decided by the Planning Commission. The right to appeal to the City Planning Commission shall terminate upon the expiration of fifteen (15) days following the deposit of said decision by certified mail and advising the applicant of his or her right to appeal such decision to the City Planning Commission. The appeal hearing before the City Planning Commission shall be held within twenty (20) days of the receipt by the City Clerk of the appeal request. The Planning Commission shall render its decision within fourteen (14) days from the conclusion of the hearing. The decision HE/cj[entena.ord] g 1 2 3 4 s 6 7 s 9 to 11 lz 13 14 15' 16~ 17 18 19 20 21 22 23 24 25 26 ~• 2 7 28 of the Planning Commission shall be final and conclusive and shall not be subject to appeal to the Mayor and Common Council. Pursuant to Code of Civil Procedure Section 1094.8, any action to review the decision of the Planning Commission shall be filed and served not later than twenty-one (21) calendar days following the Planning Commission's decision unless the parties jointly waive the time limit. E. The City shall comply with all of the requirements of Code of Civil Procedure Section 1094.8 and shall take all lawful steps to insure that any applicant aggrieved by its decision shall be afforded prompt judicial review of said Planning Commission's decision. (Ord. MC-1059, 10-4-99; Ord. MC-1058, 9-20-99) Section 6. San Bernardino Municipal Code Section 5.14.160 is amended to read as follows: "5.14.160 Violations and Penalties Any person who violates Section 5.14.020 is guilty of a misdemeanor, punishable upon conviction in accordance with Section 1.12.010(A) of this Code. Each and every day during which such person violates Section 5.14.020 shall constitute a separate offense chargeable under this section." /// /// ~~~ //~ /// ~// /// /// /// ~~/ ~~~ /// ~~~ ~~~ ~/~ ~~~ ~~~ HE/cj[en[erta.ord] 9 1 z 3 4 s 6 7 e 9 to 11 lz 13 /~\ 14 [•/ 15 16 17 18 19 20 21 22 23 24 zs 26 27 28 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING CERTAIN SECTIONS OF CHAPTER 5.14 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO ENTERTAINMENT-DANCES AND ADULT ENTERTAINMENT. I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the _day of , 2002, by the following vote, to wit: COUNCIL MEMBERS: ESTRADA LIEN MCGINNIS DERRY SUAREZ ANDERSON MC CAMMACK AYES NAYS ABSTAIN ABSENT Rachel Clark, City Clerk The foregoing Ordinance is hereby approved this _ day of , 2002. JUDITH VALLES, Mayor City of San Bernardino Approved as to form and legal content: JAMES F. PENMAN City Attorney HE/cj[enterta.ord] 10 5.14.010 Definitions C. 3. The following is included in the term "entertainment": The presence of any performer, dancer, employee, agent, model or other person, collectively and/or individually referred to as "entertainer', in any place of entertainment as defined in Sections 5.14.010(A) or (B) who engages in any specified sexual activity (as that term is defined in Chapter 19.06 of this Code) not otherwise prohibited by local, State or Federal law, or who exposes any specified anatomical part (as that term is defined in Chapter 19.06 of this Code) not otherwise prohibited by local, State or Federal law, or who performs in attire commonly referred to as pasties or a G-string, or any other opaque covering which does not expose the areola or nipples of the female breast, and while covering the natal cleft and pubic area covers less than one inch on either side of the entire length of the natal cleft and two inches across the pubic area. Entertainment as described in this subsection shall be subject to all regulations as described in Chapter 19.06 of this Code, including but not limited to, the requirement for a Development Permit II. 5.14.050 Issue of License-Investigation A. Upon receipt of an application for an entertainment license, the City Clerk shall conduct an investigation to determine if the proposed business is in compliance with the provisions of this chapter. The investigation shall include immediately forwarding copies of the application to the Police Department, Development Services and the Fire Department for their own independent investigation. Each department shall make recommendations as to the issuance or denial of the license and forward said results to the City Clerk within 3E} 20 days of receipt of the application. The City Clerk, shall, within 45 30 days of receipt of a complete permit license application, approve and issue the permit license if all the requirements of this section have been met. If the City Clerk determines that the application does not satisfy the requirements of this chapter, he/she shall deny the application. If no determination is made by the City Clerk within 30 days of receipt of a complete license application, then the applicant may commence operations under a temporary license, subject to strict compliance with this Chapter, until the City Clerk's determination. 1. The applicant shall be served with written notice of the decision. Notice shall be personally served or served by deposit in the United States mail, first class postage prepaid, at the address shown on the application. Service shall be deemed complete upon personal service or deposit in the United States Post Mail. HE/cj[514.ord] B. Standards for Approval of License. The City Clerk shall approve and issue an entertainment license if the application and evidence submitted show that: The operation, as proposed by the applicant, if permitted, would comply with all applicable laws, including but not limited to the City's building, fire, zoning and health regulations; and The applicant has not knowingly made any false, misleading or fraudulent statement of fact in the license application process, or on any document required by the City in conjunction therewith; the applicant's age is eighteen (18) years or more; and the applicant has paid the required application fees. 3 - 4 - 5- ~: S: HElcj[5ld.ord] 2 _i.__L......... i.. ~_a.. ,. ..L L... .....1 g: , (MC-1100, 7-23-01) 5.14.060 Operational Standards The following regtt4st+ens operational standards shall apply to all entertainment described in Section 5.14.010{Ej{3j: A. No operator, entertainer or employee of a place of entertainment shall permit to be performed, offer to perform, perform or allow patrons to perform sexual intercourse, oral or anal copulation, lap or straddle dancing, fondling or stimulation of human genitals, pubic region, buttocks, or female breasts. B. No operator, entertainer or employee of a place of entertainment shall encourage or permit any person upon the premises to lap or straddle dance, touch, caress, or fondle the breasts, buttocks, anus or genitals of any other person. C. If the place of entertainment is licensed to serve alcoholic beverages, the licensee shall abide by the rules and regulations set forth by the California Department of Alcoholic Beverage Control HE/cj[514.ord] D. No person shall perform for patrons any entertainment described in Section 5.14.010(C)(3) except upon a stage at least eighteen (18) inches above the level of the floor which is separated by a distance of at least six feet from the nearest area occupied by patrons, and no patron shall be permitted within six feet of the stage while the stage is occupied by an entertainer. This subsection shall not apply to individual viewing areas where the stage is completely separated from the viewing area, floor to ceiling, by plexiglass or other clear permanent barrier. E. Stage or entertainment areas shall not be open to view from outside the premises. F. Permanent barriers shall be installed and maintained to screen the interior of the premises from public view for each door used as an entrance/exit to the business. G. No exterior door or window shall be propped or kept open at any time during hours of operation; any exterior windows shall be covered with opaque covering at all times. H. No person under the age of eighteen (18) years shall be permitted within the premises at any time during hours of operation. The place of entertainment shall maintain separate restroom facilities for male patrons and employees and female patrons and employees. Male patrons and employees shall be prohibited from either looking into or using the restrooms for females and female patrons and employees shall be prohibited from using the restrooms for males except to carry out the duties of repair, maintenance and cleaning of the restroom facilities. Restrooms shall not contain television monitors or other motion picture or video projection recording or reproduction equipment. J. The premises shall provide separate dressing room facilities for male and female entertainers which are exclusively dedicated to the entertainer"s use. K. The licensee shall provide an entrance/exit to the premises for entertainers which is separate from the entrance/exit used by patrons. L. No entertainer shall have physical contact with any patron and no patron shall have physical contact with any entertainer while on the premises. M. All areas of the place of entertainment accessible to patrons shall be illuminated at least to the extent of two foot-candles (measured as units of illuminance), minimally maintained and evenly distributed at ground level. N. Individual viewing areas shall be operated and maintained without any hole or other HE/cj[514.ord] 4 opening or means of direct communication or visual or physical access between the interior space of two or more individual viewing areas. O. No individual viewing area may be occupied by more than one person at any one time. P. All individual viewing areas shall be physically arranged in such a manner that the entire interior portion of the individual viewing area is directly visible from aisles and public areas of the premises. Visibility into the individual viewing rooms shall not be blocked or obscured by doors, curtains, partitions, drapes, or any other obstruction whatsoever. Q. No patron, guest or invitee shall directly pay or give any gratuity to any performer, dancer, employee or model and no dancer, performer, employee or model shall solicit any pay or gratuity from any patron. R. No owner or other person with managerial control over an Adult Business (as that term is defined in Chapter 19.06 of this Code) shall permit any person on the premises of the Adult Business to engage in a live showing of the human male or female genitals, pubic area, or buttocks with less than a fully opaque covering, and/or the female breasts with less than a fully opaque covering over any part of the nipple or areola and/or covered male genitals in a discernibly turgid state. This provision may not be complied with by applying an opaque covering simulating the appearance of the specific anatomical part required to be covered. S. If the occupancy limit of that portion of the premises where entertainment is performed is greater than two hundred (200) persons, at least one security guard will be on duty outside the premises, patrolling the grounds and parking areas at all times while the entertainment is provided. An additional security guard will be on duty inside the premises if the occupancy exceeds four hundred (400) persons. The security guards shall be charged with preventing violations of law and enforcing compliance by patrons with the requirements of the chapter. No security guard required pursuant to this subparagraph shall act as a door person, ticket seller, ticket taker, or admittance person while acting as a security guard. An additional security guard shall be provided if one security guard is to be utilized for the purpose of conducting searches on patrons. All security guards shall be licensed in accordance with Business and Professions Code §7582, et seq. T. The premises within which the entertainment is located shall provide sufficient sound absorbing insulation so that noise generated inside the premises shall not be audible anywhere on adjacent property or public right-of-way or within any other building or other separate unit within the same building; U. All signage conforms to the standards applicable in Title 19 of this Code; V. Every place of entertainment shall have a manager on the premises at all times when entertainment is performed; W. The place of entertainment must not operate or be open between the hours of two a.m. and eight a.m., however, the restriction herein imposed applies only to permitting or allowing the public to dance and to the providing of entertainment of any sort other than mechanical music between such hours and is not deemed to prevent or make unlawful the serving of meals or refreshments between such hours; and X. All business activities must take place within the enclosed structures, unless otherwise permitted by the City. Y. The City Clerk shall impose conditions prior to approval of an application which are deemed necessary by the Police Department, Development Services, and the Fire Department to insure compliance with the provisions of this Chapter or to protect the public health and safety. Such conditions shall be limited to the following: hours of operation; maximum occupancy; fire and life and public safety issues; fire suppression; exterior signage prohibiting loitering and littering; clean-up of premises; location of the business; amount and type of calls for police service in the area; exterior lighting; existence of public telephones; and security guards. The conditions imposed shall include the posting of a bond or cash equivalent for the clean-up of premises, dependent upon the physical condition of past premises as a result of past entertainment events of applicant. 5.14.120 Appeal A. Any applicant aggrieved by the decision of the City Clerk with reference to the issuance, conditional issuance, denial, suspension, or revocation of a license, may appeal to the Hearing Officer for the City of San Bernardino. The Hearing Officer shall be appointed by the Mayor to hear all appeals under this section for a fixed term not to exceed two years; afterwhich such Hearing Officer shall be ineligible for reappointment until after one year has passed. Upon the timely HE/cj [i I ~.ord] 6 filing of an appeal from the denial, suspension or revocation of a license, the decision of the City Clerk is stayed until the appeal is decided by the Hearing Officer. B. The right to appeal to the Hearing Officer from the denial, suspension or revocation of any license required by this chapter shall terminate upon the expiration of fifteen (15) days following the deposit of a certified letter in the United States Post Office advising the applicant of the action of the City Clerk and of his or her right to appeal such action to the Hearing Officer. C. The hearing shall be held within twenty (20) days of the receipt by the City Clerk of the appeal, or at the next regularly scheduled meeting of the Hearing Officer, whichever is sooner. D. The Hearing Officer shall render his/her decision within five days from the date conclusion of the hearing. Said decision shall be sent by certified mail. The City Clerk or ~4any applicant aggrieved by the decision of the Hearing Officer shall have the right to appeal to the City Planning Commission. Upon the timely filing of an appeal, the decision of the Hearing Officer is stayed until the appeal is decided by the Planning Commission. The right to appeal to the City Planning Commission shall terminate upon the expiration of fifteen (15) days following the deposit of said decision by certified mail and advising the applicant of his or her right to appeal such decision to the City Planning Commission. The appeal hearing before the City Planning Commission shall be held within twenty (20) days of the receipt by the City Clerk of the appeal request. The Planning Commission shall render its decision within fourteen (14) days from the date conclusion of the hearing. The decision of the Planning Commission shall be final and conclusive and shall not be subject to appeal to the Mayor and Common Council. Pursuant to Code of Civil Procedure Section 4894:61094.8, any action to review the decision of the Planning Commission shall be eemrneneed filed and served not later than twenty- one (21) calendar days following the Planning Commission's decision is-rendered unless the parties jointly waive the time limit. E. The City shall comply with all of the requirements of Code of Civil Procedure Section 1094.8 and shall take all lawful steps to insure that any applicant aggrieved by its decision shall be afforded prompt judicial review of said Planning Commission's decision. (Ord. MC-1059, 10-4-99; Ord. MC-1058, 9-20-99) HE/cj[514.ord] .«:. J.............. ~T ' 5.14.160 Violations and Penalties Any person who violates Section 5.14.020 is guilty of a misdemeanor, punishable upon conviction in accordance with Section 1.12.010(A) of this Code. Each and every day during which such person violates Section 5.14.020 shall constitute a separate offense chargeable under this section. He~~iisia.omi 8 Chapter 5.08 (REPEALED BY MC-294, 8-1-83) Chapter 5.12 (REPEALED BY MC-1052, 7-19-99; MC-1051, 7-19-99; MC-1050, 7-12-99) Chapter 5.14 ENTERTAINMENT-DANCES AND ADULT ENTERTAINMENT Sections: 5.14.010 Definitions 5.14.020 License-Required 5.14.030 License-Application and Fees 5.14.040 Application Requirements 5.14.050 Issue of License-Investigation 5.14.060 Additional Regulations- Adult Entertainment 5.14.070 License-Nontransferable-Posting 5.14.080 License-Fee 5.14.090 License-Duration 5.14.100 Exemptions from filing, processing and license fees 5.14.110 Suspension/Revocation of license 5.14.120 Appeal 5.14.130 Licenses and Fees not Exclusive 5.14.140 Exceptions 5.14.150 Severability 5.14.160 Penalty 5.14.010 Definitions. For the purpose of this Chapter, certain words and phrases shall be construed as set forth in this section, unless it is apparent from the context that a different meaning is intended. A. "Dine and dance clubs," and "night clubs," mean and include all hotels, restaurants, cafes, road houses, inns, taverns, bars, or any place open to the public, wherein or whereat beverages, meals or dinners are served, and where the public and patrons thereof may dance, or where entertainers may perform. B. A "public dance", "dancing club", or "public dance hall" means and includes any place open to the public wherein or whereat the public may engage in dancing as a result of the entertainment provided, including places and dances where admission thereto is by membership or other special privilege. C. "Entertainment" means: Any act, play, review, pantomime, scene, dance act, song and dance act, concert, or gathering and playing of band(s) and/or musical groups, performed by one or more persons, whether or not such person or persons are compensated for such performance, when the same is performed at a public dance hall, public dance, dancing club, dine and dance club or night club; or [Rev. October 10, 2001] 5-44 2. Any fashion or style show, except: a. When the same is conducted by a nonprofit club, organization or association, as a part of the social activities of such club, organization or association to which members of the general public are not invited; or b. When the same is conducted by a person as a part of a commercial business which primarily involves the sale or manufacture of clothing or wearing apparel. 3. The following is included in the term "entertainment": The presence of any performer, dancer, employee, agent, model or other person, collectively and/or individually referred to as "entertainer", in any place of entertainment as defined in Sections 5.14.010(A) or (B) who engages in any specified sexual activity (as that term is defined in Chapter 19.06 of this Code) not otherwise prohibited by local, State or Federal law, or who exposes any specified anatomical part (as that term is defined in Chapter 19.06 of this Code) not otherwise prohibited by local, State or Federal law, or who performs in attire commonly referred to as pasties or a G-string, or any other opaque covering which does not expose the areola or nipples of the female breast, and while covering the natal cleft and pubic area covers less than one inch on either side of the entire length of the natal cleft and two inches across the pubic area. Entertainment as described in this subsection shall be subject to all regulations as described in Chapter 19.06 of this Code. D. "Notice" means written notice, given by personal service upon the addressee, or, given by United States mail, postage prepaid, addressed to the person to be notified at his or her fast known address. Service of such notice shall be effective upon the completion of personal service, or upon the placing of the same in the custody of the United States Postal Service. E. "License' means a license required and issued pursuant to the provisions of this Chapter. (MC-1100, 7-23-01) 5.14.020 License-Required It is unlawful for any person, firm, corporation or association of persons, to operate, conduct or carry on any act of entertainment, public dance hall, public dance, dancing club, dine and dance club or night club, as the same are defined in Section 5.14.010 without first obtaining a license to do so as provided in this Chapter. Notwithstanding the first sentence of this section, the requirements of this Chapter do not apply to not-for-profit Internal Revenue Code §501(c)(3) religious organizations, religious assemblies or institutions, or the religious exercise of a person, or to schools, school districts and/or institutions of higher learning. (MC-1100, 7-23-01) [Rev. September 25, 2001] 5-45 5.14.030 License-Application and fees Any person required to obtain a license pursuant to this Chapter shall file a written application therefor with the City Clerk and shall be accompanied by a fee established by resolution of the City Council which shall be no mare than necessary to cover the costs of processing and investigation. 5.14.040 Application Requirements The following information shall be submitted to the City Clerk by the owner at the time of applying for a license: A. A description of all proposed entertainment business activities and anticipated occupancy; B. A site plan describing the building and/or unit proposed for the entertainmeht establishment, a fully dimensioned interior floor plan, and the following information: 1. Entry Program -For each type of event, the entry program will describe how patrons will enter the entertainment establishment, including a map of the proposed waiting line, estimated length of time a waiting line will exist, security searches or identification verification at entrance, 2. Map Showing Parking and Loading Areas - An area plan shall be submitted identifying parking areas to be used by customers, including the n~imber of spaces available, and loading areas to be used by the entertainers, 3. Security Company Staffing and Equipment -For each type of event, the number of security guards, their responsibilities and equipment to be used, 4. Maintenance Provisions -For each type of event, the need and number of trash receptacles, crowd control barriers; and sanitation facilities, 5. Clean-Up Provisions -For each type of event, description of the need for and provision of area clean-up, and 6. Noise Control Provisions -For each type of event, description of how the noise standards of this ordinance shall be met. C. The application shall contain the following information: 1. The owner's name, residence street address, and mailing address, if different, and California driver's license number and any and all aliases, 2. The name under which the entertainment enterprise is to be operated, [Rev. October 10, 2001] ~-46 3. The telephone number of the enterprise and the address and legal description of the parcel of land on which the enterprise is located, 4. The date on which the owner acquired the enterprise for which the license is sought, and the date on which the enterprise began or will begin operations at the location for which the license is sought, and 5. If the enterprise is owned and/or operated by a corporation, or other limited liability entity, or association of persons, the name of each officer and/or director of the corporation, limited liability entity, or association of persons. If the enterprise is owned and or operated by a partnership, the name of each general partner of the partnership; D. A statement under oath that the owner has personal knowledge of the information contained in the application and the information contained is true and correct; E. A statement that the owner has read and understands the provisions of this chapter. F. A statement whether the owner previously operated in this or any other County, City or State under an entertainment establishment license/permit or similar business license, and whether the owner has ever had a license revoked or suspended and the reason therefore, and the business entity or trade name under which the owner operated that was subject to the suspension or revocation; G. If the premises are being rented or leased or being purchased under contract, a copy of such lease or contract shall accompany the application. (MC-1100, 7-23-01) 5.14.050 Issue of License-Investigation A. Upon receipt of an application for an entertainment license, the City Clerk shall conduct an investigation to determine if the proposed business is in compliance with the provisions of this chapter. The investigation shall include forwarding copies of the application to the Police Department, Development Services and the Fire Department for their own independent investigation. Each department shall make recommendations as to the issuance or denial of the license and forward said results to the City Clerk within 30 days of receipt of the application. The City Clerk, shall, within 45 days of receipt of a complete permit application, approve and issue the permit if all the requirements of this section have been met. If the City Clerk determines that the application does not satisfy the requirements of this chapter, he/she shall deny the application. The applicant shall be served with written notice of the decision. Notice shall be personally served or served by deposit in the United States mail, first class postage prepaid, at the address shown on the application. Service shall be deemed complete upon personal service or deposit in the United States Post Mail. (Rev. September 25, 2001] 5-47 B. Standards for Approval of License. The City Clerk shall approve and issue an entertainment license if the application and evidence submitted show that: The operation, as proposed by the applicant, if permitted, would comply with all applicable laws, including but not limited to the City's building, fire, zoning and health regulations; and The applicant has not knowingly made any false, misleading or fraudulent statement of fact in the license application process, or on any document required by the City in conjunction therewith. 3. If the occupancy limit of that portion of the premises where entertainment is performed is greater than two hundred (200) persons, at least one security guard will be on duty outside the premises, patrolling the grounds and parking areas at all times while the entertainment is provided. An additional security guard will be on duty inside the premises if the occupancy exceeds four hundred (400) persons. The security guards shall be charged with preventing violations of law and enforcing compliance by patrons with the requirements of the chapter. No security guard required pursuant to this subparagraph shall act as a door person, ticket seller, ticket taker, or admittance person while acting as a security guard. An additional security guard shall be provided if one security guard is to be utilized for the purpose of conducting searches on patrons. Alt security guards shall be licensed in accordance with Business and Professions Code §7582, et seq. The premises within which the entertainment is located shall provide sufficient sound absorbing insulation so that noise generated inside the premises shall not be audible anywhere on adjacent property or public right-of-way or within any other building or other separate unit within the same building; All entertainment described within Section 5.14.010 complies with the additional regulations in Section 5.14.060; All signage conforms to the standards applicable in Title 19 of this Code; Every place of entertainment shall have a manager on the premises at all times when entertainment is performed; The place of entertainment must not operate or be open between the hours of two a.m. and eight a.m., however, the restriction herein imposed applies only to permitting or allowing the public to dance and to the providing of entertainment of any sort other than mechanical music between such hours and is not deemed to prevent or make unlawful the serving of meals or refreshments between such hours; and All business activities must take place within the enclosed structures, unless otherwise permitted by the City. [Rev. September 25, 2001 j 5-48 10. The City Clerk shall impose conditions prior to approval of an application which are deemed necessary by the Police Department, Development Services, and the Fire Department to insure compliance with the provisions of this Chapter or to protect the public health and safety. Such conditions shall be limited to the following: hours of operation, maximum occupancy, fire and life and public safety issues, fire suppression. exterior signage prohibiting loitering and littering, clean-up of premises, location of the business, amount and type of calls for police service in the area, exterior lighting, existence of public telephones and security guards. The conditions imposed shall include the posting of a bond or cash equivalent for the clean-up of premises, dependent upon the physical condition of past premises as a result of past entertainment events of applicant. (MC-1100, 7-23-01) 5.14.060 Additional Regulations. The following regulations shall apply to all entertainment described in Section 5.14.010(C)(3): A. No operator, entertainer or employee of a place of entertainment shall permit to be performed, offer to perform, perform or allow patrons to perform sexual intercourse, oral or anal copulation, lap or straddle dancing, fondling or stimulation of human genitals, pubic region, buttocks, or female breasts. B. No operator, entertainer or employee of a place of entertainment shall encourage v- permit any person upon the premises to lap or straddle dance, touch; caress, or fondle the breasts, buttocks, anus or genitals of any other person. C. If the place of entertainment is licensed to serve alcoholic beverages, the licensee shall abide by the rules and regulations set forth by the California Department of Alcoholic Beverage Control. D. No person shall perform for patrons any entertainment described in Section 5.14.010(C)(3) except upon a stage at least eighteen (18) inches above the level of the floor which is separated by a distance of at least six feet from the nearest area occupied by patrons, and no patron shall be permitted within six feet of the stage while the stage is occupied by an entertainer. This subsection shall not apply to individual viewing areas where the stage is completely separated from the viewing area, floor to ceiling, by plexiglass or other clear permanent barrier. E. Stage or entertainment areas shall not be open to view from outside the premises. F. Permanent barriers shall be installed and maintained to screen the interior of the premises from public view for each door used as an entrancelexit to the business. G. No exterior door or window shall be propped or kept open at any time during hours of operation; any exterior windows shall be covered with opaque [Rev. September 25, 2001] 5-49 covering a? all times. H. No person under the age of eighteen (18) years shall be permitted within the premises at any time during hours of operation. The place of entertainment shall maintain separate restroom facilities for male patrons and employees and female patrons and employees. Male patrons and employees shall be prohibited from either looking into or using the restrooms for females and female patrons and employees shall be prohibited from using the restrooms for males except to carry out the duties of repair, maintenance and cleaning of the restroom facilities. Restrooms shall not contain television monitors or other motion picture or video projection recording or reproduction equipment. J. The premises shall provide separate dressing room facilities for male and female entertainers which are exclusively dedicated to the entertainer's use. K. The licensee shall provide an entrance/exit to the premises for entertainers which is separate from the entrance/exit used by patrons. L. No entertainer shall have physical contact with any patron and no patron shall have physical contact with any entertainer while on the premises. M. All areas of the place of entertainment accessible to patrons shall be illuminated at least to the extent of two foot-candles (measured as units of illuminance), minimally maintained and evenly distributed at ground level. N. Individual viewing areas shall be operated and maintained without any hole or other opening or means of direct communication or visual or physical access between the interior space of two or more individual viewing areas. O. No individual viewing area may be occupied by more than one person at any one time. P. All individual viewing areas shall be physically arranged in such a manner that the entire interior portion of the individual viewing area is directly visible from aisles and public areas of the premises. Visibility into the individual viewing rooms shall not be blocked or obscured by doors, curtains, partitions, drapes, or any other obstruction whatsoever. Q. No patron, guest or invitee shall directly pay or give any gratuity to any performer, dancer, employee or model and no dancer, performer, employee or model shall solicit any pay or gratuity from any patron. R. No owner or other person with managerial control over an Adult Business (as that term is defined in Chapter 19.06 of this Code) shall permit any person on the premises of the Adult Business to engage in a live showing of the human male or female genitals, pubic area, or buttocks with less than a fully opaque covering, and/or the female breasts with less than a fully opaque covering over any part of the nipple or areola and/or covered male genitals in a discernibly turgid state. This provision may not be complied with by applying an opaque covering simulating the appearance of the specific anatomical part required [Rev. September 25, 2001] 5-50 to be covered. 5.14.070 License-Nontransferable-Posting No entertainment establishment license shall be sold, transferred, or assigned by any license holder, or by operation of law, to any other person, group, partnership, corporation or any other entity, and any such sale, transfer or assignment, or attempted sale, transfer, or assignment shall be deemed to constitute a voluntary surrender of such license, and such license shall be thereafter null and void. A license held by an individual in the name of a corporation or partnership is subject to the same rules of transferability as contained above. License shall be valid only for the exact location specified in the permit. Each license shall be posted in a conspicuous place in or upon the premises for which it is issue, and shall be shown to a.ny City Official upon demand. 5.14.080 License-Fee. A. For every person, firm, corporation or association of persons conducting, operating, managing or carrying on a public dance, dance hall, dancing club, dine and dance club or night club as the same are defined in Section 5.14.010, the license fee shall be at the rate set by resolution adopted by the Mayor and Common Council. B. Every person, firm, corporation or association of persons operating, conducting, or carrying on a public dance where the owner, manager or operator does not operate, conduct or carry on a public dance at least one night in each month, shall pay a license fee at the rate set by resolution adopted by the Mayor and Common Council. 5.14.090 License-Duration. Licenses issued pursuant to this Chapter shall be valid for a period of one year or until revoked or abandoned. 5.14.100 Exemptions from filing, processing and license fees A. A bona fide church, nonprofit organization or charitable .organization recognized as such under state law, bona fide lodge, fraternal organization or fraternal society which carries on such dances solely for the amusement or entertainment of its bona fide members, or for the purpose of securing funds for such organization for its own operating needs or for charitable purposes, shall be exempt from payment of filing, processing and license fees. 5.14.110 Suspension/Revocation of license The City Clerk shall suspend or revoke a permit issued under the provisions of this chapter for any of the following reasons: A. The licensee has ceased to meet the requirements for issuance of license; B. The applicant gave materially false, fraudulent or misleading information on the application; (Rev. September 25, 2001] 5-51 C. The operation, as conducted by the licensee, does not comply with all applicable laws, including, but not limited to, the City's building, fire, zoning and health regulations; D. Excessively loud music or noise from the establishment for which the permit was issued interferes with the peace and quiet of the neighborhood; E. The place of entertainment has been operated in violation of any of the requirements of this chapter. F. The license holder is convicted of a felony or misdemeanor occurring upon, or relating to the premises or lot upon which the place of entertainment is located which offense is classified by the State as an offense involving any sexual crime against children, sexual abuse, rape, distribution of obscene material or material harmful to minors, prostitution or pandering, including, but not necessarily limited to the violation of any crime requiring registration under California Penal Code 290, or any violation of Penal Code Sections 243.3, 261, 261,5, 264.1, 266, 266a through 266k, inclusive, 267, 286, 286.5, 288, 288 a. 311 through 311.10, inclusive, 314, 315, 316 or 647; or G. If any person or persons is (are) convicted of a felony or misdemeanor for an offense set forth in subsection (F) of this section as a result of such person's activity on the premises or property on which the place of entertainment is located, and the person or persons were employees, contractors or agents of the place of entertainment at the time the offenses were committed. 5.14.120 Appeal A. Any applicant aggrieved by the decision of the City Clerk with reference to the issuance, conditional issuance, denial, suspension, or revocation of a license, may appeal to the Hearing Officer for the City of San Bernardino, appointed by the Mayor. B. The right to appeal to the Hearing Officer from the denial, suspension or revocation of any license required by this chapter shall terminate upon the expiration of fifteen (15) days following the deposit of a certified letter in the United States Post Office advising the applicant of the action of the City Clerk and of his or her right to appeal such action to the Hearing Officer. C. The hearing shall be held within twenty (20) days of the receipt by the City Clerk of the appeal, or at the next regularly scheduled meeting of the Hearing Officer, whichever is sooner. D. The Hearing Officer shall render his/her decision within five days from the date of the hearing. Said decision shall be sent by certified mail. Any applicant aggrieved by the decision of the Hearing Officer shall have the right to appeal to the City Planning Commission. The right to appeal to the City Planning Commission shall terminate upon the expiration of fifteen (15) days following the deposit of said decision by certified mail and advising the applicant of his or het right to appeal such decision to the City Planning Commission. 'The appeal hearing before the City Planning Commission shall be held within twenty (20) days of the receipt by the City Clerk of the appeal request. The [Rev. September 25, 2001] 5-52 Planning Commission shall render its decision within fourteen (14) days from the date of the hearing. The decision of the Planning Commission shall be final and conclusive and shall not be subject to appeal to the Mayor and Common Council. Pursuant to Code of Civil Procedure Section 1094.6, any action to review the decision of the Planning Commission shall be commenced not later than the ninetieth day after the Planning Commission's decision is rendered. E. The Planning Commission shall take all lawful steps to insure that any applicant aggrieved by its decision shall be afforded prompt judicial review of said Planning Commission's decision. (Ord. MC-1059, 10-4-99; Ord. MC-1058, 9-20-99) 5.14.130 Licenses and Fees Not Exclusive Fees and licenses required by this chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. 5.14.140 Exceptions The provisions of this chapter shall apply prospectively and shall not operate to revoke any valid live entertainment license in effect as of the date of the ordinance codifed in this chapter. The provisions of this chapter shall not be deemed to require an entertainment license for the following: A. For the use of a radio, record player, juke box or television receiver in any establishment; B. For the use of a piano or organ in any establishment; C. For any entertainment provided for members and their guests at a private club where admission is not open to the public; D. For the playing of background music by any electronic means or instrument in conjunction with the service and consumption of food. 5.14.150 Severability In the event that any provision of this Ordinance, or any part thereof, or any application thereof to any person or circumstance, is for any reason held to be unconstitutional or otherwise invalid or ineffective by any court of competent jurisdiction on its face or as applied, such holding shall not affect the validity or effectiveness of any of the remaining provisions of this Ordinance, or any part thereof, or any application thereof to any person or circumstance or of said provision as applied to any other person or circumstance. It is hereby declared to be the legislative intent of the City that this Ordinance would have been adopted had. such unconstitutional, invalid, or ineffective provisions not been included herein. 5.14.160 Penalty Any person who violates, neglects, or refuses to comply with, or assists or participates in any way in the violation of any of the provisions or requirements of this [Rev. September 25, 2001] 5-53 Ordinance or of any of the provisions or requirements of any Entertainment License, shall be guilty of a misdemeanor. (Ord. MC-1050, 7-12-99; Ord. MC-1051. 7-19-99; Ord. MC-1052, 7-19-99) Chapter 5.16 FIRE, REMOVAL OR CLOSING-OUT SALES` Sections: 5.16.010 Definitions. 5.16.020 Examination and investigation of records and accounts. 5.16.030 Permit-Required. 5.16.040 Permit-Application-Fee. 5.16.050 Permit-Application-Endorsement-Record to be kept. 5.16.060 Permit-Application-False statements. 5.16.070 Permit-Issuance. 5.16.080 Permit-Supplemental to original permit. 5.16.090 Permit-Duration. 5.16.100 Permit-Revocation-Grounds and procedure. 5.16.110 Removal of goods -Loss of identity. 5.16.120 Certain goods not to be sold. 5.16.130 Purchase of goods prior to sale. 5.16.140 Addition to stock not permitted. 5.16.150 Advertising-Permit required. 5.16.160 Exemptions. 5.16.170 Applicability of Chapter. 5.16.010 Definitions. A. For the purpose of this Chapter only, "fire, removal or closing-out sales" means any sale of goods, wares or merchandise as a fire, damage by fire or water, removal, close-out, liquidation, bankruptcy or other similar sales of goods, wares or merchandise, but which sale shall not include sheriffs, constable's or other public court officer or person acting under the direction, license or authority of any court selling goods, wares or merchandise in the course of their official duties. B. For the purpose of this Chapter only, "close-out -removal" means and refers to the closing out of a merchant's entire business as distinguished from lines of merchandise. C. Where ever the words "Mayor and Common Council, Common Council, City Council or Council" appear in this chapter, said words are defined and mean the City Clerk of the City. It is the legislative intent of this subsection to delegate each of the duties and responsibilities of administering the fire, removal and close-out sales provisions of this chapter, and of the granting of 'For additional provisions and license fees for fire, bankrupt or wreck sales, see also §5.04.265 of this Title. Rev. September 25, 2001] ~-54 w-im nlC A *'~ F~OtR OFFICE_USE ONlY - NOT~~A Pi1Bl1C DOCUMENT *; s~M ' ~vvUX -. a z~3~ v .R3 ~~" r.. _. a ~4'fi ~ r ` ~ '- '` ~ 'CITY OF SAN BERNARDINO =CITY CLERK'S.OFFICE ..:`, "` RECORDS & INFORMATION IiAJ1NAGEMENT PROGRAM `:~~ ` AGENDA ITEM TRACKING FORM tvteeting Date/Date Adopted: ~ GZ-- Item No. / ~~ Resolution/Ordinance No. G Ordinance Urgency: Yes // No I Effective Date: ~-I9-~~' Terrnination/Sunset Date: ~ ~~ S r1 Vole: Ayes: n(-7 Nays: Abstain: Da[e Sent to Mayor: ~ ~ Z_ Oate of Mayor's Signature: ~~~-G~O 2_- Oate Summary Sent to Attorney: ~ Date Published: a 4 L~ Meeting Type: ~^~ Continued From/To & Item Date Returned from Date of Clerk's Date Summary Returned Date Seal 2//O 3 e/O Date Sent for Expiration Copies Dj Exhibits Complete & AttacF~ea Reminder Letter Sent: Reminder Letter Sent: Reminder letter Sent: Request for Council Action & To Whom: to Resolution/Ordinance: Report Atta hed: Yes No ~]~~n 7- Ready to File: Date: rxx:uraevT LOCATION FpRMYA/nAa bn Tnd~in{ ram -CC Fam NS l I l - IaN UpGa2 IbOY1996 1 1 t ADVERSE SECONDARY EFFECTS STUDIES REGARDING ADULT BUSINESSES 1. Gazden Grove, California 1991 2. Indianapolis, Indiana 1984 3. Los Angeles, California 1977 4. Dallas, Texas 1997 5. Austin, Texas 1986 6. Phoenix, Arizona -1979 7. Houston, Texas 1983 8. Houston, Texas 1997 9. Saint Paul, Minnesota 1983 ENDA I M IF 29 August 5, 2002 HE/cj[Adverst.tab] ~~ r r ADVERSE SECONDARY EFFECTS STUDIES REGARDING ADULT BUSINESSES 1. Garden Grove, land use secondary effects study 1991 (Report: Relationship Between Crime and Adult Business Operations on Garden Grove Boulevard) Based on extensive statistical analysis of Garden Grove's crime data, a survey of real estate professionals, and a survey of City residents living close to the currently operating adult businesses, the Report concludes that crime rises whenever an adult business opens or expands its operation and the change is statistically significant, especially in the most serious crimes such as assault, robbery, burglary, and theft. Real estate professionals overwhelmingly agree that close proximity of adult businesses are associated with decreased property values, increased crime and other negative impacts on the quality of the neighborhood. Residents who live near adult businesses associate them with ~ increased crime and other negative impacts on the quality of the neighborhood. 2/3. An Analysis of Adult Business Studies in Indianapolis, Indiana (1984) and Los Angeles, California (1977) Crime statistics show that all types of crimes, especially sex-related crimes, occur with more frequency in neighborhoods where sexually oriented businesses are located. Sex-related crimes occur more frequently in predominantly residential areas than in azeas that are substantially commercial in nature. The presence of sex oriented businesses is consistently and strongly associated with perceived decreases in value of both residential and commercial properties in the opinion of real estate appraisers and lenders. The negative impact is greater for residential properties than for commercial properties. Property owners and businessmen surveyed in the Los Angeles study azea cited the following adverse effects resulting from adult entertainment establishments located neaz their properties or businesses: difficulty in renting office space, difficulty in keeping desirable tenants, difficulty in recruiting employees, limits hours of operation, deters patronage from women and families, and generally reduces business patronage. HE/cj[Adversttab] .• 4. Dallas, Texas land use secondary effects study 1997 (An Analysis of Effects of SOBS on the Surrounding Neighborhoods in Dallas, TX.) Evidence such as high rates of police calls from SOBS (Sexually Oriented Businesses) and reseazch that showed a higher number of crime arrests (including rape, prostitution/commercial vice, and other sex offenses) where SOBs were concentrated versus azeas where SOBS were spaced more than a '/2 mile apart lead to the theory that there are increased crime arrests and disturbances requiring police presence azound SOBS and significantly more crime when there is a concentration of SOBS in one area. Real estate brokers active in Dallas azeas reported that SOBS "aze perceived to negatively affect nearby property values and decrease market values." In addition, interviews with real estate professionals revealed that the location of multiple SOBS in one neighborhood can have a major impact on the neighborhood by contributing to crime, driving away family-oriented businesses, and impacting the neazby residential neighborhoods. When concentrated, SOBS typically compete with one another for customers through lazger, more visible signs, and graphic advertising. Investors and lenders aze unwilling to invest in new improvements in azeas near SOBS and vacant land often sits idle for years. Single-family homes in areas near SOBS frequently end up as rentals because the families move away from the SOB-dominated azea and it becomes exceedingly difficult to sell such houses. 5. Austin, Texas land use secondary effects study 1986 (Report by Of£ce of Land Development Services, City of Austin) Sex-related crime rates in azeas with adult businesses were two to five times higher than city- wide averages. There appeazed to be a severe decline in residential property values located within one block of an adult business site. An analysis of trade area chazacteristics of adult businesses showed that they tended to attract a regional rather than local clientele. 6. Phoenix, Arizona land use secondary effects study 1979 (Study by: Planning Department for City of Phoenix) Crime statistics show that all types of crimes, especially sex-related crimes (mainly indecent exposure), occur with more frequency in neighborhoods where sexually oriented businesses aze located. 7/8 Houston, Texas land use secondary effects study 1997/1983 (Houston City Council: Sexually Oriented Business Ordinance Revision Committee Legislative Report) Because of the criminal activities that are associated with SOBS, the Committee determined the necessity of licensing all SOB entertainers and managers. Also, testimony requested that HE/cj[AdversLtab] notification of a pending SOB permit be given to surrounding neighbors of proposed sites. Amortization provisions were also found preferable to grandfathering sexually oriented businesses. Vice officers testified that because they do not engage in inappropriate behavior (such as removing their clothing), convictions aze difficult to achieve. Sexually oriented businesses that don't have clear lines or vision encourage lewd sexual behavior or sexual contact. Many businesses aze designed with areas that are out of the view of managers and aze conducive to illegal behavior. Inadequate lighting prevents managers and police officers from monitoring illegal activities. Enterprises that had locked rooms were often used as fronts for prostitution. 9. Saint Paul, Minnesota secondary effects study 1983 (Study by Saint Paul Department of Planning & Economic Development) The Study examines adult saunas, adult massage pazlors, adult theaters, adult bookstores, and adult live entertainment and makes recommendations to regulate their location. HE/cj[Adversttab] Final Report to the City of Garden Grove: T'he Relationship Between Crime and Adalt Business Operations on Garden Grove Boulevard Richard AicCleary, Ph.D. James ~i'. A4eeler, J.D., Ph.D. October 23, 1991 ~. REDFIV~D %~ ~. Table of Contents L Introduction and Executive Summary 1 _ II. Legal Requirements For Controlling Aduli Entertainment Businesses 7 III. Clime 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 tLe Pubilc Safety Haxard 22 Table 2 23.1 V. Quasi•Experimenul Contrasts ~ VI. Survey of Real Elute Professionals 33 VII. Household Survey 39 VIII. Conclusions 47 Appendices Real Elute Survey Frequencies A.9 Household Survey Frequencies A13 Real Estate Insnvment Household Instrument Proposed Solute ~. I. Introduction and Executive Summary This report summarizes an exhaustive xries of statistical analyses conducted over area-month period by Richard McCleary, Ph.D., James W. Meeker, J.D., Ph.D., cad five research assistants. This document prexnts the statistical analyses that we fell 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, deceased property value and decreaxd quality of life. It is constitutionally important that the Gry of Garden Grove bax nay restrictions on adult businesses on thex so called "xcondary effects" sad not upon the content or moral offensiveness of such businesses. We are confident that nay independent reanalysis wt7l reach similar conclusions. In July, 1990, we were contacted by the Ciry Manager's Office and Police Department far advice on problems related to the operation of adult businesses w Garden Grove Boulevard. After years of experience with thex businesxs, the Police Department had come to suspect that their apention constituted a public safety hazard. Partly in response to this situation, the Ciry had adopted a zoning ordinance which restricts the location cad density of adult businesses. Ia order to withstand constitutional scrutiny, the City needs to be able to show that the ordinance was baxd on the negative xcondary effects such businesses have on their surroundings and not on the content of thex busincsses or their morality. The precise dimensions of the negative impact of thex businesses were unknown, however. It was not clear that the superficial spatial relationship between crime r Consultants' Fnal Report -Page 2 s.; . and these businesses was statistically significant, for example; sad if the relationship war significant, it was not clear what aspect of the operation was respoastble for the hazard. The exact ezteat 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 Ciry Manager's Office and the Police Department during the summer and fall of 1990, and afar reviewing several studies conducted by otber cities to }ustify zoning rrsttictions on adult businesses, it was decided that we would assist the Ciry in nadertakiag its owv 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 Ciry residents living close to the currently operating adult businesses. The study vas designed to focus on the following questions: • Does crime increase in the vicinity of as adult business? ]f so, is the inaease statistically significant and does ii cottstitute a public safety hazard? ® • Caa the public safety hazard be ameliorated by requiring a miait<tum i distance between adult businesses? What is the required minimum distance? • Are there a~ otber practical zoning restrictions that would ameliorau the public safety hazard? • Are adult businesses associated with a decease in property values? • Are adult businesses associated with declining quality of neighborhood? We agreed to conduct the surveys and appropriate statistical analyses under 1 `~- Consultanu' Final Report -Page 3 three conditions: First, we could expect to have aDy public data held by the Police Department or the Ciry Manager's Office; second, we could expect the full co- operation of the Police Department aad the City Manager's Office; and third the City would accept any and all findings regardless of their implications for past, present, or future polity. These conditions were accepted in principle aad ' honored in practice. We enjoyed as extraordinary degree of autonomy and co- operation from both the Police Deparmtent and the City Manager's Office. In November, 1990, we began working with rite Police Department to define the parameters of the criate data to be analyzed. The complete set of criate 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 Statistic 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 crime eveau. We were eventually able to measure the relevant distances fora subset of 34,079 crimes to within 40 feet of the actual occurrence with" 99 percent confidence. In late January through Apn1, 1991, these distances were ana}yled is ~ various models aad with various methods. The results of these analyses show that: I Consultanu' Fnal Report -Page 4 • Crime rises whenever an adult business opens or expands iu operation and the change is statistically significant The rise is found in the most serious crimcs, especially assault, robbery, burglary, and theft The rise in 'victimless" crimes (drug and alcohol use, sex offenses, ac.) is also significant, though less consistent and interpretable. Given the nature and magnitude of the effecu, the adult businesset on Garden Grove Boulevard constitute a sersoter public safrry hazard • Except for expansions, the adult businesses acre in operation at their present locations on Garden Grove Boulevard prior to 1981. Then has been so little variation in spatial density since rhea that the rdarionship buwetn drnsirv and crime cannot be duerminrd • Architectural devices designed to ameliorate the nuisance of these businesses have no significant impact on aime. • When an adult business opens wzthia 1000 feet of a tavern (or vice versa) the impact of the adult business on aime is aggravated substantially and significantly. ~ During this same period of time, two questionnaire instruments were developed and administered. Ia January :ad February. 1991, a sample of real estate professionals was surveyed. Over nine hundred questionnaires were dutnbuted with a response rate of fifteen peraat. The resa}ts of this survey show that: • Rea] estate professional; overwhelming agree that close preodmity of adult businesses are associated with decreased property values for commercial, single-family residential and multiple-fimtly residentia] property. • Real estate professionals associatt the close prordmity of adult business with iaaeased tame and other negative impacts oa the gaaliry of the neighborhood. During the spring and summer, 1991, a random sample of households living near the adult businesses was surveyed The resulu of this survey show that: Consultanu' Fnal Repoli -Page 5 • Residents who live near adult businesses, as well as those who live farther away, associate adult businese with iaaeased crime and other negative impacts on the quality of the neighborhood. • A large proportion of residents who live near adult businesses report personal negative experience that are attabuted to these businesses. • Public support for regulation of adult businesses is overwhelming. e While virtually all segments of the community voice support for all regulatory initiatives, home owner and women are the strongest supporters of regulation. Each of these findings is fully supported by every bit of data avat7able to us and by every analysis that we conduced. The crime data and analyses underlying our four major research tasks are: desrnbed in subsequent sections. Most reader well be more interested in the polity recommendations based on these analyses, however. Based on the four major components of our research, we recommend that: ~ • LaeTdrtg any conclusive ts~denee on the relationship betwren spatial derzriry artd crime, There is rto reason to chmrge the eurrrtu 1000 foot minimum spacing requiremtnr between two adult businesses. • Given the serious public safety hazard. no adult busituu should opcau within 1000 feet of a resuientx. • Rrhere feast3le, the Ca~rtditional Use Permit p-iocess shorsld br used to ameliorate the public safety hazard For optimal effeaivrness, the Police Dcparmttnt must be fully involved in every aspect of this process. • Givrn the fnteraaion effect, no tavern should bt allowed to optrau within 1000 feet of an adult business and via vcna. • The tvidcnce dearly 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 federnl and state case Inw ~'d Consultants' Fnal Report .Page 6 These recommendations are informed by as understanding of the legal foundation of the problem. After developing that foundation is the following section, we present our analyses of crime patterns is Garden Grove and two related opinion surveys Consulunu' 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 Cotttmission on Obscenity and Pornography overwhelmingly voted to eliminate all legal restrictions on ux by consenting adulu of sexually explicit books, magazines, pictures, and films.' While President Nixon, who appointed the Commission, was not pleased wttb the findings, they were eonsisunt with the general ]beral view that pornography should be tolerated as a matter of individual choice and taste unless it directly harms other.2 The Wt7liams Committee in England supported a similar position in 1479.' 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 doctrina] standard that governs the difficult balance of constitutionally protected flee speech and the direct regulation of pornography, is ' Reporr of the Commission on Obsceairy and Ptrnography (Bantam Boola, 1970. ' See DA Downs, T7u New Politics of Pornography (University of Chicago Press 1989). ~ See W.A. Simpson, Pornography and Politics: Rcport of the Xome Office (Waterlow Publisher, 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, applying contemporary community .standards' would 5nd that the work, taken as a whole, appeals to the prurient interest; (b) whether the work depicts or desrn'bes, 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 dnmaticaJ}y, the materials that are available today are more sexually explicit and portray more violence than those available before 1970. The production, distrtbutton and sak of pornography has become a large, weD-organized wad highly profitable industry.° Indeed, there is some empirical evidence to suggest that the number of prosecutions° wad appeals' of obscenity coatiictions have declined nationwide.° Recently much of the local convol of pornography has been of a more indirect nature given the difficulties of direct regulation wad legal constrainu involving Fint Amendment rights. Oae 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. `The New York Obseeniry Project, "Aa Empirical Inquiry is m the Effects of M1Iler v. California on the Control of Obscenity", New York University Law Review 52:843 (1977). R.E. Riggs, "Miller v. California Revisited: Aa Empirical Note," Brigham Young University Law Rttiew 2:247 (1981). ° See generally Downs, supra, note 2 at 20. Consultanu' 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 opposiu tactic by dispersing adult entertainment businesses, preventing their concentration, often called the Detroit approach." In Boston, adult entertainment businesses had been unofficially concentrated is a specific area of the city for many years.u 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, see. 3, subd. (gg), (1). 10 See Dowru supra note Z " For a general discussion of these two approaches see PLiamag Committee of ,,~ the I.os Attgeles City Cwnct7, Strtdy of rltt Effects of tht Concatvcnon of Adrtlr Enterainment Fsrabtishmenu In :he City of Las Mgelrs, I.os Angeles City Planning Department (June, 1977) (Hereinafter LA Study). 12 This discussion of Boston and the "wmbat zone" approach is taken from the LA Study id., at 9-10. ~. Consultants' Fnal Report • Page 10 where they were deemed inappropriate. Ia 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 bas been some question as to the effectiveness of this regulatory approach, as the L4 Study obsernd: The effectiveness and appropriateness of the Boston approach is a subject of controversy. There has been some indication that it has resulted is an increase in crime within the district and there is an increased vacanry rate in the surrounding office buildings. Due to complaints of serious criminal incidents, law enforcement activities have been iaaeased and a ttt~ber of liquor licenses is the area have been revoked. Siaee the "Combat Zone" and most of the surrounding area arc part of various redevelopment projects, however, the change is character of the area cannot be attnbuted solely to the erostenee of "adult entertainment" businesses." The other approach that municipalities have followed is the dispersement model, sometimes called the Detroit model. 1n 19T1 Detroit modified an "Anti- Skid Row Ordinance" to provide that subject to waiver, an adult theater could not be located azthin 1,000 feet of any two other "regulated uses" or within S00 feet of a residential area. Regulated uses applied to tea different kinds of business establishmenu including adult theaters, adult book stores, cabarets, bars, taro dance balls and hotels. This statutory zoning approach to regulating adult business was legally challenged and subsequently upheld by the Supreme Court as L ~'- uId.,at9. Consultants' Final Report -Page 11 constitutional in Young v American Mini 77uvtres, Inc" This model has been adopted by numerous cities including Los Angela and twelve other Southern California cities for controlling adult businesses.u 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 77tetures). This decision is often cited as the legal basis for a dispersal approach, however the opinion appears to support the constitntionaliry of both the dispersal and coaeennation models: It is not our function to appraise the wisdom of its [Detroit's) decision to require adult theater 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 opportuairy to experiment with solutions to admittedly serions problems (427 U.S. 50, 71). Indeed the Supreme Court upheld the Constitutionaliry of the concentration model in Rauon, 'Cilia may regulate adult theaters by dispersing tbem, as in Detroit, or by effectively concentrating them, as in Renton "(infra note 16 at 52). 1D The best single source for information oa this topic is the Los Angeles City Council Planning Committee. According to the I.A Study: Locally, the cities of Bellflower and Norwa& have enacted ordinances requiring adult bookstores and theaters to obtain a conditional nse peratit As apart of their study the City of Bellflower surveyed aver 90 cities in Southern California to detet~tiae how other cities were controlling adult bookstores. Of the cities which responded td the Bellflower survey, 12 require a conditional use permit for new bookstores.. The conditions for obtaining such a permit generally include dispersal and distance requiremenu based upon the Detroit model. Bellflower also includes. (L4 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). !"" i,. Consultants' Final Report • Page IZ _` such zoning laws. In Renton v Playtnne 77uatres, Inc'" the Supreme Court held such statutes cannot be enacted for the purposc of restraining speech but have to be "content-neutral" time, place, and manner regulations designed to sern a substantial governmental interest and not unreasonably limit alternative avenues of communications. Ia 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 im~alid. Buz,. ff 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 faaars, from the e~~dence the municipality offers to support a finding of secondary effects, to whether the zoning statute eliminates the passtbtliry of nay adult businesses within the jurisdiction of the municipality. It is the first factor this report is primarily concerned with.t' In the Mini 71:earra case the Detroit Common Council made a finding that adult businesses are especially injurious to a 76 475 U.S. 4I (I986)(Hereinafur Renton). r' Even if an ordiaantx were enacted for the proper reasons the ooutt sts11 must determine whether the ordinance would effectively prevent arty operation of an adult business within the municipality's jurisdiction, see Wclnut Proparics, 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 sU71 allow the operation of adult businesses in various locations throughout the city. Consultaau' Fnal Report -Page 13 neighborhood when they are concentrated. This Ards supported by expert opinion evidence: In the opinion of urban planner and real estate experts who supported the ordinances, the location several such businesses in the same neighborhood tends to attract an nadesirablc quantity and quality of transients, adversely affects property values, causes an increase in crime, especially prostitution, and encourages residents and businesses to move elsewhere.'" 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 effecu with the way the ordinance is enforced, is insufficient" On the other hand, a complete independent analysis of secondary effects in each jurisdiction that enacts such laws is not necessary. In Renton the Supreme Court upheld an ordinance without benefit of an independent analyrsis. 'j Mini Zfrtatru supra note 18 at 55. ""Here, the County has presented no evidence that a single showing of an adult movie would have nay harmful secondary effects on the coatmunity. 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 atffideatly "'narrowly tailored' to affect on]y that category of theatres shown to produce the unwanted secondary effecu." Renton 106 S.Ct at 931. Nor do we see how the County could make such a showing, since it is diffieah to imagine that only a single showing even- or Daly vac in a rear, would have nay meaningful secondary effects." Tollit, Inc v San Bartmdato County 8Z7 F.2d 1329,1333 (9th Cir. 1987). • so City ojRenton v. Playtime Thtatru, Inc, 475 U.S. 41, 106 S.Ct 925, 89 LEd.2d 2x(1986). ', ~ Consultanu' Final Report -Page 14 In this case the City of Renton relied heavily upon the study of secondary effects done is 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 [Nonhad Cinrmq Inc v Startle, 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 cin~ 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,= to support a spacing ordinance similar to the Detroit dispersal model. Since Garden Grove's ordinance follows the same mode] it may have been legally sufficient for the Ciry •of Garden Grrne to rely on the Los Angeles study. However, the Los Angeles study is I9 years old and it could be argned that because of iu size, population structure, real estate market, and other municipal characteristics, Los Angeles is not a good comparison eiry for Garden Grove. Like the I.4 Studyx' this analysis relies on a multimethodological approach to analyze secondary effecu associated with the location of adult businesses. Both an analysis of crime rates and surveys were conducted to analyze secondary effecu _' Rtnlon, id., 475 U.S. 41 at 51-52. t ~ See LA Stc~dv supra note zr Supra note 11. J Consultants' Final RGpOrt .Page 15 '~. associated with such businesses. Unlike the LA Study this analysis is more sophisticated in several respects. The LA Srudv examined the xcondary effect of crime ntes and their association with adult business by comparing the txime ntt:s of Hollywood area (which had a lazge concentration of adult businesses during the period studied, November 1975 aad December 1976) to the rest of the ciry.r' This analysis did show there was an increax in both Part I~ and Part II~ crimes associated with the Hollywood area and iu higher concentration of adult businesses is comparison to the rest of the city. While supporting the prexnce of secondary effects, the analysis has xvenl disadvantages for supporting a dispersion regulation model is Garden Grove. The City of Garden Grove is not very simtlar to HoIlyarood, either is municipal character, or concentration aad type of adult businesses.r' More u The anahsis presented is the U Study was taken from a report prepared by the Los Angeles City Police Department, ?he Impact of Sez Oriented Bttsinetses on the Police Problems in the City of Los Angles. a Part I crimes include homicide, npe aggravated assault, robbery, burglary, larceny, aad vehicle tbeft a6 Part I1 crimes include other assaults, forgery and counterfeiting, embealement and fraud, stolen Property, pratitittttion, aaraotia, liquor Iawviolations, gambling, aad other miscellaneous misdemeanors. r Hollywood in 1969 had 1 hard-tort motel, 2 bookstores, 7 theater, and 1 massage parlor/scam joint; in 1975 had 3 bard-core motels, 18 bookstores, 29 theatres, and 38 massage parlor/scam joints.