Adult Entertainment Establishments Text AmendmentReturn to bJeanne Schneider. City Cle k eAddress:s City (Hall a50 W V131 St STelephonen589-4121 1 O
ORDINANCE NO. 24-08
AN ORDINANCE AMENDING APPENDIX A (THE ZONING ORDINANCE) OF THE
CITY OF DUBUQUE CODE OF ORDINANCES BY AMENDING SECTION 4-8.1
GENERAL STATEMENT OF INTENT TO REFERENCE THE SECONDARY
NEGATIVE IMPACTS GENERATED BY A CONCENTRATION OF ADULT
ENTERTAINMENT ESTABLISHMENTS, AND BY AMENDING SECTION 4-8.3(2)
GOVERNING THE LOCATION AND SPATIAL SEPARATION OF ADULT
SEPARATION BETWEENBADULT ENTERTA LAMENT USOES. 2'500 FOOT
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That Appendix A (The Zoning Ordinance) of the City of Dubuque
Code of Ordinances is hereby amended by adding language to Section 4-8.1 General
Statement of Intent, referencing the secondary negative impacts generated by a
concentration of adult entertainment establishments:
(1) These are further intended to require that adult entertainment
establishments shall not be permitted to locate in such concentration that their
operational features may establish the dominant character of any commercial or
industrial area and that may generate secondary negative impacts in thevalues.
community that include increased crime rates and decreased property
Section 2. That Appendix A (The Zoning Ordinance) of the City ofoDebninu the
Code of Ordinances is hereby amended by amending Section 4-8.3(2) g 9
location and spatial separation of adult entertainment establishments and establishing
2,500 foot separation between adult entertainment establishments:
(2) No adult entertainment use shall be allowed within
two-thousand five-hundred feet (2,500') of any other adult entertainment
use.
Ordinance No. 08
Page 2
Section 3. The foregoing amendment has heretofore been reviewed by the
Zoning Advisory Commission of the City of Dubuque, Iowa.
Section 4. This ordinance shall take effect immediately upon publication, as
provided by law.
Passed, approved and adopted this 17th day of March, 2008.
Roy D. Buol, Mayor
Attest:
Jeanne F. Schneider, City Clerk
Planning Services Department
City Hall
50 West 13~ Street
Dubuque, IA 52001-4864
(563) 589-4210 phone
(563) 589-4221 fax
(563) 690-6678 TDD
planningQcityofdubuque.org
The Honorable Mayor and City Council Members
City of Dubuque
City Hall - 50 W. 13th Street
Dubuque IA 52001
THE CITY OF ~ /~ Dubuque
DUB E
Masterpiece on the Mississippi ' I I
2007
March 7, 2008
Applicant: City of Dubuque
Description: Text Amendment to the Zoning Ordinance for the Regulation of Adult
Entertainment Establishments.
Dear Mayor and City Council Members:
The City of Dubuque Zoning Advisory Commission has reviewed the above-cited
request. The application, staff report and related materials are attached for your review.
Discussion
Laura Carstens, Planning Services Manager, outlined the City's request to increase the
separation requirement for adult entertainment establishments. She discussed the
existing adult entertainment establishment moratorium and said that modifying the adult
entertainment regulations has been identified as part of drafting the new Unified
Development Code for the City. She said that staff felt it was necessary to strengthen
the regulations to address the secondary negative impacts created by adult
entertainment establishments. She discussed four studies provided in the agenda
packet from the cities of Los Angeles (1977), Phoenix (1979), Minneapolis (1980) and
Indianapolis (1984). She said that these studies clearly demonstrate that when adult
entertainment establishments cluster, there is an increase in crime and a decrease in
property value.
She noted the Zoning Ordinance has definitions for adult entertainment establishments
and the current separation requirements. She discussed the variety of separation
requirements for cities within the region. She stated that each city's unique character
may dictate its separation requirements. She discussed the maps provided in the
packet and the total land area that will be available for adult entertainment
establishments before and after the text amendment. She said that if the text
amendment is approved, there still will be adequate area for adult entertainment
establishments to locate.
Staff Member Hemenway noted that the intent of the text amendment is not to limit
freedom of expression, as articulated in the First Amendment of the Constitution. He
Service People Integrity Responsitrility Innovation
THE CITY OF
Dus E
^Variance
^Conditional Use Permit
^Appeal
^Special Exception
^Limited Setback Waiver
-, ,:
I;'_'> ~ {
t~i;9ss 9 ~~i
;.; u, -. i
tsi ~~ " ,~ ;,-, , r
^Rezoning
^Planned District
^Preliminary Plat
^Minor Final Plat
Text Amendment
Please tvoe or print legibly in ink
^Simple Site Plan
^Minor Site Plan
^Major Site Plan
^Major Final Plat
^Simple Subdivision
City of Dubuque
Planning Services Department
Dubuque, IA 52001-4864
Phone:563-589-4210
Fax: 563-589-4221
^Annexation
^Temporary Use Permit
^Certificate of Economic Non-Viability
^Certificate of Appropriateness
^Other:
Properly owner(s): Phone:
Address:
City:
Fax Number: Mobile/Cellular Number:
State: Zip:
Applicant/Agent: City of Dubuoue Phone:
Address: 50 W. 13th Street City: Dubuque State: IA
Fax Number: Mobile/Cellular Number:
Zip: 52001
Site location/address: City-wide
Existing zoning: N/A Proposed zoning: N A Historic District: No Landmark: No
Legal Description (Bidwell parcel ID# or lot number/block number/subdivision):
Total property (lot) area (square feet or acres):
Describe proposal and reason necessary (attach a letter of explanation, if needed): To increase
required separation between adult entertainment establishments from 500 feet to 2,500 feet.
CERTIFICATION: I/we, the undersigned, do hereby certify that:
The information submitted herein is true and correct to the best of my/our knowledge and upon
submittal becomes public record;
2. Fees are not refundable and payment does not guarantee approval; and
3. All additional required written and graphic materials are attached.
Property Owner(s): Date:
)! Applicant/Agent: ~' ~ Date: ~ ~ ~~
FOR OFFICE USE ONLY -APPLICATION SUBMITTAL CHECKLIST
Fee: ~~ Received by: ~~d1 Date: ~~-~ - ~ ~ Docket:
^ Site/sketch plan ^ Conceptual Development Plan ^Photo ^ Plat
^ Improvement plans ^ Design review project description ^ Floor plan ^ Other:
THE CITY OF Dubuque
DuB E
Masterpiece on the Mississippi
2007
TO: Zoning Advisory Commission
FROM: Laura Carstens, Planning Services Manager-~~~~./
SUBJECT: Text Amendment to the Zoning Ordinance for the Regulation of Adult
Entertainment Establishments
DATE: February 8, 2008
INTRODUCTION
This memorandum transmits a text amendment to the City of Dubuque's Zoning
Ordinance for the regulation of Adult Entertainment Establishments (AEEs).
The City Council has established asix-month moratorium prohibiting new AEEs within
2,000 feet of existing AEEs during the moratorium period (which ends on June 1, 2008).
The moratorium was enacted to allow the City to gather additional input in the process
of studying the location and spatial separation of AEEs in the city.
BACKGROUND
As part of the process for drafting a Unified Development Code, City staff have been
evaluating regulation of AEEs. Careful consideration is being given to strengthening
regulatory control of AEEs so as to protect the community from the negative secondary
impacts commonly associated with these businesses, yet, insuring that all legal
protections afforded AEEs are guaranteed. An increase in crime and a decrease in
property values within the immediate area of AEEs are common negative secondary
impacts associated with these businesses. Therefore, the City has a special interest in
regulating these businesses somewhat differently than other businesses in the
community.
Currently, Section 4-8.1 of the Zoning Ordinance regulates AEEs within the city. This
section of the Ordinance explicitly defines specified sexual activities that qualify a
business as an AEE, defines various types of AEEs, and establishes bulk standards to
regulate these businesses. The general statement of intent in the current Zoning
Ordinance notes that AEEs:
Regulation of Adult Entertainment Establishments
February 8, 2008
Page 2
...have special characteristics and impacts upon their surroundings and upon the use and enjoyment of
adjacent property. It is the intent of these regulations to provide for the confinement of adult entertainment
establishments to those commercial and industrial areas in which these special impacts are judged to be
the least disruptive to the use and enjoyment of adjacent properties. These are further intended to
require that adult entertainment establishments shall not be permitted to locate in such concentration that
their operational features may establish the dominant character of any commercial or industrial area.
The special impacts created when AEEs are allowed to concentrate in an area are,
again, increased crime and decreased property values. Currently Section 4.8-3 of the
Zoning Ordinance sets for the separation requirements for AEEs: 1,200 feet from a
residential zoning district, and/or public or parochial schools, and 500 feet from other
AEEs. Existing regulations also limit AEEs to commercial and industrial zoning districts.
DISCUSSION
The following are summaries of conclusions derived from four studies undertaken by
various municipalities aimed at demonstrating the negative secondary impacts
associated with a concentration of AEEs. The complete studies for these four cities are
available in the Planning Services Department.
The first study was conducted by the City of Los Angeles in 1977. The study concluded
that:
More crime occurred where sexually oriented businesses were concentrated. Compared to City-wide
statistics for 1979-75, areas with several such businesses experienced greater increases in pandering
(340 percent), murder (42.3 percent), aggravated assault (45.2 percent), robbery (52.6 percent) and
purse snatching (17 percent). Street robberies, where the criminal has face-to-face contact with his
victim, increased almost 70 percent more in the study areas. A second category of crime, including other
assaults, forgery, fraud, counterfeiting, embezzlement, stolen property, prostitution, narcotics, liquor laws
and gambling increased 42 percent more in the study areas over the city as a whole.
The second study was conducted by the City of Phoenix, Arizona in 1979. The study
concluded that:
The results show a marked increase in sex offenses in neighborhoods with sexually oriented businesses,
and increases in property and violent crimes as well.
Three study areas (near locations of sexually oriented businesses) and three control areas (with no
sexually oriented businesses) were selected. The study and control areas were paired according to the
number of residents, median family income, percentage of non-white population, median age of
population, percentage of dwelling units built since 1950, and percentage of acreage used for residential
and non-residential purposes.
Three categories of criminal activity were included in the study: property crimes (burglary, larceny and
auto theft), violent crimes (rape, murder, robbery and assault), and sex crimes (rape, indecent exposure,
lewd and lascivious behavior, and child molestation).
On average, the number of sex offenses was 506 percent greater in neighborhoods where sexually
oriented businesses were located. In one of the neighborhoods, the number was 1,000 percent above
the corresponding control area. Of the sex offenses, indecent exposure was the most common offense
Regulation of Adult Entertainment Establishments
February 8, 2008
Page 3
and the largest contributor to the increase of crimes in areas where sexually oriented businesses were
located. Even without considering the crime of indecent exposure, the number of other sex crimes, such
as rape, lewd and lascivious behavior, and child molestation, was 132 percent greater than the control
areas without sexually oriented businesses.
On average, the number of property crimes was 43 percent greater in neighborhoods where sexually
oriented businesses were located, and the number of violent crimes was 4 percent higher in those areas.
The third study was conducted by the City of Minneapolis in 1980. The study concluded
that:
.....concentrations of sexually oriented businesses have significant relationship to higher crime and lower
property values.
The fourth study was conducted by the City of Indianapolis in 1984. The study
concluded that:
From 1978-82, crime increases in the study areas were 23 percent higher than the control areas (46
percent higher than the city as a whole). Sex-related crimes in the study areas increased more than 20
percent over the control areas. Residential locations in the study areas had a 56 percent greater crime
increase than commercial study areas. Sex-related crimes were four times more common in residential
study areas than commercial study areas with sexually oriented businesses.
Homes in the study areas appreciated at only half the rate of homes in the control areas, and one-third
the rate of the city. "Pressures within the study areas" caused a slight increase in real estate listings,
while the city as a whole had a 50 percent decrease, denoting high occupancy turnover. Appraisers
responding to the survey said one sexually oriented business within one block of residences and
businesses decreased their value and half of the respondents said the immediate depreciation exceeded
10 percent. Appraisers also noted that value depreciation on residential areas near sexually oriented
businesses is greater than on commercial locations. The report concluded: "The best professional
judgment available indicates overwhelmingly that adult entertainment businesses - even a relatively
passive use such as an adult bookstore - have a serious negative effect on their immediate environs."
It is evident from these studies that there is a compelling public interest for communities
to strictly regulate AEEs to reduce the negative secondary impacts clearly associated
with these businesses.
In an effort to limit these impacts the Zoning Ordinance restricts AEEs to industrially and
commercially zoned districts and establishes separation requirements. These
standards require separation between AEEs and residentially zoned districts, schools,
and other AEEs. Under current regulations, AEEs must be 1,200 feet from a
residentially-zoned district, 1,200 feet from a school (public and private/parochial
schools approved by the Iowa State Board of Public Instruction K-12), and 500 feet from
an existing AEE.
Under existing regulations, the areas available for adult entertainment are primarily
located in the industrial area east of the railroad tracks downtown, and on the west side
along Dodge Street (U.S. 20) and the Northwest Arterial (Iowa 32), with a few other
pockets of eligible area in between (see Map #1). Since 1997, two new AEEs have
Regulation of Adult Entertainment Establishments
February 8, 2008
Page 4
located within the city of Dubuque and three have discontinued operation. Currently,
there are two adult entertainment establishments within the community. One AEE is
located in an industrial district east of the downtown area and the other is located on the
west side of the city on Dodge Street.
It is possible that with the current 500 foot separation requirement between AEEs there
are areas where clustering of these businesses could occur. For example, along
Dodge Street just west of the intersection with the Northwest Arterial, it is possible that
two or three AEEs, in addition to the existing AEE, could locate along an approximately
2,000 foot stretch of roadway. This could constitute a cluster of AEEs that would, as
evidenced by the studies referenced above, potentially have a negative impact on the
crime rate and property values in the area. One way to prevent clustering of AEEs is to
increase the separation requirement for these businesses.
Staff have researched separation requirements from a dozen cities in the Midwest,
including six cities in Iowa. Separation between AEEs in the subject cities varied from
500 to 2,000 feet. Most cities had 1,000 to 1,500 foot separations. It is difficult to
compare separation distances because most of the cities researched had several other
regulations that further restricted where AEEs could locate within the community.
These regulations included limiting AEEs strictly to industrial zoning districts, requiring
strict licensing standards and requiring separation from schools, churches and
residential districts.
LEGAL CONSIDERATIONS
A full review of all of the legal aspects governing regulation of AEEs is beyond the
scope of this memo. The case law regarding AEEs is extensive and constantly
evolving. It is generally accepted that a city the size of Dubuque cannot ban AEEs
outright. The City can, however, limit the area eligible for AEEs to locate.
Although there is no "magic number" regarding what percentage of a community's land
area must be available for AEEs, useful benchmarks are a minimum of 1 % of total land
area or 5% of non-residential land zoned for AEEs. Generally, eligible areas must be
accessible (e.g. not located in a wet land or on a mountain top) and be legally available
(e.g.; not disallowed by other City, State or Federal codes). It is not required, however,
that the eligible area be economically viable for the business (e.g. high lease rates, lack
of visibility or low traffic counts).
The City of Dubuque exceeds the benchmark of 1 % total land area available for AEEs.
As shown on Map #1, under existing zoning regulations for separation of AEEs,
approximately 1.06 square miles or 3.7% of the total land area is eligible for AEEs. As
shown on Map #2, under proposed zoning regulations for greater separation of AEEs,
approximately .87 square miles or 3% of the total land area is eligible for AEEs.
Regulation of Adult Entertainment Establishments
February 8, 2008
Page 5
The City can further regulate AEEs by requiring licensure. Depending on the nature of
the AEE (e.g. bookstore vs. cabaret), licensure requirements also have been used
successfully by many cities to further reduce the negative secondary impacts
associated with these businesses. Licenses can limit hours of operation, prohibit
physical contact between patrons and employees, regulate interior light levels and
require all public spaces within the establishment to be clearly visible (no doors or
curtains). Licensure is another mechanism that the City can consider; however, this
memo is written in reference to zoning regulatory control only.
RECOMMENDATION
In an effort to reduce the negative secondary impacts associated with AEEs, Staff
recommends that the separation between adult entertainment establishments be
increased from 500 feet to 2,500 feet. This increased separation requirement would
prevent AEEs from clustering in any one area, yet afford them legally adequate areas
within the community that are eligible for their businesses. The area available within the
community will be approximately .87 square miles or 3% of the total land area within the
city limits (see Map #2). Neither of the two existing AEEs would be made non-compliant
as regards separation between AEEs if the distance were to be increased to 2,500 feet.
Also, Staff recommends that the bolded language below be added to the end of the
preamble of Section 4-8.1 so as to make clear the intent of the amended language.
...These are further intended to require that adult entertainment establishments shall not be permitted to
locate in such concentration that their operational features may establish the dominant character of any
commercial or industrial area and that may generate secondary negative impacts in the community
that include increased crime rates and decreased property values.
Staff recommends that approval of the text amendment to Section 4-8.3(2) of the
Zoning Ordinance increasing the separation between adult entertainment
establishments from 500 feet to 2,500 feet.
Regulating sex Businesses
By Connie 8. Cooper, FaicP, and Eric Damian Kelly, FA~cP
Sex sells, but at the wrong time and place and in the wrong manner it causes
communities across the country major headaches.
Almost a decade ago, we found out how "hot"
a subject this was with the popularity of our
Planning Advisory Service Report, Everything
You Always Wanted to Know About Regulating
Sex Businesses. But rather than summarize
the information from that report, this issue of
Zoning Practice will focus on the sex busi-
nesses issues that remain problematic far
communities today. The article will offer our
insights on the regulation of sex businesses
from visiting more than i5o of them in cities
as large as Memphis and Detroit and in small
towns and counties in io states.
LEGAL COfJCFt'TS: TB',E BASICS
First Arnend-n~~nt Protection
"Non-obscene" adult media, movies, and per-
formances, unlike many other land-use activi-
ties, enjoy a certain amount of protection
under the First Amendment right to freedom
of expression. When a local government regu-
lates an activity protected by the First
Amendment based on the "message," the
burden falls on the government to justify such
action. The challenge is how to regulate sex
businesses without reference to the very con-
tent of the media or performance that defines
it as sex. fn fact, discerning content is the
major method in differentiating between an
adult bookstore and a Barnes & Noble, for
example. The Supreme Court has held that
where the purpose of the regulations is to
limit or mitigate the adverse secondary
effects of a sex business, the regulation will
be treated as content-neutral even though it
defines the regulated businesses, in part,
through reference to the content of media or
performances conducted there (see Playtime
Theatres, Inc. v. City of Renton (475 U.S. 4i,
io6 S. Ct. 9z5, 89 L Ed zd z9 (1986)).
What is Protected?
The First Amendment protects communication.
Thus, non-obscene books, magazines, videos,
CD-ROMS, and motion pictures are protected.
The Supreme Court has had more difficulty
with nude or topless dancing, holding in prin-
ciple that acts are entitled to protection under
the First Amendment, but has also upheld
several restrictions on them. Other federal
courts have looked to the general principles
set out by the Supreme Court, rather than to
the fact that in some instances the Court has
upheld community-wide bans on such per-
formances. They have struck down many local
attempts to ban adult-type dancing, while
also upholding a number of restrictions on
how and where performances can occur.
A number of goods and services offered
in sex businesses are not protected by the
First Amendment. For example, sex toys and
novelties have no such protection, but com-
munitiesshould not ban them simply because
it might be lawful to do so. Courts have gener-
ally held that there is no Constitutional right
to a massage, upholding limits on sex mas-
sage parlors and other enterprises not oper-
ated by licensed or certified massage thera-
pists. Escort services, bathhouses,
"encounter" centers, lingerie modeling cen-
ters, and nude photography studios also fall
well outside the scope of protection of the
First Amendment.
Secondary sffects
There are two generally accepted types of sec-
ondaryeffects that provide a Constitutional basis
for regulating sex businesses: increases in crime
rates and adverse effects on property values.
Increases in crime rates occur i) when
activities in sex businesses (particularly on-
premise entertainment) provide an opportu-
nity for crime-for example, the arrangement
of sex acts or selling drugs, either within or
outside the establishment, and z) when the
business attracts what criminologists refer
to as "soft targets"-persons impaired by a
reaction to certain stimuli, making them vul-
nerable to crimes ranging from theft to
assault. The impairment may come from
drugs or alcohol or because their focus is on
excitement rather than personal safety.
Furthermore, the victim of the theft of a cell
phone or wallet at a sex business is far less
ZONINGPRACTICE 10.06
AMERICAN PLANNING ASSOCIATION I page 1
likely to report the incident than someone who suf-
fers asimilar fate at a department store. Criminals
may not understand the theory but they know
where to find soft targets.
There is evidence to suggest that sex businesses
have a negative effect on property values. The most
credible evidence comes from appraisers and lenders
who Know the value of real estate because they deter-
mine loan values, which ultimately control market
value. Several surveys of appraisers, lenders, and real
estate professionals indicate that they believe sex
businesses have a measurable negative effect on
property values. Our recent survey of appraisers in Fort
Worth, Texas, shows they see the negative effects of
sex businesses on residential and commercial prop-
ertyvalues as extending out from the establishment
as far as 3,00o feet. Respondents believed that all
types of sex establishments, including media stores,
cinemas, and cabarets, would have significant nega-
tive effects on property values, and that those effects
would be much greater than the property value impli-
cations of bars, pawn shops, or salvage yards.
ADEQUATE ALTERNATIVE AVENUES
One of the fundamental principles of First Amend-
ment law is that restrictions on First Amendment
rights are permissible as long as the regulations
allow adequate "alternative avenues" for the commu-
nication. For sex businesses in communities large
and small, that requirement means allowing an ade-
quate number of sites for such businesses to operate
(see Schad v. Borough of Mt Ephraim, (45z U.S. 6i,
ioi S. Ct. zi76, 68 L Ed. zd 67i (i98i)).
Courts around the country differ in their opin-
ions of the number of sites considered "adequate,"
the details of which are well beyond the scope of
this article. At a minimum, communities must have
sites available for new sex businesses, regardless
of how many currently exist. Though not absolute,
useful benchmarks are one percent of total land
area, or five percent of nonresidential land, zoned
to allow for sex businesses. A community falling
below these numbers should reexamine its Communities typically have to reduce
ordinance in light of current law. And the desired (and defensible) separa-
ZONINGPRACTICE 10.06
AMERICAN PLANNING ASSOCIATION I pogP j
"available" means available by right. tion requirement simply to create
Rezoning processes or special use permits enough available sites.
will not count. Large separation require- The failure of an ordinance to pro-
ments from sensitive uses may eliminate vide for adequate alternative sites may
many otherwise eligible sites. result in a court striking down the ordi-
Hance as unconstitutional, leaving the commu-
nitywith no regulations and allowing the plain-
tiff to locate a sex business in virtually any com-
mercialzone.
E
BULLETPROOFING YOUR ORDINANCES
Court Challenges
Although some operators of sex businesses
continue to challenge the regulations that gov-
ern them as content-based, the current litiga-
tion is about secondary effects. As recently as
io years ago, sex business ordinances cited
(with little discussion) early studies from Los
Angeles, Austin, Oklahoma City, Indianapolis,
and other cities to show the adverse second-
ary effects of sex businesses. Today, attorneys
for the sex industry are challenging such ordi-
• an apparent lack of relevance of some of the
studies to the community relying on them; and
• the lack of clear connections between the sec-
ondaryeffects cited in the studies and the solu-
tions incorporated in the adopted ordinance.
The arguments hold some merit.
Indeed, in isolated cases there is merit to
all of them. It is increasingly critical for
communities to build a legislative record
that can defend the ordinance. The legisla-
tive record may also deter costly, time-
consuming litigation.
Building the Legislative Record
The legislative record provides the history
of adopted legislation. Obviously, zoning
ordinances include brief statements of pur-
pose. But similarly, amendments for "spe-
cial" issues, such as the regulation of bill-
boards or the sex industry, can have their
own purpose statements. While these get
the record started, we also recommend the
following:
• At least one complete copy of all publica-
tions, reports, or studies cited in support of
the adoption of the ordinance should be
made available to officials at meetings and
placed in the permanent record of the public
hearing.
• A staff memo highlighting major findings from
the studies the staff used to create the ordinance
should have citations ofthe studies and connect
the findings to local issues and to the proposed
ordinance (see discussion of "relevance" below).
• Document detailed "findings" on why the
governing body is adopting the ordinance,
with references back to the studies and staff
memo and to local facts and conditions.
• Include a statement of purpose in the text of
the ordinance.
• There should be a clear record in the min-
utes or transcripts showing that the studies,
staff memo, and findings were thoroughly
reviewed in a public meeting with the officials
voting on the matter.
Addressing the Challenges
Attorneys for the sex industry argue that
studies should be conducted in strict confor-
mance with scientific methodology, reaching
absolute conclusions. We disagree. The
courts recognize that the local legislative
process is not scientific and that local offi-
cials are often asked to evaluate and make
policy judgments based on available infor-
mation. In Los Angeles v. Alameda Books
(15z L. Ed. zd 670, at 683, izz S. Ct. 17z8, at
1736 (U.S. zooz)), the Supreme Court reiter-
ated its 1986 position from Playtime
Theatres, Inc. v. City of Renton.
... we held that a municipality may rely on
any evidence that is "reasonably believed to
be relevant" for demonstrating a connection
between speech and a substantial, inde-
pendent government interest.... This is not
to say that a municipality can get away with
shoddy data or reasoning. The municipality's
evidence must fairly support the municipal-
ity's rationale for its ordinance.
Cities may use studFies from otherjuris-
dictions related to the secondary effects of sex
businesses, but in Alameda Books the Court
said the record must show that elected offi-
ZONINGPRACTICE 10.06
AMERICAN PLANNING ASSOCIATION I page q
L__
cials could "reasonably believe" that the cited
evidence is relevant to the local situation. An
ordinance regulating sex businesses is usu-
allyproposed because of community con-
cerns. Planners can find local parallels with
the information from the formal studies from
other communities, including:
media reports about the sex business indus-
try's penetration of rural markets. Opposition
petitions and general statements against sex
businesses are not useful in the record. Con-
cerned citizens should testify to facts and not
opinions. To the detriment of adult use oppo-
nents in one Georgia county trying to build a
• If the evidence shows that other types of
businesses have similar adverse effects, are
there other laws or ordinances that address
those effects, or will the proposed ordinance
also address those?