(see LA Studv, Table VI, p. 54). Garden Grove on the other hand only has xven bookstores and adult video stores. _.. r Consultants' Final Repoli -Page 16 importantly, Garden Grave xeks to control adult businesses in terms of thew ~ location to schools, churches, and residence (200 feet) and in relation to each other (1000 feet) s To substantiate the relation between ibex distances and the xeondary effects needed to justify the regulation, the analysis should demonstrate an association between the xcoadary effects and tbex distances. Fot example, if crime rates are higher within 1000 feet of an adult business than they are around t other businesses, this demonstrates a stronger association between xcondary effects and the regulation designed to control them. While areas of a city that have higher concentrations of adult businesses may have higher crime rates than other areas, this gives ]ittle support for regulation of specific distances between adult business and other land uses. O The 1A Snidv also presents the analyxs of two gnestiomsaires, aac to businessmen and residential property owners, and one to realtors, real estate appraixrs and lenders, to determine the effects of adult businesxs. While the questionnaires do ask the respoadenu about possible negative effects, there was no distinction between the negative effecu when the distances from adult businesses varied, nor when there were two or more such business looted near each othcr. Both of these issues are important aspects of the Garden Grove ordinance. ~ See Appendix for the Garden Grove ordinance. "I Consultanu' Final Report -Page 17 'S.~ IIL 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 (lI2 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 ordinan'Iy 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 np 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 strung relationship between the distribution of Part II crimes (especially Part II sex offenses) and the locations of adult businesses, we nnnot draw a valid causal relationship from this finding. Part I crimes are quite another matter. As shown is Figure 1. Part I aimes can be divided further into Personal and Property categories. Personal crimes (or crimes against the person) account for approximatel}• twenty percent of the Part I total. Seventy-eight percent of Personal crimes are assaulu; 18 percent are robberies, three percent are rapes, i. i 1 ~~...., 1 Consultaats' Fiaa! Report - i~ 17,1 Fgure 1 -Distribution of Crimes in Garden Grove, 1981-1990 Total Crime P.rt ~ PrOt 67x. Part I Personal p~M L[1 •Oi~Y' 10077 ri II 77• 70DM y 363 MOIIwGO~ P.$ TMtt Stp3 Part II •leelni =•Ypa ~~ ~I..:~ :7~ ,,,..:, r.6:, Part I Property eYra.rY 7a~pB hItOTMtt 11tZ7 Pt,rt tl 5•~ Z67B Consultanu' 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 thefu, Z8 percent are burglaries, nerd 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 quick}y turn into a deadly confrontation. While subsequent analyses may distinguish among the seven crimes then, we do this for didactic purposes only. Ia our opinion, in practice, any Part I crime poses a serious threat to public safety. With this covets, we note that the mix of crimes is Garden Grove is not significantly different than the mix found is other California cities during the same period. This is also true of population-adjusted crime rates. Relative to other California cities, Garden Grove has aeithcr a "high" or 'low' crime rate.' To illustrate this point, Table 1 lieu ffie 1985 Part I crime rtes for twenty-four representative cities. Garden Grove ranks siightly above the median on homicide _ and auto theft, and slightly below the median an rape, robbery, assantt, btagiary, ~ The Garden Grove Police Deparmtent 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 dcpartment is structured along more traditional lines. Consultants' Fitsal Report -Page 18.1 Table 1 -Crimes per 100,000 Population for California Cities, 1985 !J Homicido Rape Aucult Robbery Burglcry Thtft Atuo Anaheim 7.3 48.8 273.8 199.6 2351. 4348. 777. Bakersfield 6.6 653 567.2 4895 3651. 6649. 796. Berkeley 10.6 41.6 638.7 4355 2836. 7971. 841. Coacord 2.9 27.9 3022 2583 1376. 4076. 430. Fremont 23 25.8 652 372.1 1354. 2969. 265. Fresno 212 81.8 566.9 392.7 363?. 7745. 81?. ~ Fullerton 4.9 3?3 168.2 2015 1503. 4071. 503. Garden Grove 10.5 38.1 325.2 293.6 2159. 4030. 693. 'Glendale 2.9 1?.2 189.1 1402 1378. 2940. 663. Hayward 6.4 388 267.1 .405.0 1809. 4926. 503. Huntington Beach 2.4 2?.3 100.9 147.8 1378. 2883. 450. Inglewood 28.7 1L6 12362 630.8 2417. 2586. 1660. 1 Modesto 4.7 52.4 187.0 276.7 1979. 6139. SOS. Ontario 9.0 76.6 327.6 713.8 2821. 4088. 699. Orange 55 25.2 219.8 247.1 1712. 3540. 602. O~mard 6S 61.9 294.8 300.4 2008. 3984. 527. Pasadena 24.6 49.1 596.3 5903 2262. 5110. 921. Pomona 25.9 9?.7 907.9 1035.1 3155. 4337. 911. Riverside 8.2 57.4 340.0 6905 2628. 4849. 570. San Bernadiao 143 87.6 8763 9142 3783. 5295. 1127. Santa Ana 162 28.9 424.0 294.6 2498. 6612. 1134. Stockton 182 61.4 475.4 497.7 3347. '7937. 739. Sunnyvale 4.7 272 77.9 100.4 759. 2544. 245. Torrance 3.1 288 254.9 2025 1150. 3024. 865. Source: Uniform Crime Reports, 1985 r Coasultaau' 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. Wht7e Gardea Grove has an °average" crime rate relative to other cities, however, like nay other city, Garden Grove has a range of "high" and Saw" crime neighborhoods. We wt71 address this point in greater detat~ shortly. For the present, it is important to note that crime rates vary widely across any dry. Crime rates also vary widely over time. To Illustrate again, Figure 2 shows annual Part I and Part II crime totals for Gardea Grave aver the decade of this study, 1981-1990.70 In some cases, auto theft and assault, for example, crime appears to tread ateadlly 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 havt ezamirtt~ for this rtport, wt found ten year rrtnds to lit wr11 within the bounds of stochasrc error In other words, wt found no statistically signifreant trendy. For reasons too aumerotu, complicated, and obscure to be discussed here, tune 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 sysumatical>y over time. Although this pheaa~menoa bas been widely reported by statisticians since the early 19m cenwry, it is not well 7° Since these are crime totals (not crime ratrs), 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. 1 0 0 Consvltanu' Fnal Report - Pale 19.1 Figure 2 -Annual Crime Trends in Garden Grove, 1981-1990 ~~ s~ s; -I i~ i ~: _' _. :: :. :~ :• - ; l :~ s~ 9 W i pt i C S :~ Z! m w _ _ e . _ ~ 2 3 j .~ n ~~ ~ ~D y 0 Consultaau' Foal Report -Pate 19.2 Fgun 2 -Annual Crime Trends in Garden Grove, 1981-1990 i " 1 = ~ e 's ~ i s =I ,, s~ :: :~ s~ ='t s s i s m x E g e ~ t =r :~ c~ ~ m _~ ., :~ ., ~° _ =r sj :~ s Q m a m J n ~, c~D ,, i" Consultanu' Final Report -Page 20 undemood by popular media or the public. Nevertheless, each of the sewn Pan I crime trends is consistent with a "random" process and, hence, each is amenable to a statistical analysis. The five Part II mate trends, in contrast, are not at all consistent with a "random" process. To Hlustrate, aau 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 Policc Department. Lacking compleu information on Part II enforcement activities during the 1981-1990 deade, we cannot attnbuu changes in Part II - crime rates to the operation of adult businesses. Although we report effccu for Part II crimes in subsequent anah~ses, the on}y iMeraa]ly valid effects are for Part I crimes. Figure 3 shows another type of tread. F,ramiaing 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 It'kely to occur on weekends. The basis for this ~ pattern is well established is theory: crimes occur when the opport+uiiry 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 Consultants' Final Report - Page 20.1 Figure 3 -Crimes Weekday in Garden Grove, 1981-1990 m c 0 L 0 c i n c 0 O O N O O O L 0 J ~~ O O O O O O O O C 7 O 7 C 6 1 7 C T l0 • ____ _ ___ _ _ __ _ _ v _ _ _ ~::_u - - - - er _ '-' - --- -_ .. _ ~ ..........._ .«.._ .. _....::tip:.::.-~::::__~:_.:..~.a:35: i == ^^'v' i~ f-~ O ~V fir} (\^' •. /~ V~ o ~ w ~ a .. , Consultanu' Fnal Report -Pape 21 •conducted under cover of darkness, on an intoxicaud victim, in a relatively deserted public location. These conditions presumably occur on weekend ttighu outside ban 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 ofun oa weekend nights The opposite pattern bolds 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 da}tiate hours when most occupants are away . from borne. For our purposes, however, the weekday patuttu found in thue data, as shown in Figure 3, are a simple confirmation of the reliability of our data. More important, perhaps. finding the same patterns is all fora Personal criQtes and all three Property crimes justifies collapsing Part I crimes into two broad catcgories. Hereafur, except where as effect or pattern varies across the Part I crimes, effecu and paturas will be reported for Personal: Property, and Part II crime categories _ LJ u Consultants' Final Report -Pare 22 IV. The Impacted Area and the Public Safety Hoard 'r At present, seven adult-orienud businesses operate on Garden Grave Boulevard. The Parry Horne, loeaud 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 Yrdeo Pre-~uw Rental Ceruer, locaud at 8745 and 8743 Garden Grove Boulevard in the same building as the Parry House, opened in March, 1986 and Augttst, 1988 respectively. Given the proximity of these three businesses, their individual impacts oa crime are confounded. Treating them as a single clusur 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. 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 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 atttbuting 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 Gardrn of Eden expanded its operation from one suite to three. As in the case of the Party House-Bijou-Ytdeo Preview Rental Cetuer 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 wi71 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 had one or more crimes." The seven adult business addresses axouated for 239 Personal, 69d Property, and 538 Part II crimes, however, so these sewn addressts accortnted ' for 10.5 pcrcrra of the Pan I and 25.3 percrnt of the Pan II crime on Garden Grove Boulevard duuing the last decadc 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 Boolevard addresses with one ar morc crimes is statistically significant The second column of numbers in Table 2 arc ranks. These numbers tell the same story but from a different perspective..9s shows, three of the top ten Part I crime "hot spots" ase found at the adult business addresses. Five of the top tea Part II crime "hot spots" are found ai 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. Coosultaats' Fiaal Report -Page 23.1 Table 2 -Reported Crimes for Adult Businesses Garden Grove Boulevard Only, 1981-1990 BooksroteslPeeps}wws Address Personal Property Pan I Pan II N Rank N Rank N Rank N Rank 8192 Gardca Grove 16 19 I90 S 206 S 260 1 8502 Gardea 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 30 70 8751 Garden Grove 12 29 116 7 1?8 9 94 5 12061 Gardea Grwe 11 34 98 10 109 15 68 6 12686 Garden Grwe 6 57 173 6 179 6 150 2 BarsfTaverns Address Personal Property Part I Pan II N Rank N Ronk N Rank N Rank 8112 Garden Grwe 41 1 94 12 135 8 22 17 8284 Garden Grove 15 23 35 50 50 40 4" 69 8575 Garden Grave ~ 28 7 84 16 112 13 35 11 8801 Garden Grove 10 46 38 47 48 41 14 31 8803 Garden Grwe 21 13 56 28 77 Z3 20 20 12045 Gardea Grove 26 8 59 25 85 20 19 23 12082 Garden Grwc 33 4 87 15 120 9 43 9 12761 Garden Grwe 11 40 24 78 35 61 4 81 12889 Garden Grwe 34 3 78 18 112 13 19 23 R. s Consultanu' Fm! Report -Pare 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/Tavetn addresses it- 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 weII (more so given that akohoi is served at these addresses). Oa the contrary, however, we find that these addresses have • generally lower aitne rates than the adult business addresses Whereas three of seven adult business addresses are in the top ten Part I crime "hot spou," on]y 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 L1 I _~ .. Coasultanu' Final Repoli . P:;e 25 V. Quasi-Experimental Contests The address-specific crime counts in Table 2 are wmpelling evidence of the public safety hazard posed by the adult businesses on Garden Grove Boulevard Simple wunts do not satisfy the criterion of scientific validity, however, for there are many nonuttsal explanations for any sei of number. Validity requires that a change in the operation of an adult business be followed by a d:angc 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 adalt basinesses on Garden Grove Boulevard have operated continually for the past decade has had an impact on our abr7iry to conduct proper before/after analvses. Ideally, crime should be contrasted in a location before and after an adult business opens. Although this is not literally possrble, given the constraints of time and data, there were three major expansions of aduh businesses at two existing locations and analyses of these changes confirm the picture of these businesses painted by Table 2. The quasitxperimeata] contrasts derived from these analyses are outlined in greater detail bete. 1) In March, 198?, 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 tesUcontrol contrasts for this change are: One Year Before Ore Year After Test Site 200' S00' 1000' 200' S00' 1000 ' Ptnonal Crimes ~ 1 14 28 43 15 16 28 59 Property Crimess 10 46 84 140 17 58 167 242 Pan II Crimes 21 11 16 48 16 11 17 45 Control Site 200' SDO' 1000' 200' S00' 1000' Personal Crimes 0 11 2: 33 1 9 28 39 Proper{v Crimes 13 52 76 14I 11 56 87 I55 Pen II Crimes 15 23 27 63 11 22 29 62 Cover the next year, Personal crimes within a 200-foot radius rose significantly compared to the preceding year. Also compared to the preceding year, Property crimes within a 1000 foot tadins rose significantly. The effect of the expansion on Part II crimes was mixed and largely insignificant. To control for the possibility that these effects wen 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 is Petsoaal and Property crimes to the expansion of the adult business. 33 Hereafter, unless stated otherwise, a significant effect will imply a probability of .Ol or less. Coasultanu' Final Rtport -Page 27 2) In March, 1986, the Bijou opened at its present location, 8745 Garden Grove Boulevard. Since the Ptirry House Lad been operating at 8751 Garden Grove Boulevard prior to tLis time, the opening of Bijou was is effect an expansion. TLe before/after and test/control wntrasts for this change are: One Year Before One Year After Test Site 200' S00' 1000' 200' S00' 1000 ' Personal Crimes 2 7 21 30 6 I1 30 47 Propem Comes 3 19 94 116 11 40 113 164 Part 11 Crimes 13 14 43 70 8 13. 42 63 Control53te 200' S00' 1000'' 200' S00' 1000' Personal Crimes 2 10 30 42 1 11 31 43 Property Dimes 19 49 76 144 20 60 67 147 Pen 11 Ctvnes 24 13 25 62 19 16 3a 69 Over the next year, botL Personal and Property crimes rose significantly within a SDO-foot radius. TLe effect on Part II crimes was mixed and largely insignificant Since no similar effect was obsernd at a "control" site developed from the mean crime counts of four other adult businesses, the increases are attnbuted to the opening of the Bijou. 3) In Augsut, 1988. tLe Vutco Preview Road Cone opened rt 8743 Garden Grove Boulevard. Since the Parry House and Bijou were already in operation, this opening too is treated as an expansion. TLe before/after and test/control contrasts .-.. '~ !mil J i Consultants' Final Report -Page 28 for this change are: One Year Before One Year After Test Site 200' S00' 1000' 20G' SDO' 1000' Persorwl Crime 0 10 51 61 4 15 46 65 Propcrry Crime 3 19 67 89 6 25 t.0 91 Pan II Crime 11 13 16 40 34 11 25 70 Control Site 200' S00' 1000' 200' S00' 1000' Personal Crime 1 13 49 63 1 11 54 66 Property Crime 5 22 74 101 4 24 68 96 Part II Cnmu 9 17 22 48 28 13 2i) 61 In the following year, Personal crime rose significantly within a 500-foot radius, Property crime rose significantly within a200-foot radius, and Part II crimes rose significantly within a 200-foot radius (which is to say, at the Parry Horne-Bijou- Yrdeo Prniew Rtnro/ Centcr complex. No increzus were obsernd 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 businesses 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 mry expansion of an adult business wiT have the same effect ].n 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 1000 feet of a residential area. Of course. ~zrtually any increase in economic or social activiry might be ~.. Consultants' Futal Report - Pape 29 expected to produce some increase in crime (though perhaps not so large an increase as was observed is these three cases} When an increase in crime 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 as adult business acted to ameliorate a nuisance, however, the act had no impact on crime. 4) In September, 1988, the Ciry installed a blockade in the alley immediately to the west of the adult (8502 Garden Grovc 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.4dult. The before/after watrasu for this change are: One Year Before One Year After Test Site 200' S00' 1000' 200' S00' 1000' Pasoncl Cranes 2 13 26 41 2 11 21 34 Propem• Crimes 3 29 67 89 6 25 60 91 Part II Crimes 11 13 16 40 34 11 25 70 Although this simple architecairal device had ao significant impact on crime, there are undoubtedly many positive steps that an adult business can take to rednee criare in its vicinity. Since to our kaowkdge, ao such steps overe taken dwiag 1981-1990, we cannot speak with authority on the likely effectiveness of the various it ..; Consultants' Final Report -Page 30 amelioration svategies." Nevertheless, we recommend that the City ttse its legitimate zoning authority to ensure that any new adult business wt11 have a minimttm iIItpact oa 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 oa two contrasu. S) In Apn7, 1985, a bar opened at 8112 Garden Grove Boulevard, J 'J 'J I' approximately 425 feet from the A ro Z. The before/after and test/control contrasu for this chance are: One Year Before One Year After Test Site 200' S00' 1000' 200' S00' 1000' Personal Crimes 0 1 12 13 2 8 35 45 Property Crimes 9 29 56 94 7 41 62 110 Pcn II Crimes 4 2 7 23 2 9 11 22 Control Site 200' S00' 7000' 200' S00' 1000' Personal C.rirnes 0 1 14 15 0 2 14 16 Property Crimes 4 12 45 61 2 19 51 72 Parr 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 intervention, however. 'I Consultanu' Final Report - P'a;e 31 Although Property uime also rose, the increase was not significant No significant change was obsernd at a 'control' site, so the increase in Persona] crime eras attnbuted 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 attnbuted to the bar alone. Rather, it must be due to an interaction between the bar and the adult business 6) Ia May, 1989, a bar closed at 12889 Garden Grove Boulevard, approximately 1075 feet from the Hip Pocku. The before/afur and test/control contrasts for this change are: One Year Before One Year After Test Site 200' S00' 1000' 200' S00' ID00' Personal Crimes 2 9 13 24 2 13 9 26 Proptrry Crirnct 4 15 29 48 5 19 39 63 Part 71 Crimes 13 22 8 43 80 26 5 111 Control Site .200' S00' . 1000' 200' S00' 1000' Personal Crimes O 2 12 14 1 1 14 16 Property Crimes 3 11 39 SS 3 13 44 60 Port 11 Ctimcr 7 8 7 22 7 8 13 •28 In the subsequent year, ao significant change was obsernd 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 ffie Hip Pocket rose precipitously sad significantly. No change was observed at a "control" site. !~ <., ' Consultanu' Final Report -Page 32 :: " Information from the Police Department suggests, however, that the increase in ~j Part II crimes was the result of an unrelated enforcement campaign. Fat7ure to find arty significant effect in this case suggests that the interaction effect observed in the preceding case is limited to 1000 feet Wht7e we strongly recommend tbat no new adult business be located within 1000 feet of a bar (and vice versa), there is no e~~dence of interaction at distances exceeding 1000 fcet. ~, Consultanu' Futal Report • Page 33 VI- Survey of Real Estau professionals FoDowing the research model of the L! Study, as analysis of real estau professionals was conduced to determine the prcvatTing professions] opinion of the secondary effects produced by presence of adult businesses." The questionnaire instrument developcd for this task distinguished between the effects on single-family residential property, multiple-family residential property and commcrcial property values. In addition, it askcd for iafo;matioa oa the effects of ,. adult businesses a~~thin 200 feet, within 200-500 feet and the effear of two or more adult:busiacsses w~thia 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 aime, trdffiq noise, safety of women and children, quality of life, rents, loitering, and the abt7iry to attract other businesses and customer were identified. In January and February, 1991, copies of the instrument were sent to the membership 1rst of the West Orange County Association of Reahots. Of the total 954 surveys seat out, 30 were returned with incatzsct addresses The ttataiaiag sample of 924 resulted in a return of 141 completed questionnaues. Of these 141, • s' See the Appendix for a copy of the questionnaire instrument sad a complete tabulation of responscs. L '. Consultanu' Final Report -Page 34 19 where eliminated because of response bias.u The final analysis is based on 122 valid responses.M The overall sample was very experienced in real estate, with 126 of yeah ~, IJ '~J LJ L "7 I `I experience on average. This group of real estate professionals was very knowledgeable about Garden Grove real estate, with a mean experience is Garden Grove real estate of 10.1 yeah. The overwhelming majority of respondenu (9439c) also said that they had an opinion on the impact of adult businesses on the eommnttiry. The first set of items in our surny 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: as Throughout the questionnaire, various questions were worded in either a negative or positive fashion. This is done to eliminate respondenu that merely circle one response, such as strongly agree, to all questions. The assumption is that a respondent who is answering the questionnaire is a respoaable fashion would not strongly agree with both a negative assessment of adult businesses and a positive assessment of adult businesses. x This gives a response rate of IZZ/924 or 13290. This is somewhat lower than the response rate for the L4 Studv of 81/400 or 204b (p. 38). However, that report makes ao mention of correction for response bias. If the 19 returned questionnaires ~I that were eliminated for response bias had been included in the analysis, the response lilt rate would have been 141/924 or 1535b. Consultanu' Fnal Report -Page 35 Decease No Effect Increase ,: Single-family 975% 259o O.ORfi Multiple-family 95.090 5.05b 0.09b Commercial 8155b 15.190 3390 Wben adult businesses are located more than 200 feet but less than 500 feet of a residential or commercial property, the effect diminishes only slightly: Decease No Effect Increase Slagle-family 95.190 4.45'h 0.090 Multiple-family 9? 590 6.790 0.890 Commercial 7755'0 20.090 2590 The difference between 200 and 500 feet is insignificant Otherwise, the strongest impact oecun for siagle-family residences with a smaller (though su11 extremely large and significant) impact on commercial property. The density of adult businesses is also considered to have a aegative 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 Siaglafamily 89390 9.890 0.85b Multiple-family 86.845 1230!0 0.890 Commercial 71.94b 273% 0.890 Density impacu are judged to be slightly smaller than the impacts of location pcr ~r Consultants' Final Report -Page 36 se. The density impacts oa property value are lazge and significant nevertheless and support a density regulation. For location and density al'ke, the overall pattern is clear. The vast majority of real estate professionals associate location of an adult business with deceased property values for single-family residential, multiple-famt7y residential cad commercial property. Clearly, these data indicate the presence of an adult business creates the secondary effect of decreased property values. A second set of treats elicited opinions on the impact of aduh businesses on 1 i~ LJ I `I 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, gnaliry of life, and renu. Specific responses were: Incrcase No Effea Dcaeate Crime 93.1% 6.0% 0.94'0 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% 61.94'0 Quality of Life I8.49o 6.1% 75.4% Reau 8:090 10.6% 81.490 Loitering 85S% 5.1% 9.490 Whcn asked about problems in relation to wmmercial properties, the vast majority LJ of respondenu blamed adult businesses for the same problems cited for residential r Consultanu' Ftaal 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: Inocuse No Effirt Decrrase Crime 88.790 9.64b 1.796 Traffic 76.790 20.790 2.696 Litter 83546 15.790 0.996 IJoise 67.0% 29.556 3.690 Safety 23.256 12596 64296 Business Environment 11556 6356 81196 Commercial Renss 8.44b 15.9% 75.746 Loitering 77.090 8.046 15.090 Attract Businesses 7.946 3590 88546 Attract Customers 8.84'0 7.04b 84346 This general response pattern is essentially duplicated when respondenu 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 aduh businesses Closer analysis of response patterns reveals that respondeau who felt adult businesses produce a decrease in property values also are likely to respond that these businesses have a aegdtive effect on a neighborhood. One of the strangest associations Wat between decreased property values and increased crime. This is consistent with our analysis "See for example the L4 Report. ~'~ :_ -~9 Consvltanu' Fuial Report • Page 38 of the crime data. The data from this surny clearly indicates that rcal estate professionals feel that adult businesses are associated with decreased property values and decreased quality of neighborhood for both residential and eommeicial areas. - Consultanu' Feral Rnpori - Pale 39 VII. Household Survey ltesulu The final component of this research project arcs a surny of Garden Grove households to assess citizen perceptions of the issues. Toward this end, we 5rst developed a questionnaire instrument based on instruments treed is 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 ulephone households in March and Apn7, 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.'6 To ensure that the sample included households in the proximity of problem areas, the total sample of N=250 included 200 addresses looted within 1500 feet of an adult business. We cannot therefore generalize our results to the larger population without applying a set of sample weighu. As it turns out, however, the survey results are so nearly unanimous that there is no need for complicated sutistics. Interviews were conduced by Garden Grove Police Departatent cadets, the Consultants, and rheir research assistattts. Standard snrvry 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 '6 A copy of the final version of this instrument and tabulated response frequencies are found in the Appendix. ,. .J 'J II ~`~ L~J Consultants' Final Report -Page 40 sample had either been contacted (with a completed interview or a refusal) or ruled out of the sample.' The final breakdown of the sample by interview status is: Completed 118 47246 80390 Refused 29 11.t59c 19.790 Languaze 20 8.090 No Answer 42 16.890 Irrvalid 41 lti.457c Total 250 100.056 100.045 Non-English speaking households could not be interviewed and this is unfortunate. Nevertheless, the number of completed interviews (118) and the completion rate (80.39c) of this surny (8039c) exceed the numbers realized is household surveys conducted in other cities. Accordingly, we believe that our resulu 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 oa dai3y life. While perceptions of the nature of this problem vary somewhat, virtually everybnc polled associates Wese businesses with one or more negative 79Phone number were ruled out for nay of three reasons: (1) the number was not located in Garden Grove; (2) the number w~aS a business; or (3) no one at the number spoke English. Consultatus' Fiaal Report -Page 41 °~ aspects of urban life. Exceptions to this rule are rare and the intensity of the feeling is greatest is 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. 13e breakdown of responses in the sample of compleud interviews was: 200 Feet/1 Block 12 9.8% 6.9% 500 Feet2 Blocks 17 14.4% 4.9% 1000 Feet/3+ Blocks 54 45.8% 65.1% Don't Know 35 29.7% 1'he accurary of these subjective estiatates was checked by asking the respondent to name (or at least, to descnbe) the adult business nearest their home. In a subset of cases, ae were also able to measure the distance objectively. Frost these data, it is clear that people are quite aware of how near or far away they live from these businesses. We next asked respondents to assess the impact that an adult entertainment business located is their neighborhood would have on series of "social problems." Specifically. I am going to ask a series of gaestiara eottcertting what the itrrpaet of an adult entertainment business has, or would have, if it were located within 500 feet of your neighborhood. Please teU me if the impact would be a substantial increase, some increase, no effect, some decease or a substantial decrease. .~ Consultanu' Fatal Report -Page 42 Responses to this series of questions reveal a consistent perception of the iatpad of adult businesses on the part of citizens. Broken down into three catcgories: I - Inaease No Effect Deaeate Crime 72.956 27.190 0.090 Traffic 60.790 38556 0.990 Litter 66.790 32S9o 0.990 Noise 62.190 36.290 1.890 Safety 31.9% 20.756 47S9o ' Quality of Life 16390 23.990 59.856 Property Values 14556 15.45E 70.190 Rena 15.756 38.95E 45.356 Loitering 74390 22290 3S9o Graffiti 56.690 41.756 1.790 ~+ Vandalism 6555E 32.890 1.790 Respondenu were asked if they knew of any specific incidenu related to adult entertainment businesses in their neighborhoods. Twenty-five respondenu (21.490) answered affirmatively, citing specific examples of the 11 general problem areas 1 covered in the survey instrument Not surprisingly, most of these respondenu lived relatively near an adult business. Finally, to measure the depth of public sentiment. respoadenu were asked whether they would movc if an adult entertainment business were to move into their neighborhood. Seventy-ane respvadems (61190) indicated that thry waald ("definitely" or "probably") move. Of the minority (38.890) who indicated that they K•ould ("defnite]y" or "probably") not move, nearly half qualified their answers by "~ r Cotuultants' Final Report .1?a;e 43 `r'~- <.,: explaining that financial considerations precluded a move for nay reason. Attitudes on Rtgularion. With as exception to be noted, the public believes that the City should regulau adult businesses. One buadred respondents (85596) believe that the City should regulate the lontion of adult businesses. Despite the apparent laiua Pave implications of the minority opinion, however, only one respondent (0.99c) 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 far all types of regulation. Regulatory initiatives designed to protect the inugriry of residential life, for example, garner nearly unanimous support from every element of the communit)•: 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 78.090 78.096 Support 13 11.09'0 11.090 Neutral 4 3.490 3.490 OPp°x ti 5.196 5.190 Strongly OPP~ 3 2.590 2590 Regulatory initiatives designed to reduce the density of adult businesses, oa the Consultanu' Final Report -1?aEe 44 Regulatory initiatives designed to reduce the density of adult businesses, on the other hand, wht7e not nearly so popular, are supported by a significant majority of citizens. Would you support a law that prohbited 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 Z2 18.6 18.8 Strongly Oppose 6 5.1 5.1 It should be noted, furthermore, that some of the respondeau who oppose density regulations do so because they oppose aay initiative short of prohbition. Group Difjrerencts. Due to the overwheLaiag degree of rapport for almost aay regulatory initiative and, also, due to the relatively small sample size, few ® group differences are statistieaIly significant Home ownership and gender are ^ exceptions. In general, Lome owners are more likely than tenors and women are more likely than men to endorse any regulatory initiative. 13ese differences are expected, of course, bnt a earefnl ertamiaatioa of response pamrns rrnals a curious difference. When asked whether the City should regulate the locations of adult businesses, for example, home owners and women a17ce express stronger 1 support for regulation than their complementary groups. Specifically, Consvltanu' Final Report -Page 45 .:,:- Own Rent Women Mtn Regulate Yts 74 24 98 57 42 99 Rtgulcte No 7 10 17 6 11 17 81 34 115 m 53 116 Both differences (owners r5. resters and women vs. men} are statistically significant ?his common factor helps define the small minority (14S'Rc) of respondeau who feel that the City should not regulate adult businesses at all.'0 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: Own Rent Women Mtn .. Mrnr Yes 52 17 69 43 27 70 Move No 28 17 45 20 25 45 80 34 I14 d 52 115 Whr7e home owners are more likely (vs. renters) to say that they would move out of their neighborhoods to avoid an adult business, the differeacc is not statistically significant In contrast, the difference for women (vs. men) is quite significant '0 Respoadenu who expressed the opinion that the Gty should sat regulate adult businesses tend to be younger (76Sh'o under 45) men (64.79b) who rent (58.8'&). More important, perhaps, these respondenu tend to live reLuively far away from adult businesses (76S5b at least three blocks away) and to live is hotaeholds with ao children (70.6'~c). Several of these respondenu volunteered ffiat they were "libertarians." Of course, many of the respoadenu 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. Cottsultanu' Fuel R sport -Page 46 i. .. This divergence reflecu a salient difference is the way home owners and women calculate cosu and beaefiu. In the unstructured portions of the interviews, many home owners expressed feelings of resignation. One respondent who had lived in the vicinity of as adult business for more thaw 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 respondeau expressed overa+hehttiag fear for their safety and the safety of their cht7dren. Oae woman respondent with three young eht7dren told us that she had already moved because one of her clu7drea 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 was absolutely necessary for the safety of her children. Anecdotal data of this sort are not amenable to statistical analysis. Tievertheless, these data provide a contact for intcrpreting the objective item respotues of our surny. Consultants' Firm Report -Page 47 VIII. 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. Wht~e 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 vah:es. This argues for szrict tegolations gcmrning the distances between aduh businesses. A separate surny of Garden Grove bousebolds is fully consistent with the responses of real estate professionals. Put simply, these businesses have a real impact on the daily lives of then neighbor. By all measures, respondents living near one of these businesses are asPare of the presence of the btrsiaesses and have a pessimistic (but apparently realistic) view of their impact oa the neighborhood Whereas public hearings might lead one to conclude that actual incidents irrvolviag these businesses are rare, our survey resulu show the opposite; more than one in ftve respondcnu reported a specific incident related to the operation of odult "1 .,. ,,. Consultants' Fna1 Report -Page 48 buriiretses. This ezperieace leads to strong public support for regulation. Nine of tea respondents endorse regulations that prohibit adult businesses from operating near residential neighborhoods; nearly two-thirds endorse regulations that prohrbit 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 rata before and after changes in the operation of adult businesses, we find strong evidence of a public safety haztrd. 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 1 ~ No new adult businesses should be allowed to operate within 1000 feet of a residertct We find a significant interaction effect between the adult businesses and taverns or ban. When an adult business opens within 1000 feet of a tavern or bar, crime rates rise by a factor that cannot be attnbuted to eitber business alone. Accordingly, we recommend that ~ 1~'o ntw tavern or bar should be allowed to operau within 1000 feet of an odtdt btcrbtess and vice Hasa Since the adult businesses on Garden Grave Boulevard (oi more precisely, their locations) were in operation prior to the advent of our data, we 5nd ao optimum Consultants' Fnal Report -Page 49 or ideal distance between locatiotu that would ameliorau the public safety hazard. Accordingly, we recommend that • The presou spaang cock baween adult batsitteuv shortld be maintained Recognizing the legal and practical difficulties of changing the costing operations, furthermore. we have no recommendations for the existing operations. Although we 5nd no evidence that the public safety hazard can be ameliorated by simple arhitectural barriers (walls, eg.), the hazard could conceivably be miniatized by regulations such as limiting the hours of operation, special lighting, and so forth. Toward this end, we recommend that • allure feasible, the Conditional Use Permit procrss should be tcsed to ameliorau the pttblic safety hazard For vprimal e~ectivcness, the Pallet Depanmtnt meat be filly involved in evtrv aspen of this process. There is a tendenry 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 I~rtmettt is ideally suited to advise on the range of polity options that might be implemented. A final recommendation pertains to pnbIic itrvoh+emetrt is the pto~. The resulu of our bousebold survey reveal strong sentiments favoring any attempt to ameliorate the secondary consequences of this problem. Nevertheless, we detect a Consultanu' 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 respoadeau who expressed little or no support for this regulation did so on the grounds that the businesses should not be allowed to operate amxhere in the City. It would not be entirely correct to attnbute this Flew to moral or moralistic attitudes. In many cases, Tespondents related personal experiences and fears that make these views understandable. Public support for any practia] regulation gray require a process that addresses the experiences and fears of these citizens. Unfortunately, we have no expertise (or even specific insighu) to suggest how this might be accomplished. :.,.,. . _~..~-s:. -~ ~~A PPEND IX Real Estate Survey Frequencies Houxhold Survey Frequencies Real Estate Instrument Houxhold Instrument Proposed Statute ~: Consultants' Fnal Report - Al Real Estate Professionals Survey Response Tabulations Based oa your personal observations as a real estate professional, or on information received through the practice of yonr 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 115 943 943 No 6 4.9 4.9 Missing 1 .8 .8 How many years have you practiced in the real estate p rofession? S Years or Less 36 29.5 29.5 6-10 Years 16 13.1 13.1 11-?5 Years 60 492 49 2 25 Yeats or More 10 82 8 2 . How man}• yeah have you practiced real estate in the Garden Grove area? S Years or Less 47 38.5 38.5 6-10 Years 19 15.6 iS.6 11-?5 Years 51 41.8 41.8 25 Years or More 3 2.4 4.1 Missing 2 1.6 Based on your professional cxperience, how would you expect average values of the follou~ng types of property to be effected if they are less than 200 feet away from'the new adult bookstore? ...Single-family residential 209c Decrease 76 613 10-209o Decrease 28 23.0 0-1056 Decrease 14 11S No Effect 3 2.5 Missing 1 .8 62.8 23.1 11:6 2.5 II Consultants' Fnal Report - A2 ...Multiple-family residential 205'c Decease 46 37.7 383 .. ~ -~ ~ 10.205b Decease ~ - 42 .. 34.4 35.0 ` 0.10Sir Decrease . - ' 26 213 21.7 ti. ]' - No Effect 6 4.9 5.0 Missing 2 1.6 ...Commercial 205ic Decrease 24 19.7 20? 10.209c• Decrease 40 3?.8 33.6 0.109c Decrease 33 27.0 27.7 No Effect 18 14.8 15.1 0.105b Increase 3 2S 2S 20'3; Increase i .8 .8 Missing 3 2S How would you eapeet the average value to be affected if the properties are within 200 to 500 feet of the new adult bookstore? ...Single-family residential 20~7c Decrease 67 54.9 55.4 10.2051; Decrease 29 23.8 24.0 0.309c Decrease 19 15.6 15.7 No Effect 6 4.9 S.0 Missing 1 .8 ...Multiple-family residential 20'>'o Decrease 41 33.6 34.2 10-209c Decrease 36 293 30.0 0-10'70 Decrease ~ 34 Z7S 283 No Effect 8 6.6 6.7. 10-2o5E Increase 1 .8 .8 Missing 2 1.6 r ~' ...Commercial Consultanu' Fnal Report - A3 209E Decrease 20 16.4 16.7 10.2051 Decrease 37 303 30.8 0.105E Decease 36 29S 30.0 No Effect 24 19.7 20.0 0.109c. Increase 2 1.6 1.7 10-209c .Increase 1 .8 .8 M~n$ 2 1.6 Assume that a new adult bookstore w~71 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 follo~ciag types of properties to be affected if tbey are less tban 200 feet away from the new bookstore? ...Single-family residential 205E Decease S1 41.8 41.8 10.204r Decrease 38 31.1 31.1 0.105E Decrease 20 16.4 16.4 No Effect 12 9.8 g g 0.105E Incense 1 ,g .g ...Multiple-family residential 2D5'c Decease 41 33.6 33.6 10.209c Decrease 32 26.2 26.2 0-109c Decrease 33 27.0 27.0 No Effect 15 12,3 123 0-1056 Increase 1 .8 :8 ...Commertial 209o Decease 27 .22.1 22.3 10.205% Decrease Z7 2Z.1 223 0.105iic Decrease 33 27.0 273 No Effect 33 27.0 273 10-209c Increase 1 ,g ,g Missing 1 .8 Consultants' Fnal Report - A4 How would you expect the average values to be affected if the properties are within 200 to S00 feet of the adult bookstore? .:.Single-family residential "2046 Decease 65 533 SS.1 10-209c Decease 29 23.8 24.6 0-1046 Decrease u 123 12.7 No Effect 8 6.6 ~ 6.8 0-1056 Increase 1 .8 .8 Missing 4 33 ...MultiD7e-family residential. 2056 Decrease 42 34.4 353 10-2056 Decrease 41 33.6 34S 0-1056 Decrease 25 2oS 21.0 No Effect 10 82 8.4 o-lo'>'O Increase i .8 .8 Missing 3 2S ...Commerdal 2046c Decrease 25 20S 21.4 10-209c Decease 40 32.8 34.2 0-lo~Yc Decrease 2s 2os 21.a No Effect 23 18.9 19.7 0.1056 Increase . 4 33 3.4 Missing S 4.1 Based upon your professional ezperieaee, how would you evaluate the impact of locating as adult bookstore within 200 feet of as area on the followiag problems, if the area is residential? ...Cute SubstantialInaease S9 48.4 50.9 Some Increase 49 40.2 42Z No Effect 7 5.7 6.0 Some Decrease 1 .8 .9 Misting 6 4.9 Consultanu' Fnal Repoli - AS ...Traffic Substantial Increase 28 23.0 23.9 Some Increax 60 492 SI3 No Effect 26 .213 222 Some Decreax 2 1.6 1.7 Substantial Deaeax 1 .8 .9 Missing ~ 5 4.1 ...litter Substantial Increase 52 42.6 44.8 Some Increase 48 393 41.4 No Effect 14 i1S 121 Some Deaeax 1 .8 .9 Substantial Decrease 1 .8 .9 Missing 6 4.9 ...Noix SubstaatialIncrease 35 28.7 313 Some Increase 46 37.7 41.1 No Effect 27 22.1 24.1 Some Decease 3 2S 2.7 Substantial Deaeax 1 .8 .9 Missing 10 82 ...Safety SubstantialInaease 24 19.7 212 Some Increase 7 5.7 6.2 No Effect 12 9.8 10.6 Some Decreax 24 19:7 212 Substantial Decrease 46 37.7 40.7 Missing 9 7.4 Consvltanu' Fnal Report - A6 ...Quality of life Substaatial Increase 14 113 123 Some Increase 7 5.7 6.1 No Effect 7 ~' ~ 5.7 6.1 Some Decrease 39 32.0 34Z Substantial Decrease 47 383 412 Missing 8 6.6 _.Rents Substantial Increase 3 23 2.7 Some Increase 6 4.9 53 No Effect I2 9.8 10.6 Some Decease 51 41.8 45.1 Substaatial Decrease 41 33.6 363 Missing 9 7.4 ...],Altering SubstantialInctease 60 49.2 513 Some Increase 40 32.8 332 No Effect 6 4.9 5.1 Some Decrease 3 23 2.6 Substantial Decrease 8 6.6 6.8 Missing 5 4.1 Based upon your professional experience, how would you evaluate ffie iatpaa. of locating as adult bookstore within 200 feet of as area on the following problems, if the area is commercial? _.Crime SubstantialIacrease 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' Ftul Report - A7 ...Traffic Substantial Inaease 24 i9.7 20.7 Some Incense 65 533 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 29.5 313 Some Inaease 60 49.2 52.2 No Effect 18 14.8 15.7 Substantial Decease i .8 .9 Missing 7 5.7 ...Noise Substantial Increase 27 22.1 24.1 Sotne Inaease 48 393 43.9 No Effect 33 27.0 29S Some Decease 3 2.5 2.7 Substantial Decease 1 .8 .9 Missing 10 8.2 ...Safety Substantial Increase 16 13.1 143 Somc Increase 10 8.2 8.9 No Effect 14 11.5 12.5 Some Decease 36 29S 32.1 Substantial Decrease 36 29S ~ 32.1 Missing 10 8.2 ...Quality of business environment SubstaatialIncease 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 r Consultants' Final Report - A8 ._Commercial rents ~: , SubstantialIacreax 3 23 .. 28 Some Increase 6 4.9 S.6 No Effect 17 13.9 -15.9 Some Decrease 58 47S 54.2 Substantial Deaeax 23 18.9 213 Missing 15 12.3 ...Loitering SubstantialIacrease 41 33.6 363 Some Increax 46 37.7 40.7 No Effect 9 7.4 8.0 Some Deereax 11 9.0 9.7 Substantial Decreax 6 4.9 53 Missing 9 7.4 ...Ability to attract new businesses SubstantialIncreax 4 33 3S Some Inaeax S 4.1 4.4 No Effect 4 33 3S Some Decreasc 39 32.0 34S Substantial Decrease 61 50.0 54.0 Missing 9 7.4 .»Abt7ity to attract customers SubstantialIncreax 6 4.9 S3 Some Increase 4 33 3S No Effect 8 6.6 7.0 Some Decrease 37 303 ' 3ZS Substantial Decease 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' Fnal Report - A9 ...Crime Substantial Increase 75 61S 64.1 Some Increase 37 303 31.6 No Effect 4 33 3.4 Substantial Decrease 1 .8 .9 Missing 5 ~ 4.1 ...Traffic Substantial Increase 43 352 36.1 Some Increase 60 492 50.4 No Effect 14 11S 11.8 Substantial Decrease Z 1.6 1.7 Missing 3 2S ...Litter SubstaatialIncrease 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 2S ...Noise Substantial Increase 48 393 41.4 Some Increase 46 37.7 39.7 No Effect 17 13.9 14.7 Some Decrease 2 1.6 1.7 Substantial Decease 3 2.5 26 Missing 6 4.9 ...Safety Substantial Increase 22 18.0 18.8 Some Increase 10 82 8S 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 ...Quality of life Cottsultanu' Fnal Report - A10 SubstantialIaaease 10 8.2 8S Some Increase 2 1.6 1.7 No Effect 6 4.9 S.1 Some Decease 30 24.6 25.6 Substantial Decrease 69 56.6 59.0 Missing S 4.1 ...Rents Substantial Increase S 4.1 4.4 Some Increase S 4.1 4.4 No Effect 7 5.7 6.1 Some Decrease 4S 36.9 39S Substantial Decrease S2 42.6 45.6 Missing 8 6.6 ...Loitering Substantial Increase 62 50.8 53.4 Some Increase 37 303 31.9 No Effect S 4.1 43 Some Decease 6 4.9 5.2 Substantial Decrease 6 4.9 52 Missing 6 4.9 Based on your professional experience, how would you evaluate the impact of locating two or more bookstores within 1000 feet of eacb other and within 200 feet of as area on the following problems if the area is commercial? ...t„rime SubstantialIncrr3se ~ S3 43.4 442 Some Increase S9 48.4 49.2 No Effect 6 4.9 S.0 Substantial Dec7ease 2 1.6 1.7 Missing 2 1.6 ..:. J ~:-. `: i Consultants' Fnal Report -All ...Traffic SubstantialInaease 33 27.0 27S Sono Increase 62 50.8 51.7 No Effect 22 18.0 - 183 Some Decrease 2 1.6 •~ 1.7 Substantial Decrease 1 ,g ,g Missing 2 1.6 ...Litter Substantial Increase 50 41.0 42.7 Some Increase 53 43.4 453 No Effect 12 9.8 103 Some Decrease 1 .8 .9 Substantial Decrease 1 .8 .9 M~nB S 4.1 ...Noise Substantiallncrease 39 32.0 33.1 Some Increase 48 393 40.7 No Effect 29 Z3.8 24.6 Substantial Decrease 2 1.6 1.7 Missing 4 33 ...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 Decease 44 36.1 37.0 Mis'm8 3 23 ...Quality of business environment SubstaatialIncrease 5 4.1 4.3 Some Increase 3 2S 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' Frta1 Report - A12 ...Commercial renu Substaatial Increase Some Increase No Effect Some Decrease Substantial Decrease Missing ...Loitering Substantial Increase Some Increase No Effect Some Decrease Substantial Decease Missing _.Abiliry to attract new businesses Substantial Increase Some Increase No Effect Same Decrease Substantial Decrease Missing ...Ability to attract customers SubstantialInaease 7 5.7 5.9 Some Increase 3 2S 2S No Effect 10 82 8S Some Decrease 38 31.1 - 322 Substantial DecTeax 60 492 50.8 Missing 4 33 would you mina iE we cotttaered you in the futm~e regardiag yoar rsspolses to these survey questions? No 63 51.6 643 Yes 26 213 26S Missing 33 78.1 6 9 13 39 44 11 49 45 5 8 8 7 4 4 7 43 56 8 4.9 7.4 10.7 32.0 36.1 9.0 402 36.9 4.1 6.6 6.6 5.7 33 33 5.7 352 45.9 6.6 5.4 8.1 11.7 35.1 39.6 42.6 39.1 43 7.0 7.0 3S 3S 6.1 3 i.7 49.1 Consultanu' Final Report - Ai3 .'.. •~ Household Survey Response Tabulations To the best of your knowlege, bow close is the nearest adult bookstore or adult enttrtaiament 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 eaurtaiameat 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 inaease, some inaease, no effect, some decease, or a substantial decrease. ... Crime Substantial Increase 55 46.6 46.6 Some Increase 31 263 263 I~'o 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 38S Some Decrease 1 .8 .9 Substantial Decreax ,~ Missing 1 .8 ._ .litter Substantial tacrease 43 36.4 36.8 Some Increase 35 29.7 29.9 . No Effect Some Decrease 38 1 32.2 .8 32S .9 Substantial Decrease Missing 1 ~ .8 Consultanu' Fnal Report - A14 _. Noix SubstaatialIncreax 40 33.9 Some Increax 32 27.1 No Effect 42 35.6 "Some Decrease 1 .8 Substaatial Decreax 1 .8 Missing 2 1.7 ... Safety Substantial Increase 25 21.2 Some Increax 12 10.2 No Effect 24 203 Some Decrcase 9 7.6 Substantial Decrease 46 39.0 Missing 2 1.7 ... General Quality of life Substanria] Increax 14 11.9 Some Increase S 4.2 Iv'o Effeet 28 23.7 Some Decreax 18 153 Substantial Deaeax S2 44.1 Missing 1 .8 _. Property Values SubstantialInereax 9 7.6 Some Inaeax 8 6.8 No Effect 18 153 Some Decrcax Z3 19S Substantial Decrease 59 50.0 Missing ~ 1 B 34S 27.6 361 .9 .9 21.6 103 20.7 7.8 39.7 12.0 43 23.9 15.4 44.4 7.7 _ 6.8 15.4 19.7 50.4 C l ' F onsu tants inal Report - A1S R ... _ . . ... eats Substantial Inaeax 12 102 11.1 Some Increax S 42 4.6 No Effect 42 35.6 38.9 Some Decrease _ 17 14.4 15.7 Substantial Decease _ 32 27.1 29.6 Missing 10 8S ... Loitering SubstantialInaease 68 57.6 58.1 Some Increase 19 16.1 162 No Effect 26 22.0 222 Some Deaeax 3 2S 2.6 Substantial Decreax 1 .g .g Missing 1 .8 ... Graffiti Substantial Increase 44 373 383 Some Increase 21 17.8 183 No Effect S 48 40.7 41.7 ome Decreax 2 1.7 1.7 Substantial Decease Missing 3 2S „. Vandalism b S u staatialIncrease 53 44.9 45.7 Some Increase 23 19S 19.8 No Effect 38 322 32.8 Some Derreax 2 1.7 1.7 Substantial Decreax Missing 2 1.7 Would you move if an adult eaterraiameat basiaess were located aearyonr aeighborbood? Definitely Mwe 36 30.5 31.0 Probably Move 3S 29.7 30 2 Probably cot Mwe 28 23.7 . 24.1 Definitely not Mrne 17 14.4 14.7 ~.. Missing 2 1.7 M r Consultants' final Report - Ai6 f Do you believe the City should regulate the location of adult businesses? 4!l No 17 14.4 14S Yes 100 84.7 85S Missing 1 .8 13e 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 negligble effect on your neighborhood? 500 Feet 4 3.4 3.4 1000 Feet 10 8.5 8.6 1 Block 3 ZS 2.6 3+ Bloeks 89 75.4 76.7 Farther 10 8S 8.6 Missing 2 1.7 In what zone do you think these types of business should be allowed? Residential 1 .8 .9 Commercial 44 373 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 Support 13 11.0 11.0 Neutral 4 3.4 3.4 Oppose 6 5.1 5.1 Strongly Oppose 3 2.5 - 2S Would you support a law that prohibited the coaceatration of adult e~ertaimnent 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 1 ,._ ~. , Consultanu' Fnal Report • A17 Are you aware of any specific incidents related to adult entertainment businesses in your neighborhood? No 92 78.0 78.6 ~'u - 25 ZIZ 21.4 Missing .~~ 1 .8 Do you own your home or do you real? Owner 82 69S 70.7 Renter 34 28.8 293 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 _g What is your sex? Female 64 543 54.7 Ma]e 53 44.9 453 Missin8 1 .8 What is your age? 21 or Under 6 5.1 SS 22 thru 35 - 32 27.1 29.1 36 thrv 45 26 22.0 ~ 23.6 46 thru 65 34 28.8 -30.9 66 or Older 12 I02 I0.9 Missing 8 6.8 Consultants' Frtal Report - A18 What is your highest levc] of education? Grade School 2 1.7 1.8 ;High School 32 27.1 28.1 Some College 48 40.7 42I College Degree 28 23.7 24.6 Graduate 4 3.4 3S Missing 4 3.4 How maw eht7drea do you currently have livin g with you under the age of eighteen? None 60 50.8 513 1-2 42 35.6 35.9 3 or More 15 12.7 128 Missing 1 .8 How would you characterize your ethnicity? Caucasian 85 720 72.6 = Hispanic 19 16.1 I62 ~emamese 4 3.4 3.4 •, Oriental S 4.2 4.3 Black 1 .8 .9 Other 3 2S 2.6 Missing 1 .8 Would you like to be notified of any public h earings related to the restriction of adult entertainment businesses is Garden Grow? Yes 76 65.0 65.0 No 42 35.0 35.0 . ~ X <S.- s ^ CITY OF GARDEN GROVE ADULT BUSINESS SURVEY CALL SHEETS CASE ID: Phone number: Address: Interviewer date time outcome time/date of callback i. 2. _~ __...~_ .µr____.__.__.-._~_ 3- --_-.-.__ .---- 5. 6, _________.~_~.~. __~ _. 7. 8. _ _..________---~____._._-_- 9. ---.--- ~__.._ 10. General Notes and Problems: ..^ Bello, my name is , I am as employee with Lhe 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 dandag estab- ~"~ lishmenu, massage parlors, adult cheaters showing X-rated movies, peep shows, etc. ~ -•- on your residential area. The City is conducting this survey is order to properly de- velop legislation in this area. Your responses are greatly apprenated and will be kept • • '"' confidential. Weed to confirm that the respondent is a nsponding from a rssidenre and Hat a busi-_ _ Hess. If responding from a business discontinue the interviemJ 1. To the best of your knowledge, how close is the nearest adult bookstore or adult entertainment establishment? ~ 200 felt ~ 1 block Ia 500 feet ~ 2 blacks .. '~ 1000 feet p 3+ bloctis Don't know 2. Which adult entertgin,nant setst~liehr~ent la it? (Prompt respondent for identifying information, ie tJu esaet business name, or loca- tion, or general identification) 6. The courts have ruled that dties must provide a-place for adult businesses to oper- atx. How far away from your neighborhood would these businesses have to be to have a negligible effect on your neighborhood? L.css than 500 feet '] 1 block 7 S00 feet D 2 blocks ~ 1000 feet O 3+ blocks 7. In what zone do you think these types of businesses should be allowed? ~ Residential 7 Commercial Industrial 8. Would you support a law that prohibited the establishment of as adult entertain- ment business with 500 feet of a residential area, school or church? Saongly suppon Support ~ Neutral . Oppose Strongly oppose 9. Would you support a law that prohibited the concentration of adult entertainment business within 1000 of each other? ~ Strongly support Suppon .. Neutral Oppose D Strongly oppose lO.Are you aware of any specific inddents related to adult entertainment businesses in your neighborhood? O No Q Yes If yes please explain: 11. Do you own your home or do you rent ? O Own J Rcat r 18. Would you like to be notified of any public hearings related to the restriction of adult entertaissment businesses in Gardea Grove? - ~ Yes ~ No If yes, confirm name aad mailing address Thank you for your usistance in ttsponding to our quesriotu. ~^' (If tidy insist on a number of someone to wruact about the survey give them tiu Ciry Manager's Office number 714-741-5101) . PEAL ESTATE PROFESSIONAL SURVEY lease com~le to ibis brief surny and return it to the City of Garden Lrove, City Managers Office, Dy .iarifi 1, 1951. A posh gc paid envelope is enclosed for your convenience. 1. Based upon your personal observations as a real estate professional, or on information rceeivetl tnrougn the p*:eti ee of your profession, do you have an opinion as to rhetner the presence of an adult bookstore affects the resale or rcnUi values of nearby properties? ~ Yes No opinion 2. Mow many yeah Mre you practiced in the real esiite profession? t 3. Mor many years Mre you pratticed real esLte in th! Grden Grove area? Ouestiens 4 threYeh 15: Diease read the follaring information about a hypothetical neighborhood and respond to a fer questions in terms of your professional experience and 3utlament. A middle-income residential neighbOrhood borders a main stmt that t:ontains various commercial uses that ' sern the neighDOrnood. Although most of the neighborhood is comprised of singlrfaaily homes, them arc fro multiple-family residential -comple:es in the neighborhood as cell. A eoe,aercial bufldi~ rscenily has become vacant and rill open Sher-.ly as a typical adult bookstore. !A 'typical' adult bookstore 1n 6aroen Grove also conUins several 'peep shor`" booths. ogre are no ether adult bookstores or similar activities in the area. There is no other vacant eoasaercial space presently available in the area. Based upon your professional ezperience, hw could you expect average values of the foltoring types of aroperty to be affected if they are less flan 200 feet awy from the her adult bookstore? !Circle the ~DreD*iate nmoDer for earn type of property.) Decrease Decrease Decrease No Increase Increase Increase 20Z 10-205 0-1OS Effect 0-105 10.20: 20•. a, Single-family residential 1 2 3 4 5 6 T 5, Multiplrfamily resieential 1 2 3 t 5 6 7 6. Commercial 1 2 3 d 5 6 ~ 7 Nor could you expect the average value tD be affected 1f the properties are rithin 200 to 500 feet of the her adult bookstore? Oeercase Decrease Decrease No Increase Increase Increase 20S 10-20: 0.1Q. Effect 0-lOt 10-205 20s 7. Single-family residential 1 2 3 4 5 6 7 8. Multiple-family residential 1 2 3 1 5 6 7 9. Commercial 1 2 3 4 5 _6 7 Assume that the her adult bookstore rtTl b! located rlthtn 1000 feet of an existing other adult enterUimeent use. Based upon your profcislonal ezperience, hoc could you adult baeksRore or expect the average values of the folloring types of properties to be affected, if they ace l ess than 200 feet awy from she n!r OOOkStere? Decrease Decrease. Decrease No Increase Increase Increase 20S 10-20: 0-lOS Effect 0-10: 10-205 20: 10. Single-family residential 1 2 3 ! 5 6 7 11 Multiple-fanny residential 1 2 3 4 5 6 7 : '? Coaaaercial 1 2 3 4 5 6 7 .~, Mor rc~td you aspect tnE average values LO De affected if th! properi cs are ritnin 20D to 500 feet of the .r her adult pooksLOre? pecnaze Decrease Decrease No Increase Increase Increase 20: 10-20: D-10S Fffect 0-10: 10-20: 20~ l3. Single-family residential 1 2 3 d 5 6 7 ~.. ld. Multiple-family residential 1 2 3 4 5 6 7 15. Commercial 1 2 3 4' S 6 7 Questions 16 and 17: Based upon your professional experience, hoc reuld you evaluate the impact of locating an adult bookston vitnin 200 feet of an ana on the folloring: 16. It the area is residential: Substantial Some No Same Substantial lncnase Incnase Effect Decrease Deenase a. crime 1 2 3 a S D. traffic 1 2 3 4 5 c. litter 1 2 3 d 5 d. rroi se 1 2 3 d 5 e. safety of rumen and chtldnn 1 2 3 d 5 f. general puality of life i 2 3 a 5 p. cents 1 2 3 4 i h. loitering 1 2 3 t 3 17. If the ana if commercial: a. crime D. traffic c. litter d. noise e. safety of rumen and children f. general owlity of the business envirorment g, rents h. loitering i. ability to attnct other n!r DYSSMSSlS j. abflity of other businesses to attract customers 1 2 3 t 3 1 2 3 d S 1 2 3 4 5 1 2 3 4 5 1 2 3 d 5 1 2 3 4 S 1 2 3 d 5 1 2 3 d 5 1 2 3 4 5 1 2 3 4 5 puestions 18 and 19: Based on your professional experience, hoc could you evaluate the impact of lopting fro er more sdult bookstores rithin 7000 feet of each ether and rithtn 200 feet of an ana on the folloring: 18. If the aced i5 nsiderKlal: Substantial Seine No Same Substantial Inaease Incnase Effect Oecntse Detnase a. crime 1 2 3 4 3 D. 2nffic 1 2 3 d 5 c. litter 1 2 3 4 5 d. noise 1 2 3 d S e. safety of rain and children 1 2 3 d 5 f. general ouality of life 1 2 3 4 5 g. Hots 1 2 3 d 5 h, affect lai uri ng 1 2 3 d 5 i o_ l i 1C, jf l : the aria is C0~lr: SUDStantial Increase Some Increase No Ffflct Some Decrease Substantial Decrease i. a. trine 1 2 3 d $ ~t~, ;~ • D. traffic 1 2 3 d $ c. titter 1: 2 3 d $ d. noise 1 2 3 ~ $ e. safety of women and Children 7 2 3 d $ f. general quality of the business enviromaent 1 2 3 d $ g. rents 1 2 3 4 $ n, loitering 1 2 3 d $ i. abiliy to attract other bVS7MSSlS 1 2 3 6 $ j. ability of other businesses to attract cuztomers 1 2 3 6 $ 20. In general, to what degree do you feel adult eniertaieaent businesses affect properly values? 21. Nhy do you feel this way? 1. t 22. OPT10NA1: Name, Name of Firm, and Address 1 ' Yould you wind tf we conLCteO you in the future regarding your responses to these wrvey questions? ' Yes MO ' Thank you again for your assistance rith this survey. 13261/1dd3A ]2/OC/91 ,\ SECTION 9.1.1.05 DEFINITIONS "' A. PURPOSE The purpose of this Section is to promote consistency and ,~ pry ion 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 t rougnout tm s ect~on: 1. The ward "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 ~j interchangeable. 4, cords in the present and future tenses are interchangeable and words i~Y~ in the singular and plural tenses are interchangeable, unless the context clearly indicates otherwise. 3. 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 *emainder of Title IX, the Title IX provision shall prevail. C. DEFINITIJ':S Unless otherwise specifically provided, the words and phrases usea'in ine Chapter shall have the following meanings: A ACCESSORY BUILDINGS AND STRUCTURES (NON-RESIDENTIAL): A building, part o a u~ a~ng, or structure tnat ~s ~ncidenta or subordinate to the main building ~r use on the same lot, which accessary 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 the accessory building is a continuation of the roof of the main building, the accessary building will be considered a part of the main building.' ACCESSORY LIYING QUARTERS: Living quarters within an accessary building that is ancil cry 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 prohibiteG from containing kitchen facilities or any other area used for the daily arepa~ation of food. J ~i~27/igLc~ -~ ~c ,~~ ,oi .- UU`.3 ,~ ~" ~ ADULT ENTERTAINMENT BUSINESSES: Adult entertainment businesses snap be oeri ned as roi.ows: 1 r l Ad k St li h h i 3 . u oo o e means an estab ment av t s ng as a substantial or • • signi.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, ahd other materials that are distinguished or characterized by their emphasis on matter depicting, describing, or relating to specified sexual activities or specified anatdmical 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 capacr:y o ~ ty t~ 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 Dy patrons therein. 3: Adult Mini Motion Picture Theater means an enclosed building with a capac~:y or Bess roan r~ty 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 A;ote1 means a hotel or motel where material is present?d that ~s distinguished or characterized by an emphasis .an t matter depicting, describing or relating to specified sexual activities or specified anatomical areas. 3. Adult Notion Picture Arcade means any establishment required to o~tnin a p?rmit under napter 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 t~ show images to five or fewer persons per machine at any one time, and where the images so displayed are distinguished or characterized ~;~ an empha;is on depicting or describing specified sexual activities or specified anatomical areas. o. ~abarat means a nightclub, theater or other establish-gent that ems live performances by topless and bottomless dancers, "go-go" daa:ers, exotic Banter;, strippers, or Similar entertainers, where such perfonances are distinguished or characterized by an emphasis on specified sexual activities or specified anatomical areas. 7. Escort Bureau and Introductory Services means any estaDlishrwnt requ;rec to ootain a peroit pursuant to Lhapter 5.55 of the Municipal Leda. 8. ;;nssa;e Parlor or 3ath House means any establishment required to o~ta,n n p? mlt aJ*sJa~L to Lhapter 5.12 of the Garden Grove ' "~-'ci~n' Code wh?r~, fir any fom of consideration or gra:pit±, ' :;??~%19:8: ~~: ~1~ ~, massage, alcohol rub, administration of fomentations, electric or „" magnetic treatments, or any other treatment or manipulation of tr,2 human body occurs. - 9: Model Studio means any business where, for any form of consideration f~> - =' oror gr~ty, figure models who display specified anatomical areas are - - '= provided to be observed, skeuhed, 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 orm o consideration or gratuity, provides a place where three 'or more persons, not atl 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 entertai!nnent 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 anatorical 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 puolic or is not screened and controlled by employees. b. 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 Dy said establishment. c. one of the primary purposes of the business or establishment is to operate as an adult entertainment establishment as demonstrated by its services, products or entertainment constituting 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) perent of total operations or revenues received. G. Certain types of "adult merchandise" are displayed or merchandised. For purposes of this Section, "adult merchandise" means adult, sexually oriented implements and paraphernalia, oa/~<!gl vi'. w,,, such as, but not limited to: dildo, auto suck, sexually oriented vibrators, edible underwear, benwa balls, inflata5le .~- orifices, anatomical balloons with orifices, simulated and batiery operated vaginas, and similar sexually oriented devices. AGRICULTURAL CROPS: The use of property far the growth and harvest of agricu tura crops, including the display or sale of seasonal agricultural products graven on the parcel or nn adjacent parcel in a roadside stand. ALLEY: A public or private thoroughfare or way that may afford a p n mary or a secondary means of access to abutting properties. ~ APARTMENT: A room, or a suite of two or more rooms, in a multiple we ing, 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 d?- vic s, includin3 but not limited to pinba]1, air hockey and video games, far us? by the public at a fee. B BAR: A public or private business open to the general public and Ticensed by the California Department of Alcoholic Beverage Control with a~ "on-sal? premises" type license, providing preparation and retail sale of alcoholic bev?rages 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 ui Ong, structure. or portion thtreof in that are located one or more tables designed or used for play of pool, billiards. bagatelle. snooker, hump?r pool, or similar names, or any establishment required to obtain a pe nit under Chapter 5.4b.20 of the Municipal Code. BOARDING/LODGING FACILITY: A building containing a dwelling unit where oegrng rs provided, 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, ex:luding all fours of vehicles even though immobilized. BUILDING FRONT: That side of arty building designed or utilized as the pr~mar-'" y custo.•ner or pedestrian entrance to the building. Each building may ya•rz nor? than one side of the building d?signet?d as a front under t'~i s definition. 6UiLDING HEIuiT: T.~e vortical distance n?3sur?d from tie av?rag? lev:l o. tn? our Orn3 sit? to the upp?most roof point of the structure, ?ccludin3 chimneys, antennas, arc hit?ctural appurtenances and similar features. ;752T/1?23A (7i r,~ •~ ..~ (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 '..i shall count toward the maximum allowable days allocated .:': for special event sales. (9) A11 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 Lhe sale. SECTION 9.1.2.06 ADULT ENTERTAINM~CNT USES A. PUZPOSE. The City Council of the City of Garden Grave finds that adult entertair~.^.ient businesses, as defined in Section 9.1.1.OSC, because of their very nature, have certain harn~ful secondary effects on the community. These secondary effects include: 1. Oe?reciated property values. vacancy problems in commerial space (particularly in the newer commercial buildings). 2. Interference with residential neighbors' enjoyment of their property due to debris, noise, and vandalism. 3. Higher crime. rates in the vicinity of adult businesses. 4. alighted conditions such as a low level of aaintenance of commercial preaises and parking lots. . The City Council further finds that the restrictions and development standards contained in Lhis Section will tend to mitigate, and possibly avoid, the harmful secondary effects on the community associated with adult entertainment businesses. Tne primary purpose of these regulations is the a~eliaration of haraf,~l secondary effects on the community. The reg~Jlations contained i~ this se:tion are unrelated *_o the suppression of free speech and do not limit access by adults to materials with First Amendmeit potential. a885T/1907A (31) ~~/J~/91 ~~.. , .... . ~ 8. SPECIFIED SEXJAL ACTIViTiES AHD ARATOMiCAL AREAS. Pursuant to Se~tion 9.1.1.O5L, an adult entertainment business is any business or establishment that offers i u patrons services, producu 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: a~alingus, buggery, coprophagy, coprophilia, cunnilingus, • fellatio, necrophilia, pederasty, pedophilia, piquerism, sapphism, 2ooerasty; or b. Clearly depicted human genitals in a state of sexual t 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. tiasochisa, erotic or sexually oriented torture, beating or the infliction of pain; or f. :rotic or lewd touching, fondling or other tontact with an animal by a human being; or g. Human excretion, urination, menstruation, vaginal or anal irrigation. ~i. Dancing by one f1) or more live entertainers in n manner dis?laying specific anatomical areas. 2. Far the purpose of this Section, `specified anatomical areas" sna11 include the fallowing: 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. 488~T/19~7A (,?1 r-• ,: ~• c. sPFCIa~ Rs~u~n~:o::s. ., r In a C-2 zone, where the adult entertainment businesses regulated by this part would otherwise be permitted, it shall be unlawful to establish any such entertainaent 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 entertairmient" 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. ,~ M 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 prop~rtY 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. p, VARIANCE OF LOCATIONAL PROYISIONS. Any property owner or his authorized agent may apply to the hearing body fora variance of any location~l provisions contained in this Section. Tne hearin, body, after a hearing, may grant a variance to any locational provision, if the following finCings 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 Section will be observed; 2, Thai the proposed use will not unreasonably interfere with the use and enjoyment of neighboring property or cause or exacerbate the developeent of urban blight: 3, That the establishment of an additional regulated use in the area will oat be contrary to any program of neighborhood conservation or revitalization nor will it interfere with any pro3ran being carried out pursuant to the Cof~nunity ' ~cdcv?' pin?"t ! aw; any 48857/19074 (33) 0:;'Jo/3. ~~ ~ .. ~r 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 ,: Development Services Department shall prepare the necessary application _ - ~ form for this variance. ~ E. ADULT h~RCHANDISE IN NON-ADULT USE BUSINESS. 1. Definitions. For the purposes of this Part, "adult merchandise' is de inked 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 establishment not included in Section 9.11.OSC. 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. Se re ation of Adult Merchandise. Retailers classified as non-adult use esta ~shments she d~sp 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 accomplished with partitions or said adult materials may be displayed in separate _ rooas. ~ 4. Access by Minors. Non-adult use establishments shall provide controls su r'~cient to prohibit access by persons under eighteen t (16) years of age to areas screened or segregated far the purpose of selling or displaying adult merchandise. S. Certain Merchandise Prohibited. Non-adult use businesses shall not asp ay or men an ise a u t, 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. F. NEWSRACCS. News racks shalt not display specified sexual activities or specified anatomical areas. . S:CiIO:: 9.1.2.07 ALCOHOLIC BEYERAGE SALES A. PURPOSE. To establish criteria and conditions for uses that sell, serve, or ai ow consumption of alcoholic beverages. 488~T/14~7A (3:? V: :~ REAL ESTATE vROFESSIONAL SURVE7 vlease caaolete this brief survey and return it to the City of Grden Grove, City Manager's Office. Dy wren I, 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 tnrougn the p*actice of your profession, do you have an opinion as to vnether the presence of an adult bookstore affects the resale or renUl raluls of nearby properties? Tes No epiMon 2. Nov many years Mve you practiced in the nai estate profession? 3. Nor many yeah Aare you practiced real estate in the Grden Grove area? _ Questions 4 through 1S: please read the following information about a hypothetiea] neigMorhood and respond to a far questions in terms of your professional experience and judgwent. A w/0d1c-inCOee nsiderKial neighborhood border amain street that contains various commercial uses that serve the neighDOrhood. Although west of the Mlghborhood is eemprised et single-family Homes, then an two wltiple-family residential complexes in the neighborhood as cell. A eoexrCial building recently has Deco! vscart and rill open shortly as a ical adult bookstore. (A •typiul- adult baokston in Wrden Grove also contains several 'peep shot ootns. ~ en an ~ro other adult bootstvns er sfeilar aetivitties in the area. Then is no other vaurK ce®erciat space presently available in the area. Based upon your professional experience, hot could you expect average ratues of the folloring types of property to be affected tf they are less than 200 feet gray from the net adult booksten? (Circle the appropriate naaeer for each type of property.] Decrease Decrease Decrease No Increase Increase Increase 205 10-205 0.105 Effect 0-1 OS 10-205 20'. <. Singh-family nsidentiai 1 2 3 4 5 6 7 i. Multiple-family nsideiKiai 1 2 3 4 5 6 ~ 6. Cowaeroiat 1 2 3 t 5 6 ~ Nor mould you expect the average value to bt affected 1f the properties are rithin 200 to 500 feet of the new adult bootston? Decrease Decrease Decrease No IMrease Increase Increase 20: 10.20: 0-105 Effect 0-1OS 10-205 20: 7. Single-family nsldential 1 2 3 ! 5 6 ~ B. Multiple-family residential 1 2 3 a 5 6 7 9. Lamaercial 1 2 3 4 S 6 7 Aszuw flat the aer sdult bookstore d1l be leafed rtthin 1000 feet of an exlstinq adult bookstore or other adult entertainment use. Crsed upon your professlenal experience, hot could you a:pact the average values of the folloring types of properties to be affected, if they an less than 200 feet gray tram the new bookstore? Decrease Decrease Decrease ro Increase Increase Iaer'eese 205 10-2Q5 0-1 OS Effect 0.105 10-205 205 r l0. Single-family nsldential 1 2 3 4 5 6 11. Multiple-family residential 1 2 3 a 5 6 7 12. Commercial 1 2 3 4 5 6 7 1 ' i;or could you ax Dec: the average values to De affected if the DroDerties are witnin 200 to 500 feel o` the nM adult DOOkitere'.' Decrease Decrease Decrease xo Incroase Jncrease Increase 20>< 10-2C'. 0-10; Fffect 0-105 10-20: 2C: 13. Single-family residential ~~~~~ 1 2 3 4 5 6 7 ta, Multiple-family residential 1 2 3 6 5 6 7 15. Goenercial 1 2 3 4' S 6 7 puestions 16 and 17: Based upon your professional a:perienee, hw could you eralwte the impact of locating an adult bookstore ritnfn 2D0 feet of an area on the following: 16. If th! area is residential: Substantial Some xo Same SubsUntiai Incroase Increase Effect Deeroase Oecroase a. crime 1 2 3 1 5 b. traffic 1 2 3 6 3 c. litter 1 2 3 4 S d. noise 1 2 3 1 5 e. safety of women and chiidron 7 2 3 1 5 t. general quality of life 1 2 3 / i g. roots 1 2 3 1 5 h, loiteri~ 1 2 3 4 5 17. 1f the aroa if eoaaaercial: a. crime 1 2 3 1 S p. traffic 1 2 3 4 5 c. litter 1 2 3 / 3 d. noise 1 2 3 4 i e. safety of reaen and childron 1 2 3 4 3 t, general quality of the pYSinlss MrirenaRnt 1 2 3 1 ~ g. rents 1 2 3 / S h. loitering 1 2 3 4 S t. aDtltty to attract Other ner Ousinesses 1 2 3 1 5 J, aDflity of other puslness es to attract cnstmers 1 2 3 / 3 Questions 18 and 19: Based en your professional experience, how ronld you evaluate the Impact of locating taro or sore adult bookstores rfthin 1000 feet of each other and ar1LMn 200 feet of an area en the telloring: 18. If the rroa is rosldentlal: SxDSLetial Some Mo Same SuDStintial Incroase Increase Effect Decrease Deeroase a. crime 1 2 ~ 4 S 0. traffic i 2 3 4 5 c. litter 1 2 3 / 5 d. noise 1 2 3 / S e; safety of rumen and cnildrtn 1 2 3 4 ; f, general quality of life 1 2 3 4 S g. rents 1 2 3 4 S h. affect loitering 1 2 3 4 5 1?. if the area is commercial: SuDZtantial Same No Some SuDStantial Increase Increase Effect Decrease Decrease a, cries! 1 2 3 4 5 D. traffic 1 2 3 a 5 c, litter 1: 2 3 4 5 d. noise 7 2 3 4 5 e. safety of rumen anC children 1 2 3 6 5 t. general quality of the business environment 1 2 3 4 5 g. rents 1 2 3 4 5 h. loiurfng 1 2 3 a 5 t. ability Lo attract other businesses 1 2 3 4 S j. ability of other businesses to attract customers 1 2 3 4 3 20. In general, to rhat degm do you feel adult entertainaKnt businesses affect property values? 21. Yhy do you fell this ray? 22. DiTlONAL: Name, Name of Firm, and Address .,.~ You1d you a>ind if re contacted you in the future regarding your responses t0 these wrrey questions? fes MO Thank you again for your asslsUnce r1tA this survey. 1326I/1443A P- n ~,-,,,.~ ,r 02/04/91 ~ ~ ~ "' 'rT/' /~!~ ~ ~~~ . INCAindim~apotis http://www.communitydeferase.org/cdcdocs/lenduse/htrnUincaindienapolis.cflr: Appendix A Analysis of Adult Business studies in Indianapolis, Indiana and Los Angeles, California. A. INDIANAPOLIS, INDIANA In February, 1984, the Division of Planning in Indianapolis published a report entitled Adult Entertainment Businesses in Indianapolis: An Anal.} sis . This report contained the results of an evaluation of the impact of adult business upon the surrounding area in terms of crime rates and ~! real estate values. Incidence of Crime Methodoloav. The Indianapolis study assessed the impact of adult entertainment businesses on crime rates by reseazching six azeas containing adult businesses and six similaz areas containing no adult businesses. The six study Areas were selected from among the forty three adult business locations. The criteria used to select the Study Areas were their zoning mix, population size, and the relative age of their housing stock. The Control Areas (having no adult businesses) were chosen on the basis of their approximate location to the Study Areas and their similarity in terms of population size and zoning mix. Of the six study Areas, two consisted primarily of residential zoning, two consisted primarily of commercial zoning, and two contained a mix of both residential and commercial zoning. All Study and Control Areas were circular in shape with a 1000 foot _ radius. The Indianapolis study evaluated crimes in the Study and Control Areas for the years 1978 through 1982. The study compiled all reported incidents to which police were dispatched. This data were assembled into two groups: Major Crimes and Sex-Related Crimes. Major Crimes included Criminal Homicide, Rape, Robbery, Aggravated Assault, Residence and Non-Residence burglary, Lazceny, and vehicle Theft. Sex-Related Crimes included Rape, Indecent Exposure, obscene Conduct, Child Molestation, Adult Molestation, and Commercial Sex. Results. The evaluation found that for both the Study and Control Areas, the rate of major cries 1 of l9 11/30/1999 4:34 PM INCAindianapolis http://www.communitydeferase.org/cdcdocs/Imiduse/htmVincaindianapolis.cfm was higher than the corresponding rate for the Indianapolis Police District as a whole. The average ~+ annual rate for major crimes in the Study Areas was 23 percent higher than the corresponding rate fy in the Control Areas. Comparison of the rates for sex-related crimes indicated a considerably larger difference between the Study and Control Areas. The average annual rate for sex-related crimes in the study Area was 77 percent higher than the corresponding rate in the Control Area. The study also found a strong correlation between the crime frequency and the residential character of be study areas. Crime rates were 56 percent higher in predominantly residential areas than in ~" predominantly commercial areas. The study found a more acute difference regarding sex-related it crimes. Sex-related crimes occurred four times more frequently in predominantly residential areas than in areas that were substantially commercial in nature. Aooendix B Real Estate Impacts Methodoloav. The Indianapolis report also evaluated the impact of adult businesses on property values. The report approached the evaluation from two perspectives. The first approach compared the residential property appreciation rates of the study Areas to those of the control Areas and to a larger geographical area that included the study and Control Areas. The second approach surveyed professional real estate appraisers to establish a "best professional opinion" regarding the mazket effect of adult businesses on surrounding land values. The first part of the evaluation examined three sources in the assessment of residential property appreciation. These sources were: the Indianapolis Residential Multiple Listing Summaries of the Metropolitan Indianapolis Board of Realtors; 1980 Census Data; and the annual lending institution statements required by the Federal Home Mortgage Disclosure Act. The second part of the evaluation solicited the opinions of members of the American Institute of Real Estate Appraisers (AIREA). The survey sample was drawn at two levels. A 20 percent random sample of AIItEA members from across the nation was constructed. A 100 percent sample of professional appraisers with the MAI (Member Appraisal Institute) designation, who practiced in the 22 Metropolitan statistical Areas similar in size to Indianapolis, was complied. The survey questionnaire was formulated to solicit information concerning the effect of adult businesses on residential and commercial property located within one to three blocks of the business site. Results . The report adopted the following conclusions regazding the appreciation of residential 2 of 19 11/30/1999 4:34 PM INCAindienepolis - http://www.wmmunitydcfense.org/cdcdocs/lendusc/htmVinceindianapolis.c[m properties. First, residential properties within the study Areas appreciated at only one-half the rate of the Control Areas and one-third the rate of Center Township (representing the performance of the mazket at a broader scale). Second, while residential listing activity declined 52 percent in the Control Areas and 80 percent in Canter Township in the study Area listings increased 4 percent. The report found that "twice the expected number of houses were placed on the market at substantially lower prices than would be expected had the Study Area real estate mazket performed typically for the period of time in question." The tabulated results of the professional appraiser survey aze depicted in Table 1. From these results, the report concluded that: 1. The large majority of appraisers felt that there is a negative impact on residential and commercial property values within one block of an adult bookstore. 2. The negative impact decreased markedly with distance from the adult bookstore. At a distance of three blocks the negative impact was judged by appraisers to be less than half that when _ compared to a distance of one block. 3. The majority felt that the negative impact was greater for residential properties than for commercial properties. !J Table I Effect of Adult Businesses on Property values in Indianapolis, Indiana Decrease Decrease Decrease No change Increase Increase 20% or 10 to 1 to 1 to 1 to more 20% 10% 10% 20% Residential Property 3 of 19 11/30/19994:34 PM INCAindianapolis http://www.communitydefense.org/cdcdocsilanduse/htrnVincaindianapolis.cfm 4of 19 One Block Radius 20% National Survey 21.3 24.5 34.1 20.1 0.0 0.0 100%MSA Survey 19.0 25.4 33.6 21.1 0.9 0.0 Commercial Property One Block Radius 20% National Survey 10.0 19.3 42.6 28.1 0.0 0.0 100% MSA Survey 9.5 20.3 39.9 29.9 0.9 0.4 Residential Property Three Block Radius 20% National Survey 1.6 9.3 25.4 63.3 0.4 0.0 100% MSA 11/30/1999 4:34 PM INCAindianapolis http://www.wmmunitydefcnu.org/cdcdocs/landuu/htmUvwaindianapolis.cfm Survey 2.6 7.8 28.9 60.3 0.4 0.0 Commercial Property Three Block Radius 20% National Survey 0.8 5.2 16.5 76.6 0.8 0.0 100% MSA Survey 2.2 3.9 16.8 75.9 1.3 0.0 ^1 The Indianapolis appraiser survey included a question designed to help establish the basis for their opinions regarding the degree to which adult businesses affect property values in general. Almost 90 percent of those responding to the survey provided responses to this question. In the national survey, 29 percent saw little or no effect on surrounding property values resulting from adult businesses. They listed as a basis their professional experience; the observation that this use generally occurs in already deteriorated neighborhoods; and the feeling that the effect of only one adult business would be inconsequential. S of 19 11/30/1999 4:34 PM INCftindianapolis http://www.communilydeferase.org/cdcdocs/landuse/htrnVincaindianapoliscfm One half of the respondents projected a substantial to moderate negative impact on surrounding property values. Their responses were based on the feeling: that adult businesses attract "undesirables" to the neighborhood; that adult businesses create a bad image of the azea; and that this type of use offends the prevailing community attitudes thus discouraging homebuyers and customers from frequenting the area. Twenty percent of the respondents indicated that the potential impact on surrounding property values was contingent on other variables. Many felt the impact would be contingent on the existing property values in the azea and the subjective value of area residents. Some felt that development standazds controlling facade and signage would determine the degree of impact, while others indicated that the nature of the existing commercial area and its buffering capacity as the most important factor influencing the impact on surrounding property values. The MSA survey results closely pazalleled those of the national survey. Two additional responses aze noteworthy. First, some respondents indicating a substantial to moderate negative impact based their opinion on the feeling that such uses precipitate decline and discourage improvements in the azea. second, some respondents felt that the impact on property values was contingent on whether or not it was likely that other adult businesses would be attracted to the azea. B. LOS ANGELES, CALIFORNIA 1 In June, 1977 the Department of City Planning of the City of Los Angeles published a report entitled Studv of the EffectsQf the Concentrationgf Adult Entertainment establishments in the City of Loses. The study includes an evaluation of the impact of adult businesses on both crime rates and property values. Incidence of Crime Methodoloev . The City's study evaluated the impact of adult businesses on criminal activity by comparing crime rates in Hollywood to crime rates for the city. Hollywood was selected as a study area because of its high concentration of adult businesses. The study focused on the years 1969 to 1975, during which time adult businesses in Hollywood proliferated from ii to 88 establishments. 6 of 19 11/30/1999 4:34 PM MCAindienapolis http://www.communiTydeferase.org/cdcdocs/lar~duse/htmVincaindimiapolis.cCm .~ Results. The City's study monitored trends in Part 1 crimes. Part 1 crimes include homicide, rape, aggravated assault, robbery, burglary, lazceny, and vehicle theft. The number of reported incidents of Part 1 crimes in the Hollywood azea increased 7.6 percent from 1969 to 1975. This was neazly double the citywide average increase of 4.2 percent for the same time period. This report also monitored Part I crimes committed against a person (as opposed to those committed against property) and found that they increased at a higher than average rate in brie Hollywood Area. Street robberies and purse snatchings, where in the victims were directly accosted by their assailant, increased by 93.7 percent and 51.4 percent. respectively; compazed to the city wide average increase of 25.6 percent and 36.8 percent. The increase in arrests for part II crimes indicated an alarming differential between the Hollywood azea and the city as a whole. Arrests for these crimes increased 45.5 percent in the Hollywood azea but only 3.4 percent city wide. prostitution arrests in the Hollywood azea increased at a rate 15 times greater than the city average. While the city showed a 24.5 percent increase, prostitution arrests in Hollywood increased 372.3 percent. in 1969, arrests for prostitution in the Hollywood azea announced for only 15 percent of the city total; however, by 1975 they accounted for over 57 percent of the total. In the Hollywood azea pandering azrests increased by 475 percent, which was 3 1/2 times greater than the city wide average. In 1969 pandering arrests in the Hollywood azea accounted for 19 percent of the city total. By 1975, the share had increased to 46.9 percent. The Los Angeles police Department increased their deployment of police personnel at a substantially higher rate in the Hollywood area in response to the surge in crime. The report emphasized that sexually-oriented business either contributed to or were directly responsible for the crime problems in the Hollywood azea. Real Estate Impacts t Methodoloev. The study prepazed by the City of Los Angeles utilized a two point approach in evaluating the impact of adult businesses on surrounding property values. The primary approach sought to establish the impact on property values by monitoring changes in assessed value from 1970 to 1976 for selected azeas having concentrations of adult businesses and for appropriate control azeas. The report selected five study areas containing 4 to 12 adult entertainment businesses. Three study azeas were in Hollywood and the other two were in the San Fernando valley. Four control azeas, having no adult businesses were selected. The study examined property assessment data, U.S. census data, and other pertinent information to determine the rate of 7 of 19 11/30/1999 4:34 PM INCAindianapolis http://www.wmmunitydefense.org/cdcdocs/landuse/htrnVincai~ianapolis.cfm appreciation over the six year study period. The rates for the Study Areas were compazed to the rates for the Control Areas to gauge the impact of adult businesses on property values. J 't The second approach of the study used survey questionnaires to subjectively establish the impact of adult businesses on surrounding residential and commercial properties. Two questionnaires were prepazed. The first questionnaire was distributed to all members of the American Institute of Real Estate Appraisers having a Los Angeles address and to members of the California Association of Realtors having offices in the vicinity of the study Areas. The second questionnaire was distributed to all property owners (other than single family residential) within 600 feet of the Study Areas. The results of these surveys were supplemented with input from the general public obtained at two public meetings held in the azea. Results. The evaluation found that there was some basis to conclude that the assessed valuation of property within the Study Areas had generally tended to increase at a lesser rate than similar azeas having no adult businesses. However, the report noted that in the opinion of the planning staffthere was insufficient evidence to support the contention that concentrations of adult businesses have been the primary cause of these patterns of change in assessed valuation. 8 of 19 11/30/1999 4:34 PM INCAindianapolis http://www.communirydefenu.org/cdcdocs/landuu/htrnVincaindianapolis.cfm The appraiser questionnaire was distributed to 400 real estate professionals with 20 percent responding. The results can be summarized as follows: 1. 87.7% felt that the concentration of adult businesses would decrease the market value of business property located in the vicinity of such establishments. 2. 67.9% felt that the concentration of adult businesses would decrease the rental value of business property located in the vicinity of such establishments. 3. 59.3% felt that the concentration of adult businesses would decrease the rentability/salability of business property located in the vicinity of such establishments. 4. 72.8% felt that the concentration of adult businesses would decrease the annual income of businesses located in the vicinity of such establishments. 5. Over 90% felt that the concentration of adult businesses would decrease the market value of private residences located within 1000 feet. 6. Over 36% felt that the concentration of adult businesses would decrease the rental value of residential income property located within 1000 feet. 7. Almost 90% felt that the concentration of adult businesses would decrease the rentability/salability of residential property located within 1000 feet. ' 9 of 19 11/30/1999 4:34 PM 1NCAindienepolis http://www.communitydefrnse.org/cdcdocs/landuse/htmVincaindianepolis.cfm Respondents to the appraisers' survey commented that the adverse effects are related to the degree of The survey of property owners indicated that almost 85 percent felt tl--at adult entertainment establishments had a negative effect on the sales and profits of businesses in the azea. Over 80 percent felt that adult businesses had a negative affect on the value and appearance of homes in the area immediately adjacent to such businesses. Area property owners and businessmen cited the following adverse effects resulting from adult entertainment establishments. concentration and the type of adult business. They indicated that one free standing adult business may have no effect. A few comments indicated that property values and business volume might increase for businesses that aze compatible with adult entertainment businesses (e.g.: other adult businesses, bazs). A high percentage of appraisers and realtors commented on the adverse effect of adult businesses on neighborhood appearance, litter, and graffiti. 1. Difficulty in renting office space. 2. Difficulty in keeping desirable tenants. 3. Difficulty in recruiting employees. 4. Limits hours of operation (evening hours). S. Deters patronage from women and families. 6. Generally reduces business patronage. Respondents emphasized their concerns about the high incidence of crime. A high percentage of respondents commented that the aesthetics of adult businesses aze garish 1 sleazy, shabby, blighted, tasteless, and tend to increase the incidence of litter and gaiti. Testimony received at the two public meeting on this subject revealed that there was serious public 10 of 19 11/30/1999 4:34 PM INCP.indianapolis http://www.communitydefense.arg/cdcdocs/landuse/htmVincaindianapolis.cfm concern over the proliferation of adult entertainment businesses particulazly in the Hollywood azea. Citizens testified that they are afraid to walk the streets, particularly at night. They expressed concern that children might be confronted by unsavory characters or exposed to sexually explicit material. Appendix B TYPES OF CRIIvIES Part I Crimes Murder Capital Murder Criminal Negligent Homicide/Non-Traffic Criminal Negligent Homicide/Traffic Involuntary Manslaughter/Traffic justified Homicide Sexual Assault Attempted Sexual Assault Aggravated Sexual Assault Attempted Aggravated Sexual Assault Rape of a Child Attempted Rape of a Child ~i Aggravated Robbery/Deadly weapon Attempted Aggravated Robbery/Deadly Weapon Aggravated Robbery by Assault Robbery by Assault 11 of 19 11/30/19994:34 PM INCAindianapolis l2 of 19 Attempted Robbery by Assault Attempted Murder Attempted Capital Murder Aggravated Assault http://w~ww.communirydefense.org/cdcdocs/lenduse/htmVincaindianapoli s.cfm Aggravated Assault on a Peace officer Deadly Assault Serious Injury to a Child Arson with Bodily Injury Burglary of a Residence Attempted Burglary of a Residence Burglary of aNon-Residence Attempted Burglary of aNon-Residence Theft Burglary of a vehicle Burglary of aCoin-Operated Machine Theft from Auto Theft of Auto Parts Pocket Picking Purse Snatching Shoplifting Theft of Service Theft of Bicycle Theft from Person I t/30/1999 4:34 PM INCAindianapolis e 13 of l9 http://www.communilydefrnse.org/cdcdocs/landuse/htmVincaindianapolis.cfm Attempted Theft Theft of Heavy Equipment Theft of vehicle/Other Auto Theft Attempted Auto Theft Unauthorized use of a vehicle Sex Related Crimes Sexual Assault Attempted Sexual Assault Aggravated sexual Assault Attempted Aggravated sexual Assault Rape of a Child Attempted Rape of a Child Prostitution Promotion of Prostitution Aggravated Prostitution of Prostitution Compelling prostitution l 1/30/19994:34 PM INCfvndianapolis http://www.communitydeferase.org/cdcdocs/landuse/htrnVincaindianapolis.cfm Sexual Abuse Aggravated Sexual Abuse ~! ii l Ab d d Attempte Aggravate sexua use Public Lewdness Indecent Exposure sexual Abuse of a Child Attempted Sexual Abuse of a Child Indecency with a Child I st ~t 14 of 19 race Solicitation Appendix C COMPOSITION OF STUDY & CONTROL AREAS BY ZONING DISTRICT 11/30/1999 4:34 PM INCAindianapolis http://www.communitydefrnse.org/cdcdocs/landuse/hVnVincaindianapolis.cfm Area One Area Two Area Three Area Fou : r d Study : ;Control Study ~ Control Study Control :Stu y . °~ Control '.~ 1-SF-3 ii ;~ € 2.92 ii ~` f ;! SF-3 ~ 18.78 ;; 26.97 ! 25.43 22.31 :33.26 :47.29 :22.49 22.39 SF-3-H i : MF-2 ; 3.30 ~ € 2.64 ; .77 2 32 1 72 ` i f . ~ •. MF-3 ~ .94 :1.93 ' 1.38 7.88 :2.64 :1.03 1.00 I i MF-4 ` .28 j ; ; 2.69 `) ~_5 '€ ~ °~ ; f E €€E i€ LO 1 4.47 i 1.45 i > .57 ~ 1.17 < 2.72 :1.02 O ii .43 I `I ;; ~. ~ CS 13.90 .~ 15.88 € 26.54 13.06 € 10.31 ' 1.21 13 16 24.99 a a a CS-1 '~ 1.12 ~ .78 .34 i i .40 :15.44 1.55 CS-H ?E E I GR ~ .98 ? .34 ' j 7.40 S 2.27 1.12 .77 if 1.55 E iE 'I~ LR .54 .89 j .37 3.78 [ f LI ~ ii i iE E i ` ?€ 3.62 AVIATION ~ 3.05 '~ j UNZ ;~ I ~ ii 9 ;° it ROAD ROW 22.59 `~ 22.33 = 17.65 ii 20.53 [ 14.51 12.74 :17.51 14.34 TOTAL (72 12 € 72 12 72 12 ~ 72 12 72 12 72 12 72 12 72.12 ' ~ 15 of 19 11/30/1999 4:34 PM INCAindianapolis hrip://urww.communitydefense.org/cdcdocs/landuse/htmVincaindianapolis.cfm Appendix D QUESTIONNAIItE ~ Please complete this brief survey and return it to the office of Land Development Services by December 4, 1985. Read the following information about a hypothetical neighborhood and respond to a few questions in terms of your professional experience and judgement. Amiddle-income, single-family residential neighborhood borders a main street that contains various commercial activities that serve the neighborhood. There is a building that recently has become vacant and will open shortly as an adult bookstore. There are no other adult bookstores or similaz activities in the azea. There is no other vacant commercial space presently available in the azea. Please indicate your answers to questions 1 through 4 in the blanks provided using scale A through G. scale: (A) Decrease 20% 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°/a or more 1) How would you expect the average values of the sin e-family 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? 16 of 19 11/30/1999 4:34 PM INCAindianapolis hrip://www.communitydefense.org/cdcdocs/landuse/htmVincaindianapolis.cfm 3) How would expect the average values of the sin leg family residential property within three blocks of the bookstore to be affected? 4) How would you expect the average values of commercial property within three blocks to affected? 5) 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 the residemial property within one block of the new business be: (A) much higher; (B) somewhat higher; (C) about the same; (D) somewhat lower; or (E) much lower; than if an adult bookstore occupied the site. 17 of 19 11/30/1999 4:34 PM INCAindienapolis http://www.communitydefense.org/cdcdocs/landuse/htmVincaindianapolis.c[m Store-Front Church Drug Rehabilitation Center _ ........................................................................... ~ :Pool Ha11 P € Ice Cream arlor I ............................_.__......._................................._. :..................................................................................... i Welfare office _ _ __ _ _ _ __.._...._._.................._..............._...._...._._._......._...... ...................g.........._P.................................................................... Video ame azlor Neighborhood Tavern Adult Video Arcade Record Store ~ Topless Bar ....... !'~ Medical Office e p ...... ........ Massa a azlor Branch Library .:r:..:. .:..::._ :...._... .:..:.:_ Adult theater . 6) In general, to businesses affect what degree do property values? 18 of 19 7) Why do you feel this way? 8) Are you affiliated with a professional real estate appraisal organization? 11/30/1999 4:34 PM INCAindianapolis http://www.communitydefcnse.org/cdcdocs/landuse/htmVincaindianapolis.cfm If so, please specify. OPTIONAL: Name and Name of Firm 19 of l9 11/30/19994:34 PM STIiDY 0~ i!#E EFFECTS ~~ T~~ CO~GE~i~~TION ~9~ aD ~~~ ~G~~~~~~0~~~~~~~ ~~~~ ~ a~c~iC~~~l~' IB THE CITY Of 1~5 A~GEIES DEPAI~ T ~rIENT OF CITY PLANNING CITY C-I= LOS ANGELES JUNE X977 it CITY PLAN C~;SE r10. 2~;~!~75 - Counc. ~~ File No. 7C •45:.• -•S._ ~~~ i~ STUCY uF THE EFFEC' S :;F THE COiJCEF!TRATICt~ QF ADULT E:yTERTAiNhiENT ESTABL:SHME~JTS I:'•~ THE CITY OF LOS AyGELES i~ P;eparee row. F ann ~~ ng Committee oi' t:;e Los Arge.es City Counc'i i~ ii Prepared by: Los Ar.ge~:es City Planning Department June; X977 ii TA3LE OF CONTENTS Pace Summary and Recommendations. I. Findings. 4 II. Purpose and Scope 7 III. Methods Currently Used to Regulate Adult Entertainment Businesses g A. Approaches to the Regulation of Adult Entertainment by Land Use Regu 1 at i on 9 1. Boston Approach. e 2. Detroit Approach 10 3. Variations Adopted by Other Cities ~0 8. Alternate or Supplementary Forms of Regulation Currently Available Under State and Municipal Law 14 1. Red Light Abatement Procedure 14 Z. Police Permit Requirements ?5 C. Other Regulations of Adult Entertainment in Los Angeles 18 IV. •Plethodology and Analysis 20 A. Changes in Assessed Valuation Between IS70-1976 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. Description of Hollywood using "Cluster Analysis" 44 Vin= ~_ ;•r ~'?iJ ~ ~~JTS •, Cont ~ d ~ ]eSCri~ti0~ of Studis Cit y .:nd north Holly~ood :r5i^5 C2nSUS Da.a 4~ '~, P ;,' ; =_ ~epzrt:r.~nt Study o` Holly wood 51 ~A6LES I. .:o. of t~rdinances Regulating Adult Entertainment Uses 11 .I. Ordinznces RQgulating Adult Entertainment Uses by D i s p°rs a 1 13 a '.i. C?ty ~o~ncil Files :ela~ing to Adult Entertainment 19a :'. '.970-7o C~,ans;:s in :.ssessed Valuation 24a `:. :stud io City, ~lorth Hol lyt~ood and City of Los ~ng~~es Corr.parison of Census Data 48 :~?. Reported Crimes and Arrests 1969-75 - Hollywood ar,d Cit; of Los Angeles 53 ;~HI3i.S Cxhibit !~ - Generalized Location of Adult Entertainment Sites in Hollywood and Central City, by Census Tract 22a exhibit B - Generalised Location of Adult Entertainment Sites in Studio city and North Hollywood, by Census Tract 22b ~.~PENOICES A. Assessment Data - 1970 and 1976 B. Form - General Questionnaire C. corm - Appraiser Questionnaire D. P,esponse and Summary of Privately-Distributed Questionnaire (not a portion of study) E. Data from U.S. Census - 19G0 and 1970 v ~~': r.~ n1: ;1 1. ~Y'/r V ~ rl. Ty;,?S 0: Cr;; i n_~iC25 tC C,:n _ro 1 ~u:1 , =..t. t. inc,~nL" ,~;. s .,. Two m:tho:'.s ..` regular. ;,~ _r+~,;r a~ttert;inmcn~ b1;in~. -~ use re,ulations havE d;:vc:~cGed :n the uni-•,d Stat2s.~ .hey zre: ~ i) the conCEr,tratior or such us::s in _~ cinch zr2Q c` the ci'•~ as in noston; 2nd 2) .thy :!. p=rs?? C. s~~ch ,._,.; as in ~ of Detroit. The Oetrci: +crdin:.nc~ P;as 'c~ccn ch21' ~nt~C J ..1ty upheld by the U.S. S~:ore~E C~:rt ('~oirnr v5. Arr.~riran ~~Itni-Th22*_?rS, °o S. Ct. r' .~ , .lJ.~o j . -" ~ 6. Effect of "Ad~~Tt EntLrtainr.~en"' R•.:sin2ts~5 c~i the "on~uiity There has bzan some ind i cat i C~ tha _ ter cone^.tr t i cn o" "1du i t 2ntErtainment" uSC; results in in-rc%sc~ rrTT~ and gr?ot`r ~ policE enforcement prehiEms. In tn,: Ci~y cf Lcs An;,e1~;, the Los Angeles Police Dc; artT;~n' -- Zs f Bunt, a l ink b:'~ttire_ri t„c ConCentrati0n Of SuC.i hi:;in~55rs an;; inCr~.l~~d ~~rim2 in `tiE Hollywood community. (The r„ajor porti:,n of a Police Oupartm~nt rEport on th i s sub;; ~Ct i 5 ilc'.r~ i ~~ CCntz in2d. ) '~!h i 7 c sev~ra major cities have ado;~t~d ordin2ncos similar to tho DEtroi: ~ ordinance, no other major city h:s. ;.o our knowladcc, adopted a Boston-type ordinance. Testimony received at ttir•o Gub~l i c r~~e~t i ncs cn th i s subject lizc ~~ revealed that them is 52ripuS ;public concern over the proliferation cf .adult entartsinr~~ent bus~ncsses-p2rticul~rly in the Hollywood dre3. Citizens have to;~cifiEd of being afraid to walk the streets; that some ~;,si~csses h.:v~ left the area or have mocified thEir hours cf cpcration; and that trey are fearful of children being confronted b_v unsavory individuals or of being exposed to soxua'iy explicit nateri.,1. A representative of an adult t~,Later chain testifies? i~ sir.~,~rt ci" the manner in which this business -vas run and in support of the type of Clientele which attend the th23ters. The Planning Ozp~rtment staff is of the ~pinicn that the cegree cf deleterious eff,cts of adult zntertainment businesses depend largtly on the particular type of business and on how any such business is operated. . A,mail survey questionnaire conducted by the Planning_ Department his tended to emphasize general public concern over the - proliferation of sex-oriented businesses and has indicated further, that appraisers, rc~7turs and representatives of Tending institutions are generally of the opinion that conczntration of adult entertainment businesses exerts ne5ative economic impact on both business and residential prepErties. They f~~l that the degree of negativa impact depends upon the degree of ConC2ntr,:tion and on the specific typE of a:lult entertainment business. -~ - The 1970-76 chzn;e in the assessed v~lu2 pf residential anc ccmm~rci.l pr~~Crties c~nt~inin; ccncentr~tions of adult enter- tainment busin~ss25 w~s compered ~•iith ether areas without such ConCentratl0ns, ?nd with the city .s a wh012. On the basis Cf this c~mperison, it cannot b2 concluded th4t properties containing concentrations of adult entertainment businesses have directly influenced the assessed valuations of such properties. C. Qate any ?n~lysis base on thL U.S. Census of 1970 and certain trend d`td from the censuses of 1960 and 1970 as applied to areas of the City containing concentrations Cf adult entertainment businesses are included in the body cf the report and in the Appendix. Scope of the Ordinances Enacted by Other Jurisdictions The scope of "adult entertainment" ordinances encompases a variety of adult activities. Fir example, the Los Angeles Study has considered "adult entertainment" establishments to include adult bookstores and theaters, massage parlors, nude modeling studios, adult motels, arcades, and certain similar businesses. Many other ordinances studied, however, are less broad in their coverage. The Detroit ordinance, for instance does not regulate massage parlors or adult motels, nor does it provide for the closing of any such businesses by amortization, which ti~ould be necessitated by the retroactive application of such an ordinance. Table I on page lI indicates the ordinances reveiwed and the major categories of uses they regulate. Effect of Ordinances Enacted by Other Jurisdictions: The U.S. Supreme Court in Younq vs. American Mini-Theaters pointed out, as ~n~ of the bases for uphc ding the etroit ordinance, Chet the regulation did not limit the number of "adult entertainment" businesses. Our study has indicates that the practical effect of literal adoption of "Detroit" language without modification in the city cf Los Angeles would be to limit the potential 7ocati~ns fir such businesses rather severely. Due tc• the pr2domin?nce cf commercial zoning in "strips" along major and secondary. streets, an ordinance preventing "adult entertainment" business from locating within 500 feet of -residentially zoned property woulc, in effect, limit such businesses to those areas ~~f the City where there is commercial zoning cf greater than 500 feet in depth. Areas with such commercial frontage w~ul include downtown Les Angeles z small part of Hcllyw~cd, Westwood, and Century City. A few industrial areas would also afford a seaer•zticn of this distance from residential properties. The limitation of 1,000 feet between establishments (as provided in the Detroit ordinance) would likely be inzppropriate in the City of Los Angeles inasmuch as commercial z~ning is l~c?ted in a strip pattern e]onS m:~st of the City's ~ppr~ximate 1,400 miles of major end secondary highways. (It is estimated that aUaroximat2ly 400 miles of such "strip" commercial z~ning exists in the City.) -2- Recommendati:ns If the City Council shc•uld find it advisable in light cf the findings of this report t;, reCOmmenc; the preparation cf an ;,rdinanc~ t~ c~ntr;;l adult 2ntert~inment businesses, such an ordinance shoulu be ~•f ? Cispersal type rather than a concentration typa. (Tc build a plannins policy basis for such regulation, the Council may als^ wish the Planning Department to consider the development of appropriate policies for incerp~ration within the Citywide Plan.) If a ~ispersal 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 entert_inment establishments. The Planning Department recommends that a separation between establishments greater than 1,000 feet is necessary and desirable. distance requirements separating adult entertainment establishments fr;,m 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 previsions to regulate signs and similar forms of advertising should also be considered. If the City Council should fine it .advisable to recommend all rf the types of "adult entertainment" businesses included in this study, it should consider whether all such uses should be in the same class any subject tc the same regulations. 4. Should the City C;,uncil recommend the preparation of a zoning ordinance to regulate adult entertainment businesses, other sections of the Municipal Code relating tc 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. Ttie P~ann~-g Departm:nt -ecomm~nds that it b~ inst^uct~d to ~~vi2w existing zoning '~g~lations applying tc the CC zone w`t i c` cu-rent i v pro~h ~ 5 i is "str i p tease s;io~~s ~' and that ttic Zon i r.g Admi n i Strator t;?-ough i nt;;rRretat i on co~~s i der expanding t~tie 'fist of prohi~ited u52s in sail zone to include additional adult entertainment uses as N2rzin v. To assist i.. the r~g~iation of "adut entertainment" 5usi- n~sses: t.y2 City syould continue to vigorously enforce all existing provisions of the Municipal Code re'ating to t.~e subject. including Zoning regulations. -3a- 1 . ~i~DI~~uS :.. A Boston-type ordinance (conc~ntratien) to cor.troi adult entertainment cusinESS2s would not b~ acc~ptahi~ nor desirable in ttie City of Los Angeles. 2. In the event legislation is enacted in the City of Los Angeles there is adequate basis r"or a C~troit•typ~ orc+inancE .dispersion) which requires a distance of X000 feet between establishments and 500 feEt from residential zcr.es. -- Existi~~g locational patterns businesses (in Hollywood, Studio City, r~pres2nt a concentration -ether 2stabiis`~mcnts. (Such patterns are co~ccpt and are due; in fact, to the zoning pattern.} of ae~u't entertainment North Hollywood} actually than a dispersion of contrary to the Detroit City's strip commercial 3. If dispersion is d~si~~d in Les A~g~les.. an ordinance should b~ designed specifically for ty2 C~t~. lG~:-2ct application of the Detroit ord Hance would not be desirailie o•r appropriate in Los Angeles and would, in part, tend to r=suit in a concentration of such businesses.) 4. Statistics provided by t~ti2 Los Ang~ai2s Police Department (LAPDj ind'cat2 a proportionally larg;.r increas? in cErtain crimes in Hollywood from 1555-75; as compared with tti2 City of Los Angeles as a whole. (Hollywood has t~'e la-gest concentration or' adult entertainment businesses in the City.} ^ 5. Statistics provided by the LAPD indicate that t52r~ ties b2~n a large increase in adult entertainment enterprises since 1°59. ' particularly in Hollywood. From Ddc2mber ?.S75 to December 1975., however, there has been a decrease in sucti establishments. ~ C. ~es.timony obtained at two public meetings on the Adult Entertainment study conducted on April 27 and 28. 1577 indicated t~`~at: - +iany•~p~;~ns, including the elderly, are afraid to walk the ~ streets in Hollywood. ' - Concern was e-xprtss~d that children are being exposed to sexually explicit materials -and UnsdVory~persORS. - Some -bus1~55p^5 rro' Trxrger-~^em-ain opzn in the Evenings- and others have left th;: area allegedly directly or indirectl d~,e .to the ~es-Lam l i5~m•ent~ of _adul-t...~rrtertai~rnr~t~usi-r~sses-: y - Irr-Ho ; iywood; some c~rrthes dri~vE the e~1de•rTy to- ~~-ser-v-ic~ ._- .and others pro~vid2 p.riya.t2 guar-ds----gin rttreit par !sing iats_. - __. Nearly all p~rson~s opposed 'the •cvrtco•rttration- ~o-F adulb- a n t-~ r t~ arn~rr e~rt ..activities . 7. Rspons~s to quCS.:onna .:-as Gf t... , ~ •~ indTcat~d tti C `' P'a~nt-:g r,`pa; =~= rav_ 3 ` R' c •- Appra75cr5 ~Laltors ~~ndcrs z*_c. b=1'~v" that cor.c~ntratior o. ad;.f it *••r~ ~ t~ ~r_~ ~Zi:'m~1t ~st3b i is`m;•nts has :?~_ ~... adverse sconomic 2f'~cts on both Cusin~ss~s and Yes;d2ntia: ~ Prof=rty it rc5p~ct to mar!;2t va?uE ~2nta- vaiuC rentability/sa'2abi?tti ~ ~ and ./; ttia~ the zdv~rs~ economic off=cts diminish with distanca but that t:;2 2ffacts ::xt?nd beyonc a :000-foot -adius; and t;izt t:.fie effects are related _ to the dcarco or" conc2nt~ation and to ttic specific t;~p2 of adult ~ntcrt~ainment business. - Besir.2ssmen r-:sid2nts.. ;:tc. bal i2v2 t~; ti= ,, a. t,. ,. co..c~n~ra-- tion of adult enter*.ainment esta5~is`!me„ts has adverse effects on both the quality of lifE and cn 5usiness and property values. Among tha aov;:rse business affacts Citad ar,:: ciffic~lt~~ in r~tai~ing and attracti;:g non- "adult 2nt2rtainmont" businessLs; difficu7tys in r2c;uiting 2mploy2~s; and difficulty in renting office space ~ and ka2ping d2sirablE t=;~z,-,ts. :~morg the adv2rsc affacts on t~:. quaff ity of life cited are increased crimC- the er"foots on c; ildr2n; n2igti5or;;ood appearance. litter and graffiti. 8. A r2vi~w of the percantagc ctianaes in ttic ass~ss2d vacua of commErcial and residential property hetw~«n x.;70 and_,7S for t•`:2 study arras containing conc~ntraticrs of adu it =nt2; tai:~- m2rt businesszs have indicated that- ' .. The three study areas in H o'lv'yood containing suc" ~usiness~s have incr~as~d i~ss ttan t~ and ICSS than t5o City •4S a who?2. Typo ool~y`~od ,Community, a•roas in Ho i lywood ~iuv~ inc~;;ased Jesse t~an~ tt`d~ corr~sper.d~,~~ 'control a; ~as'~; ;iowcv,;-. , one suc~. study a`~e increased by a greater amount t:~an its corresponding cort-ol a:-~a. - The study area in Studio City has increased by a g; ;.a*_2r percentage than its co:~r~sponding "control area". by slightly lower p~rc~ntag,: then the Sherman Oafs-St~di'o City Cntmr2'cityand by. a considerably groat2r percentage i:har. t,ti2 - The study area in North Hollywood has increased by a considerably lower perc;.ntag2 than its cor;~s ondin area, t`2 North Hollywood Community" and the Cites g control d5 d Wh01~, - On tti,: basis of the foregoing it cannot b~ ~ ti adult 2nt2rtair.mznt businesses ,~dV2 dir`ctconcicd~d ^t~ at c~ang2s in the assessed value of commLrcial infiu~nc2d prop2rt i ~s i n t ~~ areas a~.a lyz~d , and res i dint i a 1 g• Th2r2 aro va°ious 2x~sting :aws and zoning] available to effect ro ,, r~9ulations (other t`an ~nt~rtainmont ,usin2sses. P p`r regulation of adult r i 1" ^^~-~ _s - s~i7h dec-ee of t;.iracver i.l inc'._-;. ~~_~_ ~ - :c7:. ' ~ - _ ~n ~=_r to:,^^,:: ent bssinesses a= evidence3 on r_,~ 0 51 {:; ~,;r ~ ~ ~ _.,_ -- .. : i:a.-a;e is F_cb~bly dLn to Police e.^.L-o-ce~~n`. ) I ~ ?i. ^'~:~ Lcs acslas City Coencil, both on its own .:+it:id.tiT•~ ~:.z . - •_:.a sir ~ i,.g of nu~-._rous citizens group: has n_ crosed ~ : z_ i2 _,,• o` apprcaches to limiting the possibly oplete:iou: erect: :` "acait ente-tain:nen*_" business on neig'~borro^c~s. 12: At leas l~J cities have adopted o*dinanc~s ai:c:;lar t~• ~::~: [' Detroit cis~ersal ordinance. Several otter ::it_es :.are :-~iarte~ { ~ otl~e:- io:ms of -eguiations. 13. The De~roit o_dir.ance does not regulzte :rassae ~ariors. 0= -:. I" cities cri.th reaulat_ors, three have i rc_uG'2~7 ::«ssl~:;. ~ 1~1c : r _ v•i::~~_n ::he F~Zr~ie:a cf their zoning orzinan~e. ?'_. .'c-~ cr *_`~~ o~_tios sure?eyed call cut or .Egulzt~ u'~:'y ~o~..~ls :~- G ':~r•= Ui Their ='adi llt E:'ltertainne:~t•' i . Gr: lzanC?. 1S. '_'_`.e Detroit Ordina:~cc is prospective in its a?~~licat:ion ^n., ~.`:~.:^f~:e coos r.et include an amortization o i~ ~ pr v _on, ..~. p::o:~_de for a time period for the removal of eri nL:; ~; , . b~~.-=-asses . Although other such ordinances have ir_=le-ied :s:~-::: ~r~visicns, none had been validated by the courts at the time o~ .:^is s=u~y. i~ c i~ -6- I ~ ~:~~ r ~ ~'~---- ~.~ .-_ . ~~ 'k'.~. ,, ~! ~ ~ _"'' ~i AMUS ~~ - =~-- .. _ ... - '~ _~ -- - _-_. _ _., r. ,~ _- A -.: ~ .~ ~ -~ ~, -~ ~ :* i ;~ l~~l~ i~1` :~i:r.. ~i~ ~I"~ -~ _. •1.. . _ _ .~Jw~~r ... ~1~~ . ,~ ~' II. ' PURPOSE ANO SCOPE ~ ~ ~' On January ':~. 1577, the Los Ang~ies city Council inst-uct~d this Department: wit;^ ti?~: assistance cf ot~2~ City agen~i~s. to conduct a comprehensive study. to det2-mir,~ whath~; ttic concentratior. of ~, so-tailed "adult ant~rtainm2nt~' establishments ties a blighting o:- degrading effect on nearby properties anCior n;:ighborhoods. The te;m "adult ent2:'tainment" is a genE; al term utilized b}~ the Planning staff to collectively refer to businesses which primarily engages in the sale of material depicting sex o; i~ providing certain sexual services. These would include the following: adult ~ ~ bookstores; X-rated t.".eaters; adult motols with X-rated entertain- ment; massage parlors; sexual therapy establishments (other than those operated by a licensed psychologist; psyc`iatrist; etc.); and ~ nude, topless or bottomlLss bars ano restaurants. Ouring the past feN years; there has been :ncr2as Angles over the proliferation of Such CUSin~SSES. The dE-ivation of such concern is moral; sociological and economic. 7~~ positions public rangE from a "laissez faire" attitude t indignation and demand for prohibition. i ng cor.cerr. i n Los sexually oriented va; led---~ eligious, advocated by the to outright moral It should be noted at this time that the topic of news~acks; w.as net dealt ~vith in this study. The primary reason for not considering news:-acks is that; in adaition to the abscncL of a spECific Council r~qu2st far this Department to dial with that subject; this matter has been and continues to be a topic of litigation in ou- state courts. Additionally, ot;:er public agancios: inc'.uding th;: City Attorney: Bu;cau of Str2.t Maintenance, and Building and Safety: arc prese~tl~ pursuing assignments regarding n2wsracks, and it is prEmature to determine whether newsracks could f2asihly bz studied ~, as "adult entertainment" businesses, from a practical or constitutional standpoint. In giving the Planning Department this assignment, the City Council ess2ntiail}~ called for a fact-finding procoss to dat:rmin2 whew adult entertainment establishments; where they exist in t concentration: cause blight and deterioration. When this question has been posed~to the public; there have frequently been anguished retorts to th6 effect that "the answer is so ohvious it is ' ridiculous to even ask the question;" and "what is the City waiting fo; before it takes action to eliminate theses scourges of society" On the other side of the spectrum, certain parties who era against thy: adoption of any regulations regarding "adult cntartairment" question the legitimacy of tie government's int_ri:st in r ~e subject; and t;,~y ;~av2 noted that magazines as "scurrilous" as i:hose sold ir, edult bookstores a-e also avai'abi2 in the markets and drugstores ~' wh~r2 the l i ke l i hood of p;:ru5a? by youngsters i s obv ors l;~ gr~at~•r than within the confines of an adult bookstore (where no parson under ?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 revie~, 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 entertainmentu 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 thF regulation of "adult entertainment" business, including legislatio. 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- t` III. METHODS CURnENTLY L'S ED TO REGULATE "ADULT EiVTERTAI`Jh~ENT" BUSIrlESSES A. APPROACHES TO THE REGULATIOM1! OF ADULT EPlTERTAINh~ENT BY LA~!D USE REGULATION Two primary methods of -2s~'.at?*g "adult znt=rtainmont`~ businesses via land us;, ; Egu ~at'ons 4avc d~v~loped in t.~a L'nit2d Status: tha conc~nt:-ation apprcac;~, as evidanc~d t:, t`2 "Comsat Zones" i1 Boston; anc the disN~-sa1 approach, initiaii~• d~v2loped by Detroit. i. 605tCn Ap rOaCy In Boston the ''Combat Zan?" was officially `stabis`:ed by d.signation of an, ov~~~a~~ Adult Entertzir.ment District in NovLmb2r of :.:74. T;;. pu-aosc cf t~' ovar:a~~ district ~Nas to c; sate an aria i ^ ~~r`~?c ~ a~:; it : oral spacial uses .would he parmi tt~Ci i n dss i rnatec~ C:.mm~::-c i a 1 Zones wy i cti w~ra not permitt;:d in th~sc zon;s c~ a cit~rtid~ basis. The 'Combat Zone" had 2xst~d unofficially for many y~a-s in Boston; as the a.~a i~ qu;:stio.: costa~n~d a majo:~it;~ of the "adult `ntertaiar~cnt" faeilitios i+~ the City. ~Th~ ordinance was adoptoc ir, r~spenso tc co.^.c~rn ova:- the spreading of such uses to ncighbe-hoods w5~rc they wGr2 daemad to tit inappropriate. OthL; considerations inciud~d facilitating the policing of such activities anc allowirg t`~os~ persons ;rho do not carp to to subjected to such busin~ssES to avoic+ t:~em. Under the Boston o:-dinancc. adult boo!cstor~s and "commercial ent~rtainm~;:t businesses" are considered conditional or forbidden uses except in the Business Entartainm~nt District. Existing "adult entertainment" businesses are permitted to continue as nog-conforming uses, hut, if discontinued for a p2:-iod of twoears: may r,ot b:: re-established. Estab ~ ishmant of uses inv a; aas of t+~~ City Ottier t~1dn t~1~ "Combat Zonc" + ogUi r.s a pub': i c `~2aring befor•c the Zoning Board of Appeals. The ~ffectiv?ness and appropriateness of t~~ Bcston approach is a subjECt of cunt-oversy. Ttiere has h~~n some indication that it has •r~suit~e in ar. inc-eas~ ir, crime within the distr'ct and i`at th2r: is an increas:d vacancy :-atL in the 5ur;ounding office buildings. Due to complaints of serious crimi~ai incid~~ts, 1a4~ enforcemznt activities have been increased and a number of liouor licenses in t~~ ar:a have b~;.n : evok;;e+. Sir.ca th;: "Combat Zone" and most of the sur~~curding area aro pa:-t of various ;edevelepment projects; hov~.v;:. the cyanga in ctiaract_r of the a•raa cannot b;: attributed sole?y to the cxistenco of "adult ~ntertainm~nt" busin~s525. -°- TABLE I Number ci` Zoning Ordinances Regulating Specified Adult Entertainment Uses (il Ordinances R~vi~r;ed-:: not adopted) No. of Cities USE Regulating* Adult Th2atzrs ~;~ Adult Bookstores ~g Hini-t`~eaters and coin operateo facilities 5 Massage Parlors (includes "physical culture establishments) Modeling StudiosiBody Painting 2 Pool/Bi71ia; d Nails 2 Topless Entertainment 2 News~acks ; Adult Motels Q * rNur,bers have incorporated-wtiere appropriate-uses entitled "physical culture establishments" and "businesses to w;rich pErsons under- 18 could not be admitted".) i~ The ~~t~Oit dispersal ordinance 0025 not raguiatL r,.assag` parlors. nor dotes it require any existing ~usin~ss to close b: amortization. Many of the more recent o-dinanc2s include amortization provisions and several of th2sa are currc~tly in varying stages of litigation. Perhaps t;~e most comprEhensiv~ ordinance proposed to date ,although not adopted} is that of New York City. The proposed ordinance creates five classes of controlled uses, one of which is entitled 'physical culture establishments" and 's defined as a general class including any establishment which offers massage or other physical contact by members of the opposite 52x. The ordinance would also apply to clubs where the primary activity of such cl~~b constitutes one of the five defined classes of adult uses. The ordinance also provides fog a special permit exempting individual adult uses from amortization requirements when the Board of Standards aid Appeals makes findings regarding: :. The effect on adjacent property; 2. Distance to nearest rosid~ntial district; 3. The concentration that may remain and its effect 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; t;~e 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, i2 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 us:: of loudspeakers or sound epuipment which earl b~ heard from public or semi-public areas. Other Cities impose such controls as design review, protiibition of obscena mate-ial on signs and required identification of the business as "adult". Such controls are a possible alternative o; addition to regulation of adult uses by location. _iZ_ Exterior controls affect t•~hich arL most offensive such controls stems from constitutional right and part of that right. v Slayton; S3 S.Ct. 2628 the aspects of adult businesses to some citi2ens. The basis for the recognition of privacy as a ~he right to be "left alone" as a (See Paris Adult Theatre I 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 controls is discussed by Charles It", Atlantic Monthly, May 1977, no first amendment bar to sign Rembar, in "Obscenity--Farget pgs. 37-41. ti -13- In Los Ang,:l25- the Police D~partrzant has '~v~stigatod t7; ~ffact of "adult ;:nt2-ta.anent" busin;:ss25 '~~ Holiywocc; ant found a link batvraEn the c?ust~ring of those ~stablishm~:nts and an i ncr;:as~ i n c:~ imp . ~ Spa Sact i on V. pages S ~. to 5S). For this r;:ason; anti dui to t`c 2nfcrc~m~nt problems created by such conc~nt:'3tions., t:lam Po',ic~ D~partmcnt is not in favor of a concentration approach .in the city or" Los Angeles. Public t~stimony at hearings aid through Planning Department questionnaires ;ias ind;cated an ov~rwhEiming puh?ic disapproval of this approach for the City of Los Angeles. Detroit App; oath The City of Detroit has developed a contrasting approach to the control of "adult znt2rtainm~nt" businesses. The Detroit Ordinance attompts to dispe-~se adult bookstores and theaters by providing that such uses cannot without special permission, b~ located within 1000 feet. of any other "regulated uses" or ~yithin 500 feet of a residentially zoned area. TSis ordinance was an amendment to an Existing anti-skid .ow ordinance which attempted to prevent furtyer neighborhood deterioration by disp;;rsing cabarets, motels; pawnshops; billiard halls, taxi dance halls and similar establishments rather than a]lorring them to concentrate. The ordinance was imm~diateiy challenged and ever.tuaily was ' upheld by the United States Supreme Court. (Young vs American Mini Theaters 96 5uprem~ Ct. 77?, i.S76.) ' In response to our request; data supplied by the City of Detroit Police Department indi t th ca es at the combination of the dispersal ordinance and a related ordinance prohibiting ~ the promotion of pornography have teen an effective tool in controlling adult businesses. To date; i8 adult bookstores and 6 adult theaters have beEn closed. There a~~ 5~ such bus:nesses still in operation in Detroit and 38 pending court cases for various ordinance violations. 3. Variations Adopted by Ot~~~r 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 contro's estabiishEd 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. 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Z • w U - Z :~ O u '~ w m U Lci -r Z T_ '_-~r C C U1 L•r O H _ ~ v c 0 O 0 .~ n ~a eu ~-+ v r~ z~z o 4 o w o 1~ ~ O an cn w •~ -., cn O c~ ~ v >~ ~ O 7 O _ ..1 U ~ eo a ~+ 1 m C O C O F G -~ ~ 2 O ~ D! O T+ X U ~ ~ O O m O to E 3a ,Q L-: y cn :~ rt a.1 ~ .~ l:.i ~ y 7 R7 . 'O ~y ~ c: c a ~, .-~ ~ a~ 4U B. ALTERNATE OR SUPPLEMENTARY FORMS OF REGULATION AVAILABLE UNDER STATE ANO MUNICIPAL LAW CURRENTLY ~. Red Light Abatement Proc2dur~ Red light abat~m~nt is a mechanism authorizzd by state law which allows local government to control criminal sexual b~:.havior by controlling the places in Whi g such behavior occurs. Sec. 11225 of the California Penal Code gonzrally provides that every building or place usad for illagal gambling; lewdness, assignation, or prostitution; or wtiere such acts occur, is a nuisance which shall b2 enjoined, abated. and .~ prevented. here are three basic steps involved in the City's application of the Red Light Abatement Procedures: ~ (a) A complaint 's filed by the City Attorney based upon the declarations of police officars of instances of prostitution taking place on the premises. ~; (bj 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 busi~css 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 preventi~;g the use of the premises for prostitution forever. Complaints may be filed by citizens, and Sec. ?•228 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 bath time ' consuming and expensi ve. I .~ 14- 2. P~1icc Permit Requirements Suction 103 .f the Los Angeles Municipal Code provides f:~;- the regulation and control cf z variety of businesses by ~~.. p,crmits issuer by the Bot.rd of Police Commissioners. t,~ Parmittees ara subject to such additional requirements 's v m?y be imposed by law or by the rules end regulations ;;F the Bc~r4. Those businesses for which the City of L~s Angeles requires z police permit and which may also be oriented tewarc's ~~ult entertainment include: - A;czdes (Sec. 103.101) - Bath and Massage (103.205) - Cafe Entertainment and Shows (103.102) - Dancing Academies, Clubs, Halls (103.105, 106, 106.1) - Motion Picture Shows (103.108) In some cases, the specific regulations applied t~ ;. business, if enforced, preclude adult entertainment activities as a part of, the operation of the business, with revocztion of the operating permit an available remedy for vielzticn cf the regulztion. The most detailed regulations are applied to cafe entertainment (Sec. 103.102 LAMC} and are summarized as fc110ws: a. Businesses Subject to the Regulati~ns Operation cf cafe entertainment or show for profit, ancJ the operation of public places where Toed or Bever-zges ~re sold cr given away and cafe entertainment, shows, still cr motion pictures are furnished, allowed or shown. The regulation does not apply to bands or orchestras aroviding- music for dancing. b. Cafe Entertainment Defined "Every form of live entertainment, music 5070 band or orchestra, act, play, burlesque show, revue, pantomime, scene, song or dance act". The presence or any waitress, hostess, female attendant or female patron or guest attired in a costume of clothing that ~xpcses tc public view any portion of either breast at cr below the arecla is included with the purview ~~f the ort;i Hance. -15- _ c. Summary of Activities Proh~bitee~ . i ~ on o- -:u o, A i lowing any person for compensat ~~ ~ ~'_ ' acting as an entertainer or participating in any ;-;~_ ~ ~"~. act or demonstration to: (1.} _~ose his or her genitals; pubic lair, buttnc!:~ or 2^y p.or~t~.nr, of the fema?e breast et or rc ~c~-. ~ the areola. ,, ~ (2) Wear: use, or employ, or permit., procure, cour:;:~~~ or assist another person to wear use o; err.p ic;; , I any devicE: costume or covering which gives ==~ appearance of or simulates the yenitalc: putt= ~ hair; natal cleft, perineum o~ any portion of t~~ female breast at or below the areola. The above provisions do not apuiy to a ti~atricai ~ performance in a theater, concert hall or sim'?a- establishment which is primarily :coated to thcaric,:j ~ performances. ` '' t:. :- The permit may also be revoked f ~r conviction o permittee; his employee, .:ent or any ;,er;o^ ~ associated with permittee is partner; dir2:.ior; officer; stockholder; associate or manager of: (1} An offense involving the :presentation, axhibiti~r ~ or performance of an obs~.ene production, mctior „ picture or play; _ (2) An offense involving 7ewe conduct; -- _. (3) An offense involving use of forcz and via i<i~c• upon the person or anot~:r; 1 (4) An off._nse involving m~.sconduct with children; (5) An offense involvin-~ ~aintLnance o+ a nuisar.c: i~- connection with thy. same o; s ~mi 1?~ b~s'n.=.: operar.ion; or; if t!~F: permittee 'gas allox-~:i permitted acts of sexual mi sc induct _ -~~ _,~ committed within thE. licensed preri<<. ' Massage businesses have t~aditionally been regula`.c-: by licensing. The la*.est change in tie m4ss~~,: regulatiors became effer:ive in Noven.~er of 157. Ti::: ' application for a permit. now requires (1) det,.iled information regarding t~~ apalicant; ^ _ (2 ) na~~~e, address of th;: owner and 'e :so. o'. th;_ pr_perty upon or in which the busin~~s is tc h: conducted, and a copy of the lea a or re-t_1 agreement; (~? =cgc~*~,rr.~nt oP ~ pub?..c he T i.r.S p-~or to i~~u-_nc~ of F~-nt for the oper~t:or. cf ~. ~-ss- :c; .. Cpcr~itir_g _ : cui.*.,r..er.ts foY m,ss~ge tLSincs.ES :nci u~:•.. -' ~. =~~':L1:-t i0~ E.~Ch ?^.d~S~gE: to?r'i`!::(. ?.r~n~ -• LcCtl, -r-,:.'1 Cf t}?~` ^C%Ll~s Of G'pCr~tic;•, - pert: J .'•., st of ~v?!? SF1.. s= rv~ ccs G.::c t ~l:i r C. C.st j r_ !'~_CO.~ (? :~t .?%. ^. t: trz=tlIIc^.nt ~ the i:c'.II16 =:I:C= .~~ress cf the pztrcn, n~sa;; of Emp? ogee Inc typ=e of tr4 ~tr.+=~t ~ami n: stercz. Sc-cs_~e~ "pr v~t~" c'.c~a cr "consenting ~~u_t c_u~C'' ;•,~,: cr h~vc ostEns= 5' y been forraec' as zn ~? t2rnativE t^ Tr ss age per l or`. hoc unt i ? rE:~ccnt? y been ~ cgu? r_tcc v~ t^c rECUi*amer.t cf ~ soci ~ . cur perms t, In Jur: ,77 _~ok=~v~r; th=• or.cir.~ncti: est~:b? fishing suc~!7 Tequi ren::nt w~.s ~- c?.~-c~ LIlCO.*.St~.tut~ Cn~. i,~y ._ L'J~ K-*~Se? ~s a:uncip~i Court due tc ur_Teesoa:,h ; ~~striction~ on the f=ecaom of assaci~ticn. Tc c:~t~ . it is urkn: k71 c:hethr::- tre City wi]? zppe~.I ti-.e =u_'r,5 c.r ~raen~ t~~E er~inrr.cE:, -~7•- C. OTHER REGUL~+TION OF ADULT ENTERTAINMENT BUSINESScS IN LOS ::NGELES Reyul~ti~n ;,f a::ult entertainment businesses has a long hist~~ry in Los Angeles. In 1915 the "prevzlenc2 of sex evils arising ~ut of massage parlors" cause the City Council then to enact Section 27.03 (L.F~.M.C.) as "a sefeguerd asa~nst the deteri;,- r~tion of the social life cf the community." The er~in~~nce provide: "(~) It shall be unlawful for any person t~ ~_minister, for hire Ur reward, to any person cf the opposite sex, any massage, any alcohol rub or similar treatment, any fomentation, any bath or electric cr magnetic treatment, nor shall any person cause or permit in or about his place cr business or in connecti;,n with his business, any agent, employee, or servant or any other person under his control or supervision, to administer3 any such treatment tc any person of the opposite sex." . ~ This provision remained in the Cote, in one form or another, until a similar Los Angeles County ordinance was dccl~re~ 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 cf the Los Angeles City ordinance in In Re Maki. This 1943 caso uphelc the constitutional validity of the ordinance, anc;, according to the court, established the primary purpose of such itr~ ordinance a5 the limiting of criminal sexual activity. The late 1960'5 and early 1970's brought a proliferation ~f nude bars and sexual scam joints in the Los Angeles area. In I9u9, 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 tyats cf "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 T~blc II:I pages 19a to I9d.) 2 In Re Maki 56 CA 2d. 635, 1943. 3 Section 27.03.1 Los Angeles Municipal C~Je, 1938. Lancaster v Municipal Court 6 C 3d 805, 1972. -18- ~•,g;~n i-5 i;, t.7;, s~v_-a? Cou^c~ i moti:,ns 'rr;.• „ n_,_ Ccrcr.. • _• co :ine Tyr '.T inv?st'gat._n _n_ pr~p_• _~i~n of ?- o. ~ na~:c_ r_gu ?tT..g ac'u , t t:;eata-s and bcc.:stor•Ls . T~_ adv , c~ o'; t.•~ l,Ti.~' kt'cC:"~•_y uzs SClSE?t, ~i~d ?.t L'. slSSCSt C' OT t~Zt (irT?C•'_, c.C~TOn •'1Cs C~21a;/~~ ~'iCi1L~1T?s t;'.? SLp'`mC Coin-L G.._'.10''. •'C~ar~.-r, tic G;t poi t 0; G' nanca. That d;:c i s' c.. ~~as hanu;:d d;;~~ i n Ju~~ a` .:7~. 0^ J~ _~, _~7~, a Cour.ci? moticn 4:as ,r.t•-cc~~__ Ccu,oi':mar h!i i~inson -aauestir.g a StuC'~ c` cor:c_~~T'c-=tioas ,:. r" aeuit ent=-tair:m~nt Simi ia~ to t':at cf ]~t-cit Tab::. iII r:-ovid.s a g2nera?'z~d summa-y of tr.~ Halo- Ccu,~~' fibs anc actions relating to zdult ~ntertzinmont. ~'iiT- ~~ r.ot part of t~;s study. roc=ntiy cnactd c-dir.-;:_~ C:.::tr01'•i;1g On-s1tE s~1C Of = iC0~lO11C '3.?:'c:-zgcs s:~0u id ~).:. r.ccen'z~d as an atiempt to cc~?troi anothe~ :d~~'.t-tom}•- us_ EffEOtiv~ hiarc`.T i, i577, the los Angzl~; Nu; :ip;.i %c~~~ ~.•ra~ ~.r:?^ded tc .-equ~rE z coeditionzi usN perr!i± for t;: ;: cr.-s;t_ sG' . C'~ ? 7 CC.iO i , C ~cv2rdacs . (COU:iC i ~ r i ? E ~~C . 70 ZC~ City ? 1 an C =~ s~ i~o . 22878 j . Al though a;mec at t:~e r~gu 1 zt i or, rf a;.;,i~~soc'~z: activities in ai ~ cstlbiis`~m2nts s~_rvinc a;~o.:c iic b_f:.'~:_~S, t;Tc sub,;oCt crd~n_nce tirauid, of ccu.~se. _iso ~+z~-C a "$~'~liG1''?t'":,;ff~Ct 1~lth r;:g3i 0 t0 t50st? bl!sin::ss.::. 4?:`T'.C ii_Y~ .cu .`_ er.:,:••t::inment as -~=? ; as z'ceho? ie beverag~s. Serercl~y, the ordinance uould_ in zli cs~s: ;:.qui:-= issuz-z: of c corritiona' use permit fc:^ any business sT~i-g ~?=oho~i:' bova;•zg2s`or on-s it2 :.cnsumption, rath:.r t;~~:~ t~: prev'ou_ p°-actic~ of permitting them as a m~.tte:- of -ic;-` ~~: =~rta'.n z:r.,:s. T~Tc advantage or the n~u p. oc~dur~ is th:.t zs ~. p:-~r;:quisit~ cf approval cf zn individuzi appiica:ion. t`?e~. rust 5a .. pub i is h2zring to d2tarmi r.o ~~!~?et"2. too a-opnsLd ~_s: . ? ? F:z~l: _ detr im;;nta i effect uron n~~rby Frop~rti;,s ?^:. t:T~ n;:ig`borhood in -~hich ~it is being propos2~. In the .ong r~~ t'r.. o-dinanc. may prove to be ar. ~ff~ctivo d2v:c~ tc ; ~q~.~la*.c _~ss ;dispensing alcoholic b2v~r?g's? w~iic1 t~r:t~ to av;. .. ~ct%T~TC"~.ti~g ~ff;:ct on an c::"2Z somz of which m=.:'._ coir.ci• d;.ntal iy, ~.iso be adult ~nt:.rtainment busin~ss~s. _~ __~ . ~ W U ~ 41 ~ m wa = "'~ p = ~ ~ y ~ m m iJ d >,Uy c C C 'fl N R 'G .~ O +a +~ G1 ~ ~ 4f t"1 +~ ~ f~ k a + ~! 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R rr p Fr m O C R 'C A cr» d iT ~t ~r m a O~ m t3.'C n< O cls 9 F+ KOC:tCOm O rr d ~C c>f 'C m ~+fdt~m?oCG~Oh G ~~ R si ~ ~ r-•O o 0 o m r rn O a r G m to R C" +t R b R R ~t C o G C 19 c0 ~t S 7e' K i m f+~Q "0 O cD ~ ID M O C -•+ G M~ M R n. F- n !D m R R m dS~R• tT r o O l9 ? rt rt N O m d ~t tp C r= ~ m m r n rr n m R R O O? M Mr O M m r rt to A d m ~ ~ ~ ~ m ` ~~ O R A ' K rS~ rf t+~CTSZb ~ wR m ~4 r•-~p m ~ m A m J R (~ n t9 R t~ O ~+ O< O r R O O O O R ~ K 3 t l ?O 7 F"~ r-O 3 r~~C O RRRR an d o-1 m~ O 0 O'h~ ~ n n 'fl ~'t 0 0 m *t r 'r GC rM M m m O K S Rn ots O 7cr0 m ROA Sm to m RO ~O r rn rr o e mom r~ O O m m m~-~n ;J ti F+ O R O RGmo~no C' r- ht O 3 R ~-< ~ ~°~ emr -wA ~wm0~ mtmr* O n mo orromo I+OOmrttterttpr„ rn~• ~ r ~ o r ~ ~~ R m~ rn~- rK ~ !t HO R v` r n~v~a . m m o e ra.~ GO~Q~'C 3'L7m0'Q~ORimmO t~rO H ~ 'v ~ m Rr~O n G ~"•' m• r r'v ~ ~p 'Q ~ A~ O h m O A rrr+~d ~.3 m 0 K ,-+ r O m ~.+ O n ~- Rr < b e'>' R. O IZ h+ 7 r n CT m 3 F+- R O S O --~ ~ y m~ R S O . O O -~ ~+ m O o K -+ 10 O tT m ~t m ai m rt ra r d cL Q ~G , A Ip f tt O '< O RA K w.q m 3 errcOrRn ~ ear?3 O map r O -S m~ -v C I • do cm r ~~©~~, m n e ~c•eo rn d F- ~ M-~ O R r* F- 3 0 t+ K ~'t 7 ~ q O m n O ~II m rS G ~+ t m ~.+ C. C O O 'Cf rn ~ ti ... ~.+ O t~ , 3 m d r'C R K• r r 1+ R O r O ~ ~-+ ~ rr m r O ~ ~ '< -Z O m ~ m ~ m ~ O ~ c tit ~ ~4 K R tT R r* r- r• m R O I M- i F+ R ~ O ~ O• m m R ~ !a 5 r_+!lrsA n Rtb ~ Rty ~ 'C 0~~~~m ~ G *~4 ~ ty +~i+- Q m v ~ m < 0 w t: m h0,+ W K ~ rS G m0~0 t+ K < C Q' d ^J ~C C d co O y m N- d h •- C• C13 't m *e v n ~ rr r r ~ ° ~arm~-rr~. ' o o r a -R A R C ~+ O O o A ~+ 27 O R m ~ ~ ~+1 .7 ~ .Q r? ~+ r O r* m is O e0 0 m 0 ~~. r a n mop =~~" mr mn ~~ z o ~~~aKs :~ caf c er O o S n n- ~ K SO rr~j rK . O t7 m R m ~„^ F l IV. ' METHODOLOGY ANO ANALYSIS Methodology . ~. In complying wit`s the City Council's instructions; ttiz 02pzrtm2nt has utilized various available date sources., including property assessment date; U. S. Census data: and obtained oth;:r informaticn germane to the subject in an effort to determine, on ?n ~moiric~l basis; the effects (if any) of adult entertainment Facilities on surrounding business and other properties. The D2partm~nt 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 zttempted 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 ttie 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: ed 2. An analysis of responses questionnaire conducted by y occupied ive known esses. An " without wes also the rate such areas e with the nodes were "market received from a mail survey the Planning Department; * Expert opinions were requested from ' appraisers and lenders through letters Department also sent letters to loczl Sociological Association requesting ~ study. Their replies were limited in in terms of this study. -20- realtors, realty boards, end questionnaires. The members of the American their assistance in this number and not significant A measure of the change from 1S70-76 in assess value" of land and improvements for the propert by and within an appropriates radius of f "clusters" (nodes) of "adult entertainment" busin identical measure of four "control -areas concentrations of adult entertainment businesses mzde to determine if a significant difference in of change in assessment values occurred in between 1S70 and 1576. Comparisons were also mad entire community in which the concentration located. 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 Las 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 Bradstreet '~ computer tape file for the years 1970 and 1976. However, this source of data 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 listed 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 ~1 I00 man-days of work; consequently their information could not be obtained within the time constraints for completion of the study. Items 5, o, .n,' 7, ab.ve, arc the subject of Section III Cf this r?^Cr=, entitled "r'lethods Currently Used to Regulate Hdult ~ ~nt~rt:in~~nt 3usinz55" The P;,liCe Department's re;.crt is ;;iscussec' herein 4s S2ctiCn V. The Planning 02partment's analysis _f t^aiCS 1 thrCU^,n 4 i5 ::25CribCr in C'ctail, below. ' Ctiar~GES Ir; xSSESSED vhLUhTION BETWEEN 1970-76 IN FIVE SEPARaTE ~. aRE~S CONT;,INING HIGH CONCENTRATIONS OF ADULT ENTERTAINMENT BUSIr;ESSES In or~er t~ determine if there has been a significant change in assessed property values which may have been influenced by the aroliferation of "adult entertainment" businesses, the Department has calculated the change in the assessed value of land ?rd imarcv~ments for properties occupies: by, and located within, a 1,000 to 1,800 foot rc;Gius of known concentrations of adult entertainment businesses. Five such areas were selected for analysis, rs ::~scribe;_' below. The year 1970 was selected as the base perioc; because cf the availability of ~aata for that year, and since that point in time corresponds approximately with the beginning cf the pr~]iferation cf adult entertainment businesses in Los Angeles. the percentage change in the assessed "markat" value tf land and improvements for commercial an-d residential ;,reperties was calculated for the 1970 base year anc; for 1976. Similar calculations covering the same time period were also prepares' fir "c~ntrcl areas" (containing no concentration of `du7t 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 contr%1 areas were selectee'. 1. Study and Control Areas On the basis of fielc invesigations and other available :iata, 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 "6" on the following pages, three of these concentrations (or "nodes" of activity) are located in Hollywood; one is in StudiC City; and one is in NCrth Hollywood. In each case, the focal point of the area selected for analysis was the intersection ;,f two major streets, with the adult entertainment businesses located along the commercially zoned frontage of one cr both of the streets forming the intersection. In four of the five areas selected, resie+entially zcnec! and developed properties are situated not farther than one-half block from the commercially-zoned frontage. (One node in Hollywood is entirely surrounded by commercial properties.) -22- J ~. ~'; w Q .t •J 0 .C 12 .O ~ u ~~` ~\\ \\ - . ' ~~~~ .. ...: '~ o 0 N o ~ o 0 '^~ 01 w. \~ •\\ ~~ ~ Q W ~~ >- ~~. Z!~' 0 W~v~ ~ ~~< f' « Z.r ~) i~ Q~~ G ~ + ;~ ~+i2 Q' r Hj~~ ;~ Zvi J - W: J ~ O J = ~ ~ D ~ Q ~ 0 .Z N fY` C J r w ~ c u o e ' ~ ~~ ~ ~ ^ r ~ r r c ~+ o r p c ~ o ~ r .~ t ~t •, ~+ O r ~ ~ i •~ t ~ ~ ~ ~ • M ` ~ ' ~\\\\\ \ ,o ` 0 8 Em ~~ o e ~, - . ~~ o :~ ° ° ~ ~, ~' am ,`C m ~ _ z 0 .~ .r ~. z r •u z ~O .u .