Are the major substantive provisions
designed specifically to address one or more
of the adverse secondary effects?
• Location: a classic zoning issue, although
many ordinances go beyond specifying the dis-
trictsthat should allow such businesses; and
through zoning and better dealt with through
a licensing ordinance.
The location of sex businesses is important
3
• testimony from law enforcement officers
about incidents of crime associated with
existing sex businesses;
• testimony from neighbors about illegal or
suspicious activity (including sexual) outside
the business-in cars, on nearby fawns, and
elsewhere in the neighborhood but in the
vicinity of the use; and
• testimony from landlords, property owners, or
real estate agents about the difficulty of selling or
renting property near an existing sex business.
A small town or rural county with few or
no sex businesses should list other communi-
ties' facts in the findings section of their ordi-
nance and indicate that it must rely on these
studies. Officials may also want to record
legislative record, a study by the sheriffs
department found no definitive relationship
between crime and the sex business use. In
such circumstances, communities must
closely examine the data, including the loca-
tion of the businesses. One conclusion may
be that there is no problem with either the
location or the management of the use.
The legislative record and findings
should support the community's proposed
regulations. Ask the following:
• Is there evidence in the record of negative
secondary effects of sex businesses?
• Does the evidence relate to the same types
of businesses under the governance of the
ordinance?
bears a direct relationship to proximity to the
business. Similarly, crimes caused by a sex busi-
ness extend beyond the property lines of the
business but they do not extend indefinitely.
Licensing ordinances address business
operations and not location. Indeed, many
sex businesses are clean, well managed, and
self-contained, with quiet environs and nicely
illuminated parking lots. Others are unkempt,
disorderly havens for prostitutes. Licensing
ordinances require that the businesses oper-
ate in such a way that they minimize the neg-
ative secondary effects on the community.
Any community regulating sex businesses
should establish basic zoning criteria. Without
it, a permit application for a sex media store
ZONING PRACTICE 10.06
AMERICAN PLANNING ASSOCIATION ~ page 5
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Page 1 of 102
STUDY OF THE EFFECTS OF THE CONCENTRATION OF
ADULT ENTERTAINMENT ESTABLISHMENTS
IN THE CITY OF LOS ANGELES
DEPARTMENT OF CITY PLANNING
CITY OF LOS ANGELES
JUNE 1977
CITl
PLAI
CAS
NO.
2647
Council File
No. 74-4521-
S.3
STUDY OF THE EFFECTS OF THE CONCENTRATION OF
ADULT ENTERTAINMENT ESTABLISHMENTS
IN THE CITY OF LOS ANGELES
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Prepared for:
Planning Committee of
the Los Angeles City Council
Prepared by:
Los Angeles City Planning Department
June, 1977
TABLE OF CONTENTS
Summary and Recommendations.
I. Findings
II. Purpose and Scope
III. Methods Currently Used to Regulate Adult Entertainment Businesses
Page 2 of 102
A. Approaches to the Regulation of Adult Entertainment by Land Use
Regulation
1. Boston Approach
2. Detroit Approach
3. Variations Adopted by Other Cities
B. Alternate or Supplementary Forms of Regulation Currently Available
Under State and Municipal Law
1. Red Light Abatement Procedure
2. Police Permit Requirements
C. Other Regulations of Adult Entertainment in Los Angeles
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IV. Methodology and Analysis
A. Changes in Assessed Valuation Between 1970-1976
1. Study and Control Areas
2. Conclusion
B. Public Meetings
C. Questionnaires
1. Description of Survey
2. Results of Survey
D. U.S. Census and Related Data
1. Description of Hollywood using "Cluster Analysis"
2. Description of Studio City and North Hollywood using Census Data
V. Police Department Study of Hollywood
TABLES
I. No. of Ordinances Regulating Adult Entertainment Uses
II. Ordinances Regulating Adult Entertainment Uses by Dispersal
III. City Council Files Relating to Adult Entertainment
IV. 1970-76 Changes in Assessed Valuation
Page 3 of 102
V. Studio City, North Hollywood and City of Los Angeles Comparison of Census
Data
VI. Reported Crimes and Arrests 1969-75 -Hollywood and City of Los Angeles
EXHIBITS
Exhibit A -Generalized Location of Adult Entertainment Sites in
Hollywood and Central City by Census Tract
Exhibit B -Generalized Location of Adult Entertainment Sites in Studio
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City and North Hollywood by Census Tract
APPENDICES
A. Assessment Data - 1970 and 1976
B. Form -General Questionnaire
C. Form -Appraiser Questionnaire
Page 4 of 102
D. Response and Summary of Privately-Distributed Questionnaire (not a portion of
study)
E. Data from U.S. Census - 1960 and 1970
SUMMARY AND RECOMMENDATIONS
Types of Ordinances to Control "Adult Entertainment" Uses
Two methods of regulating adult entertainment business via land use regulations have
developed in the United States. They are: 1) the concentration of such uses in a single area of
the city as in Boston; and 2) the dispersal of such uses, as in the City of Detroit. The Detroit
ordinance has been challenged and upheld by the U.S. Supreme Court (Young v. American
Mini-Theaters, 96 S. Ct. 771, 1976).
Effect of "Adult Entertainment" Businesses on the Community
There has been some indication that the concentration of "adult entertainment" uses results in
increased crime and greater police enforcement problems. In the City of Los Angeles, the Los
Angeles Police Department has found a link between the concentration of such businesses
and increased crime in the Hollywood community. (The major portion of a Police Department
report on this subject is herein contained.) While several major cities have adopted ordinances
similar to the Detroit ordinance, no other major city has, to our knowledge, adopted aBoston-
type ordinance.
Testimony received at two public meetings on this subject has revealed that there is serious
public concern over the proliferation of adult entertainment businesses -particularly in the
Hollywood area. Citizens have testified of being afraid to walk the streets; that some
businesses have left the area or have modified their hours of operation; and that they are
fearful of children being confronted by unsavory individuals or of being exposed to sexually
explicit material. A representative of an adult theater chain testified in support of the manner in
which this business was run and in support of the type of clientele which attend the theaters.
The Planning Department staff is of the opinion that the degree of deleterious effects of adult
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entertainment businesses depend largely on the particular type of business and on how any
such business is operated.
A mail survey questionnaire conducted by the Planning Department has tended to emphasize
general public concern over the proliferation of sex-oriented businesses and has indicated
further, that appraisers, realtors and representatives of lending institutions are generally of the
opinion that concentration of adult entertainment businesses exerts a negative economic
impact on both business and residential properties. They feel that the degree of negative
impact depends upon the degree of concentration and on the specific type of adult
entertainment business.
The 1970-76 change in the assessed value of residential and commercial properties containing
concentrations of adult entertainment businesses was compared with other areas without such
concentrations, and with the City as a whole. On the basis of this comparison, it cannot be
concluded that properties containing concentrations of adult entertainment businesses have
directly influenced the assessed valuations of such properties.
Data and analysis based on the U.S. Census of 1970 and certain trend data from the censuses
of 1960 and 1970 as applied to areas of the City containing concentrations of adult
entertainment businesses are included in the body of the report and in the Appendix.
Scope of the Ordinances Enacted by Other Jurisdictions
The scope of "adult entertainment" ordinances encompasses a variety of adult activities. For
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 would be necessitated by the retroactive application of such an ordinance.
Table I on page 11 indicates the ordinances reviewed and the major categories of uses they
regulate.
Effect of Ordinances Enacted by Other Jurisdictions: The U.S. Supreme Court in Young v.
American Mini-Theaters pointed out, as one of the bases for upholding the Detroit ordinance,
that the regulation did not limit the number of "adult entertainment" businesses. Our study has
indicated that the practical effect of literal adoption of "Detroit" language without modification in
the City of Los Angeles would be to limit the potential locations for such businesses rather
severely. Due to the predominance of commercial zoning in "strips" along major and
secondary streets, an ordinance preventing "adult entertainment" business from locating within
500 feet of residentially zoned property would, in effect, limit such businesses to those areas of
the City where there is commercial zoning of greater than 500 feet in depth. Areas with such
commercial frontage would include downtown Los Angeles, a small part of Hollywood,
Westwood, and Century City. A few industrial areas would also afford a separation of this
distance from residential properties. The limitation of 1,000 feet between establishments (as
provided in the Detroit ordinance) would likely be inappropriate in the City of Los Angeles
inasmuch as commercial zoning is located in a strip pattern along most of the City's
approximate 1,400 miles of major and secondary highways. (It is estimated that approximately
400 miles of such "strip" commercial zoning exists in the City.)
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Recommendations
Page 6 of 102
1. If the City Council should find it advisable in light of the findings of this report to recommend
the preparation of an ordinance to control adult entertainment businesses, such an ordinance
should be of a dispersal type rather than a concentration type. (To build a planning policy basis
for such regulation, the Council may also wish the Planning Department to consider the
development of appropriate policies for incorporation within the Citywide Plan.)
2. If a dispersal type ordinance is recommended by the City Council the Planning Department
is of the opinion that such an ordinance should be designed for specific application in the City
of Los Angeles, rather than the direct adoption of the Detroit model. If such a dispersal type
ordinance is recommended for enactment locally, it should consider:
a. distance requirements between adult entertainment establishments. The
Planning Department recommends that a separation between establishments
greater than 1,000 feet is necessary and desirable.
b. distance requirements separating adult entertainment establishments from
churches, schools, parks, and the like. The Planning Department suggests that a
separation of at least 500 feet is necessary. A similar distance separating adult
entertainment uses from single-family residential development should also be
considered.
c. the possibility of enacting additional provisions to regulate signs and similar
forms of advertising should also be considered.
1. If the City Council should find it advisable to recommend all of the types of "adult
entertainment" businesses included in this study, it should consider whether all
such uses should be in the same class and subject to the same regulations.
4. Should the City Council recommend the preparation of a zoning ordinance to regulate adult
entertainment businesses, other sections of the Municipal Code relating to the subject,
including police permit requirements, should also be amended in order to be consistent with
the zoning regulations and to facilitate the administration and enforcement of such regulations.
5. The Planning Department recommends that it be instructed to review existing zoning
regulations applying to the C4 zone which currently prohibits "strip tease shows" and that the
Zoning Administrator, through interpretation, consider expanding the list of prohibited uses in
said zone to include additional adult entertainment uses as herein identified.
6. To assist in the regulation of "adult entertainment" businesses, the City should continue to
vigorously enforce all existing provisions of the Municipal Code relating to the subject,
including Zoning regulations.
I. FINDINGS
1. A Boston-type ordinance (concentration) to control adult entertainment businesses would
not be acceptable nor desirable in the City of Los Angeles.
2. In the event legislation is enacted in the City of Los Angeles there is adequate basis for a
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Detroit-type ordinance (dispersion) which requires a distance of 1,000 feet between
establishments and 500 feet from residential zones.
- Existing locational patterns of adult entertainment businesses (in Hollywood,
Studio City, North Hollywood) actually represent a concentration rather than a
dispersion of establishments. (Such patterns are contrary to the Detroit concept
and are due, in fact to the City's strip commercial zoning pattern.)
3. If dispersion is desired in Los Angeles, an ordinance should be designed specifically for the
City. (Direct application of the Detroit ordinance would not be desirable or appropriate in Los
Angeles and would, in part, tend to result in a concentration of such businesses.)
4. Statistics provided by the Los Angeles Police Department (LAPD) indicate a proportionally
larger increase in certain crimes in Hollywood from 1965-75, as compared with the City of Los
Angeles as a whole. (Hollywood has the largest concentration of adult entertainment
businesses in the City.)
5. Statistics provided by the LAPD indicate that there has been a large increase in adult
entertainment enterprises since 1969, particularly in Hollywood. From December 1975 to
December 1976, however, there has been a decrease in such establishments.
6. Testimony obtained at two public meetings on the Adult Entertainment study conducted on
April 27 and 28, 1977 indicated that:
- Many persons, including the elderly, are afraid to walk the streets in Hollywood.
- Concern was expressed that children are being exposed to sexually explicit
materials and unsavory persons.
. Some businesses no longer remain open in the evenings and others
have left the area allegedly directly or indirectly due to the establishment
of adult entertainment businesses.
- In Hollywood, some churches drive the elderly to services and others provide
private guards in their parking lots.
- Nearly all persons opposed the concentration of adult entertainment activities.
7. Responses to questionnaires of the City Planning Department have indicated that:
- Appraisers, realtors, lenders, etc. believe that the concentration of adult
entertainment establishments has had adverse economic effects on both
businesses and residential property in respect to market value, rental value and
rentability/salability; that the adverse economic effects diminish with distance but
that the effects extend even beyond a 1,000-foot radius; and that the effects are
related to the degree of concentration and to the specific type of adult
entertainment business.
- Businessmen, residents, etc. believe that the concentration of adult entertainment
establishments has adverse effects on both the quality of life, and on business and
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property values. Among the adverse business effects cited are: difficulty in retaining
and attracting customers to non- "adult entertainment" businesses; difficulty in
recruiting employees; and difficulty in renting office space and keeping desirable
tenants. Among the adverse effects on the quality of life cited are increased crime;
the effects on children; neighborhood appearance, litter and graffiti.
8. A review of the percentage changes in the assessed value of commercial and residential
property between 1970 and 1976 for the study areas containing concentrations of adult
entertainment businesses have indicated that:
- The three study areas in Hollywood containing such businesses have increased
less than the Hollywood Community, and less than the City as a whole. Two of the
three study areas in Hollywood have increased less than their corresponding
"control areas;" however, one such study area increased by a greater amount than
its corresponding control area.
- The study area in Studio City has increased by a greater percentage than its
corresponding "control area," by a slightly lower percentage than the Sherman
Oaks-Studio City Community; and by a considerably greater percentage than the
entire city.
- The study area in North Hollywood has increased by a considerably lower
percentage than its corresponding control area, the North Hollywood Community
and the City as a whole.
- On the basis of the foregoing it cannot be concluded that adult entertainment
businesses have directly influenced changes in the assessed value of commercial
and residential properties in the areas analyzed.
9. There are various existing laws and regulations (other than zoning) available to effect proper
regulation of adult entertainment businesses.
10. There is a high degree of turnover in individual adult entertainment businesses as
evidenced on page 51 (Much of this change is probably due to Police enforcement.)
11. The Los Angeles City Council, both on its own initiative and at the urging of numerous
citizens groups, has proposed a variety of approaches to limiting the possibly deleterious
effects of "adult entertainment" business on neighborhoods.
12. At least 10 cities have adopted ordinances similar to the Detroit dispersal ordinance.
Several other cities have enacted other forms of regulations.
13. The Detroit ordinance does not regulate massage parlors. Of the cities with regulations,
three have included massage parlors within the purview of their zoning ordinance.
14. None of the cities surveyed call out or regulate adult motels as a part of their "adult
entertainment" ordinance.
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15.
The Detroit Ordinance is prospective
amortization provision, i.e. provide for
Although other such ordinances have
the courts at the time of this study.
in its application and therefore does not include an
a time period for the removal of existing businesses.
included such provisions, none had been validated by
II. PURPOSE AND SCOPE
On January 12, 1977, the Los Angeles City Council instructed this Department, with the
assistance of other City agencies, to conduct a Comprehensive Study to determine whether
the concentration of so-called "adult entertainment" establishments has a blighting or
degrading effect on nearby properties, and/or neighborhoods. The term "adult entertainment"
is a general term utilized by the Planning staff to collectively refer to businesses which
primarily engage in the sale of material depicting sex or in providing certain sexual services.
These would include the following: adult bookstores; X-rated theaters; adult motels with X-
rated entertainment; massage parlors; sexual therapy establishments (other than those
operated by a licensed psychologist, psychiatrist, etc.); and nude, topless or bottomless bars
and restaurants.
During the past few years, there has been increasing concern in Los Angeles over the
proliferation of such sexually oriented businesses. The derivation of such concern is varied -
religious, moral, sociological and economic. The positions advocated by the public range from
a "laissez faire" attitude to outright moral indignation and demand for prohibition.
It should be noted at this time that the topic of newsracks, was not dealt with in this study. The
primary reason for not considering newsracks is that, in addition to the absence of a specific
Council request for this Department to deal with that. subject, this matter has been and
continues to be a topic of litigation in our state courts. Additionally, other public agencies,
including the City Attorney, Bureau of Street Maintenance, and Building and Safety, are
presently pursuing assignments regarding newsracks, and it is premature to determine
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whether newsracks could feasibly be studied as "adult entertainment" businesses, from a
practical or constitutional standpoint.
In giving the Planning Department this assignment, the City Council essentially called for a
fact-finding process to determine whether adult entertainment establishments, where they exist
in concentration, cause blight and deterioration. When this question has been posed to the
public, there have frequently been anguished retorts to the effect that "the answer is so
obvious it is ridiculous to even ask the question," and "what is the City waiting for before it
takes action to eliminate these scourges of society?"
On the other side of the spectrum, certain parties who are against the adoption of
regulations regarding "adult entertainment" question the legitimacy of the government's interest
in the subject; and they have noted that magazines as "scurrilous" as those sold in adult
bookstores are also available in the markets and drugstores where the likelihood of perusal by
youngsters is obviously greater than within the confines of an adult bookstore (where no
person under 18 years of age is allowed).
In completing this study, the Planning Department has made every effort to ensure a fair and
unbiased analysis of "adult entertainment." The staff has been instructed to objectively review
information of a factual nature; and, although the personal feelings of organized groups and
the public at large were forcefully expressed at the two public meetings and in the study
questionnaires, the staff has maintained independence from such strong emotions in
evaluating the data gathered.
As noted above, the staff has specifically been given the charge to determine whether the
concentration of "adult entertainment" establishments has any blighting or degrading effect on
the neighborhoods in which they reside. We did not consider the specific nature or content of
the materials or services rendered, advertised or promised, for this would have constituted a
censor-like role for the Department which was neither desired nor requested by the Council.
This study has focused on the Hollywood community as well as portions of Studio City and
North Hollywood as those areas of Los Angeles having the greatest concentration of "adult
entertainment" establishments. In order to assess the effect of the concentration of "adult
entertainment" establishments in these areas, the staff has analyzed such factors as changes
in assessed property values, and reviewed various crime statistics as well as other
demographic and related data as available from the U.S. Census. In addition, the Department
has reviewed various established approaches to the regulation of "adult entertainment"
business, including legislation already enacted by other jurisdictions, and earlier efforts of the
City of Los Angeles to regulate such businesses.
By means of two public meetings on the subject conducted by representatives of the City
Planning Commission, and through the use of a mail survey questionnaire, the Department
has also attempted to provide additional documentation relative to the actual or perceived
impact of adult entertainment businesses on the community. Current information on crime
statistics has been provided in a separate report prepared by the Los Angeles Police
Department, major portions of which are herein included.
III. METHODS CURRENTLY USED TO REGULATE"ADULT ENTERTAINMENT"
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BUSINESSES
A. APPROACHES TO THE REGULATION OF ADULT ENTERTAINMENT BY
LAND USE REGULATION
Two primary methods of regulating "adult entertainment" businesses via land use regulations
have developed in the United States: the concentration approach, as evidenced by the
"Combat Zone" in Boston, and the dispersal approach, initially developed by Detroit.
1. Boston Approach
In Boston the "Combat Zone" was officially established by designation of an overlay Adult
Entertainment District in November of 1974. The purpose of the overlay district was to create
an area in which additional special uses would be permitted in designated Commercial Zones
which were not permitted in these zones on a citywide basis.
The "Combat Zone" had existed unofficially for many years in Boston, as the area in question
contained a majority of the "adult entertainment" facilities in the City. The ordinance was
adopted in response to concern over the spreading of such uses to neighborhoods where they
were deemed to be inappropriate. Other considerations included facilitating the policing of
such activities and allowing those persons who do not care to be subjected to such businesses
to avoid them.
Under the Boston ordinance, adult bookstores and "commercial entertainment businesses" are
considered conditional or forbidden uses except in the Business Entertainment District.
Existing "adult entertainment" businesses are permitted to continue as non-conforming uses,
but, if discontinued for a period of two years, may not be re-established. Establishment of uses
in areas of the city other than the "Combat Zone" requires a public hearing before the Zoning
Board of Appeals.
The effectiveness and appropriateness of the Boston approach is a subject of controversy.
There has been some indication that it has resulted in an increase in crime within the district
and that there is an increased vacancy rate in the surrounding office buildings. Due to
complaints of serious criminal incidents, law enforcement activities have been increased and a
number of liquor licenses in the area have been revoked. Since the "Combat Zone" and most
of the surrounding area are part of various redevelopment projects, however, the change in
character of the area cannot be attributed solely to the existence of "adult entertainment"
businesses.
In Los Angeles, the Police Department has investigated the effect of "adult entertainment"
businesses in Hollywood and found a link between the clustering of these establishments and
an increase in crime. (See Section V, pages 51 to 55). For this reason, and due to the
enforcement problems created by such concentrations, the Police Department is not in favor of
a concentration approach in the City of Los Angeles. Public testimony at hearings and through
Planning Department questionnaires has indicated an overwhelming public disapproval of this
approach for the City of Los Angeles.
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2. Detroit Approach
Page 12 of 102
The City of Detroit has developed a contrasting approach to the control of "adult
entertainment" businesses. The Detroit Ordinance attempts to disperse adult bookstores and
theaters by providing that such uses cannot, without special permission, be located within
1,000 feet of any other "regulated uses" or within 500 feet of a residentially zoned area.
This ordinance was an amendment to an existing anti-skid row ordinance which attempted to
prevent further neighborhood deterioration by dispersing cabarets, motels, pawnshops, billiard
halls, taxi dance halls and similar establishments rather than allowing them to concentrate.
The ordinance was immediately challenged and eventually was upheld by the United States
Supreme Court. (Young v. American Mini Theaters 96 Supreme Ct. 771, 1976.)
In response to our request, data supplied by the City of Detroit Police Department indicates
that the combination of the dispersal ordinance and a related ordinance prohibiting the
promotion of pornography have been an effective tool in controlling adult businesses. To date,
18 adult bookstores and 6 adult theaters have been closed. There are 51 such businesses still
in operation in Detroit and 38 pending court cases for various ordinance violations.
3. Variations Adopted by Other Cities
The success of the Detroit ordinance has spurred attempts by a number of other cities to adopt
similar ordinances. The uses controlled and the types of controls established by these
ordinances are summarized in Tables I and II, infra.
While the current study of the effect of "adult entertainment" businesses on neighborhoods in
Los Angeles has encompassed all forms of "adult entertainment," the ordinances reviewed and
the Detroit Ordinance specifically, are less encompassing in scope. Table I on the following
page, lists and reviews a number of ordinances, which regulate various specified adult uses.
Table I
Number of Zoning Ordinances Regulating Specified Adult Entertainment Uses
(11 Ordinances Reviewed-1 not adopted)
No. of Cities
Use Regulating*
Adult Theaters 11
Adult Bookstores 9
Mini-theaters and coin operated facilities
Massage Parlors (includes "physical culture establishments)
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Modeling Studios/Body Painting 2
Pool/Billiard Halls 2
Topless Entertainment 2
Newsracks 1
Adult Motels p
* (Numbers have incorporated-where appropriate-uses entitled "physical culture establishments" and "businesses
to which persons under 18 could not be admitted.")
The Detroit dispersal ordinance does not regulate massage parlors, nor does it require any
existing business to close by amortization. Many of the more recent ordinances include
amortization provisions and several of these are currently in varying stages of litigation.
Perhaps the most comprehensive ordinance proposed to date (although not adopted) is that of
New York City. The proposed ordinance creates five classes of controlled uses, one of which
is entitled "physical culture establishments" and is defined as a general class including any
establishment which offers massage or other physical contact by members of the opposite sex.
The ordinance would also apply to clubs where the primary activity of such club constitutes
one of the five defined classes of adult uses.
The ordinance also provides for a special permit exempting individual adult uses from
amortization requirements when the Board of Standards and Appeals makes findings
regarding:
1. The effect on adjacent property;
2. Distance to nearest residential 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, the Board finds that the harm
created by the use is outweighed by its benefits.
Locally, the cities of Bellflower and Norwalk have enacted ordinances requiring adult
bookstores and theaters to obtain a conditional use permit. As a part of their study, the City of
Bellflower surveyed over 90 cities in Southern California to determine how other cities were
controlling adult bookstores. Of the cities which responded to the
Bellflower survey, 12 require a conditional use permit for new bookstores. The conditions for
obtaining such a permit generally include dispersal and distance requirements based upon the
Detroit model. Bellflower also includes parking requirements and the screening of windows to
prevent a view of the interior; it prohibits the use of loudspeakers or sound equipment which
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can be heard from public orsemi-public areas.
Page 14 of 102
Other cities impose such controls as design review, prohibition of obscene material on signs
and required identification of the business as "adult." Such controls are a possible alternative
or addition to regulation of adult uses by location.
Exterior controls affect the aspects of adult businesses which are most offensive to some
citizens. The basis for such controls stems from the recognition of privacy as a
constitutional right and the right to be "left alone" as a part of that right. (See Paris Adult
Theatre I v. Slayton, 93 S. Ct. 2628 1973.)
Table II, following, provides a comparison and description of ordinances from various cities
which are regulating "adult entertainment" businesses by dispersal.