~ 0 w t r c F e 0 0 a~ N 0 0 0 Although Mein Street in c'o~•rntown Les Angeles ccnt~ins relatively high concentration of szx-oriented busincsse~ (primzrily theaters, arcades end bcokstores), this arEe eras not selected fcr 4nalysis sine no residential prcpe=ties are located in proximity thereto. In addition, Main StrEEt his traditionally cont~~ined burlesque theaters, arcades, bars and similar typzs cf establishments, and there has baen no significant change in this generalized pattern of land use during the past ten years. In the Hollywood aree, the fecal points of concentration are at the following three intersections: Santa rionica Boulevard and Western Avenue (containing 12 such businesses); Hollywood Boulevard ane~ Western Avenue (9 such businesses); end S:lmna Avenue and Cahauenga Boulevard (containing 7 such businesses). In Studio City; the focal point is east of the mein 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 ~t Lankershim Boulevard and Vine land Avenue (containing 4 such businesses) In the Hollywood are z; property within an approximate 1,000-foot radius of the above namEd intesecticns was included for purposes of analysis. In Studio City it was appropriate to include those properties situGted w=thin rn approximate 1,500 foot radius of the intersection of Eureka Drive; in North Hollywood, property within an ~pproximatc 1,500 foot :adios of the intersection of Lankershim Boulevard and VinelenC Avenue was selected for analysis. -23- nr As ?lso shown in Exhibit "n", three s2pzrzte "c~ntr;,l areas" were est.bli5h2t in H;,llywocd, Each originating at - the intersection Cf two mzj:,r streets and also encompassin, ~ ' all prt;,erty within an zpproximat2 1,000-foot radius Cf the , street inter52ction. C:;ntrol `yeas wort establishEd at: S1ntz M;:nic,. B~JUlevar~ znd Vermont Avenue; Hollywood Boulevard and Highland Avenue; and Hcllywoo:! Boulevard and G:,wer Street. In the S~rt Fern~~ndc Valley, Exhibit "B" ^I indicates one ccntr~l are?, centered ?t the intersection of Lankershim Boulevard and Whipple Street, and encompassing aroperty within a radius of aNprcximately 1,500 feet of t that intesection, relates tc the two nodes of concentration in Studio City and North Hollywood. None of the control areas has adult entertainment businesses within its ,~ boundaries, r~ith the exception of the arez 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 I970 to July 1976 for the commercial and residential property encompassed by the ' applicable radius surrounding etch of the five nodes of concentration, together with their corresponding control ' areas. Fcr purposes of comparison, the same data is shown for the entire city and for the Community within which the study areas are locates'. Since concentrations of adult entertainment businesses coulc have a particular effect on ^ the value of other business properties in an area, a separate tabulation is also shown for only commercizll zcnec; land within each study and control area. ( ab~ le IV~ ~ hs indicated in Table IV, the 1970-76 percentage change in total ass2sseJ "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 slime variance in the magnitude of the increzse, ~ Changes in the three study erer nodes were 2.79, 8.71, and 3.41 percent; compared with increases in the three . c~rrespanding control area of 12.53, 1.94, and 5.09 percent, respectively. The study area node located at Santa Monica Boulevard anJ ' Western Avenue increased by 2.19 percent, compared with a substantially greater increase ~f I2 53 percent in the . "control area" associated with that nude. 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 amount of 5.09 percent. In direct contrast to this pattern, however, the Hollywood and ~ Western node registered an 8.71 percent increase, while its c~rresponring control area increased by only 1.94 percent. ' -24- al 1: C) 'O F Q7 ~ >/ A O G 3~ E U rr ~ ~ G fA 'C GJ ~ m a N .3 CI s= o0 .~ ..i a a a r+ -~ O m ~ c c+ c c o~ ~ 4 ~ ~ ~r~ao ~ E O a~ c a ca -.+ eo w 'C w O C lw a~•~ wy ~ c~ > R Lr3 U ~ ~ vy~ U Lt r-I ~ J CEEl ~ a ~ E ~ ~ COjw~ w o ~ O C ~ O O -.~ O u O -.~ a u y ~ a w tr+ O C C •~-~ fv ~ IC U '~ r` C 1= O 7 b U O d >~ m c+ >~ m O 7 t8 1; i11 Q} '~ ~ b +~ O }+ U 4 m a~ a o+ a .a spy ~a~o ~o > U t~ +1 s Iw h 3.1 ~1 c, o -+ .-~ w ~ ~a ~, .~ cn a ~ ~ y O 0 N m F CJ ~[ V t` C I IA +1 O JJ r C QJ ~ O ~ t1+ ~ E m R ~ ~ ~ U +Oi t0i y al~E !T ~ M a •-1 y b t > 47 'C N U O N s.~ a tV .1 0 a 1 y ~ :; ~ a~ er E ~ C N ~ m ~ y ~ ~ h m y c o W QJ h O d 1 ~ a ac • -.~ ~o o cn v+ 2 - +~ N tp ~a N r I ) r I m I I I ~ N I r~ I r-i Q a+ r~i m r I I I ~ I ~ I I ! 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O ~C O >, 4i O -.d E ~ *~+ ~ U .~ ' ri ~1 a~ o o ~ Wm W ri N 'v I ~ I .~ C I _ ? ~ 7 'D ... ~ •• C 'C > 3 I v ~ I 'C ~ rl C O > ri ( ~ ~ 0) O 'd r+ = I a ~ O .C I y L7 d li .I ~ '~ ~ Z I .ri ~ Q~ ~ ( 7 .a ~t C ~n 7 C G7 I b F o a4-I ... y C O U ..+ a~ v ~ ~ .~1 ~ N ~ P'1 ~ i! ~ ~ .-I O N O+ i C ~ Q7 c y v G ^t ~; O r N ~ N I H ~- QI 1 +•1 r» r••1 4 ~ m tJ1 id -'1 r. I ...1 y O eC -roy 1 ~~v~ es !- Ill ~•••I 10 N d 4 JJ •••r ~ C1 ly I~1 O L"1 117 I > C ~ aJ a.7 v,,.aE ..Ic+wECo p a7 ~ ~ r ~- t G1 G La G = +a ~ 1 ~ ~ E m . 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ZmE Vm tD ~ V LL 1 •O 3 E 0 sa 41 1~ m ~•+ ~• >+ C m V m la Lr Ci mm sb y t Ia Em -•+I~w y to a d ••+ o eD -. - m ty b eQ Q1 L+ C 1 > La m to m m E C C~ ~ O ~ w ~ a C + + ~ 1 •1 •+C iC~i + X P-I 4 .~i +•r h m III CL 10 d7 m Z O O C O m t 'Ct y ~ 41 E Vy saw •p is p V rl ri Q • «3 : G +~ +•1 a o L+ ~+ m t ~ ~~ ~- y •i ~+ 3 S y a ,~ m > O O o c 1 E y X E •I ~t7 C mU U O 4 C-.r d~ w m C -••r .-1 1 1 m 'O y O m •~ ,•1 •p •• 7 >• ~ m E C m 'd y 4 7 r a C O m ~+ .~ O t m m O >. t~ C ••i ~+ rw 3 Q r1 +'1 .~ r3 ~ rD m d lA m V -~ O •~ U O t y m B. m s .•7 C Zy= F Q w o maCy c -•r O c~ -~ > O O t Z m C Io w E 7.O ~„'. .{ Z IISCmm00~• y t's. Ol m 'C ~ ~. t m +•r E E La it L+ i Lay C La y m ~ Oa Law LI ¢~ o v m y y O •a s O Ia C trs m m CL o y .et m ~ z U La ? 3 m m 11 r CL Om L+ C L+ t ~ y o ty Er O G. ••~ m r3 iA 1 W 4 m •~ Ct3 z ~ iL I 1 e N 1 T::a pe-centegE ir,o.•2zs~ in ~sscss?d v~ Duos within tea ttirce study a~2?5. ?5 w::l I as *h~ C~nt"C' ='"c25 %~?s CC1Sldc-c~iv i~ss ir. ~3cn c?s~ th.n pErc~nt°.g~ gz. ins reg75t~r~d b~~ th;. Ho?lvwood Ccmmur.ity or th_ City as ~ whole. In the case of t5a study ar2_ nodes Iocztod in the San Ferr.andc Vz??Cy, t;: ;, pattern appears to b~ somEwh?t more spu•r'~us. T,`,2 study ~rc~ Lodz containing adult ~ntCrtainm~nt busin25525 1oc~ted in S*_ud~o City ~c2nt~:-~d Best of ty2 ir.tc:-seetion of Tuju^ga Avo;.ut and Ventura Bou i Eva:'C' ; i ncreased by 74. S3 perc;:nt -• the ; argest i ncrEesr of any of the ar2r.s znzlyzod. In d:ract cont:-ost; the "adult entertainment rood:" located at Lank2rs`~im 3ou'ovard and Vinoi_nd Avenue increased 5y only x.2.6: pa:-cent. The one "control ,r2a" associated wit; these two S.n Fornando Valley nodes increased ~y 42.7c" pc~-c2nt -- ~ subs*-?ntial'y grEat~r gain thin the Norty Hc'.lya;oad nodes. but 22 p~rcant 'ass than ttie Studio City node. rWhath~r t`!~ stia-p percentage incra~se shown. for the Studio City nodr_ wzs the direct r~suit of recant reassessment cannot 5~ ro=dily d~tcrmin~d.) The increase in ass2ss~d value wit`:in the Studio City study era was virtually the same as that cf the entire Stierman Oaks-Studio City Community but r.imost twit: the pare^nt;;ge gain for comma:-ci3i and ;csidEnti31 properties in t~~ entire Cit}•. Thy Nerth HoilyV;oed study cr2c`. inc~2~s~d by considerab;y lower p~:-csntagz than the NortS Holly~ood Community and the City ~s a whole. tJit,`~ regard to commo-cizz propErt~cs considcrtd s_paratCl~~; Table IV-•A reveals thzt ttie percentage c~:ang_ in ~ss~ssed values ;,f lend and improvements ccmbinec ws g~ner~lly iowar in ail study are4s thin ir, thzir corresponding cont~oi ere.~s. One notahi;: excEptior., ho~~EvEr; is tie Sant? Monica Boulevard and Western Avenue ncce wtiich inc:-2asEd by 3.4 percent, w"~i ie its car; spending cor,t~el are= (Sint` Monica end Vermont) d2craas2d by o.38 p3rc2nt. In Hcily;•rood the c`:ano2 in assessed v~iues of ?li study znd control '_r2as was 1255 ttian in tho entire Hollywood Community. In ttie San Fa;nando Va11ey the two study aroas botti increased lass thin the entire communities -withi:: which ttiey a•r~ s itu;:ted. Z. Conclusion •~ ChanSes in Asscss~d V~luat;cn On the basis of t~~ for~goir.g, t`2r~ wou'.d s~~m t~ h~ scm~ basis to concluda that the assessad valuation cf property withi;, the study ar-~as cont~~ining concentrGLions of adult ^ntertainment businesses hrv~ gen„-~l~y t;:~d2d to i~cr~s2 tc 125sar dEgre2 th?n sim~iar arCts wit~~out such conc~nt~,-at;ons. However, in ttiE stsff's opinion there would appear to be insufficient evidence to support the contention that concentrations of sex,-oriented busin~ss~s have bean the pr?marv c?use of Lhasa patt:rr,s of chance in -25- ~. •~ assessed valuations between 1970 end iS7~. Hox2v~r. responses to the 02partmEnt's mail quEStionnzir2s from reel ~„ estate rep resentatives and appraise rs have• indicated thzt in their opinion, conc2ntrztions of adult entertainment :~ businesses im act on have; in some cases; ro ert values had a direct negztive p p p y . i~ i~ i~ it i~ i~ i~ i~ i~ i~ i~ i~ i~ i~ i~ -26- PUBLIC hic=TiNGS Two public meetings were conducted b}~ repr;s`ntatives of the City Plznnirg Commission in ord2- to rec~iv~ citizen input regarding the off=cts; if any; of concentrztions of "zduit entertainment" estzbi~shmLnts cn ne?rby properties and surrounding n~ighbo~hoods. Notice of the hezrir.gs wzs puhlisy~d in local n~wspapErs. aire~ cn rzdio; mailed to owners of commercial ?nd multiple residenti~-1 property within 500 ft. radius of the study areas and also to persons who had previously responded to the Dep3;tment's questionnaire. The first meeting was held ~n Hollywood on April 27s !977 at L2 Conte Junior High School. T"2 second meeting was conducted in Northridge on April 28. ?977 ?t Northridge Junio: High School. Both meetings were conducted by Planning Commission President Suzette Neiman and P13nning Commissioner Daniel Gzrcia; with Deputy City Attorney Chris Funk also fn att2nd~nce. Questio~neires were available at the meetings 'for the convenience of those wishing to submit their comments in writing. Attendance was ?pproximatEly 200 persons at the Hollywood mc2ting and 300 persons at the Northridge meeting. A combined total of 50 persons zddr2ssed the Commission. The following is a summary of the comments received by the Commission. Nape recordings of the hearings ere avzilahie for review under City Plan Case Number 25475; in the Planning Commission Office, Roca 55.--K; Lcs Angeles; City Hall, telephone (2}.3} 485-507'..j The most prevalent type of comment et the Hollywood meeting was an expression cf fear of walking in arezs where "2dult antertainment" and related business are concentrated. This concern was Expressed both by parents, rEluctant tc allow their children to b2 exposed to offensive signs and wares; and by women and clde;ly persons who feared walking in the arees either in the day or evening, because c~f the incidence of 'crime in ttie a.-E=. SpE[ific instances of Solicitation and other crimES l~ere recited. Same proprietors testified that they f:lt their businesses hove suffered, due to fear on the pert of their customers. Other common statements concerned: - Physical or Economic detE-ioration of the area resulting from the influx of _duit businesses. - An increase in~street crime. - OffensivE signs and displays. - A nLEd to use existing enfercemEnt toois_. sucti as "red light abatemEnt~ to control "adult entertainment" businesses. -27- - Representatives of La Cienega art gallery proprietors expressed concern over the recent 2stablishrnent 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 the 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 it 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 Z7, 1977) - It was alleged that organized crime is in the sex service ~ business and that this is a S64 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- J S~ver~. p~rscns irct.c~t~_• t!-~t t`~_v :,-c r.ct rr~:.!ccd ~~~? for ye~-s ~4; tc~ nugS~-as, ~~...e-*_?tars, ate. :.n tic: ,• `_ r"~tt% 5l1CU? ri m~.~;c C~ '~ :tC'' i:S' rf t~E R=~ L_.Z, ~'t it1 :t2r.2:`_ T tt'' L - ti hcmeo~-*n2*s' ~snc:;.t~n -r_; ~^s~nt~ ~~ v~ tz' key ^f 5~~.ng ~~cccst_c cry a g~.r: cr. i:.: yL~cc~ 3cu'::vrd~ rh~,t cr_me w~:s .~ "f::~-cst" of a~u~ t :=r.tcr.t4?zua_r:t; anc~ thzt this was mccc•- f~~r e.*_ n:~s,_ suer. -s bu.g:.a::~•. :*.uggirgs~ th~:fts; z:n th~~ ? ik2. - Some p~rscns s~erp p'.scr_~lay Gaff=~r:=e~, and st~tzc th~:t the sex Fusinesses htvF~ _ffzctuc': *~sic=_r.ts ~cenomi c~~' y nnc ~csth~t~.caJ.~ y. - A.t ~:::~?ers (fir. ~:t c:E~'.E-s; ar_t_quc bus:n~ss~=s op~r_tcrs; proprietors of ieg;.timatc bock stc•res) on Ea Cicnaga Beu?.~varz w?__*e cenc~rr_EC over the prciifer~ticn cf c.c'•ult nte=tarn~rt busiress~s; thar~ ._e v:;c_r.t stores ir. th:.s a_2a that they f=-: r~i_ g;. _ntc use `_c- 4du? t ~ntE*t~i.r3n~rt :usi.n=ss. "'hey G.2 conccrn~c: th~.t L~ Ci.er.Fgo :; i:._ nc 1 onge ~ b~ a ous tuz ~? centE - . - ?Lpr~:ser.t.°tves of t:~c £crECn acto*'s Gu~.?.P. ~n~ Acts: ~ s Equ~ ty i ncictuc~ they h~ ~ c~emcnstratec~ gig? i.rst an ~c?u'._t bec:kstcrc Inc appz~?.ECG t; the ent2rtainr~ent indust.y to help Zvi th tr'_s p-c5i.er~. - A *-~presentztivr of try Hol' yr?c~o2 Ch~mbF.: of Com~~rc:-^ ..ncic~tcc th~~r.~• h;c boon ~0 c- 70 sL'vcys c•f the .r :,, Nut ?.ack of City support. fie s-±: ' the tv shou' ~ rr~'~ fy its C~ acne _~gu~~t-cr.s end :?°m*'n~te m~,c~i~: ~.*cr~:s. - A Stu.':o City rEe'_.te+* incieztee' hE hue'. sort ??.x000 rvp?.ices :.f the Planning i~cr`rtrent`s cuestjor_n~.i.res (unc~_ his l~::ttE,hEac) tc r~sid~nts of Stu~ic City. Es in2cet2c: t'~ rL t~•=-_ ~ ~r'.e' *_ nc~t~?.s n~~; Univ~*s~l Stun: as anZ th~:t mcr~ we.c c~mirg. A farmer non-acu)_t materia)_ (past tenant cf ).coition ird?cited that when h's doubled; that ~.th2c tenants out!. that ~verybrcy was gc ~x~~~ g-~ing ~n : r. th?t tl.cc!:. st~ti~~r. KFUB :;ac mcv~~ from }~cx~l;StCrC owner i.n Ficl_ywocc~ pi ckEtac ~r. Fpci?. 2, . '•_^77) bui i ding Baas 5c? d. r_is rLnt g:•t tt;re2 zay rrt?.cos (tc movo ttirg ::ut--r~: c? ~imat L,sc~ctizing ~C .'_'~.$~' inc'.ic~t~c tt?c!t ~:~caC t~'.= ~_t~= . - I t wus i nc~ i. cat~d th•~ t K?:•?S move: ~ to c?us~ wc-m~n ,:mp: eyE>= s we_e of*.d. Zt Vas a's~_ st?t~c that a L~staur.}nt in that bu~_?ding went out rf iusiaess. _~c,_ - A l;,c'? minister indic ;t~=c c~ncr-n for the elderly, ar~d *_`~~.t c:~i ldren f. cm 4 tc 7 y~~~~-s o?d C?nn;,t ride their bikas +~,thcut h2ing acccstLd; `~~ ,1sJ indicted there had been 23 ,rrests for pr;stitution nor ., iJCai elementary school, h2 furt`~er stated ttiat resid,:nts hzva to go tc ct;:or a~•~eas t:, shop. i~ A repr2sent?tive ~:f ? local synagogue stated th?t the elder iy l~erF ?fr~id to wall; to r~ i igious services and that car puling yad bean established. - A rep;es2ntative of the Hollywood Businessmen's Association advised that 50 peYcent of the sex crimes reported (in the City) were in the Hollywood ~re3; that since the Police h~vE closed some sex est~.blishmEnts crimp has dropped; that adult entertainment busir.ess~s hGve contributed to ? d,:teri~r~ting condition in Hollywood; that there is a 100 parcant turnover in school attendance; that the business liccns~ ordinznce stiould b2 modified to require an onvironm2r.tal impact report and proper sign controls for n;:w estab?ishments and that notice should be given to persons within ona••half mile; he also reiterated that traditional businesses were ie~.ving tho area. - It was indic?ted that property values hod gone down; Vine and Selma was valued at Si2.a0 per sq. ft. years agog but recently it was north only 58.50 per sq. ft. iVorthridg2 fleeting (April 28; 1977) - A r2pr~stnt3tivE of the North Hollywood Chamber of Commerce indicated that adult entertainment businesses were an economic and socil blight; that the Police Commission was no help; ty?t they had proposed the M3 Zone for these uses; that we need more police and stiould make greatar use of rod light abatement; that the Alcoholic Beverage Control Department should do morE. - Claims were m?de that the Pussycat Theater in North Hollywood was a dangerous environment to women 4nd children; that in the recent past 2 teenage girls had been ?ccosted and a woman had been attacked and had to jump from a Cdr. ' - A be4uty shop owner near a Pussycat Theater indicated she no longer stayed open in the evening because her custemars mere afra id. ' - Adult ent ertainment businossos stiould be required to rent space in "Class A" buildings. ~ - Various p ersons objected to nowsr,aCks, obscene material; problems of congEStion and ingress and egress. -30- - Th. Millar vs. C~lif~~rni? curt case w_s ~isCuSSc~: it w~5 CJnt2nCe;1 that this C?52 25tab1ishe~ that "a CCmmunity Can 52t i t5 own st3n;;arG's", y - Questions were F~scd as to whether economic any fin?nCia1 im;c~ct should be facts needed to ~evelcp .an cr~;inance tc c~ntr_~1 adult. entertainment. - Claims were made that adult entertainment business brie; crimps and violence to the area. - ~+ speaker Stated that both the Boston and the Detrc;it ;;rdinances are unacceptable. "You cannot c;,ntrol Forn,~graphy by zoning", anc opposition to the zoning aYproach to obscenity was expressed. - "California is the pornographic capital of the world." - Pe~pl~ are offended by pornographic materiel in department stores, drug stores, suaermarkets, etc. The recent Les jZngeles County newsrack ordinance was discusses'. - 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 School were concerned about their members and children being exposed to pornographic advertising displayed at the Lankershim Theater and Pussycat Theater. They .are afraic! to let their children out en the streets. - It was stated am red light businesses." Conclusion that "we should use civil, public nuisance abatement to control adult entertainment In summary, the overwhelming majority of speakers felt thc;t the concentration of ".adult entertainment" businesses in their noishborhocd was detrimental, eithzr physically by creatin5 blight cr economically by decreasing patronage of traditional businesses; or socially by attracting crime. hs a r_asul~t of increased crime, nearby residents have become fearful any have been forced to constrain their customary living habits in the community. Although the testimony obtainer at the public hearings would from a subjective Noint 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 p052C; by the Pussycat Theater representative regarding a single classification for all "adult entertainment" uses. There would zppear t;, 5e some basis tc support the contenti,;n that certain types cf such uses are more "objectionable" than others, end that negative effects of ~ particular type of business might be minimize, de;,encins cn how the business is operated and advertised. -31- C. SURVEY QUESTIONNAIRE CONDUCTED BY t~EPARihiENT OF CITY P! AF?iVING . ... D25cript i~~n o` SUrvey In order to dot2rmin:: 2ddition:l factua] dot= relating tc j~, the subject =nd to seek the comments and opinions of property owners; businessmen., re~lt~rs; r2~1 estate herds; real estate appraisers, representatives of h~r.[cs: Chzmb2rs cf Commorce. and ot~~ers; the Department conducted a mail survey. Two questionnaires r~ere developed. One wa.s designed primarily for businessmen and residential property owners and is hereinafter referred to zs the General Questionnaire. The second was designed for r2alto-s; real estate appeasers and lenders and is hereinafter r~ferr~d to as the Appraiser Questionnaire. A c:,py of the two questionnaires is contained in the Appendix. The completed questionnaires; together with other ?otters rela*_ive to this subject; are on file ;n Room 51.0; dos Angeles City Hai?. The General Questionnaire was ma.?ed to all property owners (or' other than property '.. sing~a•-fam'.ly use) within a 500••foet radius of each e. the five study arias. The questionnaire w:.s also distributed to vaeiot!s community groups ( including ?ocal anc: a~-ez C~~ambers of Commerce) and ~t th~ public meet-ng in Hollywood and in Northridge. Ttie 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 Re4ltors !vhos2 office is located in the vicinity of the study areas. Each of the t!•ro questicnr.aires contained sp=ces for respondent to check 4nswers to a series of questions r214ting to the overall efr'ect (if anyl of aCUit entertainment estate?ishments on nearby •properties. It s~iould b2 emphasized that the Department intentionall; ~, structured the "objective response'' portion of ttie questionnaires so as to reduce "bias" and to solicit the maximum range of responses tc any specific question. Fe- example, a respondent could check "pcs?tiv2"; "Hoge-tive" or "no effect" in response to the question... "What overall effect de you feel that adult entertt.inment est~hlish-- ments have on r neighborhood?" In addition to the direct response portion of the questionnaire, information cf a mere subjective nature was also solicited. For example, after etch question: space bras provided for a respondent to list any comments or examp':es ~•rh;ch might pertain to z specific question. Tt~2 ~. h?ginning of e,ch questionnaire also invited the respondent to wr'.te comments ?n t.~e space provided er on a sapzrut2 sheet. -32- 52t:+~•2_n F2hr~'_ 1 -0 end Apr . .s0 , __77. ? t_t ~ ! cf ?ap. .x ~ - iil~:te~'/ 4:000 qu_.st'^nn~.ires WE'c m`1 ~cd i~~l::'. Env?iopcs arovided; ,, ot~:~~-~~is~ C~st"rihut2d bUSinessmEi , repr~ser~tZ:"i ves t}.2 Owner s of others. Of thi :nd ~eturned to rite c` rctu-nl ,'EZi oct~t~ =Apr-'•~scrs ;.~~ 5~nks .,~~ sav~nss zr.d icon mc!?tipi~-unit :'esiGenti?? s~nrrm~er, G.4 questi,~r,~ires the O~p~artm~nt (:, ~v~t~? i 1 _tJ "! . ~c.tC"5 1*:st itUtl;,ns ; p-cperty, end wee ccmpl~ted ';7.~ perter.t In addition: the Depzr~msr:t received _97 non-so?icited. complete d..questionnair25 f-„m prope:-t~~ cwrers in Stud i.r Ci*_y. These qu~stionncires we:'° distrif+uted in a p, ivet2 mailing by "a p~iv~te individuzl. The subject mziiing includes a rep i,ic? of t~'c O~pa-tm~nt's appr wiser questi~nn_ir~: together~wit~ w.-itten mite~izl alleging City intent tc c: eat2 an edu it. entert~inme^t z~on~e in Studio Cit; (copy Included as Appendix D-2). According to the. subject individual's testimony zt the pu5iic~hearing on April 27, :.S77. "_ 000 rep.ic~ qu~sticnn=i; es w.re mailed. Due to the prejudicial n~tu~e c` t ~ m~i iir.g; t~es2 qu2st~ionna~~ 2s are net included in the study. H~w~VEr, tie stiff did tabulrte the subject resp"crrs~s and the tabul,tien and summary zrc ins iuded in"" Appendix 0••3. A? l persons responding to the zbove mai;ir,g w~:-e sent a m2m~ from the "~ Depa-tment. correcting the misinfcrmatien !copy inciudLd in Appendix D-z ). Results of Survey Qu~stior.r.aires A tabui~tior. of th~ responses to the specific qu~stic~s soiicitzd in the cbj2ctiv~ portion in each of the tw.c types cf qu~stionnari2s :s present~c below. A summary of the comments fo1l.r~s: GENERAL QUESTIONNAIRE - RESPONSES ~- Tcta i ro. of responses = 58' _ ? 6x rEt.urn Iota? no. of quests cnnai res 3~0 Q~:estion _. W`~t over~li effect do you feel t`'~~L zdult entertainment est3blishm2nts ~~avo had on L neighborhood: Positive N2gztivL No effect Er'f~ct on t`12 rosiness condition (sa?~s & p-ofits) in the area: 43(7.4x) 492(84.7x) 35(5.2 ) Effect en ticmES (vuiuE & appe=r~nc~) in the zroa immociiately ~dj?c~nt to adult ent2rtsinmant businesses: 37(5.9) 472(8?..2x1 25~4.Sx) -3~- i~ ~" i~ i~ i~ i~ i~ i~ i~ i~ ii Effect cn h;,mes (v?lu~ b 3pre3ranc2 ) i n the ar2~ loc~t4d 500 feet ;:r m:,rc from adult entertainrnont businesses? 2. Oo you believe the establishment of ~3CUlt entertainment facili- ties in the vicinity of your business has hoc: any of the following effects? (Please check all these effects which you feel have occurred.) c. sect 35(6.Q:) 445(76.8;) 19(3.3X) ZG (4.5%) n~ effect 206 (35.5%) lct:~~r rents 275 (47.3%)v~cant businesses 288 (49.6%) tenants moving out 224 (38.6%) complaints from customers 3 { - ) less crime 370 (63.7X) more crime 1 ( - ) improved neighborhood appearance 305 ( 52.5X ) ,;eCr~ ~SC•: pr_;:,Lrty v~lucs property values 16 (2.8:) Tower taxes 98 (16.9p) higher taxes 489 (84.2%) c:ecre~s~c business activit}~ 8 (1.4%) increase business 416 (71.6%)deterioratet~ 312 (63.7X) more neighborhood litter appearance 8 (1.4X) other (please specify) 3. (Net applicable for t~lTy.) 4. Have you seriously consic+ered moving your business elsewhere .~ because of nearby concantraticns cf adult entertainment businesses? 167 (28.7%) Yes 165 (28.4%) Nc 5. Would you consider expanding in your current location? 83 (14.3X) Yes 177 (30.5X) N~ i~ i~ -34- 6. 'rJhat types of adu 1 t entertainment establishments are there in your area (Please check appropriate boxes.) 410 (70.6A} adult bookstores 310 (53.4;) massage parlors 190 (32.7x) peep shows -~ 179 (30.8b} nude or topless danCir,g 389 (67.0X) adult theatres ~~+ _.~ 240 (41.3:) adult motels 237 (40.8X) bars with X-rated entertainment 3 other Sex shops Now far from your business is the nearest adult entertainment establishment? (Not tabulated due to limited response.) - 35 - E 1 1 1 1 1 1 1 1 1 1 1 1 1 ~espur.ses to the foregoing questions r~v2?1 th_t adult entert?inment 5u s ~ r.es szs er= p=roz ; v2d by tha ma.jori ty of respor.dcnts es ::x2rt i..g nco?t i vE *mp~Ct on S!~r"ounr, ~..g bus i ncsscs end r25 i der:t i . i ropertlcs• Wh~thc~ or not such negative ~mp~cts hev perceived to have occurred, c°nnot empirically, on the bzsis of *_his survay attitudes of the r.spond~nts toward Such must b~ drawn that t`-e overall effect on considered to be r.eg~tiv. E ?ctuzlly occ~~rred; or only ~= reediiy d~termir.~d; HowEver, in terms of the businesses, the ConClusiOn surrounding properties is Among the ?dverse ~ff2cts cf adult entertzinmant establishm;.nts cited ry businessmen zra: . - Difficulty in renting cffic2 sp~.ce - Difficulty in keeping desir?ble tenants - Difficulty in recruiting employees - Limits hours of operation (evening hours) - Deters pztronage from !omen znd families; general r=duced pztron~!ge ' Of thosa businessmen indiczting that they hive not seriously onsider2d moving because of reerby concentrations of ~du1t ~tertainment business, the most frequent response wzs that they hzd ueen in the er_a a gret.t many y~~rs, znd to establish 21sEwhere r~ould be too risky and/or thzt their investment was toe grc?t to move. A few respondents i nd i c~t::d th2.t i t i s t; a adul t entertainment businesses that should move, not they. The few businessmen commenting that they would not consider expending in their current location indicated that their business did not warrant expansion.. SEV2ra1 businessmen indicated that their businesses zre relatively unaffected by nearly adult entertainment estzblishm~nts. Among the businesses cited are a commercial art studio; a building trades cont~rzctor; a mail order business; a telephone answering service znd z wholesaler. ~ Among the few positive effects cited by businessmen is the increase in bUsin~s5 for certr.in nen-adu~t entert:!inmer:t businesses such ~s tourist-serving businesses (e.g. car rental zg~ncies). "The bid effect it might have is car,c2ll~d out by the business it does ~ttr~ct; x-rued theaters 2ttr~ct tourists." Many respondents commented on the crimes associated with adult Er.tertzinment establishments: prostitution, dope, theft, -obbery; `c. A high percentage of respondents report they do not feel szf2 such areas. ~~ A high percent~ga of r~spond~nts comm2rt~d on the effects of adult 2ntErt2.?nmEnt Envi-onm2nt or. the of children. A high percentzge of r2spond~nts comm~nt2d on edult entertainment est~57ishments: g4rish, blighted, tasteless, etc. Also, merry commented incidence of litter and graffiti. ~r concern for the morzls =nd s~.fety ,~ the ~~st~etics of ' _512=zy; sh?bby; .= on the incr2~sed _,,. ~ APPRAISER QUESTIv^NNAIRE - RESPONSES - • Tot.1 no. Ot r25pons~s = 8' _ Tetz? no. of quESt:onn}fires X00 Ou25ti0n ? . tJhat .fffect _d.oes the concentration of adult Ent2rteinment estt~blishment~s hzve on the mirk?t vzlu~ of business property (land, structu-ES, fixtures, etc.) located in the vicinity of sucy establishments? Z. What effect dogs the concentration of zdult 2n~rtainment establishments' have on the rental value of business property located in the vicinity of such estzblishmer.ts? 20% return Response 1nCT'e~s2 in Va lU2 1 ( - ) decrease in value 71 {87.7X) no effect 5 (6.2X) incre3sE in value i ( - ) decrease in value 55 (67.SX) no effect: ~ (4.9X) 3. Whzt effect does the concentration of increasz in rentability/ ~du?t ent•crteinmFnt Estzbiishm=nts saleab ility 3 (3.7X) heve On the rentability/saleebi]ity of business property located in the decrease in rentabili ty/ vicinity (?~ngth of time required to 5zleab ility 48 (59.3X) rent or sell property; rate of lessee/ buyer turnover- conditions of sale or ~ no~effect ~ 3~ (s.7X) lease, etc.)? • 4. Wtiat effect does the concentratien cf increased int~ome 2 (2.5X) zduit entertainment establishments hzve on the znnual income of businesses decreased income 59 (72.8X) looted in the vicinity of such establishments? no effect 7 (8.6X) 5. Hevo any business owners or proprietors yes 23 (28.4X) considered relocating or not expanding • t`eir businesses because of the nearby no 4 (4.SX~ concentration of adult enterta•i~ment establishments? not known 28 (34.fiX~ 6. In recent years, has• the commercial yes 45 (55.60• vitality (sales, profits, etc.) of any erez in the city of Los Angeles been no• 29 (35.8X] affected in any way by the nearby concentrztion of adult entertainment not known - - ~star?ishments? •-3 8- 7. What effect does the concentration of adult entertainment establishments ' nave 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 (3.8X) 48 (90.6X) 3 (5.7x) 53 500 - 1000 feet 2 (3.6%) 51 (9I.1X) 3 (5.4%) 56 More than 1000 feet 1 (3X) 29 (87.9X) 3 (9.1X) 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 7ota1 Less than 500 feet 2 (3.4X) 51 (87.9X) 5 (8.6X) 58 500 - 1000 feet 1 (2.6X) 33 (86.8X) 4 (10.5X) 38 More than 1000 feet 1 (2.8X) 27 (75X) 8 (22.2X) 36 9. What effect does the concentration of adult entertainment establishments nave on the rentabili.t /saleabilit of residential property ocate within the following distances from such establish- ments? Increase Decrease No effect 7ata1 Less than 500 feet 1 (2.5X) 37 (92.5X) 2 (5X) 40 500 - 1000 feet I (2.6X) 35 (89.7X) 3 (7.7X) 39 More than 1000 feet 1 (Z.8X) 28 (77.8X) 7 (19.1x) 36 10. In regard to the questions setforth above, p lease des cribe the effects which you believe the concen tration of. adult entertainment business has on each of the fol lowing: Property values of s_urroundin ecrease No response No effect Increase Commercial property 46 (56.8X) 32 (39.5X) 1 2 (2.5X) Residential property 42 (51.9X) 38 (46.9x) - 1 General 16 (19.8X) 65 (80.2X) - - -39- Renttl values of surrounding: 02creese No response N o effect Incre=sz ~ 6 Commercia] property 3S (48.?.X) 42 (5?..95) - Residentiz': property 37 (4s.7X) 4~4 (54.3X} _ _ ~ Genera] 12 (14.8X) 69 (85.2X) - - Vacancies Number 1 56 (SS.1X) 1 23 (28.45} ~ Length 1 72 (88.SX) 2 (2.5X) 6 (7.4X) Rate of Lenant turnover - 49 (60.5X) 1 31 (38.3X) ~ Annual business income 24{25.6X) 53 (65.4X) 2 (2.5X) 2 {2.55) Complaints from customers and residents due to ~, concentration Yes 24(29.65) 57 (70.45) Neighborhood zppeerance Z4(29.5X) 3 (3.7X) Crime 1 1 - 48 (5S.3X) ~. Litter - 1 I 44 (54.35) ~~ Other (please sRecify) ~ _.a Sever?? respondents comm=nted th?t the ?averse effects ere releted to the degree of conctntrztion zr,d that one free-stznding 5usiness mzy h?v2 no effect; zlso, that tho effect is rel?ted to t~-e typE of ;exult entert~inmEnt business (unspecified). A few respcndents indiczted that the p~op2rty vzlue and dollar ,, business vo?ume for any given property would increzse for businesses ~~ compatible with adult entertainment businesses, e.g. other adult entertainment businesses, bars, EtC. ' A very high perce„tage of appraisers and realtors commented on the adverse effects of the subject businesses on neig~borheod zppearance, litter and graffiti. -41- GENERAL QUESTIONNAIRE - REALTOR RESPONSES - Teta? no. of responses = 32 NOTE: Due to distribution, cert~~n r~?ltors received the Generr.? Questionnzire rather tyar. t.hc Appraiser Questionn?ire. For znzlysis purposes, the subject respenses were tzbulzted seprrzt2ly and analyzed togEthcr with the responses to the Appraiser Questionr.air2. Ouestian '. What overall effect do you feel Chet adult entertainment establishments have had .on a neighborhood: Positive Negetive No effect Effect on the business condition - 31 (97X) 1 ' (srles & profits) in the area: ' Effect on homes (value & in the area immediately appearancL) - 31 adjacent to (S7X) 1 adult entertainment busi nesses: 1 Effect on homes. (value & appearance) - 2S (91X} 2 in the area lecat2d 500 fEet or mere from adult 2nterttinment businesses: 2. Dc you bEliev~ the 1 (31.3X} no affect 29 (9IX) decreased establishment of adult property ' entertt.inmer.t facilities in the vicinity of your 23 (71.9X) lower rents values business izs had any 25 (70X) vacant 0 increased of ttie businesses property values ' following effects? (Please check all 25 (70z) tenants 3 (9.4X) lower taxes those effects which moving out ~ you fee? have occurred.) ~25 (70X) campiaints 7 (21.9X)higher taxes from customers 0 less crime 23 (91X) decreased business ?ctivity 25 (8i.3y)mcrE crime 0 increased business -42- 30 (94X) detEriorated 27 (84X) more litt~-- neighborhood appearance - Other (please spcc~ify) 3. (Not applicable for tally.) ~ ,~ 4. Have you seriously considered -~ moving your business elsewhere because of nearby concentrations '~ of adult entertainment businesses? 10 (31.3X) Yes (46.9%) No ,~ 5. Would you consider expanding in your current location? 10 (31.3X) Yes 12 (37.5X) No 6. What types of adult 21 (84.4X) adult 13 (40.6X) nude or entertainment estab- bookstores topless dancinc lishments are there in your area? 17 (53.1X) massage 24 (75X) adult ~, (Please check parlors theatres appropriate boxes.) 15 (46.9X) peep "shows 15 (46.9X) adult motels 12 (37.5X) bars with X-rated entertainment '~ How far from your business is the nearest adult entertainment establishment? (Not tabulated due to limited response.) - 4~ - ' C. J.S. CENSUS ~~•:C .~CLH?cU J^-.; ' ?. Cluster Ar~.~y5i "~ d 5 CoTmu^~~~• ,-i„s s JsE y ~.. ~: ~ ~; A~ ~ i s au:'r• u Vari~:us Parts cf t`~e Cirt~" -, '~ - The last U.S. OecE,n:~l ':ens:rs ,v~ ? 970 With t~~ rr~ "~~; +~^~; business it ~•~~~ ~~ 5?2:~~ ?ro; "!): i..t~ ?nfcrmzr .c:n a descr, ;;,;.,;,r_0 f Eve?lid by census data. Suc` t~ ^ ~:.SCrit~ ~f ~~u ~L ~ E,^.t2rt=inm~nt L'.' :l:.1L'r~ c'~ h.'.CKCrCUnd .: _C.. rL~i. ._.~ c :,~ ~~!~ . insight as to the c;nd::rly'~c f•rotors contr;b~~tinq tc t~_ concentration of sex-oriented business in ':~,~ arks !~r.der study. Ar. Excellent ~~vaiTablE s.ur~ ~ p:-c~:id~r~^ ~_ch a ~~:--cri t~ ~' -~ p c„ i s e ? S74 rEPor = Pr=P~"=d =_ ~t he C i;:y' s CCnmur, i ty Analys i s Bure?u (CAB1 ccr,c=rninc, t`~ "Slat: c.' ~..2 pity°.* In t?"15 document, the CAB hzs u.?~i?~r a st~t~;tical techr.'quE knCw.n as "cluster ar._lys;s': =, 'de:,ti*y spzcific n_r_Zs within the C=tv r;hich ~°ve common ch<,racter'stics. rEVOaled s,y census d,.:a. :, c~r~c+uctir.s ':his study, the CAB made use cf 6C cEns.::, d-.ca ~t_~m; (cr varizbles~ :~~hic;~ wc-~ s2l~cted from the enti;E spsctrurr of socio-economic znd phusically descriptive a~tz items ev~ilZblc fir aTl census tr?cts in the City. The U.S. Census Bu;eau rep^r~s data on numerous geographical levels, the "census tract" being the smallest geographical zroa for which data is maintained and reported en a r2gu'rr 5asis. Thar2 c~r2 75G such census tract ?re.s in the City, each containing a p.pu1?tion of slightly fEwor than ;ODO po:-sens, en the zv2rage. ThE five study area. nodes anti four control areas undEr study herein ?re contained r~it~in portions cf 25 census tracts. The particular variables' which most accurately descrihe e. particular census tract F~Er. used b~ the CCmmunity An~l~sis ~ Bur2zu in such a R gave the mast Simi { procedure, thin throughout the Ci•t mere census tracts Cluster being mOrE than to any othcr~ 1 * The State of the Cites ' of Los AngEles Ccmmun anner as to cnmhin2 those areas which lar ch?ractcristics. As a result of this y cluster groups were established y, eac,'~ suc4 cluster consisting cf onE er etch census tract within a par-titular Simi?~r to other pasts of thet cluster geographical section of the City. luster Ar3lysi a'.ysis BUrEdu, c~f Lc-s An Ll~s - City ,~ une ~~ a ~!~_ Description of F!cllyw.clj Ar;:2 T`~2 thrEE st~~~y ?r;::.s in "ol?ywCOd cent=in~ng cZncentr~r'Cn5 ^f :Cult 2nt2rt'~r..~er.t Jusi~~sscs ?r. included within portions Cf '_1 c2n5us tracts. Their thrc~ ~ssociet2c "centre: z-ezs" ?r2 pzrtial?y centeined within nine versus tr?cts. T`2s~ 20 tr~.cts ere z.il included within •a- lzrger 2rea identified in the CAB's rEpcrt Cs "Cluster IS", er.titl;:d "TAE Apr.:-tm2~~r Dwellers"; consisting cf 34 trects. A.desCript~nn Cf this area, as qucteC from the previously cited CAB report, is set forth below. iho fact thzt this description is besed cn datz which is now seven ye2rs old may not Ce dis?dv~nt~g2~us, for the purposes ^f this study, inasmuch a5 adult entert-ai-rrm2nt businesses begin tc fl^urish in the ~.:~~-70 period. Cluster 15 is a 'ewer income, predominately-~~ old apartment area loceted west rf the Civic Center... "The cluster represents a total pcpu?ztion of 174,000, 46X male and 54X female. Th,;: rr~dian age is 40. The ?rea is most?y khite, but does have e.n ?bov2 average ethnic mix--?~X Spznish-Am~riczn, 3X Jepan~se, 2% Chinese, 3X Block. It is c?sister of workers-~nc+ senior citizens. One in five residents is cv~r 55. Female participation in the lebcr force is the highest of the 30 c?ust~rs. The popul?tion under 18 is sme?1. Many of the families ?rte heeded by women..:" " ..Close tC seven out of ten labor active resi-d~n~ts ire white cellar employed. Most-completed high sch;ol - and 15X completed college. At 38;700, median family income is below the average for the City. This -lower income dies not translate into ~n abnermelly high poverty distribution.• One in ten families and a smaller proportion ~f unrelzted individuals are welfare recipients..." u ..Residents ~f the cluster~ar2'central~y locatEd tc both the Downtown and its commercial-fin~ncial st-ip extension, Wilshire Boulevard. M?ny public transit routes service the area. Close to~ 40X _of tho households have n~ autamebi?e. T.he presence of two er more cars is n^t cemmcn. Of .the older `partment complexes m?ny have nc~ garage fzci':iti?s..." -~5- ~` ~~ "...Old ~p?rtments c;mprisE 42A ~f the mui~ip~z units. Or,C ~f the tic~v~ESt C~'^CCntra*_iC;,S ^CCers _'st ^f W~stErn ,~VEnL'2 ?rd nrrt.ti .f C'.ympic B.u12v~rd. TSes~ _r~ h gh dor.•s~t;~, c i;.sa~y p-cked, r;:ct~.ns:,' ~: shaped, stucco units 4-hich i inE tf-e <trEEts ?ppr^?c`!ing ui ;shire Bru'•evard. S-ut~ :..~ Olvr,oic BGUI~v~rd, the p?ttern ~em?ins ~n2 rf nultipi~ f~.mily units, bUt th~sc ?~ 2 g;:nEraily i. tE~ s~~rSed with ~iCmes or are the 2nd product ~f converted two and three st^ry frame hous?s. N~l~ywc~d ~s simile, cut is hes several single fame?y res~dentia? gees end ~pzrtm~nt encr~echment r.ppears to hive mire ^t er impact..." "...Nest of the cluster's '02,700 dwellings art rer.tar occupied, including ~! mzjority Cf the homes. Median rent zver~g~s $108, but ?7X ~f the multiple dwellings tre avai~eble fcr less than b8C..." " ..Single family residences art a 5mz11 prcp~~ticn of the tetzT housing stack and Tike tti;: area's apartments, many pr~dwtc Wcrld War II. F~~i cf the essenti?lly single fami?y residential neig;~b^-4~^~,cs hive the kind of zoning prt~tecti~n which r~quir~s t"at new construction be single units. ReplzcemEnt h~~usir.g hes tended t~ be large apartments. H~m~s 2v~reged 52,000 in median value, which 's mere factor of t~~ 1?nd than the improvements. Much of t~e land west cf Western Avenue adjeir.s the m^re expensive Hanc^ck Perk art?..." " Cluster ?5 has ^n2 rf the hig~±est pcpul.ti^n densities in the City, ?S,080 p2rso.ns pEr squGr2 mile; not exc~pticnal fcr en aprtm~nt ?roe. It else his the highest cluster average rf elementary sch;~l transiency rues--nSX fcr incoming students and 34; for students leaving. This mobility of the resicents did net seem t^ affect the median sixt` grade r~~ding scorE. It w?s ab^ve the City average. The clusi:2r has 8 park sites withir. its boundary end is also served Cy the more regic•nal recreation rr22s of EcSo Park, MacArt`tur Park and Griffith Pzrk ail cf which zre within access..." "...The incidence of burglary per 100 improved p'rcels i s h i gh, a p?rti al ref l;:cti cn cf the l ergo number of dwelling units per lend p~rcel. One of the mCrC disturbing zspects of t.ye cluster is the suicide rate. Outside of D~~wntcwn, :,nly th~~e of the clusters had hig;;Er rGt~s..." -~:6- 2. Use rf 'S70 Census 0?te t~ Describe Studio City 2.nd N^rth Hel?vwC~d Ares There are fCUr census tracts which comprise ttie Studio City study ;roe; t~~~ such tracts in North Hollywood; and thrEe Census tracts representing the "ccntre7 zre?" for the San F~rn2nd^ Vzll2y. (One of the "control aria" tracts also forms part ^f the Studic City study arew.) The CAB's cluster ~n?lysis reveals that these eight different census tracts are ail quite dissimilar, inzsmuch as the seven tracts are contained within six different "clusters". A detailed description of each of these six clusters would not be practical f^r purposes of this study. However, a summary ~f certain key verizbies attr?butable t~ the two study areas in Studio City end North Hellywo~d, and the one corresponding control area might be instructive, and is therefore pres2nt~d in Table V following. For purposes of comparison, the data is also shown fir the city as a whole. -47- TAB! c V {~, nt'd) C^mparis^n of 2G Variables from x.510 Census Describing Studio City and North Hcl~uwecd Nodes ar.d Ccrresponcing Control Ara? ,~RIABLES Crime Rotes Assaults per 100 p~puiation Robberies per 100 population Burg?ary per 100 improved parcels Tct21 Arrests per 100 population Narcotic Arrests per 100 population aged 14-44 AREAS-------------AN~••---- •-•- --- '~.."i~ Studio City North Hcily~~a~~d Ccntr~? (Tuiunga & (Lznk2-shim b (~zn!:ersh;m .nt~.-: Venture) Yinelznd) & ~tinipol,:)_ ~.___~_ . X405 .374 . ti7$ . ~" , .172 .257 . i7~~ -. 13.86 ?O.S4 ~.3.~ _ . 4.23 4.26 4..0 ~._; 2.66 1.39 ? . cC z .::= On the Sr.sis cf the foregoing 1S70 Census data, i= .s possible to develop a general descripticn. cf the two st~~y are? modes c ontaining adult entertainment businesses i n -~f~~ Valley. As indicat ed above, such a d;:script ion r.~u;*_ necessarily be based ~n data applying tc entire ca_r;u:._ tracts, even through the study arezs mzy encompass on;y portions of tracts. Residents cf the Studio City study area node in 1570 wero ' predominantly an upper middle income group, with a relatively high percentage of college graduates. H?~h ' school dropouts w Eight out of ten ere considerably employed persons below the citywide norr,~. were in "white collar" jobs. The percen tage of families receiving welfare or in poverty status was considerabl y below the citywide ' percentage. The unemployment rate w?s slight]y higher than that of the entir e city. The median value of owner occupied homes in the Studio City area was more thin 512,400 higher than the City median. About one-half of the housing units were one-unit structures. Apartment rental rates were also higher than the city as a whole. The percentage of one-unit., owner occupied housing units built bef~rz 1940 (24.1 percent) approached the citywide median of 28.5 percent. With regard to crime statistics (as of 1c70), robberies per X00 population in the Studio City area were below the rote for the city as a whsle (.172 and .454, respectively), although the number of burglaries per 100 improved parcels (13.86) was close to the citywide rate of 14.95. Totzl arrests per 100 population (4.23) were about one-hzlf cf the 8.25 rata which prevailed citywide. -~l9- ThE N~-th HC~I~~v!^od stuc~ 2rC c_n*.rc.sts rZ.thE'' S.`lz~ ply with the 'b^v2 d~scrib~d *_~Ci:, City ?r2~. In North Hollywo^,d, median fami?y income t!~s 5°.47'_ in i~70--]~wEr t`~an t`~E cityw~d~ medi?n cf ;?O,S35-••and c~nsidarzb~y lower thin t5e $?5,672 m~di~n inC~m2 ~f rosidcnts in tra Studio City study ~re~. Sixty-~n~ p~rc~nt .f ~mplcy~d p~rscns w;:re in "whit cellar" j^bs in N~_rth Hc~?lyv!^'?d, compared witti 80 percent in Studio City ?nd 57 percent in the ~ntir2 city. The percentage of fami?i;:s in z poverty stztus in North Hollywood v!zs c~•nsider~bly ~~igh~r than in Studio City (10.0 percent end 3.7 percent, respectively). Thy percent of families in North Hollywrod receiving w.elfzre w?s higher thin in Studio City, but lower tan in the en*_ire city. Unemp?oymPnt ratES, r^wevEr; werE lower in Nortti Hollywed thin in Studir_ City zr.d the entire C~t~. Housing values w`re c^nsiderrbl~ ?~w.~r in North Hciiywod thin in Studio City, znd slightly lower than av2rtge vt.lues thr^ughc~ut the ~ntirE city. Meci?n mcntly rents -Ner~ lower in North Hcl'ywecd than in Studio City but higher t`an in a17 ^` Los Angeles. Of -,1' cv~~!er-occupied one-unit structures, 52.4 percent Were built prier tc ?.5~0 in the North Hollyw;ce+ study ?tea, c_mp?rod v!~th cn':y 28.5 percent in the entire city. Sing?e-fer n y h~•mes in North Heiiywccd are c+lder than in Studio City. As revealed in Table V: 170 cri variables tabulated were lower it the city r.s a who .e. Except pepula*.icn" and "total arrests other rites in North Hc'llyw~cd Studio City study ~r~?. m25 ratES for thf seven North Hr,llywo~ed that, in for "robberies per l00 per 100 pcp~l?tion" ail w~r~ l~w.er than in the Tzbulrtion -~f U.S. Census Trends fr^m 1SE0 to 1870 Time series (trend) data c~n often be cf value in identifying underlying socic-economic or physical characteristics which r?!y h=ve c~ntribut2d tc; the ch~nga i~ an Zr2Z. Outing the course cf this study, the stiff prepared a tabulation of the 1860-70 chzng~ in selected socio-economic variables ?s reported in the U.S. Census, covering the five study areas, tie four "control" areas, and the City as z whole. This was done in order tC c+etermine if changes in the study zrea nodes were significantly different that. the "control areas", or from citywide perms. A tt.bu]aticn of this c+atz is contained in Appendix E. A review ~f this datz reve~.led ttiat the 1SSC-70 trends in the variables selected (r,:,lzting t~ population, ec~n~mics and housing) were nit significantly different fir the study areas than for the "c^ntr~l ~rezs". In g2n~ral, numerical cr perc2ntzge changes in the dzta wEre ,als: similar t:, citywide trends and nc firm c^nclusi:r,s ;f particular rE'.ever.ce tc the study cold be dive?aped. -50- 7 ® V. ^ POLICE DEPARTMENT STUDY OF HOLLYWOOD ~: ~' This section of the report considers the number tnd percentages cf adult entertainment businesses in the City, changes ir, these businesses since 1975, and more specifically, crime r ues in the Hr.llywoed are r. as compared to crime rates, citywide. r The fallowing information wzs compiled by the Los Angales Poiice Department and spews the incidence cf certain adult entertainment establishments as of two different time periods-- November cf 175 and December 31, 1976. The statistics show a decrease in massagz pzrlors, bookstores, arcr.des and theaters znd a slight rise in adult motels. This was during the same period of time that them was stepped-up surveillance and deployment of :fficers in erezs where c~nc2ntrations of adult entertainment establishments existed. (The Hollywe^d community is within the West Bureau.) This information and that crime in the Hollywood correlation between crime faci 1 ities. TYPE OF ACTIVITY Adult Motels Massage Pzrlcrs Bookstores/Arcades Theaters TOTAL 147 80 -n5X 57 45 -21X 47 44 -5X 288 207 -28X DECEMBER 31, 1S75 LOS ANGELES CITY POLICE DEPARTMENT BUREAU OF ACTIVITY ANO PERCENTAGE TYPE OF ACTIYITY~ Adult Motels Massage Parlors Bookstores/Arcr.des Theaters TOTAL CENTRAL SOUTH WEST - vALLEY BUREAU BUREAU BUREau BUREAU 5(13X) 6 (1X} 6(20X) 7(16X) 27(23%) which follows involving the incidence of area provides what mzy be a positive and the presence cif adult entertainment Percent Nov. 1975 Dec. 1976 of Chan e 3 + 23(60X) 4 (5X) 1 (2x) 1 2x 29(14X) 5(13X) 42(53%) 24(53X) 28(64%) c9(48X) 5(13%) 28(35X) lI(24X) 8(18X 52(25X) -si- Los Anoeles City Planning Department Calvin S. Hamilton, Director Frank ?. Lombardi, Executive Officer Glenn F. Blossom, CitS~ 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 Evelyn Garfinkle, City Planning Associate Fred Hand, City Planning Associate Coordinator Ronald LeM~is, 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 TXdallas http://www.communitydeCense.org/cdcdocs/landuse/htmVncdallas.cfm AN ANALYSIS OF THE EFFECTS OF SOBS ON THE SURROUNDING NEIGHBORHOODS IN DALLAS, TEXAS AS OF APRIL 1997 Prepazed for: Ms. Sangeeta Kuruppillai Assistant City Attorney CITY OF DALLAS Office of the City Attorney City Ha117BN Dallas, Texas 75201 Prepared by: PETER MALIN, MAI 11/30/1999 5:00 PM TXdallas http://www.communirydefrnse.org/cdcdocs/landuse/htmVtxdallas.cfm THE MALIN GROUP Real Estate Programmers Litigation Support Services Dallas, Texas 2 of 32 11/30/1999 5:00 PM TXdallas http://www.communiTydefrnse.org/ededocs/landuse/hLnVOCdallas.cfm April 29, 1997 Ms. Sangeeta Kuruppillai Assistant City Attorney CITY OF DALLAS Office of the City Attorney City Hall 7BN 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 cabazet on the property values in the surrounding neighborhoods. The findings below update and incorporate the report prepazed by The Malin Group dated December 14, 1994. Dear Ms. Kuruppillai: In accordance with our engagement letter dated August 2, 1994, 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 conclusion. Conclusions Sexually oriented businesses, specifically those that offer or advertise live entertainment and operate as adult cabarets, currently exist in the city of Dallas. Many of these businesses aze located by themselves ~ away from other SOBS while in some azeas of the city they can be found concentrated in one azea. In our December 14, 1984 Report ("The Report") we found that SOBS have both a real and a perceived negative impact on surrounding properties. In such areas, crime rates aze higher and property values aze lower and/or the properties take longer to lease or sell. Ow study has found that the higher the concentration of these businesses in one locale, the greater their impact on the neighborhood. 3 of 32 11/30/I999 5:00 PM TXdallas http://www.communitydeferase.orgicdcdocs/landuse/htmVtxdallas.cfm Ms. Sangeeta Kurupillai April 29, 1997 Page 2 There aze 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 public's perception of the neighborhood in which they aze 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." t 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 SOBS keep late hours which can also become a nuisance to nearby residents. We studied police calls for service emanating from 10 different SOBS over afour-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 included 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 areas along Northwest Highway, the second of which contained two SOBS spaced more than a '/: mile from the other. From this evidence, it appears that there are increased sex crime arrests and disturbances requiring police presence azound 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. 4 of 32 11/30/1999 5:00 PM TXdalles http://www.communitydefense.org/cdcdocs/landuse/htmVbcdallas.cCm ~ Adult Entertainment Study , Department of City Planning, City of New York, 1994, p. 3. Ms. Sangeeta Kurupillai 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, decided to enact controls on SOBS which would prohibit them, 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 SOBS as well as residential, religious, educational and recreational uses. These distances were generally 500 or1,000 feet. Most localities established amortization periods after the enactment of the ordinance in which SOBS 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 SOBS was constitutional and did not abridge Fvst 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, Indianapohs, Austin and Los Angeles, we determined that their methodology was appropriate and their conclusions were sound. We 5 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefrnse.org/cdcdocsilanduse/htmVtxdallas.cfm have no reason to believe that these findings would be any difference 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."Z In other cities' studies, as 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 feaz the consequences of potential proliferation and concentration of adult uses in traditionally neighborhood-oriented shopping areas and view the appearance of one or more of these uses as a deterioration in the quality of urban life." 3 ZIBID. p. vii 31BID. p. viii Ms. Sangeeta Kurupillai Apri129, 1997 Page 4 In Dallas, we interviewed a number of real estate brokers active in an area punctuated by SOB's who reported that SOBS "aze perceived to negatively affect neazby property values and decrease market values." Eighty percent of the brokers responding to a NYC survey indicated that an adult use would 6 of 32 11/30/1999 5:00 PM TXdellas http://www.communitydefense.org/cdcdocs/landuse/hrmlibcdallas.cfm have a negative impact on neazby property values. This is consistent with the responses from a similaz national survey of real estate appraisers" 4 completed by Indianapolis and a survey completed in Los Angeles of real estate professionals. "Adult use accessory business signs are generally lazger, more often illuminated, and graphic (sexually-oriented) compared with the signs of other neazby commercial uses. Community residents view this signage as out of keeping with neighborhood chazacter and aze concerned about the exposure of minors to sexual images."5 This was a major complaint in our interviews in Dallas 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 41A 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. SU1vIMARY 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 shows that the location of multiple SOBS in one neighborhood can have a major impact on the neighborhood by contributing to crime, driving away family-oriented businesses 4IBID. p. viii SIBID. p. viii LJ Ms. Sangeeta Kurupillai April 29, 1997 t 7 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefrnse.orb/cdcdacs/landusc/hunl/bcdallas.cfm '.i: Page 5 And impacting the 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 neaz the SOB-dominated azea. Investors and lenders aze unwilling to invest in new improvements in these areas and the vacant land sits idle for yeazs. Single-family homes in the azea frequently end up as rentals because the families move away from the SOB-dominated area and it becomes exceedingly difficult to sell such houses. AttitudinalImpact As the recent New York City study states: "The experience of urban planners and real estate appraisers indicates that negative perceptions associated with an area can lead to disinvestment in residential neighborhoods and a tendency to shun shopping streets where unsavory activities aze occurring, leading to economic decline.6 The forces that influence real estate value aze 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 ideas and standazds (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 aze difficult to measure.8 6IBID, page vi The Appraisal of Rea! Property, seventh edition, by The American Institute of Real Estate Appraiser, 8 of 32 11/30/I999 5:00 PM T'Xdallas http://www.communitydefense.org/cdcdocs/landuse/htmVtxdallas.ctm Page 3. 8 Adult Entertainment Study Department of City Planning, City of New York, 1994, Page vi. Ms. Sangeeta Kurupillai April 29, 1997 Page 6 SCOPE OF WORK Our study was conducted in the following manner. We reviewed similaz studies of adult entertainment completed by five major cities. As part of our reseazch, we identified a Study Area which included seven SOBS operating as Cabazets (The "Study azea"). We then proceeded to compaze and contrast this azea with two other areas of Dallas with similaz land uses and traffic patterns (the "Control Areas"), one of which did not include any SOBS and one that included two that were a half mile apart. These were compazed on the basis of sex-crime rates and calls for police over a four yeaz period. Additionally, we interviewed property owners or their real estate brokers and agents who aze actively leasing, listing, managing, buying or selling properties in the Study and Control Areas. 9 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefense.org/cdcdocs/landuse/h[ml/tzdallas.cfm 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 yeazs 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 SOBS and neazly three times higher than the Control Area with two isolated SOBS. ~ We then contacted owners or their real .estate representatives at properties in each azea 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 auto part stores and vacant commercially zoned land. We surveyed this group regarding the length of time the property had been on the mazket, 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 similaz 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 neaz Bachman Lake on West Northwest Highway, a major gateway to the city where seven SOBS azea located. There aze three other locations of concentrated SOBS; Greenville Avenue near Lovers Lane; Harry Hines Boulevard near Royal Lane and Spur 342 east of California Crossing where smaller concentrations of SOBS are congregated. We did not study these areas. Ms. Sangeeta Kurupillai Apri129, 1997 Page 7 IO of 32 1(/30/1999 5:00 PM '~ TXdallas http://www.communitydefense.orgicdcdocs/landuse/h[mVbcdallas.cfm Generally, most other live entertainment SOBS aze 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 patterns to those of the Study Area. Control Area West is an azea 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, PT's, 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 SOBS are approximately one-half a mile apart but aze 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 Interviews 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 Mazch and April 1997, we conducted further interviews with some of the same and many additional owners and agents in the areas. 1 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 11 of 32 I (/30/1999 5:00 PM 77Cdallas http://www.communirydefense.org/cdcdocs/lendusc/htmVbcdallas.cfm 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 compazable properties in similaz 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 Two tracts with income-generating retail buildings show similar results. The one in the Study Area sold 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 SOBS. In ow interviews with real estate professionals, we learned that some properties had been on the mazket 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 similar properties along the same highway in the Control Area brought. The land sales in the Control Area ranged between $10.00/SF and $12.00/SF while four sales along the same highway just a mile away in the Study Area sold for prices between $1.20/SF and $7.00/SF respectively. salons, and certain restaurants. These users have found that the SOBS clientele will patronize their businesses; therefore, they tend to congregate neaz SOBS. We learned that retail space neaz SOBS 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 mazket. Also, a comparison of lease rates between the Study Area and the Control Area showed lower asking rates near the SOBS operating as adults 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 restawant. 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 owners 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 Areas. We found that sex-related crimes were over five times higher in the Study Area than in Control Area West and nearly three times higher than in Control Area West. Sex Crimes, as defined by the FBI, include: rape, prostitution commercial vice and sex offenses. (See Exhibit A 12 of 32 11/30/1999 5:00 PM 17Cdellas hrip://ww~v.communirydefense.org/cdcdocs/lenduse/htmVtrtdallas.cfm attached). The results of this comparison show crime in three similaz commercial corridors along Northwest Highway. The Study Area had 396 sex crime arrests during the 50 months period through 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. W_____.~...-...___.._ # of Sex Crime Arrest Location 1/93 - 3/97 Study Area 396 ~. Control Area East `€ 133 ;: Control Area West 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 SOBS aze 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 neazly all the other localities studied. ~ Police Calls We analyzed Dallas Police Department call logs where such calls were made from the SOBS in the three azeas (See Exhibit B). A review of these calls from the four year period 1993 through 1996 shows a repetitive series of complaints coming from these SOBS which includes assaults and unnrly behavior both inside and outside of the clubs. The Police Reports show numerous situations where weapons were present and prostitution was occumng. 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 benefited from the presence of the SOBS. The SOBS 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 SOBS. The two SOBS reported 275 calls for Police during the last four years. The Control Area with the two SOBs 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 evidence when the 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 aze located. Contributing to this is competition for customers requiring larger, more 13 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefrnse.org/cdcdocs/Ianduse/html/tzdallas.cfm obtrusive and graphically suggestive signage. Little investment in the area is being made because there aze a limited number of users who wish to be neaz such establishments. What investment is occurring requires much higher returns to offset the risks apparent in ~! the neighborhood. Our findings here in Dallas are reinforced by the numerous studies done in other localities, all showing higher crime in areas where SOBS aze concentrated (especially sex crimes). The general negative feelings towazds 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 national press. The presence of the SOBs in the Dallas Study Area has resulted in a general disinvestment in the surrounding properties. Respectfully submitted, THE MALIN GROUP Peter Malin, MAI Managing Director PM/kn LJ 14 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefense.org/cdcdocs/landuse/hVnVixdallas.cfm 15 of 32 11/30/1999 5:00 PM TXdallas http:/hvww.communitydefrnse.org/cdcdocs/landuse/h[ml~r<dallas.cfm C l6 of 32 11/30/1999 5:00 PM ~ TXdallas iV/ L_J LJ u 17 of 32 http://www.communirydefense.org/cdcdocs/landuse/htmVtxdallas.c(m t (/30/1999 5:00 PM 1'Xdallas http://www.communitydofrnse.org/cdcdocs/lenduse/htmVadallas.cfm L_J 18 of 32 1(/30/1999 5:00 PM ~ 77Cdallas l9 of 32 hrip://www.eommunitydefense.org/ededocs/luduse/html/bcdallas.efm 11/30/1999 5:00 PM TXdallas http://www.communitydefrnse.org/cdcdocs4andusc/html/txdallas.cfm EXHIBITS . II 20 of 32 11/30/1999 5:00 PM u TXdallas http://www.communirydefense.orgicdcdocs/landuse/htmVUtdallas.cfm 21 of 32 l 1/30/1999 5:00 PM ~~~~ http://www.communiTydefrnse.org/cdcdocs/landuse/htmVbcdallas.cfm ~~ 3 This is a concentration of SOBS along several blocks of West Northwest Highway. ~ a These beats are immediately adjacent to the seven SOBS in Beat 536. Source: Dallas Police Department i 23 of 32 11/30/1999 5:00 PM a 25 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefense.org/ededocs/lenduse/html/bcdallas.e(m I,"'. EXHIBIT C SOBS in the Study and Control Areas By Type of License 'J ~' 26 of 32 11/30/1999 5:00 PM TXdallas http://www.communitydefrnse.org/cdcdocs/landuse/html/bcdallas.cfm ~ '.i Study Area Chez Pussycat 'I Class A Dance Hali Crystal Pistol Class A Dance Hall !i Baby Dolls Topless Saloon ~ Class A Dance Hall De Ja Vu [ Class A Dance Hall S Fantasy Ranch/Diamonds i. Class A Dance Hall "Th F W t Class A Dance Hall e are es Caligula XXI SOB Cabaret* s Control Area East s P.T.'s i SOB Cabaret i Doll's House Class A Dance Hall Control Area Wes[ •` None * This license was denied and status is pending litigation 27 of 32 11/30/1999 5:00 PM Attp://www.communitydcfense.org/cdcdoca7anduse/htmVtxdallas.cfm EXI~BIT D SOURCES Study of the Effects of the Concentration of Adult Entertainment Establishments in the City of Los Angeles, Prepazed by Los Angeles City Planning Department, June, 1977. Adult Business Study -Impacts in Late Evening/Early Morning Hours, Prepazed by Phoenix Planning Department, June 1994. 1986 Staff Study in Support of S.O.B. Ordinance. Prepared by the City of Austin, Texas, 1986 (1/30/1999 5:00 PM ~ TXdallas http://www.communiTydefense.org/cdcdocs/landux/htmlitcdallas.cCm Adult Entertainment Businesses in Indianapolis - An Analysis, Prepazed by Department of Metropolitan ~"" Development Division of Planning, February, 1984. W Adult Entertainment Study, Prepared by Department of City Planning, City of New York, November, ~' 1994. 29 of 32 11/30/1999 5:00 PM ~ TXdallas http://www.communitydefense.org/cdcdocs/landuse/htmVtxdallas.cfm ~1 I~ EXHIBIT E PETER MALIN, MAI QUALIFICATIONS IN REAL ESTATE COUNSELING, VALUATION AND EXPERT SERVICES Peter Malin, a third generation real estate professional, has 19yeazs experience in the field. His experience ranges from being a Land Use Manager for the nation's lazgest 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 Irrvestment Trends, reporting on real estate ~ trends in the Texas mazkets. For four yeazs Mr. Malin worked for International 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 azeas 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 yeazs as an expert on real estate values. Mr. Malin's other experience includes appraisal, mazket reseazch and counseling on commercial 30 of 32 11/30/1999 5:00 PM ~ TXdallas ~ http://www.communitydefense.org/edcAocs/landuse/hUnVtxdallas.cfm rY properties throughout the U. S., including: ~ Major urban developments including urban land, hotels,-office buildings, pazking gazages 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 pazent firm, Newmarket Group Southwest, a full service commercial real estate fine. While at Newmazket, 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 licenses in over 20 states during the past five yeazs. 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" 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 International Appraisal issues and developed and taught the first Appraisal Course on "International Appraising" for the Appraisal Institute. In 1993, he lectured at the 20a` World Congress of Federation Internationale de Geometric as well as the 6~' 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 Appraisers. Mr. Malin has been hired... expert witness in numerous cases involving real estate issues and valuation. He has testified or been admitted as an expert in local, state, and Federal courts in Texas, Florida, Alabama, and Louisiana. Today, The Malin Group Real Estate Economists continues to serve a national client base and provides real estate reseazch, 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 3l of 32 11/30/I999 5:00 PM ~ TXdallas h[[p://www.communirydefense.org/edcdocs/landuse/html/txdallas.efm r continues to publish the firm's newsletter, Capital and Investment Trends which covers the Texas real t"' estate markets. r. 32 of 32 11/30/1999 S:OO PM ~" r. f g4 Time. Place, and !vtanner Regularion or Busincas Activity City of .~ustin AUSTIN CITY COUNCIL MAYOR Frank C. Cooksey MAYOR PRO TEM John Trevino, Jc. COUNCIL r~ERS Mark Rose Smoot Carl-Mitchell Sally Shipman George yutnDhrey Charles E. Urdy CITY MANA['ER Jorge Carrasco REPORT CN ADULT ORIENTID BUSINESSES IN AUSTIN Prepared By Office of Land Devaloptant Services Msy 19, 1986 Appendix B ~~ i' ~ ACIQ~k7WLEDGEMENTS This report was prepared by the Special Programs Division of the ~ Office of Land Development Services (OLDS), with assistance from other city agencies. The following staff members were involved: Office of Land Development Services James B. Duncan, Director ~!" Lilas xinch, Acting Deputy Director Yr Marie Gaines, Assistant Director for Land Use Review Sager A. Williams, Jr., Division Planner Dan Drentlaw, Planner III, Project Manager xirk Bishop, Planner II Stephen M. Swanke, Planner I, Primary Contributor Jean Page, Artist II Monica Moten, Drafter II Sharon McKinney, Senior Administrative Clerk Fletcher ELsbanks, Intern Mike Hovac, Intern Mike Major, Intern James K. Parks, Intern Robin walker, Intern Austin Police Department Jim Everett, Chief of Police Jce Hidrogo, Director of Research and Planning P.O. Kevin Behr, Administrative Assistant to the Chief Leslie Sachanowicz, Planner Analyst Galloway Beck, Planner Analyst E. Gay Brawn, Administrative Technician II Karen Murzay, Senior Administrative Clerk Building Inspection Department James W. Smith, Directbz Bill Cook, Manager, Neighborhood Conservation Edward Sanchez, Acting Supervisor, General Inspections Terry L. Meadows, Senior Inspector, General Inspections II L ,, !" 86 Time. Place, and :vianner ReBula~ion of Business Acrivicy TABLE OF Page I. Introduction 90 II. Summary of Existing Research 91 A. Analysis of Existing Research 91 B. Legal Basis g3 III. Adult Oriented Businesses in Austin g5 A. Location of Existing Businesses 95 B. Evaluation of Adult Business Impacts 98 C. Trade Area Characteristics 116 IV. Conclusions 121 Appendix 123 .~ ~: . .. w it , `r Appendix B 87 TABLE OF MAPS Map 1 Existing Adult Businesses Locations Map 2 Study Area 1 Map 3 Control Area 1 Map 4 Study Area 2 Map 5 Control Area 2 Map 6 Study Area 3 Map 7 Control Area 3 Map 8 Study Area 4 Map 9 Control Area 4 Map 10 Adult Business Trade Area - Southside News Map 11 Adult Business Trade Acea - Cinema West Map 12 Adult Business Trade Acea -Yellow Rose 96 101 103 103 104 105 106 107 106 117 118 119 i . gg Time. Place, and `Sonnet Regulation of Business Activity ~" SUlT1ARY Purpose ~! This report provides the basis for development of an amendment to the ' ~y s current Austin zoning ordinance regulating adult businesses. Austin adult business zoning ordinance was permanently enjoined from being enforced in January, 1985 when Taurus Enterprises sued over a "Code ~ issued by the City. The violation occurred because Violation Notice" , a bookstore was located within 1000 feet of property zoned and used for residential proposes. Existino Research and Legal Hasis The first portion of the study examines existing research concerning the impact of adult business on crime rates and property values. Results from these studies contain-similar findings - crime rates are higher and property values lower near adult oriented businesses. Despite the negative impacts, regulation of adult businesses must respect constitutional rights of owners and patrons. Therefore an overview of pertinent legal and constitutional issues is also provided. Existing Adult 9usinesses in Austin Austin has 49 adult oriented businesses, consisting primarily of aters, massage parlors, and toeless bars. Generally, bookstores , these businesses are located in an area between Lamar Boulevard and Interstate Highway 35. Analysis of the Impacts of Adult Businesses in Austin An analysis of crime rates was conducted by comparing areas with adult businesses (study areas) to areas without adult businesses (control areas). Both control and study areas are circular in shape with a re in close d a 000 foot radi contain similar land uses, an 1 , proximity to on~ another. Four study areas were defined: two with single businesses and two with more than one business. Within the ar1 to n 4 study areas, sex-related crimes we.Le...found to be from two a g T tes wer~ rime r ed five times the tit -wide average.../ Also, sex-retat areas with two adult businesses d i ~ - y in stu igfie b6 found to ns ~ compared to study areas with only one business. In order to assess the impact of adult businesses on property values, raisal and lending state a l pp e questionnaires were mailed to 120 rea f those responding indicated a belief firms. Eiaht~ight percent o would decrease residential property values u lt bookstore that an ad and 59• felt that residential property values would within one block , decrease within three blocks. Respondents based their opinions on ss l e several factors. They noted that adult businesses made homes values . attractive to families, thus lowering demand and property Others stated that the existence of adult businesses leads mortgage thus in decline d i , s underwriters to believe that the neighborhoo making 951 financing difficult. ~ Appendix B 89 Trade Area Characteristics Zn order to make appropriate recommenaations for assignment of adult businesses to specific zoning districts, a study of trade area characteristics was conducted. Three adult businesses - a bookstore, theater and a topless bar - were examined to determine customer addresses by an observation of vehicle license numbers. Of the 81 observations made, only three customers had an address within one mile of an adult business. Nearly half (44t) of all customer addresses were located outside the City of Austin. Recommendations Based on the findings of this study, the following recommendations are made: 1. Adult businesses should be limited to highway or regionally - oriented zone districts. 2. Adult businesses should be dispersed to avoid the over concentration of such business. 3. Conditional use permits should be required for adult businesses in certain specified zone districts. '-J ~"' 90 Time. Place. and Manner Regulation of Business dccivicv it ; ~, . CHAPTER I I.vTRODUCTION }~' As is the case in many large American cities, Austin has witnessed a i(Y rapid rise in the nwnber and type of adult entertainment businesses over the past decade. These businesses present a particular problem due, in part, to the moral implications associated with such enterprises in the minds of many members of the community. in addition, the proliferation and alleged detrimental effects of these businesses upon surrounding neighborhoods have been the focus of community attention for quite some time. This attention has resulted in numerous requests for the City to regulate adult businesses. The regulation of adult entertainment businesses is a controversial matter. While legal and constitutional bases for municipalities to control the use of land within their jurisdictions in order to protect the "public health, safety, morals, and general welfare of their citizens" has been firmly established, the Supreme Court has upheld the right of adult entertainment businesses to operate in the community by virtue of the First and Fourteenth Amendments of the U.S. Constitution. Resolving conflicts between the legal rights of municipal governments and those of adult business operators and patrons has been a difficult task. Austin enacted a "Sexually Oriented Commercial Establishments Ordinance" on May 22, 1980. This ordinance prohibites adult businesses from being closer than 1,000 feet from a residential use. On October, 25, 1983, a lawsuit was filed attacking the validity of the Ordinance. The lawsuit was filed after the euildina Inspection Department issued a "Code violation ,vocice" for an adult bookstore located at 8004 Research Blvd. :'his violation notice was filed because the bookstore was located within 1,000 feet of property zoned and used for residential purposes. The suit dis~ted the city's assertion of harm to areas zoned and used for residential purposes. On January 10, 1985, a tkial was held. 9ecause the court was unable to make a factual finding~on the validity of the City's assertion, it permanently enjoined the City from enforcing the ordinance at that location. The court did not declare the ordinance unconstitutional. However, because of the precendent set by this action, Austin currently lacks an adult business ordinance that can be effectively enforced. Therefore, it is the purpose of this study to objectively evaluate the impacts of adult entertainment businesses on surrounding neighborhoods and to formulate appropriate regulations based on these findings. ~ ~: ~ Appendix B 91 iri CHAPTER ZZ SUPIIMAY OF EXISTING RESEARCH This chapter presents a brief overview of existing research and regulations written to address adult oriented businesses in various parts of the country. An understanding of the effects of adult oriented businesses on surrounding properties and the legal basis for regulations controling such businesses is critical in developing an ordinance for Austin. A. ANALYSIS OF EXISTING RESEARCH Amarillo, Texas The City of Amarillo's study, A Aeoort on 2onina and. Other Methods of Aeaulatina Adult Entertainment Uses in Amarillo, concluded that adu t entertainment uses are distinguishable from other businesses in that thev have negative impacts on surrounding land uses. The study estahlished a relationship between high crime rates and proximity to adult businesses. Furthermore, the study found that the late operating hours of most adult businesses created special problems to surrounding neighborhoods in the form of noise, glare, and traffic. 9eaumont, Texas ~ A planning departa+ent study done for the Charlton-Pollard Neighborhood ~ in aeaumont, texas irnestigated the effect of adult businesses on e economic decline and crime. The siuay concluded that the ' concentration of adult businesses drove away neighborhood commercial stores and contributed to an increase in crimes such as prostitution, d:ti:g use, and muggings. indianaoolis. Indiana .n February, 1984, the Division of Planning in Indianapolis published - a report titled Adult Entertainment Businesses in41ndianaoolis: An Analysis. 'this report croncained the results of evaiuacion of the :coact of adult business upon surrounding areas in teens of crime rates and real estate values. The study assessed the impact of adult entertainment businesses on crime rates try researching six areas containing adult businesses and six similar areas containing no adult lated - h d " re at sex these areas reveale t :.vsinesses. A comparison of crime rates were 77 percent higher in areas containing adult ~! businesses. r~ ~? Time. Place. and Manner Regulation of Btviness?,ctivicy ?'1lP second portion cf the study evaluated the impact of adult businesses on real estate values by surveying professional real estate gyp! airpraisers. Two surveys were conducted. The first surveyed opinions of members of the American Institute of Real Estate Appraisers practicing in 22 metropolitan areas similar in size to Indianapolis. The second survey was a 20i random sample of AIRFA members drawn at a national level. In the metropolitan area survey, 78i of those surveyed .felt that residential property values would decrease if located within one block of an adult business. The national survey generated similar results - 80i of those surveyed felt residential property values would decrease if located within a block of an adult business. J L1 Los Angeles, California The Department of City Planning for Los Angeles published a report in June, 1977 entitled Study of the °_ffects of the Concentration of Adult Entertainment Establishments in the City of Los Angeles. An evaluation of the impact or adult businesses on both crime rates a~ property values was conducted. Crime rates were evaluated comparing the Hollywood area with the remainder of the city. Hollywood was selected as a study area because of its high concentration of aault businesses. The study focused on the years 1969 to 1975, during which the number of adult businesses increased from 11 to 88 es tablishmentarea~wereul5 tnmesagreatertthanstheucity arrests in the Y.ollywood average. Like the Indianapolis report, the Los Angeles study surveyed real estate appraisers to assess the impact of adult businesses on property values. Over 90i ai those surveyed felt that the concentration of adult businesses would decrease the market value of private residences located within 1000 feet of the adult business. Eighty-seven percent indicated that the concentration of adult businesses would decrease the market value of business property located in the vicinity of such establishments. Los Anoeles County, California in April, 1978, the Department of Revional Planning of the County of Las Angeles published a study entitled Adult Entertainment Study and Proposed^.onina Ordinance Amendment. In the stvay, aw enforcement ocficers were surveyed. desponses from the surveys indicated that areas with a concentration of adult businesses have a higher incidence of public intoxication, theft, assault, disturbing the peace. and sex-related vice. Respondents indicated that nude bars, modeling studios, and massage parlors caused the most individual problems. f Yr s .appendix B 9j Phoenix, Arizona Tlic City of Phoenix study investigated the incidence of crime by comparing three study areas containing adult businesses with three control areas without adult businesses. They concluded that crimes were 43 percent higher, violent crimes were 4 percent higher, and sex :elated crimes were over 500 percent higher in the study areas. St. Paul Minnesota The planning department in St. Paul conducted a study entitled Effects on Surrounding Area of Adult Entertainment Businesses. The study found that there was a statistically significant correlation between diminished housing values and crime rates and the location of adult businesses. The study also concluded that there was a stronger correlation with neighborhood deterioration after the establishment of an adult business. 8. LEGAL BPSIS Regulation of adult businesses has taken a variety of forms in cities throughout America. Boston, Massachusetts, for example, has adopted an ordinance that restricts ail adult businesses to a single geographic area known as the "Combat Zone". Detroit, Michigan,on the other hand, enacted an ordinance intended to disperse adult businesses. This ordinance, passed in 1972, prohibited adult entertainment businesses within 500 feet of a residential area or within 1000 feet of any two other regulated uses. The term "regulated use" applied to a variety of businesses, including adult theaters, aault bookstores, cabarets, bars, taxi dance halls, and hotels. A[ this time, only Seattle and Renton, washingcon have ordinances similar in nature to the Boston ordinance. However, several cities have adopted regulations similar to those enacted in Detroit, which ace aimed at dispersing adult entertainment businesses. The troit ordinance was legally challenged and ultimately upheld by the U~iited States Supreme Court in 1976. This court case, known as '!pang -v- American Mini Theaters. Inc., now serves as the primary legal precedent regorging the use of zoning powers to regulate adult entertainment business. In Young, the Supreme Court held that "even though the First Ame[sdment protects ccmmunication in this area !sexually explicit activities) f:em total suppression, we hold the State may legitimately use the content of these materials as a basis for placing them in a different classification from other movie theaters"'. 1. McClendon, Bruce w.; Zonino for Adults Only, (Zoning news; American Planning Association, August, 1985). LJ 94 Time. Place. and c~ianner Re~ularion of Business Activity T.~e plurality opinion for this court case set out three First :,mendment criteria that ordinances regulating adult entertainment tvsinesses must satisfy i:~ order to be Constitutionally upheld. 1. Regulations must be motivated not because of a distaste for the speech itself, but by a desire to eliminate its adverse effects. 2. Properly motivated legislation may be unconstitutional if it severey restricts First Amendment rights. 3. A properly motivated ordinance with only a limited impact on free expression may be unconstitutional if the municipality cannot demonstrate an adequate factual basis for its conclusion that the ordinance will accomplisg its object of eliminating the adverse effect of adult businesses . The limitations established by these criteria ace best illustrated by analysis c~f the invalidation of Atlanta, Georgia's Adult Entertainment ordinance This ordinance prohibited adult entertainment businesses from locating within 1,000 feet of any ocher such use, within 500 feet of any residential zoning district, or within 500 feet of any church or place used for religious worship. TT~e ordinance also restricted all new adult entertainment businesses to three zoning districts. The Atlanta ordinance further required the amortization of certain existing businesses. althouch fact'.ul .evidence was presented in support of Atlanta's ordinance, the U.S. Supreme Court found that the ordinance violated the first two criteria cited in Youno. The Court first found evidence of an improper motive in enacting the ordinance.. Minutes of a zoning review board meeting indicated that the board would help citizens opposed to the conduct of adult businesses to "zone them out of business". at the meeting an assistant city attorney indicated that the proposed ordinance was the "strongest vehicle toward elimination" of these businesses and the city was "hoping for complete eradication" of adult businesses. The court also 4found that the locational restrictions of the ordinance would sianifl!~cantly reduce and possibly eliminate public access to adult businesses. The court had ruled in Ycuno that "pornography zoning" is constitutional only if "the market for this commodity is essentially unrestrained" The locational restrictions and amortization requirements in Atlanta were deemed too severe a restriction on the First amendment rights of adult businesses. 2. Weinstein, Alan; Aeoulatino Pornooraohy: Recent Legal Trends; (Land Use Law; February, 1982;) p.4 3. lbid. p.4 4, lbid. p.4 1 pppendiY B 9~ CHAPTER III ADULT OAIENIED BUSINESSES IN AUSTIN A. LOCATION OF EXISTING HUSiNE55 There were 49 adult-oriented businesses located within the corporate limits of the Austin as of January 1, 1986. These businesses have been grouped into two major types of businesses: Adult Entertainment Businesses and Adult Service Business. Adult Entertainment Businesses consist of adult bookstores, theaters, and film stores. Adult Service Businesses consist of massage parlors, nude modeling studios, and topless bottomless bars or clubs. Adult EntertainmenC Businesses must be carefully regulated due to their constitutionally protected status as an expression of free speech. The classification of these businesses is difficult, particularly in the case of Adult Entertainment Businesses, since many of these are involved in the selling of printed material as well as novelty items, and the showing of peen shows. For the purposes of this study, businesses listed as bookstores include a substantial portion of the business involved in the selling of printed material, but may include the distribution of naveity items, showing of peep shows, and other related forms of adult entertainment. Any business that exhibits adult films on a single screen with 100 seats was classified as an aaul[ theater even through it may offer adult video tapes or fiLss for sale. ?able 1 lists the names and locations of the 49 existing Adult entertainment businesses in Austin. `fap 1 depicts the locations of .hese in the City of Austin. As shown cn this map, 21 of the 49 existino businesses are nor located within 1000 feet of another adult business. Of the remaining 28 businesses, there are eight groups of n+o businesses, one group of three businesses, one group of four businesses, and one group of five businesses. The locational ppa~ttern illustrated on Map 1 indicates a propensity for adult businesses to locate along the major north/south roadways or on major ea tiwest roaaways between Lamar Blvd and IH35. 96 Time. Ptace. and ,Manner Regulation of Business Activity .- %. - ---' =-• ~~~'='~ is ^ ,~~_~p • ~~/.~~ . ,r: ;.~ ~f 1 ~.r:~~ I `< mil =~ ~ <) ~=FRI~~t'71 ~• -1- i 1aC ' ~ ... ~~ _ , ` 2`~,~.~..!:It jj~ 3~%~ ~ a `, .STTii4~r• !~. .. r r 'I ~ ..I•y ~ rR=`~t 'I +SA`j~~ `.~a/~113~ ~1. .~'t!~ S.t f~' ` I'1 ~~ r.l i ~I- I e:r~ __ri =tS` q`~~\'f ~=`,TJ( i~~~{~~, ~./ji ~+• '/~~~ ~Jf•`~ -i' =~ I'MP /7( %rn....j~ .: I- ~ •I'~~'~'I~•[:! ` 8T. i4~t7 `v~P'zj`• ~ ~I ~ ~~ ~ .,. ~~ t Ali..,. :l~~~~.Fe+i/=:r7~:J~ics~1, ~.~~GJ+~h•s,. `F",r. ,. r _ ~ ~ , .. I '--: ' ~ ~ c`ar' 17]f .;~ih~~.~'•~J .hz, res~~~~ ati%) ~ i~ ~ ~ emu./~ .~ ' I ~ ~ !lf ~I ~}r~ :--I i.. L ~ •W6 'Wn.TC tO '.~i"' ,~y~J r, •, ' ~ 11 r +{('~j q _A'A(15511 ~.1-.~ ~?I1 ~ _ ,. .y •= r. ~//rir~ kr~' : WI(~YP16~ti Tet y :G~~/'`' ~i~ T' ~ ~. "s_,I - • .. ~ - , C/ C•` i L'fl ~t ti30 167 =,',y::? ~Ot ~~, i .~ ~Y ` ^~y. -.`~.4~ 1~r-trr -~:r,_ :/E.J(..~:~. rrrt:?''it.~ va•f1.! ~`i'1.,,lHS'~~; y~ i ~ ~ _ r :~~ i _.fJ°`? -r,r'i ~_: Si7 : ~:"•r~~;j~~At7:-~ i.. '~~y~~ ~:`: ~f1~'tf. e ; i-- • _' -~.,• ~ ~: ..:.(S• I r',~'.. :yJ y ~ 1r`~ rr~~ U ~1a7•T .\1•p-i1W70~T!'t'•~.r~~ft~ `v. ' ' ~~ y .~gK,~/:'lY•f~f\_.11:1_n..a(7 T .r,q/b~r pp~>rT•l ~ ~~ /-..t ~~ r ter' ... n ea. 4 r~ . y 'r" S" - r s ~ .'~' t. say ~` r ~ .. ir-'! C :.4.I`' > , an a XJ.J:. 4 ~~~•;, atr'~: ~_. - ~~-'__ r ,~~ ~ 'fi'b! we , aatotLa _ _;~(,•~.. -~ ~ •~ .sir( 4.; ~ : v ..1.;•y i. ~I. rte` _ n:eia' _ _ r- ~- .[.LJ...~ '. _ x .n. _tlss~ .,~ 'ilk 3i~ i w up ~~ /{,~~ ~ 1 / I ~ t. ~ ,'.`~ ~=`` ~ f ~ , r('>-~.e (~V" ..,ei~p;U 1 J ~b.. r ! r!-. ~:( _z, . 1, efi..J -~_ ~ e°' - C''wv~r ,i, _,1 „~ ; r -~~wf'%41r~~rr i r~ ~ 1 ~`r`5 -r ~. r• •~' J : _ exiar,o r-dWt eww.. wo,tat,..=-~- !="!r' - - ~ iss '~ a AT A41t Tlrwt.r _ ~~~~,d ,9 + ~ ...: w~:\ r~cc+% Ba Agllt 9owua. ~ . ~~R F9 Amt FNltrtw. I ~ l ' '1.. ~." 1~'" ^ ~ I mod' TC 9o~w Cka or Nua 1~bawq y . j i ~~ 't.,T. ,~~, nJ .... ,..... P, i ~ I -~.~ tet• ~I r~ti Adult Entertainment 9usinesses .appendix B 9 Table 1 Existing Adult Businesses Austin, Texas January 1, 1986 Adult Bookstores 1. Adult 'theater 2. Mr. Video 3. River City Newsstand 4. River City Newsstand 5. Video Barn 6. Southside News -r. The Pleasure Shop 8. Oasis Adult Book Store 9. Ms. Video 10. Sixth Street News 3401-A- North IH35 1910 Guadalupe St. 613 west 29th St. 800d Reseacch Blvd. 615 west 29th St. 2053 South Lamar Blvd. 603 west Oltorf St. 8601 North IH 35 718 Aed River St. 706 Fast 6th St. i I' u Adult Theaters i. Cinema west Theater 2. Texas Adult Theater Adult Film Stores 2130 South Congress Ave. 2224 Guadalupe St. video Barn 5726 Burnet Rd. 2. video eacn 708 East 6th St. 3. Video Barn 9640 North Lamar Blvd. C. Video Barn ZO55 South Lamar Blvd. 5. video Barn 512 west Stassney Lane 6. Video Etc. :610 North Lamar 81vd. Adult Service Businesses Maasage Parlors 1. Ann's Massage Clinic 2. Body Works, Inc. 3. Fantastic Oriental Massage 4. Fantasy Massage - 5. I Dream of Jeanie 6. La Femme 7. Michelle's Massage 8. riidnight Cowboy Oriental 9. oriental House of Massage 10. ?andora's 11. Relaxation Plus Massage 1Z. Relaxation Plus Massage 13. Satin Spa 14. Tokyo Spa 1406 South Lamar Blvd. 2906 son Gabriel st. 1104 West•Koenig Lane 5520 North Lamar Blvd. 4406 North Lamac Blvd. 3502 North IH 35 403 Fast Ben white Blvd. 313 East 6th St. 3007 North IH 35 631 west Ben White Blvd. 2716 Guadalupe St. 612 Nueces St. 6735 U.S. 290 East 9601 North IH 35 1104 {... . i ~J 98 Time. Place. and Manner Regularion of Business Acriviry 3004 Guadalupe 5t. 15. Vickie's Massage 92 East Ave. 16. Silk Cady Massage 17. New Seoul Korean Massage 9401 9o5outhoIH[35s 18. The Casbah 9401-8 South IH-35 19. The Chateau 1410 L'lit 20. Singletons Massage Topless Clubs and Nude Modeling Studios 1. The Crazy Lady 2, The Doll House 3. The Red Rose 4. Honey's 5. Sugar's 6. The Yellow Rose 7. Ladies of the Eighties 8. Adams Nude Modeling Resort 9. French Quarter 10. Burlesque Modeling Studio il. Pearls Place 3701 North IH35 3615 South Congress 336 East Ben White Blvd. 629 west Ben Vfiite Blvd. 404 Highland Mall Blvd. 6528 North Lamar Blvd. 2304 South Lamar Blvd. 1023 Reinli St. 10600 Middle Fiskville Rd. 4912 North IH35 4814 North IH35 B. EyALUATICN CF ADULT 9U5INE55 IMPACTS In order to develop appropriate recommendations for regulating adult businesses, it is essential to assess the impact of such businesses on the neighborhoods that surround them. Research conducted in other cities suggests that adult businesses have a detrimental effect on the incidence of crime and property value. This report will assess the impact of adult businesses in Austin by comparing the incidence of crime in areas surrounding adult businesses to similar areas having no adult businesses and by surveying the opinions of real estate orofessicnals concerning the effect of adult businesses an property values. The methodology used in this research is similar to those used in the Indianapolis, Indiana and Los Angeles, California studies. For a re detailed discussion of the methodology and results of these studies, see Appendix A. incidence of Crime MethodolooY• '1T~e effect of adult businesses on the incidence of crime was measured by collecting crime data for areas with adult businesses (Study Arens) and comparing them to similar areas having no adult businesses (Control Areas). This evaiuacion focuses on three questions. First, is the incidence of crime, particularly sexually refaced crime, higher in areas surrcunding adult business sites than in similar areas without adult business sites? Second, is the incidence of crime, particularly sexually related crime, higher in areas having more than one adult business than in areas having a theseearenslcomparentoscrime1rates~forwtheCityeofnAustia asfacwhole?n Appendix B 99 'this study collected data for 45 serious criminal offenses, termed Parr 1 Crimes by the Uniform Crime Report, and 21 sexually related criminal offenses. These offenses are detailed in Appendix B. The data collected represents calls to the Austin Police Department from January 1, 1984 through December 31, 1985. Crime rates are expressed as the number of reported incidents per 1000 area residents. Selection of Study and Ccntrol Areas. The selection of appropriate study and control areas was a crucial element in the objective assessment of the impact of adult businesses on the incidence of crime. Study Areas containing adult business sites were carefully selected to be representative of the adult businesses existing in the Austin area. Four study areas were selected. Study Area One includes two businesses, a modeling studio and a topless club. Study Area Two also includes two businesses, an adult bookstore and an adult oriented film rental store. Study Areas Three and Four contain single businesses, an adult bookstore and topless bar, respectively. Table 2 Study Area Businesses Study Area 1 ' eurlesaue Modeling Studio 4912 N. IH-35 , Pearls Plaee 4814 N. IH-35 Study Area 2 Southside News 2053 5. Lamar video Barn 2055 S. Lamar Area 3 St d u y The Pleasure Shoppe 610 W. Oltorf Study Area 4 d The Yellw Rose 6528 N. Lamar Blv As noted, two of the Study Areas contain one, and the others each contain twp, adult businesses. Althouan two adult businesses does not reflect the highest croncentracion of adult businesses located in Austin, this level of concentration is more representative of existing locationai patterns in the City. Those areas containing more than two adult businesses were examined and found unsuitable for this evaluation. ~1 100 Time. Place, and bfanner Regulation of Business Activiry 'he highest concentration of adult businesses is located gust vest of the University of Texas ramous along west 29th Street. This area was considered unsuitable because the transient population associated with the University of Texas might unduly influence the results of the evaluation. The concentration of adult businesses existing in the Central Business district was deemed unsuitable for study due to the Lack of residential uses in the area. Three adult businesses are located along IH-35 near its intersection with East 38 1/2 Street. This area was not selected because a large portion of the Study Area . is occupied by Concordia Lutheran College, and a suitable control area with similar land uses was difficult to define. in order to draw valid comparisons, the Control Areas were selected according to their proximity and similarity to the Study Areas Four Control Areas were selected for comparison to the four study areas. LJ C C~ E~ i I Appendix B 101 MAP 2 STUDY AREA 1 ,• ~~ .~ 1 '( ~%~ 1 ~ o ~~ /col I I I( ~' ~~~ o c ~-. , V .~ 777 >; S` • /~, ~i., ~t Qr \-7. /. s /. }.O J- I m 2. QC • n..~~ moll I~11 •~~ ~~^\ /f ~„',~, III 1, t~ ,.. ., - ~;./ I _r i r ~: , 11 ~• <: '' ~% '. ~~MF-d ~ _ ~_ ,~ ~( ii=; ~.,\~ ~- LAND USE IEDENO ~ _3 - ,',~~`~ ~)~i ~i ,CS ~~ ~' Sinpls Family ' ~ / O.` 1 1 r ~ / _. ~ ~ .,,. I I ~ , ~-~ Multi Family \ - I ~ ` •~ \\~~' ~~ Office •' .`\ v ~?,J' C I ' I~~ '~~\ r~/I~ ~ ~ IndUalflat ~ ~ ~ ~~ ~ Psrk r -; ~- ~ y" ~ I I ~J ~ ~^' i ~ ~%~~' ~\-~~r ~ Vacant Land ~ 6cala m Fri ~ ~ r \ ' ~,~ f-.f ` ~ , .•/ \ ~ Adult Businasa 0 300 ~~J ~ 1 i.' r r 1. ~^ $Ittl ' ' I'i 1 I ~.rY / 1 102 Time. ?lace. and'~lanner Regulation of Business Acrivi[y i:. ~'° MAP 3 CONTF~OL AREA 1 •. _. .. -Ci r~ `^~ c•~ .•,~ ././• .. pro ~ `v ::...' ~Mi='T .'~``` `/ ... '~O'~r ~~ ~i rte` ~~~ ,~ f' ~' •~ ~ ~ :J / i O. T. ~/-~ ~ ~., ` \- - - n -''F• ~ o~~ ~:~,•: - • , ~ f ° X16 ••• : ~ ~ r;iL f' c • ~'' •, t;f: 1.iF. '• -,~ ,,..'''~~/\~i c° '.:`1~~J CS"ley /,'moo/o \" / /' -. :~/i~-ny \~i X1'7 ~/~i ~"_ ~G~\07 ~ ..~_ / / ^7~~ ~, r . -- = y _ ~ _ - • ` j y,:_..' \ ! ~ ~.. ~ 4\~~' :.: !, l~ i~T"'.~'ty ~ /ice c,. •\~ ~ ;/o ~ f ray LAND USE LEGEND • -\ • __ ~.=7 !'- ~. ~ o ~ f i I I ~.. ~ Sinpls Family _ ~ / .' I ! = . !'~-3 ~'._ ~ t ,~ (-__..._._~ Multi Famt1Y 5 . ~~% I t ~, _ c ~I ! i i.~r~ ~ CDmmerctal ,~,~, • `. ~ `_.-.~~~~J ( I !»~ ~ ~.._-_.~ Office LR - ~ / , ' ~ I I • {~' ~j ~ Industrial • lil ~/ 0 Perk I v zoo ~~~=~ vi•t... ~ I '~ r'~'' ~ Vacant Lano r Appendix B 103 MAP 4 STUDY AREA 2 .y.\ , .. ~ ,`. > ~ % '' , .. ~''~.=~.,/: -~ (a~ /, <~ /~ ~` , ~:.~- .~ :yam{~~ c ~~, ... < F.g ,oo ~ . ~ .1, ~--- -. ••• z i, ~~ ,;~~ ,\ i ~ ~ ~ :. ~c ~ . ~ ~-~ ~ ~~ '. LAND USE LE4EN0 ~~ CS •. .' ~!; ~ ~' ~ ~ ~- Sinpla Family •~' \ _ '~ C~ ("--' Multl Family ,~ ,~` ~\ ~~ ~ / - i ' Industrial ~~J CS - i, ~~ ~ . ~' i ~ ~ Puotle r ~\ ~ l C$ ;', .~ -~ Park .-'~I-~Y ~ ~ ~ / ~ vacant Land !~ / "/ /i, Su~~ ~n Fug / / ! Adult 8ualnaaa io °o / / i j~ ~ Slta ` __ _ . :- 10~ Time. Place. snd Manner Regulation of Business Acciviry MAP ~ CONTROL AREA 2 ~• . :. _ .~ ~ ~ ~ ~~ _' ~ '~•-mac ea2•• ~~ .., ~~\ ~ ^ ~ j, //~ r, J• J r~~ .t ` ~. Ci ., - ~_~ ~J ~1: Jam, ° ..° ~/.~/ •~~'' ~ . •~ i is-"~; ~~//_ ,)~~'.i :~ ~ ~ ~ / ~' l -_cc_ LAND USE LEGEND v ~ ~ •~ ......... G~ / L\ . ~ i -- i Sinple Family ~~`\ ... :, /t.1F-3 ~~~~ r~,__..t Multi Family / \ Commercial \\~~~ `~ ~L~~~\ ')F Ottica _ r - Industrial Pu01)c © Psrk 11c+~. m Fwd ~ Vacant Land €~ (~ ~+ ~ . ~r ; Appendix B 105 MAP 6 STUDY AREA 3 /~• - ; ' ~ - ~ ~ ~ ,-~:_ -~_ - .. ~ / • '~ „ ~ Tom. / / ~ _- -•' ~ u ~~• ~ ~ • , ~..' ~~ ~ . ` ! ~ ~ - SCSI ~ PdF-3 ` . .~= rte- ' - ~, o / \ / t_t, /-1,•~. . / s. _ _` ` r ,~..I ..~ \ / \ 7 ' ~''~ S. - _ ~• ... ": , c~ ;:~ _ L' AT ~ Cis i~ CS ~ .,'mac /iCc./ \ L. , : ~ ~'i ~ l` ~'~ ' ,• 2, o zoo ':• '1 ~ .i ~ .' .. - ~~;` '' j ~.. v - ~:/ LAN^ USE LEl3EN0 Slnpla Famlly Multi Famlly Commartl~l Induatrfal Publte Park Vaeant Land Adult Buafnaaa Stl• ~ •' ~ 106 Time. Place. and .titanner Regulation of Business Activity MAP 7 CONTNGL AREA 3 /., /~ ;,, ~ /~ / , ~ ~~.~ •~: ~ ,o r ,~.~ ~ ` i ~ /, '/ ~~; .` ,`1 ~.. <<- t I i , ~~~ ~.` • / -• • _., •/ ~\ ~ .~' ^., LO / r o e+ .....1~..,~ s t ' /` 1 I~ ~`'~ v V V / ,/.->~ ,. ~ Y Il , ., ., ` /~ _ - / ~~~ /\ ;Y; i j :.~ / .. LR 'MFz~ i~ ~I ;~• ' r : - ~ , / ,: ~ ---~ i ' ~ • . MF-4 • ~ ~ 0 200 d Ic J".~~ fir' r .. / ~ ~ / LAND USE LEGEND I~v\ ~~r ~ \7 Sinpfe Femlly ~ ~ Multi Family ~ Commercial ~ Industrial 0 Publ~e 0 Park 0 Vacant LanO ~ ~ ---•~rY -: ~, ~_ .. r ~ Otllce i ~. ,~~_ appendix B 107 MAP 8 STUDv AREA 4 .. , ' ~ t.;F- LR. ~; . ~ . r'• -' . " - 'u ~ • .~ o ~. ~~ ! _ ~ 7 '" `' C. 1V % / " O '~•\ ~ /J ' \~ / /,' ~, O ~.. , / . ` . .' ,. ~. i~`~ '`ACS., "/ ~' e ~ ~ \..•~_ / l / \v ~ ~ • \` ~~ i ~ , .•~ LI -• •~ s ` \. \`~. ,r'' \ ~ \ 1 ~• ~~. • '.- ~ i';.~••`= ~~/' '•. ~~ri ~:' LAND USE LE(iENO - • /. :r -_ /~,r`_ ,~:-.... •~,c._~>~~, e 0 Sinpta Faintly ~S/ ~ _'• ~ lCC. .~ . ~- •~~ r-"_'_' MutU Family s~ / ~ CS/ °~° f •. • ~~ ~ :- ' Industrial r , / . / ~~ Park / / C~ Vacant Land zo ~ / ~ Adul! Buainasa i ~_ . 108 Time. Place. and Manner Regulation of Business Ac•riviry MAP 9 CONTROL AREA 4 . ~:~ i .. ~S`F 33 ~i•,' 1 ~•;, f- _ _ • . ~7r MF-3 ' ~. ~ , .. _.~~ •~. . . •~~: ; ~. .,- ,. . ~ ~~ i i' ~` ~ ~~ `` ~ . ,i ~~ CS •, ~C .~ . ~~~,..~. •CS - .~ .. ... '" / . ~T=~ I / 4~~., ~ :~ "~ `'MF-. .of:~,::~/off. "' f~•' ~ // ~%` f r i -. s ~ '. "~O G~ ~°i° •'~ .7.r O/ 'i ~ •. , ~' • ~ -~'•., ~~ ~~ ~ '~ LAND USE LEGEND ~ ~' '~ ~ ~ i.' '> _ ~J ~'• .i •ti,,Q.i. ~ ~ -~' i Single Fsmily 'j • ~' ~-'•` 1 Mulfl rSmtly ~_ ~.,.' :,.,~• ~ ~,:.• j ~ ~ ~ Commercial f • ...;. . ~:j .~I SF's. ~:, ~ .--i i ~' SLR\'" •~ ~ • . Industria- ~ auu ~~ s••i ~. i~ ~„~ ~ ~~~~~\ ~ Park ~ ~~ ., ~`` o zoo ' ' ~~ ~ Vacant Lsnd ~" appendix B 109 ;: ~:.iy ...Iai C,n,t.~~11 - ... arena ~t_aracreristi~s. «L1 uE the Study and Control _ ' ~ [hey all ace circular to i~iclicr:y sinu_arities. ,.~., .,:~,: .-z,,,,~inetl v e ~.n tll a ~ a 1000 foot r,eiins, a size of 72.12 acres, and have . ., . ~:nI :GC :.nni l,.t ion and iancl use characteristics. The polntlation ,i~„rnccer_sri~a of each area Here analyzed using hlock data from the •~~0 ':~:nsu; uE Prnnllation anti nnusina. The results are stmunarized in , ;, ,, ,i,lra anti n. Lali,l use ~~ilaracteristics are swanarized in ^ •r.,,,las ,, 8, 9 <,n,l l0. 1'ahlc 3 Area Population Characteristics Ethnicity Study Control :na1o G9.0 60.0 pluck 7.9 10.4 liisclanic 21.5 21.5 .. J~.hQC 0.[l 0.1 e:•~l' C.JIOfN7Sl tl r,'n ., t;ndzr 10 11.0 19.6 :e t~ 64 on.o 72.7 ~~ anti ovCr 9.0 7.5 e ~,lilflC Occupancy 17.5 25.5 Tahle a :aea Pe[•ulation Characteristics thr.:c:.y Study Control =ng1o 00.9 75.2 i 91ack 4.4 6.2 . Etisc:anic X3.5 18.0 ~t:ler 1.. 0.5 ;:ae Cancosition C:.rler 10 _4.0 30.0 a '_d to 64 62.5 71.2 c5 and over 1:.5 8.0 ~..ner Occupancy 3•t.' '_6. and Manner Regulation of Business Activity Place Time ,; 110 , . ~~.: 'f :.I+I r. ~i :~t~•A 1 [`rllnllnt ivn CI~nlnctn.I ir.[ira Sl:utiy Cnnllnl I.i lulicity Anulrr 17.7 SI.R nl.~~.k 1.'. L ,:.4 Iti::l:illit: ~~I. L •1 .fl CJtlu`t li.l ~ il~pe r: UIIIIA )SICLUII Under 1D '11).1 25.1 t lFi to 64 51.6 59.5 E5 and ovr.r 11.3 5.3 ',, Owner Ocal[>.-Incy 27.9 4D.9 'fah 1 r. 6 i~C^~ '! Cnnl.liation I'h~iract^ristic EUuiici[y Sluriy C~~ntlrJl Anuio R4.4 72.11 :: [11at:K :.~.~ ).J II1 .<~1'•1111C 1<..-I 1?. ~ OCher U.; :.~ Ul ld? C 19 il) , 1 ~ S , O 10 to 64 [u,,l U.5 t _ G5 and OVf!C 1 •l . ~ ~ . 7 OF'ller Occucancy 3©.'- 2.1.0 :aiJle % :area 1 Existill•i [.a1V:1 Use lin ac[esl SCuriv Cunt[nl single r-amily '14.1 L8.? Ault?-F<vnily ?.n 1.5 l i il.° 9.1 a ~:.Irsnecc 0 : 2 2 ~~Efice _ _ :nduscrlal ~ ~ 4 ;, Ibl i c .. ~! ^arkland - Q 7 a 1.6 ~acanc 3 3? 34.7 Roads . L .~ 111 Appendix B 'C,Jt1r. E) f 1 t .::mile l'imily II~,I Cr-Fanu ly •'• mua.cri;tl .q f,ia? I rt.lUSt! ld 1 PUiJ 1 1 L Parkland tiacant Pnads t:xi:;tiro) Lind Use (in acres) S tuciy 22.2 l.o 1.2 O.A 1.2 5.1 1D .0 Control 'Cable 9 Areas 3 Single Family ':niti-Family ~:t,mmercial ,,°i~e ;nriustrial :~+ti~i cr. Parkland ': ace,nt ::,;acis Fxistinn Land llse iin arms) 5 tucly 19.0 7 . '' .2 ,~,, 9.3 oQ.o 1, . ~ 24.0 4.7 23.3 2.n 17.5 Conttol 34.: 9.6 ~.o a.a D.~ a.2 9.4 112 Time. Place. and ,'Manner Regulation of Business rlctiviry Simile Family Flult i-Family Cemm~• c ci a 1 Off i• e *.n+iu•arial Public Parkland Vacant Roads •rable l0 t~~eas a F.xistina Rand use (in acres) S tuciy 25.1 1..3 26.6 1.1 1.6 15.4 Control 22.7 4.9 15.0 5.1 2.3 0.4 3.7 17.2 Results She crime rates calculated for ~~ch St+,cly and Control Area and Eor the city at large are indicated in fable 11. 'c'able 11 Average Ann+.,al Crime Rates (pet 1000 population) Part 1 Crime Rate Sex Related Crime Rate Stu::v urea 1 101.02 8.72 Control Area 1 320.65 2.17 Stuciv Area 2 552.54 13.56 Control Area 96.69 2.48 Study Area 3 128.59 a.97 Ccn:rol Area 3 64.60 2.37 Study Area 4 185.77' 7.91 Control Area 4 133.41 1.84 City of Austin 83.14 2.81 All Control Areas 132.23 2.21 ~PPendix B 113 i ~,> • ~:ralysis of Ta ble 11 reveals a definite d i pattern t concerning sex-re ate in Control Areas are ~:i,e,~ rates. cr mes Sex relate ra es -r,nsistently low, ranging from 65~ to 88~ of the city-wide average. t~l contrast, sex related crime Cates in the Study Areas are ;~,hstancially tiiyhec than the city-wide average, ranging from 177 to •782°s higher. •:1ie sex related crime rates for Study Areas 1 and 2, which each contain t.+o adult business sites, are higher ttun those in Study Areas 3 ani 4, which each contain one adult business site. Table 13 ,:unsoliciates the crime rates for Stndy Areas 1 and 2 and Study Areas 3 a,~d 4. 'this analysis indicates Lhat the sex related crime rate in areas having more than one adult business site is 66 percent higher than in areas having only one adult business site. Table 12 Combined Average Annual Crime Rates d Crime Rate l R t S .- e ex e a Part I Crime Rate Study Areas 1 s 2 281.42 10.02 Control Areas 1 s 2 193.43 2.35 Study Areas 3 s 4 159.70 6.02 Control areas 3 s 4 97.44 2.21 Real °_state impacts i - h:ethodolooY. In an effort to assess the impacts of adult entertainment businesses on property values in Austin, a survey of the opinions of real estate professionals was conaucted. A three-part questionnaire was designed to gauge the opinion of teal estate arpraisers and lenders in the Austin area regarding the effect that an adult entertainment business would tuve on surrounding property values. ~ e adult The Eirst part asked respondents to indicate the effect of o tookstore on residential and commercial properties located within one block and three blocks of the bookstore. The second part of the survey asked respondents to auage the effect on residential property values within one block for a variety of commercial uses other than an adult bookstore. The third part of the survey asked questions designed tp estimate the degree to which property values are affected l;y adult businesses,. and to establish the basis for the appraisers' opinions. A sample questionnaire is included in Appendix D. Results. The cuestionnaire was mailed to 120 firms listed in the Southwestern 9e 11 yellow Paoes under "real estate appraisers" and "real estate lenders". The Office of Land Development Services received 54 responses; a response rate of 45 percent. The responses to the questionnaire concerning the effect of adult businesses on property values are tabulated in Table 13. Table 14 swWOarizes the results of the questionnaire regarding the effect of other commercial uses on property values. 114 Time. Place, and Manner Regulation of Business Activity ;. .„ . Table 13 ?he Effect of Adult businesses on Property Values in nustin, Texas Decrease Decrease Decrease __ _ _ Nu Chanue 1 to 107 10 to 207 207 or more Residential Property One Block Radius 127 317 267 31t Conmercial Property One Block Radius 317 307 337 67 Residential Property 't'hree Block Radius 41$ 28t 267 5$ Commercial Property 1'irree Block Radius 597 307 97 2$ T1ie tabulated responses ire Table 13 indicate that a substantial majority (887) of arose surveyed felt that an adult boot. store would have a negative effect on residential property located within one block. Of these, 31 percent felt t)~at value would decrease by more than 20 percent. A majority (69's) felt that the value of commercial property within one block of the bookstore site would ire negatively affected. Only 6 percent felt, I~owever, that the decline in value would be greater than 20 percent. when the distance from the adult bookstore is increased, the negative impact on property values appears to be less severe. while a majority of respondents (59°s) indicated that residential property located three blocks from the bookstore would decline in value, only 5 percent felt the decline would be urea ter than 20 percrlnt and over 4U percent felt that there would be no ehanoe in value at this distance. :tie majority of respondents (59$) felt that there would be no chance in value of commercial property located three blocks from tyre adult bookstore site. appendix B 115 i Table 14 The Effect of Ccmmercial Businesses on residential ?ropeccy values in Austin, Texas t tlnrh Somewhat About Somewhat Much tlinher [linker Tl:e Same Lower Lower il~llch 2°c 167 58t 247 -- f Puol hall ~ 2G 397 45t 147 welfare Office 47 36t 45i 151 Neighborhood Tavern 97 38t 34t 21t Record Store - 26t 617 11t 2°s taedical Office 18t 36t 41t 63 Branch Library 217 407 337 67 - Drug Rehabilitation - 2$ 227 48t 287 Ice Cream Parlor 67 427 467 6i video Game Parlor - 16t 537 3I7 - Allul[ video Arcade -- 47 277 28i 42t •~opless Bar __ __ 197 237 587 t•tassage Parlor 197 237 587 ~atult Theater -- -- 237 217 56t The survey also asked respondents to indicate the effect on :e.;idential property values if the site was used for something other roan an adult bookstore. As indicated in Table 14, the majority felt :I:at property values would be higher if the site were used as a aedical office oc branch library. 'T'hey indicated that residential -:~onerty values would be reduced if the site was used as a cool hall, _:~v?rn, welfare office, drug rehabilitation center, or another type of aJul[ entertainment business. •=gusts of Prooecty value Ikcline. The real estate professionals were asked to describe the effect of adult tnsinesses on property values in reneral and the basis for theft opinions. These questions ate Important because they help establish why property values are affected i.y adult businesses. ': he respondents based their opinions on several factors. They noted that the type of clientele attracted by adult businesses create concerns among families with children. Several noted that residential troperties in close proximity to adult business sites are no longer suitable as homes for families with children. This eliminates a large coition of the market, lowering demand, which in turn decreases the :,>arket value of the pranerty. IC was also noted that the existence of adult business facilities leads mortgage underwriters to believe that :he general neighborhood is in decline. Therefore, they would be less •.:illing to make 90 to 959 financing available for these properties. 116 Time. Place, and !14anner Regulation of Business Activity ~ ;,.~, ra: respender.ts indicated [hat "pride ciE o•.mcrship" has an imc~,rtant influence on property vairres. when families are encr~uraged to °nave a residential area or discouraged Erom locating in a pa~tic:ular area due to the existence of an adult business naarby, a from a family-oriented, owner-occupied neiohborhoad to a i i on t trans renter-occupied neiytrL•orhood may result. This trend transient , more is reinforced by the reluctance of real estate lenders to make 90 to the area i . n 958 financing available for residential properties with regard to the eEfert on commercial properties, respondents commented that commercial property values were neyatively impacted but to a lesser degree than residential properties. It was also noted that the impact of a single adult entertainment business would be less severe than the impact resulting from a concentration of businesses. f businesses l es o Other comments indicated a negative impact on the sa engaged in neighborhood trade. One respondent commented that adult entertainment businesses tend to drive out residential or commercial uses. Those resmndents who indicated little or no change in property values cited several ceasoris for their opinions. Several commented that adult businesses locate in areas where property values are already in w ld i ou es decline. One comment noted that commercial propert experience very little effect because most commercial properties are tated that there d ent s encumbered by long term leases. Another respon is no market evidence that values will change. In summary, most appraisers and lenders believe that adult ~s s values will contribute to a decrease in surrounding property particularly residential properties within a one block radius. The appraisers opinions will affect property values because their lending and appraisal policies will, to some extent, determine property value. C. TRADE ARFA CFUIRACTERISTICS The use of zoning authority to regulate f~he locations of adult businesses implies that these businesses wily be limited to certain coning districts. In order to make appropriate recomriendations for assignment of these businesses to specific zoning districts, an understanding of theiz trade area characteristics is important. specifically, it is useful to know if a substantial portion pf the adult businesses clientele is drawn :rpm the immediate neighborhood or from a larger regional area. nechadoloay In order to establish the extent of an adult business trade area, a method of determining the location of customer residences must be employed. The method selected for this evaluation was the observation of vehicle license numbers. It was assumed that addresses listed on the vehicle revistration reflected the location of the customers residence. .~ appcnuix B 11; / ! I I i • I t<t ~'< r.'. :~~.-`.~Y•~•'~(/J :C'~l \L•~.,iat~/_4TA 1:`~-I ~~. ~ ~ ~ :_ ~t ..+~.`'('~C'j`/ l ry ~/ \/ ` r :S"rti:i •~- /'>•'I~.tv lam, . I i -• I I ~1. i ~.~, ~ - ! .. .•l ~.:;-:/-J _a•.,. 999 ~t ,~',/•Ic. -~" I 4 l)r ~t pt>.n /F r tom. x'1.1 G.~ r ,7y. ( ~C„". _ _ ~ '_~_ ~~ r•., ~,. -r .~~ •,• fir. '(: it I i'I. ' ~ ly \ /!~ JJ••l {r./ ~_ JY 1 ~ ~`=F~•+ 1 ~ -: ~r',• `:,4~y rv_ , "~f,'u,`r~ f~`•'t.°.a~' .-z ., ~/,c,.,; f• { \~~ r`~I 1'. d • 'j \ l~)rl`I•.~t~~•:i !: ~ 1) V. '~ 1 ,'V}I. ~ / 1' ~~\'+. ~')'•1 ~1 r.• Vii'" ~//~~,.~ ~i 1 J' . ~ I ^r y~(; i 'F~;~ ~. ~•+~ rY`l: Ii /..; / S`.. ~t ~,,~_/.a t. c~ ti• '~,T`} ~:_%, ~ \~•"~ ~ ~ l Kl~-w T ~~ -- ;r'h~ j~~%{%~ i ~%T ~~ t*G° ~t:~.~_` t9}1~c~ ~ @l ~. ~.; • ~i~ •^ 111 .. f /~/.- ' Sri `/;.., r ~~J `J ~ c ~`~ ~'~%a,,7~,'., ~:t/Yt/ n ~,~~. ~•.:., f~~~'~.. l ! ~ l ~~ ~ .~'./\\\ ' +°-'~:w.~.\ A ~i~a w''~ b^/\aJ,J,71 it .'.!.~ fiJ• 7:~,j ~6'~i. i+t'r~~' CE• `\ t' ~ ~~`'1. `(_. y f _~_.:r.; ,~~~'7^!~/,~~1[!l~'j.. N.ft~~,:~yht,'+}~_A_G(A(7~,,.~ t~ .~`~ ../ ~t % ,, j Ur _ ~~i~ ~'~ilS~'~yt'•`~y'. IJ./ 'r,~l,ti~,) / r \ ^ ~tr. lgi :/ _ r••i i.1 `•.lll ~ ~ ~. ~r ~ti tV • sri~~ t~11t'I!}1'l~• •~"l Lll~lt~ ~.t.t~ r ~ r .... ~;y1.t~r~ ~ ~~.(+~ ~ i`~ ~ ~.'• `~.l/C~~l: ail `[~ 1:1~.:::=~ ~{i i`~Z1[.~!'PI ~ii•?<.~•Y.1.~CYrt.~...`' /.~~_-_ ~ J .ll.ii .Nl, ~!/~~ t w ~~ \:a` r`F~y.:~y~~~~ii/l~ty..lti ~. .s ~' ~ l ,S µ ~. I, I ~/~ t~~ ~..1 ~li~/ wC ~ ~ 7~ ry u~/_?/T~`.tiai~ ~ A i:!' + t^!~L~a~ ~~ ( 1~ y^' .t.^/ `. '\ ~V~ L tI~ I i c l l.I'n~Zii ,F'•U ~ l_~. ( l -c s:: Jt^T"T~.lw i{.S. `( _ ~ (1. t~l•1/1f~ ~ ~Jr ~:~~~`(•. 1 .%~i~iP~ . ,. , ~1 ?pC i !l.!•...=H'~jF~{`"~ ,;~.{.-.:,r~~YSt ~~~. 'L1L1PI~Eii~^:lit 17f~ ~ /...; . ~ / _ f 'f•'J~yr.~~~'~~~~4. ~11.~~i'.; /,~.t t.t~'~l'4'~"S(~l,F\rrr ~'1171I1./~l~i- :.1 ~\../~ ]i -~ .r ~ 1.~•p~VI {•w+1~3i 1V/~'~Y~,A1~~:1.w:MiT r ~ ' If~•` ~~ _ • _: ~ ....:: rya.. \ ~ •i t.::x_v' _ ~1( .e-. / .`l~J~.I~I~/t ~ . !i t \ lic 1 ~ ~\~~~r/.1F~~/ ~'~~~J^~.1.~•~, 1, rVlr1P ~~ f'v 1"• / ~ ~ ,:`„ ••• ;.i„`.1/, - ;~.;.;!/,^J'• '~. Adlit Buskrw Trads ,Vea r 'y •~ ~~ ~.G: :~~, f(/1,j2_~,,. ~,`y(~yy~_~• ,~f'~' s 9outnalaa fNVra 2059 So. lunar BIvE. - J 7v,.: ..~ /.?~a~;-::,! ~'r-`.. /`~; ''f . Au,ln Ar.. 9usn•., P.tron ~'" ?.,` •• 1 ~ ~a.~; ^t~ •t , a a-••~r '.1-. ~~r ,` Out of Town BusMan Patrons `~` ~ 1 s ! -! rM9,le CL!/ryil~.i'. ~~ ~~~ ,~~'~ • erns. t2 - r!/`„ ~` i~+ V1 .\ }: L_ , a lu[{n al lw. II V,~ o'_i`1~e. w. ~ '~ .;,fit • ss tur[w. a :may-?~l~~I ~~ (~c~.(~•_j~. -~'•,::. • L[/. n - i~ / • I / } f1~9 ~: ~171~~ ~+ / / r~f~ I I I t T-Z ~I^ '•1 ~• TTT -~• • r t ~ ~ (... 118 Time. Place, snd Manner Regulation of Business Activiry _ `gas ; ;. ;~,!~ -,, K;, .:.r.: .: ~.. ~._ R_l~/ J ~~ I I i I I ~ ~ I II / ~t't: rr ,t/ ~ II 1 \ ~I -/S ~ ~ 1 _~ ~ I I~y. i ~' ~ ~ ~ el/+ pi ~~~ ~;~~ f err F'C 1 t ^ lj: I I: - ~ 4 _ _jc _. r1., ~. lC ~ i i . ti;; ~I I ill 11~;~.•± J t- , ~' tr .' 1 ~ • ;r.' /• _I/ I - 1 -_s.;'..' - ~ .R :cal' !~. r`~~~% _•. ! ~I I I _.~i'I I~ I / \h.~\~w-. __ .. ~ .S•.'L~. "it. .~".~ Y '~T~ ~) %` i ,,,,; ;~,~y11-2~- ~ I ~, ~ ~"' 1i >~ __ i %i Ire Y.;,~.j"5I I ~ i l . ~ ~~"~' ~'i /irk ~ . I ~ -~ ~~ JJ I 1 C~>J~~1 ~/ _ 4~ ,~~-~ ~ =; •.;+.:Y' is ' `~.t .:':+h'~ ~ ~ pr=: • j' ,:, - ^;.. ~~, -,:,.. ~~,, ..5 it-a -.;,'~, ~.[ t ~: .I ~.. ,:. G t 9T /.. ~.Y JI ~~ ~ ~ i f ~kby F I "•7 ~ N Cr.~ (~~ ' I ~ ,' 1 ~'/ w ll / ./- Z ~ r ~ n •: ~'~~^~ ~ / . ti. ~f ~!~ Y~ ~ ~ l ~ -t:r T I ~+- ~`~ LYr ONONESS ~ X ~ ClEMA MVEST 210 SOUiH . ~' a AwtM Any SuUt»~~ PUten ~ ~ ~ Out Ot Tewn Bu4rr~~ Pttterr i L• ~ }.~.^ • See Meieee, h. to 4etiq• h. ~. ` I ~~ S Y S I ~` ee tenle. 3. AlJeeee Ni. h. • ~ ~ M wec ew. h . ~~.I ~ / T~ ~ / ~ ~'S / C~.I ~ I 11/ ~ I 1 T ,~ ~_ Appendix B 119 ^.~i_ ~ \ r ~ ~ -~ t, :r 11 lt~•. ~yG:U f'~: ''/ hl.{'~C.v '-. %~ : .t ' ~ 7ri~Y,"'::~,::r t~ ~.`.-)~i;n ~~./1ri~ •1~::.-~~~~~~'.Lsl•i~ 1/T'y Fl`-..I I i -f "~ ~ ~ "ti • ,('/ •~'~/.`~ih. /t~ u.0.: ,~.. i l ~ 1'~ ~~ I i _ ~ Jc __ .r~- _,- I .`_'t~ ..~Citr<1• ^_ .r...i:~f.~/,.~•:a •'4!r ~ rte. rwr;~~ J!11,:` ~i:_ .:{: - - I~ _ 1 r` it ~:.1 `-. ~~,,. Il.i{ tp~~~ls/4 • ~f/- •: ~~ir.+J~ ( / _i ~''~L~r I .. r ,' l 1 I `\ ~ ! ! ~ tv . r ~ IJ , tom.: ! i, cam' t ~.. ~ r ~~ . ~ R' rt ! ~~- ! r2. j `i r „ j ~-• '~ ` .~ it'Q ~I;~w~J • LF~~ , ~j.. ,_ -rfj}~.r `! . _•r~~ I ~ ( 't.;~~' rid rl:' r.~ ~1- 't C •r`i J ~!~ [~ ~l T ~ }! '~' ~~. ' ~ -,~ }.. ~. 1 nl ; r .. .t_ ',`fir :ill ~ ~{^ ~~.~ ~1 f.zf '' ' / ~ / rot 4:• f~ / !ir ~ -, rrtiy, ..,~ .f~ ~...~ l~ ' ,' .' ~~t: ~~'' j~/ i ' •~~-. a:: ~r t4~~ "~' ' . Mme:, /!Q ~ s~:. h'• ~yl ~.i., ~ /,;= ~ !! ~~ ~ -I l2S.r ~~ ~..iP N y~~R'Y/ i /~,J~j' ~!~ ~': \~ ~~•(.v.`L~ ~ 1 % ~'f. = j ~ `•; \/ i ~L•«.i.~ ~..r ::(.7M.. hf-.fir'.fi(. r ! 'I r.. o(T . I:~~ ~~ ~ ., .~~~-~-/T/--r~',I •~~:.: . ~ ! rJ/'„~_y•y~rL~4' `'.:. ~~7"„!.r /'.~_' •if1 . ~ ss ,~,• [• , ' / _f_ 1 L„~---~s+ ./'~ ~~,:'G7 ~•L' t .~ 1" r -~Z~Lk•i' , ~ . ~r'2 ~ ~1 _ _ir`"'"3~i+-~ t 1~~~4-\r. II'_\f•,`L~~n`.•rr~G~~ •t~ i1i F'9 \~~~ICS,~• rt ~ il ' ~ . i ~, ~ ~ ~, =ice `""' !~ . w[, ~ ~' ~ ';1\y tom. ~'~~ l~Sn_ G ~'Y~SS, ..(~(1 ~ `~ ~' ~-. Vfxyv rt l ~~ ~t'31 ~; ~•~'h'~~ ~[~'~~~u't^ ~i i .r,t {SI. .rt fr'7+r "1 ~ ~('.'t1r~ ~`: IF ~~ ~ U~~~'~"`'1~~ .. ~ ' ,:: -ri^!~si~i'-~yJl~ int. ily. ~ir-~.R ~/ ~~_.~,/~~ I r t.~~'~'~~l'~al_b.~ RI ,ref ~~l. =/ ,. r~ ~`n ~ v ~ " - ~C ~( j ~ ~' i:. if..:3 fir:./ :~~Y= _/:Li ..-:,7-vi! ~ _ •A R . ~' [,°;{~ y,~•a!~ !- ,~, ~ .I ~ YELLOW R09E E32E NO. LAMAR - •~ .:~ `~~~' ~~ II %r(i'1.~~ i~ f7.r ~k :I~~~.T~I ~/.r,~ • Au~tn Any BusYru Pttron •__: r ~^- a~• I '+ / F~tr ~I`~f'~T'~/yL/ Out Of To.N, Butmat P~troet s."'c • „`i.:i -G. L t a ~vi.~/:~~a/1j'~~! .~~~ ~ M •Ww. Ts. •Nl[w. 7s. /_- '~ r C.1/i 4LJ •fr!•MMM. h• ' ~'.) ~"/i/' ';"'~~- `. y~~C:.1r_I. ~ \ . •~ •Nrn.n. :i. •c•rr•. carL.u. -:. ~ `~~r.Jr•~'"~ ri ~' "/ %~ •Mitfl•n., h. •f[. srcwr, ii. 1, fM' r u.. ice. • h• ~ •W1Uh h. •C•rl•rr. h. / ~ ` ~~ _!f •tir~lnttN. h. •RLt•Ngi. -.. -- I /~ !r / ,~~ •Wir dirt. Ss. •Nw[w. Si. ~~ I } •I.iN[L) Nill. h• ~uytiV •tKt. h. I •Otli. h. ~ ~ ~ / / . ` ~I '~ I ~ ~~ ~ •N1r[TN rslI. A • al va•. Ih/. C_ rw 120 Time. Place. and Manner Regulation of Business ACtiviry Three adult business sites were examined; an adult theater, an adult bookstore, and a tcpiess bar. 7ue co study constraints, observation of these sites was limited to a sincle weekend night. It is believed, however, that the results of this examination reflect a reasonably accurate representation of the trade area of each business. Results The general location of customer residences was plotted on a map along with the location of the observed adult business. Addresses located listed on the area or not found on the map ace i n outside of Che Aust and 12 illustrate the residences of observed 11 s 10 , , map legend. nap ith respect to the adult business surveyed. customers w These_ maps indicate that the locatioCticv aclo~in ltheacase ofethe pa Y Cit h y, e distributed throughout t of the three businesses observed appear topless club, (Map 121. None t a significant number of customers £rom the immediate _ hi n to attrac neighborhood. Of the 81 observations made only 3 were located wit ted that all b e no a one mile radius of the adult business. It should died had singlrfamily-residential t u of the adult businesses s neighborhoods in the immediate vicinity. ' Alnost half (44 percent) of the observed customers resided outside of each of the f i or s the City of Austin. Table 15 summarizes this analys adult businesses. Table 15 Residence of Cbserved Customers r H a Adult :'heater Adult 9ookstore Topless 6 4 34 Within Austin ~~~ Outside of Austin 6 7 23 Total 14 11 57 ,~ r +lppendix B I21 CHAPTER IV CC.ir'CLUS IONS A. CRIME AATrS The results of this study indicate that there can be sianificanc detrimental impacts on neighborhoods located near adult businesses. An analysis of sex-related crime rates in areas with adult businesses !Study Areas) revealed races approximately two to five times higher than city-wide averages. Control Areas, which contain no adult businesses but have similar locations and land uses as the Study Areas, were found to have sex related crime rates approximately the same as city-wide rates. Moreover, sex-related crime rates in Study Areas with more than one adult business were found to be 661 higher than Study Areas with one adult business. H. PROPERTY VALUES ~. The results of the assessment of the impact of adult businesses on property values suggests that there may be a severe decline in residential property values located within one block of an adult business site. There is an indication, based on the subjective opinions of real estate appraisers and lenders, that the introduction of an adult business into an area adjacent to family-oriented, owner- occ.:~ied residential neighborhoods may precipitate a transition to a more transient, renter-occupied neiahbothood. The results of the survey o: appraisers and lenders closely parallels the results of a similar survey conducted in Los Angeles, California and nationwide sur•+eys conducted by the Division of Planning in Indianapolis, *_ndiana. C. TRADE AREA CRARACi^EFiISTICS The analysis of the trade area characteristics of the adult business sites indicates that these businesses draw a substantial portion of their clientele from outside the immediate area in which they are located, and a sizable percentage of their clientele appear to reside outside the Austin area. rrom a land use standpoint, these businesses exhibit characteristics similar to other regionally oriented ccamercial service businesses. ~" D. AECQ`47ENDATICNS ~I Zone Distr:cs The analysis of the trade area characteristics of adult businesses revealed that they tended to attract a regional rather than local clientle. This finding suggests that such uses should be restricted to regionally oriented coaaaerc:al zone districts. These•districts are ~15ud11V located along heavily traveled streets such as arterials and interstate highways, and are not normally near single-family neianbothoods. Commercial zone districts that are designed for a regional orientation include CHD, DMU, CH, CS and CS-1 and to a lesser extent, the GA, L, MI, and LI zone districts. i~ 122 Time. Place. and Manner Regulation of Business Activity ~ Ttte assigrunent of proper zone districts must also consider the type of (including ses i , nes adL:t business. Adult Entertainment Bus t a form of free speech bu~.~stores, theaters, and film scores! represen the First Amendment. Regulation of these uses d b y which is pratecee must not unduly restrict freedcm of speech. Adult Service Businesses, such as massage parlors and modeling studios, are not. as sensitive to First Amendment issues. Adult Entertainment Businesses are recommended in the GR, L, CBD, DMU, CS-1, CH, MI, and LI zone districts and Adult Service Business are CS , recommended in the L, CBD, DMU, C5, CS-1, and CH zone districts. Conditional Use Permits The conditional use permit process offers a viable method of regulating adult businesses by providing an extra degree of review, needed to address the potential impacts adult businesses genecate to surrounding neighborhoods. Unlike traditional zone district regulations, conditional use permits require site plan review, thus affording additional analysis and control. Austin's current zoning ordinance prohibits adult businesses frat¢ locating within 1000 loot of any property zoned or used as residential. This provision led to the invalidation of the ordinance in the suit initiated by Taurus Enterprises because it was found that ted within l oca almost all commercially zoned property is, in fact, This is particularily true in t y. 1000 feet of residential prcper older areas of the City where narrow strip commercial development is liminated flanked by residential use. This restriction should be e hould be i on s frcm the ordinance and the issue of neighborhood protect addzessed via the conditional use permit. Conditional use permits are recommended in the GA, L, DMU, MI, and LI nd for Adult zoning districts for Adult ~tertainment businesses a CS and CS-1 DMU L th d i d , , e n e Service businesses they are recommen of these recommendations. _ zone districts. See Table 16 for a summary :'able 16 Zoning Suimnary GcZ L C3D DMU CS CS-1 CH MI LI Adult Entertainment Businesses C C P C P P P C C Adult Service Businesses C P C C C P C - Conditional Use ? - 2ermitted Use Appendix B 12~ Discersion of Adult Businesses The analysis of sex-related crime rates revealed that when more than one business was located in a study area, the crime rate was 668 higher. In order to address this potential problem, the regulation of adult businesses should prohibit their concentration. Presently, the ordinance requires a 1,000 foot (about three city blocks) separation between adult businesses. This requitement should be continued. E. POTFN'PIAL LOCATIONS Il ~J +~ The available use district mans were examined to identify potential locations where new adult entertanment business would be permitted to establish. Although the available maaps do not provide full coverage of the city, the most heavily urbanized sections of the city we;e examined. The analysis found 4534 parcels of land of various sizes where an adult entertainment business would be permitted as a use by right under the current zoning assigned to these parcels. Adult entertainment businesses would be allowed as a conditional use on an additional 3328 parcels. These locations are located throughout the city and offer extensive sites for the establishment of new adult entertainment business. Permitted locations were found on approximately 110 use district maps, which comprise well over 908 of all maps examined. The maps will be retained on file in the Office of Land Development Services, 301 West Second Street, Austin, Texas 18767. F. CCNCLUSICNS *_mplementation of the above recommended regulations will assure protection of First Amendment rights, and will also allow adult oriented business to operate without adversely affecting the pcoperty values and crime rates in surrounding neighborhoods. 124 Time. Place, and Manner Re~ularion of Business ~.ctivity Appendix A t,n.~~ysis of Adult Business SCUdies in Indianapolis, Indiana and Los Mueles, California. A. INDIANAPOLIS, INDLADIA In =ebruary, 1984, the Division of Planning in Indianapolis published a report entitled Adult Entertainment Businesses in Indianapolis: An Analvs` is. This report contained the results of an evaluation of the imuacc of adult business upon the surrounding area in terms of crime rates and real estate values. incidence of Crime Methodology. The Indianapolis study assessed the impact of adult s ix are hi a ng s entertainment businesses on crime rates by researc dult containing adult businesses and six similar areas containing no a selected from among the forty businesses. The six Study Areas were lect the Study d to se three adult business locations. The criteria use of Areas were their zoning mix, population size, and the relative age lt businesses) d u their housing stock. The Control Areas (having no a location to the Study t i ma e wece chosen on the basis of their prox terms of population size and zoning mix. i i n ty Areas and theit similar ccnsisted primarily of residential zoning, t + ( o , Of the six Stuay Areas, consisted primarily of commercial zoning, and two contained a mix t wo f both residential and commercial zoning. All Study and Control o Areas were circular in shape with a 1000 foot radius. The Indianapolis stogy evaiuted crimes in the Study and Control Areas d all reported il d e y comp for the years 1978 throuoh -982. The stu were assembled d t a a incidents to which police were dispatched. These nd Sex-Related "rimes. Major Crimes i ses a ?ntp two groups: Major Cr Robbery, Aggravated Assault, Ra id ce. e. included Criminal Homic Residence and Non-Residence 3urglary, larceny, and vehicle Theft. e Conduct , Sex-3elated Crimes included Race, indecent Eeoosure, 0 scen Child Molestation, Adult Molestaticn, and Commercial Se~. The evaluation 'cczd that ror toch the Study and Contrel Results . the rate of sajor cr:azs was higher than the corresponding rate Areas, pr :lie Indianapolis Police Di<_t:ict as a whole. The average annual ` than h _ er race for major crimes in t`e Study Areas was 23 percent hig of the rates i son the corresponding rate :n the Ccnt:ol Areas. Compac d a considerably larger difference fer sex-related crimes indicate between the Study and Cont:ci Areas. The average annual rate fcr rcent higher than the 77 pe ex-related crimes in the Study Area was s corresponding rate in the Cont:ci Area. The study also found a strong i:aracter l c rrelation between the c:i'ne '-:equency and t':e residentia co oz :he Study areas. -.r..e :aces were redo nantlt cogim~ercial p y n ^ areas t..a predc:ninantly residential cFe nce regarding sex-celated r te di _ ___ areas. The study found a sore acu crimes. Sex-related crimes ocesrred four times more frequently in substantially predominantly residential areas than in areas that were commercial in nature. i. E! Appendie B 1~~ F-•~ 1 t a i } :~~al Estate ?mnacts •'ethpdolcgv. The Indianapolis report also evaluated the impact of ,dult tusinesses on property values. The report approached the ;:valuation from two perspectives. The first approach compared the residential property appreciation rates of the Study Areas to those of the Control Areas and to a larger geographical area that included the Study and Control Areas. The second approach surveyed professional real estate appraisers to establish a "best professional opinion" regarding the market effect of adult businesses on surrounding land values. The first part of the evaluation examined three sources in the assessment of residential property appreciation. These sources were: the Indianapolis Residential ,yultiole Listing Summaries of the Metropolitan Indianapolis Board of Realtors; 1980 Census Data; and the annual lending institution statements required by the Federal Home Mortgage Disclosure Act. The second part of the evaluation solicited the opinions of members of the American Institute of Real Estate Appraisers (AIREA). The survey sample was drawn at two levels. A ~0 percent random sample of AIREA members from across the nation Mras constructed. A 100 percent sample of professional appraisers with the MAI (Member Appraisal Institute) designation, who practiced in the 22 Metropolitan Statistical Areas similar in size to Indianapolis, was compiled. The survey questionnaire was formulated to solicit information concerning theocatedt withdnltobustoethtee blocksdoftthe and commercial property business site. Results. The report adopted the following conclusions regarding the appreciation of residential properties. First, residential properties within the Study Areas appreciated at only one-half the race oz the Control areas and one-third the rate of Centez Township (representing .::e cPrformance of the market at a broader scale). Second, while residential listing activity declined 52 percent in the Control areas and d0 cercent in Center Township, in the Study Area listings increased 44percent. The report found that "twice the expected number of houses were placed on the market at substantially lower prices than orould re expected had the Study Area real estate market_periormed typically for the period of time in question". The tabulated results of the processional appraiser survey are den_icted in Table 1. From these results, the report concluded that: l~ ~ctaron residentialf and colmmerciallpronertyhvalues withintone block of an adult bookstore. Z. The negative impact decreased markedly with distance from the adult rockstore. At a distance of three blocks the negative impact was judged by a~raisers to be less than half that when compared to a distance of one block. it `.. 126 Time. Place. and Manner Regularion of Business Activity 3. "'he majority felt that the negative impact eras greater for residential properties than for commercial properties. Table I effect of Adult 9usinesses on Property Values in Indianapolis, Indiana Decrease Decrease Decrease No change Increase Increase 203 or 10 to 1 to 1 to 10 to more 203 101 103 203 Residentia Property One Block Radius 203 National 3 21 24.5 34.1 20.1 0.0. 0.0 Survey . 1003 MSA. 0 19 25.4 33.6 21.1 0.9 0.0 -' Survey . Commercial Property One Block Radius Z03 National Survey 10.0 19.3 42.6 28.1 0.0 0.0 1001 MLSA Survey 9.5 20.3 39.9 Z9.9 0.9 0.4 Residential Property :'hree Block Radius 203 National 1.6 9 3 25.4 63.3 0.4 0.0 Survey 1003 MSA Survey 2.6 7.8 28.9 60.3 0.4 0.0 Commercial Property Three Block Radius 203 National Survey 0.8 5.2 16.5 76.6 0.8 0.0 1003 ltSA Survey 2.2 3.9 16.8 75.9 1.3 0.0 ~ 127 ~ :appendix B ~I ..:.. ••"•.e Indianapolis appraiser survey included a question designed to help ree to which de h g e eseahlish the basis for their cninions regarding t Almost 90 percent ral n i . n ge e .~iu1t businesses affect property values oc those responding to the survey provided responses to this question. no effect on 29 percent saw little or rve l y, su In the nationa values resulting from adult businesses. They surrounding property a basis their professicrwl experience; the observation that d d as liste enerally occurs in already deteriorated neighborhoods; an se ld be g this u that the effect of only one adult business wou i ng rte feel inconsequential. f the respondents projected e l ~s ~ One half o were es respons Their alues act on surrounding property im " p negative to the feeling: that adult businesses attract "undesirables based on hborhood; that adult businesses create a bad image of the nei h it g e y t and that this type of use offends the prevailing coinmin i ng area; attitudes thus discouraging homebuyers and customers from frequent f the respondents indicated that the the area. Twenty percent o n surrounding property values was contingent,on potential impact o felt the impact would be contingent on the other variables. Many existing property values in the area and the subjective value of area ntrolling facade d s co felt that development standar S ome residents. would determine the degree of impact, while others and signage d that the nature of the existing commercial area and its indicate buffering capacity as the most important factor influencing the impact on surrounding property values. The ;'!SA survey results closely paralleled those of the national some First h , y. Two additidnal responses are notewort sed b survey. a ondents indicating a substantial to moderate negative impact cline and res d p e their opinion on the feeling that such uses precipitate in the area. Second, some respondents felt disccuraae improvements act on property values was contingent on whether or not it i mp tnat the that other adult businesses would be attracted to the area. :ikel y was B. LAS ANGELES, CFIL~FOANIA :n June, 1977 the Department cf City Planning of the City of Los d Studv of the Effects of the l i e t ;,ngeies published a report ent Establishments in the City of Los Concentration of Adult Entertainment evaluation of the impact or arnu t Pnoeies. The study inciuaes an th crime rates and procerty values. b o businesses on Ireidence of Crime Methodolow. The City's study ccvmoaranadcrime ralt~escin Hollywood businesses on criminal activity by to crime rates for the city. eollywood was selected as a study area :ecause of its high concentration of adult businesses. The study focused on the years 1969 to 1975, during which time adult businesses in Hollywood proliferated from 11 to 8B establishments. -. 1?g 1'imc. Place. and :Manner Rcgulacion of Business Acciviry ,' pP~:,1ts. The City's study monitored trends in Part 1 crimes. Part 1 ..:::.es include hcnicide, :ape, aggravated assaul!, robbery, burglary, :a~~^ny, and vehicle theft. The number of reported incidents of Pazt rimes in the Hollywood area increased 7.6 percent from 1969 to 197. This was nearly double the citywide average increase of 4.2 ~:e~~ent for the same time period. This report also monitored Part Z crimes committed against a person (as ecposed to those conanitted against property! and found that they increased at a higher than average rate in the Hollywood Area. Street robberies and purse snatchings, where in the victims were directly accosted by their assailant, increased by 93.7 percent and 51.4 percent, respectively; compared to the city wide average increase of 25.6 percent and 36.8 percent. The increase in arrests far Part II crimes indicated an alarming differential between the Hollywood area and the city as a whole. Arrests for these crimes increased 45.5 percent in the Hollywood area but only 3.4 percent city wide. Prostitution arrests in the Hollywood area increased at a rate 15 times greater than the city average. While the city showed a 24.5 percent increase, prostitution arrests in Hollywood increased 372.3 percent. In 1969, arrests for prostitution in the Hollywood area accounted for only 15 percent of the city total; however, by 1975 they accounted for over 57 percent of the total. In the Hollywood area pandering arrests increased by 475 percent, which was 3 1l2 times greater than the city wide average. In 1969 pandering arrests in the Hollywood area accounted far 19 percent of the city total. 9y 1975, the share had increased to 46.9 percent. The Los Aneeles Police Department increased their deployment of police personnel at a substantially higher rate in the Hollywood area in response to the surce is crime. The report emphasized that sexually-oriented business either contributed to or were directly responsible for the crime problems in the Hollywood area. Real Estate ?moacts , yRthodology. The study prepared by the City of Los Angeles utilized a tiro point approach in evaluating the icioact of adult businesses on surrounding property values. The primary approach sought to establish the impact on property values by monitoring changes in assessed value from 1970 to 1976 for selected areas having ccncentratians of aault businesses and for approoriace control areas. The report selected five study areas centainina 4 to 12 adult entertainment businesses. Three study areas were in Hollywood and the other two were in the San Fernando Valley. Four control areas, having no adult businesses were selected. The study examined property assessment data, U.S. census aata, and other pertinent information to determine the rate of appreciation over the six year study period. The rates for the Study Areas were compared to the rates for the Control areas to gauge the impact of adult businesses on property values. a Appendix B ;" ,. ~ ~ ^,'!:r second approach of the study used survey ouestionnaires to su,:•~ctively establish the impact of adult businesses on surrounding c,•,,:~ientiai and commercial properties. Two questionnaires were pc,.;•ared. The first questionnaire was distributed to all members of tl:~~ American Institute of P.ea1 estate Appraisers having a Los Anoeles address and to members cf the Cali`_ornia Association of Realtors having offices in the vicinity of the Study Areas. The second questionnaire was distributed to all property owners (other than single family residential) within 500 feet of the Study Areas. The results of these surveys were supplemented with input from the general pul.lic obtained at two public meetings held in the area. Results. The evaluation found that there was some basis to conclude that the assessed valuation of property within the Study Areas had ) generally tended to increase at 2 lesser rate than similar areas having no adult businesses. However, the report noted that in the opinion of the planning staff there was insufficient evidence to support the contention that ccncentrations of adult businesses have been the primary cause of these catterns of change in assessed valuation. The appraiser questionnaire was distributed to 400 real estate prcfessionals with ZO percent responding. The results can be summarized as follows: 1. 87.7% `_elt that the ccncentraticn of adult businesses would decrease the market value of business property located in the vicinity of such establishments. 2. 5i.9% felt that the ccncentraticn of adult businesses would decrease the rental value of cosiness property located in the vicinity of such establishments. 3. 59.39 felt that the concentration of adult businesses would decrease the rentability/salability of business property located in the vicinity of such establishments. 4. 72.8% felt that the concentration of adult businesses would decrease the annual income cf businesses located in the vicinity of such establishments. 5. Over 90% felt 'that the concentration of adult businesses would decrease the market value of private residences located within 1000 feet. 6. Cver .o% felt trat the ccncentraticn of adult businesses would decrease the rental value of residential income property located within 1000 feet. Almost 90% felt that the concentration of adult businesses would decrease the rentability/salability of residential property located within 1000 feet. 129 134 Time. Place. and Manner Regulation of Business Activiry ^ Respondents to the appraisers' survey eonenented that the adverse h t f d e ype o t .~?eccs are related to the degree of concentration an i~!~ilt business. They indicated that one free standing adult business ~,~ have no effect. A few comments indicated that property values and sses that are compatible with i b ne us f~,~siness volume might increase fot adult entertainment businesses (e.g.: ocher adult businesses, bars). A high percentage of appraisers and realtors cmRnented on the adverse effect of adult businesses on neighborhood appearance, litter, and graffiti. The survey of property owners indicated that almost 85 percent felt ative effect on the d a neg that adult entertainment establishments ha sales and profits of businesses in the area. over BO percent felt that adult businesses had a negative affect on the value and appearance of homes in the area immediately adjacent to such businesses. Area property owners and businessmen cited the following adverse effects resulting from adult entertainment establishments. 1. Difficulty in renting office space. 2. Difficulty in keeping desirable tenants. 3. Difficulty in recruiting employees. 4. Limits hours of operation (evening hours). 5. Deters patronage from women and families. 1 e trona . g 6. Generally reduces business pa Resmndents emphasized their concerns about the high incidence of A high percentage of respondents commented that the aesthetics crime . of adult businesses are garish, sleazy, shabby, blighted, tasteless, and tend to increase the incidence of litter and graffiti. Testimony received at the two p~blic meeting on this subject revealed roliferation of adult the p that there was serious public concern over entertainment businesses, particuiarly in the Hollywopd area. ts . testified that they are afraid to walk the stree i i zens t C particularly at night. They expressed concern that children might !x confronted by unsavory characters or exposed to sexually explicit material. L~ i~r Appendix B 131 Appendix e TYPES OF CRIMES Part 1 Crimes Murder Capital Murder Criminal Negligent Homicide/Non-Traffic Criminal Negligent Homicide/Traific ~ Involuntary Manslaughter/Traific i Justified Homicide Sexual Assault Attempted Sexual Assault Aggravated Sexual Assault Attempted Aggravated Sexual Assault Race of a Child Attempted Rape of a Child Aggravated Robbery/Deadly weapon - Attempted Aggravated Aobbery/Deadly weapon Aggravated Robbery by Assault Robbery by Assault Attempted Robbery by Assault Attempted Murder Attempted Capital Murder Aggravated Assault ' Aggravated Assault on a Peace Officer Deadly Assault Serious Injury to a Child Arson with Bodily Injury 9uralary of a Residence Attempted Burglary of a Residence 9ucglary of a Non-Residence Attempted Burglary of a Non-Residence Theft Burglary of a Vehicle 9urglary of a Coin-Operated Machine The it from Auto Theft of Auto Parts Pocket Picking Purse Snatching Shoplifting Theft of Serv_ca Theft of Bicycle Theft from Person Attempted Theft Theft of Heavy Equipment Theft of Vehiele/Other 1~? ~ ime. Place. and `tanner Regulation of Business Activity ` Auto Theft Attempted Auto Theft Unauthorized use of a vehicle Sex Related Crimes Sexual Assault Attempted Sexual Assault Aggravated Sexual Assault Attempted Aggravated Sexual Assault Rape of a Child Attempted Rape of a Child Prostitution Promotion of Prostitution Aggravated Promotion of Prostitution Coumellinq Prostitution Sexual Abuse Aggravated Sexual Abuse Attempted Aggravated Sexual Abuse Public Lewdness Indecent Exposure Sexual Abuse of a Qiild Attempted Sexual Abuse of n Child Indecency with a Child Incest Solicitation !~ f- . _ 1 ~. Appendix B 13~ Appendix C COMPOSITION OF STUDY L CONTROL ARFJlS BY ZONING DISTRICT Area One Area Tt+o Area Three Area Four Study Control Study Control Study Control Study Control 1-SF-3 2'92 SF-3 18.78 26.97 25.43 22.31 33.26 47.29 22.49 22.39 SF-3-H MF-i 3.30 2.64 .77 2.32 1.72 MF-3 .94 1.93 1.38 7.88 2.64 1.03 1.00 2.69 MF-4 .28 MF-5 LO 4.47 1.45 .57 1.17 2.72 1.02 GO .43 CS 13.90 15.88 26.54 13.06 10.31 1.21 13.16 24.99 CS-1 1.12 .78 .34 .40 15.44 1.55 CS-H ~ .98 .34 7.40 2.27 1.12 .77 1.55 LR .54 .99 .37 3.78 3.62 LI i AVIATION 3.05 aNz ROAD ROW 22.59 22.33 17.65 20.53 14.51 12.74 17.51 14.34 'TOTAL 7 .1 .12 72.12 12.12 72. 7 .12 ' 134 Time. Place. and Manner Regulation of Business Acriviry ( Appendix D QUESTIOFSfAIRE ~ Please complete this brief survey and return it to the Office of Land Development Services by December 4, 1985. Aead the following information about a hypothetical neighborhood and respond to a few questions in terms of your professional experience and judgement. A middle-income, single-family residential neighborhood borders a main street that contains various commercial activities that serve the neighborhood. There is a building that recenCly has become vacant 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 area. Please indicate ywr answers to questions 1 through 4 in the blanks provided using scale A through G. Scale: (A) Decrease 20i or more (B) Decrease more than 10 i but less than 20i (C) Decrease from 0 to l0i (D) No change in value (E) Increase from 0 to l0i (F) Increase more than l0i but less than 20i (G) Increase 20i or more 1) How would you expect the average values of the single-family residential property within one block of the bookstore to be ai:ecced7 ert ial ro f th l 2) y p p e ecnaierc ues o How would you expect the average va within one block of the bookstore to be affected? 