Table II
Ordinances Regulating Adult Entertainment Uses by Dispersal
ty
es Controlled
istance
From
Residential Distance
From
Churches,
Schools
ncentration
ortization
ppeals
Procedures
ther
Controls
Seattle Adult theaters Yes-90 days Allow only in
BM, CM, 8
CMT Zones;
terminate
such uses in
all other
zones
Denver Entertainment to 500'
which persons
under 18 could
not be lawfully
admitted
Dallas ows or 1000' 1000'
theaters
Cleveland Adult bookstores, 1/1000'
adult movies and
mini-motion
picture theaters,
pool or billiard
halls
Detroit Adult bookstores, 500' 2/1000' Waiver by Ordinance
adult motion petition of 51% prohibiting
picture theater, of rsons
pe
promotion of
mini-motion owning/residing pornography
picture theaters, or doing
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Page 15 of 102
cabarets, hotels, business within
motels, 500'
pawnshops, pool
or billiard halls,
public lodging
houses,
secondhand
stores, shoeshine
parlors, taxi-dance
halls
New York Adult bookstores, 500' 2-3/1000' 1 year closest Special permit Sign
motion picture to R-zone first exception must regulations,
(not theaters, "topless" to go make findings applies to ,
adopted) entertainment adult use
facilities, coin- always a
operated primary use
entertainment
facilities, physical
culture
establishments
Oakland Adult bookstores, 1000' 111000' 13 yrs. if no All require
adult movies, use permit C.U. permit
peep shows,
massage parlors
Kansas Adult bookstores 1000' 1000' Waiver, if Confined to
City and motion picture petition of 51 % overlay C-X
theaters, bath of persons zone within
houses, massage residing or C-2, 3,
shops, modeling owning
studios, artists- property within
body painting 1000' of
studios proposed use.
Santa Adult newsracks, 1000' (& 1/500' Public
Barbara bookstores, from parks display of
motion picture or recreation defined
theaters facilities) materials
prohibited
Bellflower Adult bookstores, 1000' 1000' (& 1/1000' By C.U. all
theaters or mini- from parks building
theaters, massage or openings,
parlors playgrounds) entries,
windows
covered or
screened to
prevent view
into the
interior
Model studios 500' No loud
speaker or
sound
system
Atlantic Adult motion 500' 2/1000' Waiver of 500' Requires
City picture theaters, from residential public
mini-theater, adult with petitions hearing prior
bookstores signed by 51 °~ to grant of
of parties within permit;.
500' licensing of
massage
parlors, no
treatment of
a person of
the opposite
sex
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B. ALTERNATE OR SUPPLEMENTARY FORMS OF
REGULATION CURRENTLY AVAILABLE
UNDER STATE AND MUNICIPAL LAW
1. Red Light Abatement Procedure
Red light abatement is a mechanism authorized by state law which allows local government to
control criminal sexual behavior by controlling the places in which such behavior occurs.
Sec. 11225 of the California Penal Code generally provides that every building or place used
for illegal gambling, lewdness, assignation, or prostitution, or where such acts occur, is a
nuisance which shall be enjoined, abated, and prevented. There are three basic steps involved
in the City's application of the Red Light Abatement Procedures:
a. A complaint is filed by the City Attorney based upon the declarations of police
officers of instances of prostitution taking place on the premises.
b. The City attempts to obtain a preliminary injunction to shut down the business
until completion of the scheduled trial. If the City succeeds, the premises may only
be re-opened as a legitimate business until the time of the trial.
c. At the trial, the burden is on the City to prove that prohibited acts occurred on the
premises. The remedy may be closure of the premises for all purposes for one
year, placing the building in the custody of the court, or an order preventing the use
of the premises for prostitution forever.
Complaints may be filed by citizens, and Sec. 11228 of the Code provides that in Red Light
Abatement Actions "evidence of the general reputation of a place is admissible for the purpose
of proving the existence of a nuisance."
This method has been used successfully by the City to abate adult entertainment
establishments in Hollywood along Western Avenue. Although Red Light Abatement is
directed at regulating sites, a Red Light Abatement conviction can affect the ability of an owner
or operator to obtain a permit for a similar business at another site (see permit requirements
supra). Due to the requirement of a court proceeding, however, this method of control is both
time consuming and expensive. .
2. Police Permit Requirements
Section 103 of the Los Angeles Municipal Code provides for the regulation and control of a
variety of businesses by permits issued by the Board of Police Commissioners. Permittees are
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subject to such additional requirements as may be imposed by law or by the rules and
regulations of the Board.
Those businesses for which the City of Los Angeles requires a police permit and which may
also be oriented towards adult entertainment include:
-Arcades (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 to a business, if enforced, preclude adult
entertainment activities as a part of, the operation of the business, with revocation of the
operating permit an available remedy for violation of the regulation.
The most detailed regulations are applied to cafe entertainment (Sec. 103.102 LAMC) and are
summarized as follows:
a. Businesses Subject to the Regulations
Operation of cafe entertainment or show for profit, and the operation of public
places where food or beverages are sold or given away and cafe entertainment,
shows, still or motion pictures are furnished, allowed or shown. The regulation does
not apply to bands or orchestras providing music for dancing.
b. Cafe Entertainment Defined
"Every form of live entertainment, music solo band or orchestra, act, play,
burlesque show, revue, pantomime, scene, song or dance act." The presence of
any waitress, hostess, female attendant or female patron or guest attired in a
costume of clothing that exposes to public view any portion of either breast at or
below the areola is included with the purview of the ordinance.
c. Summary of Activities Prohibited
Allowing any person for compensation or not, or while acting as an entertainer or
participating in any live act or demonstration to:
1. Expose his or her genitals, pubic hair, buttocks or any portion of the
female breast at or below the areola.
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2. Wear, use, or employ, or permit, procure, counsel or assist another
person to wear use or employ, any device, costume or covering which
gives the appearance of or simulates the genitals, pubic hair, natal cleft,
perineum or any portion of the female breast at or below the areola.
The above provisions do not apply to a theatrical performance in a theater, concert hall or
similar establishment which is primarily devoted to theatrical performances.
The permit may also be revoked for conviction of the permittee, his employee, agent or any
person associated with permittee as partner, director, officer, stockholder, associate or
manager of:
1. An offense involving the presentation, exhibition or performance of an
obscene production, motion picture or play;
2. An offense involving lewd conduct;
3. An offense involving use of force and violence upon the person or
another;
4. An offense involving misconduct with children;
5. An offense involving maintenance of a nuisance in connection with
the same or similar business operation; or, if the permittee has allowed
or permitted acts of sexual misconduct to be committed within the
licensed premise.
Massage businesses have traditionally been regulated by licensing. The latest changes in the
massage regulations became effective in November of 1976. The application for a permit now
requires:
1. detailed information regarding the applicant;
2. name, address of the owner and lessor of the property upon or in
which the business is to be conducted, and a copy of the lease or rental
agreement;
3. requirement of a public hearing prior to issuance of a permit for the
operation of a massage business.
Operating requirements for massage businesses include:
- a permit for each massage technician;
- regulation of the hours of operation;
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- posted list of available services and their cost;
- a record of each treatment, the name and address of the patron, name
of employee and type of treatment administered.
So-called "private" clubs or "consenting adult clubs" which have ostensibly been formed as an
alternative to massage parlors had until recently been regulated via the requirement of a social
club permit. In June 1977, however, the ordinance establishing such requirement was declared
unconstitutional by a Los Angeles Municipal Court due to unreasonable restrictions on the
freedom of association. To date, it is unknown whether the City will appeal the ruling or amend
the ordinance.
C. OTHER REGULATION OF ADULT ENTERTAINMENT
BUSINESSES IN LOS ANGELES
Regulation of adult entertainment businesses has a long history in Los Angeles. In 1915 the
"prevalence of sex evils arising out of massage parlors" caused the City Council then to enact
Section 27.03 (L.A.M.C.) as "a safeguard against the deterioration of the social life of the
community." The ordinance provided:
"a. It shall be unlawful for any person to administer, for hire or reward, to any
person of the opposite sex, any massage, any alcohol rub or similar treatment, any
fomentation, any bath or electric or magnetic treatment, nor shall any person cause
or permit in or about his place or business or in connection with his business, any
agent, employee, or servant or any other person under his control or supervision, to
administer any such treatment to any person of the opposite sex."
This provision remained in the Code, in one form or another, until a similar Los Angeles
County ordinance was declared invalid in 1972 due to the preemption of the Criminal aspects
of sexual activity by the State.
In reaching its conclusion, the court referred to the discussion of the Los Angeles City
ordinance in In Re Maki. This 1943 case upheld the constitutional validity of the. ordinance,
and, according to the court, established the primary purpose of such ordinance as the limiting
of criminal sexual activity.
The late 1960s and early 1970's brought a proliferation of nude bars and sexual scam joints in
the Los Angeles area. In 1969, the Cafe Entertainment regulations (Section 103.102 Los
Angeles Business Code) was modified to include strict controls on nudity (see discussion
infra).
A variety of Council motions were made to control other types of "adult entertainment" such as
arcades, massage parlors, and newsracks. Many of these were initiated due to substantial
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citizen complaints, and some resulted in final ordinances. (See Table III pages 19a to 19d.)
Beginning in 1974, several Council motions were made generally calling for an investigation
and preparation of an ordinance regulating adult theaters and bookstores. The advice of the
City Attorney was sought, and at the suggestion of that Office, action was delayed pending the
Supreme Court decision regarding the Detroit Ordinance. That decision was handed down in
June of 1976. On July 13, 1976, a Council motion was introduced by Councilman Wilkinson
requesting a study of concentrations of adult entertainment similar to that of Detroit.
Table III provides a generalized summary of the major Council files and actions relating to
adult entertainment.
While not part of this study, a recently enacted ordinance controlling on-site sale of alcoholic
beverages should be recognized as an attempt to control another adult-type use. Effective
March 1, 1977, the Los Angeles Municipal Code was amended to require a conditional use
permit for the on-site sale of alcoholic beverages. (Council File No. 70-200, City Plan Case No.
22878). Although aimed at the regulation of anti-social activities in all establishments serving
alcoholic beverages, the subject ordinance would, of course, also have a "spillover" effect with
regard to those businesses, which have adult entertainment as well as alcoholic beverages.
Generally, the ordinance would, in all cases, require issuance of a conditional use permit for
any business selling alcoholic beverages for on-site consumption, rather than the previous
practice of permitting them as a matter of right in certain zones. The advantage of the new
procedure is that as a prerequisite of approval of an individual application, there must be a
public hearing to determine whether the proposed use will have a detrimental effect upon
nearby properties and the neighborhood in which it is being proposed. In the long run, the
ordinance may prove to be an effective device to regulate uses (dispensing alcoholic
beverages) which tend to have a deteriorating effect on an area, some of which may,
coincidentally, also be adult entertainment businesses.
Table III
City Council Files Relating to Adult Entertainment
Date File No. Sponsors Recommendation Disposition
3/23/70 North Hollywood That topless and bottomless Disapproved by
Chamber of bars and pornographic film and the Planning
Commerce literature be confined to the M-3 Commission.
zone.
3/71 C. F. 72-374 Councilman Effort to control both or massage Introduction of
Snyder parlors by modifying the AB 823
definition of "physical therapy" in modifying the
state law. And, City support for definition of
legislation that would make physical therapy-
Physical Therapists, died in
Chiropractors responsible for Committee
activities in their offices and November 1972.
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prohibit treatment by unlicensed
assistants unless the license
holder is in the room.
Recommend modification of State Board of
Board of Chiropractors Rules Chiropractic
and Regulations. Examiners
adopted "Board
Rule 316" which
makes
chiropractors
responsible for
the conduct of
employees in
their place of
practice, and
specifically
prohibits sexual
acts or erotic
behavior
involving
patients, patrons
or customers.
2/74 C. F. 72-374 Stevenson and Study of the need and feasibility 1/9/75 Board of
Wilkinson of regulating hours of operation, Police
S-1 minimum requirement for Commissioners
practitioriers-and health and approved
S-2 safety conditions in massage ordinance and
parlors. adopted
agreement with
County to
provide
inspection of
massage parlors.
10/18/74 C.F. 74- Snyder, Robert Provide by Ordinance that Police and Fire
4521 Stevenson, Ferraro permits may not be granted to and Civil
operate motion picture theaters Defense
which show "adult" films or Committee
bookstores which sell printed referred
material which may not be sold prepared
to minors at locations which are ordinance to
within 1,500 feet of the nearest Planning
school, playground or church. Committee.
4/21/75 C.F. 74- Police permit requirement for Regulation
1969 arcades becomes effective. subsequently
Regulated 5 or more coin or slug found
operated machines. Revocation unconstitutional
for non-compliance with health, by the Appellate
zoning, fire requirements, Department of
obscenity convictions. Regulates Superior Court,
hours of operation. L.A. County.
1/27/76 City Planning Planning Department report to No action taken.
Commission City Planning Commission, at
their request, regarding
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proposed regulation of massage
parlors and adult bookstores in
Los Angeles.
8/9/76 C.F. 73-374 Council adopts ordinance Ordinance now
requiring permits to operate a in effect.
S-1A massage business, act as a
massage technician and gives a
massage for compensation
effective 4/17/76.
4/23/76 C.F. 74- Wilkinson and Require public hearings prior to Referred to
4521 Stevenson opening of an adult bookstore Police, Fire and
which has for sale sexually Civil Defense.
S-2 explicit material; limit the hours
of operation.
6/25/76 C.F. 74- Wilkinson, Gibson, Request City Attorney to draft an Referred to
4521 Nowell, Braude, ordinance following Young v. Police, Fire and
Russell, Wachs, American Mini-Theaters Civil Defense
Stevenson, guidelines. Committees.
Bernardi, Farrell,
Lorenzen
6/28/76 C. F. 74- Stevenson, Wachs Preparation of zoning ordinance Referred to
4521 to prohibit sexual scam joints, Police, Fire and
adult bookstores and theaters, Civil Defense
nude live entertainment within Committees.
500' from a private dwelling,
church, school, public building,
park or recreation center, of
within 1000' of each other, to be
retroactive, priority to the oldest
establishments.
7/13/76 C.F. 74- Wilkinson Instruct the City Planning Consolidation of
4521 Department to prepare a report above cases.
to the City Council regarding the After approval of
extent of any possible full Council
degradation of neighborhoods in assigned to
Los Angeles due to Planning
concentration of adult Department with
entertainment establishments. the cooperation
of other involved
agencies.
3/15/77 C.F. 74- Police, Fire and Civil Defense Adopted by full
1969 Committee recommendation to Council.
amend Sections 103.101,
103.101.1 of the Municipal
Code-(A revised ordinance to
regulate arcades).
5/5/77 C.F. 77-860 File not available Support state legislation
for review. providing specific penalties for
S-49 use of minors for pornography.
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5/11/77 C.F. 77- File not available Regarding prostitution
1997 for review. enforcement laws.
IV. METHODOLOGY AND ANALYSIS
Methodology
In complying with the City Council's instructions, the Department has utilized various available
data sources, including property assessment data, U. S. Census data, and obtained other
information germane to the subject in an effort to determine, on an empirical basis, the effects
(if any) of adult entertainment facilities on surrounding business and other properties. The
Department also reviewed sales data of commercial and residential property in areas
containing concentrations of adult entertainment businesses and in "control areas" containing
no such concentrations. The staff also attempted to secure information on the sales volume of
commercial properties, but was unable to obtain this information.
It should be emphasized that, in conducting this study, every effort was made by the
Department to preclude the introduction of subjective judgment or other bias, except where the
opinions of other individuals or groups were specifically solicited. (Expert opinions were
requested from realtors, realty boards, appraisers and lenders through letters and
questionnaires. The Department also sent letters to local members of the American
Sociological Association requesting their assistance in this study. Their replies were limited in
number and not significant in terms of this study.) It was the Department's intent to base any
conclusions entirely on relevant data and other factual information which became available
during the course of conducting the study.
The procedure employed by the Department in conducting this study involved the following
areas of emphasis:
1. A measure of the change from 1970-76 in assessed "market value" of land and
improvements for the property occupied by and within an appropriate radius of five
known "clusters" (nodes) of "adult entertainment" businesses. An identical measure
of four "control areas" without concentrations of adult entertainment businesses
was also made to determine if a significant difference in the rate of change in
assessment values occurred in such areas between 1970 and 1976. Comparisons
were also made with the entire community in which the concentration nodes were
located;
2. An analysis of responses received from a mail survey questionnaire conducted
by the Planning Department;
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;
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4. An analysis of verbal and written testimony obtained at two public meetings on
this subject conducted on April 27 and 28, 1977 by representatives of the City
Planning Commission;
5. A review of various approaches to the regulation of "adult entertainment"
businesses, including legislation enacted by other jurisdictions;
6. An analysis of alternate forms of control, including existing Municipal Code
provisions relative to this general subject;
7. A discussion of earlier efforts of the City to control adult entertainment in Los
Angeles;
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;
1. 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.)
2. In 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 100 man-days of work;
consequently their information could not be obtained within the time constraints for
completion of the study.
Items 5, 6, and 7, above, are-the subject of Section III of this report, entitled "Methods
Currently Used to Regulate Adult Entertainment Business." The Police Department's report is
discussed herein as Section V. The Planning Department's analysis of topics 1 through 4 is
described in detail, below.
A. CHANGES IN ASSESSED VALUATION BETWEEN 1970-
76
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IN FIVE SEPARATE AREAS CONTAINING HIGH
CONCENTRATIONS OF
ADULT ENTERTAINMENT BUSINESSES
In order to determine if there has been a significant change in assessed property values which
may have been influenced by the proliferation of "adult entertainment" businesses, the
Department has calculated the change in the assessed value of land and improvements for
properties occupied by, and located within, a 1,000 to 1,800 foot radius of known
concentrations of adult entertainment businesses. Five such areas were selected for analysis,
as described below. The year 1970 was selected as the base period because of the availability
of data for that year, and since that point in time corresponds approximately with the beginning
of the proliferation of adult entertainment businesses in Los Angeles. The percentage change
in the assessed "market" value of land and improvements for commercial and residential
properties was calculated for the 1970 base year and for 1976.
Similar calculations covering the same time period were also prepared for "control
areas" (containing no concentration of adult entertainment businesses) but which were similar,
in terms of zoning and land use, or which were located in geographical proximity to the study
area nodes. Four such control areas were selected.
1. Study and Control Areas
On the basis of field investigations and other available data, the Department determined that
there are five different areas within the City suitable for analysis, each containing a relatively
high concentration of adult entertainment establishments. As shown in Exhibits "A" and "B" on
the following pages, three of these concentrations (or "nodes" of activity) are located in
Hollywood; one is in Studio City; and one is in North Hollywood. In each case, the focal point of
the area selected for analysis was the intersection of two major streets, with the adult
entertainment businesses located along the commercially zoned frontage of one or both of the
streets forming the intersection. In four of the five areas selected, residentially zoned and
developed properties are situated not farther than one-half block from the commercially-zoned
frontage. (One node in Hollywood is entirely surrounded by commercial properties.)
Although Main Street in downtown Los Angeles contains a relatively high concentration of sex-
oriented businesses (primarily theaters, arcades and bookstores), this area was not selected
for analysis since no residential properties are located in proximity thereto. In addition, Main
Street has traditionally contained burlesque theaters, arcades, bars and similar types of
establishments, and there has been no significant change in this generalized pattern of land
use during the past ten years.
In the Hollywood area, the focal points of concentration are at the following three intersections:
Santa Monica Boulevard and Western Avenue (containing 12 such businesses); Hollywood
Boulevard and Western Avenue (9 such businesses); and Selmna Avenue and Cahauenga
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Boulevard (containing 7 such businesses). In Studio City, the focal point is east of the main
intersection of Tujunga Avenue and Vineland Avenue (at Eureka Drive) which contains six
adult entertainment businesses; and in North Hollywood the focus of concentration is at
Lankershim Boulevard and Vineland Avenue (containing 4 such businesses).
In the Hollywood area, property within an approximate 1,000-foot radius of the above named
intersections was included for purposes of analysis. In Studio City it was appropriate to include
those properties situated within an approximate 1,500 foot radius of the intersection of Eureka
Drive; in North Hollywood, property within an approximate 1,500 foot radius of the intersection
of Lankershim Boulevard and Vineland Avenue was selected for analysis.
As also shown in Exhibit "A," three separate "control areas" were established in Hollywood,
each originating at the intersection of two major streets and also encompassing all property
within an approximate 1,000-foot radius of the street intersection. Control areas were
established at: Santa Monica Boulevard and Vermont Avenue; Hollywood Boulevard and
Highland Avenue; and Hollywood Boulevard and Gower Street. In the San Fernando Valley,
Exhibit "B" indicates one control area, centered at the intersection of Lankershim Boulevard
and Whipple Street, and encompassing property within a radius of approximately 1,500 feet of
that intersection, relates to the two nodes of concentration in Studio City and North Hollywood.
None of the control areas has adult entertainment businesses within its boundaries, with the
exception of the area surrounding the intersection of Hollywood Boulevard and Gower Street
which contains one such business.
Table IV, indicates the percentage change in assessed land and improvement value from July
1970 to July 1976 for the commercial and residential property encompassed by the applicable
radius surrounding each of the five nodes of concentration, together with their corresponding
control areas. For purposes of comparison, the same data is shown for the entire City and for
the Community within which the study areas are located. Since concentrations of adult
entertainment businesses could have a particular effect on the value of other business
properties in an area a separate tabulation is also shown for only commercially zoned land
within each study and control area. (Table IV-A.)
As indicated in Table IV, the 1970-76 percentage change in total assessed "market" valuation
of commercially and residentially zoned property (land plus improvements) increased in all
three areas in Hollywood containing concentrations of adult entertainment businesses.
However, there was some variance in the magnitude of the increase. Changes in the three
study area nodes were 2.79, 8.71, and 3.41 percent; compared with increases in the three
corresponding control area of 12.53, 1.94, and 5.09 percent, respectively.
The study area node located at Santa Monica Boulevard and Western Avenue increased by
2.79 percent, compared with a substantially greater increase of 12.53 percent in the "control
area" associated with that node. Total assessed value within the study area surrounding the
intersection of Selma Avenue and Cahuenga Boulevard increased by 3.41 percent while the
associated control area increased by the slightly greater 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 corresponding control area increased by only 1.94 percent.
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Table IV
1970-76 Changes in Assessed Valuation of
Commercial and Residential Land and Improvements for
Page 27 of 102
Five Areas Containing Concentration of Adult Entertainment Businesses as Compared
with "Control Areas," Surrounding Community, and
City of Los Angeles
Property Within Approximate 1,000 to Percentage Change in Assessed
1,800 Foot Radius of Intersection of No. of Entertainment "Sites" Valuation 1970-76
Streets Shown: 1969-70 June 1977 Land Improvements Total
Santa Monica Boulevard and Western 6 12 -0.22 5.81 2.79
Avenue (Hollywood)
Santa Monica Boulevard and Vermont N.A. 0 -4.84 32.66 12.53
Avenue (Hollywood Control Area)
Hollywood Boulevard and Westem 6 9 3.51 13.21 8.71
Avenue (Hollywood)
Hollywood Boulevard and Highland N.A. 0 19.32 -7.83 1.94
Avenue (Hollywood Control Area)
Selma Avenue and Cahuenga 4 7 21.12 -12.54 3.41
Boulevard (Hollywood)
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Hollywood Boulevard and Gower N.A. 1 17.76 -8.61 5.09
Street (Hollywood Control Area)
Hollywood Community N.A. 31 21.20 32.72 27.00
City of Los Angeles N.A. N.A. 35.08 38.92 37.15
Tujunga Avenue and Ventura 1 6 67.11 63.10 64.93
Boulevard (Studio Citv)
Lankershim Boulevard and Vineland 2 4 15.88 9.65 12.61
Avenue (North Hollywood)
Lankershim Boulevard and Whipple N.A. 0 62.28 27.66 42.76
Street (Valley Control Area)
Sherman Oaks-Studio City N.A. 10 69.25 60.44 64.33
Community
North Hollywood Community N.A. 5 28.59 33.15 31.07
City of Los Angeles N.A. 212 35.08 38.92 37.15
Page 28 of 102
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Table IV-A
1970-76 Changes in Assessed Valuation of
Commercially Zoned Land and Improvements for
Page 29 of 102
Five Areas Containing Concentration of Adult Entertainment Businesses as Compared
with Commercially Zoned Land in "Control Areas,"
Surrounding Community, and City of Los Angeles
Property Within Approximate 1,000 to Percentage Change in Assessed
1,800 Foot Radius of Intersection of No. of Entertainment "Sites" Valuation 1970-76
Streets Shown: 1969-70 June 1977 Land Improvements Total
Santa Monica Boulevard and Western 6 12 -0.47 8.53 3.40
Avenue (Hollywood)
Santa Monica Boulevard and Vermont N.A. 0 -12.53 4.13 -6.38
Avenue (Hollywood Control Area)
Hollywood Boulevard and Westem 6 9 -2.52 -0.45 -1.77
Avenue (Hollywood)
Hollywood Boulevard and Highland N.A. 0 25.01 -11.19 4.06
Avenue (Hollywood Control Area)
Selma Avenue and Cahuenga 4 7 21.93 -18.79 0.54
Boulevard (Hopwood)
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Hollywood Boulevard and Gower N.A. 0 17.07 -17.22 1.09
Street (Hollywood Control Area)
Hollywood Community N.A. 31 13.43 -1.51 6.70
City of Los Angeles N.A. 212 12.27 13.52 12.93
Tujunga Avenue and Ventura 1 6 19.24 25.83 21.90
Boulevard (Studio Citv)
Lankershim Boulevard and Vineland 2 4 -0.76 3.91 1.92
Avenue (North Hollywood)
Lankershim Boulevard and Whipple N.A. 0 82.28 -6.35 27.16
Street (Valley Control Area)
Sherman Oaks-Studio City N.A. 10 30.95 13.01 22.02
Community
North Hollywood Community N.A. 5 2.74 7.56 5.21
City of Los Angeles N.A. 212 12.27 13.52 12.93
Sources/Notes -Tables IV and IV-A:
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Actual assessment data from which percentage changes in Tables IV and IV-A were derived is shown in Appendix A. Assessment data was obtained
from the City's Land Use Planning and Management System (LUPAMS) computer file. Data is as of July 1 for years shown. "Entertainment Site"
means adult theatre, arcade, massage parlor, nude dancing establishment or similar use. Number of "entertainment sites" for 1969-70 was obtained
from L.A. Police Department; for June 1977 from L.A. Police Department and L.A. City Planning Department. N.A. means not available. Property
included within areas described is shown in Exhibits A and B.