3) How would expect the average values of the single-family residential property within three bloc)cs of the bookstore to be affeetea7 4) How would you expect the average values of commercial property within three blocks to affected? 5) Sucpose the available coa~eercial building is used for something othcr than an adult bookstore. For each of the following potential uses, would the average value of the residential property within one block of the new business be: (A) (B) (C) (D) _ (E) than if an adult b much higher; somewhat higher; about the same; somewhat lcwer; or much lower; ookstore occupied the site. r. /_ `; .. ~.. j ~, Appendix B 13~ Store-front church Pool hall :ielface office Neighborhood tavern Record store Medical Office Drug rehabilitation center Ice cream parlor Video-game parlor Adult Video Areade Topless Bar Massage parlor Branch Library Adult 1lteater 6) In general, to what degree do you feel adult entertainment businesses affect property values? 7) Why do you feel this way? ©) Are you affiliated with a professional real estate appraisal oroanizationl Zf so, please specify. OpTZC~tAI„ Name and Name of Firm http://www.communirydefenu.org/cdcdacs/lenduse/html/azphcenix.cfm f~i Conducted by: PLANNING DEPARTMENT CITY OF PHOENIX May 25, 1979 ADULT BUSINESS STUDY ~ A necessary premise for regulating adult businesses by zoning is that a land use relation or impact results from this form of business. Many zoning ordinances throughout the nation now have provisions based on one of two basic approaches control the location of adult businesses. One approach, sometimes known as the Detroit Model, divides or prevents the concentration of adult businesses in an azea. A certain distance from residential neighborhoods, churches, and schools is also maintained. Another approach, or the Boston Model, fosters the concentration or- adult businesses in one azea of the City. The Latter approach has resulted in the mart noteworthy problems. For instance, in Boston's concentrated adult business azea there is control of signs, upgrading of streets and sidewalks, renovation of storefronts, and even the construction of a new park. This scheme has not affected the high number of stabbing, murders, and muggings that take place in the district. Also, at one time, New York City had concentrated adult business districts. However, the ~ police department reported that crime complaints were almost 70% higher on police posts with adult businesses, as opposed to posts without them. The reports showed higher rates of rape, robbery, and assault. In one adult business concentration around Times Squaze, sales taxes dropped by 43% in a two-year period, due to the loss of 2.5 times as many retail jobs as the rest of the City. New York soon dropped its original adult business ordinance and adopted an amendment that was patterned after the Detroit model. The new ordinance also went one step further than any other in the nation when suggestion was made to amortize all nonconforming adult businesses within one yeaz. Thus, up to 80% of the existing sex businesses were terminated. In the Phoenix Zoning Ordinance an amendment concerning adult business became effective on November 8, 1977. It too is patterned after the Detroit model. 1 of 13 - 11/30/19994:32 PM http://www.communirydeferase.org/cdcdocs/landuse/htmVazphcenix.cCm 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 azea residents. A petition which is 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. After the petition is completed the City Council may consider waiving 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 crime impacts noted La Boston and New York's districts directly related to the adult business being there, or to same other societal variables in the neighborhood? Are they identifiable and thus a probable cause rot negative neighborhood reactions to nearby adult businesses? The Phoenix Ordinance was based on two hypotheses: first, that there aze direct impacts which uniquely relate to this class of land use, and second, that there aze indirect, but equally potent, attitudinal concerns which result from proximity to an adult business. Examples of the former aze 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 neaz an aria containing an adult business. Also, financial institutions take neazby adult businesses into account when financing residential properties. Finally, people's perception o£ criminal activity is reinforced by a greater incidence of sexual cries in azeas or commercial districts containing adult businesses. In this study a wilt show chat chazs is a relationship between arrests for sexual crimes and locations of adult businesses. This relation will correlate with concems which have been expressed by residents of neazby residential neighbor-hoods at the nature of crimes associated with adult businesses. Sex crimes appeaz to generate substantial feazs for the safety at children, women, and neighborhoods in general. Their association with adult businesses generates negative images (as welt as real or potential hazards) and results in a lowering of the desvability and livability of an impacted neighborhood. This study specifically shows that there is a higher amount of sex offenses committed in neighborhoods in phoenix containing adult businesses as opposed to neighborhoods without them. In this project three ~ study azeas were chosen -neighborhoods with adult businesses, and three control azeas -- neighborhoods without adult businesses which were paired to certain population and land use characteristics. The amount at property crimes, violent crimes, and sex offenses from the year 1978 aze compazed in each study and control area 2 of 13 11/30/1999 4:32 PN. http://www.communirydefrnse.orglcdcdces/landuse/htmVazphcenia.cfm THE STUDY AND CONTROLS AREAS 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 population characteristics of a matched study area in terms of: 1. Number of residents 2. Median family income 3. Percentage of non-white population 4. Median age of the population ~ 5. Percentage of dwelling units built since 1950 6. Percentage of acreage used residentially and non-residentially Appendix II states a more detailed process of how each control area Adult business locations are 1 based on information furnished by the Department and verified by the Planning Department. TABLE I 3 of 13 11/30/19994:32 PM http://www.communitydefense.org/cdcdocs/landuse/htmVazphcenix.cfm THE STUDY AND CONTROL AREA LOCATIONS STUDY AREA I CONTROL AREA I Roosevelt Street -Oak Street Starting at 75~' Ave, east on Osborn Road 16th Street - 32nd Street South on 35~' Ave, west on Thomas Road, South on 39~' Ave, west on Roosevelt Street, North on 43 rd Avenue, west on McDowell Rd, and North on 47 ~' Ave, to the point of Beginning. STUDY AREA II CONTROL AREA II 4of 13 Oak Street. -Osborn Road Osborn Road -Campbell Avenue 32nd Street - 40th Street 32°d Street - 40a' Street STUDY AREA III CONTROL AREA III 11/30/1999 4:32 PM http://www.communitydefensc.org/cdcdocs/landuse/htmVazphcenix.cfm Missouri Avenue -Campbell Avenue Missour 19th Avenue --- 27th Avenue 27~' Avenue - 35a' Avenue Figure: 1, shows the boundaries of the three study and. control azeas. Study Area I contains two squaze miles and one of the City's larger concentrations of adult businesses. These locations are: 1702 E. McDowell Road; 2339 E. McDowell Road; 2438 E. McDowell Road, and ~ 3155 E. McDowell Road. The matching population chazacteristics of Study and Control Area I aze listed below in Table II. (Appendix III provides a more detailed process of how this data was derived.) TABLE II POPULATION CHARACTERISTICS OF STUDY AND CONTROL AREA I 5 of l3 11/30/19994:32 PM Avenue -Campbell Avenue http://www.communitydefrnse.org/cdcdocs/lenduse/htrnVazphoenix.cfm ilr it f~ TABLE III POPULATION CHARACTERISTICS OF STUDY AND CONTROL AREA II 6of 13 %Non-Wlrite Building/ 1950-1970 StudyI 24% 57% ControlI 24% 93% Income Media Age Land Use CommerciaUResidential $7,675 29 31% 69% $9,885 26 38% 62% The only substantial population characteristic differences in these two areas aze 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 azea has almost 93% of its housing built altaz 1950. Study Area II is one squaze mile on the east side of the city, and contains only one adult business within the square mile, at 3640 East Thomas Road. Its control area is to the north side at the Study Area. The comparison of population characteristics are shown in Table III. %Non-White Building/ Income Media Age Land Use 1950-1970 CommerciaVResidential Study II 7.4 88.0 $10,779 36 18% 82% Control II 4.4 92.5 $12,013 38 11% 89% Study Area III also contains one adult business at 2103 W. Camelback Road. It is one squaze mile 1/80/1999 4:32 PM http://www.communiTydefense.org/cdcdocs/lendusc/h[mVazphoenix.cfm !' located on the west side of the City. Its Control Area is directly to the west. The comparison ~ of population chazacteristics are shown below: Y~ TABLE IV POPULATION CHARACTERISTICS OF STUDY AND CONTROL AREA III Non-White Building/ Income Media Age Land Use 1950-1970 CommerciaUResidential Study III 8.2 83% $9,829 29 29% 71% Control III 8.8 93% $10,559 28 28% 72% •J 7 of 13 11/30/19994:32 PM J http://wwa.communirydefense.orv/cdcdocs/landuse/h[mVazphornix.cfm .~ 8 of 13 I U30/1999 4:32 PM http://www.communitydefrnse.org/cdcdocs4andusc/htmliazphoenix.cfrr Yt A~ W CONCLUSIONS ~'" 1r Table V Property. Violent. and Sex Crime in Selected Study Areas - 19781 is a tabulation of the number of crimes committed and the rate of chose crimes 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 azeas for sex crimes than for either property or violent crimes. The following table illustrates a comparison of ~ the ratio of the crime rate off the study area to the control azea: TABLE VI CRIME RATES AS A PERCENTAGE OF STUDY AREA TO CONTROL AREA Study Area Property Crime Violent Crimes Sex Crimes Sex Crimes - (Leas Indecent Exposure) I 147% 144% 1135% 358% II 173 83 277 160 III 108 86 405 178 Average 143% 104% 606% 232% It is observed that there are about 40% more property crimes and about the same rate of violent crimes per 1,000 persons in the study Areas as compazed to the Control Areas. On the other hand there is an average of six times the sex crime rates in the Study Areas as 9 of 13 11/30/19994:32 PM http://svww.wmmunitydefense.org/cdcdocs/landuu/htmVazphaenix.cfm ~!' compazed with the Control Areas. Although the majority of sex V Table V Prooertv. Violent and Sex Crimes in Selected Studv tUeas-19981 was derived from information provided by the City of Phoenix Police Ikpattmem' a Crime Analr-unit and Plamting and Research Bureau. The data from these two sections is canrpiled by adding the camber Type of aimes committed io polio grids, which are quuter mile neighborhoods. Crones an based on arrpt records arrd do not reflect ultimate cronvictions. It bas been assumed thu conviction rates will be proportional to artest rates crimes are Indecent Exposwe, the fourth column illustrates that the remainder of the sex crimes also exhibit a significantly higher rates in the study areas. A detective from the police department stated that most indecent exposwe 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 exposure crimes were committed at the addresses of adult businesses. Where 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 away from each other and less than 500 feet away from a residential district. There is also a higher number of sex offenses committed - 84 more crimes than in Study Area II, and 56 more crimes than in Study Area III. Similazly, when compazed to its Control Area, the sex crime rate, per 1,000 residences is over 11 times as great in Study Area I. In the remaining study azeas, which each contain a single adult business, their rates aze four and almost three times as great. APPENDIX I ESTABLISHIv1ENT OF STUDY AREA BOUNDARIES ]0 of 13 11/30/19994:32 PM http://www.communitydefrnu.org/cdcdces/landuu/httnVezphcenix.cfm !~ i~ !~ Yr The process of defining the Study Area Boundaries was conducted in the following manner: ~ 1. Locations of adult businesses in Phoenix were plotted. ~" 2. The primary concentration of adult businesses an identified. it 3. Preliminary decision was made to choose three study azeas based on concentration and ~ geographic isolation from each ocher. 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 squaze miles. APPENDIX II ESTABLISFIMENT OF CONTROL AREA BOUNDARIES The process of defining the Control Area boundaries was conducted in the following manner: 1. Identification of potential control azeas based on the absence of adult businesses. 2. Delineation of possible Control Areas equal in size to the Study Areas. 3. Determinative of population and. land use chazacteristics of each possible control azea using the same weighted proportionality method used for the Study Areas (See Appendix III for Population Chazacteristics and methodology). 4. Selection of a Control Area to match each Study Area as closely as possible in size, number of residents, and. all other selected chazacteristics listed in Appendix III. - 11 of 13 11/30/1999 4:32 PM ' http://www.wmmunitydefenu.org/cdcdces/landuu/htmVazphcenix.cfm w fir '+.r APPENDIX III METHODOLOGY OF WEIGHTING POPULATION CHARACTERISTICS OF STUDY AND CONTROL AREA The characteristics used in weighting the similarities between the Study and control azeas were: 1. Percentage 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 Information about the above characteristics was available at the Census Tract Level. Since the study Area boundaries did not always align with Census Tract boundaries, it was necessary to "average" Census Tract values to simulate the characteristics of the Study Areas. The contribution of each Census Tract characteristic value was mathematically weighted, proportional to the amount of population chat the Census Tract contributed en the Study Area population. Number 5, or the percentage of acreage used residentially, was attributed proportionally to the geographic area rather than the population. The weighting of each Study and Control Area is tabulated in the following table: (see next page) 12 of 13 11/30/1999 4:32 PM r 13 of 13 http://www.communitydefenu.org/cdcdocs/landuse/htrnVazphoenix.cfm 11/30/1999 4:32 PM t '' • .. •• ~~ ~. • A W n//" a SOIIST0.1 CITY COO'NCZL COMt+STTEE ON TEE. PROPOSED REGDL1lTZON OF SEXOALLY ORIENTED'SIISINESSES LEGISI.7ITZVE REPORT ON 7liC ORDINANCE JIMENDINC SF.CTZON 28-73 or BE coaE O! oRDINa~cES OF THE CITY or HoosroN, TET.AS; FROG :7ll~c FOR THE REGGL7ITZON OF SEXIIALLY ORIENTED COMMERCIAL E.'~I'C~-ItPRZSES, JIDIILT BOOESTORES, J1aOLT MOVIE THE7ITRES 112.'D M?SSaGE ESTABLISHM~lTS;••AND MAxING VARIOUS PROVIS20N5' AND FINDINGS RELATING TO THE SITBJECT ~_~,_~:~ ,. . .~~• ~~r.~l ~n7'~7J3 S:r•. . ,~ • ~, COMliITTsE ON THE PROPOSED REGULATION OF SEXUALLY ORIENTED BUSINESSES LEGISLATIVE REPORT. INTRODUC?ION .. t~ This Legislative Report has been prepared by the Committee on the Proposed Regulation of Sexually Osieated Businesses as a ' summary of the Committee's work in preparing the draft ordinance which has been submitted Lo the Houston City Council for eonsid- sration. This Report briefly sketches some of the most signifi- e east aspects of the history •of the Committee, .summarizes prior efforts at the regulation of sexually oriented businesses both in Houaton 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 dratted as a legal treatise on the regulation of sexually oriented bnsiaesses. Certainly consider- able care vas taken by the Committee to eoasnlt with the Legal Department at every step of the legislative process. Representa- tives o! the Legal Department actually dratted the language of the ardinaaee pursuant to the directions ot, and in eonsultati~- vith, the Committee. However, the various legal issues rais during the Committee's deliberations are dealt with here from the~~ layman's, not- the lawyer's perspective, although it is the lawyer's perspective that undergirds the ordinance. The purpose rt this Report is to explain to members of Council, and to the qc.-~eral public, what the Committee !ua reeess,endsd, and why, in the plainest possible language. yor the same reason, this Retort is not tilled with tootaates, althoagb all of the iatorma- tion is drawn from the materials and transcripts compiled by the Co.~mnittee, and available as a matter of public record. ~ ORSGIt:S AND ESTABLISRMENT OF THE COMMITTFF.. On September 27, 1982, Mayor ltathrya J. Whitmire of the City of Houaton announced the formation of a special eoaonittee of Council !!embers for the purpose of determining the need for and appropriate means of regnlatiag sexually oriented bnsiaesses in 8onston. This Couaeil Committee on the Proposed Regulation of sexually Oriented Businesses vas composed of Council Members Dale !!. Gorezynski, vho represents District A, Council Member George Greanias, vho 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. 4~ The Co~amittee vas formed by the Mayor in response to grovi eosmunity concerns about the proliferation of sexually orientea,~ A *' Sexually Oriented Businesses ~ - .. page 2 . ., . ~. businesses in Houston. This concern had been summarized in a ~*~, ~ memorandum from Cauneil Member Greanirs to the Mayor an- ~„ September 20, 1482: 'Given its healthy economic climate and a Irgal snvizonment that is, despite cur identification with the Hible Belt, laissez faire on siost sexual matters, . _ Houston has long-Peen an attractive environment for sexually oriented businesses. . I' •Since Houston is not zoned, these sexually oriented businesses are located anywhere and every- where, oftentimes near, residential are:s, or sear sehools,~ eharehes, or public parks. Their locations are frequently marked by garish or enticing signage. 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.' Moreover, the establishment of one such business in an area has often led to the opening of another, in a rathcr~ perverse 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. .• LJ I' I C ~m '_ The memorandum from Council Member 6reanias made clear that in his mind at least the issue was not one of morality, or of passing judgment on the lifest}•le 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 deaf meaningfully with the issue of sexually oriented businesses shocld not be underestimated. To some 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 more item on the agenda of those who are convinced teat the eitp is in the terminal throes of sexual degradation on every front. •Bnt the problem imposed by these sexually oriented businesses is much broader in its impli~a- tions, and suns directly to the heart of oar present policies on land use. Does our dreisian not to impose zoning carry with it the requirement that ve not seek to moderate the,inflnence of sexually oriented busi- nesses on our neighborhoods, whatever the eonsegaenees for the stability and quality of those neighborhoods? • Sexvally Oriented Businesses page 3 ~ • ~ • . .~ Does our decision not to impose zoning tie our hands in ~ `~, dealing with the collateral esiminel activity that apparently attaches to same of these operations?• 71t the same time, the initial memorandum from Council Member Gseanias to Mayor,whitmize underscored a problem for which th Committee vas to show great concern during the course of it~ deliberations: 'Ther¢ is alsa another, equally important gaestioa: Does onz desire to protect the freedom and privacy of the individual, and to permit that indi- vidual to pursue his or• her life without inhibition, mean that we are proscribed izom taking any actions that while not significantly infringing on those rights nevertheless sets a standard for the community as a whole?' It vas. these questions that formed the heart of t2s Committees inquiry durinq.,~its.one year of existence. .Th Committee believes flat these 'questions have been successfully addressed in the proposed ordinaRee that has been presented t~ Council for its consideration. OPERATION OF TAE COMiZTTEE Methodolo The Committee conducted its work in several phases. a srst phase, which was carried oat in November an~_ December of 1982, involved a se ies nbl a hen i sin ssvera parts of the city, as we as at City all. There were thre regional hearings and one haarinq in City Council Chambers. The fisst hearing was held at Spring woods Senior High School o~ November 8, 1982. The second hearing was bald at Dezean Saptis Chnzeh oa November 22, 1982. Ilse third hearing was held at serinq Methodist Church ea December S, 1982. .The fourth an final session is this first series of hearings was held is Cit Council Chambers oa December 15. 1982. (Ds:rinq the coarse of these heari:gs, several eomm~nts wens made abort ehoosin churches as the sites for some of the hearings. The Committe, chose -these locations not because of their seligions significance, but because they had : history of being used fo community affairs, thess locations were wll known to the genera' public, and aeeesa to each such site was convenient from various places around the city.) 1-fter the first set of hearings _ Committee went into ex~!eutive sessions mately three months, ate r part of ]1pri1 1983. Daring that time, zepzesentatives of the Legal.Department had been completed, th~ for a period of approxi- of 1982 antil the earl the' Committee met v'. , to review the testi. f _ • .. .. ._ ._ ._~~ Sezuall Oriented Businesses ~ j Pnge 1' y ~' ~,,,, !~ gathered in the initial hearings, as well as to diseu~ss the results of staff researph on the subject. Rmonq those partic- ipating in~ this work were l:esszs. John ifiittington, Robert ~ Collins, Charles Williams, and 1-dam Silverman from the Legal Department of the City of Houston, pent Speer, John Llsenhans and Michael McEachern from the office of Council Member George Greanias, Fred Harper from the office of Council Masher Christin ~" Hartung, and Hancy Brame from the office of Council Member Dale it Gorezyaski. Francis J. Coleman, Jz., City 7lttorney for the City of Houston, also participated in these conversations from time to P+ time . On May 6, 1983, the Committee published the result: of its efforts: a draft of a proposed ordinance regulating sexually oriented businesses in the City of Houston. 71t the time that the Committee published its draft dinanee, t rther tin s were announced at which the Comma ee wou so aciL testimony oa the ordinance as proposed. These hearings -- originally planned to be three in cumber -- wets .:.held ~pn t~'ednesday, May 15, 1983, ir'edneaday, May 22, 1983, arid' Thursday, May 24, 1983, in City Council Chambers. 71 fourth hearing, not originally planned, was held on Thursday, June 16, 1983. went back into staff to ma e ! made pursuant Z on the specific + cn~ puou c comments arc noted ordinance provisions themselves. the Committesigeaeraly cno~t pto mepetwwithnindividnalsdandsgroups .apart from the public se3sidns. It was determined early on that an ordinance such as th:t being considered by the Committae, with its potential for controversy, should not be subject to private bargaining between individuals or businesses and members of the Committee behind closed doors. ZL 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 deliberatioas~weze~j stitied ino eaeauzaging thet free flow aof discussion of ideas and sensitive concepts, knowing that the entire work product would be subject to the public eo®aent, review and debate inherent in the Caamittee's procedures and the processes of Council. / The Committee also felt it imperative not to become subject .~tO demands for quick action at the price of working with deliber- v ate speed towards its goals. It is for this reason that the original daft scheduled for submission to Council o! a draft Based upon these further public hearings, the Committee then counsel and other The changes in the eommaitary !" ~r ~~ Sexually Oriented Duainesses ~ ?age S ~ • w ~" version of an ordinance was moved from January 25 to July lu. (?his date was pushed back several more times, and for similar• reasons, before the ordinance was finally submitted Lo Council.) 2t 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 it ordinance be considered dosing 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 is jest one reading. Throughout its work, the goal of the Committee vas 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 st. '-~ 1lnalysis of Testimon The hearings helS by the Com:ittee on the Propose gu auon of Sexually Oriented Businesses were aaong the most extensive Baer .held by any committer of the 8ottston City Conseil. The heirings 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 ray. (Lt this point it should be noted that the Committee also accepted written comments from anyone, regardless of whether they testified in person. Sneh comments became part of the Committee's public record as a matter' of course.) However, a clear distinction should be drawn between the Committee's will- ingness to permit full expre:sion of diverse views -- a rilling- • seas that is reflected in the transcript o! the hearings -- and soy wholesale iaeorporation of those remarks by the Committee into the ordinance proposed to Council. indeed, a chief function of the Caomittee was to evaluate the testimony, end to set aside those eomsents seen as not germane to Lhe issues at hand oz not ~ealinq with problems, addressing instead those issues within the rightful parview of the city. Thus, although there rare a substantial number of ritnesses expressing a fundamentalist opposition to what those witnesses deemed obscenity sad pornography, the Committee chose -- and in fact made clear during the hearings -- to focus its efforts on land use issues rather than questions of pornography and ob- seeaity. Similarly, a number of ritnesses made comments adverse to the operation of gay bars. l-gain it ras pointed out to those ritnesses that such establishments rare not necessarily within t.~fe working definition of a 'sexually oriented business' (a definition that vas modified over time as the ordinance vas further refined) and therefore not a subject in themselves to be dealt ~•ith in the proposed ordinance. Finally, a number of witnesses made statements and proposals that would effectively '~ Sexually Oriented Husii+essea Psge 6 • w w ban all sexually oriented businesses, as that phrase is broac `~ defined. The Committee made iL clear, both.durinq the hearings " and afterwards, that it was not the intention of the Committee to ~' propose any ordinance that would be subject to a successful court challenge because it either directly or indirectly (or for that natter iaadvertontly) eliminated the opportunities for such businesses to exist in the City of Houston. IPith these comments by way of preface, it is useful to review briefly the principal points made during the hearings and later relied upon by tlse Committee in the drafting of the proposed ordinance. lnzther 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. T fret point made by many witnesses that seemed of merit to the Comma tee w:s that sexually oriented businesses, while a nuisance and not necessarily representative of tha desires or ~~ activities of a majority of -Houstonians, nonetheless have a right to exist. The rights of individuals were a Lheme is the testi- mony of a number of. the witnesses. Ilse willingness of Houstonians to 'live and let live' ras reinforced in the findings of a Houston attitudes survey conducted by Dz. Steven Xlinebere of Rice Dniversity, along with others. Briefly put, that stn concluded that Houstonians were loath to support restrictions on personal behavior. JL~aoaq 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 impose nay 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 e n point made by many of the witnesses to whose testimony the Committee repeatedly referred during its delibera-. boas 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 a~tiv- ities. These witnesses -- many of them individuals who had direct personal experience of these businesses in their neighbor- hoods, or representatives of civic organizations that had had many dealings wills the problems created by such businesses stated that while the businesses might have a sight to exist, steps could be taken that, while not unduly restzietive of their operations, would offer some assistance to those neighbors and businesses surrounding the sexually oriented business. For instance, one gentleman .living on West 1-labama next to an adu bookstore, while agreeing that such businesses would probab~J Sexually Oriented Dvsiriesses` Page 7 continue to exist a:sd that he was resigned to cited a series of unte~ard incidents occurring that fact, also on or near his property that war: directly related to that adult bookstore. His position seeaed to bs tztt while Council might not be able to rid his of the business, it might nonetheless take steps to amelio- rate the worst effects of that enterprise. " The hi point wade by many of the witnesses who proved most help to the Co~aittee in providing guidance for the drafting o! the ordinance vas that among the most important negative effects of t'~ese businesses were the adverse eonse- _ . G quenees on aeighbozhood.- protection snd enhancement, and the eonsegnent adverse effect oa property values. 11 number of eighborhood representatives and civic club participants re- counted numerous instances of problems th:t had been ~ereated by these businesses for neighborhoods which were .trying to preserve a neighborhood fabric. evezal re l s a s with snbstan= tial experience is areas a. by sexually oriented businesses offered documented instances in which psoperty valves had been -,' affected by the establishment~f sexually osieated businesses, as well as inloznatioa of a more 'ejeaeral_nstnre as to the effect of y. these businesses~oa the course of neighborhood development. Zn ex~crt testimony v Dz.; 7-ndrew 4••a.„~ek of the Mice Center, given ' " afore the fall Coaaeil, this cause and effect' syndrome vas _ again attested to. Zt~seemed to be a consensus among both t2se law and expert witnesses that is neighborhood areas and areas of , quality ecm~ereial development, the establi:hment of sexually ~ oriented businesses had a detrimental effect oa property values,_ at least is part because they were perceived adversely to affect the quality of 23fe -- including among other thing: such issues as suitability for family activities and stability of the aeighboshood envizons-ent -- of the area. . The curt point rade by the vitaesses whose testimony vas most comzon relied upon by the Cosmittee vas that among the ~ most significant psoblens created by the businesses were- the aneil].a_-y activities esused by tha clustering of businesses, as in the case of street prostitution is the loves Kestheimer area, sad the problea of exterior appearance. Ltrea where businesses could not be ,forced to relocate because of apparent preemptions in state law; cost vitaesses stated that reasonable controls on signage sad exterior appearance were required. The intrusiveness' of L?se signage snd exterior features into the consciousness of - the community was repeatedly cited. St vas also noted that although adults sight t-sin themselves to ignore such signage, it would be hard if nit impossible to demand the same self-discipline Eton children. That children would be likely attracted to such advertising (which in at least one ease even featured popular cartoon characters) was perceived as a significant probles in the expert testimony of one psychiatrist, ~~ ' Sexually Oriented Businesses Page 8 , .. who cited information diseusaing the relations between expoe_c~_ to such signage :nd psychological problems those children mign~ subsequently experience. Th it oint developed in the testimony and regarded a~ significant y the Committee waa that sexually oriented bus V messes are likely contributory factors to criminal activities thit are encouraged as ancillary to thRSe enterprises. This li between these businesses and related problems of erimina~ activity was affirmed by Lhe Chief of Police and other represen- tatives o! the Polies Department, ss well as by non-exper witaesses with long persoaal experience of living in areas whe~ sexually oriented businesses are located. To the Committee, thi issue of criminal activity occurring in the srea o! seruall oriented businesses was aot a central problem, but sather concurrent question o! somewhat lesser significance than the lam nse issues. 11t 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 where thos: businesses have clustered, has an adverse effect on property values. This adverse effee~ makes such activities a secondary concern, even though t~^ principal focus o! the Committee and the ordinance is on land use matters. ~' The~t point brought out in the testimony -- particularly the testimony of city employe:s engaged in enforcing eurren statutes regulating such businesses, as well as private i dividuals who love soaght legal sseonrse against sneh businesse v ---was the difficulty of achieving seasonable enforcement of th law. Part of this enforcement problem centers oa the relatively limited arsenal of remedies available to home-rule cities andee44 • Texas law in such circumstances. Some of the problem has been alleviated by cooperative efforts between cities and counties, a~ is the ease is Houston, where Harris County cooperates with thl~ city by bringing suits whenever requested to accompany a city suit, thus hringing into play the padlock power of the county a power the city lacks. However, anothes part of the problem i~ that existing laws and ordinances are structured in such a way as to make it difficult to sustain an action against even an o fender clearly fa violation of the law. For example, if injunction for abatement of a nuisance is brought against the owner of a particular sexually oriented business -- such as adult modeling studio -- it is quite possible that by the ti the suit is aetual2y brought to trial the ownership of t business has been transferred. The ease is then thrown in limbo because the appropriate party or parties is (or aze~ longer •joined• in the suit. The lawsuit stalls while. business continues in operation. ~~Serually Oriented eusiaessei ~ _ Page 9 ' !!^ pother which the Committee thought relevant to its !' deliberations regarded those businesses which are thought to enjoy special protection under the First I-mendment. This issue vas perhaps one of the most difficult that the Committee faced. Despite whatever personal preference the members of the Committee . sitght have had, the eleas mandate of the Committee was to prepare an ordinance that vas as legally defensible as possible. ]-ftez' considerable deliberation, the Committee accepted the contentions of those lawyers who argued that to lump First Jlmendment and all other businesses into ene 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. Hor is it to say that following the recommendations of thsse lawyers represents what the Committee believes to be wise public policy. Sut what the Committee did was to semember continuously its principal charge, and to set aside its personal preferences and opinions in favor of proposing an ordinance with a ~Y+s+um likelihood of being upheld in court. ~~ While a variety of other''i'ssues and problems were raised in testimony taken before the Committee, the foregoing points seemed, 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 is the Section by Section llnalysis that follows below.' PRIOR HOIISTON ]1TTEMPTS TO REGULJ-TE Earl Efforts. The proposed ordinance does not represent the first attempt by the City of Houston to regulate sexually oriented businesses. 7-s statsd in HOUSTOTT: 71 HISTORY, by David G. McComb: ' •In 18<0 a city ordinance provided a fine of not less than SSO and a jail term of ten to thirty days for any woman eo~sitt_+ng lewd actions or exhibiting harself in a peblie place in a style 'not usual fos respectable females.' Brothels within the city limits could not be located closer thsa two squares to a family residence. A suppleaentary ordinance in 181 required a S20 bond for a 'female of ill fame' found in a public place after 8:00 p.m. in order to ensure good behavior. 111though perhaps not a prostitute, one of the most notorious female characters from the period vas Pamela Mann, an expert at firearms, knives, horseback riding, and profanity. She appeared in court at various times charged with eountezfeitinq, forgery, fornication, larceny, and assault. according to williwm Ranson Hogan, she ran the Mansion Flouse Hotel in such fashion that 'Mss. !Bann and her 'girls'' achieved a satisfying success' Sexually Oriented Eusiaesses _ Tage 30 providing Houston with female companionship of a 'robust . none too virtuous nature.'' `~ Universal I-musemsnt. 11 more recent and perhaps mote relevant attempt to zegu ate sexually oriented businesses in Honsto occurred in 197], with the passage of Ordinances 28-63 and 36-14~ Ordinance 28-53 amended : prior ordinance to make it 'unlawful for any person to operate or cause to be operated an adul~ commercial establishment within two thousand (2000) feet of Church, school or other educational or charitable institution. Under this ordinance, an 'adult commercial establishment' va defined as 'any business oz enterprise havino as a~nbstantial o~ distribution, lending, rental, exb~oe, or~sTer-viewing of material depicting sexual conduct or specified anatomical area for eoasideration.• Ordinance 36-14 made it unlawful to opesat within two thousand (2,000) feet of a church, school or other educational or charitable institution any motion picture theatr~ 'which exhibits a film that explicitly depicts ... eoatac between any part of the gea3rLals at-'one person and the genitals, mouth oz anus of another person; ... contact between a person' mouth, anus, or genitals and the mouth, anus, or genitals of ar~ animal os fowl; ... manipulrtion of a person's genitals; ... defecation; os ... urination.' sotb ordinances required a'• businesses coming under the ambit of the law to bring themsel into compliance within thirty (30) days of passage of the ordinaneea. p1 third ordinance, not as significant, dealt with redefinition of 'public amusement park' and 'places of pabli~ entertainment and amusement. •). The 1977 ordinances were syeeessfnl~i ehallenQed in a 197 ease styled Universal 1musement Co., v. Rofheinz. In an opinio handed doves Oct~o er~,~u~ge Ross N~terYing granted the request of plaintiffs for declaratory and injunctive relief. !- the conclusion of the trial, the Court orally declared the ordinances unconstitutional on tbei,s lace, persanently enjoined thei3 snforceaeat against plaintiffs, and severed plaintiffs claims for punitive damages and attorneys' fees. For purposes of considering the ordinance now being propose by the Committee, it is instructive to consider the grounds o~ which the 1977 ordinaneea rare struck down as unconstitutional b the Court. J-ltbougb at least one of the attorneys appearin before the Committee dozing its second session of hearing alleged that no ordinance could be fashioned that would meet th objections made by the Court, the Committee is of the opisiion that it is indeed possible to draft such an ordinneee. In summary, Judge Sterling held the ordinances unconsti' tional on grounds of vagueness, statirq that this alone would L Sexually Oriented Husiriesses Rage it . ~" it sufficient grounds to void the ordinance on grounds of uneonsti- ~'"" tutionality. However, he went on to say that in his opinion 1r Lheze were other constitutional defects, nam_ly that the ordi- nances were violative of the First and Fou rteenth Ame ndments to t.~e Constitution by abridging the fr'edoms of speech and press gear:steed 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 ueene~~ss. The Court found that the challenged ordinances violate3~sie tenets of eanstitutional law. Zt cited the general rule that whenever a penal statute is involved -- as was the case here, siaee a fine of uP to ;200 vas to be imposed for violations of ordinance 2t-65 -- the terms of that statute "must be sufficiently explicit to infozso those who aze~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 men of common intelligence smst necessarily guess at .its ~eaninq and differ as to its ~ applieatioa violates the first essential of due process oflaw.• However, the Court vas .quick to point .cut that even more than the usual rule requiring exactness in the drafting of a penal statute was involved in the ease at hand. The ordinances in question were not only penal, but also restricted the exercise of First Aaendment sights. While. the Court did not bald that no such restrictions on Pirst Amendment rights could ever be sne- ecssfully eructed, 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 Dniversal Amusement claimed th:t the ordinances under examination failed both the general test of strictness required of say penal statute, not to mention the stricter standard applied when a law resuietiaq First Amendment rights are is question. with 'this argument the Court agreed. Especially troublesome was the lack et anv definitions what ev r for suc.'~ words as 'Church,' 'school,' oz o er s ucational or e ra a e sus station.' ~*+*~~~f=~hs_werks •s staatia~: ~+:§ lei wwl f.-.-rte ~- «~-A •w -..Ai A. •-..K~~- -t ir- -~--L 3- r-.A- ~- to be 'Any theater which ever exhibited '7( or R' movies might be covered from time to time depending on the meaning of the words 'substan tizl' and 'significant. " _ The Court notrd that one of the asserted purposes of the ordinances vas the protection of children, but held that this ' ~Sexvally Oriented Businesses Pags 13 to live in a particular section of town so that a watchful •~ could be kept on them. So paraphrase The Mikado, the legislativd° remedy should tit the problem. 1-nother posse away of looking at it is that the cure should not be worse than the disease. In Oniversal 7uensement the Court loand that there was not ' just overer z~ea 'tTi, u~ L~snbstantial evorbreadth.• The Court seemed to be of the opinion that the attempt to regulate busi- nesses which dealt is material depicting 'sexual eandueL• or ' 'specified anatomical areas' tailed 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 beuass (1) what they ssll oz exhibit might fill rithia the scope of the ordinaaee, and t2) their dealings with such aaterial might result in the brand- ing o! their businesses as 'adult commercial estab23shments.• Zn y the opinion of the Court, the ordinances being challenged had the potential to effectively prohibit all theatres from showing •R" rated aovies and medical bookstores from ssllinq books on anatomy or physiology which depi~ted:.~udityor partial nudity. Coupled with the tact that the ordinances as mitten sere not in the opinion of the Court subject to narrowing by state law decisions, the ordinances rere found to be consequently overbroad and therefore constitutionally infirm. Protected Speech. The ordinances that were the sobjeet c.~~ the lawsuit in Dniversal 7lmusement attempted to regulate to some extent activities-no Tly~e"si3ered as Hader the ambit of the lust 7lmendment. Therefore one of the issues was rhetber the ordinances abridged freedom of spsech in any unwarranted fashion. The Court noted flat there caned be regulation of such speech. rut, the Court stated, such sequlatien mast be seasonable. Zn the ease of the ordinances at issue, the Court held that the administrative officials ehargsd with enforcement of the ordi- nances were left tree to exercise rh:t tha Court characterised as 'virtually unfettered discretion.' !or instance, under the ordinances it was left to a policeman to determine rhat ras a 'church' or 'school.' Sneh breadth o! disezetion-ras found by the Court to be unacceptable in ordinances which proposed to regulate rhat were considered First 7lmendment activities. This eoncesa for protected speech vas heightened by the tact t.'sat 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 1louston, at least as far as the Count could see under its review of the facts. Dnder such circumstances, the Court stated, it was impossible to say that these particular ordinances represented a reasonable restraint the first J-mendment activities aL issue. ' 'Sexually Oriented Businesses page 1{ E ual Protection. Th•. Court in Universal 7lmusement nlao state tat w i e a city can treat different e~sses o people in different ways, the difference in treatm~:nt must be based on some rationale directly eonneet~d with the appropriate exercise o: municipal power for accepted purposes. The question in the particular case was•whethes the city, in treating the businesses at issue differently than other businesses, was doing so for seasons that were grounded in acceptable public polity eonsis- tently applied. The Court also noted that of some importance would be whether the state !ud already enacted legislation to deal with the public policy issues sated as the grounds for the ordinances. In IInive=sal 7-musement, the Court found that the purported purpose off' protectin' g S1~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 noted that there were already a substantial number of laws on the books at the state level dealing with the problem of protecting children trom s~eh activities. The Court distin- gnashed the Detroit ordinanee;•ori which Boustoa had relied, by noting that one of the primary purposes of that ordinance was to preserve the quality of urban life. Liven these taets, the Court seemed to believe that the City of eouston had gone too tar in its ordinances, given the goals it was.seekinq to accomplish. Dne process. The final issues dealt with by the Court in Universa 1-musement vas that of denial of due process. The Court our t t w-Fi e~some exercise of ennieipal authority in this area might be justified, the ezdinanees at issue vent far beyond ' what was permissible and in effect deprived pezaons 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 is such a way that even it a business could find an acceptable location, the• • business world torever bs isi jeopardy o1 losing its authority to ~ operate if a church or school moved within the, prohibited distance. S1~nary. In reviewing the decision of Oniversal ]lmuae~nent for purposes of its work in drafting an ordinance proposa , e Committee kept several points in mind with regard to the tore- going discussion. First, businesses that are argued as under the ambit of the First 1lmendment enjoy special protection. But even the Court in Universal 7-musement seemed to indicate that such protection is no~olut~that reasonable regulation is permissible..'Therefore, the Committee took special care in all matters of regulation affecting First 1lmendment businesses to exercise what the Committee deemed prudence and restraint, Sexually Oriented Bcsiaesses Page 16 . Fifth, the Cotcnittee has provided in the ordinance /several avenues of recourse for any party that believes himseY v aggrieved b}• ad.-sinistratioo of the ordinance. l-t the same time' however, the ordinance has thsovghout bsen designed to limit the discretion of the administrative ottieers in charge of th ordinance to minimize the possibilities for such abuses o~ discretion that would require redress. Sixth and finally, the Committee has spent considerable•tim~ reviewing computerized maps to give reasonable assurance tha while the ordinance may be restrictive in absolute terms of locations available to sexually oriented businesses, it is no~ pro.~ibitory is what it seeks to accomplish. lifter reviewing series of map's developed in seeordanes with the distsncs formulas set forth is the ordinance, the Committee feel: flat there i reasonable evidence to support the conclusion that such is indee~ the ease. RF~SEDIES 71DOP?ED SY OTIiER CITIES Houston is not the oalj-'°J~meziean city to have had to den with the problem of sexually oriented businesses. Other munie~ ipalities such as Detroit, Z;oston, Chicago, Dallas, Los 7ingeles,' and Santa Maria,. California, :s well as regional governments sl+e• as Fairfax Couatp, Virginia, have also grappled rich the is: Jllthough 8onstoa is unique as compared to these .other governmear~ with respect to the soainq issue, there are nonetheless lessons flat can be drawn Eras comparing the experience of othe~ municipalities to our own. Detroit. The efforts of the city of Detroit to regulat sexnalTy o Tented businesses focnd their roots in atteapts mad is 1962 to combat the skid-row effects occurring in certain neighborhoods. IIltimate2T, the city in 1976 amended th anti-skid row ordinance developed out of that earlier effort t~ cover sexually oriented businesses. These new regulations wr apheld by the United States Supreme Court. The keyelements o this ordinance provided the following: _ (1)' Sexually oriented businesses were explicitly defined; (2) Sexually oriented within five hundred residential; (3) Sexually oriented bi locating within one two other regulated and businesses were prohibited feet (500') of an area zoned isinesses were prohibited from thousand feet (1000') of any sexually oriented businesses; exually Oriented 8usirlexses - - ' age 19 . Chieaco. In 1977, the city of Chieaco amended its municipal to nel d ,} u e new zegulstions on adult-use businesses. The ~ p!" -~ieago ordinance generally followed the Detroit legislation a ~- . ~r :ne basic strategy of the regulatory scheme could be broken into - of hree parts: first, there vas a strong effort to define the arpose and intent of the ordinance s d ~e ; econ , there vas a good +eal o! effort put into defining sexually oriented businesses; nd and third, there vas substantial time spent to carefully define ~e t f ype o regulation and enforcement being adopted. ie The Chicago ordinance also had some features not found in ss ze Detroit ordinance. First, registration standards were imposed ` re _aa _ required nine types of responses, mostly concerning owner- this. Certain restrictions, though vaguely defined l d he t , vese p ace i acterior displays. On this particular point, the ordinance • o al covided that no adult nse shall be conducted in'any manner that ~errsits the observation of any material depictin d ibi ~ ng g, escr ng or slating to 'specified sexual activities' or 'specific anatomical ' a -ens fsom any public vay or from any property not registered as a adult nse.• This provisi~a was under the a di . r aance app cable ~ •any display decoration, sign,"shoe vindov, or store opening • ll os et . .Wa y, fines of not less than fifty dollars (;50.00) nor more Wan two hundred dollars (5200 00) i he . were mposed for each offense ' - yith the provision that in the ease of a continuing offense ~-~ he ' to ~, day during which the offense continued could be~eounted as a ' he ate case. __ n9 ~cuaDaIry oriented c busi a ses a in d 1977. an lnterestingly~lvhile ax allas is a zoned city, this regulatory ordinance vas sot made i- rt of the zoning ordinance, but rather was incorporated into ed e general municipal code. The Dallas osdinsstee, like that in of hieago, vas closely modelled on the. Detroit Inv. Under the Dall:s ordinance, the distance requirement between ' of _xually oriented businesses and areas zoned sesidential vas one - s- ousand feet (1000'). This distance vas measured as a straight ne f gee rom property line to property line of the fro eoaflicting sue :ructnres .without regard to intervening structures. Zt is :nt •structive to note that this one thousand foot (1000') re- 1 rietioa was struck down due t l k 1+0 o ac of evidence as to the ~c terioratinq effects sustained by neighborhoods as in a result of ~e interposition of sexually oriented businesses .so . . pe Los 11n eles. In 1978, the city of Los 7ingeles imposed a :he irty 30 ay moratorium on the establishment of new sexually iented busin i .i- esses n order to provide an opportunity for the e~ to draft a new a d n comprehensive ordinance regulating the ry. (It is not clear whether such a moratorium would be / ibl ti- e under recent antitrust decisions involving the :th #~ ' •Sexaally Oriental Businesses Page 18 mixed into the general run of effiee buildings and retail •. .~ wt,olesale operations. Substantial residential housing or re dential activities were not part of the fabric of tHr 1 neighborhood. The decision to create a Combat Sone proved advantageous Lo the city of Boston for a nmober 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 ]unendment. Second, by ereatirg 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 Hader this scheme able to avoid the difficulties and eoafusions that can sometimes be attendant upon any system issvolving licensing. Ia addition, the Boston approach entailed ' lower administrative costs, gave the city firm control over the growth of the sexually oriented businesses industry, and provided city officials with a controlled environment -- essentially a laboratory -- in which to ~vesiigate the effects of sexually oriented businesses on their surrounding environment. It is interesting to Hate that while the Boston plan has met with ' reasonable success, it has not been copied by any other 7lmeriean city. A~sile the Committee was urged to 'consider the combat zone concept for Houston, the proposal vas discarded at a sather early point in the deliberations. The principal reason for rejecting the concept was the geographical difference between Boston and Houston. Boston proper is a city of fairly limited land area. Houston currently eonL:ins appsaximately 560 square miles. while a single combat zone eight work in enaton, given its limited size, the Committee concluded that a defensive combat zone approach in Houston would require at least several such areas throughout the city. Otherwise, those located at a dis'.ance from the single combat zone might argue that their right of access to sexually oriented businesses had been wrongfully limited. The other problem, of crourse, would be that of Iaeating sites for these multiple ea~sbat zones. 111though several witnesses advocated this approach to the Committee, no witness vas ready to volunteer his or I,er 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 show appears to translate into adverse consequences for property values. • Sexually Oriented Businesses Page 22 ~ .: to pass legislation to asssre public safety, health, morals and other related goals. the cit. also bass its right to regulate as proposed in this ord:na-ee under specific grants of authority from the state, including hrt. 1175, i32 (authorizing regulation by municipalities of places of public aeusement), 71st. 1.175, 523 (authorizing licensing by =u.--icipalities of bnsinesses sus~epti- ble to the police power), Ast. 1175, s24 (authorizing municipal regulation of billboards and other exterior signage), ]frt. 1175, s34 (authorizing municipalities to exercise the general police power), and Art. 2372w (aathozizinq municipalities to regulate bnsinesses chose principal activity is the offering of services intended to provide sexual stimulation oz 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 Coffiittee and Council between Povem- ' her 4, 1982 and October 25, 1983. These findings have already been diseussed.at sooe length in the foregoing subsection titled 'Analysis of Testimony.' one Legislative Findings section of the ordinance briefly snamarizes,Sthose findings. Article Z: Definitions. The definitions intlnded ender Artie e Z ave been care ly crafted to conform with the Commit- tee's intention to regulate as effectively as possible, without infringing on federal constitutional guarantees, areas preempt•_d by state legislation oz the operation of legitimate bnsinesses. Although most of the definitions are by their nature ~4 self-evident, comments on some of the definitions .are warranted feii to anderscore the balance which the Committee constantly sought between effective regulation on the one hand and, as the other, the limits placed on municipal action by federal constitutional guarantees and state law. •Lnterprise,• ments whose ma' for exa_-plc, refers o~ v~l v e_s products to or those establish- services intended to provide sexua r _ stimulation or gratification. Znelnsion of the word 'major' is nd out see bna i asses as eonv - n3enee stores whic h sew plg;~+y or avvi z r s,~, ar L _f _• ~l _. _~ •• t ~L_ _ _ _. _ _ ~t~n. Ia addition, specific exemptions are granted to several categories of bnsinesses. Adult bookstores, adult movie theatres and businesses licensed to sell alcoholic beverages are exempted because of apparent preeaption 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 loeational and perait requirements of the ordinance, they still are subject to specified provisions of the ordinance.) • Businesses licensed by the state, such as those employing S* AS ~u ' 'Sexually Oriented Busii+esscs page 23 psychologists or physicians are alto exempted, as are whose major activity is the selling of eloth.s. businessta.~. The definitions in Jlrticle I also offer good examples of the eonsistenry 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 o! 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 need for family oriented activities,-- that led to including churches among the protected activity categories.] However, it was also concluded by the Committee that at some point a person, even though still is school, matures to the point where the city can no longer re:soaably claim the right to protect him or her from such businesses. ilhils~the nee at which maturity may be achieved by different individuals may vary, it was concluded by the Committee that a seasonable esttott age as a general rule would be seventeen (17), coinciding with earliest usual age of graduation from secondary school. For this reason the definiti of 'school' (7-rtiele I, Section v) is limited •to .public a._.;;,~ private schools used for primary os secondary education.' Jlnother problem the Committee !need in drafting the ordi- nance proposal was to minimise opportunities for circumvention of the ordinance. Concern vas expressed by all asmbers of the Committee and by the Legal Department, that some sexually oriented businesses, eager to escape the loeational restrictions pLced upon them, might start showing movies and :rgne that they were is fact 'adult t~lovfe 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 •1ldult Movie Theatre', which' specifically segaires that such theatres have tiers or rows of seats fse:ng a screen or projection area, making it clear that simply setting nP a projector and a screen will not make a~ modeling studio a movie theater ender the ordinance. 7lrtiele II. Permit Re fired. )Irtiele 2I of the ordinance estab is es at a sexua y oriented commercial enterprises within the Houston city limits must obtain a license from the Director of Finance and ]-dainistration before they can operate. 7-rticle II2. Permit l1 lieations. The requirements wh3 must e u i e e ore a permit may be granted to a sr_xua: oriented commercial enterprise are set out in J-rticle ZII. The ' Sexually Oriented evsinesse's Page 24 list of information to be supplied, which shall be submitted to the Director of Finance and Ldrainistzation, was taken for the ` most part from the present ordinance 28-73. 4his was decided by ~1 the Committee on the basis of issues raised during the hearings. Fos instance, a auztibez o: witnesses cited the problems inherent ist tracking down the person ultimately sespoasible for a partner- ship oz corporation; hence, the Committee has recommended a di closures which, while act onerous to the business enterprise, wil provide informatian adequate for reasonable eatoreement 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 Seats of Texas. The application form shall also include a written declaration that all information contained is 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. 7lrticle Iv. Permit Fee.~~'The ordinance establishes a permit ee o 5350.00 or each permit application. The amount of this fee was based oa testimony by William R. Drown, Director of Finance and 1-dministration, which fixed the cost of processing each such application it within Ten Dollars (S10.OG) of the 5350.00 figure later adopted by the Committee. Since the 5350.00 represents the cost Lo the city of actually processing the 1 application, regardless of whether the permit is approved or disapproved, the tee is payable at the time the permit is re- quested and shall be noasetandable. The pormit shall be good for ' one year from the date of issuance, and shall be renewable annually= the 5350.00 tee 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 zegalatioas estab- 2ished by the ordinance, including Lhe costs of enforcement through inspections of the establishments by city personnel. It should also be noted that just prios to submission o: the proposed ordinance to Council, a genesal review of all fees and charges of the City of Douston was uadestaken. This general review, which will generate the most reliable direct and indirect cost data in the city's history, may psoduee 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. J-t the time of this writing, however, the 5350.00 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 DuSinesse's ?age 25 V. Issuance or Denial of a 1lssuming submitte app station eon orms to t e zequizementa of the ord~ nonce, the Director of Finance and J-dministration must withi~ twenty (20) days issue a permit to the applicant. 111though there are several grounds on which an application toz a permit will denied -- the failure to supply all of the required information for example, or the giving of information that is knowingl false, fraudulent or untruthful -- the most important of thes seasons focuses on certain distance requirements t?ut must be me~ in the location of sexually oriented com>sercial enterprises. (7-gain, exempted from these loeational restrictions are adult movie theaters, adult bookstores, businesses s~slling alcohols beverages, and massage parlors.) Specifically, the ordinane~ world require that all subject businesses be looted not less tIIan 750 feet from a church or school (both terms being define i:s the ordinance) and sot less than 1,000 feet tram each other (Zn the event two such businesses are closer to each other than 1,000 feet, they 7-rtiele VZ, Section 8 provides that a perms shall be issued to the applicant 'having the longer period o enterprise ownership at the same,lQcation for which a rmit is sought. • ) ': _• _ Pe ]1 third distance requirement set out in Jlrtiele V has beets" characterized as the •zesidential eoneentration• test. 11 cir~~ with a 1,000 foot• radius is drawn :round the location of proposed business.' If within the circle thereby determine seventy-five percent (75i) or more of the tracts are residential /that is, if seventy-five percent (7Sl) or more of the tract rare coded as residential, in the city's 1Metrocom computes), Lhe~ the business could not locate there. Conversely, however, should land use in the area become sore coamezeial, such that th percentage dropped belev seventy-five percent (753), the busines sight under a new permit application be granted the right to operate at the formerly unaeeeptsble location. - These distance requirements are good examples of the Commit tee's efforts to analyze the information preserved durinq• th public hearings, to distill from that information the real natur of the problems to be addressed and to then develop solution logically and consistently related to the actual problems. Fo example, rhile many who testified acknowledged the right of suc businesses to exist, and while many of these same vitnesse expressed solicitude for the rights of those who might want to avail themselves of the goods or services offered by such buss nesses, the same witnesses also expressed strong concern abou 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. '_S: reviewing the testimony, the Committee concluded that Y' concern was justified -- particularly in light of some of t.._ 'Sexually Oriented Businesses ~• 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. 11 second set of problems brought outt in the hearings is the detrimental effect that the'elusteriaq.lOf such businesses can love oa a surrounding area. `~Fest-smony from the Chief of Police, as_ well as information supplied by residents of areas where croacentrations of such businesses are unusually high, repeated the point that the clustering of such businesses exacerbate the problems they create by developing an atmosphere in which a 'secondary market' of illicit activities -- both sexual and otherwise -- :re encouraged. .1-lthough most witnesses agreed that the location of such businesses could not be restricted in such a way as to effectively eliminate tlsem altogether, most witnesses -- inelading the Chief of Pollee -- stated that fa their view a 'separation" or •nonelustering• provision would alleviate some of . the problems normally associated with the operation of such ^ businesses. In reviewing this testimony, and in considering the i experience of cities such as` Detroit, the Committee concurred with the judgment of the witnesses and .therefore included a requirement regarding spacing of the businesses from each other. !- third set o! problems identified during the hearings vas , the difficulties created whey these businesses locate in areas that are~pzimarily residential in character. These.pzoblems are aggravate n ouston cause o~~ie wick of zoning laws; in the 1 absence of any ordinance, only deed-restricted developments are allowed some messuze of protection snd 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 Souston. l1t the same Lima, however, many of these °same witnesses indicated their belief that reliance on deed ~~II restrictions as the sole method of protection vas woefully \f ~I inadequate, particularly since so many of the areas most severely 7~ affected by the problem of sexually oriented businesses were ones in which deed restrictions had irrevocably lapsed,. os in which such restrictions had never existed at all. Sn 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 eoneen- tzatioa from the adverse eonsequenees of too many sexually oriented businesses. Concern for children and famiiv-related activities already cite owe with respect to the distance requirement from church and schools was likewise a factor here. Concern vas also felt for the need to maintain some degree of v, stability in residential areas so as to provide_at least a ~ measure of carrespon ing s a i i y in t o property tax base. 7 - •- - ~Scxually Oriented Husinesse's Page 27 ~. Finally, conctrn vas expressed that the protections afforded dee~ restricted areas, however minimal, ought to be extended b providing singular tit not the same) protection to any area with a high concentration of residential usage. (J1lthough th aCreastless ~resideatial in ehazaeter,sitewas raot thonghtcthat th~ same policy considerations applied with equal force as area became 'less residential. •) Zn evaluating these distance requirements, the Commute also remained sensitive to ooneerns that Mere raised dozing th~ bearings by opponents of the ordinance. For instance, at leas one of the lawyers zepreseating some of the businesses that will be affected by the ordinance argued that the 'residential concen~ tratioa• test vas tantamount to zoning. 1ltter careful eonsidera tion the Committee respectfully disagreed. To'tIIe Committee, there is a great deal of difference berieen an ordiisaaee ereatin a zoning commission which then proceeds to establish use aate~ gorses for entire areas of the city and an osdiaanee which merely sequires that it the market a operating freely, has resulted Sa ar~ certain businesses ea of locate vithiaialtixeud distance opt that area. Za the first instance, the city dictates land usage s- only a change by the city is the ordinance fixing such asage w: permit 'deviation from flat role. Ia the second instance, th~ city merely provides that in the event usage in a particular area should through operation•ot the tree market develop along certai~ lines, then certain restrictions will be involved. Conversely, should the market dictate a change in overall usage of an area (as in a ease where an srea formerly predominantly residential became commercial), then Use city restrictions would be lifted, The ditf~renee might best be characterized :s that between active and passive -- or 'reflective' land management. The Committee also took quite seriously. the eorcerns ex-~ pressed daring the hearings by some zepzesentatives o! the affected businesses thst determining whether a proposed loeation~ would eoatorlb with the ordinance would prove unduly burdensome and costly, Aowever. Ilse Committee believes that introduction of the !letzoeom computerized mapping rystem into city government 1 effectively answers this concern, l-s stated is testimony offered before the Committee by 1Cen Strange, the ketzoeom administrator, it will be possible, for a. minimal charge which reflects the actual cost of computer and eierical time, to determine in advance « and within just a few hours -- whether a particular anderstheseizeuasstancesss the Committee xconeluded ethat tisse l're~-' idential eancentration• test vas not only a suitable remedy f, same of the problems adduced during th. bearings, but also thaL~ ~~ 'Sexually Oriented Husinesseb page 28 the test Would not place an undue or unfair burden on the businesses to be requlatrd. l1 brief eommeet should be made With respect to the appeals process established to provide recourse from permit denials by the Director of Finance and Jldministzation. Wtsile an initial appeal hearing before the Director is provided for in the ordinance, the Committee felt that given the nature of the issues ~i involved, and the desire to assume that the ordinance in both theory and practice did not operate to abuse individual rights, an appeTto Connell should also be provided. This has been done in Article V, Section E. Article tiI. bcistina Ente rises. The method of transition from t e present situauoa to t under the new ordinance, and _ specifically the treatment of previously existing businesses ander the neW ordinance was the subject of eansiderable thought by the Committee. The results o! that lengthy consideration o! the transition problems are embodied in Article VI. Section 71 of ]lstieie OZ provides the timetable ender 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 o! these quadrants. Section 8 provides that where tWO. subject ~~ V businesses are within 1,000 feet o! 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 way to treat the difficult problem of dealing fairly with businesses too close together to eamply 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 \ ' a subject business is closer than 750 feet to a church oz school, V that business will not be zegaired to abandon the location i! it can be shown that the period of enterprise ownership at the same location exceeds the length o! tine the church or school has been ,. located at that site. Sections C and D of 1~ztiele Vi deal with Llse diffienlt issue \,o! grand~athezinq versus amortization of existing businesses_ The Committee decisions with respect to the issues raised by this question again exemplify Lhe 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 .r During the hearings, it became evident to the Committee th the problems created by sexually oriented businesses had been" allowed to persist toz so long that merely addressing the problem "Eton here on out" would not be adequate. Prospective legis- lation would do little oz nothing to alleviate the current serious problem caused by businesses already existing. The Committee there tore concluded that existing businesses should eoam under the ordinance; for this reason the Committee rejected grandfathering at existing businesses and determined that amoz- tization would be the appropriate approach. Jlt the same time, however, the Committee recognized that even it existing busi- nesses were to be brought Hader the ordinance, this could not be done in a way that would ignore the imrestments that had been siade in the businesses (and therefore rims facie nneoastitu- tionslly deprive persons of their property ws nt jest compen- sation,). The_Committee understood -- and it it had not, it that even under as amoztizatio could not be so short as to =f# subject businesses of their'' compensation. v e at Lepartmenz - n approach the amo a son period ectivtly deprive the owners of~the property interests without jest Sensitivity to the need for an adequate ~sortizatioa period was frustrated, however, by the lack of evidence is the bestir record oa which the Committee could base. its decision as to wha~~:~ eoastitutes an appropriate amortization period. No a+ember of the affected industries, nor owners oz representatives of atfeet'd individual busines:es, appeared before the Committee for purposes of offering testimony on this point. (One owner of as adult bookstore did suggest, by written eorzespondenee to the Commit- tee, that the amortization pssiod be extended to tea (10) years; however, the Committee believed that this suggestion was un- realistic. Certainly the seeommendation vas sot supported by any t:etual data.) ' Zn tIse absence of such testimony, the Committee found itself in a difficult position. iihile the Committee admittedly wished to legislate the shortest possible period within which subject businesses mast come ender the ordinance os, alternatively, abandon their present locations, the members did not want to iapose a time limit that, based on actual numbers, was unfair. The problem, however, was that the numbers were sot 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.) ~" 'Sexually Oriented eusineasrs r. Page 30 . ~ Zn the end, t he Committee devised ordinance provisions -- Sections C and D of Article VZ -- which deal with this dilemma in an effective, fair and practical wsy. Section C of 1lrticle vZ provides that it an existing business cannot quality for a permit under the ordinance, then that business shall terminate its operations at that particular location within six months after the business receives aotiee from the Mzector of Finance and Administration of its ineligibility for a permit. However, should any business so aotified believe that six months will be iasuftieient for the business to seeoup the investment represented by the enterprise, then the owner or owners of that business shall have the right to petition the Director of finance and Admiai.stz;tion for sn extension, which can be as long as the Director determines appropriate based on the evidence presented. The Committee believes this approach adegoately answers the dilemma presented by the lack of tactual testimony in the record as to the earning capacity of these businesses. The provisions set forth a seasonable minimum time period for compliance that speaks to the Committee's desi;e SQz.speedy imples+entation of the osdinanee. At the same time, businesses which believe six months is too short, can, it they choose, come forward with books and records supporting their contention that they are entitled to a longez amortization period -- indeed, to as long an amortization period as they can prove. Should the Director of Finance and Ad~afnistration refuse to grant such art extension despite the evidence submitted os should the extension be less than that reasonably justified, the decision could be appealed to •the Council under Article V, Section E. And it 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 a:prieions exercise of disesetionary authority under those doctrines relating to taking of property. The Committee believes that this approach is fairer and more feasible than fixing a longez period of amortization effective with respect to all businesses. :Mozeovez, this approach avoids the need to subpoena books and seeords from business owners tuswilling or at least hesitant to divulge financial information in ordet to develop an amortization period grannded in a hearing record. Znstead, 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 a:tension of the six month time limit. This assures the business ownes maximuA 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 Businesses Page 31 Jlrticle VI2. Revocation of Permit. The Committee in heari. testimony eeame coneerne not lust a out the circumstances 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 term o! the pesmit. For this reason, the Committee requested the drafting of ' provisions that dealt with the psineipal problems testified to dn~ing the hearings as to the operation o! these bnsinesses. These common problems can be classified as follows: • !linors as Em to ees. ]- number o! witnesses before the mmittee expressed concern, particularly with regard to adult modelinq•stndios, as to the actual age of some persons employed on the premises. ]lrticle VZZ, Section J-(1) provides t2ut a permit shall be revoked if persons•nnder the age o! seventeen (17) are found to be employees of a subject enterprise. Seventeen years o! age was selected to comply witls selevant state law. 11 companion provision, Jlrticle XI, prohibits the entry upon the premises o! such bnsinesses o! anyone younger . than seventeen, and requires"each affected business to provide an attendant to assure compliance with this prohibition. ' Dcterior J1 azance and Si4na4e. J-Ithongh a majority o t e witnesses appearing before the Commit- tee felt th:t the control o! the exterior appearance and signage of such bnsinesses would help deal with the negative effect of such businesses on neighborhood stability and property values, most also stated concern that such provisions, it enacted, would not be heeded seriously by the businesses in question. In 'consider- ing these arguments, the Committee concluded that effective enforcement of these psovisions vas a ne~es- sity. The Committee therefore provided that violation of these provisions will result in loss o! the permit to do business. Recurring or Chronic Criminal Jletivity. ~ consis- tent a in a testimony ore a Committee, whether offered by experts, citizens with specially significant experience with sexually oriented busi- nesses or members of the general public, was the problem of associated crime taking place in these establishments without action being taken by the city oz any other suitable authority against such establishments. Once again, many witnesses stated that while they understood Lhe need to accept the right of such businesses to exist, they believed there vas a need to provide sanctions' against those businesses °" ~ Sexually Oriented Businesses r Page 32 r^ which operate outside the law oz 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 persona are adjudged guilty in a trial court of committing certain criminal acts (as specified in Chapter 21, Chapter <3, Section 22.011, or Section 22.021 0! the Texas Penal Code) on the premises of such a business, the perait of that business will be revoked ft can be shown that the owner or operator o! the siness either knew o! the activities and did not seek to prevent them, oz else failed to take adequate steps to become aware o! the activity. • The Committee believes that th. cancept o! three or more persons being found guilty in a trial eonst !serving as the triggering mechanism for this position :is both fair and effective. Requiring actual eoavie- _ i v t ons deals with the coneerir expressed by some during the hearings that such a provision, if triggered only by a certain b f num er o arrests, would encourage police harassment o! such establishments. The sensible alternative appeared to require judicial action on the arrest. At the same time however b , , mem ers o! the Committee were keenly arnre that the pace o! the judicial process makes it unlikely Lhat in say one-year period three or more persons would be arrested, tried and 2uve their eases heard at all levels o! appeal. Given these realities, Article VII, Section A(3) represents s compromise in which judicial action is lit , required, but completion o! the appeals process is not. Moreover, should a particular business Dunes feel that this sevoestion mechanism is being used improperly against him because of .same defect in tlse adjudications relied upon, this issue can be raised independently in the appeal on the revocation where the Director can they make a determinati th i on on e mer ts o! the argument separate from the criminal process. lion, e o e most signs scant i icu ties 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- o! accurate and complete data. In many instances according to testimony this lack o! information is due to the businesses • themselves, which engage in practices ranging from legally complex schemes of corporate ownership that - 'Sexually Oriented Businesses Pegs 33 . • - - .r _ obscure true authority and control to outright ~` falsehoods and f_audulent misrepresentations with ~- respect to the operations of a business. Zt is of course impossible to divert those who are determined to undertake such actions from doing so. scat the Committee concluded that a siajoz 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 VZZ, Section A(4). As a concluding comment, the Committee would point oat 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 !'inanee and Administration, that decision wnld be subject to appeal to a state district eourtrt.• ~•;. - Article ZX. Other Permit Provisions. Article ZX includes a mer_ber o mssce aneous cat smportant provisions. Section ~- requires posting of the permit on the premises of the business authorized by that permit. The permit must be posted in as "oq and conspicuous' place to assure ease of enforcement~by publi~<~ officials. (Open and conspicuous posting of the permit also benefits the business, since it allows for a cheek of the per- mit's existence with a minimum of disruption to normal business cperations.) Section D makes all permits issued under the ordinance good only for the location for which the permit vas originally issued; in addition, permits are not assignable or transferable. This latter provision vas 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 whey Hader scrutiny (as during a court use 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 suit) is dealt with by making nay such change of ownership grounds for termination of the permit. Section C of Article SX slakes it unlawful to counterfeit, forge, change, deface oz alter a permit' in any way. Articles ZX and X. Restrictions on Exterior A~oear:nee and Signage. Article IX w ieh covers a sexua y orient~ssi- nesses, as well as adult bookstores, adult s{ovie theatres, a.- massage establishments, sets restsietions regarding the extern '•' 'Sexually Oriented Businesses `' Page 3t . • . rr .• !~ 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 oz services to be visible froc+ any point oct~ide the establishment. second, the ordinance terbids the use of tlashinq lights oz 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. Thisd, the ordinance requires that all sneh businesses be painted a single achromatic color -- that is to say, some shade of grey. ~cceptions to this sequizement are permitted where the business is located in a commercial multi-uaii center where the entire center is painted the same color, or where the color scheme employed is part of as overall azehiteetural 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 eonforsaity with these provisions of the ordinance within six months of the !~ effective date of the ordinance. Article X regulates ths:signage of all sernally 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 sign' -- 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' mast 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, oust be rectangular, mns.t not exceed 75 square feet in area, sad must not .exceed 10 feet fn height and 30 feet in length. The second type of sign is the 'secondary sign.' A •sacondary sign,' while smaller than a 'primary sign,' has fewer restrictions placed on it. 'Secondary signs' are regulated 'only to Lhe extent that they must be attached to a wall or door of an establishment, must be rectangular, must not exceed 20 square feet in stns sad must not exceed 5 feet in height and < feet in length. Mon-conforming signs must be removed or made to conform within six months of the effective date of the ordinance. Dcten- 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 ..,T ._ _.. .._~._...~_ ..._~._.__ _. ~_._. .~..~ __ .... ____ _~._ _ __ ' Sexually Oriented HuRineases Page 35 , . •• is virtually identical to the procedure set out in Article vl Sections D through E, 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 fro~a expert witnesses and members of the lay public, regarding the problems caused by the exterior appearance and signage of the businesses. Agaia,•the majority of witnesses admitted the right of ~sueh businesses to exist, and a number of witnesses pointed oat what they believed to be the state-imposed limitations on the city's ability to regulate the location of certain kinds of these businesses, such as adult mobie theaters and adult bookstores. However, it was also pointed out to the Comaittee by a number of witnesses that despite these concessions, aetion~ahonld still be taken to minimize the adverse effect of these businesses on their surrounding neighborhoods. The Committee found in hearing testimony that these adverse e:teets take several forms.` ,li~rft, a number of experts in ~•.Aauston real estatetestified that -the businesses advezaely affect the value of adjoining and neighboring property. Specific examples of this phenomena were cited to the Committee daring ita hearings. (Similar testimony was offered daring the additiona bearing 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 zepze~ecntations, used by these businesses. This testimony from lay persons was eosroborated 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 neighboziag properties and on children -- seemed to the Committee to be part of the more general problem of presevinq a reasonable level of quality of life in Houston, a problem of paramount importance if the city is to aaintain a stable community environment where property values are maintained (an essential element in any consideration of municipal finances, for example) and furt?ser investment is eneonraged. There vas considerable testimony, for instance, to thR effect that the current situation along lower westheim~z is impeding economic redevelopment of the area. The sexually oriented businesses clustered in that area are apparently able to pay extraordinarily high monthly.z~nts -- businesses can afford. non-sexually oriented much higher than non-sexually oriented The result has been the 'shutting out' c' businesses, which could surviv~F~ ~' Sexually Oriented Businesses ~ Page 36 , • ~ ., w ~r ~~ economically except for the artificially high rents. (In addition, there was considerable testimony as to how the atmosphere created by the clustering of such busin'ese made it difficult for non-sexually oriented buaiaesses to attract sufficient clientele to be successful.) This inability to attract 'seed bnsinesses• bas is turn made it difficult to encourage other larger-scale quality development in the area. It has also discouraged those who wish to reside in thereby continue the mixed-devel a d e f l t l the area th t and h - ap n an p an o use a as historically made the !!oatrose a unique community. . Sa response to these problems, the Committee did not propose steps that would ban sexually oriented bnsinesses altogether. Sastead, the 'remedies proposed world Iimit the concentration of such businesses and their obtrusiveness even where allowed to . locate; it is the intention thereby to create an economic situation is which other type's of businesses might also be encouraged to locate is an area, thereby achieving a more balanced urban mix. Where the particul:r type of business could not be regulated as to its.~.ecatioq -- as in the use of adult 1 bookstores or adult movie ~2reatses, thanks to the apparent preemption of any city action because of state law -- the Committee recommended the next most effective and available action: namely, to make tbs businesses as unobtrusive as possible, sad to minimize the negative impact of the businesses on their surrounding areas through controls on sigaage and exterior appearance. There were those who argutd to the Committee that the sigr~age of sexaally erieated businesses is no more alluring than that associated with other outdoor advsrtisiag. Otbez 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. Ba.sed.oa all of the testimony, however, the Committee concluded that the qualitative difference between the sigaage and exterior appearance regulated under thi: ordias:sce and other sigaage and exterior buaiaesses themselves. Based on the testimony, it is the opinion of the Committee that sexually oriented busines:es have adverse effects oa their susroundinq neighborhoods unlike any negative effects t?ut could be sboan by strip shopping centers in general, eoavenieaee stores or other commercial establishments. ]1s the. Committee reads the testimony of those witnesses deemed most credible, a clear ease is made that sexually oriented businesses, because of their unique adverse eonaequeaees on the surrounding neighborhoods, require regulation in whatever way reasonable possible to minimize those adverse eonaequences. Zt is also the Committee's finding -that based both on the testimony and the experience o£ other city's, the single most ~. . ,'• Sexually Oriented SusisiesseS Page 37 •• • !~ •• • ~ ~ ri effsetive action to be taken with respect to sexually orie~~, businesses is to restrict their location. However, locati restrictions by themselves are not enough;_where the law allow these should be coupled with restrictions on external signage a appearance to minia+ize the obtrusiveness of the sexually orient basiness wherever located. iihere thanks to sate law the city's sight to regal:te location has been preempted, the need strictly regulate exterior signage and appearance becomes ev score critical as almost the only meaningful tool left in the awnieipal arsenal to deal vi~it h o! Houston lit~d by sexual oriented businesses for the qn Y 7lrticte XS 7-ge Restrictions on Entry. A recurrent th is the tertiaoay ore the commiLZ^~ ••a~ the effect of the businesses upon children, which in turn would affect the qualit} of life in Sonston. One of the specific problemi~ considered the Committee in this regard was the entry by minors onto t premises of such businesses. The Committee felt that barrinc persons under the age of seventeen from entry onto the premis of a sexually oriented basiness -- which in this instance wou include as adult, movie tbeitze; adult bookstore or masse esablis~nent -- was a zaasonable response ~to this concern. Section II of 7-rtiele X2, placing as affirmative duty on establiaent Lo enforce this provision seemed to the Committee. be the simplest, most reasonable means of attaining entorcemer. of this article, particularly as the alternative would be a nnaber of roving inspector:, the-cost of which would moat la..~. be borne by the establishments through the permit fee. hztieie ZZI Restrictions on Employment of liinors. ~~ -~ sexual addition t~ coaCerA aDOnL zne: ~f Ciiii..G V~ r~..Y~- oriented bnsine;sses as erstamers, the Committee also rseei testimony indieatiag th:t minors might be employed in sane ~: thsse businesses, partiestlarly the adult siodeliaq studios. this reason, the Committee fslt .it neeesury. to. include specific prohibition against the employment of persons wader t~~ age of seventeen is sexually ozieatsd businesses =- aq including adult movie theatres, adult bookstores .and missa establishments. Article X2I2. Priori of Ri ht. Oae issue raised Burin the ittee s e eratioas was wheth•.r a sexually ozisn ~/ enterprise, once lawfully permitted, could lose its permit i school or church were to be establish•_d within 750 Poet of th enterprise, or if seventy-five per cent of the tracts of 1 within the calculated circular area were to become residential accordance with the terms and conditions of Article Section B(3).' After substantial deliberation, the Commit concluded that the 'prior in time, prior in right' doetz~ should be consistently applied. A church or school •i~ ,s : -. Sexually Orfented Susinesaes Page 38 r .. • .. • ~ ~~ ,~ ~ A +~. knowingly chose its location despite the prior existence of a sexually oriented commercial enterprise, were not deemed by the ±"''' Committee to oeeup}• 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 Coannittee did provide that ttsis right to continued existence `„ world terminate with the expiration without timely renewal or revocation of the permit. Article XIV. Effect on !assn a Establishments. The City of Houston a rea y s one or nuance governing massage sstablishments -- 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 De deemed to exist between ~! Chapter 27 tad this new ordinance, however, the provisions of the lii new ordiance vill govern. ,-r Ll~iC3 wv - ~yx, AGC1LlOna1 irovfsfona. Articles XV throuq x are ac itiona provisions eeme necessary by the Committee for a complete tlsd'.effeetive ordinaaee. Article XV sets the rules regarding notices under the ordinance; all such ' notices moat be sent in vziting and vill be considered as having been delivered there days after their delivery to the Q.S. !!ails. Article XVI makes viol:tioas of .the ordinance a Class C a:isdemeanor= each day a violation eontiriues is deemed for purposes of the ordinance as a separate offense. Article YVII establishes the authority of the Direeter of Fiaanee and ~" Aministzatioa, oz his duly appointed snbozdinaates, to enforce Hf the ordinance, if necessary by lawful entry by means of a search warrant onto the premises of the business is question. 1-rtiele XVZII empowers the City Attorney to file snit to enforce this ordinance. Article XZX provides that if any provision of • the ordinance should for any reason be held invalid, the remainder of the ordinance shall continue is full force. and effect. ~ COHCLIISZON The Committee has attempted to shoe in this Report that the rev ordinance regulating sexually oriented businesses is not a 'knee jack' response to public complaints about such establish- ~ meats. Rather the ordinaaee is the cumulation of over one year's work during which time citizen input vas received, specific problems were identified, various remedies were considered, and legal contours w..re set. The Committee candidly acknowledges that a more restrictive ordinance vas envisioned in the early days of the. project, as reflected by the draft initially propagated by the Committee. tim+evez, such a restrictive ordinance could not be sanctioned if the Committee were to adhere I~ ~~ -~ Sexually Oriented Bvsitiessei~ Page 39 - •- • r to its goal of striking a careful balance beteeen the sights '~~ those persons who do not wish to be exposed to sexually osientea:~ businesses and the rights of those persons who wish to operate oz patronize such estiblishments. The Committee earnestly believes that the current proposed ordinance achieves that goal, and that the ordinance proposed Lo Council sepresents the furthest legally defensible extent to which the city can qo in the regulation of sexually oriented businesses. _- .. _ 1Rhouston http://www.communitydefense.org/cdcdocs/landuse/h[mUtxhouston.cfm HOUSTON CITY COUNCIL SEXUALLY ORIENTED BUSINESS ORDINANCE REVISION COMMITTEE LEGISLATIVE REPORT ~' 1 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydcfense.org/cdcdocs/landuse/html/txhoustoacfm ~, COMMITTEE MEMBERS: i Jew Don Boney, Jr. Helen Huey John Castillo Ray Driscoll Joe Roach Judson Robinson, Jr. Gracie Guzman Saenz Orlando Sanchez ~. o,.va~ 11/30A9995:11 PM TXhouston http://www.communirydefense.org/cdcdocsilanduse/htmVtxhoustoacfm .~ P 3 ~, January 7, 1997 ~. ~. Table of Contents Introduction History of the Ordinance Description of the Committee's Work General Findings and Conclusions HPD Vice Review Public Hearing Summary Review of Written Correspondence ~" 3 of 39 11/30/1999 5:11 PM iY TXhouston http://www.communitydeferase.org/cdcdocs/landuse/htmUtxhouston.cfm ~ Committee Recommendations r ~+ A. Adult Arcade Ordinance Changes B. Procedural Changes -SOB Enforcement C. Land Use & Related Changes D. Conduct and Operations E. Amortization Section by Section Analysis Conclusion INTRODUCTION This report has been prepared by the Sexually Oriented Business Revision Committee for the purpose of summarizing the Committee's work in drafting a proposed amendment to Articles II and III of Chapter 28 of the Code of Ordinances, Houston, Texas. In addition, a new Article VIII has been proposed to be added to Chapter 28. These summaries include prior efforts of regulating sexually oriented businesses (hereinafter "SOBs", testimony by the Vice Division of the Houston Police Department, reports and requests, citizen correspondence, industry memos, legal department research, and summaries of the principal themes heard in the public testimony taken by the Committee. ~,,, The Committee's intention is to supplement prior reports issued in 1983, 1986, and 1991. The !~" 4 of 37 ll/30/1999 5:11 PM TXhouston http://www.communirydefense.org/cdcAocs/landuse/htmVbchoustortcfm original Ordinance was adopted in 1983. The 1986 Supplemental Report included premises that serve alcoholic beverages. The 1991 Supplemental Report addressed the addition of adult bookstores and movie theaters as regulated enterprises within the Ordinance's land use controls. The primary purpose of the current committee was twofold. First, the Committee desired to review the existing Ordinance and the City's ability to enforce the existing Ordinance. Secondly, there existed a need to assess and analyze the Ordinance with regard to its strengths and weaknesses and review them with regard to how effectively this Ordinance ~'"' protects the interests of the public as well as the rights of the businesses subject to regulation. tr These amendments and additions relate primarily to the licensing of SOB employees, lighting configurations, distancing requirements between land uses, prohibition of "glory holes," ~'" elimination of closed-off areas, public notification of sexually oriented business applications, M+ clear lines of vision, and dancer'no-touch" policies. SOBs enjoy Constitutional protection and must be allowed to exist and operate regardless of feelings about them. If the regulations were to be so onerous or so burdensome that they preclude or inhibit them being able to even exist, they would likely be declared unconstitutional The Committee made it clear, both during the hearings and afterwards, that it was not the intention of the Committee to 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. Therefore, the challenge is to keep SOBS from infringing on the rights of citizens without denying SOBS a reasonable opportunity to operate in the City. This report is not intended as a legal treatise on the regulation of SOBs, although the Committee was guided in its deliberations at various points from advice by the Legal Department and received numerous legal comment from counsel for the regulated businesses. This report is intended to be reviewed from a lay perspective for the use of the members of the City Council and members of the public in understanding the reasons that the amendments and additions to the Ordinance have been proposed. This report is intended only as a summary. The Committee has developed extensive files in connection with its work that are available for review. On May 24, 1996, the Mayor's Office announced the members of the newly re-created committee, now entitled the "Sexually Oriented Business Ordinance Revision Committee." Council Members Jew Don Boney, Jr. and Helen Huey served as co-chairs. In addition, Council Members Castillo, Driscoll, Roach; Robinson, Sanchez and Saenz served as members. HISTORY OF THE ORDINANCE S of 37 ll/30/1999 Sa l PM 'IXhouston hrip://www.communitydefense.org/cdcdocsilenduse/h[mVtxhouston.cfm F The existing Ordinance had its basis in the work of the 1983 City Council Committee on Sexually Oriented Businesses that resulted in the adoption of Ordinance 83-1812. The history or the Committee's work is documented in the report filed with the City Secretary in connection with Ordinance 83-1812. This ordinance adopted a land use program that was controlled through permits and various incidental regulations for SOBS. Its focus was on regulating adult modeling studios, adult entertainment parlors, adult massage parlors and other similar businesses. Ordinance 83-1812 did not extend land use controls to premises that had alcoholic beverage permits and licenses, to adult bookstores or to adult movie theaters because the state enabling law upon which the Ordinance was predicated did not then authorize land use controls on those forms of adult businesses. See former Art. 2372w Tex. Rev. Civ. Stat. Ann. In 1985 the Texas Legislature revised the state enabling law to delete the exemption for premises that held alcoholic beverage permits and licenses. Following the revision of the state enabling law, the Committee reconvened to consider adding the so-called "topless bars" to the land use control structure of the Ordinance. The Committee reconsidered its prior work and took additional evidence relating in the adoption of Ordinance 86-323 which extended land use controls to the topless bars and placed the Ordinance into substantially its present form. The work of the Committee in the submission of Ordinance 86-323 is extensively documented in the Legislative Report filed with the City Council at the time of its adoption. The genesis for the 1991 proposal amending the Ordinance related to circumstances virtually identical to those that arose in 1985. The Legislature in its 1989 session again amended the state enabling law. The 1989 amendments deleted the exemption from land use controls that had formerly existed in the state law for adult bookstores and adult movie theaters. However, some of the evidence received from the public in 1983 and 1986 related to adult bookstores and adult movie theaters. For this reason the Committee drew upon its 1983 and 1986 works in the preparation of the amended Ordinance draft and regarded the 1983 and 1986 evidence and experiences as pertinent to its 1991 work. The scope of the Committee's recent work evolved as a result of increasing community concern regarding the proliferation of Sexually Oriented Business under the existing regulations. In addition, the Houston Police Department urged the City Council to consider means to control serious violations that were increasingly repetitive at numerous SOB establishments. Because of these requests and concerns the current Committee was established to review and strengthen the existing ordinance. it 6 of37 11/30/1999 5:11 PM TXhouston http://www.wmmunitydefrnse.org/cdcdocs/lar~duse/htmVMhouston.cfm A DESCRIPTION OF THE COMMITTEE'S WORK General . The Committee was re-established in the summer of 1996 to review ideas on strengthening the current Ordinance. The Committee has conducted its business in public meetings. These meetings were posted on the City Hall bulletin board and were typically attended by the Committee Members, City support staff and interested members of the public and/or the regulated businesses The Committee also conducted three of its meetings as public hearings at which members of the industry and the general public testified. Along with the City Hall posting, notification of these public meetings was published in the newspaper and letters were sent to civic associations, individuals who had requested participation, and current SOB permit holders. The mailing list consisted of more than 1,000 names and was maintained in the office of Council member Huey and the Mayors Citizens Assistance Office. Proponents and opponents of the regulation of SOBs were encouraged to speak openly of their ideas and viewpoints. In addition to these public hearings, a significant number of people chose to voice their opinions through written correspondence to the mayor, city council, and/or legal department. The authors of these letters consisted of civic association presidents, topless club owners, City of Houston citizens, SOB dancers, state elected officials, advocates of various organizations and other concerned citizens. There are approximately two hundred and seventy-five letters on file. Most urged for the strengthening and enforcement of the current ordinance. While others stressed First Amendment rights, some urged industry cooperation, and others voiced concerns about the growing number of unlicensed SOBS. Findin s and Conclusions . Based upon these proceedings, the committee has made additional findings and conclusions to supplement previous legislative reports. First, because of the criminal activities that are associated with SOBs, the Committee ~! determined the necessity of licensing all SOB entertainers and managers. Requiring an iil entertainer or manager to be licensed would establish a foundation for documenting those who have previous convictions for prostitution, public lewdness and other similar offenses. In addition, licensing could help eliminate underage entertainers because they would be required to prove that they are eighteen or older in order to obtain the license. Second, the Committee found that there exists a serious predicament in the enforcement of public lewdness, prostitution, indecent exposure, and other criminal activities. Vice officers testified that because they do not engage in inappropriate behavior (such as removing their clothing), convictions are difficult to achieve. The officer's non-participation is perceived by the entertainer that he is working under cover. The entertainer. proceeds with caution, 7 of 37 1(/30/1999 Sa I PM ww TXhouston http://www.communirydefense.orgicdcdocs/landuse/htmlitaJ,ouston.cfm ES W avoiding lewd behavior that might normally occur. In addition, when a patron is charged along with the entertainer, it is difficult to obtain a conviction because of the sensitivity of the relationship between the two accused. Third, the Committee was shown a video by the HPD Vice of a bookstore "glory hole." These exist in small rooms or booths in which individuals are admitted and permitted to use one or more arcade devices. The enclosed booths are joined to the neighboring booth by a hole in the wall. These "glory holes" are used to promote anonymous sex and thus facilitate the spread of sexually transmitted diseases. Fourth, the Committee found that sexually oriented businesses that did not have clear lines or vision encouraged lewd behavior or sexual contact. Many businesses are designed with areas that are out of the view of managers and are conducive to illegal behavior. Entertainers are cognizant of these areas where violations can occur unobserved by management or law enforcement personnel who are conducting open inspections. For example, high back chairs are used as barricades to shield illicit behavior. In addition, testimony revealed that private, secluded, dimly lit areas have the same effect. Testimony revealed that once the entertainer felt comfortable with the patron, ruling out that he was an undercover officer, he would be asked to move to a more private area. In some cases he would be asked to pay a fee to enter the "VIP" room by either purchasing a membership or purchasing an expensive bottle of champagne. HPD cannot always afford these admittance fees in the course of investigations and often cannot access and monitor these specific areas. Fifth, the Committee considered the issue that multi-family tracts were being counted as one tract in the residential quota, when in actuality, many families were living independently upon one tract. Through the Planning and Development Department a new formula was established band on average homeowners' property size that would account for the piece of land. These new figures were used to achieve a residential formula of eight single family tracts for each acre of multi-family tract. In addition, those lots pitted for residential development, but currently unimproved, were added to the residential tract formula. Sixth, inadequate lighting prevents managers and police officers from monitoring illegal activities. Often the lighting is so dim that an investigator cannot observe the activities from one table to the next. Vice officers testified that smaller businesses use lighting as a way to camouflage illegal activities. As a measurement for responsible lighting it was suggested that the requirement be similar to those minimum requirements established by the Uniform Building Code for exit' signs. Seventh, the committee determined that enterprises that had locked rooms, were often used as fronts for prostitution. An entertainer would simply request the patron to remove his 8 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefrnse.org/cdcdocs/landuse/html/bchoustoacfm ( YY r. clothing. Those who objected were deemed to be Vice officers therefore restricting the usual services of the entertainer. The more money that a customer showed, the greater the 'services.' Eighth, in keeping with the theme of family preservation, the committee was urged through public and expert testimony to include public parks in distancing restrictions. A "public park" is defined as a publicly owned or publicly leased tract of land, whether situated in the city or not, designated, maintained and operated for public use for recreational purposes by the city or any political subdivision of the state and containing improvements, pathways, access or facilities intended for public recreational use. The term "public park" shall not include public roads, rights-of-way, esplanades, traffic circles, easements or traffic triangles unless such tracts or areas contain and provide improvements or access to a recreational use by the public. Additionally, members of the Committee felt that the testimony supported inclusion of "private parks" as a protected land use. The Legal Department was asked to consider possible inclusion of this category in the final draft Ordinance. Ninth, repeated testimony requested that notification of a pending Sexually Oriented Business Permit be given to surrounding neighbors of proposed sites. It is within the framework of the current case law to require a SOB applicant to post signs on the proposed site in addition to publishing an intent to apply for a permit in the local newspaper. Testimony revealed a great deal of concern over the general public's lack of warning of the SOB application until it has been approved and opened. balancing of interests justified continuation of the amortization Tenth, the committee found that continuing the amortization provisions of the previous Ordinances would be preferable to grandfathering the sexually oriented businesses that do not comply with the amended Ordinance. Grandfathering would allow nonconforming uses to continue under the new ordinance in perpetuity, or until market forces wiped out the business. Grandfathering creates a monopolistic position for non-conforming property uses and prevents the municipality from exercising its power to protect its residents. Under the amortization provisions of the previous Ordinance, a business regulated as to location had six months to come into compliance. However, if such a business believed that six months was an inadequate period in which to recoup a reasonable return on invested capital, the business would have the opportunity to request an extension of the compliance period. In light of this recourse, and taking into account the present, ongoing and serious detriment of such businesses pose for the community at large, the Committee determined that an appropriate HPD Vice Review provisions. ~" it 9 of 37 11/30/1999 5: t I PM 774ious[on http://www.commu°itydefrnse.org/cdcdocs/landuse/htmVbchouston.cfm The Houston Police Department's Vice Division played a major role in providing the City with statistics, details and testimony regarding their experiences with SOBS. In addition to written reports, three undercover vice officers testified at the August 29th hearing. Currently, the licensed SOBS are broken down as follows: 36 Topless Clubs 9 Adult Theaters 9 Nude Clubs 4 Video Stores 28 Modeling Studios 28 Adult Bookstores In addition to the above list, there are approximately 18 adult theaters, bookstores and video stores with injunctive relief under federal court order in pending litigation styled, 4330 Richmond Avenue Incorporated, et al. v. The Citv of Houston. The City cannot enforce the SOB ordinance against the enterprises while the litigation is pending. Between-July 1, 1995 and August 31, 1996, the Houston Police Vice Division recorded 517 arrests in SOBs resulting in 355 convictions, or a conviction rate of 69°k. Topless clubs experienced 289 dancer arrests with a conviction rate of 59°k. In addition two managers were. arrested but not convicted. There were six patrons of adult theaters taken into custody, resulting in a conviction rate of 83°k. Dancers in all nude clubs accounted for 31 arrests, of which 71 % were convicted. Thirty-six patrons of adult video stores were arrested resulting in an 86°~ conviction. The modeling studios' record consisted of four arrests and one conviction. One hundred and forty-nine patrons of adult bookstores were arrested with 125 convictions (84°h). Of the 36 topless clubs, the number of arrests per club ranged from 0 to 50. While seventeen clubs had less than 10 arrests in the last two years, one club had 50. Prostitution, public lewdness, narcotics, and indecent exposure made up these violations. Auto thefts are also on the rise in topless bar vicinities. This is due largely to the fact that a thief knows that he has about an hour and a half to steal the car before the owner comes back. 10 of 37 1 l/30/1999 5:11 PM TXhouston http://www.communitydefense.org/cAcdocs/landuse/htmVtxhouston.cfm Topless clubs make up the majority of arrests in the Vice Division's enforcement experience. When the officer goes under cover in a club, he must assume the identity of a patron. Employees explicitly ask for badges, weapons, handcuffs, and go as far as feeling around the patron looking for these items. Once they feel comfortable that the patron is not a police ~!"' officer, they will often ask him to move to a more secluded area, or possibly the VIP room of 1rr the club. The entertainer explains that she can do better dances in these areas and a "lot more things" because they aren't watched as closely. This is when the opportunity for sexual ~ or lewd activities occurs. The Vice Division representatives testified that licensing and criminal background checks will assist in the regulation of the entertainers behavior. Often, the same dances is arrested under a different or "stage" name. A license will ensure an individual true name, thus avoiding the use of stage names. This will ensure that individuals who are arrested and convicted are properly identified in the event of future criminal arrests. Modeling studios, tanning salons, encounter parlors and similar SOBS require the patron to disrobe on entry. Pertormance is based specifically on the amount of money a patron is willing to spend. This take place behind locked doors. Vice officers' testimony revealed that in their opinion, these businesses were merely fronts for prostitution. Vice officers elaborated on schemes of credit card fraud contributed to these enterprises. Often the charged amounts are altered or bogus charges are sent through for payment. When the client complains, he is threatened with the disclosure of the type of enterprise that he was in. Vice officers testified that "bookstores are nothing more than just blatant open sexual contact between people with complete anonymity." With professionally cut "glory holes," random sexual activity between males is rampant. One officer went as far as testifying that in his eleven years with Vice he does not recall ever seeing anyone go into a booth, watch the movie for thirty minutes and walk out. The HPD Vice officers felt that the following ordinance change suggestions would be helpful in the enforcement and regulation of sexually oriented businesses: 1. licensing of persons involved in a SOB -manager, owners, dancers, waiters, bartenders 2. minimum age 21 (this requires a state law change) 3. premises need to be well lit inside 4. no touching 11 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefense.org/cdcdocs/landuse/htmVtrchouston.cfm 5. models in modeling studios should not be allowed to remove all their clothes 6. make it a violation for models to ask patrons to remove all clothes 7. require bookstores and arcades to be well lit, no dark corners, no booths, no access between video booths, and no "glory holes" 8. entertainers to be considered employees rather than contractors 9. all investors and shareholders to be disclosed and licensed 10. public display of licenses 11. 6 foot distances between performer and patron 12. no private viewing areas 13. devices used as barriers limited to four foot heights 14. illumination of one candle foot at floor level minimum 15. no locked interior doors in modeling or tanning studios 16. regulate escort services 17. prohibition against use of inanimate objects by SOB employees to depict sexual conduct 18. prohibition against warning systems 19. redefine "multi-unit center" 20. restrict transfer or permit/license 21. develop time line for revocation/suspension hearing 22. amend terms "knowingly" and "negligence" 23. owners, managers and employees of a SOB shall have their license immediately available Although not all of these items were determined by the Legal Department as legally defensible under the extent enabling statute and case law, they were taken into consideration. PUBLIC HEARING SUMMARY `~ 12 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefrnse.org/cdedocs/lenduse/htmVt~thouston.cfm Ir it The initial Public Hearing was held on July 15, 1996 in the City Council Chamber. Council Member Boney outlined the intentions of the current committee as: a. review the ordinance 1. enforcement issues 2. effectiveness of the ordinance 3. operating procedures a. review all SOBs, regulated and licensed, unlicensed and illegal b. licensing of employees c. visibility issues d. revision of land policies e. balance SOBs' constitutional right and the right of the communities The public testimony proceeded as follows: According to members of the industry, policies for public lewdness cases are made in a personal and participative way. In other words, Vice officers encourage lewd behavior, even to the extent of participating in order to "get a case." Industry representatives generally agreed that employees licensing is necessary, though some prefer the Police Department, others prefer the Health Department. Depending on the quality of an arrest, three or five within twelve months should be sufficient for revocation/suspension of SOB license. In addition, it is felt that there lacks effective police enforcement of unlicensed tanning salons and massage parlors. Dr. Devinney, professor of Abnormal psychology, testified that sexual deviants are attracted to communities because of Sexually Oriented Businesses. There are some deviants who cannot get sexual satisfaction unless they pay for it. While others are not satisfied unless they take or steal it. In addition, there are some sexual deviants who cannot have sexual satisfaction without forbidden partners such as children, invalids or elderly. SOBS located in residential or even retail areas attract sexual deviants because they have their entertainment, then they come out and have a fertile field for solicitation. Therefore, they do not belong in or near residential communities. Because of the adverse secondary effects caused by Sexually Oriented Businesses, citizen responses urged the increase of distancing of SOBs from schools, churches and licensed day cares. In addition, they perceived a need to decrease the current residential formula of 75% to 25%. They also requested notification to area residents of proposed SOBs, either by posting a large sign on the property or individual mail outs. In addition, they urged that billboard advertising be illegal. The second public hearing occurred on July 29, 1996. Attorneys representing the SOB industry requested that a hearing panel be developed to deal with permitting issues. In addition, the panel should consist of non-law enforcement individuals, and contain several ~ different hearing officers. Testimony indicated that although many SOBs follow the rules, most industry representatives are not against stronger regulations in regards to licensing the entertainers. Often the dancers are transient. The establishment of a license issued through HPD would create a data base of l3 of 37 I (/30/1999 5:1 I PM TXhouston http://www.communitydefense.org/cdcdocs/lenduse/htmVbchoustortcfm information. Furthermore, a great deal of discussion was given to a "no touch" policy. Owners and dancers alike stated that touching was part of the entertainment. Plexiglas barriers, mini-stages, and ~" six foot distancing were all criticized. A third public hearing was scheduled for the public to comment on the draft ordinance prior to final approval, and was held January 6, 1997. REVIEW OF WRITTEN CORRESPONDENCE More than two hundred seventy-five fetters were received regarding the sexually oriented business ordinance. These letters came from property owners, SOB employees, concerned citizens, parents, educators, civic associations, and business owners. While not all suggestions could be incorporated into this summary, each letter was carefully reviewed and passed to other members of the committee. These documents are on file in the Legal Department. Approximately one hundred seventy-five letters were the result of a letter writing campaign promoted by "Adults for Legal Freedom." The principal theme of these letters was the over-regulation of the adult business industry. They feel that this industry attracts tourism, pays considerable tax revenues, and creates jobs, and therefore is a valuable asset to the city. In addition, they believe the reworking of this ordinance is for political reasons only. Letters came in urging the extension of distancing between a SOB and neighborhoods, schools, licensed daycares, churches, medical clinics, government offices, historic districts, public parks, hospitals, and distancing between sexually oriented businesses. It was asked that new residential projects with preliminary approval from the planning commission be included in the residential formula. Also, concerns arose over the representation of multifamily dwellings in the residential radius computations. Notification of the public that a Sexually Oriented Business has applied for an application was a relatively new issue brought before the committee members. Suggestions ranged from 90 day notices by property signs to postcards being mailed to all residents in the area. Notification by newspaper, certified mail, and public hearings were also brought forth. With regard to entertainers, recommendations were to prohibit touching, prohibit asking customers to undress, install an 8' high stage, require 6 feet distances from patrons, and Plexiglas barriers, license all dancers, increase minimum dancing age, require criminal background checks, no licenses issued to convicted felons, and require license to be worn at all times when inside an enterprise. Other correspondence recommended that SOB permits should be renewed annually, repeated violations should be ground for denial, prohibit locked interior doors, require sufficient illumination of the facility, and to hold owner/manager accountable for activity occurring on the premises. 14 of 37 11/30/1999 5:11 PM 17Chouston http://www.communitydefense.orgicdedocs/landuse/htmVbchouston.cfm }r" While opinions and suggestions varied, most people agreed with the proposition that sexually ~" oriented businesses would continue to exist, and expressed concern to create a solution in i.. which they could coexist without infringing on the rights of the citizens of the city. COMMITTEE RECOMMENDATIONS A. Adult Arcade Ordinance Changes 1. It is recommended that the Police Department's concerns regarding "adult arcades" or "peep shows" be addressed by amending Art. II of Ch. 28 of the Code of Ordinances to eliminate problems of sexually transmitted disease and criminal sexual conduct in such operations. At present, Art. II prohibits enclosed booths for viewing sexually oriented entertainment but regulates only establishments whose "arcade devices" are intended for the viewing of five or fewer persons. The recommended amendment would make devices intended for viewing by less than one hundred persons come under the purview of Art. II. In addition, no adult arcade or adult mini-theatre shall be configured in such a manner as to have any opening in any partition, screen, wall or other barrier that separates viewing areas for arcade devices or adult mini-theatre devices from other viewing areas for arcade devices or adult mini-theatre devices. This provision shall not apply to conduits for plumbing, heating, air conditioning, ventilation or electrical service, provided that such conduits shall be so screened or otherwise configured as to prevent their use as openings that would permit any portion of a human body to penetrate the wall or barrier separating viewing areas. This should eliminate the problem of enclosed booths and "glory holes" in such establishments. In addition, it shall be the duty of the owners and operator and it shall also be the duty of any agents and employees present in an adult arcade or adult mini-theatre to ensure that the premises is monitored to assure that no openings are allowed to exist in violation and to ensure that no patron is allowed access to any portion of the premises where any opening exists in violation. 2. It is recommended that responsibilities for hearing appeals from permit decisions of the Director be considered by a hearing officer, rather than the city's General Appeals Board, which is the present appellant body under Art. II of Ch. 28 of the Code of Ordinances. This recommendation would only impact Article II of Chapter 28, as all other appeals regarding sexually oriented businesses are presently heard by a hearing official. The hearing officer shall be an official appointed by the mayor and confirmed by city council. If, after the hearing officer determined, based upon the nature of the violation, that the ends of justice would be served by a suspension in lieu of a revocation, he may suspend the operation of the permit for a period of time to be stated in the order of suspension, not to exceed two (2) months. The General Appeals Board has never heard such an appeal is principally concerned with Building Code matters, rather than regulation of sexually oriented businesses. 3. In addition, it is recommended that the fees associated with the processing of applications should be brought up to date to reflect current actual costs. 15 of 37 11/30/1999 5:11 PM TXhouston http:/hvww.wmmunitydefense.org/cdedoesilanduse/htmVochouston.efm Y B. Procedural Changes -Sexually Oriented Business Enforcement ~"" 1. It is recommended that the appellate procedures in Art. III of Ch. 28 of the Code of Ordinances be revised to provide for a panel of hearing officers, appointed by the Mayor and confirmed by the City Council, consisting of licensed attorneys, serving on rotation, who will consider all appeals relating to sexually oriented businesses and licenses. Decisions by such hearing officers will be final and subject to immediate judicial review. The availability of an intermediate appeal to the City Council from decisions of the hearing officer should be eliminated. Although the need for an intermediate appeal from permit decisions to the City Council at one time appeared necessary, it now appears that due process requires only one administrative hearing prior to judicial review. This change will eliminate delay and will prevent City Council from being inundated with the _ large number of appeals anticipated due to implementation of increased regulations. 2. It is recommended that the Chief of Police be required by ordinance to report to the Mayor and the City Council, on a monthly basis, all violations of sexually oriented business regulations and related state laws, with respect to all licensed facilities and licensed persons. 3. It is further recommended that the Legal Department, through the City Attorney, should have authority to initiate all administrative actions regarding suspension or revocation of any permit or license under the various ordinances. The city attorney shall execute a monthly report summarizing revocation actions filed, currently pending or decided during the reporting period. This authority currently rests with the Chief of Police in his capacity as Director. 4. It is recommended that sexually oriented business permits involved in administrative hearing or procedures regarding denial, suspension or revocation be prohibited from being transferred to another entity during the pendency of the administrative process. 5. It is recommended that the Chief of Police continue as Director under Ch. 28 of the Code of Ordinances for purposes of permitting, investigation and enforcement requirements, with the exception noted above that the Legal Department will be . responsible for initiating administrative enforcement actions. C. Land Use and Related Changes -Sexually Oriented Businesses 1. Information from the Planning Department indicates that the present distance requirements with respect to churches, schools and day care centers could be substantially increased, perhaps to as much as 1500 feet from the present 750 feet, and that the radius for counting residential tracts could be increased to 1500 feet from the present 1000 feet, all without unduly restricting availability of conforming locations for sexually oriented businesses to operate. The Committee recommends that these changes be instituted to protect such land uses from the adverse secondary effects of SOBs. 2. It is recommended that multi-family dwellings situated on a single tract be considered for additional protection under the residential test. Under the present ordinance, a 16 of 37 I V30/1999 5:11 PM 'rXhouston ~ http://www.communitydefense.org/cdcdocs/lartduse/htmVtxhouston.cfm !~ ~M sexually oriented business may not operate at a location if 75 percent or more of the !• tracts within a 1,000 foot radius of the business are residential in character. However, i many multi-family dwellings are located on single tracts. Although it may not be possible to count each unit in amulti-family development as a separate residential "tract" for ~" purposes of the residential restrictions of the ordinance, it is recommended that a ratio of `+ eight single family tracts for each acre of multi-family tract be considered to provide additional consideration for protection of residential neighborhoods that include ~' multi-family developments. it 3. signage restrictions under the present ordinance apply essentially only to single use, freestanding sexually oriented businesses and not to "multi-tenant centers." As a practical matter, this allows some sexually oriented businesses to utilize large signage and otherwise prohibited exterior decorations by the simple expedient of including two or more small non-sexually oriented businesses on the same premises. It is recommended that the signage and exterior appearance provisions of the ordinance be strengthened to _ eliminate this practice. 4. In keeping with the theme of family preservation, the Committee recommends the inclusion of "public park," and, if legally definable, "private parks" to the protected land uses. Public and expert witnesses testified that the inclusion of the was necessary to continue their rejuvenation. The term "residential" shall also include any unimproved tract designated for tax appraisal purposes as residential by the Harris County Appraisal District. In addition, it shall include any tract, that, based upon the records of the planning official has been subdivided or platted for residential use, but that is not yet designated for tax appraisal purposes as residential. 5. The committee recommends that each applicant, following the filing of the application and payment of the filing fee, place signs at the premises intended as the site for the SOB (at least 24 inches x 36 inches in size) that provide notification and information specifically stated "Sexually Oriented Business Permit Application Pending." 6. The committee recommends that each applicant give notice of the application by publication at his own expense in two consecutive issues of a newspaper published in Houston, Texas. D. Conduct and Operations -Sexually Oriented Business Entertainers and Managers 1. The committee recommends that all entertainers and managers of SOBS hold permits issued by the vice division of the police department. The permit application shall include name, address, date of birth, photo identification, alist of criminal charges pending, convictions and time in jail. Crimes justifying a denial of a permit are limited to offenses relating to criminal sexual conduct and criminal activities known to be prevalent in SOBs. 2. The committee recommends the issuance of two photographic permits, a personal card and an on-site card. Each manager or entertainer shall conspicuously display his personal card upon his person at all times while acting as an entertainer or manager of or in an enterprise. The on-site card shall remain in the charge of the on-site manager of the enterprise to hold while the manager or entertainer is on the premises. 17 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefense.org/cdcdocs/landuse/htmVtxhouston.cfm r I"' 3. The committee recommends that it shall be unlawful for any entertainer to touch a customer or the clothing of a customer while engaging in entertainment or while exposing any specified anatomical areas or engaging in any specified sexual activities. E. Amortization Beginning in 1983, prior to the adoption of the current series of City regulations regarding sexually oriented businesses, the City Council Committee studying the issue concluded that the nature of the adverse secondary effects produced by the operation of sexually oriented businesses could only be addressed by enforcing regulations against existing businesses (i.e., "amortization"), rather than allowing businesses existing at the time of the ordinance passage to exist essentially in perpetuity (i.e., "grandfathering"). The City Council legislative report, which was subsequently adopted by the full City Council concluded, "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 "From here on out" would not be adequate. Prospective legislation 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 amortization would be the appropriate approach." (Houston City Council on the Proposed Regulation of Sexually Oriented Businesses Report, December 1, 1983, pg. 29). This position was reconfirmed when the City Council revisited regulation of sexually oriented businesses in 1986 and 1991. Each subsequent revision of the City's sexually oriented business ordinances included an amortization provision, designed to give all existing affected sexually oriented businesses an initial six-month period for compliance, including relocation, if necessary, and an opportunity to justify an additiona- extension for lawful operation before a hearing examiner appointed by the director under the ordinance. Records of the amortization hearings indicate that many affected businesses were able to obtain extensions of up to 5'/s years following the initial six-month compliance period. The average extension, historically, has been about 2 to 3 years. The factors considered in granting additional extensions of time included: 1. the amount of the owner's investment in the existing enterprise through the date of passage and approval of the Ordinance; 2. the amount of such investment that has been or will be realized through the 180th day following the effective date of the Ordinance; 3. the life expectancy of the existing enterprise; 4. the existence or nonexistence of lease obligations, as well as any contingency clauses therein permitting termination of such leases. Amortization, as opposed to grandfathering, or existing sexually oriented businesses in Houston was specifically upheld by the federal district court in the case of SDJ, Inc. v. City of IS of 37 I V30/1999 5:11 PM L TXhouston http://www.wmmunitydefrnse.orgicdcdocs/landusc/htmVtaJrouston.c[m Houston, 636 F.Supp. 1359 (S.D. Tex. 1986), affirmed 837 F.2d 1268 (5th Cir. in SDJ, the court held that "It is generally accepted that pre-existing non-conforming uses, subject to zoning or similar regulations, are not to be perpetual, and that amortization to allow for the recoupment of investment in an existing land use is an appropriate measure to balance the property owners' rights against the proper exercise of the City's police power to regulate non-conforming uses. See, e.g., City of University Park v. eenners, 485 S.W.2d 773 (Tex. 1972). ~" "Grandfathering" essentially contemplates the indefinite continuance of non-conforming businesses or land uses following the passage of zoning or similar land use ordinances, notwithstanding that such businesses or uses clearly violate the provisions of the ordinance. ~" The effect of "grandfathering" is to continue such non-conforming uses indefinitely, although ~ new land uses may be subject to the newly enacted restrictions. A number of authorities hold it that established non-conforming uses that are grandfathered must be allowed to continue the use, notwithstanding transfer or change in ownership. See Section 25-183.50, McQuillin, r„ Municipal Corporations. These authorities hold that only if a non-conforming use is abandoned altogether can the zoning or other ordinances be enforced against the particular property or business use. Id. While these authorities may not necessarily preclude termination of non-conforming rights upon transfer of ownership under Texas law, it is altogether possible that non-conforming sexually oriented businesses could find ways to structure sale of assets or ownership interests in such a manner as to perpetuate the entity "owning" the sexually oriented business to avoid termination of non-conforming rights. In any event, most non-conforming sexually oriented businesses would likely enjoy the opportunity for a very long continuation in business under any "grandfathering" scheme. In contrast, amortization has been determined by the prevailing majority of courts in this country to be a reasonable means of accommodating the need to protect the public from adverse land uses, while at the same time giving consideration to the rights of business owners to recoup business investments, prior to feeling the effects of a restrictive ordinance. The problem with "grandfathering' is that it perpetuates non-wnforming uses for an indefinite period, thus preventing the effective exercise of the City's police powers to protect its residents. As noted by the Supreme Court of Texas, "There are strong policy arguments and a demonstrable public need for the fair and reasonable termination of non-conforming property uses which most often do not disappear but tend to thrive in monopolistic positions in the community. We are in accord with the principle that municipal zoning ordinances requiring the termination of non-conforming uses under reasonable conditions are within the scope of municipal police power. That property owners do not acquire a constitutionally protected vested right in property uses once commenced or in zoning classifications once made. Otherwise, a lawful exercise of the police power by the governing body of the City would be precluded." City of University Park v. Benners, supra 485 S.W.2d at 778. The adult bookstores and theaters that challenged the 1991 City of Houston sexually oriented business amendments as requiring them to change operation or relocate claimed in the pending federal lawsuit that the City was legally required to grandfather them at their present locations. The City has vigorously contested this contention, which is not in accord with the settled law governing the matter. In addition, all prior City Council committees .and City Councils considering implementation of new sexually oriented business ordinance revisions have concluded that amortization is necessary to provide protection to all residents of the City, while recognizing the ability of business owners to remain in operation without relocating for a reasonable period of time. Although the City haw occasionally experimented, on a small 19 of 37 11/30/1999 5:1 I PM TXhouston http://www.communitydefrnse.org/cdcdocs/landuse/h[mL~bchouston.cfm iYr scale, with "grandfathering" in the past, such provisions have been limited to relatively small ~' numbers of businesses such as automotive salvage yards. In no such case has the City ~+ Council documented extensive adverse secondary effects on surrounding neighborhoods, such as have been presented to this Committee and prior City Council committees regarding ~ the operation of sexually oriented businesses. As a practical matter, the "grandfathering" of existing sexually oriented businesses under any proposed ordinance revision would allow such businesses to continue to operate in violation of new regulations indefinitely. However, persons proposing to operate new sexually oriented businesses would have to comply with the full force of more stringent regulations, and residents and neighborhoods presently adjacent to existing sexually oriented businesses would have to essentially live with the continuing effects of such businesses on their localities for an indefinite period. While such a situation would not necessarily give rise to any legal cause of action on the part of such new businesses or existing neighborhoods, the potential for the perception of uneven treatment with respect to the protected position of existing sexually oriented businesses is readily apparent. Historically, the City's amortization program has significantly reduced the adverse secondary effects of sexually oriented businesses in a relatively short time-frame, while still terminating existing non-conforming businesses in a legally permissible fashion. Further, the City's position in pending litigation involving amortization of adult bookstores is best served by maintaining an amortization policy consistent with past practice, rather than experimenting with grandfathering. In conclusion, although "grandfathering" remains technically available as a legal option for implementation of proposed sexually oriented business amendments, it clearly poses significant legal and policy disadvantages, as noted above. The Committee therefore recommends that existing SOBS rendered non-conforming be allowed to recoup investment through an amortization process. SECTION BY SECTION ANALYSIS The Amended Ordinance incorporates a substantial number of procedural and administrative changes that reflect ten years of operating experience with the Original and two Amended Ordinances and a better understanding of the ways in which enforcement of the ordinance could be improved. This portion of the Report briefly outlines on asection-by-section basis the major changes that have been made and the reasons for those changes. Section 28-81. Definitions. eneral Comment. As a general matter, definitions in Section 28-81 have in many cases been reworded to conform more closely with definitions already used in other municipal ordinances. In addition, "adult mini-theatre" has been added ~, throughout this amended ordinance. Section 28-81. Definitions. "Adult mini-theatre." In the previous Ordinance, no mention was made of an "adult mini-theatre." This definition has been added to incorporate theatres that are intended for the viewing of five (5) to one hundred (100) patrons. Section 28-81. Definitions. "Mini-theatre device." In the previous Ordinance, no mention was made of a "mini-theatre device." This definition has been added to incorporate any coin or ~+ `, 20 of 37 11/30/1999 5:11 PM TXhouston http://www.communirydefense.org/cdcdocs/landuse/h[mVnchouston.cfm .slug operated or electrically or electronically or mechanically controlled machine or device ~!" that dispenses or effectuates the dispensing of "entertainment," that is intended for the L viewing of more than five (5) persons but less than 100 persons in exchange for any payment of any consideration. It is not intended to include any conventional motion picture screen or ~" projections that are designed to be viewed in a room containing tier or rows of seats with a ~• viewer seating capacity of 100 or more persons. ~' Section 28-81. Definitions. "Owner or owners." This definition has been expanded to include ~+ the major stockholders/controllers of a corporation. Although requests came in to list all stockholders, it does not require the disclosure of non-controlling parties. Section 28-81. Definitions. "Specified anatomical areas ." In the previous Ordinance, no mention was made of "specified anatomical areas" in this particular section. As a matter of consistency throughout the ordinance, it has been added here. Section 28-92 ~ Application . The adult arcade or adult mini-theatre permit fee was established eleven years ago and analysis reveals that with the increase in administrative r" costs, this figure is no longer viable. Therefore, the increase from $75.00 to $275.00. Section 28-92 (fl. Application. In an effort to clarify the application process, the submission of the applicant must be submitted by hand delivery by "the intended operator." Section 28-92 ~ Application . Where a premises is so configured and operated as to constitute both an adult arcade and an adult mini-theatre, then the operator may apply for and obtain a combined permit authorizing operation as both an adult arcade and an adult mini-theatre. Section 28-93 (al. Issuance or denial by police chief. For purposes of consistency throughout the ordnance, the notice of issuance or denial of the permit has been expanded to twenty days with a possible extension totaling thirty days. ~-~. Section 28-93 ~ Issuance or denial ~ aolice chief . All fees must be paid with either a certified check, cashier's check or money order. Section 28-94. Term. Permit terms have been restructured to read as follows: "Each permit shall be valid for a period of one (1) year and shall expire on the anniversary of its date of issuance, unless sooner revoked, or surrendered. Each permit shall be subject to renewal as of its expiration date by the filing of a renewal application with the police chief. Renewal applications must be filed at least twenty (20) days prior to the expiration date of the permit that is to be renewed and shall be accompanied by a fee of one hundred dollars ($100.00). Section 28-95 (b). Transfer upon chance. The original transfer fee was set over ten years ago. The Vice department recently analyzed the current costs for transfer. The transfer application fee has changed to $100.00 to reflect these costs. Section 28-98. Conduct in adult arcades or adult mini-theatres. The terms "indecent exposure" and "lewd conduct" have been added here to be consistent throughout this Ordinance. Section 28-99Lbj_ Appeals. "Secretary of the general appeals board" has been deleted and replaced by "hearing officer" because it was determined that the transfer of this duty will 21 of 37 1 V30/1999 5:1 I PM TXhouston http://www.communitydeferase.org/cdcdocs/landuse/htmVbchouston.cfm V streamline the appeals into an efficient, professional, and impartial process. In the event it is t" not possible to hear and resolve the appeal within ten days after the date it was received by the police chief, then the police chief shall issue a temporary permit until the matter can be heard. ~"' Section 28-102La]: Wallpenetrations. There was testimony that "adult arcades" and "adult mini-theatres" maintain small rooms or booths in which individuals are admitted and permitted ~" to use one or more arcade devices. The enclosed booths are joined to the neighboring booth i" by a hole in the wall. These "glory holes" are used to promote anonymous sex and determined to facilitate the spread of sexually transmitted diseases. This section prohibits any opening in any partition, screen, wall or other barrier that separates viewing areas. This provision shall not apply to conduits for plumbing, heating, air conditioning, ventilation or electrical service, provided that such conduits shall be so screened or otherwise configured as to prevent their use as openings that would permit any portion of a human body to penetrate the wall or barrier separating viewing areas. The managers' station must be able to view all portions of the business to which customers are admitted. Section 28-102 (b). Wall aenetrations. "It shall be the duty of the owners and operator and it shall also be the duty of any agents and employees present in an adult arcade or adult mini-theatre to ensure that the premises is monitored to assure that no openings are allowed to exist in violation of subsection (a), above, and to ensure that no patron is allowed access to any portion of the premises where any opening exists in violation of subsection (a), above, until the opening has been repaired." Section 28-103 (a1. Liahtina. Every place to which patrons are permitted access shall have an illumination of not less than one (1) foot candle as measured at four feet above floor level. The purpose for the change to "four feet above" floor level is that it is the height at which most activity takes place, whether standing or seated. Section 28-111 ta). Grounds. In the previous Ordinance revocation hearings were conducted by the general appeals board as established pursuant to the provisions of the building code. This has been changed to a hearing officer appointed by the mayor and confirmed by city council. This change should speed up the revocation process with more .efficiency. . Section 28-111,~~ Grounds. Again, the terms "indecent exposure" and "lewd conduct" have been added to consistency. Section 28-114. Order of the hearin officer. Because of the transfer of authority from the general appeals board to the hearing officer, this section has been reworked. If, after the hearing, the hearing officer finds that the permit should be revoked, he shall issue a written order revoking such permit which shall be effective on the third day after notice thereof is given to the operator. If the hearing officer determines, based upon the nature of the violation, that the ends of justice would be served by a suspension in lieu of a revocation, he may suspend the operation of the permit for a period of time to be stated in the order of suspension, not to exceed two (2) months. In addition, the decision of the hearing officer is final. mini-theatre. This subsection is new. It has been added for clarification. "The procedures for judicial review set forth under Section 28-135 of this code shall apply to adult arcades and ~'" jy 22 of 37 11/30/1999 5:11 PM TXhous[on http://www.communitydcferase.org/cdcdocs/IendusUhtmVhchouston.cfm #~ it adult mini-theatres. r Section 28-121. Definitions. "Multifamily tract." In the previous Ordinance, no mention was made of "multifamily tract." Concerns developed over the limited representation of multifamily !