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The percentage increase in assessed values
control areas, was considerably less in each
Hollywood Community or the City as a whole.
Page 31 of 102
within the three study areas, as well as the
;ase than percentage gains registered by the
In the case of the study area nodes located in the San Fernando Valley, the pattern appears to
be somewhat more spurious. The study area node containing adult entertainment businesses
located in Studio City (centered east of the intersection of Tujunga Avenue and Ventura
Boulevard) increased by 64.93 percent-the largest increase of any of the areas analyzed. In
direct contrast, the "adult entertainment node" located at Lankershim Boulevard and Vineland
Avenue increased by only 12.61 percent. The one "control area" associated with these two
San Fernando Valley nodes increased by 42.76 percent-a substantially greater gain than the
North Hollywood node, but 22 percent less than the Studio City node. (Whether the sharp
percentage increase shown for the Studio City node was the direct result of a recent
reassessment cannot be readily determined.)
The increase in assessed value within the Studio City study area was virtually the same as that
of the entire Sherman Oaks-Studio City Community but almost twice the percentage gain for
commercial and residential properties in the entire City. The North Hollywood study area
increased by a considerably lower percentage than the North Hollywood Community and the
City as a whole.
With regard to commercial properties considered separately, Table IV-A reveals that the
percentage change in assessed values of land and improvements combined was generally
lower in all study areas than in their corresponding control areas. One notable exception,
however, is the Santa Monica Boulevard and Western Avenue node which increased by 3.4
percent, while its corresponding control area (Santa Monica and Vermont) decreased by 6.38
percent. In Hollywood the change in assessed values of all study and control areas was less
than in the entire Hollywood Community. In the San Fernando Valley the two study areas both
increased less than the entire communities within which they are situated.
2. Conclusion -Changes in Assessed Valuation
On the basis of the foregoing, there would seem to be some basis to conclude that the
assessed valuation of property within the study areas containing concentrations of adult
entertainment businesses have generally tended to increase to a lesser degree than similar
areas without such concentrations. However, in the staffs opinion, there would appear to be
insufficient evidence to support the contention that concentrations of sex-oriented businesses
have been the primary cause of these patterns of change in assessed valuations between
1970 and 1976. However, responses to the Department's mail questionnaires from real estate
representatives and appraisers have indicated that in their opinion, concentrations of adult
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entertainment businesses have, in some cases, had a direct negative impact on property
values.
B. PUBLIC MEETINGS
Two public meetings were conducted by representatives of the City Planning Commission in
order to receive citizen input regarding the effects, if any, of concentrations of "adult
entertainment" establishments on nearby properties and surrounding neighborhoods. Notice of
the hearings was published in local newspapers, aired on radio, mailed to owners of
commercial and multiple residential property within 500 ft. radius of the study areas and also to
persons who had previously responded to the Department's questionnaire.
The first meeting was held in Hollywood on April 27, 1977 at Le Conte Junior High School. The
second meeting was conducted in Northridge on April 28, 1977 at Northridge Junior High
School. Both meetings were conducted by Planning Commission President Suzette Neiman
and Planning Commissioner Daniel Garcia, with Deputy City Attorney Chris Funk also in
attendance.
Questionnaires were available at the meetings for the convenience of those wishing to submit
their comments in writing.
Attendance was approximately 200 persons at the Hollywood meeting and 300 persons at the
Northridge meeting. A combined total of 60 persons addressed the Commission. The following
is a summary of the comments received by the Commission. (Tape recordings of the hearings
are available for review under City Plan Case Number 26475, in the Planning Commission
Office, Room 561-K, Los Angeles, City Hall, telephone (213) 485-5071.)
The most prevalent type of comment at the Hollywood meeting was an expression of fear of
walking in areas where "adult entertainment" and related business are concentrated. This
concern was expressed both by parents, reluctant to allow their children to be exposed to
offensive signs and wares, and by women and elderly persons who feared walking in the areas
either in the day or evenings because of the incidence of crime in the area. Specific instances
of solicitation and other crimes were recited. Some proprietors testified that they felt their
businesses have suffered, due to fear on the part of their customers. Other common
testaments concerned:
- Physical or economic deterioration of the area resulting from the influx of adult
businesses.
- An increase in street crime.
- Offensive signs and displays.
- A need to use existing enforcement tools, such as "red light abatement" to control
"adult entertainment" businesses.
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- Representatives of La Cienega art gallery proprietors expressed concern over the
recent establishment of an adult theater in the area and its incompatibility with
gallery use.
A representative of the "Pussycat Theaters" organization informed the Commission that a
survey taken by the theater operators indicated that 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 27, 1977)
o It was alleged that organized crime is in the sex service business and that this is a
$64 million local business.
- Hollywood and particularly Hollywood Boulevard was once a cultural center; now
there is a different class of people. This is a degeneration of Hollywood and
Hollywood Boulevard.
- In Hollywood, due to fear for safety, people walk around in groups, not alone or as
couples.
- Zoning is not the ultimate response to obscenity: there are public nuisance laws,
red light abatement statutes, etc.
- There was concern about the effects on children; parents in Hollywood indicated
that they did not allow their children to walk unescorted: there are too many
muggings and attacks.
- There are problems brought on by the changing population of the area: street
fights, acts of mischief and minor property damages have resulted.
- A local minister indicated concern for the elderly, and that children from 4 to 7
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years old cannot ride their bikes without being accosted; he also indicated there
had been 23 arrests for prostitution near a local elementary school; he further
stated that residents have to go to other areas to shop.
- A representative of a local synagogue stated that the elderly were afraid to walk to
religious services and that car pooling had been established.
- A representative of the Hollywood Businessmen's Association advised that 50
percent of the sex crimes reported (in the City) were in the Hollywood area; that
since the Police have closed some sex establishments crime has dropped; that
adult entertainment businesses have contributed to a deteriorating condition in
Hollywood; that there is a 100 percent turnover in school attendance; that the
business license ordinance should be modified to require an environmental impact
report and proper sign controls for new establishments and that notice should be
given to persons within one-half mile; he also reiterated that traditional businesses
were leaving the area.
- It was indicated that property values had gone down; Vine and Selma was valued
at $12.50 per sq. ft. years ago, but recently it was worth only $8.50 per sq. ft.
Northridge Meeting (April 28, 1977)
- A representative of the North Hollywood Chamber of Commerce indicated that
adult entertainment businesses were an economic and social blight; that the Police
Commission was no help; that they had proposed the M3 Zone for these uses; that
we need more police and should make greater use of red light abatement; that the
Alcoholic Beverage Control Department should do more.
- Claims were made that the Pussycat Theater in North Hollywood was a
dangerous environment to women and children; that in the recent past 2 teenage
girls had been accosted and a woman had been attacked and had to jump from a
car.
- A beauty shop owner near a Pussycat Theater indicated she no longer stayed
open in the evening because her customers were afraid.
- Adult entertainment businesses should be required to rent space in "Class A"
buildings.
- Various persons objected to newsracks, obscene material, problems of
congestion and ingress and egress.
- The Miller v. California court case was discussed: it was contended that this case
established that "a community can set its own standards."
-Questions were posed as to whether economic and financial impact should be
facts needed to develop an ordinance to control adult entertainment.
- Claims were made that adult entertainment business bring crimes and violence to
the area.
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- A speaker stated that both the Boston and the Detroit ordinances are
unacceptable. "You cannot control pornography by zoning," and opposition to the
zoning approach to obscenity was expressed.
- "California is the pornographic capital of the world."
- People are offended by pornographic material in department stores, drug stores,
supermarkets, etc. The recent Los Angeles County newsrack ordinance was
discussed.
- One person posed the question "why don't we have an Environmental Impact
Report for pornographic businesses?"
- Church representatives and a teacher at the Christian School were concerned
about their members and children being exposed to pornographic advertising
displayed at the Lankershim Theater and Pussycat Theater. They are afraid to let
their children out on the streets.
- It was stated that "we should use civil, public nuisance and red light abatement to
control adult entertainment businesses."
Conclusion
In summary, the overwhelming majority of speakers felt that the concentration of "adult
entertainment" businesses in their neighborhood was detrimental, either physically by creating
blight or economically by decreasing patronage of traditional businesses; or socially by
attracting crime. As a result of increased crime, nearby residents have become fearful and
have been forced to constrain their customary living habits in the community.
Although the testimony obtained at the public hearings would from a subjective point of view,
substantiate the conclusion that "adult entertainment" businesses have a deleterious effect on
the surrounding community, the staff is of the opinion that legitimate questions may have been
posed by the Pussycat Theater representative regarding a single classification for all "adult
entertainment" uses. There would appear to be some basis to support the contention that
certain types of such uses are more "objectionable" than others, and that negative effects of a
particular type of business might be minimized, depending on how the business is operated
and advertised.
C. SURVEY QUESTIONNAIRE CONDUCTED BY
DEPARTMENT OF CITY PLANNING
1. Description of Survey
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In order to determine additional factual data relating to the subject, and to seek the comments
and opinions of property owners, businessmen, realtors, real estate boards, real estate
appraisers, representatives of banks, Chambers of Commerce, and others, the Department
conducted a mail survey. Two questionnaires were developed. One was designed primarily for
businessmen and residential property owners and is hereinafter referred to as the General
Questionnaire. The second was designed for realtors, real estate appraisers and lenders and
is hereinafter referred to as the Appraiser Questionnaire. A copy of the two questionnaires is
contained in the Appendix. The completed questionnaires, together with other letters relative to
this subject, are on file in Room 510, Los Angeles City Hall.
The General Questionnaire was mailed to all property owners (of other than property in single-
family use) within a 500-foot radius of each of the five study areas. The questionnaire was also
distributed to various community groups (including local and area Chambers of Commerce)
and at the public meeting in Hollywood and in Northridge.
The Appraiser Questionnaire was mailed to all members of the American Institute of Real
Estate Appraisers having a Los Angeles City address and to members of the California
Association of Realtors whose office is located in the vicinity of the study areas.
Each of the two questionnaires contained spaces for a respondent to check answers to a
series of questions relating to the overall effect (if any) of adult entertainment establishments
on nearby properties. It should be emphasized that the Department intentionally structured the
"objective response" portion of the questionnaires so as to reduce "bias" and to solicit the
maximum range of responses to any specific question. For example, a respondent could check
"positive," "negative" or "no effect" in response to the question..."What overall effect do you
feel that adult entertainment establishments have on a neighborhood?"
In addition to the direct response portion of the questionnaire, information of a more subjective
nature was also solicited. For example, after each question, space was provided for a
respondent to list any comments or examples which might pertain to a specific question. The
beginning of each questionnaire also invited the respondent to write comments in the space
provided or on a separate sheet.
Between February 10 and April 30, 1977, a total of approximately 4,000 questionnaires were
mailed (with return envelopes provided) or otherwise distributed to businessmen, real estate
appraisers, realtors, representatives of banks and savings and loan institutions, the owners of
multiple-unit residential property, and others. Of this number, 694 questionnaires were
completed and returned to the Department (an overall 17.4 percent rate of return).
In addition, the Department received 197 non-solicited, completed questionnaires from
property owners in Studio City. These questionnaires were distributed in a private mailing by a
private individual. The subject mailing included a replica of the Department's appraiser
questionnaire, together with written material alleging City intent to create an adult
entertainment zone in Studio City (copy included as Appendix D-2). According to the subject
individual's testimony at the public hearing on April 27, 1977, 11,000 replica questionnaires
were mailed. Due to the prejudicial nature of the mailing, these questionnaires are not included
in the study. However, the staff did tabulate the subject responses and the tabulation and
summary are included in Appendix D-3. All persons responding to the above mailing were sent
a memo from the Department, correcting the misinformation (copy included in Appendix D-1).
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2. Results of Survey Questionnaires
A tabulation of the responses to the specific questions solicited in the objective portion in each
of the two types of questionnaires is presented below. A summary of the comments follows:
GENERAL QUESTIONNAIRE
RESPONSES
Total no. of responses = 581 = 16% return
Total no. of questionnaires 3600
Question
1. What overall effect do you feel that adult entertainment establishments have had on a neighborhood:
Positive Negative No effect
Effect on the business condition
(sales & profits) in the area: 43 (7.4%) 492 (84.7%) 36 (6.2%)
Effect on homes (value & appearance)
in the area immediately adjacent to
adult entertainment businesses: 37 (6.9%) 472 (81.2%) 26 (4.5%)
Effect on homes (value & appearance)
in the area located 500 feet or more
from adult entertainment businesses: 35 (6.0%) 446 (76.8%) 19 (3.3%)
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2. Do you believe the establishment of adult entertainment facilities in the vicinity of your business has had
any of the following effects? (Please check all those effects which you feel have occurred.)
26 (4.5%) no effect 305 (52.5%) decreased property values
206 (35.5%) lower rents 13 (2.2%) increased property values
275 (47.3%) vacant businesses 16 (2.8%) lower taxes
288 (49.6%) tenants moving out 98 (16.9%) higher taxes
224 (38.6%) complaints from customers 489 (84.2%) decreased business activity
3 (-)less crime 8 (1.4%) increased business
370 (63.7%) more crime 312 (53.7%) more litter
1 (-)improved neighborhood 8 (1.4%) other (please specify)
appearance
416 (71.6%) deteriorated neighborhood appearance
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3. (Not applicable for tally.)
4. Have you seriously considered moving your business elsewhere because of nearby concentrations of adult
entertainment businesses?
167 (28.7%) Yes 165 (28.4%) No
5. Would you consider expanding in your current location?
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83 (14.3%) Yes 177 (30.5%) No
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6. What types of adult entertainment establishments are there in your area? (Please check appropriate boxes.)
410 (70.6%) adult bookstores 179 (30.8%) nude or topless dancing
310 (53.4%) massage parlors 389 (67.0%) adult theaters
190 (32.7%) peep shows 240 (41.3%) adult motels
237 (40.8%) bars with X-rated 3 other sex shops
entertainment
How far from your business is the nearest adult entertainment establishment?
(Not tabulated due to limited response.)
Responses to the foregoing questions reveal that adult businesses are perceived by the
majority of respondents as exerting a negative impact on surrounding businesses and
residential properties.
Whether or not such negative impacts have actually occurred, or only perceived to have
occurred, cannot be readily determined, empirically, on the basis of this survey. However, in
terms of the attitudes of the respondents toward such businesses, the conclusion must be
drawn that the overall effect on surrounding properties is considered to be negative.
Among the adverse effects of adult entertainment establishments cited by businessmen are:
o Difficulty in renting office space.
- Difficulty in keeping desirable tenants.
- Difficulty in recruiting employees.
- Limits hours of operation (evening hours).
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o Deters patronage from women and families; general reduced patronage.
Of those businessmen indicating that they have not seriously considered moving because of
nearby concentrations of adult entertainment bushiness, the most frequent response was that
they had been in the area a great many years, and to establish elsewhere wold be too risky
and/or that their investment was too great to move. A few respondents indicated that it is the
adult entertainment businesses that should move, not they.
The few businessmen commenting that they would not consider expanding in their current
location indicated that their business did not warrant expansion.
Several businessmen indicated that their businesses are relatively unaffected by nearby adult
entertainment establishments. Among the businesses cited are a commercial art studio; a
building trades contractor; a mail order business; a telephone answering service and a
wholesaler.
Among the few positive effects cited by businessmen is the increase in business for certain
non-adult entertainment businesses such as tourist-serving businesses (e.g. car rental
agencies). "The bad effect it might have is cancelled out by the business it does attract; X-
rated theaters attract tourists."
Many respondents commented on the crimes associated with adult entertainment
establishments: prostitution, dope, theft, robbery, etc. A high percentage of respondents report
they do not feel safe in such areas.
A high percentage of respondents commented on their concern for the effects of adult
entertainment environment on the morals and safety of children.
A high percentage of respondents commented on the aesthetics of adult entertainment
establishments: garish, sleazy, shabby, blighted, tasteless, etc. Also, many commented on the
increased incidence of litter and graffiti.
APPRAISER QUESTIONNAIRE
RESPONSES
Total no. of responses = 81 = 20% return
Total no. of questionnaires 400
Question
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1. What effect does the concentration of adult entertainment establishments have on the market value of
business property (land, structures, fixtures, etc.) located in the vicinity of such establishments?
1 (-)increase in value
71 (87.7%) decrease in value
5 (6.2%) no effect
2. What effect does the concentration of adult entertainment establishments have on the rental value of business
property located in the vicinity of such establishments?
1 (-)increase in value
55 (67.9%) decrease in value
4 (4.9%) no effect
3. What effect does the concentration of adult entertainment establishments have on the rentability/salability of
business property located in the vicinity (length of time required to rent or sell property; rate of lessee/buyer
turnover; conditions of sale or lease, etc.)?
3 (3.7%) increase in rentability/salability
48 (59.3%) decrease in rentability/salability
3 (3.7%) no effect
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4. What effect does the concentration of adult entertainment establishments have on the annual income of
businesses located in the vicinity of such establishments?
2 (2.5%) increase in income
59 (72.8%) decrease in income
7 (8.6%) no effect
5. Have any business owners or proprietors considered relocating or not expanding their businesses because of
the nearby concentration of adult entertainment establishments?
23 (28.4%) yes
4 (4.9%) no
28 (34.6%) not known
6. In recent years, has the commercial vitality (sales, profits, etc.) of any area in the City of Los Angeles been
affected in any way by the nearby concentration of adult entertainment establishments?
45 (55.6%) yes
29 (35.8%) no
0 (-)not known
7. What effect does the concentration of adult entertainment establishments have on the market value of private
residences located within the following distances from such establishments?
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Increase Decrease No effect Total
Less than 500 feet 2 (3.8%) 48 (90.6%) 3 (5.7%) 53
500 -1000 feet 2 (3.6%) 51 (91.1 %) 3 (5.4%) 56
More than 1000 feet 1 (3.0%) 29 (87.9%) 3 (9.1 %) 33
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8. What effect does the concentration of adult entertainment establishments have on the rental value of residential
income property located within the following distances from such establishments?
Increase Decrease No effect Total
Less than 500 feet 2 (3.4%) 51 (87.9%) 5 (8.6%) 58
500 - 1000 feet 1 (2.6%) 33 (86.8%) 4 (10.5%) 38
More than 1000 feet 1 (2.8%) 27 (75.0%) 8 (22.2%) 36
9. What effect does the concentration of adult entertainment establishments have on the rentability/salability of
residential property located within the following distances from such establishments?
Increase Decrease No effect Total
Less than 500 feet 1 (2.5%) 37 (92.5%) 2 (5.0%) 40
500 - 1000 feet 1 (2.6%) 35 (89.7%) 3 (7.7%) 39
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More than 1000 feet 1 (2.8%) 28 (77.8%) 7 (19.1%) 36
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10. In regard to the questions set forth above, please describe the effects which you believe the concentration of
adult entertainment business has on each of the following:
Property values of surrounding:
Decrease No response No effect Increase
Commercial property 46 (56.8%) 32 (39.5%) 1 2 (2.5%)
Residential property 42 (51.9%) 38 (46.9%) -- 1
General 16 (19.8%) 65 (80.2%) -- --
Rental values of surrounding:
Decrease No response No effect Increase
Commercial property 39 (48.1 %) 42 (51.9%) -- --
Residential property 37 (45.7%) 44 (54.3%) -- --
General 12 (14.8%) 69 (85.2%) -- --
Vacancies:
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Decrease No response No effect Increase
Number 1 56 (69.1%) 1- 23 (28.4%)
Length 1 72 (88.9%) 2 (2.5%) 6 (7.4%)
Rate of tenant turnover -- 49 (60.5%) 1 31 (38.3%)
Annual business income 24 (29.6%) 53 (65.4%) 2 (2.5%) 2 (2.5%)
Complaints from customers
and residents due to
concentration -Yes 24 (29.6%) 57 (70.4%)
Neighborhood appearance 24 (29.6%) 3 (3.7%)
Crime 1 1 -- 48 (59.3%)
Litter -- 1 1 44 (54.3%)
Other (please specify)
GENERAL QUESTIONNAIRE
REALTOR RESPONSES
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Total no. of responses = 32
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NOTE: Due to distribution, certain realtors received the General Questionnaire rather than the Appraiser
Questionnaire. For analysis purposes, the subject responses were tabulated separately and analyzed together
with the responses to the Appraiser Questionnaire.
Question
1. What overall effect do you feel that adult entertainment establishments have had on a neighborhood:
Effect on the business condition
(sales & profits) in the area: -- 31 (97.0%) 1
Effect on homes (value & appearance)
in the area immediately adjacent to
adult entertainment businesses: -- 31 (97.0%) 1
Effect on homes (value & appearance)
in the area located 500 feet or more
from adult entertainment businesses: -- 29 (91.0%) 2
Positive Negative
No effect
2. Do you believe the establishment of adult entertainment facilities in the vicinity of your business has had any of
the following effects? (Please check all those effects which you feet have occurred.)
1 (31.3%) no effect 29 (91.0%) decreased property values
23 (71.9%) lower rents 0 (-)increased property values
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25 (70.0%) vacant businesses 3 (9.4%) lower taxes
25 (70.0%) tenants moving out 7 (21.9%) higher taxes
25 (70.0%) complaints from customers 23 (91.0%) decreased business activity
0 (-)less crime 0 (-)increased business
26 (81.3%) more crime 27 (84.0%) more litter
0 (-)improved neighborhood 0 (-)other (please specify)
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appearance
30 (94.0%) deteriorated neighborhood appearance
3. (Not applicable for tally.)
4. Have you seriously considered moving your business elsewhere because of nearby concentrations of adult
entertainment businesses?
10 (31.3%) Yes 15 (46.9%) No
5. Would you consider expanding in your current location?
10 (31.3%) Yes 12 (37.5%) No
6. What types of adult entertainment establishments are there in your area? (Please check appropriate boxes.)
27 (84.4%) adult bookstores 13 (40.6%) nude or topless dancing
17 (53.1 %) massage parlors 24 (75.0%) adult theaters
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15 (46.9%) peep shows 15 (46.9%) adult motels
12 (37.5%) bars with X-rated 0 other sex shops
entertainment
How far from your business is the nearest adult entertainment establishment?
(Not tabulated due to limited response.)
D. U.S. CENSUS AND RELATED DATA
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1. Cluster Analysis "Used by Community Analysis Bureau to Describe Various Parts of
the City"
The last U.S. Decennial Census was conducted on April 1, 1970. With the proliferation of adult
entertainment business it would seem appropriate to include as background information a
description of the socio-economic and physical characteristics of the areas under study, as
revealed by census data. Such a description may provide insight as to the underlying factors
contributing to the concentration of sex-oriented business in the areas under study.
An excellent available source providing such a description is a 1974 report prepared by the
City's Community Analysis Bureau (CAB) concerning the "State of the City". (The State of the
City-A Cluster Analysis of Los Angeles -City of Los Angeles Community Analysis Bureau,
June 1974. In this document, the CAB has utilized a statistical technique known as "cluster
analysis" to identify specific areas within the City which have common characteristics, as
revealed by census data. In conducting this study, the CAB made use of 66 census data items
(or variables) which were selected from the entire spectrum of socio-economic and physically
descriptive data items available for all census tracts in the City.
The U.S. Census Bureau reports data on numerous geographical levels, the "census tract"
being the smallest geographical area for which data is maintained and reported on a regular-
basis. There are 750 such census tract areas in the City, each containing a population of
slightly fewer than 4,000 persons, on the average. The five study area nodes and four control
areas under study herein are contained within portions of 25 census tracts.
The particular variables which most accurately describe a particular census tract were used by
the Community Analysis Bureau in such a manner as to combine those areas which have the
most similar characteristics. As a result of this procedure, thirty cluster groups were
established throughout the City, each such cluster consisting of one or more census tracts,
each census tract within a particular cluster being more similar to other parts of that cluster
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than to any other geographical section of the City.
Description of Hollywood Area
The three study areas in Hollywood containing concentrations of adult
entertainment businesses are included within portions of 11 census tracts. Their
three associated "control areas" are partially contained within nine census tracts.
These 20 tracts are all included within a larger area identified in the CAB's report as
"Cluster 15," entitled "The Apartment Dwellers," consisting of 34 tracts. A
description of this area, as quoted from the previously cited CAB report, is set forth
below. The fact that this description is based on data which is now seven years old
may not be disadvantageous, for the purposes of this study, inasmuch as adult
entertainment businesses began to flourish in the 1969-70 period.
"Cluster 15 is a lower income, predominately old apartment area located
west of the Civic Center..."
"The cluster represents a total population of 174,000, 46% male and
54% female. The median age is 40. The area is mostly White, but does
have an above average ethnic mix--19% Spanish-American, 3%
Japanese, 2% Chinese, 3% Black. It is a cluster of workers and senior
citizens. One in five residents is over 65. Female participation in the
labor force is the highest of the. 30 clusters. The population under 18 is
small. Many of the families are headed by women..."
"...Close to seven out of ten labor active
employed. Most completed high school and
$8,700, median family income is below the
lower income does not translate into an
distribution. One in ten families and a sma
individuals are welfare recipients..."
residents are white collar
15% completed college. At
average for the City. This
abnormally high poverty
ler proportion of unrelated
"...Residents of the cluster are centrally located to both the Downtown
and its commercial-financial strip extension, Wilshire Boulevard. Many
public transit routes service the area. Close to 40% of the households
have no automobile. The presence of two or more cars is not common.
Of the older apartment complexes many have no garage facilities..."
"...Old apartments comprise 42% of the multiple units. One of the
heaviest concentrations occurs east of Western Avenue and north of
Olympic Boulevard. These are high density, closely packed, rectangular
shaped, stucco units which line the streets approaching Wilshire
Boulevard. South of Olympic Boulevard, the pattern remains one of
multiple family units, but these are generally interspersed with homes or
are the end product of converted two and three story frame houses.
Hollywood is similar, but is has several single family residential areas
and apartment encroachment appears to have more of an impact..."
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"...Most of the cluster's 102,700 dwellings are renter occupied, including
a majority of the homes. Median rent averages $108, but 17% of the
multiple dwellings are available for less than $80..."
"...Single family residences are a small proportion of the total housing
stock and like the area's apartments, many predate World War II. Few
of the essentially single family residential neighborhoods have the kind
of zoning protection which requires that new construction be single
units. Replacement housing has tended to be large apartments. Homes
averaged $26,000 in median value, which is more a factor of the land
than the improvements. Much of the land west of Western Avenue
adjoins the more expensive Hancock Park area..."
"...Cluster 15 has one of the highest population densities in the City,
19,080 persons per square mile, not exceptional for an apartment area.
It also has the highest cluster average of elementary school transiency
rates-46% for incoming students and 34% for students leaving. This
mobility of the residents did not seem to affect the median sixth grade
reading score. It was above the City average. The cluster has 8 park
sites within its boundary and is also served by the more regional
recreation areas of Echo Park, MacArthur Park and Griffith Park all of
which are within access..."
"...The incidence of burglary per 100 improved parcels is high, a partial
reflection of the large number of dwelling units per land parcel. One of
the more disturbing aspects of the cluster is the suicide rate. Outside of
Downtown, only three of the clusters had higher rates..."
2. Use of 1970 Census Data to Describe Studio City and North Hollywood Areas
There are four census tracts which comprise the Studio City study area; two such tracts in
North Hollywood; and three census tracts representing the "control area" for the San Fernando
Valley. (One of the "control area" tracts also forms part of the Studio City study area.)
The CAB's cluster analysis reveals that these eight different census tracts are all quite
dissimilar, inasmuch as the seven tracts are contained within six different "clusters." A detailed
description of each of these six clusters would not be practical for purposes of this study.
However, a summary of certain key variables attributable to the two study areas in Studio City
and North Hollywood, and the one corresponding control area might be instructive, and is
therefore presented in Table V following. For purposes of comparison, the data is also shown
for the City as a whole.
Table V
Comparison of 24 Variables from 1970 Census
Describing Studio City and North Hollywood Nodes
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and Corresponding Control Area
VARIABLES AREAS AND VALUES
Studio City North Hollywood Control
(Tujunga & (Lankershim & (Lankershim Entire
Population Ventura Vineland & Whipple C~
Population per sq. mile 5,742 8,265 5,893 6,041
Persons 0-17 18.4 18.2 16.7 30.2
Persons 65+ 10.6 17.9 15.2 10.1
White (non-Spanish) 92.0 85.3 90.7 60.3
%Black00017.2
Spanish-American 6.5 13.7 7.7 18.4
Families w/female head 10.6 16.4 16.4 16.2
Education
High School dropouts,
25 & older 22.1 38.6 25.3 38.1
25+ who have finished
4+ years college 22.0 10.2 18.3 13.9
Economics
Approximate median family
income $15,672 $9,471 $12,575 $10,535
White collar employed 80.4 60.6 77.3 57.4
Unemployed 7.8 6.1 9.1 7.0
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Families in poverty 3.7 10.0 6.6 9.9
Families receiving welfare 4.3 7.6 4.7 9.9
1-unit structures 50.6 48.9 34.2 51.7
Approximate median value,
owner occupied units $39,141 $25,335 $35,530 $26,700
Approximate median monthly
rent, renter occupied units $135 $123 $129 $107
of owner occupied, 1 unit,
structures built before 1940 24.1 52.4 52.2 28.5
of renter occupied, 2+ unit
structures built before 1940 10.9 13.9 21.8 30.7
Crime Rates
Assaults per 100 population .465 .374 .478 .857
Robberies per 100 population .172 .267 .170 .464
Burglary per 100 improved
parcels 13.86 10.94 13.50 14.96
Total Arrests per 100
population 4.23 4.26 4.10 8.26
Narcotic Arrests per 100
population aged 14-44 2.66 1.39 1.60 2.04
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On the basis of the foregoing 1970 Census data, it is possible to develop a general description
of the two study area modes containing adult entertainment businesses in the Valley. As
indicated above, such a description must necessarily be based on data applying to entire
census tracts, even through the study areas may encompass only portions of tracts.
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Residents of the Studio City study area node in 1970 were predominantly an upper middle
income group, with a relatively high percentage of college graduates. High school dropouts
were considerably below the citywide norm. Eight out of ten employed persons were in "white
collar" jobs. The percentage of families receiving welfare or in poverty status was considerably
below the citywide percentage. The unemployment rate was slightly higher than that of the
entire city.
The median value of owner occupied homes in the Studio City area was more than $12,400
higher than the City median. About one-half of the housing units were one-unit structures.
Apartment rental rates were also higher than the city as a whole. The percentage of one-unit,
owner occupied housing units built before 1940 (24.1 percent) approached the citywide
median of 28.5 percent.
With regard to crime statistics (as of 1970), robberies per 100 population in the Studio City
area were below the rate for the city as a whole (.172 and .454, respectively), although the
number of burglaries per 100 improved parcels (13.86) was close to the citywide rate of 14.96.
Total arrests per 100 population (4.23) were about one-half of the 8.26 rate which prevailed
citywide.
The North Hollywood study area contrasts rather sharply with the above described Studio City
area. In North Hollywood, median family income was $9,471 in 1970-lower than the citywide
median of $10,535-and considerably lower than the $15,672 median income of residents in the
Studio City study area. Sixty-one percent of employed persons were in "white collar" jobs in
North Hollywood, compared with 80 percent in Studio City and 57 percent in the entire city.
The percentage of families in a poverty status in North Hollywood was considerably higher
than in Studio City (10.0 percent and 3.7 percent, respectively). The percent of families in
North Hollywood receiving welfare was higher than in Studio City, but lower than in the entire
city. Unemployment rates, however, were lower in North Hollywood than in Studio City and the
entire city.
Housing values were considerably lower in North Hollywood than in Studio City, and slightly
lower than average values throughout the entire city. Median monthly rents were lower in North
Hollywood than in Studio City but higher than in all of Los Angeles. Of all owner-occupied one-
unit structures, 52.4 percent were built prior to 1940 in the North Hollywood study area,
compared with only 28.5 percent in the entire city. Single-family homes in North Hollywood are
older than in Studio City.
As revealed in Table V, 1970 crimes rates for the seven variables tabulated were lower in
North Hollywood than in the city as a whole. Except for "robberies per 100 population" and
"total arrests per 100 population" all other rates in North Hollywood were lower than in the
Studio City study area.
Tabulation of U.S. Census Trends from 1960 to 1970
Time series (trend) data can often be of value in identifying underlying socio-economic or
physical characteristics which may have contributed to the change in an area. During the
course of this study, the staff prepared a tabulation of the 1960-70 change in selected socio-
economic variables as reported in the U.S. Census, covering the five study areas, the four
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"control" areas, and the City as a whole. This was done in order to determine if changes in the
study area nodes were significantly different than the "control areas," or from citywide norms.
A tabulation of this data is contained in Appendix E. A review of this data revealed that the
1960-70 trends in the variables selected (relating to population, economics and housing) were
not significantly different for the study areas than for the "control areas." In general, numerical
or percentage changes in the data were also similar to citywide trends and no firm conclusions
of particular relevance to the study could be developed.
V. POLICE DEPARTMENT STUDY OF HOLLYWOOD
This section of the report considers the number and percentages of adult entertainment
businesses in the City, changes in these businesses since 1975, and more specifically, crime
rates in the Hollywood area as compared to crime rates, citywide.
The following information was compiled by the Los Angeles Police Department and shows the
incidence of certain adult entertainment establishments as of two different time periods-
November of 1975 and December 31, 1976. The statistics show a decrease in massage
parlors, bookstores, arcades and theaters and a slight rise in adult motels. This was during the
same period of time that there was stepped-up surveillance and deployment of officers in
areas where concentrations of adult entertainment establishments existed. (The Hollywood
community is within the West Bureau.)
This information and that which follows involving the incidence of crime in the Hollywood area
provides what may be a positive correlation between crime and the presence of adult
entertainment facilities.
TYPE OF ACTIVITY Nov. 1975 Dec. 1976 of Chance
Adult Motels 37 38 +2%
Massage Parlors 147 80 -45%
Bookstores/Arcade 57 45 -21
Theaters 47 44 -6%
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TOTAL 288 207 -28%
DECEMBER 31, 1976
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LOS ANGELES CITY POLICE DEPARTMENT
BUREAU OF ACTIVITY AND PERCENTAGE
CENTRAL SOUTH WEST VALLEY
TYPE OF ACTIVITY BUREAU BUREAU BUREAU BUREAU
Adult Motels 5 (13%) 23 (60%) 5 (13%) 5 (13%)
Massage Parlors 6 (7%) 4 (5%) 42 (53%) 28 (35%)
Bookstores/Arcades 6 (20%) 1 (2%) 24 (53%) 11 (24%)
Theaters 7 (16%) 1 (2%) 28 (64%) 8 (18%)
TOTAL 27 (23%) 29 (14%) 99 (48%) 52 (25%)
The information in this section is an extract from a report to the Planning Department on "The
Impact of Sex Oriented Businesses on the Police Problems in the City of Los Angeeles," (the
complete report prepared by the Los Angeles City Police Department is available for review in
the official files under City Plan Case No. 21475 in the Los Angeles City Planning Department),
prepared by the Los Angeles City Police Department. The City Council in instructing the
Planning Department to conduct the Adult Entertainment study has also instructed other City
agencies to cooperate with and contribute as necessary to the report process. In accordance
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with such instructions, the Police Department conducted an analysis of the relationship
between the concentration of adult entertainment establishments and criminal activity in the
Hollywood area as compared to the citywide crime rates for the period beginning 1969 and
ending 1975. This period of comparison covers the years during which adult entertainment
establishments appeared and proliferated in the Hollywood area.
Part I crimes are those criminal acts which most severely effect their victims; they include
homicide, rape, aggravated assault, robbery, burglary, larceny, and vehicle theft. During the
period of 1969 through 1975, reported incidents of Part I crimes in the Hollywood Area
increased 7.6 percent while the City showed a 4.2 percent increase. Thus, Hollywood's Part I
crimes increased at nearly twice the rate of the City's increase. In conformance to the overall
trend, every Part I crime committed against a person, not against property, increased at a
higher rate in the Hollywood Area than in the citywide total. Street robberies and 484 purse
snatches, wherein the victim was directly accosted by their assailant, increased by 93.7
percent and 51.4 percent, respectively; the citywide increase was 25.6 percent and 36.8
percent.
Suspects arrested for Part I criminal acts in Hollywood Area increased 16.2 percent while the
City dropped by 5.3 percent. This reveals that the Hollywood Area was 21.5 percent over the
City's total in the apprehension of serious criminals during the seven year period.
Equally alarming as the increase in Part I arrests, is the increase in Part II arrests (described
on Table VI, pages 53-54) in the Hollywood Area as opposed to the rest of the City. Hollywood
increased in this category by 45.5 percent while the City rose but 3.4 percent.
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 hike, Hollywood bounded to a 372.3 percent
increase in prostitution arrests.
Similarly, pandering arrests in the Hollywood Area increased by 475.0 percent, 3-1/2 times the
city increase of 133.3 percent. (See note p. 54.)
Table VI
1969 Through 1975 Survey Period
Reported Crimes and Arrests
Hollywood Area Ci wide
Part I Offenses 1969 1975 % Change 1969 1975 % Change
Homicide 19 37 +94.7 377 574 +52.3
Rape 214 199 -7.0 2115 1794 -15.2
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Aggravated Assault 605 886 +46.5 14798 14994 +1.3
Robbery 905 1591 +75.8 11909 14667 +23.2
Burglary 5695 5551 -2.5 65546 69489 +6.0
Larceny 7852 8396 +6.9 89862 93478 +4.0
Auto Theft 2621 2608 -0.5 32149 30861 -4.0
TOTAL 17911 19268 +7.6 216756 225857 +4.2
St. Robberies 381 738 +93.7 5321 6684 +25.6
484 Purse Snatches 185 280 +51.4 1951 2668 +36.8
ARRESTS
Hollywood Area Ci wide
Part I Offenses 1969 1975 % Chanoe 1969 1975 % Change
Homicide 21 26 +23.8 475 573 +20.6
Rape 67 47 -29.9 858 552 -35.7
Aggravated Assault 239 348 +45.6 6250 3163 -49.4
Robbery 368 285 -22.6 4855 5132 +5.7
Burglary 864 514 -40.5 7823 6032 -22.9
Larceny 546 1371 +151.1 6877 11706 +70.2
Auto Theft 319 226 -29.2 4820 3121 -5.3
TOTAL 2424 2817 +16.2 31958 30279 -5.3
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Hollywood Area Ci wide
*Part II Offenses 1969 1975 % Change 1969 1975 % Change
TOTAL 10660 15503 +45.4 179233 185417 +3.4
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"(Part II arrests include: other assaults, forgery and counterfeiting, embezzlement and fraud, stolen property,
prostitution, narcotics, liquor laws, gambling, and other miscellaneous misdemeanors.)
Prostitution Arrests 1969 1975 % Change
Hollywood Area 433 2045 +372.3
Citywide 2864 3564 +24.5
Pandering Arrests 1969 1975 % Change
Hollywood Area 8 46 +475.0
Citywide 42 98 +133.3
NOTE: (The prostitution arrests made in the Hollywood Area in 1975 represents 57.3 percent of all arrests for
prostitution made in the city. The pandering arrests made in the Hollywood Area in 1975 represents 46.9 percent
of all pandering arrests made in Los Angeles during that year.)
DEPLOYMENT
Hollywood Area 1969 1975 % Change
Patrol 197 255 +29.4
Investigators 45 61 +35.6
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TOTAL 242 316 +30.6
Citywide 6194 7506 +21.1
ADULT ENTERTAINMENT ESTABLISHMENTS
HOLLYWOOD AREA
1969 through 1975
19691975
1 Hard-core motel 3 Hard-core motel
2 Bookstores 18 Bookstores
7 Theaters 29 Theaters
1 Massage parlor/scam joint 38 Massage parlors/scam joints
11 Locations (Total) 88 Locations (Total)
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During the period included in this report, the citywide deployment of police personnel rose by
21.2 percent. However, with the surge of crime in the Hollywood Area, deployment there
increased by 30.6 percent, 9.4 percent higher than the rest of the city. Included in this figure is
a 29.4 percent hike in uniformed officers and 35.6 percent rise in investigators to cope with the
criminal elements.
This survey reflects a seven-year span during which time the Adult Entertainment
Establishment in the Hollywood Area proliferated from a mere 11 establishments to an
astonishing number of 88 such locations. The overall deleterious effect to the entire community
is evident in the statistics provided. The overwhelming increase in prostitution, robberies,
assaults, thefts; and the proportionate growth in police personnel deployed throughout
Hollywood, are all representative of blighting results that the clustering of Adult Entertainment
Establishments has on the entire community. These adverse social effects not only infect the
environs immediately adjacent to the parlors but creates a malignant atmosphere in which
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crime spreads to epidemic proportions.
Page 60 of 102
The remaining sections of the Police Department report are letters and signature petitions from
concerned businessmen, clergy, merchants, citizens and police officers and are in the file and
available for inspection upon request. The following paragraph summarizes this section of the
Police Department report.
The police officer reports can be summarized as follows: all officers felt the sex-oriented
businesses either contributed to or were directly responsible for the crime problems in the
Hollywood area. The officers felt the sex shops were an open invitation to undesirables and
thereby directly caused the deterioration of neighborhoods. Also, it was suggested that these
businesses purposely cluster in order to establish a "strength in numbers" type effect, once
they establish a foothold in a neighborhood they drive the legitimate businesses out.
The letters from the businessmen, clubs, churches and concerned citizens were all in support
of police efforts to close adult entertainment facilities. The letters all expressed the feeling that
the sex shops attracted homosexuals, perverts, prostitutes and other undesirables and directly
contributed to the decline of the Hollywood area.
Los Angeles City Planning Department
Calvin S. Hamilton, Director
Frank P. Lombardi, Executive Officer
Glenn F. Blossom, City Planning Officer
Citywide Planning and Development Division
Glenn O. Johnson, Division Head
Code Studies Section
Jack C. Sedwick, Senior City Planner
Robert Janovici, City Planner
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Charles S. Rozzelle, City Planner
Marcia Scully, Planning Assistant, Project Coordinator
Evelyn Garfinkle, City Planning Associate
Fred Hand, City Planning Associate
Ronald Lewis, City Planning Associate (former project staff member)
Charles Zeman, City Planning Associate
Staff Support
Donald S. Jacobs, Data Analysis
Fred Ige, Planning Assistant
Joyce Odell, Cartographer
Gilbert Castro, Cartographer
Barbara Reilly, Typist
Corrine Gluck, Typist
Mary Volz, Typist
Mewland Watanabe, Typist
Jeanne Crain, Typist
Audrey Jones, Typist
Mason Dooley, Photographer
APPENDICES
Appendix A
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Page 62 of 102
Changes in Assessed "Market" Value of Residential and Commercial Property 1970-76;
Areas of Concentration of Adult Entertainment Businesses; Corresponding Control
Areas, and City of Los Angeles
Assessed "Market" Values
Areas of Concentration Land Improvements Total
("Nodes") and Control Areas 1970 1976 1970 1976 1970 1976
Santa Monica & Western 12,955,100 12,926,800 12,945,620 13,697,620 25,900,900 26,624,420
Control Area-Santa Monica 8
Vermont 11,549,300 10,990,500 9,971,400 13,227,900 21,520,700 24,218,400
Hollywood 8~ Western 17,618,700 18,237,710 20,361,040 23,015,660 37,979,740 41,289,370
Control Area-Hollywood &
Highland 21,956,500 26,197,880 39,051,920 35,992,140 61,008,420 62,190,020
Selma 8 Cahuenga 28,720,280 34,785,080 31,852,740 27,856,660 60,573,020 62,641,740
Control Area-Hollywood &
Gower 14,502,880 17,078,900 13,411,880 12,256,520 27,914,760 29,335,420
Tujunga & Ventura (Studio City) 7,115,460 11,890,900 8,493,260 13,852,800 15,608,720 25,743,700
Lankershim 8 Vineland 13,789,200 15,979,300 15,287,340 16,763,160 29,076,540 32,742,460
(North Hollywood)
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Control Area-Lankershim &
Whipple 11,168,200 18,169,000 14,744,280 18,823,200 25,912,480 36,992,200
City of Los Angeles 8,303,456,720 11,216,558,900 9,692,014,680 13,464,660,940 17,995,471,400 24,681,219,840
Appendix B
March 14, 1977
REQUEST FOR YOUR ASSISTANCE IN OBTAINING INFORMATION
REGARDING
"ADULT ENTERTAINMENT ESTABLISHMENTS"
Page 63 of 102
The Los Angeles City Council has recently requested the Department of City Planning, in
cooperation with the Police Department and other City agencies, to conduct a study
concerning "adult entertainment" businesses.
Because of your particular knowledge of the businesses in the vicinity of your address, we are
requesting that you answer the questions on the attached questionnaire. These questions
relate to the effect of adult entertainment establishments on other businesses and
neighborhoods in the surrounding area. The results of the questionnaire will be of great value
to us in conducting this study.
Please return your completed questionnaire in the stamped envelope provided before April 1,
1977.
If you have any questions about the study or wish to discuss this matter with Planning
Department staff members, please call 485-3508.
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We greatly appreciate your cooperation in assisting us in this survey.
Original signed by Calvin S. Hamilton
CALVIN S. HAMILTON
Director of Planning
CSH:CSR:cd
0417B/0029A
ADULT ENTERTAINMENT QUESTIONNAIRE
Los Angeles City Planning Department
May 9, 1977
Page 64 of 102
Please answer the seven questions below by checking the appropriate spaces. Feel free to
write comments in the space provided or on a separate sheet.
For the purposes of this study, an adult entertainment establishment includes businesses such
as: adult bookstores; nude or topless dancing establishments; massage parlors; adult theatres
showing X-rated movies; "peep shows;" so-called adult motels, and bars with X-rated
entertainment.
1. What overall effect do you feel that adult entertainment establishments have on a
neighborhood:
Effect on the businesses condition (sales & profits) in the area:
positive negative no effect
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Comments/Examples:
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Effect on homes (value & appearance) in the area immediately adjacent to adult
entertainment businesses:
positive negative no effect
Effect on homes (values & appearance) in the area located 500 feet or more from
adult entertainment businesses:
positive negative no effect
Comments/Examples:
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2. Do you feel the establishment of adult entertainment facilities in the vicinity of your business
has had any of the following effects? (Please check all those effects which you feel have
occurred.)
no effect decreased property values
lower rents increased property values
vacant businesses lower taxes
tenants moving out higher taxes
complaints from customers
less crime
more crime more litter
improved neighborhood
appearance
deteriorated neighborhood
appearance
decreased business activity
increased business
other (please specify)
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Please list specific examples relating to any box checked, immediately above.
3. What are the hours of operation of your business?
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4. Have you seriously considered moving your business elsewhere because of nearby
concentrations of adult entertainment businesses?
yes no
wny?
5. Would you consider expanding in your current location?
yes no; if not: why?
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6. What types of adult entertainment establishments are there in your area? (Please check all
appropriate boxes.)
adult bookstores nude or topless dancing
massage parlors adult theatres
peep shows adult motels
bars with X-rated entertainment
How far from your business is the nearest adult entertainment establishment?
Thank you for your cooperation. Please return this questionnaire to:
City of Los Angeles
Department of City Planning
200 North Spring Street
Room 513, City Hall
Los Angeles, CA 90012
Name
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(Business)
Address
Appendix C
March 14, 1977
REQUEST FOR YOUR ASSISTANCE IN OBTAINING INFORMATION
REGARDING
"ADULT ENTERTAINMENT ESTABLISHMENTS"
Page 69 of 102
The Los Angeles City Council has recently requested the Department of City Planning, in
cooperation with the Police Department and other City agencies, to conduct a study
concerning "adult entertainment" businesses.
Because of your particular knowledge of the businesses in the vicinity of your address, we are
requesting that you answer the questions on the attached questionnaire. These questions
relate to the effect of adult entertainment establishments on other businesses and
neighborhoods in the surrounding area. The results of the questionnaire will be of great value
to us in conducting this study.
Please return your completed questionnaire in the stamped envelope provided before April 1,
1977.
If you have any questions about the study or wish to discuss this matter with Planning
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Department staff members, please call 485-3508.
We greatly appreciate your cooperation in assisting us in this survey.
CALVIN S. HAMILTON
Director of Planning
CSH:CSR:Imc
ADULT ENTERTAINMENT QUESTIONNAIRE
Los Angeles City Planning Department
March 14, 1977
Page 70 of 102
Please give your opinion regarding questions set forth below by checking the appropriate
spaces and providing comments in the space provided or on a separate sheet.
For the purposes of this study, "adult entertainment establishments" includes businesses such
as: adult bookstores; nude or topless dancing establishments; massage parlors; adult theatres
showing X-rated movies; "peep shows;" so-called adult motels, and bars with X-rated
entertainment.
EFFECT ON SURROUNDING BUSINESSES
1. What effect does the concentration of adult entertainment establishments have on the
market value of business property (land, structures, fixtures, etc.) located in the vicinity of such
establishments?
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increase in value decrease in value no effect
Comments/Examples: (Please cite specific examples, including available data.)
2. What effect does the concentration of adult entertainment establishments have on the rental
value of business property located in the vicinity of such establishments?
increase in value decrease in value no effect
Comments/Examples: (Please cite specific examples, including available data.)
3. What effect does the concentration of adult entertainment establishments have on the
rentability/salability of business property located in the vicinity (length of time required to rent
or sell property; rate of lessee/buyer turnover; types of businesses of prospective
lessees/buyers; conditions of sale or lease, etc.)?
increase in rentability/salability
decrease in rentability/salability
no effect
Comments/Examples: (Please cite specific examples, including available data.)
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4. What effect does the concentration of adult entertainment establishments have on the
annual income of businesses located in the vicinity of such establishments?
increased income decreased income no effect
Comments/Examples: (Please cite specific examples, including available data.)
5. Have any business owners or proprietors considered relocating or not expanding their
businesses because of the nearby concentration of adult entertainment establishments?
yes no not known
If yes, please indicate the specific reason, if known.
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6. In recent years, has the commercial vitality (sales, profits, etc.) of any area in the City of Los
Angeles been affected in any way by the nearby concentration of adult entertainment
establishments?
yes no not known
If yes, which areas?
Comments/Examples: (Please cite effects and provide available data.)
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EFFECT ON SURROUNDING RESIDENTIAL PROPERTIES
7. What effect does the
market value of private
establishments?
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concentration of adult entertainment establishments have on the
residences located within the following distances from such
Increase Decrease No Effect
Less than 500 feet
500 - 1000 feet
More than 1000 feet
Comments/Examples: (Please cite effects and provide available data.)
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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
Less than 500 feet
500 - 1000 feet
More than 1000 feet
Comments/Examples: (Please cite effects and provide available data.)
9. What effect does the concentration of adult entertainment establishments have on the
rentability/salability of residential property located within the following distances from such
establishments?
Increase Decrease No Effect
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Less than 500 feet
500 -1000 feet
More than 1000 feet
Comments/Examples: (Please cite effects and provide available data.)
OVERALL EFFECTS
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10. In regard to the questions set forth above, please describe the effects which you believe
the concentration of adult entertainment businesses has on each of the following:
Property values of surrounding:
Commercial property
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Residential property
Rental values of surrounding:
Commercial property
Residential property
Vacancies:
Number
Length
Rate of tenant turnover
Annual business income
Complaints from customers and residents due to concentration
Neighborhood appearance
Crime
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Litter
Other (please specify)
Thank you for your cooperation. Please return this questionnaire to:
City of Los Angeles
Department of City Planning
200 North Spring Street
Room 513, City Hall
Los Angeles, CA 90012
Name
(Business)
Address
Do you wish to be notified of the public hearing on this matter?