^ dwellings such as apartment complexes, condos, and town homes in the overall residential ~ formula. Therefore, the addition of "multifamily tract" shall be defined as any residential tract that contains any building or buildings or portion or portions thereof, that is designed, built, ~" rented, leased, sold, let out or hired out to be occupied, or which is occupied, in separate ~' units, each containing living, sleeping and food preparation facilities, as the homes or _ residences of three or more families, groups, or individuals living independently of each other. Section 28-121. Definitions. "Owner or owners." This definition has been expanded to include the major stockholders/controllers of a corporation. Although requests came in to list all stockholders, it is not applicable to disclose non-controlling parties. Section 28-121. Definitions. "Public Park." In the previous Ordinance, no mention was made of "public park." Concerns over the preservation of the family and the facilities geared toward the family brought forth the necessity to include "public parks" in protected land uses. Considered as centers of family recreation, a "public park" is defined as "a publicly owned or publicly leased tract of land, whether situated in the city or not, designated, dedicated, controlled, maintained and operated for use by the general public for active or passive recreational or leisure purposes by the city or any political subdivision of the state and containing improvements, pathways, access or facilities intended for public recreational use." The term "public park" shall not include parkways, public roads, rights-of-way, esplanades, traffic circles, easements or traffic triangles unless such tracts or areas contain and provide improvements or access to a recreational or leisure use by the public. A current list of public parks shall be compiled and revised by the Director of the Parks and Recreation Department and maintained for public inspection in the office of the City Secretary. Section 28-121. Definitions. "Residential ." With the inclusion of "multifamily tract," it is necessary to clarify the definition of "residential" to include any unimproved tract designated for tax appraisal purposes as residential by the Harris County Appraisal District if situated in the City or by the appraisal district of the county in which the tract is situated if not situated in the City. The term additionally shall include any tract, that, based upon the records of the planning official has been subdivided or platted for residential use, but that is not yet designated for tax appraisal purposes as residential." In addition, the definition has been ~ extended to exclude college or university dorms. Section 28-123 ~ Same-Application . In an effort to clarify the application process, the submission of the applicant must be submitted by hand delivery by "the intended operator." Section 28-123 ~ ~ ~ Same-Application . The sexually oriented business permit application fee has been raised to $475.00. The original fee of $350.00 was put into effect eleven years ago and analysis reveals that with the increase in administrative costs, this figure is no longer viable to recover costs of investigation and permit issuance. ~„ Section 28-123~~~ Same-Application. The sexually oriented business permit renewal fee has been increased to $225.00. The original fee of $100.00 was put into effect eleven years ago. That figure is no longer viable to cover administrative costs. it !" jy 23 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefrnse.org/cdcdocs/lendusc/htmUtxhouston.cCm A Section 28-123 ~ Same-Apolication . Section 28-123 (e) of this Amended Ordinance is I"' totally new. This section was established to notify surrounding property owners that a SOB li. permit has been applied for. "Each applicant shall, following the filing of the application and payment of the filing fee, place signs (at least 24 inches x 36 inches in size) that provide ~"' notification and information specifically stated "SEXUALLY ORIENTED BUSINESS PERMIT it APPLICATION PENDING" and the date on which the application was filed along with the notation: 'For further information, contact the Vice Division of the Houston Police Department.' ~" All lettering on the signs must be at least 1 and '/ inches x 2 inches in size for each letter on W the sign. It shall be the duty of each applicant as to each particular application to erect at least one such sign along each of the property's public road or highway frontages so as to be clearly visible from the public road or highway. If a property does not have a public road or highway frontage, then signs shall be placed upon the property at the point visible from the nearest right-of-way. Said signs shall be erected not less than three days after the filing of the application for the sexually oriented business permit and shall be checked daily by the ~ applicant and re-posted to ensure that they remain posted until the application has been approved or denied." Section 28-123 (fl. Same-Application. Section 28-123 (f) of this Amended Ordinance is totally new. This section was established to notify the public of the application of a SOB permit. "Every applicant shall give notice of the application by publication at his own expense in two consecutive issues of a newspaper published in Houston, Texas with a daily circulation of not less than 100,000 copies. The notice shall be printed in 10-point boldface type and shall include: (1) the fact that a sexually oriented business permit has been applied for; (2) the street address, including suite or unit number, if any, of the place of business for which the permit is sought; (3) the names of the business and, if the business is operated under an assumed name, the trade name, and (4) if the applicant is a corporation, the names and titles of all officers. The notices shall be published within seven (7) days after the application is filed with the director." The choice of a daily circulation of not less than 100,000 copies was developed to avoid publication in newspapers with limited circulation. Section 28-123 Same-Application. Section 28-123 (g) of this amended Ordinance has been added to clarify the duties of the director. He/she shall be responsible for a monthly report submitted to the mayor and the city council, with a copy to the city attorney, summarizing all applications submitted under this section, and including the name of the proposed enterprise and the street address or the proposed location. Section 28-125~~ Same-Issuance or denial. In the previous ordinance the applicant's enterprise could not be located within seven hundred fifty (750) feet of any school, church, or licensed day care centers. This has been expanded to one thousand five hundred (1,500) feet and "public park" has been added to protected land uses. Advance computer technology has brought about a more sophisticated program for determining site availability. The increase in distance allows for more protection to specific land uses while only slightly reducing the number of "reasonable alternatives sites" for the sexually oriented businesses. Section 28-125,~~ Same-Issuance or denial. In the previous ordinance the applicant's enterprise could not be located within a one thousand (1,000) foot radius where seventy-five ~, (75) percent or more of the tracts were residential in character. This has been expanded to a one thousand five hundred (1,500) foot radius. In addition, the "multifamily tracts shall be counted as multiple residential tracts based upon the acreage of the multifamily tract according to the following formula: each one-eighth (1/8th) acre of land or fraction thereof 24 of 37 11/30/1999 5:11 PM '£Xhouston fr shall be equivalent to one (1) residential tract. For ~' tract or multifamily tract shall be considered to be ~. portion of it lies within the circular area." In the past, consistent with the actual number of property owners http:Gwww.communitydefense.org/cdcdocs/landuse/h[ml/ixhouston.cfm purposes of this calculation a residential in the circular area in its entirety if any multifamily tracts were counted as one or Section 28-125Ld,Z. Same-Issuance or denial. In the previous ordinance the appeal process was handled by a single hearing official. The general consensus is to create a panel of hearing officials. "Such hearing officials shall be attorneys licensed to practice law in the state of Texas and shall serve without compensation. Hearings shall be conducted by each hearing official in rotation as appeals are filed. Should the hearing officer next in rotation be unavailable to hear an appeal within the time specified under this section, the hearing official next in order who is available shall be designated to hear such appeal." The hearing panel shall not exceed ten in number. An applicant requesting a hearing now has 20 days to file a written request for hearing. The purpose of this increase was to conform with other areas of this Ordinance. This change should streamline the process with greater efficiency and expertise of the law and law related issues. Section 28-125 (el. Same-Issuance or denial. The previous ordinances allowed for an appeal to City Council pertaining to the denial of an application. Again, in an effort to streamline the process, this has been deleted. Decisions by the hearing official are final. In addition, the hearing must be conducted within 20 days. Section 28-125 Same-Issuance or denial. As a result of the hearing official's decision being final, this section has become obsolete, therefore it has been deleted. Section 28-126 Same-Transfer upon change. In the previous ordinance this section read "operator designated in the application." For more clarity of responsibility this has been edited to read "...holds the permit on the owner(s)' behalf as the owner(s)' agent..." This wording change clarifies the responsibility of the on-premise operator. Section 28-126, Same-Transfer upon change. Previous ordinances did not address the issue of ownership change during the pendency of any administrative proceeding. For greater control regarding enforcement issues, the committee finds the necessity of the prevention of permit transfers while any revocation or suspension is pending. Historically, ownership transfers have occurred to avoid regulation. Section 28-127 ~ Same-Revocation or suspension . In the previous ordinances the revocation or suspension authority was held by the director. In an attempt to address the separation of power the revocation and suspension authority has been transferred to the City Attorney. Not only will this streamline into a more efficient process, it will remove the power of authority from the investigative agency. Section 28-127~~ Same-Revocation or suspension. Since the previous ordinance, the state of Texas has changed the law regarding the minimum age allowed in a sexually oriented business. In order to be consistent with the state, this ordinance will raise the age from 17 to 18. Section 28-127 (a) (3). Same-Revocation or suspension. For the purpose of enforcement, the "operator or any manager" has been included with the owner in the responsibility of actions occurring in the establishment. The addition of "should have known that such violations were ~"" 25 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefrnse.org/cdcdocs/landuserhtmlitxhouston. cfm Yr occurring or did occur" makes the on-premise operator accountable for behavior on the !" premise. it Section 28-127 ~ Same-Revocation or suspension . The city attorney shall have sole authority to initiate any action for revocation of a permit. Section 28-1271c], Same-Revocation or suspension . The director shall provide the mayor, city council, and the city attorney with a monthly report summarizing the number and type of violations for each permitted enterprise. The city attorney shall execute a monthly report summarizing revocation actions filed, currently pending or decided during the reporting period. ~"' The city attorney may withhold any information from this report that may compromise any 1r ongoing investigation. Section 28-127 ~ Same-Revocation or suspension . This section has been changed to transfer the power of permit revocation from the mayor to the city attomey. The "designated" hearing official will be appointed by the mayor and confirmed by city council instead of the director. In addition, the hearing shall be held not less than twenty (20) days after notice is given. Section 28-127 Same-Revocation or suspension. In keeping with the consistency of the hearing official's decisions as final, "filing an appeal" has been changed to "...final disposition of any court action involving judicial review of..." Section 28-130 (c) (31 (a). Sionaae. This section is new to this amended ordinance. Historical evidence indicates that enterprises have evaded the size limitation of the sign ordinance by renting out a portion of their building thus changing their status to a "multi-unit center." In tum, they directly advertise on the allowed over sized signs. "Any sign located on the premises of a commercial multi-unit center containing an enterprise that displays the name, or any portion of the name of the enterprise, any name under which any enterprise was formerly operated on the premises, or that contains any of the terms set forth in item (2) of subsection (c) or any other terminology that is commonly used to identify, or is associated with the presence of a sexually oriented business, shall comply with all restrictions of this section." Section 28-131 "Persons vounaer than seventeen prohibited from entry: attendant re wired." The Amended Ordinance forbids the presence of anyone younger than eighteen in a sexually oriented business for whatever reason as consistent with state law. Section 28-135 (cl. Judicial review. This section is new to the Ordinance. The decision of the hearing official suspending or revoking a permit under section 28-127 of this Code shall be final as of the date written notice of the hearing official's decision is given to the owner or operator of the enterprise, but in order to afford the permit holder an opportunity to seek judicial review shall not be effective for purposes of enforcement of the decision by the director until the twentieth (20th) day following such notice. If the permit holder initiates litigation for the purpose of seeking judicial review within the twenty (20) day period, then the decision shall not be effective for purposes of .enforcement prior to the sixtieth (60th) day following such notice. This subsection shall apply only to a decision sustaining the suspension or revocation of a permit for an existing enterprise, and shall not apply to a decision sustaining the denial of an initial application for a proposed enterprise. ~' 26 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefense.org/cdcdocs/Isnduseih[ml/bchouston.cfm iY~ Section 28-136_(aj Access, visibility. li htin and operations. Terms in this section shall be ~'" governed by the definitions in section 28-151 of this Code. it Section 28-136 Access, visibility. li htin and operations. "It shall be unlawful for any ~"' owner, operator or manager of any enterprise to permit any employee to provide any it entertainment to any customer in any separate area within an enterprise to which entry or access is blocked or obscured by any door, curtain or other barrier, regardless of whether entry to such separate area is by invitation, admission fee, club membership fee or any form of gratuity or consideration. Section 28-136 (c). Access, visibility. liahtina and operations. The owner, operator or manager of an enterprise must allow immediate access by any police officer, city fire department official or city health officer to any portion of the premises upon request regarding administrative search procedures ensuring compliance with the law. Section 28-136 ~ Access, visibility. li htin and operations . "Each enterprise shall be equipped with lighting fixtures of sufficient intensity to illuminate every place to which customers are permitted access at an illumination of not less than one (1.0) foot candle as measured at four feet above floor level." According to the Uniform Building Code, one foot candle is the standard floor level light required for all emergency exits. A photographic expert testified that this level of illumination can be accurately measured with currently available light metering equipment. Therefore, this should be considered a reasonable standard. Section 28-136 (e). Access. visibility. liahtina and operations. One on-site manager is to be on duty on the premises at all times during which the enterprise is open for business or customers are on the premises. This will ensure supervision and accountability by SOBS for prevention of criminal activities. Section 28-136 (f). Access, visibility. liahtina and operations. It shall be the duty of any owner, operator or manager of an enterprise to ensure that all persons acting as managers or entertainers on the premises hold and display permits. Section 28-136 ~ Access..visibility. li htin and operations . The on-site manager shall ensure that no entertainer or manager is allowed to conduct any business unless the on-site manager has in his possession or control an on-site card. On-site cards shall be made available for immediate inspection by any police officer, fire department official or health officer. Managers or entertainers working at more than one enterprise may retrieve their on-site cards upon departing the premises in order to present them to a manager at any other enterprise where such persons are employed. Section 28-136 Access. visibility. li htin and operations. In order to assist as a cross check, a list of permits for each manager and entertainer conducting business on the premises is required. Article VIII. "SEXUALLY ORIENTED BUSINESS EMPLOYEES. CONDUCT AND OPERATIONS. Article VII of the Amended Ordinance is totally new. Section 28-251. Definitions. General Comment. As a general matter, definitions in Section 27 of 37 11/30/1999 5:11 PM TXhous[on http://www.communitydefense.org/cdcdocs/Isnduse/htmVixhouston.cfm 28-251 have in many cases been worded to conform closely with definitions already used in F"' other municipal ordinances. The following words and terms shall have the meanings ascribed ~+ to them in this section, unless the context of their usage clearly indicates another meaning: Section 28-251. Definitions. "Conduct anv business in an enterprise." Any person who does any one (1) or more of the following shall be deemed to be conducting business in an enterprise: (1) Operates a cash register, cash drawer or other depository on the premises of the enterprise where cash funds or records of credit card or other credit transactions generated in any manner by the operation of the enterprise or the activities of the premises of the enterprise; (2) Displays or takes orders from any customer for any merchandise, goods, entertainment or other services offered on the premises of the enterprise; (3) Delivery or provides to any customer any merchandise, goods, entertainment or other services offered on the premises of the enterprise; (4) Acts as a door attendant to regulate entry of customers or other persons into the premises of the enterprise; or (5) Supervises or manages other persons in the pertormance of any of the foregoing activities on the premises of the enterprise. Section 28-251. Definitions. "Customer." Any person who: (1) Is allowed to enter an enterprise or any portion of an enterprise in return for the payment of an admission fee, membership fee or any other form of consideration or gratuity; (2) Enters an enterprise or any portion of an enterprise and purchases, rents or otherwise partakes of any merchandise, goods, entertainment or other services offered therein; or (3) Is a member of and on the premises of an enterprise operating as a private or membership club or an enterprise that reserves any portion of the premises of the enterprise as a private or membership club. Section 28-251. Definitions. "Director." The chief of police and such employee(s) of the police department as he may designate to perform the duties of the director under this article. Section 28-251. Definitions. "Employee." Any person who renders any service whatsoever to the customers of an enterprise, works in or about an enterprise or who conducts any business in an enterprise and who receives or has the expectation of receiving any compensation from the operator, or customers of the enterprise. By way of example, rather than limitation, the term includes the operator and other management personnel, clerks, dancers, models and other entertainers, food and beverage preparation and service personnel, door persons, bouncers, and cashiers. It is expressly intended that these definitions cover not only conventional employer-employee relationships but also independent contractor relationships, A agency relationships, and any other scheme or system whereby the "employee" has an ~,,, expectation of receiving compensation, tips or other benefits from the enterprise or its 28 of 37 11/30/1999 5:11 PM T}Q~ouston http://www.communitydefense.org/cdcdocs/landuse/html/bchouston.cfm w it it customers in exchange for services performed. Section 28-151. Definitions. "Enterprise." An adult bookstore, adult cabaret, adult encounter parlor, adult lounge, adult modeling studios, adult movie theatre or any establishment whose primary business is the offering of a service or the selling, renting or exhibiting of devices or any other items intended to provide sexual stimulation or sexual gratification to its customers, and which is distinguished by or characterized by an emphasis on matter depicting, describing or relating to specific sexual activities or specified anatomical areas. The term "enterprise" shall include any premises for which a permit is required under either or both of Articles II and III of this chapter. However, the term "enterprise" shall not be construed to include: (1) Any business operated by or employing licensed psychologists, licensed physical therapists, licensed athletic trainers, licensed cosmetologists, or licensed barbers performing functions authorized under the licenses held; it (2) Any business operated by or employing licensed physicians or licensed chiropractors engaged in practicing the healing arts; or (3) Any retail establishment whose major business is the offering of wearing apparel for sale to customers. Section 28-251. Definitions. "Entertainer." Any employee of an enterprise who performs or engages in entertainment. Section 28-251. Definitions. "Entertainment." Any act or performance, such as a play, skit, reading, revue, fashion show, modeling performance, pantomime, role playing, encounter session, scene, song, dance, musical rendition or striptease that involves the display or exposure of specified sexual activities or specified anatomical area. The term "entertainment" shall include any employee or entertainer exposing any specified anatomical areas or engaging in any specified sexual activities whatever in the presence of customers. Section 28-251. Definitions. "Manager." Any person who supervises, directs, or manages any employee of the enterprise or any other person who conducts any business in an enterprise with respect to any activity conducted on the premises of the enterprise, including any "on-site manager." Section 28-251. Definitions. "On-site manager." A person charged by an owner or operator of an enterprise with the responsibility for direct supervision of the operation of the enterprise an with monitoring and observing all areas of the enterprise to which customers are admitted at all times during which the enterprise is open for business or customers are on the premises. of the enterprise. Section 28-251. Definitions. "Operator." The manager or other natural person principally in charge of an enterprise. Section 28-251. Definitions. "Owner or owners." The proprietor if a sole proprietorship, all general partners if a partnership, or the corporation if a corporation. I'" Section 28-251. Definitions. "Permit." A current, valid permit shall be issued by the director ~„ pursuant to the terms of this article. 29 of 37 11/30lI999 Sa PM 7'Xhouston http://www.communirydefense.org/cdcdxs/landuse/html/txhoustortcCm r "~ Section 28-251. Definitions. "Seaarate area ." Any portion of the interior of an enterprise separated from any other portion of an enterprise by any wall, partition or other divider. Section 28-251. Definitions. "Specified anatomical areas.": 1. Less than completely and opaquely covered: a. Human genitals, pubic regions or pubic hair; b. Buttock; c. Female breast or breasts or any portion thereof that is situated below a point immediately above the top of the areola; or d. Any combination of the foregoing; or 1. Human male genitals in a discernibly erect state, even if completely and opaquely covered. Section 28-251. Definitions. "Specified sexual activities." 1. Human genitals in a discernible state of sexual stimulation or arousal; 2. Acts of human masturbation, sexual intercourse or sodomy; (3) Fondling or other erotic touching of human genitals, pubic regions or pubic hair, buttock or female breast or breasts; or (4) Any combination of the foregoing. Section 28-253 Permit reauired. All entertainers and managers must have an individual license. "It shall be unlawful for any person who does not hold a permit to act as an entertainer or a manager of or in an enterprise." Section 28-253 Permit reauired. The operators and owners shall ensure that all entertainers and manager have a personal license. "It shall be the duty of the operator and owners of each enterprise to ensure that no person acts as an entertainer or manager of or in the enterprise unless that person holds a permit." (y Section 28-254 Issuance of eo rmits. "Any person who desires to obtain an original or a renewal permit shall make application to the director in person at the offices of the vice division of the police department between the hours of 8:00 a.m. and 4:00 p.m., Monday ,Wednesday, or Friday, city observed holidays excepted. The application shall be made under an oath upon a form prescribed by the director." The application shall require the applicants name, home address, mailing addresses, proof of the date of birth, photographic identity card issued by a governmental agency, a list of any criminal charges pending, convictions, and time of service in jail or prisons, and two passport-type photograph of the applicant. 30 of 37 11/30/1999 5:11 PM 7'Xhous[on http://ww~v.communitydefense.org/cdcdocs/landuse/htmVtxhouston.cCm +~ r Section 28-254 Issuance of ermits. The nonrefundable processing fee for *' each application shall be $29.00. Each applicant shall be required to provide +r fingerprints in order to verify the applicant's identity and criminal history. A waiver shall be signed authorizing the director to request criminal history reports from the Texas Department of Public Safety and any appropriate federal agency. Section 28-254~c]~ Issuance of eo rmits. A permit shall be issued by the director within ten days from filing date. If the application is not granted, the applicant shall be mailed a notice of the grounds as provided by Section 1-9(a) of this Code, within ten days from filing date. Section 28-254 Issuance of permits. Each permit issued. by the director shall consist of two (2) photographic identification cards, a personal card and an on-site card. Section 28-2541e_L• Issuance of eo rmits . "Any applicant whose application is denied and who requests a hearing on the denial shall be granted a hearing within ten days following the receipt of the request by the vice division of the police department. The hearing shall be conducted as provided in Section 1-9(c) of the Code. If the hearing officer rules against the applicant, then the applicant shall be given notice of the right to seek an injunction or judicial review of the decision as provided in Section 1-9 of the Code and applicable laws, including Article 6252-13d of the Texas Revised Civil Statutes." Section 28-254 (f). Issuance of permits. Should the director fail to issue or deny a permit application within the time specified, or to provide a hearing within the specified time, the applicant, upon written request, will be issued a temporary permit which shall be valid until the third day after the applicant is given notice of the director or hearing officer's decision. Section 28-254 (a). Issuance of permits. If any personal card or on-site card is lost or stolen, the holder thereof shall immediately notify the vice division and request a replacement, which shall be issued for a fee of ten dollars ($10.00) within three (3) ~ days following verification of the identity of the holder. Section 28-255 Term, transfer. amendments. A permit is valid for two years from the date of its issuance. Section 28-255 ~ Term. transfer. amendments . A permit is personal to the named license holder only. Section 28-255 (cl. Term, transfer. amendments. The vice division shall be advised of changes of addresses within ten days following the move. Section 28-256 Display. Each holder of a permit shall conspicuously display his permit at all times while acting as an entertainer or manager of an enterprise. Section 28-256 (b). Disalav. Each manager or entertainer shall provide his on-site card to the manager or on-site manager in charge of the enterprise to hold while the manager or entertainer is on the premises. 31 of 37 11/30/1999 5:11 PM TXhouston r http://www.communitydefense.org/cdcdocs/landuse/html/txhouston.cfm '" Section 28-256 Dis°Iav. It shall be presumed that the actor did not have a '~ permit unless the permit is on display. Section 28-257. Revocation. In the event that the director has reasonable ground to believe that any permit holder has been convicted of or spent time in jail or ~ prison for an offense as specified in the applicable provision of Section 1-10 of this Code within the time specified therein, then the director may revoke the permit ~' following a notice of the grounds and a hearing as provided in Section 1-9(b) of ~, this Code. In the event that the hearing officer determines that the permit should be revoked, then he shall issue his final decree to be effective in thirty days following the mailing of notice of the decree to the permit holder in order to allow ~, the permit holder an opportunity before the permit must be surrendered to seek an injunction or judicial review of the decision as authorized in Section 1-9 of this Code and applicable laws, including Article 6252-13d of the Texas Revised Civil Statutes." Section 28-258 Conduct of entertainers. While engaging in entertainment or while exposing any specified anatomical areas or engaging in any specified sexual activities, an entertainer may not touch a customer or the clothing of a customer. Section 28-258 Conduct of entertainers. This section is intended to eliminate the closed areas in the enterprise. No employee shall engage in entertainment or expose any specified anatomical areas or engage in any specified sexual activities in the presence of a customer in any "separate area" of an enterprise in which the entry or access is blocked or obscured by any door, curtain or other barrier. Section 28-259 ~ Penalties . The violation of any provision of this Article, including the doing of anything which is herein prohibited or declared to be unlawful or the failure to do anything or perform any duty which is required herein, shall be punishable as provided by Section 243. 010(b) of the Local Government Code. Each day that any violation shall continue shall constitute and be punishable as a separate offense. Section 28-259 (b). Penalties. The revocation or suspension of any permit shall not prohibit the imposition of a criminal penalty and the imposition of a criminal penalty shall not prevent the revocation or suspension of a permit. Section 11=10 of the Code of Ordinances. Houston. Texas is hereby amended by adding a new item (3) to Subsection (b) thereof, which reads as follows: 3. Permits for sexually oriented business enterprise entertainers and managers issued pursuant to Article VIII or Chapter 28 of this Code: a. Any of the following offenses as described in Chapter 43 of the Texas Penal Code: i. prostitution; 32 of 37 ii. promotion of prostitution; 11/30/1999 5:11 PM TXhous[on http://n~vw.communirydefense.org/cdcdocs/lenduse/htmVtxhous[on.cfm 0 "" iii. aggravated promotion of prostitution; iv. compelling prostitution; v. obscenity; vi. sale, distribution or display of harmful material to a minor; vii. sexual performance by a child; viii. employment harmful to children; or ix. possession or promotion of child pornography; a. Any of the following offenses as described in Chapter 21 of the Texas Penal Code: i. public lewdness; ii. indecent exposure; or iii. indecency with a child; a. Sexual assault or aggravated sexual assault as described in Chapter 22 of the Texas Penal Code; b. Harboring a runaway child as described in Chapter 25 of the Texas Penal Code; or c. Criminal attempt, conspiracy or solicitation to commit any of the above offenses. d. Any violation of Article VIII of Chapter 28 of this Code. The above-listed offenses shall be grounds for the denial, revocation or refusal for renewal of a permit under Article VII of Chapter 28 of this Code because persons who hold that permit are employed by sexually oriented businesses where there is a high degree of opportunity for unlawful sexual conduct or the solicitation thereof, lewd conduct, obscenity offenses, and conduct harmful to minors. Therefore, the enumerated offenses are directly related to the duties and responsibilities authorized by the subject permit. There is a serious need to protect members of the public and fellow employees of sexually oriented business enterprises from ~r persons who have the foregoing criminal histories." Section 7. a. Section 2 of this Ordinance shall be effective on the 120th day next following date of its passage and approval. An adult mini-theatre operator may obtain an ~" extension of such compliance date to the thirtieth (30th) day from the effective date 33 of 37 11/30/1999 5:11 PM 174~ouston w. w. http://www.communiNdefense.org/cdcdocs/lenduse/htmVochouston.cfm ~„ of this ordinance by filing the following with the police chief by the thirtieth (30th) day prior to such effective date: i... 1. A statement under oath setting forth that remodeling for which a City building permit is required will be necessary to conform the adult mini-theatre to the requirements of this Article, specifying the nature thereof and stating that such building permit has been obtained and work thereunder has commenced. 2. A copy of the building permit, and 3. A statement under oath that all interior doors, and all screens or curtains that may be used as door coverings have been removed from any portion of the adult mini-theatre to which patrons are admitted. (b) A permit issued under Article II of Chapter 28 of the Code of Ordinances for the operation of an adult arcade does not constitute a valid permit for the operation of any premises that also constitutes an adult mini-theatre following the effective date or an extension as provided in Subsection (a), above. Any such premises shall be required to obtain a new permit authorizing operation as both an adult arcade and an adult mini-theatre before the effective date or the expiration of any extension granted, as provided in (a). Section 8. (a) Except as provided in Subsection (f) below, the amendments to Article III of Chapter 28 of the Code of Ordinances adopted in Section 3 of this Ordinance shall take effect on the 180th day next following the passage and approval of this Ordinance. All permits issued under Article III of Chapter 28 of the Code of Ordinances prior to the date of passage and approval of this Ordinance shall become void on the effective date. The purpose of this section is to provide for the orderly implementation of this Ordinance insofar as the amendments to Article III of Chapter 28 of the Code of Ordinances adopted in Section 3 of this Ordinance institute new requirements for enterprises permitted prior to the date of passage and approval of such amendments. With respect to enterprises that fail to conform to such requirements, this section is intended to provide for an initial period for recoupment of investment, subject to extension as provided in Subsection (c) below, and an opportunity to apply for a permit and, if the permit is denied by the director and the hearing officer, to initiate judicial review prior to the effective date of this Ordinance. (b) Any enterprise that on the date of passage and approval of this Ordinance holds a current ~! and valid permit issued under Article III of Chapter 28 of this Code of Ordinances prior to the W date of passage and approval of this Ordinance, may operate until the effective date. However, in order to qualify for amortization or for the land use provisions of subsection (e), ~! any such enterprise shall apply for a new permit under Article III of Chapter 28 of the Code of it Ordinances as amended by Section 3 of this Ordinance on or before the 45th day next following the date of passage and approval of this Ordinance. Any enterprise that is authorized to operate until the effective date under this subsection must remain at the same location at which it was situated on the date of passage and approval of this Ordinance. Enterprises that hold a permit on the date of passage and approval of this Ordinance and apply for a new permit within 45 days, as provided above, shall be afforded a prorated credit 34 of 37 11/30/1999 5:11 PM TXhouston http://www.communitydefense.org/cdcdocs/lendusc/htmVtxhoustoacfm A r as determined by the director for permit fees previously paid. (c) The provisions of this Subsection (c) shall only be applicable to enterprises that on the date of passage and approval of this Ordinance hold a current and valid permit issued under !~ Article III of Chapter 28 of the Code of Ordinances prior to the date of passage and approval of this ordinance, that timely apply for a permit within 45 days following the date of passage and approval of this Ordinance under Subsection (b) above, and the permit is denied. The director shall grant an extension for the continued operation of the enterprise in the event that the owner proves that he will be unable to recoup his investment in the business that was incurred through the date of passage and approval of this Ordinance by the effective date. In order to secure an extension of time, the owner must submit to the Director a written request for such extension on or before the ninetieth day next following the date of passage and approval of this Ordinance. No application for extension received by the Director after that date shall be considered. Such written request shall set forth the following information: (1) the amount of the owner's investment in the existing enterprise through the date of passage and approval of this Ordinance; (2) the amount of such investment that has been or will be realized through the effective date; (3) the life expectancy of the existing enterprise; (4) the existence or nonexistence of lease obligations, as well as any contingency clauses therein permitting termination of such lease. This information shall be supported by relevant documentary evidence such as financial statements and tax records. Copies of such documentary evidence must be attached to the request for extension. No investment that was not incurred by the date of passage and approval of this Ordinance shall be considered. The Director shall notify an applicant for an extension of time of the time and place of a hearing to be held on such request before the Director or a hearing official that he may designate. After such hearing, the Director or hearing official shall issue a written order on the request for extension. If the owner desires to seek judicial review of the Director's or hearing official's order, he may do so by following the procedure set forth in Section 28-135 of the Code of Ordinances. Extensions that are granted shall specify a date certain for closure, and shall not be valid for operation of any other location. (d) Existing enterprises that remain in operation pursuant to Subsections (b) and (c) shall not be considered as having a permit for purposes of measurement of distances between enterprises as required pursuant to Section 28-125 (b) (2) of the Code of Ordinances. (e) For the purpose of limiting the impact of the amendments in Article III of this Ordinance upon existing businesses, the provisions of Sections 28-125 (b) (2) that enterprises be situated 1,000 feet or more from each other shall not be applicable to any enterprise that holds a current and valid permit issued under Article III of Chapter 28 of the Code of Ordinances on the date of passage and approval of this Ordinance, provided that such enterprise makes application for a permit under Subsection (b) of this Section on or before the 35 of 37 11/30/1999 5:11 PM TXhous[on http://www.communitydefense.org/cdcdocs/lenduse/hunVbchoustortcfm 45th day next following passage and approval of this Ordinance, and provided, further, that "" the application is not denied under any other land use criterion of Article III of Chapter 28. of the Code of Ordinances, Houston, Texas. (f) The effective date of Section 3 of this Ordinance as provided in Subsection (a), above shall ~' only apply with respect to enterprises that hold a current and valid permit issued prior to the ~, date of passage and approval of this Ordinance under Article III of Chapter 28 of the Code of Ordinances on the date of passage and approval of this Ordinance. Any enterprise that does not hold a current, valid permit, including any enterprise for which application is pending but ~, not yet granted or denied on the date of passage and approval of this Ordinance shall be subject to all provisions of this Ordinance on such date of passage and approval, and this Ordinance shall be effective immediately upon its passage and approval with respect to any such enterprise. Any permit application currently pending or the denial of which is under appeal to a hearing official shall become invalid immediately upon the date of passage and approval of this Ordinance and shall be returned along with a refund of the application fee to the applicant. Any permit application received after passage and approval of this ordinance shall be considered by the Director under the criteria set forth in Article III of Chapter 28 of the Code of Ordinances as amended in this Ordinance, provided that any appeal to a hearing official may be heard by a hearing official appointed by the mayor and confirmed by the city council. Any enterprise for which an otherwise current and valid permit has been suspended shall be treated as though it had a current and valid permit in the administration of this Section. Section 9. Sections 4 and 5 of this Ordinance shall become effective on the 120th day next following the date of its passage and approval by the Mayor. In order to afford any person who requires a permit under Article VII of Chapter 28 of the Code of Ordinances, Houston, Texas, an opportunity to apply for a permit and, if the permit application is denied by the director and the hearing officer, initiate judicial review prior to the effective date of the Ordinance, the Police Chief or his designees shall commence accepting and processing applications for permits on the ninetieth day prior to the effective date of this Ordinance. Permit applications shall be processed and hearings shall be conducted within the times specified in Section 28-254 of the Code of Ordinances, as adopted in Section 4 of this Ordinance, so as to ensure that applicants who promptly apply for permits and, if denied, request hearings, will have a period of at least thirty days in which to seek judicial review or injunctive relief before this Ordinance becomes effective. Permits issued prior to the effective date shall be postdated to the effective date. CONCLUSION It is the hope of the committee that by strengthening this Ordinance the following will be achieved: ~" (1) Streamlining through the legal department should expedite the process of revocation. L ~j 36 of 37 11/30/1999 5:11 PM ~ 7Rhouston http://www.communitydefenu.org/cdcdocs/landuse/h[mVtxhoustoacfm r (2) The licensing of entertainers and managers should bring accountability to the profession. '~ (3) Configurations and lighting should aid the police department in their investigations. (4) Increased distancing should bring more protection to the city's family centers, parks and neighborhoods. (5) The elimination of the "glory hole" should reduce the risk of anonymous sex. ~ Not all sexually oriented businesses are run illegally. With stronger regulations the inclination ` toward criminal activity will deteriorate. Thus, allowing legitimate business to be protected along with Houston and its residents. 37 of 37 11/30/1999 f I I PM .. _. ~^ L. A 40 Acre Study Prepared by Planning Division Department of Planning 6c Economic Development City Hall Annex 25 West Fourth Street Saint Paul, Minnesota 55102 ~~ e' ,~ ~" 1. Who initiated the study? . The -City Council (Resolution $276732) • 2. What is the scope of the study? The study examines adults-only uses: adult saunas, adult massage parlors, adult theatres, adult bookstores, and adult _ live entertainment, and makes recommendations to regulate their location. 3. What recommendations does the study make? The study recommends amendments to the Zoning Code intended to control incompatible uses and concentrations - of adult entertainment:: - . - -- :Define adult entertainment uses. - - Restrict adult entertainment to B-3, B-4, IBS, and -._ , . 1-l. zones.. -. _ . - .. .. .. ..4. _ ' - Make-adult entertainment a special condition use, requiring a public hearing: ~. --:..: , - :_ = ,.• ::... .__ - Require in a B-3: 1000' radial from other adult entertain- - .. meet uses; !00'.from residential. property; no access to adjacent residential propperty. - Require In-the Downtown (b-4, B-5): 300' radial from other adult entertainment uses. 4. What problems are addressed by the study? - Existing zoning and licensing regulations do not adequately dLfferentiate between adults-only and other uses. _ - Adults-only uses are permitted in restrictive office and commercial zones intended to serve neighborhood needs. - Concentrations of adult entertainment change the per- ception of neighborhoods. - Regulations must guarantee the rights of both the business owners and the neighborhoods. err I DIVISION OF PLANNING DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT CITY OF 6AINT PAUL ~M CITY MALL ANNEx 25 VlEST FOURTH STREET, SAINT PAUL• MINNESOTA 35102 TELEPHONE: 812.298.4151 IY 5. .Are the recommendations consistent with the Comprehensive Plan? Yes. One of the Plan's major goals is the protection of the City's neighborhoods. ' . NOTICE OF PUBLiC HEARING The City Council has initiated a 40 Acre Study relative to the regulation of adult entertainment uses in Saint Paul. Specific texts of the Study are an file in the Zoning Section of the City Planning Division, located at the City Hall Annex, 25 West Fourth Street, and may be viewed there upon request. The Planning Commission has fixed the 27th day of May, 1983, at 9:00 in the morning, in the City Hall Annex, 15th Floor, 25 West Fourth Street; 'and at said time and place the Planning Commission will hear all testimony relative to the study. Liz Anderson, Chairman Saint Paul Planning Commission 3 it TABLE OF CONTENTS I. INTRODUCTION I II. AUTHORITY 2 II[. SCOPE OF STUDY 3 1V. BACKGROUND 3 RECOMMENDATIONS REGULATIONS B. PROTECTION FROM PERMITTED BUT 7 it VI. CONCLUSION 11 YIL PROPOSED AMENDMENTS 12 TO ZONING CODE ~" Ir I. INTRODUCTION Saint Paul's adult entertainment industry is a relatively innocuous one. There are several notable exceptions which are highly visible, at the corners of University and Dale and at Wabasha and Ninth, but moat remain scattered and isolated. Inadequate regulations of these adults-only uses, however, could result in these exceptions becoming the rules throughout the City. These specific cases flag the need for foresight in providing safeguards for all of Saint Paul's neighborhoods. This paper is in response to a City Council initiated 40 Acre Study to investigate Saint Paulo adult entertainment industry and to recommend regulations to control its concentration. 11. AUTHORITY The concept of "inverse zoning" to eliminate concentrations fi of skid row businesses was first implemented by the city of Detroit in its "Anti-Skid Row" ordinance adopted in 1962, and amended to include sexually-oriented businesses In 1972. The ordinances provided that an adults-only business could not be located within 1000' of any other regulated use or within S00' of a residential area. The ordinances were subsequently challenged on their constitutionality by the owners of two adults-only theatres. In the landmark Youn vs. American Mini-Theatres 427 US. 50 (1976) Decision, the United fates Supreme Court held that: 1. "The Detroit Ordinances did not have a signifipnt deterrent effect on the exploitation of films protected by the First Amendment. 2. "...Apart from the fact that the ordinances treat adult theatres differently from other theatres and the fact that the classification is predicated on the content of material shown in the respective theatres, the regulation of the place where such films may be exhibited does not offend the First Amendment 3. "...The City's interest in the present and future character of its neighborhoods adequately supports its classification of motion pictures. We hold that the zoning ordinances requiring adult motion picture theatres not be located within 1000 ft. of two other regulated uses does not violate the equal protection clause of the Fourteenth Amendment:' A -1- w W }w !r In other words, the Supreme Court found that regulation of the !p ace where adults-only films may be exhibited does not violate free expression: a dty's interest in planning and regulating the use of property for cammeraal purposes is dearly adequate to support locational restrictions. Subsequent to this Supreme Court decision, many sties enacte zoning legislation designed to regulate the location of present and future adult entertainments. Some have modeled their ordinances after the Detroit Ordinance and others have major variations, such as Boston's infamous "combat zone". However the following principles can be std to construct constitutional valid ordinances: ~ 1. The greater is the vagueness inherent in an ordinance's wording or definitions, especially if rising to the degree that anon-pornographic entrepreneur must worry whether he is within the ordinance's prohibitions, the more likely it is that the ordinance will be struck down. 2. The more evident and rational is the relationship of the adult-use restrictions to rerngnized zoning purposes, such as the preservation of xighborhoods and the grouping of compatible uses, the greater is the likelihood that the restriction will be upheld. 3. Locational restrictions cannot be so severe as to result in an inability to accommodate the present and/or future anticipated number of adult businesses in a city. In Young the wurt upheld the Detroit Ordinance upon finding that numerous sites implying with the Detroit inning requirements were available to adult businesses and that she market for sexually explicit fare, viewed as an entity, was therefore "essentially unrestrained". 4. An ordinance which grants administrative officials dis- cretionary power whether or not to allow particular adult businesses to operate is more likely to be struck down as violative of the precept, emphasized by the ~You_nR dissenters, that in the First Amendment area government may regulate only with narrow specificity". -2- b i`` 11I. SCOPE OF STUDY Adults-only businesses may be divided into two broad cat- egories: sex-related and alcohol-related. Those which fall under sex-related are the saunas, massage parlors, adult theatres and bookstores; those included as alcohol-related are generally establishments with liquor licenses. This discussion is restricted to the first category, sex-related adult entertainment. The second category, alcohol-related, is not included for several reasons: problems associated with bars are generally related to operation rather than to location; it is almost impossible to distinguish between a bar and a restaurant with a liquor license; given the limited amount of B-3 zoned property in the City, restricting them to that zone would virtually eliminate alternative locations and would create along list of non-conforming neighborhood businesses. I.iccnsing is the more appropriate way to regulate bars. There are stringent requirements inUuding distances from schools, churches, other liquor license; operational procedures; City Council public hearings with mailed notice; and, of course, the possibility of revocation. IV. ACKGROUND At last count, there are twenty-four a ult entertainment establishments in Saint Paul: !0 Saunas, Massage 7 Adults-only, live entertainment S Bookstores 2 Theatres All of the twenty-four are zoned for commercial use: 6 B-2 (Community Business) 12 e-3 (General Business) 4 B-4 (Downtown) 2 CAAPB (Capitol Area Board) 7urisdIction Eighty-five percent (21) are located on major thoroughfares: University, Snelling, W. Seventh, Rice, Arcade, and Payne; the other three are on Grand, Hudson Road and Milton. -i- 9 n aka ~«. The total numbs-has dropped from thirty in 1977: !0 Sauna/massage parlor 13 Live, adult entertainment S Bookstores 2 Theatres While sawas, massage parlors, bookstores, and theatres have remained constant over the past five years, live adult entertain- ment has decreased. This pattern with respect to saunas, massage parlors, and live entertainment is certainly in part due to more restrictive licensing regulations which involve consent petitions and public hearings with 30 day notice. Saint Paul curcently regulates these adult entertainment uses in two ways: zoning and licensing. These regulations are summarized in the following chart. -4- 8 r~ ONING ENSIN arto ni'TsT nr[IC antuo mtul olsr.ul Ic an wosna[s ut[wi a "~ rlw lT ra l u w a aNl e[auuami ua t i w liiw [~"aY"' im I ~ U tt b l ll e [s epwt LOi[STdI[f ttD' 1•l b b b• b b b b to etrau L6[SI /•uu o me ai eo °i a T wra x311 rt ~ooile[t r • iolta : . t sears eel a as lu bun n r10Slltsn rl MtSe[t MetOti b etnpr[ .0 b i[S Sllf fe' WLIf fOgIS.ONILM[S StlSit[I cline NO' OaaSteYlSNI[E eY4( iM11M[S b• ht b b b• e0 q b b lei TWTII) I LIS[ ararettwort b 1•t b b i[3 30S C1115[ltr Sn i[S biE fTeiW lead ao i iu10 w ~• n > Wn[Wtipt, b asst b b1 rti [[YI b b el w wuas • e. eturl.liuefw Mt.e.. ee+lUeti e.e stMr .SM V. ISSUES AND One of the major goals of the City's adopted Comprehensive RECOMMENDATIONS Plan is the preservation of the City's neighborhoods. Without controls on the growth and locations of adult entertainment, the City's neighborhoods could change dramatically; the perception of decline associated with adult-entertainment is critical to a neighborhood's well-being. Controls should address the way we protect our neighborhoods in at least three areas: existing regulations, incompatible uses, and wncentrations of uses. A. DEFINITION: EVALUATION OF EXISTING REGULATIONS 1. ISSUE The City's existing regulations were summarized in the chart in Section IV of this paper. There are some easily discernible omissions in these controls: Zoning: The Zoning Code does not discriminate between adults-only and other retail/service/commerdal uses. Adults-only bookstores could be located in the B-2 (Community Business District) just as any other bookstore or retail use; and adults-only theatres could be located in the B-2 just like any other theatre. Saunas would probably be determined to be similar to health clubs and allowed in the B-1 (Local Business District?; and massage parlors and conversation parlors would probably be regarded as providing a personal service and permitted in the most restrictive of the commercial nines, the OS-1 (Office-Service District). -5- ' s licensing ordinances Licensing: Likewise, the City do not discriminate between the adults-only bookstores ~' and theatres and all others. Licensing requirements for saunas and massage parlors are stringent, requiring consent from neighbors within 200', a City Council hearing with 30 day notice, and provisions for protection of neighborhood character; the only locational require- ments indicate that the use must comply with the Zoning Code. Enforcement has been a problem because mes d th i h r na e ange many establishments have simply c to "health club", subverting the original intent of the law. Entertainment licenses are required where liquor is served and consent, notice, and public hearing require- ments are similar to those for saunas and massage parlors. Certainly, there is a difference in the Faust and the Grandview, in the Wabasha Bookstore and Odegaard's, in a realtor's office and a massage parlor; but our existing ordinances and codes don't roflect those inherent differences. As a consequence, the businessman along the rnmmercial strip has no assurance that an X-rated theatre might not move in next door; the resident, no assurance that the local dentist's office might not become the neighborhood massage parlor. 2. RECOMMENDATION Recognizing that the Supreme Court in its decision involving the Detroit Ordinance found that the place where films may be exhibited does not affect the right of free expression, amendments to the Zoning Code should include definitions of adult, adults-only theatres, bookstores, saunas, massage parlors, conversation parlors, and cabarets Uive adults-only entertainment). 3. DISCUSSION A good zoning definition enables planners, officials and the public to distinguish between similar, but not identical, uses. Adult entertainment has been defined in two basic ways: the "Detroit model" which very explicitly lists "Specified Sexual Activities and Anatomicz Areas" and the "Boston model" which relies on existing State obscenity laws which prohibit the distribution of pornographic material to minors. The approach proposed here is most similar to the "Boston model" with the great advantage that any operator who avoids violating the State's obscenity laws will automatically prohibit attendance by minors; the restriction of the adult uses becomes, to a large part, self-controlling. Thus once an establishment is required to place itself off limits to minors, it wncurrently becomes subject to zoning restrictions. "' it -6 • - ., W B. PROTECTION FROM PERMITTED BUT INCOMPATIBLE USES 1. ISSUE Saint Paul's Zoning Code has a number of different commercial zones, each with a specific intent: OS-1: The OS-1 Office-Service District is intended to accommodate various types o o ice use performing adminLstrative, professional and personal services and to serve as a transitional use between the more intensive uses of land Such as major thoroughfares or commercial districts and the less intensive uses of land such as one-family residential. B-1: The B-1 Local Business District is intended to permit those uses as are necessary to satisfy the basic convenience shopping of service needs of persons residing in nearby residential areas. B-2: The 8-2 Communit Business District is intended to serve the nee s o a consumer pop anon larger than that served by the "Local Business District," and generally characterized by a Duster of establishments generating large volumes of vehicular and pedestrian traffic. B-3: The B-3 General Business District is intended to provide sites or more ver : types of businesses than those in the B-1 and B-2 business districts, and is intended for location, along major traffic arteries or adjacent to the Community Business Districts. B-4: The B-4 Central Business District is intended to permit those uses w ' provt a or a variety of retail stores and related activities, and for office buildings and service establishments which occupy the prime frontages in the Central Business District; and which serve the consumer population beyond the rnrporate boundaries of the city. B-5: The B-5 is intended to provide the necessary services for the population area which is served by all of the previous business districts. Such service establishments often involve objectionable influences, such as noise from heavy service operations and large volumes of truck traffic, and are thus incompatible with the previous business districts. -~- Under the existing Code, any of the adulu-only uses could go into the B-2 district. In other words, the neighborhood, corner drugstore could become a Wabasha Bookstore or the local theatre, a Faust, without benefit of public hearing ar community comment. As the Code now stands, these incompatible uses mould go in by right, as permitted uses. 2 RECOMMENDATION The Zoning Code should be amended to place adult entertainment in the 8-3, B-4, B-S or (zones. 3. DISCUSSION Mr. Ferris Alexander, in expert testimony before the Minnesota 4th District Court (in the case of the Mimeap< Adults-Drily Ordinance) stated the locatianal requiremen for successful adult theatres and bookstores. According to his testimony, the type of location required is "at street level in the vicinity of other retail businesses, with a lot of vehicular and pedestrian traffic, well- lighted, and close to transportation:' Adult entertainment fits the intent of the B-3, B-4, 8-3 zones: they draw from a metropolitan consumer population and typically seek locations along well- lighted major retail, traffic and transportation arteries. Within Saint Paul, that would mean baslcatly the comme: strips along major traffic arteries and the downtown area. This classification provides for the needs of adult entertainment while protecting neighborhoods from the intrusion of people, traffic and accompanying nuisances. The majority of the twenty-two existing adult entertain- ment businesses are already zoned B-3 or higher: twelve B-3 and four, B-4. The remaining six are zoned B- 2 and would be non-conforming. -8- 1~ ~. r. C. PROTECTION FROM CONCENTRATIONS 1. ISSUE In testimony before the Supreme Court in the case of Gibbs vs. American Mini-Theatres, urban sociologist Mel avitz state a socio ogical axiom: if people believe something to be true, even if it not originally, they will tend to act as if it were true and, in so doing, help produce the condltlon originally believed. "If residents of any neighborhood believe that the concentration of the prescribed uses damages the neighborhood, they will act as if it weCe true and will seek to move away and allow people with different standards... It is far too risky for a city to allow indiscriminately into residential areas any number of commercial uses which have already been identified as those which concentration help shake people's confidentr." Within Saint Paul, there are two locations which people would readily identify as concentrations of adult entertain- ment: University and Dale and Ninth and Wabasha. Saint Paul's Zoning Ordinance already has recognized the impact of concentration with the 1320' requirement for residential group homes as well as incompatibility with residential uses with the 100' requirement for game-rooms. In Youn vs. American Mini-Theatres the Supreme Court irm y seta fished that local authorities have the police power to regulate the location of businesses that deal in First Amendment protected materials provided that such regulations do not limit freedom of access to such materials under the Fourteenth Amendmem The Detroit ordinance stipulated that such businesses could not be located within S00' of a residence or within 1000' of another regulated use. The City of Detroit was able to prove that there was a "myriad" of locations that would be suitable for such businesses. The Detroit ordinance did not require amortization of businesses that were in operation prior to approval of the ordinance. -9- 1 ~. 2. RECOMMENDATION The Zoning Code should be amended to make adult entertainment Special Condition Uses in the B-3, B- 4, B-S and I-1 tunes. The cronditions would be three hundred radial feet between uses in the B-4, B-5, (the average downtown block) and one thousand radial feet between uses in the B-3 zone (the one and one half average commercial blocks outside of the downtown}. The I-1 tune permits B-3 special crondition uses as regulated. 3. DISCUSSION Essentially, this regulation limits adult entertainment to one per one and a half block faces; the radial foot measurement prohibits situations on corners with uses on both of the intersecting streets. This requirement is consistent with others in the Zoning Code, such as the 1320' rule for group homes. With the exception of tlx University and Dale and North Wabasha dusters, the existing businesses could meet this standard; and over one hundred alternative locations would also meet this standard. 4. RECOMMENDATION The Zoning Code should be amended to require that adult entertainment uses in the B-3 zone be a minimum of one hundred feet from residentially zoned property, measured from the front door of the use to the resident property line and that there be no access, other than for fire and safety requirements, to abutting or adjoinir residentially tuned property. 5. DISCUSSION The majority of the City's B-3 property lies along commercial strips, characterized by shallow lots and abutting residentially zoned property. <f the 100' measi ment were made from building to property line, virtual' no B-3 structures would wnform; thus, the measuremer from the front door with no "back door" access. The intent of this requirement is to put traffic and trade on the commerda! front of the block. The 100'require ment is consistent with the Zoning Code requirement for indoor commerda! uses such as pool halls and video arcades. -10- I, '_'7 As with all special condition use permits, the Planning Commission rnuld modify if the applicant wuld prove that "strict application of such special conditions would unreasonably limit or prevent otherwise lawful use of a piece of property or an existing structure and would result in exceptional undue hardhsip to the owner of such property or structure, provided that such mod- ification will not impair the intent and purpose of such special condition and is consistent with health, morals and general welfare of the community and is consistent with reasonable enjoyment of adjacent property". Businesses in existence at the date of adoption of these amendments which would be classified as non- conforming would be entitled to ail rights guaranteed by that Uassification. Existing. inning and licensing regulations do not a differentiate between adultsanly and other uses. B. Adults-only uses are permitted in restrictive office and commercial nines intended to serve neighborhood populations and to provide buffers between residential and more intensive uses. C. Concentrations of adult entertainment uses diange the perception of neighborhoods about themselves. D. Adult entertainment uses may be regulated in such a way as to guarantee the rights of both the owners of these businesses and the neighborhoods. -11- IS VII. PROPOSED AMENDMENTS TO ZONING CODE A. SECTION 60.201 NEW DEFINITION NEW DEFINITION NEW DEflNITION NEW DEFINITION NEW DEFINITION A -ADULT USES -l2- (< ADULT BOOKSTORE ADULT MOTION PICTURE THEATRE ADULT MINI-MOTION PICTURE THEATRE ADULT CABARET i. ~r Y~ NEW DEFINITION NEW DEFINITION MASSAGE PARLOR, SAUNA, 1-IEALTH CLUB or -13- ~~ CONVERSATION, RAP PARLORS The term "conversation lor" shall not include bona fide e meth chtatric c to ical or counselin services by a person or irm appropriate y license • or bona i educana r ~. .~ B. SECTION 60.543 PROPOSED CHANGE C. SECTION 60.5544 PROPOSED CHANGE D. SECTION 60.563 PROPOSED CHANGE PRINCIPAL USES PERMITTED SUBJECT TO SPECIAL CONDI (IN THE B-3 ZONE) G^ PRINCIPAL USES PERMITTED SUBJECT TO SPECIAL COND' (IIV THE B-5 ZONE) d the use shall be at least use. -14- 14 PRINCIPAL USES PERMITTED SUBJECT TO SPECIAL COND1 (IlV THE B-4 ZONE)