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yes
Appendix D-1
May 3, 1977
no
Concerned Members of the Public
ADULT ENTERTAINMENT STUDY
We wish to thank you for your interest in the above matter. Recently, residents
City area have received erroneous information regarding the activities of thi
Specifically, they have been informed that it is our intent to create an "adult
zone" on Ventura Boulevard. This information is not correct.
Page 79 of 102
of the Studio
s Department.
entertainment
In January of this year, the Los Angeles City Council instructed the Planning Department to
conduct a study to determine whether so-called "adult entertainment" establishments, where
they exist in concentration, tend to have a deteriorating or blighting effect on adjacent
properties and areas. Since that time, the Department staff has been evaluating data from the
public and governmental agencies to determine whether evidence of such effects exists.
Within the next two months, the analysis of the information gathered will be presented to the
Los Angeles City Council which will make a decision as to whether adoption of regulations is
appropriate.
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We regret that you were sent alarming erroneous information; if you have any further
questions, please call my staff at 485-3508 or 485-3868.
(Original signed by)
CALVIN S. HAMILTON
Director of Planning
CSH:RJ:mw
Appendix D-3
PRIVATELY DISTRIBUTED QUESTIONNAIRE
(Note: Not a portion of Planning Department Study)
RESPONSES
Total no. of responses = 197
Question
1. What effect does the concentration of adult entertainment establishments have on the market value of business
property (land, structures, fixtures, etc.) located in the vicinity of such establishments?
2 (-)increase in value
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178 (90.4%) decrease in value
2 (-) no effect
2. What effect does the concentration of adult entertainment establishments have on the rental value of business
property located in the vicinity of such establishments?
2 (-)increase in value
169 (85.8%) decrease in value
3 (-) no effect
3. What effect does the concentration of adult entertainment establishments have on the rentability/salability of
business property located in the vicinity (length of time required to rent or sell property; rate of lessee/buyer
turnover; conditions of sale or lease, etc.)?
2 (-)increase in rentability/salability
161 (81.7%) decrease in rentability/salability
3(-)noeffect
4. What effect does the concentration of adult entertainment establishments have on the annual income of
businesses located in the vicinity of such establishments?
2 (-)increase in income
149 (75.6%) decrease in income
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5 (-) no effect
5. Have any business owners or proprietors considered relocating or not expanding their businesses because of
the nearby concentration of adult entertainment establishments?
71 (36.9%) yes
4 (4.9%) no
96 (48.7%) not known
6. In recent years, has the commercial vitality (sales, profits, etc.) of any area in the City of Los Angeles been
affected in any way by the nearby concentration of adult entertainment establishments?
100 (50.8%) yes
57 (28.9%) no
(35.8%) not known
7. What effect does the concentration of adult entertainment establishments have on the market value of private
residences located within the following distances from such establishments?
Increase Decrease No effect Total
Less than 500 feet -- 148 (100.0%) -- 148
500 -1000 feet - 145 (100.0%) -- 145
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More than 1000 feet -- 142 (95.9%) -- 148
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8. What effect does the concentration of adult entertainment establishments have on the rental value of residential
income property located within the following distances from such establishments?
Increase Decrease No effect Total
Less than 500 feet -- 143 (99.3%) 1 (-) 144
500 - 1000 feet -- 138 (98.6%) 2 (1.4%) 140
More than 1000 feet -- 133 (95.0%) 7 (50.0%) 140
9. What effect does the concentration of adult entertainment establishments have on the rentability/salability of
residential property located within the following distances from such establishments?
Increase Decrease No effect Total
Less than 500 feet -- 147 (100.0%) -- 147
500 - 1000 feet -- 141 (99.3%) -- 142
More than 1000 feet -- 141 (97.2%) -- 145
10. (Not tabulated)In regard to the questions set forth above, please describe the effects which you believe the
concentration of adult entertainment business has on each of the following:
In summary, the respondents felt that the subject businesses have a decidedly adverse impact on surrounding
businesses and residential properties and the large majority believe that the adverse effect extends beyond the
1000-foot radius.
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Comments indicate concern for:
1. personal safety, e.g. assaults
2. moral effect on children
3. safety of property, e.g. vandalism, robbery, etc.
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4. neighborhood appearance; adult entertainment establishments were described variously as tawdry,
tacky, garish, seedy, messy, neglected, untidy, blighted, unkempt.
5. litter, e.g. cans, bottles, newspapers, etc., strewn about public and private property, especially heavy
after Saturday night.
6. spillover parking into residential areas; on-site parking is often inadequate; customers seeking
anonymity park at a distance away from any given establishment, on residential streets.
7. graffiti on public and private property.
Appendix E
SANTA MONICA BOULEVARD & WESTERN AVENUE
Node Ci ide
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Population 1960 1970 1960 1970
Total Population 18,484 19,033 2,479,015 2,811,801
Black 38 340 334,916 503,606
Percentage 0.2 1.8 13.5 17.9
Spanish 540 3,833 260,399 518,791
Percentage 3.7 20.1 10.5 18.5
Median Age 42.1 38.0 33.2 30.6
Persons 0-17 2,190 3,126 756,640 849,246
Percentage 11.8 16.4 30.5 30.2
Persons 65+ 2,437 3,334 253,993 283,395
Percentage 13.1 17.5 10.2 10.1
No. of Husband & ~fe Families 3,153 3,380 545,109 553,564
No. of Unrelated Individuals 3,833 6,190 329,977 421,701
Average Household Size 1.95 1.90 2.77 2.68
Housing
Total Units 9,859 10,667 935,507 1,074,173
Singles 2, 938 1, 919 559, 745 560, 378
Percentage 30.0 18.0 59.0 52.0
Multiples 6,921 8,748 375,762 510,261
Percentage 70.0 82.0 40.0 47.4
Built Pre-1939 7,039 5,736 481,797 328,988
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All Occupied Units 9,226 9,962 876,010 1,024,835
Owner 1,330 1,078 404,652 419,801
Percentage 14.0 11.0 50.0 39.0
Renter 7,896 8,986 471,358 607,573
Percentage 86.0 89.0 43.0 56.4
Economics
Median Family Income 5,699 7,713 6,896 10,535
Median School Years Completed 12.1 12.3 12.1 12.4
Median Value Owner Occupied in $ 16,450 25,825 17,300 26,700
Median Rent in $ 77 105 78 114
Total Employed 9,370 9,113 126,276 1,150,796
Unemployed 900 912 6,914 86,802
Percentage 9.6 10.0 5.5 7.5
LANKERSHIM BOULEVARD & WHIPPLE STREET
(Valley Control Area)
Node Ci ide
Population 1960 1970 1960 1970
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Total Population 5,497 5,897 2,479,015 2,811,801
Black 9 2 334,916 503,606
Percentage 0.0 0.1 13.5 17.9
Spanish 100 439 260,399 518,791
Percentage 1.8 7.4 10.5 18.5
Median Age 42.1 41.6 33.2 30.6
Persons 0-17 1,106 1,091 756,640 849,246
Percentage 20.1 18.5 30.5 30.2
Persons 65+ 729 1,076 253,993 283,395
Percentage 13.3 18.2 10.2 10.1
No. of Husband & ~fe Families 1,371 1,301 545,109 553,564
No. of Unrelated Individuals 841 1,337 329,977 421,701
Average Household Size 2.36 2.11 2.77 2.68
Housing
Total Units 2,520 2,865 935,507 1,074,173
Singles 1,289 1,082 559,745 560,378
Percentage 51.2 37.8 59.0 52.0
Multiples 1,231 1,783 375,762 510,261
Percentage 48.8 62.2 40.0 47.4
Built Pre-1939 898 813 481,797 328,988
All Occupied Units 2,328 2,790 876,010 1,024,835
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Owner 1,076 989 404,652 419,801
Percentage 46.2 35.4 50.0 39.0
Renter 1,252 1, 801 471, 358 607, 573
Percentage 53.8 64.6 43.0 56.4
Economics
Median Family Income 8,086 13,154 6,896 10,535
Median School Years Completed 12.6 12.6 12.1 12.4
Median Value Owner Occupied in $ 22,350 37,700 17,300 26,700
Median Rent in $ 92 136 78 114
Total Employed 2,574 2,736 126,276 1,150,796
Unemployed 177 280 6,914 86,802
Percentage 6.9 10.2 5.5 7.5
HOLLYWOOD & WESTERN
Node Citywide
Population 1960 1970 1960 1970
Total Population 6,860 8,438 2,479,015 2,811,801
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Black 3 72 334,916 503,606
Percentage -- 0.1 13.5 17.9
Spanish 183 909 260,399 518,791
Percentage 2.6 10.7 10.5 18.5
Median Age 43.9 41.3 33.2 30.6
Persons 0-17 576 803 756,640 849,246
Percentage 8.3 9.4 30.5 30.2
Persons 65+ 1,158 1,644 253,993 283,395
Percentage 16.8 19.4 10.2 10.1
No. of Husband & Wife Families 1,306 1,408 545,109 553,564
No. of Unrelated Individuals 2,805 3,602 329,977 421,701
Average Household Size 1.76 1.62 2.77 2.68
Housing
Total Units 6,773 8,044 935,507 1,074,173
Singles 764 702 559,745 560,378
Percentage 11.3 8.7 59.0 52.0
Multiples 5,818 7,559 375,762 510,261
Percentage 85.9 94.0 40.0 47.4
Built Pre-1939 3,731 3,037 481,797 328,988
All Occupied Units 5,996 7,506 876,010 1,024,835
Owner 394 420 404,652 419,801
Percentage 6.6 5.6 50.0 39.0
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Renter 5,602 7,137 471,358 607,573
Percentage 93.4 94.4 43.0 56.4
Economics
Median Family Income 6,429 8,537 6,896 10,535
Median School Years Completed 12.5 12.6 12.1 12.4
Median Value Owner Occupied in $ 22,200 37,333 17,300 26,700
Median Rent in $ 92 123 78 114
Total Employed 6,535 6,745 126,276 1,150,796
Unemployed 481 575 6,914 86,802
Percentage 7.4 8.5 5.5 7.5
SANTA MONICA BOULEVARD & VERMONT AVENUE
Node Citywide
Population 1960 1970 1960 1970
Total Population 16,855 15,736 2,479,015 2,811,801
Black 510 1,287 334,916 503,606
Percentage 3.0 8.2 13.5 17.9
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Spanish 869 3,936 260,399 518,791
Percentage 5.2 25.0 10.5 18.5
Median Age 38.8 34.2 33.2 30.6
Persons 0-17 2,482 2,751 756,640 849,246
Percentage 14.7 17.5 30.5 30.2
Persons 65+ 2,830 2,432 253,993 283,395
Percentage 16.8 15.5 10.2 10.1
No. of Husband & Wife Families 3,343 2,720 545,109 553,564
No. of Unrelated Individuals 4,881 4,818 329,977 421,701
Average Household Size 2.04 2.01 2.77 2.68
Housing
Total Units 8,866 7,982 935,507 1,074,173
Singles 2,655 1,913 559,745 560,378
Percentage 30.0 24.0 59.0 52.0
Multiples 5,531 6,081 375,762 510,261
Percentage 62.4 76.2 40.0 47.4
Built Pre-1939 6,589 4,093 481,797 328,988
All Occupied Units 8,274 7,636 876,010 1,024,835
Owner 1,404 896 404,652 419,801
Percentage 17.0 11.7 50.0 39.0
Renter 6,870 6,748 471,358 607,573
Percentage 83.0 88.4 43.0 56.4
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Economics
Median Family Income 5,901 8,142 6,896 10,535
Median School Years Completed 12.2 12.5 12.1 12.4
Median Value Owner Occupied in $ 15,975 24,100 17,300 26,700
Median Rent in $ 76 103 78 114
Total Employed 9,073 6,528 126,276 1,150,796
Unemployed 595 465 6,914 86,802
Percentage 6.6 7.1 5.5 7.5
SELMA AVENUE & CAHUENGA BOULEVARD
Node Citywide
Population 1960 1970 1960 1970
Total Population 14,886 13,827 2,479,015 2,811,801
Black 43 342 334,916 503,606
Percentage 0.3 2.5 13.5 17.9
Spanish 840 1,822 260,399 518,791
Percentage 5.6 13.2 10.5 18.5
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Median Age 43.3 39.8 33.2 30.6
Persons 0-17 1,309 1,248 756,640 849,246
Percentage 8.8 9.0 30.5 30.2
Persons 65+ 2,896 2,712 253,993 283,395
Percentage 19.5 19.6 10.2 10.1
No. of Husband & Wife Families 2,406 1,876 545,109 553,564
No. of Unrelated Individuals 6,631 5,951 329,977 421,701
Average Household Size 1.68 1.60 2.77 2.68
Housing
Total Units 10,022 9,680 935,507 1,074,173
Singles 1,714 1,140 559,745 560,378
Percentage 17.1 11.8 59.0 52.0
Multiples 8,110 8,533 375,762 510,261
Percentage 80.9 88.2 40.0 47.4
Built Pre-1939 7,197 5,161 481,797 328,988
All Occupied Units 8,958 8,658 876,010 1,024,835
Owner 812 683 404,652 419,801
Percentage 9.1 7.9 50.0 39.0
Renter 8,164 7,965 471,358 607,573
Percentage 91.1 92.1 43.0 56.4
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Economics
Median Family Income 5,535 7,584 6,896 10,535
Median School Years Completed 12.2 12.5 12.1 12.4
Median Value Owner Occupied in $ 20,125 30,925 17,300 26,700
Median Rent in $ 80 111 78 114
Total Employed 8,112 6,990 126,276 1,150,796
Unemployed 998 943 6,914 86,802
Percentage 12.3 13.5 5.5 7.5
TUJUNGA BOULEVARD & VENTURA BOULEVARD
Node Citywide
Population 1960 1970 1960 1970
Total Population 17,544 11,599 2,479,015 2,811,801
Black 50 44 334,916 503,606
Percentage 0.3 0.4 13.5 17.9
Spanish 398 758 260,399 518,791
Percentage 2.3 6.5 10.5 18.5
Median Age 39.6 38.7 33.2 30.6
Persons 0-17 3,638 2,137 756,640 849,246
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Percentage 20.7 18.4 30.5 30.2
Persons 65+ 1,368 1,232 253,993 283,395
Percentage 7.8 10.6 10.2 10.1
No. of Husband & Wife Families 4,526 2,664 545,109 553,564
No. of Unrelated Individuals 3,100 2,832 329,977 421,701
Average Household Size 2.36 2.17 2.77 2.68
Housing
Total Units 8,110 5,529 935,507 1,074,173
Singles 4,520 2,716 559,745 560,378
Percentage 55.7 49.1 59.0 52.0
Multiples 3,590 2,813 375,762 510,261
Percentage 44.3 50.9 40.0'47.4
Built Pre-1939 2,058 1,009 481,797 328,988
All Occupied Units 7,548 5,367 876,010 1,024,835
Owner 3,904 2,463 404,652 419,801
Percentage 51.4 45.9 50.0 39.0
Renter 3,644 2,904 471,358 607,573
Percentage 48.3 54.1 43.0 56.4
Economics
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Median Family Income 9,956 15,672 6,896 10,535
Median School Years Completed 12.6 12.9 12.1 12.4
Median Value Owner Occupied in $ 23,700 39,650 17,300 26,700
Median Rent in $ 98 142 78 114
Total Employed 8,800 5,965 126,276 1,150,796
Unemployed 584 504 6,914 86,802
Percentage 6.7 8.4 5.5 7.5
HOLLYWOOD BOULEVARD & HIGHLAND AVENUE
Node Citywide
Population 1960 1970 1960 1970
Total Population 11,438 12,016 2,479,015 2,811,801
Black 38 326 334,916 503,606
Percentage 0.3 2.7 13.5 17.9
Spanish 357 1,509 260,399 518,791
Percentage 3.1 12.6 10.5 18.5
Median Age 44.5 41.0 33.2 30.6
Persons 0-17 832 970 756,640 849,246
Percentage 7.3 8.1 30.5 30.2
Persons 65+ 2,281 2,379 253,993 283,395
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Percentage 19.9 19.8 10.2 10.1
No. of Husband & Wife Families 1,718 1,606 545,109 553,564
No. of Unrelated Individuals 5,768 6,408 329,977 421,701
Average Household Size 1.57 1.56 2.77 2.68
Housin
Total Units 8,261 8,835 935,507 1,074,173
Singles 1,169 858 559,745 560,378
Percentage 14.2 9.7 59.0 52.0
Multiples 7,067 7,958 375,762 510,261
Percentage 85.5 90.1 40.0 47.4
Built Pre-1939 5,768 4,344 481,797 328,988
All Occupied Units 7,322 7,756 876,010 1,024,835
Owner 559 559 404,652 419,801
Percentage 7.6 7.2 50.0 39.0
Renter 6,781 7,197 471,358 607,573
Percentage 92.4 92.8 43.0 56.4
Economics
Median Family Income 5,792 7,510 6,896 10,535
Median School Years Completed 12.3 12.6 12.1 12.4
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Median Value Owner Occupied in $ 23,000 33,300 17,300 26,700
Median Rent in $ 85 117 78 114
Total Employed 6,469 6,177 126,276 1,150,796
Unemployed 861 878 6,914 86,802
Percentage 13.3 14.2 5.5 7.5
HOLLYWOOD BOULEVARD Sz GOWER STREET
Node Citywide
Population 1960 1970 1960 1970
Total Population 7,067 2,342 2,479,015 2,811,801
Black 9 53 334,916 503,606
Percentage 0.1 2.3 13.5 17.9
Spanish 292 311 260,399 518,791
Percentage 4.1 13.3 10.5 18.5
Median Age 45.2 37.3 33.2 30.6
Persons 0-17 567 227 756,640 849,246
Percentage 8.0 9.7 30.5 30.2
Persons 65+ 1,445 325 253,993 283,395
Percentage 20.4 13.9 10.2 10.1
No. of Husband & Wife Families 1,316 336 545,109 553,564
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No. of Unrelated Individuals 2,707 1,155 329,977 421,701
Average Household Size 1.74 1.64 2.77 2.68
Housing
Total Units 4,334 1,571 935,507 1,074,173
Singles 669 226 559,745 560,378
Percentage 15.4 14.4 59.0 52.0
Multiples 3,463 1,365 375,762 510,261
Percentage 84.6 85.6 40.0 47.4
Built Pre-1939 2,778 726 481,797 328,988
All Occupied Units 3,924 1,446 876,010 1,024,835
Owner 345 93 404,652 419,801
Percentage 8.8 6.4 50.0 39.0
Renter 3,579 1,353 471,358 607,573
Percentage 91.2 93.6 43.0 56.4
Economics
Median Family Income 6,102 8,515 6,896 10,535
Median School Years Completed 12.4 12.4 12.1 12.4
Median Value Owner Occupied in $ 21,750 27,600 17,300 26,700
Median Rent in $ 84 112 78 114
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Total Employed 3,885 1,430 126,276 1,150,796
Unemployed 380 148 6,914 86,802
Percentage 9.8 10.3 5.5 7.5
LANKERSHIM BOULEVARD & VINLAND AVENUE
Node Citywide
Population 1960 1970 1960 1970
Total Population 7,600 9,344 2,479,015 2,811,801
Black 1 0 334,916 503,606
Percentage 0.0 0.0 13.5 17.9
Spanish 263 146 260,399 518,791
Percentage 3.5 1.6 10.5 18.5
Median Age 41.9 38.7 33.2 30.6
Persons 0-17 1,551 1,697 756,640 849,246
Percentage 20.4 18.2 30.5 30.2
Persons 65+ 1,268 1,674 253,993 283,395
Percentage 16.7 17.9 10.2 10.1
No. of Husband & Wife Families 1,833 1,963 545,109 553,564
No. of Unrelated Individuals 1,325 2,521 329,977 421,701
Average Household Size 2.35 1.70 2.77 2.68
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Housing
Total Units 3,558 4,897 935,507 1,074,173
Singles 1,705 1,359 559,745 560,378
Percentage 47.9 27.8 59.0 52.0
Multiples 1,853 3,538 375,762 510,261
Percentage 52.1 72.2 40.0 47.4
Built Pre-1939 1,501 1,369 481,797 328,988
All Occupied Units 2,711 4,677 876,010 1,024,835
Owner 1,213 1,143 404,652 419,801
Percentage 44.7 24.4 50.0 39.0
Renter 2,098 3,534 471,358 607,573
Percentage 55.3 75.6 43.0 56.4
Economics
Median Family Income 6,690 9,471 6,896 10,535
Median School Years Completed 11.9 12.4 12.1 12.4
Median Value Owner Occupied in $ 17,800 25,450 17,300 26,700
Median Rent in $ 86 118 78 114
Total Employed 3,483 4,452 126,276 1,150,796
Unemployed 267 291 6,914 86,802
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0
7.7 6.5 5.5 7.5
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Page 1 of 13
Conducted by:
PLANNING DEPARTMENT
CITY OF PHOENIX May 25, 1979
ADULT BUSINESS STUDY
INTRODUCTION
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 area. 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 area of the City.
The Latter approach has resulted in the mart noteworthy problems. For instance, in Boston's
concentrated adult business area 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 Square, 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 year. Thus, up to 80% of the existing sex businesses were terminated.
In the Phoenix Zoning Ordinance an amendment concerning adult business became effective on
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November 8, 1977. It too is patterned after the Detroit model.
Briefly, the amendment in Section 417 states that:
1. No adult business is to be within 1,000 feet of any use in the same category.
2. An adult business is not permitted within 500 feet of a school or a residential zone unless
approved by City Council and area residents. A petition which is signed by 51 % of the
residents in the 500-foot radius who do not object 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 are direct impacts which uniquely
relate to this class of land use, and second, that there are indirect, but equally potent, attitudinal concerns
which result from proximity to an adult business. Examples of the former are possible traffic congestion,
unusual hours of operation, litter, noise, and criminal activity. illustrating the latter is substantial
testimony that has indicated that many neighborhood residents dislike living near an aria containing an
adult business. Also, financial institutions take nearby 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 areas or commercial districts containing adult businesses.
In this study a wilt show chat chars is a relationship between arrests for sexual crimes and locations of
adult businesses. This relation will correlate with concerns which have been expressed by residents of
nearby residential neighbor-hoods at the nature of crimes associated with adult businesses. Sex crimes
appear to generate substantial fears 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 desirability 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 areas were chosen -neighborhoods with adult businesses, and three control areas --
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 are
compared in each study and control area.
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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
based on information furnished by the Department and verified by the
Planning Department.
TABLEI
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THE STUDY AND CONTROL AREA LOCATIONS
STUDY AREA I CONTROL AREA I
Roosevelt Street -Oak Street Starting at 75th Ave, east on Osborn Road
16th Street - 32nd Street South on 35th Ave, west on Thomas Road,
South on 39th Ave, west on Roosevelt Street,
North on 43rd Avenue, west on McDowell
Rd, and North on 47th Ave, to the point of
Beginning.
STUDY AREA II CONTROL AREA II
Oak Street. -Osborn Road Osborn Road -Campbell Avenue
32nd Street - 40th Street 32nd Street - 40th Street
STUDY AREA III CONTROL AREA III
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Avenue -Campbell Avenue
19th Avenue -~ 27th Avenue 27th Avenue - 35th Avenue
Avenue -Campbell Avenue Missouri
Figure: 1, shows the boundaries of the three study and control areas.
Study Area I contains two square 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 characteristics of Study and Control Area I are listed below in Table II.
(Appendix III provides a more detailed process of how this data was derived.)
TABLE II
POPULATION CHARACTERISTICS OF STUDY AND
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CONTROL AREA I
Non- Building/ Income Media Age Land Use
White
1950-1970 CommerciaUResidential
Study I 24% 57% $7,675 29 31% 69%
ControlI 24% 93% $9,885 26 38% 62%
The only substantial population characteristic differences in these two areas are in the age of homes built
between 1950 and 1970. The concentrated adult business district has a little over half of its homes built
after 1950. Whereas the control area has almost 93% of its housing built altar 1950.
Study Area II is one square mile on the east side of the city, and contains only one adult business within
the square mile, at 3640 East Thomas Road. Its control area is to the north side at the Study Area.
The comparison of population characteristics are shown in Table III.
TABLE III
POPULATION CHARACTERISTICS OF STUDY AND
CONTROL AREA II
Non- Building/
White
1950-1970
Study II 7.4 88.0
Control II 4.4 92.5
Income Media Age Land Use
Commercial/Residential
$10,779 36 18% 82%
$12,013 38 11% 89%
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Study Area III also contains one adult business at 2103 W. Camelback Road. It is one
square mile
located on the west side of the City. Its Control Area is directly to the west. The comparison
of
population characteristics are shown below:
Non- Building/
White
1950-1970
Study III 8.2 83%
Control III 8.8 93%
POPULATION CHARACTERISTICS OF STUDY AND
CONTROL AREA III
0
TABLE IV
Income Media Age Land Use
Commercial/Residential
$9,829 29 29% 71%
$10,559 28 28% 72%
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CONCLUSIONS
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 areas 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 area:
TABLE VI
CRIME RATES AS A PERCENTAGE OF STUDY AREA TO CONTROL AREA
Study Area Property Crime Violent Crimes Sex Crimes Sex Crimes -
(Less 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 compared to the Control Areas.
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On the other hand there is an average of six times the sex crime rates in the Study Areas as
compared with the Control Areas. Although the majority of sex
Table V Property Violenk and Sex Crimes in Selected Study Areas-1978
was derived from information provided by the City of Phoenix Police Department' a Crime Anal r~ unit and Planning and Research Bureau. The data from these two
sections is compiled by adding the number type of crimes committed in police grids, which are quarter mile neighborhoods. Crimes aze based on arrest records and do
not reflect ultimate convictions. It has been assumed that conviction rates will be proportional to arrest rates
crimes are Indecent Exposure, 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 exposure crimes were committed on adult business premises. An example of this finding
is in Study Area I. In that location, 89% of the reported indecent 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. Similarly, when compared to its Control Area, the sex crime rate, per
1,000 residences is over 11 times as great in Study Area I. In the remaining study areas, which each
contain a single adult business, their rates are four and almost three times as great.
APPENDIX I
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ESTABLISHMENT OF STUDY AREA BOUNDARIES
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.
3. Preliminary decision was made to choose three study areas 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 square miles.
APPENDIX II
ESTABLISHMENT OF CONTROL AREA BOUNDARIES
The process of defining the Control Area boundaries was conducted in the following manner:
1. Identification of potential control areas based on the absence of adult businesses.
2. Delineation of possible Control Areas equal in size to the Study Areas.
3. Determinative of population and. land use characteristics of each possible control area
using the same weighted proportionality method used for the Study Areas (See Appendix III
for Population Characteristics 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 characteristics listed in Appendix III.
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APPENDIX III
METHODOLOGY OF WEIGHTING POPULATION CHARACTERISTICS
OF STUDY AND CONTROL AREA
The characteristics used in weighting the similarities between the Study and control areas 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)
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0
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~! ~ `~ -
us. o.o.~+~~ a .w.ae. ,
M.tton.t a ,lu~lte~
The doatNn~n1 hu ti~Ni rproduerd gaefly at nCwvrd trOm tfi~
p~sOn Or or~nit~Man OrigMt~llq M. roNMi d v~y 0-OpflNOns A~IW
ih If+is 1loeum~nl w those d 11M authors ane do not rq~aarMy
rapsum h~ dndar pennon a polWa d Mrs WatlOnal InoYlub d
.lus~~-
Psmrlaaion to rsbrodua aw ooprr+~taa nratarlal her baarr
gnntad by
Minnesota Crim~~x ven en r~===. Inc;
Mar19a McPhersonyx~~~{vid niTO..for
m tM Natlorral C+MNrM1.IwYa. Ratanncs Stirvioo (NCJR~,
Furtlw rapratluCYOn oubide of yN NCJR8 ayaam raquYaa parmla
>arr a a,. ~pr~ owner.
An Analysi^ o! the Belatianahip Between
Adult Entertainment Establishments Crime,
g.nd Housfng Valucts
Submitted to the Consumer Services Committee
Minneapolis City Council
by
Zlarlye McPherson
Executive Director
and -
Glean Sillaway
Research Associate
The Minnesota Crime Prevention Center, Inc.
121 East Franklin Avenue
Minneapolis, Minnesota 55404
October, 1980
Copyright ~ 1980
~S~' ~ ~.
- ~- t~
~~ (i' t
No part of thin publication may be reproduced without prior written
peratiasion from the Minnesota Crime Prevention Center, Inc.
~ ~
An An~ alysfs of the xelatioa~ets+een eldult
Entertairwent Establishments, Crime, ana housing Value3
Table of Contents
- Page
Preface ............................................................ 1
L hAPT!•:R 1 - DARS A1tiL Ck I I•lE ....................................... . . 3
Section A -General Relationship hetsreen Tlars and Crime..•...... 4
1. Introduction: The Kesearct~ 4uestion ..................... 4
2. Pethodology .............................................. 4 •
3. Analysis and Findings..•••••••••••-•••••••••••••••••••••• $
4. Summary: General Relationship Between bars and Crime.... 1S
Section 8 - The Effect of Changing the Liquor Patrol Limits:
Nev bare and Crime .............................................. 16
1. Introduction: The Eesearch question ..................... 16
2. Methodology .............................................. 17
3. Analyaie and Findings .................................... 19
4. 5uauaary Findings ......................................... 24
Section C - Characteristics of "fiuisaaee" Sara .................. 25
I. Introductioa: The Research question ..................... 25
1. Methodology• ............................................. ZS
3. Analysis and Findings.........•••....•.•.•••••.••••..•.•• 29
4. Summary of I'findings ...................................... 34
C11AI'TEk II - ADULT Lh~EkTAI1~NT ESTABLISHMENTS A1vD
NEIGhBORttOOD UET>rkIOTsATIOIi ......................................... 35
Introduction .................................................... 36
Sectioa A - Policy Issues ................................... ... 38
Section if -The kesearch Design ................. ................ 42
1. Introduction: The Research 4uestion ..................... 42
2. Variables and Vata Sources ............................... 44
3. Level of Analysis ........................................ 49
Section C - Analysis and >:Endings ............................... 50
1. Simple gelationatiipa ..................................... SO
2. Complex kelationahips.•...•.••••••••••••••••••••••••••••• 52
3. Tests for LinearitY•••••••••••.••.••••.••••.•••••..:.•.•• G7
4. Causal Analysis .......................................... (,7
Section L -Summary and Conclusions ............................. 73
CiiAPThx III - hf1YIRICAL P1NLI1rGS ANif kULICY RLCUCU.k:t.UATiur:S ........ 75
APPlraOl?~ A - Supplementary Eiaterials for Cl-al,ter 1:
bars and Crime ....................................... A-1
A1'Pl:lrDla B - supplementary ?iaterials for {:liapter I1:
Adult >:ntertainnent and i;eigt:borhood Getzrioration... Js-1
3
An Analysis of ttie kelationsiiip Between Adult
Entertainment Establishments Crime and l~ousin Values
Yrefacs
This study examines two separate but related issues: 1) the
relationship of bars to crime, and 2) the impact of adult entertain-
meat establishments un neighborhood deterioration.
The first issue is specific in its focus and is limited to studying
the impact of alcohol-serving establishments on crime in the immediate
geographical area (a six-block radius) around the bar. This relation-
ship between bars and crime is analyzed in three sections in the first
chapter of this report. These analyses investigate:
1. The beneral relationship between bare and crime, taking type
of neighborhood into account;
2. The effect of eliminating the liquoc patrol limits in 1974;
and
3. The characteristics of "nuisance" bars as cowpared with
"son-nuisance" bars.
The second issue is broader, and more complex to answer. The
study looks at all adult entertainment establishments saunas,
rap parlors, adult theaters, etc., in addition to bars. It examines
their relationship to neighborhood deterioration as measured by crime
and housing value. For this part of tt,e study, "neighborhoods" are
defined as census tracts. Other factors affecting neighbarhaod
deterioration are controlled for in order to measure the independent
effects of adult entertainment establishments. The research questions
involve establishinb whether or nit there is an association between
adult entertainment and neibhbort~ood deterioration at tltr census tract
1
3
.-` r...
level, and then determining Whether the evidence supports the hypothe-
sis that adult entertainment rates neighborhood deterioration.
Tha second chapter of the report presents the analysis of these
issues in four sections:
1. A swnmary of the policy issues that ,aotivate the study,
2. The research questions and study design derived to investigate
these policy issues,
3. Tha analysis and results of Che study, and
k. The summary conclusions.
This study was commissioned by the !'iinaeagolf,s City Council in
winter, 19$0 to provide some empirical basis for policy decisions
regarding the licensing and zoning of adult entertainment
eatabllshments. The research questions were derived through
discussions with the members of the Council's Consumer Services
Committee, and with members of the committee appointed to assist the
research, including John Berggaist, manager of the Uapartment of
Licenses and Consumer Services, Roges Montgomery of the Police
Inspection L'nit, and nary Wahlatrand of the City Attorney's office.
lrumerous oti~er city employees were generous with their time and help-
ful in their suggestiuna.
2
~.
CWIPTER I
BARS Ai~L CRII-~
5
Section A
tieaeral Relationship Between Bars and Crime
1. Ineroductioa: The Research uestion
The hypothesis investigated in this section is that bars are
significantly associated with crime. This portion of the study
examines the general association of bars to crime as well as the
association of certain types of bars to crime, while eontralling for
neighborhood setting. The general hypothesis in this context can be
reinterpreted ss specific research questions:
a. Are selected crimes distributed non-randomly in areas
surrounding bars as a group? llo they cluster around bars?
b. L'o these distributions provide evidence of an association
between t~e_s of bars and crime, i.e., do the crimes tend to cluster
around the various types of bars?
c. Igo these observed diatributiona change when controls (factors
other than bars or crimes) are taken into account?
Z. Methodolo
a. Variables and Uata Sources
The major independent variable is all licensed alcohol-serving
(on-sale) establishments in Fiinneapolis. This variable is measured by
identifying the location (address} of each bar. The license cate-
gories established by the city --- beer, wise, or liquor bars, and
Class A, b, or C entertainment -- are subdivisions of the independent
vasiable and are considered separately in some analyses below. Bars
are also classified into two categories according to tha volume of
food service business they do.
The data source for identifying bar locations vas the records of
the License L'epart:aent of the City of AiinnEapolis. Accordinb to these
4
records. there were 2U3 liquor licenses. 21 wine licenses, and 143
beer licenses issued in 1979. teach of these businesses is also
licensed for a certain entertainment level. The data source for
classitying bars according to volume of food businesss were the
observations of members of the License Department and the IKinneapolis
Police lepartment. 215 of the 367 licensed establishments could be
classified in this way. The remaining 152 bars are dropped frog any
analysis based on food categories.
The dependent variable is the density of crime in areas
surrounding the bars. The crimes that are measured for the analysis
are street robbery and assault. These crimes are reasonable in that
we mibht expect to find a relation between alcohol consumption and
these personal crimes. No theory connecting crime and drinking in
public places exists, buc we have sufficient experience with the
effects of alcohol on aggressive behavior to make the connection. In
addition, berg serve as gathering places where outbursts of a$8ression
have handy targets. Finally, neither observed relationships (as in
the adult entertainment portion of this study, which shows a Iow
overall relationship between bars and residential burglary, for
example) nor logic argue for the inclusion of other crimes. One
important candidate may be vandalism, but reported vandalism rates are
so unreliable by present meaaureaent techniques that it could not be
included.
Crime counts were made at the address level using the offense
report data automated through the ttinneapolis Police bepartment's
Integrated Criminal Apprehension Progra~u (1CAP). These counts were
aggregated into frequencies for each crime and for each area
5
7
surroundinh a bar ~.,.,r a one-year period from -lay 1F~~79 to April 30,
198U. Assaults and street robberies sera considered both separately
and tobether in various analyses.
Finally, the analysis takes into account tltie type of neigi~borhood
as a control variable. "I~leighborl-ood" is here defined as a census
tract, and it is measured by the percent of owner-occupied homes by
tract. It was necessary to use the census tract as the unit of
measurement for this variable because the address level data necessary
to construct the exact distance decay areas was not available at an
affocdable price. Percent owner-occupied, taken from the 1970 census,
is known to be hibhly related to other indicators of socio-economic
status such as income, and in addition it is believed to indicate in
some degree the important properties of stability and salience of
neighborhood identity on the Bart of residents. The actual measure
used is a Z-score, dividing the variable into three categories {lov
-.5 standard deviations or less, medium ~ -.5 to .5, high ~ .S or
greater).
b. Unit of Analysis
The units of analysis are the areas around each bar, and the sub-
divisions of that area. These units of analysis are not existing
civil divisions, like census tracts, but rather are created by spe-
cialized processing software which uses the address level crime data
provided by iCAi' to first aggregate the data into uniform areas around
each bar and then perform standard analyses on the densities of crimes
found in these areas for each bar or group of bars. This technique is
known as distance decay analysis.
6
Distance decay analysis determines the debree to which crime is
uniformly distributed geographically about a particular site. Where
crime is not uniformly distributed around a site but displays a pat-
tern of being densely distributed near the site and gradually becoming
less dense as di~atance from the site increases, then it may be the
case that the site is associated with crime. There are three taste to
determine whether a site is atatiatically associated with crime:
1. Is a distance decay curve present, that is, does the density
of crime decrease as we move away from the site?
2. Ia there a significant chi-square statistic demonstratins that
the areas around sites vary from normal densityl
3. Is there a significantly negative slope to the curve as
measured by a signs teat?
Only if all three tests are positive do we consider a site associated
with crime. Thus, this study uses a conservative test in order to be
confident that the relationship between crime and bars actually
exists.
The sub-areas constructed around esch bar by the distance decay
softwace are nix approximately concentric rings of I/10 mile in width
each, for a total area with a 6/LO mile radius.l The technique com-
pares the proportion of the total crimes in each ring to the propor-
tion of land area within each ring to get a measure of the density in
crime in each concentric ring. these measures (six for each distance
decay) are then tested by the three tests outlined above to sea if the
density of crime is non-random and if it is concentrated at the middle
of the area (the "node") where the bar is.Z
1The technique is most easily described with concentric rings ae~ tfie
units of analysis. The actual unit of analysis used in this study was
city-blocks.
ZSee Appendix A.L for a further description of distance decay
analysis.
.~
R
.~
3. Analysis and Findia$s
a. Are selected crimes distributed non-randomly in areas
surrounding bars as a group? Uo they cluster around bars?
1 his aaalysis looks at the beneral association between bars and
selected types of crima. Separate distance decay analyses were per-
formed on the 367 bars and a summary analysis was prepared for all
bars. This was done for each of the crimes separately and for the two
cri~aes combined.
The summary aaalysis of bars and assaults in Figure I.1 demonstrates
a classic distance decay curve. As caa bQ seen in Figure I.1, as
distance from the bar increases the deasity of assaults decreases.
Both tha chi'square and the signs test ara significant. As a group,
bars in Minneapolis are significantly aseaciated with assaults. This,
of course, does sot mean that every bar is associated with assault. -
Figure I.l
Distribution of Assaults Around Bars
3
2
Relative
Crime
Density (1t.C.i,.)
1
a
x2 2325.b Sig. .OS Slope ne6ative .03
b
k1
(Listance in tenths of miles from bar)
The association of Minneapolis bars and street robbery is
demonstrated in-yigure I.2. Once again, there is a fairly strong
distance decay curve which indicates a concentration of street robbery
around bare that.. decreases as distance from the bar increases. Both
tt-e clti-square and the signs are significant. In general, bars in
linneapolis era significantly associated with street robbery.
Figure I.2
Distribution of Street kobbery Around Bara
3
2
Relative
Grime
Lensity (kt.C.l). )
1
0
(Distance in tenths of miles from bar)
X2 ~ 1968.4 sig. U5 Slope negative .03
Because bass sre associated with both assaults and street robberies
separately, we may expect that they will be associated with the two
crimes combined. This is the case as presented in Figure I.3. Again,
tiie chi-square and signs test are both significant. It is the case
that bars are associated with the crimes of assault and street robbery
both separately and combined.
9
yigure I.3
Distribution of Assaults and Street Robbery Around Bars
. 3
2
i~ela t ive
Crime
Uenaity (~t.C.D.)
1
0
x2 ~ 4122.0 Sig .05 Slope negative .03
b. Lo these distributions provides evidence of an association
betwaen types of bars and crime, i.e., do the criuss tend to cluster
around the various types of bars? L'o these observed distributions
changs when controls (factors other than bars) are taken into account?
Despite the relationship between bars and crime in general, it is
quite possible that this relationship does not exist for some cate-
gorses of bars but does hold for others.
Bars are licensed according to the type of alcohol allowed to be
served. The city has three categories: liquor, beer (3.2), and wine.
The level of entertainment allowed in a licensed establishment also is
licensed by the city and is used to categorize bars. There are three
classes of~entertainment defines by license categories: "C" (juke
boxes, machines, T.V.); "B" (single performer plus those permitted
under "C"), and "A" (live bands, shows, dancing, plus those permitted
under "L'" and "C").
10
la
(vistance in tenths of miles from bar)
In addition, tYse city staff expressed interesC~sn the effect of
volume of food business on crime. The assumption to be tested is that
bars with loner food volume have lower associations with crime than
bars with greater food volume. the twa categories of food volume
era: high ~ Yraater than 50 percent food; low ~ less than SO percent
food volume. This section looks at bars and their association with
crime in each of these three categorizations: alcohol, entertainment,
and food.
Because many other studies on crime have found that the type of
neighborhood has a great influence on crime, it was decided to add
neighborhood type as a control variable. Therefore, the study analy-
zes the relationship of all barn with the selected crimes while
controlling fox the environment in which a bar exists.
(I) 21ars by sub-type and crime
Summary distance decays were run for each of the six license cate-
gorses of bars, plus two categories of food volume in the businesses,
measuring the density of the combined crimes of assault and street
robbery.l The reaulta of these eight summary distance decays are
reported in t~igure I.4.
4fine and Class 9 entertainment tiara, and bars which have more than
50 percent of their total volurse in food service do not show signifi-
cant associations with the distribution of the selected crimes in the
surrvuadiag areas. All other categories do exhibit significant
1Separate analyses for each crime were gerformed, but the results
were similar and therefore the combined measure was used.
11
13
Figure I.4
Distribution of Crime Around Bars by Categories of Bars
Liquor_Type
3 !r ~ 143
R.C.L. 2
1
Distance -->
Beer
3 N Z1
1;.C.D.1 /I~~
1
Listaace --~
Wine
3 N=203
R.C.D. 2
1
Distance -->
Liquor
Entertainment Type Food Volume
3 N = 264
K.C.U. 2
1
Distance -->
3 Iv=108
R.C.D. 2
1
Distance -->
Class G
Entertainment
3 N ~ 13
R.C.D, 2 /~
I
Listance -->
Class B
Entertainment
3 N = 90
R.C.L'. 2
1
Distance -->
Class A
8ntertainment
Less Than
SUk Food
3 N = 107
R.C.D. 2
1
Distance -->
More Phan
SOX Food
*These distance decay curves are significant according to the three
teats outlined in the text.
tendencies toward clustering around the bars as types.l In the cases
of wine and Class H bars, these results raay be due to the spatial
1The results for wine and Class H bars may be questioned by some
because of the small number of bars in those categories. however, ttie
technique aggregates the number of crimes in surrounding areas to l;et
a density measure, and it would be sensitive to low ~; if the number of
crimes in a ring were small. In these caseac, all rings in the aggre-
gated measures count over several hundred crimes (some crimes are
counted more than once), so the number is aaequate.
12
1~
distribution of the bars in the city and the way ttie distance decay
technique aggregates events within these distributions. Wine bars
are else bars with high food volume which may in fact account for a
lover crime asaociatioa. Class 8 bar effects cannot be accounted for
in any simple way by the kind of entertainment permitted since bars
with both fewer (Clara C) and more (Class A) entertainment options are
significantly associated with crime.
(2) Crime around bars controlling for neighborhood type
Kiguce I.S reports three summary distance decays for all bars within
the three types of neighborhoods as identified by percent owner
occupied housing.
Figure I.5
Uiatribution of Crime Around all bars Within Types o~f Neighborhoods -
Low Owner Moderate Owner High Owner
Relative
Crime
1lensity
Occu ied Uccu ied OCCU ied
~i~236 h~ti4 Ns42
* * *
Distance Distance distance
*Indicates significant distance decay.
As Figure I.5 shows, the measured densities of the crimes of assault and
street robbery are signficantly associated with t1-e location of bars
in all three types of nei~;hborhooda.
13
~~
~-
This finding is especially interesting in the cases of the
moderate and high owner occupied neighborhoods where the possibly con-
founding impact of~the downtown beta has been eliminated. The law
owner-occupied cell contains all of the tiara from the downtown area
where few people own the homes thsy live in. This concentration of
bars may exaggerate the impact of barn on crime because we know that:
1) assaults and street robberies are concentrated in highly commer-
cialised areas, such as the Central Business District, which suggests
that the observed relationship between bars and those crimes may be
due to some characteristic of the commercial area other than bars, and
2) the aggregating cechaique used in the distance decay analysis over-
weights crimes around extreme clusters of bars, such •s is found
downtowa.
however, these considerations are not present in higher owner-
occupied neighborhoods, which tend to be lower crime areas and removed
from concentratioas of tiara like that found in downtown. The fact
that a greater density of crime around bars remains in these areas
gives us somewhat more confidence that the finding of a relationship
between bars and crime really exists. Concentrations of bars or the
fact thst bars are in commercial zones still could be confounding
these results. but this is substantially less likely when the downtown
bars ors eliminated from the analysis.
14
J~o
4. Summar Ganeral gelationshi Between Bars and Crimea
What is the general relationship between bars and crime? roes the
relatioaship hold when other variables associated with crime are
controlled?
a) An aggrebate analysis of all 367 bars in :linneapolis shows
that bars as a group are associated with the Crimea of assault and
street robbery. r
b) This relationship between bars and the selected crime types
semains when type of neighborhood (as measured by percent ovner-
occupied housing) is controlled.
c) liars whose food volume accounts for over 5u percent of total
volume, bars with wine licenses, and bare with Class B entertainment
licenses are not associated with the crimes of assault and street
robbery.
lAddltional distance decay results shoving groups of bars cross-
classified by type of license or food volume and type of neighborhood
are provided in Appendix A. Those results support the ones reported here.
15
~7
Section 8
.,_.~-
The Effect of Chan in the Li uor Patrol Limits:
New Bars and Crime
1. Introduction: Tlie Research uestion
Liquor patrol limits Nava had a long and controversial history in
hinneapolig. Initially established in 1St37, the patrol limits
restricted liquor licenses to be located within certain boundaries.
The original liquor patrol boundaries were drawn closely around the
central city so that Minneapolis Police liepartment foot patrolmen
could reach the ends of tha limits. (An indication that the presumed
relationship between bars and crime is indeed an old idea.) There
were several unsuccessful attempts during the 1950's to extend the
patrol limit boundaries, with the issue ultimately bound up with the
larger issue of the economic and physical redevelopment of the down-
town areal City voters finally approved a charter amendment to
extend the patrol Limit boundaries in 1959.2
The liquor patrol limits continued to be a political issue
throughout the 1960'x. In 1974, voters approved a charter amendment
abolishing the liquor patrol limits altobether. The restriction that
on-sale liquor establishments can be located only in seven-acre
1Many groups argued that the narrow confines of the patrol limits
would guarantee that another skid row would develop, similiar to the
one along 4lashin~;ton Avenue that was cleared in the 1950's and that
resulted in many liquor licenses being forced to relocate. Therefore,
one of tha principal arguments was to extend the limits to peewit a
wider dispersal of the bars.
2Tha boundaries in efrect after 1959 extended the patrol limits to
Prankiin on the soutt~, Lyndale on the west, Broadway ou the north and
the hissiasippi hiver on the east, along with a section in hartheast
p,inneapoiis along Gniversity Avenue.
~16
~O
~.
commercial zones remained in effect, however. As a result of
Kinneapolis' liquor licensing restrictions, major portions of the city
remained without liquor bars until 1914 (with the exception of several
"distressed" licenses issued outside of the limits}.
Une of the purpose' of this study is to examine the effect on crime
of the 1974 rescission of the liquor patrol limits. If bars are asso-
tinted with higher incidences of certain kinds of crimes, as has been
hypothesized, then one would expect to find significant increases of
crime around those liquor bars established outside the old patrol
limits.
2. Methodology
a. The Research Design
In order to anaver the quastioa about the effect on crime of the
elimination of the liquor patrol limits, "before" and "after" analyses
of the amount and distribution of the crime of assault ware conducted.
The logic of the design is illustrated below (Figure I.6).
Figure I.6
Before and After Research Design for Assessing
Impact of Abolishment of Liquor Patrol Limits
8afore
(One year period,
July 1, 1974 -
Juae 30, 1975)
Amount (number) of
aaaau~ts within
six blocks of the
site
Distribution of
trims as indicated
by distance decay
analysis of
sites
Introduction of
a bar to the
site
Introduction of
a bar co the
site
17
After
(One year period,
Play 1, 1979 -
Ap ril 30, 1980
Amount (number) of
assaults within
six blocks of the
bar
Listribution of
crime as indicated
by distance decay
analysis of
sites
As indicated, the deaibn looks at crime in areas outside the
patrol limits before new liquor licenses were established and then
compares it with crime after Chose liquor licenses have been in
existence for a period of time. An area with a radius of six blocks
around each new bar site was selected for the unit of analysis. This
is the same unit as was used to examine the general relationship
between bars and crime. If those liquor licenses granted after 1974
have an effect uppon crime, it would be expected that the amount or
distribution of crime (or both) around thoar sites would change
between the two time periods.
b. The Data
Bars located outside the old liquor patrol limits were identified
by mapping the 1980 liquor licenses and identifying bars located out-
side the boundaries in effect in 1974. The City License staff then '
provided the dates on which licenses were granted for these locations.
A total of twenty-three bars were identified that met the following
criteria: 1) had been granted licenses at locations outside the
patrol limits after the 1974 change, and 2) existed before the 1979
data collection period. A list of these bars can be found in
Appendix A.
The crime variable used in this analysis was number of assaults
reported to the Police Department.l As suggested previously, the
1The general relationship between bars and crime was explored
using data on assaults and street robberies. The same definition of
the dependent variable, crime, would have been used for this analysis
except that address-level data on street robbery was unavailable for
the 1974-75 period. But, as the previous analysis indicates, both
assaults and street robberies shuw similar patterns.
18
fh~
hypothesized relationship between bars and the crime of assault is
supported on logical grounds. The data on assaults comes from two
sources. For the "before" period, crime data for July 1, 1974 through
June 30, 1915 was taken from the Crime in Minnea olis study in which
address-level crime data was coded from police offense reports.l The
Minneapolis Police Lepartment's ICAP (Integrated Criminal Apprehension
Program) system provided data for the "after" time period of May 1,
1979 through April 30, 19~iU.
c. The Analysis
In order to test the hypothesis that oa-sale liquor licensee
granted outside the old patrol limits are associated with a dispropor-
tionate increase in crime, both the number of assaults and the distri-
bution of assaults within the six-block radius area of each of the 23
neW liquor license sites were analyzed for the two time periods.
Distance decay analyses were performed to analyze the distribution of
crimes in the areas around each of the sites. For a complete
discussion of the distance decay technique, see Appendix A. If the
distribution of crime around the sites changed significantly during
the five-year period, one would expect to find a random distribution
of assaults in 1974-75 (as indicated by the distance decay curve) and
a non-random distribution (i.e., a significant chi-square and negative
slope in the distance decay curve) for the 1979-80 data.
3. Analysis and Findings
a. Amount of Crime
The results of the comparative analysis {1974-75 to 1979-b(i) of
the number of assaults in tl~e imotediata vicinity of the 23 liquor
1D. Priabia, et al., Crime fn Minnea olis, F:innaapolis: Hlinneaota
Crime Prevention Center, Inc., 19
ly
~I
licenses granted outside the old patrol limits does not show an unex-
pected increase. That is, on the average, assaults in the areas
surrounding these sites did not increase at a greater rate than for
the city as a whole. These results are presented in Table I.1. In
general it cannot be said that the introduction of bars into new areas
of the city resulted in an increase in the amount of crime (assaults)
in those neighborhoods, although this was true for some particular
bars.
Table I.1
Comparison of the Number of Assaults, 1974-75 to 1979-80
Percent
Chanste
Areas surrounding the
23 new liquor license 2,124* 2,384* +12X
sites
Minneapolis city-wide ~ 4,156 ~ 5,614 ~ +3SX
totals
*Note that the crimes counts in the cells for the
1974-75 and 1979-8U new liquor licenses are not actual
crime counts for those areas, but reflect the aggre-
gating procedure used by the distance decay technique.
The percent change for the new licenses can be com-
pared to the percent change for the city as a whole.
The temporal change within a raw is also a valid
comparison, as the areas are the same at both times.
b. Uiatribution of Crime
Comparative analysis of the distribution of assaults within the
six-block radius area surrounding the 23 new liquor license sites
sugCests an apparent tendency toward a greater concentration of
assaults in the immediate one-block area where the bars are located.
As Table I.2 illustrates, in 1974-75 none of the sites had significant
distance aecay curves (defined in terms of a significant chi-square
l U
and a significant negative slope). In other words, the assaults did
sot cluster around the sites, but were mar8 randomly distributed
throughout the area. In 1979-8U, however, six of these sites had
significant distance decay curves, and an additional seven sites
showed an increased concentration of assaults within the block of the
bar although the iacreases were not sufficient to achieve
significance.
Table I.2
Comparison of Distance Decay Analyses of New
Liquor License Sites, 1974-75 to 1979-b0
1974-75 1979-80
Number of ~ignifieant*
Distance Lecay Curve 0 6
Analyses for the 23
sites
*Significant chi-square at .OS level and significant negative
slope.
Table I.3 provides additional confirmatioa of a greater con-
centratioa of assaults within the immediate block where new liquor
licenses are located. AB this Table suggests, while the increase in
assaults for the six-block areas where the 23 new licenses are located
{12 percent) wss less than the city-wide average (~5 percent), the
percent increase in assaults within one block of the bar sites was
considerably higher (69 percent).
21
~~
Table I.3
Change in the Distribution of Assaults Around
haw Liquor License Sites, 1974-75 to 1979-80
Percent
1974-75 1979-80 Chan a
liumber of assaults within
one block area of the 23 110 18b +69X
aew liquor license sites*
Number of assaults within
six-block radius area of 2,124 2,384 +12X
the 23 new liquor license
sitas*
tiinneapalis city-wide 4,156 S,bl4 +35X
totals
*l~lote that the crime counts in the cells for the 1974-75 and 1979-80
new liquor licenses are not actual crime counts for those areas, but
reflect the aggrQgating procedure used by the distance decay
technique. The percent change for the new licenses can ba compared t
the percent change for the city as a whole. The temporal changes
witt-in rows are valid as the areas are the same at both times.
Finally, a comparison of the summary distance decay curve for the
23 sites in 1974-75 to the summary curve for those same sites with
liquor licenses in 1979-80 shoos that the concentration of assaults
within the first .1 mile band has increased significantly. The reia-
tive crime density for the first .1 mile band has increased from 1.86
in 1974-75 to 2.81 in 1979-8U. This comparison is illustrated in
Table I.4.
22
2~
Table I.4
Comparison of Summary Listance Decay Curves
1974-75 to 1979-SO
3
2
Relative
Crime
vensity (x.C.v.)
1
a
- - - - 1974-75
1979-HU
(Distance in tenths of miles from bar)
The x2 for both curves is significant at .001 level;
both curves have significant negative slopes
From these results we may conclude that although there was some
change in the amount and distribution of crime around some of the bar
sites, in general the introduction of bars is areas outside the liquor
patrol limits has not had the effect of increasing the amount of crime
in the neighborhoods around these sites. However, there was a fairly
uniform effect of increasing the concentration of assaults within one
block of the bar sites. This indicates that bars may have an affect
on crime, but the area is beographically limited to the immediate
surrounding area. It may be that groupings of bars (concentrations)
have a wider range effect on distribution of crime, but we were unable
to test this hypothesis given the limited number of such con-
centrations among the new licenses issued.
23
2S
-J
4. Summarx Findings
What is the effect on crime of the 1974 rescission of the liquor
patrol limits2
a. Twenty-three liquor licenses were granted outside the old
liquor patrol limits between 1974 aad 1979. An analysis of the num-
bers of assaults in the areas surrounding these sites shows that, on
the average, assaults did not increase at a greater rate than for tt~e
city as a ktiole.
b. In general, there was an increased concentration of assaults
within one block of the bar sites where liquor licensee were granted
outside the patrol limits.
24
7/
Section C
Characteristics of "~iuisaace" Bara
1. Introduction: the liesearch Question
There are a Wombat of bars in Minneapolis that generate "nuisances"
and crime-related problems for the citixena of the city. These
nuisances are in the form of relatively minor crimes such ae
vandalism, noise, litter, and discomfort of local residents. Yet,
nuisance situations often are more obvious to citizens ana cause them
morn concern and worry than serious crimes, such as assault and
robbery. Although this was sot part of the contract, aevaral city
officials expressed interest in knowing whether bars which generate
nuisance situations differ systematically from bars which do not
~enerata nuisances. If there are systematic differences between
nuisance beta and son-nuisance bars, are these differences
controllable through licensing restrictions? A third purpose of this
portion of the study was added: to conduct some preliminary and
exploratory analyses of the characteristics of nuisance-generating
bars.
2. Methodology
a. The Research Lesign
llembers of the City staff and the City Council suggested a number
of factors that could be important in explaining why some bars
generate nuisance situations and others ao not. The factors suggested
included: 1) the volume of food business, 2) proximity to a primarily
reaidantial area, 3) the type and availability of parking,l 4) the
1City staff and Council members expressed concern that bars that do
not have off-street parkinb can create nuisances. It is assumed that
customers parking in front of houses ana in front of other businesses
create conflict situations which result in disturbances and nuisances.
't 5
`.J'7
.`.
type of entertainment,l 5) the type of liquor license, 6) the type of
cli:ntale, and 7) bar management practical. The data on the first six
of these characteristics was collected through on-site observational
visits to a sample of 40 Minneapolis bars.2
The researc2f design la based o:: comparing two samples of bare, 20
bars identified as generating nuisances and 20 non-auiaance bars, on
the six characteristics identified above. Although nuisances often
result in calla-for-service to the police, at present the Minneapolis
Yolica vepartment does not have an automated record keeping system for
these calls that provides easy access to this data. Because the city
has tens of thousands of calls each year, a study of all bars and
their relationship to nuisances was outside the scope of thin study.
Instead a sample of bars believed to generate nuisances and a eavple
of bars that do not ware selected for the comparative analysis.
A chi-square statistic was used to determine if there was a
statistically significant difference between the two samples of bars
on the characteristics.
Members of the Minneapolis City Council were asked to identify
bare in their wards which ~yeaerata complaints to their offices as well
as to identify "exemplary" bars. Members of the Police License
Inepectioa Unit ware asked to identify bare in these two categories as
well. From those nominations, 20 bare from each type of bar {nuisance
and non-nuisance) were selected from their nominations. A list of
lkntertainment at a bar has been cited as a potential source of
nuisances because of the number and type of people it attracts.
2Given the observational method selected and the relatively short
time spent at each bar, we were unable to collect data on the variable
of management practices.
26
~A
~.
the 40 bars included in the two samples can be found in Appendix A.
On-site observations using a structured data collection instrument
wars made at the 40 bare by PiCPC, Inc. staff. A copy of the data
collection instrument used is also included in Appendix A.
b. Definition of the Variables and Data Sources
(l) Volume of food. The 40 bars were categorized according
to whether their food business constituted over 50 percent of their
g rose business sales. ~ioat of this data came from the Police
Inspactioa Unit with supportive data from on-site observation.
(2) Proximity to residential neighborhood. The bars were
categorised according to their proximity to residential areas using
the following classifications: 1) within a block, 2) between one and
two blocks, and 3) greater than two blocks distance. The data was
collected by on-site observation.
(3) Type and availability of parking. The sampled bare were
categorized according to the type of parking available for their
customers: I) street parking only, 2) metered street parking,
3) other parking lots available in the vicinity, and 4) the bar
provides its own adequate-sized parking Iot. The data was collected
through on--site observation and inspection.
(4) Type of entertainment. The 40 bars were categorized two
different ways according to type of entertainment. The first category
consists of the types of entertainment license issued to bars by the
City's Licensing Lepartment: Class C, Class b, Class A (see p. lU
above for a discussion of these classifications). The second category
is the type of entertainment actuary present (as opposed to that for
wi~ich they were licensed). baseG upon the on-site observations. The
27
~q
categories used were the following: 1) none, 2) single performer, and
3) band (and/or major disco-type sound system).
(S) Type of liquor license. The City issues liquor licenses
based upon the type of alcohol which can be served. There are three
classifications:. 1) beer (3.2 alcoholic contest), 2) wine, and
3) liquor. There are very few wine licensee in Minneapolis and
neither of our samples included any bars with wine licenses, so for
this portioa of the study the two remaining types of alcohol were
used: L) beer, and 2) liquor.
(6) Type of clientele. The city has little direct control
over the type of clientele a bsr attracts; thus, this aspect of bars
is not directly affected by city policies. Although the analysis of
clientele may be interesting, the value to policy makers may be quite
limited.
The factors describing clientele included age, class, residence
anct social pattern. Infarmatioa about these variables was collected
by on-site observation and was analyzed. Aa mibht be imagined, the
measurements on this set of variables were subject to considerable
error. Since only one visit was made to each bar, and the measura-
manta were taken according to the judgments of one observer, the
results obtained were considered to be too unreliable. Therefore.
they are not included in Chia report.
(7) Gama rooms. Although information on game rooms was not
a part of the original data collection instruaent, this information
waa collected. The criteria used to classify bars on whether or not
they lead a game room was: 1) the games constituted a clearly defined
2b
,~
area of the establishment, and 2} the games were air'important attrac-
tioa for the bar. Bars with one or two machines were not classified
as having a gamma room.
3. Analysis sad Findings
a. Volume of Food
r
The data on the relationship between volume of food and type of
bar (nuisance or non-nuisanca} is presented in Table I.S.
Table I.S
Relationship of Volume of Food Business to Type of Bar
Less Than More Thaa
50X Food 50X Food
buiaance Bars
HonrKuisaace Bars
69X (20 OX 0
31x ( 9) 100X (11)
Total 100X (29) 100X (11)
xz - 15.172 ldf
sig. .001
As this Table indicates, none of the bars with over 50 percent food
bw iness were nuisance bars, while the majority of the bars with low
food volume tended to be nuisaace bars. This difference is atatisti-
rally significant. It suggests that if a bar does a large volume of
food business it is less likely to generate nuisances than i# it does
a small volume of food business.
b. Proximity to kesidential neighborhood
Table I.6 shows the results of the analysis for the relationship
between proximity to residential neighborhood and type of bar.
29
.~/
Table I.6
Relationship of "Proximity-to-Neighborhood" and Type of bar
~ruisance tiara
r
Non-Nuisance liars
Nithin
1 block
1-2 blocks 2 or
more
a3X (10) 22x (2) sax (~)
37X ( 6) 78X ( 7) 47X ( 7}
Total 100X (16) lOOX (9) 100X (ls)
x~ ~ 3.844 2df
sig. .15
The results are more aabiguous than was the case for volume of
food. Althou~,h there is a tendency for bars closer to residential
areas to be nuisance bars. this result is not statistically signifi-
cant at a level which justifies reaching general conclusions.
c . Type sad Ayailabilit~- of Parking
The results of the analysis of the relationship between the type
of parking available and type of bar are shown in Table I.7.
Table I.7
ltelatioaship between Type of Parking Available and Type of Har
Nuisance Bars
hon-t+uisance ]Ears
Street Meter Other Lot Own lot
69X (9) 33X (1) 71X (5) 29X ( s)
~1X {4) 67X (2) 29X (2) 71:C (I2)
Total lOUX (13) 100X (3) 100X (7) lOUX (17}
x2 ~ 6.424 3dt
sig. .1V
3U
These results are ambiguous, but the tendency exists for nuisance bars
to rely on street parking, while non-nuisance bars tend to have their
own lots. These results are Significant at the .10 level.
To carry the analysis further, a comparison was made between bars
that have their own lot available and those that do not (i.e., they
rely on all other types of parking). This involved combining the
first three categories. The results of this comparison are clearer
and statistically significant. Table Y.$ indicates that bars without
their om lots are much more likely to be nuisance bars, while bars
with their own parking lots era less likely to be associated with
auisancas.
Table I.8
Relationship Betweea Ownership of Larking Lot and Type of Bar
Nuisance Bars
Non-Nuisance Bsrs
Other Parking
Facilities $ar
awns Lot
65X {15) 29~ { 5)
35X ( 8) 71X (12)
Total laUX (23) 100X (17)
x2 5.013 ldf
sig. .OS
d. Type of Entertainment
Usinb the first definition of this variable, type of entertainment
license issued by the City, the results in 'fable I.9 are obtained.
31
.~
Table I.9
Relationship Between Type of Bntertainaient Licence and Type of Bar
Nuisance bars
Non-i~luicance Bars
Total
- C B A
53X (l0) 33X (1) 50X ( 9)
47X ( 9) 67X (2) 50X (9)
100X {19} 100X (3) lOUX (18)
x2 ~ .38b 2df
no sig.
As this table indicates, there is not a cigaificant relationship
between the type of entertainment license a bar has and whether or not
it is a nuisance bar.
When the alternative entertainment classification scheme (observed
type of entertainment) is used, the results are slightly different.
These results appear in Table 1.10.
Table I.10.
Relationship Between Observed Type of Entertainment and Type of Bar
Nuisance 13ara
NotrNuisance Hars
Total
None Sin le Band
44X (12) 25X (1) 78X (7}
56X (15} 75X (3) 22X (2)
1GOX (L7 ) 100X (4 ) lOUX (9 )
x2 4.iI1 2df
sig. .11'L
32
This data shows some tendency for the bars with higher levels of
entertainment to be associated with nuisance bare, but thin is not a
statistically significant finding.
e. Tvoe of Liquor License
Table I.il contains the data on this variable and its association
with whether or not a bar is nuisance-generating.
Table I.11
Relationship Between Type of Alcohol and License and Type of Bar
Nuisance Mara
tJon-Nuisance Bars
Beer Li uor
33X (2) 53X (18)
67X (4) 47X (lb)
Total 100X (ti) 100X (34)
x2 .784 ldf
no sig.
According to these results from the sample of bars, the type of liquor
license a bar has is not related to whether or not it geaerates
nuisances. bars with one type of alcohol license are not more likely
to be nuisance bars than bare with another type of license.l
f. Game Booms
Table I.12 shows that the rtelationship between game rooms and type
of bar is significant. Bars with game rooms are more likely to
generate nuisances than bars that do not have game rooms.
iThe sampling procedure Hakes this rrsult dubious since the city-
wide distribution of beer licenses versus liquor licenses is 143 ver-
sus 203, quite different proportions than b versus :34.
33
3s"
Table 1.12 `~
Kelationship between Game Rooms and Type of Bar
Nuisance bars
Non-Nuisance Bass
Ho Game Room Game Room
32X ( 8) 84X (12)
68X (17} 20X ( 3)
Total 100X (25) 100X {15}
x2 ~ 8.640 ldf
sig. .Ol
4. Suamary of Findings_
Are there any systematic, significant differences in the charac-
teristics of bars which benarate crime-related nuisances when compared
to bars that do not generate nuisance complaints?
a. Bars which do less than 50 percent volume of business in food
tend to be nuisance bars.
b. There is no statistically significant relationship between a
bar's proximity to a residential neighborhood and whether or not it is
a nuisance bar.
c. Bars which do not have their own parking lots tend to be
nuisance bars.
d. Bars with a higher level of entertainment (e.g., bands) tend
to be nuisance bars, but the finding is not statistically significant.
e. There is no relationship between the type of liquor license a
bar has and whether or not it is a nuisance bar.
f. Nuisance bars are more likely to have game rooms than are non-
nuisance bars.
34
ChAPTER II
ADULT EDiT~.kTAINMI:PiT ESTAbLIStdtkNTS AND
NhIGIlBOltI~UOL DETERIORATION
35
3~
-' Yntroduction `-"
The general purpose of this section is to examine the impact of
adult entertainment establishments on neighborhood quality. Tlie study
is empirical, and uses statistical techniques to examine the rela-
tionships between concentrations of adult entertainment establishments
and measures of neighborhaod quality. Un the basis of this analysis
of data, inferences about whether adult entertainment establishments
are associated with neighborhood decline and whether the establish-
ments fallow or precede neighborhood decline can be made.
The concerns represented here ara neither unique to E~inneapolisl
nor sew to the city.2 There is widespread recognition of the impor-
tance of the use of city policy to encourage healthy, viable
neighborhoods, and there is a suspicion that adult entertainment
businesses -- tiara, saunas, adult bookstores, and the like -- may be '
undesirable in such neighborhoods.
'two fairly common measures of neighborhood quality are used is
this report: the crime rate, and a measure of housing value. While
neither of these measures is perfect, each of them embodies real con-
terns of residents of the city. These measures consistently reflect
our intuitive ideas of a "good" neighborhood; that is, relatively high
quality housing (as reflected in housing value) and low crime rates
are better than low quality Dousing and high crime.
1See, for example, City of Loa Angeles, "Study of the Effects of
the Concentration of 6.dult Entertainu~ent tstablishrsents in the City of
Los Ani;eles" (Loe .'~ngeles: Department of City Planning, 1977).
ZFor a nunLer of years the city has attempted variuus approaches
to controllinb the effects of adult entertainment. The liquor patrul
limits, zoning re~;ulatiuns, licensinb of saunas, and so forth, ara all
part of this cfforc.
36
38
In this study "Adult entertainment establishments" include all
types of alcohol serving establishments, plus businesses which commer-
cialise sax -- saunas, "adult" theaters and bookstores, rap parlors,
aad arcades. The various combinations of these establishments will
be considered for their impact on the measures of neighborhood
quality. They are considered the independent variables.
Tha entire analysis is this report is conducted at the level of
the census tract. All of the measures used here were available at
that level or could be easily aggregated to that level. The census
tract is not necessarily the best level of analysis for all the pur-
poses of this study, but the others are either impractical due to cast
or availability. For example, block-level analysis is possible given
available data, but the cost of acquiring that data and tannins analy-
aQS on about six thousand cases was prohibitive in this study. Though
there are problems with the census tract level of analysis, it is a
common and useful way to measure phenomena that are of interest at a
geographical area larger than the site.
The remainder of Chia chapeer is divided into four sections.
Section A summarizes the policy issues that motivate the study.
Section B than Eives the empirical research queatians to be examined
here that follow from these policy issues. This second section
briefly reports the research design followed in answering the research
queatians. Section C provides the results of the study in written and
tabular foroi. Section D is a summary of the study results in light of
the policy issues identified in Section A. Appendix B describes and
justifies the methods used in this portion of the study.
37
Section A
Policy Issues
The central issue is whether the city can and should use its
zoning and licensing powers to regulate the concentration and com-
binations of adult entertainment establishments. It has been well
established in law that zoning is a valid use of the state's police
power to protect the "health, safety, morals and general welfare" of a
community.l Likewise, the licansing function is an established way to
regulate the existence and condition of a business. The more narrow
question is whether these powers can be exercised to regulate adult
entertainment without infrinsing on other guaranteed rights of
proprietor: and customers, such as the First I-mendment right to free
speech.
In Young vs. American Mini Theaters, Ine.,2 the Supreme Court
held that a Letroit ordinance that caused the dispersal of adult
theaters from certain other "regulated" land uses, including adult
bookstores and theaters, and on-sale liquor establishments, was
constitutional,. It was held that, in principle, the ordinance did not
deprive proprietors and customers of tha right to distribute or con-
sume certain ideas, specifically those with explfcit sexual content.
Further, the particular limits placed on adult businesses by the law
were seen as justified by a "compelling state interest" to preserve
the city's neighborhoods. The ordinance represented a rational
1VillaSe of buclid V. Awbler Realty Co., 271 L.S. 365, cited
in Fredric a. 5tro~u,Lonin• Control of Sex Businesses (hew fork:
Clark boardroan Co., Ltd., 19 ), p. 21
24'17 U.5. SU
3b
~~
response to the problem of neighborhood decline based on the testimony
and evidence of expert witnesses.l
The conditions laid down in Young vs. American Mini Theaters are
narrow, and the legal issues are co~oplex. It is not the intention of
this report to enter the legal thicket in search of optimum solutions.
the relevant point raised by the L'etroit decision is that one of the
conditions that moat be satisfied to sustain the use of zoning powers
to regulate adult entertainment businesses is that there must be a
demonstrable public interest to be served by such regulation. Among
the considerations raised by the Young case are the concerns that a
concentration of adult entertainment businesses in a neighborhood may
have an adverse effect on property values, result in an increase in
crime, or undermine the stability of businesses and residents in the
area. These are aeon; the concerns that era empirically examined in '
this study, as indicated by the primary measures of relative neigh-
bortsood deterioration, housing values and crime rates.
This study looks at the effects of both sexually-oriented and
alcohol serving adult entertainment establishments on neighborhoods in
Minneapolis. Alcohol-serving establishments and movie theaters are
subject to both licensing and aonin~y restrictions, while many sexually-
oriented businesses are subject only to zoning restrictions (as of
July 1, 19b0).~
llbid.
2l.icensinb of certain sexually oriented businesses, e.b., saunas
and rap parlors, lies proved difficult since the licensing can be
avoided simply by ehan~ing the ostensible purpose of the business.
Also, several past atterupts to use license violations to revoke
licrnses have been challenged successfully in court.
ay
t~l
Liscussions with (:ouncil members and City staff produced several
specific policy questions that can be pursued in this research:
1. vo different .tomes of alcohol-serving establishments have
different impacts on neighborhoods?
'l his is a complex question since City (;ouncil and License Staff
members have raised numerous ways to classify bars. The legal
definitions embodied in licensing requirements are included in the
classification scheme, used here, e.g., liquor, wine, or beer, class
A, b, or C entertainment. A further consideration raised is the
exteat to which a business is based on serving food and hose this may
alter the effects of the establishment on the neighborhood.
2. llo particular combinations or concentrations of adult
entertaicunent establishments have particular impacts on neighborhoods?
This question asks whether the location of adult entertainment
establishments in clusters will have different or greater impacts on
neighborhoods than will similar establishments separated by a signifi-
cant amount of distance. As of July 1981, the zoning code will regu-
late sexually-oriented busineasea•ta 5U0 foot intervals between them
and with 500 foot intervals between the businesses and other priority
uses like residences or churches. One assuaption in the regulation is
that concentration of these establishments will exacerbate their nega-
tive impacts on neighborhoods. This assumption requires empirical
support.
3. Hoes the location of a bar or sexually-oriented business in
an area red cede the decline of a neighborhood or does it follow it?
Zhere is soice evidence that adult entertainment businesses
locate in areas that are already in decline, or perhaps are undergoing
rapid change in character with relatively few stable residents or
40
~~.'
businesses. The problem then is to determine if adult businesses
further or contribute to the cycle of decline that is already in
existence. -
Given the severe limitations in the quality and availability of
data on naighborjioods for most years, some of these policy questions
are very difficult to answer. llowever, they can be translated into
research questions that can be investigated empirically. There can be
no absolute certainty in answering questions of this sort, but
information can be produced that will place policy decisions on firmer
grounds .
41
~!3
Section B
----------
The Kesearch Design
The policy concerns expressed in the previous section must be
translated into research questions amenable to appropriate statistical
techniques. This section discusses the research questions identified
above and provides an outline of the techniques used in answering
them.l
1. introduction: The Research (question
a. Are t1-e location and number of adult entertainment
eatablishmenta and the various sub-types within this general category
associated with measures of neighborhood decline?
This portion of the research utilizes simple correlation analysis
to establish whether or not adult entertainment establishments of
various types are empirically associated with measures of neighborhood
deterioration at the census tract level.
b. Do these relationships between adult businesses and
deterioration change after controlling for the impacts of other
variables known to be associated with deterioration?
If the the simple relationships described in a. are established,
it is reasonable to ask if they remain after the effects of other
variables that may be associated with neighborhood decline are
controlled. Two related statistical techniques are used in this por-
tion of the analysis. First, the simple correlations are re-analyzed
while "holding constant" some other variables thought to be related to
the measures of neighborhood quality. becond, multiple regression
analysis is perfortued to determine if any or all combinations of the
adult entertainment estabiisl~ments are associated with measures of
l~iethodological issues and discussion of the choices of
techniques arz curtained iu dppenaix 8.1.
4;c
neighborhood quality when considered together with other control
variables. The regression equations permit some estimate of the
impacts of aduls entertainment establishments on neighborhoods in com-
ap rlson with other variables, using, the regression coefficients.
c. Uoea a concentration of these establishments have a
disproportionate impact on neighborhood decline? That is, are the
observed relationships non-linear?
The relationship established in a. and b. may ceveal that
changes in neighborhood deterioration increase at a greater or lesser
rats khan increases in the concentration of adult entertainment
establishments. If this is the case, the relationships are
non-linear, and it may be possible to identify the point at which
further increases is the concentration of adult uses will have dispro-
portionately great impacts on surrounding areas. The simple rela-
tionships are tested using oae-way (bivariate) analysis of variance
techniques to identify significant departure from linearity. The
multi-variate regression analyses are tested through examination of
residuals.
d. Igo the relationships observed in the data, either over
time or cross-sectionally, permit the inference that adulk entertain-
ment establishments precede or accelerate nei~yhborhood decline?
For policy coacerna, it is important to determine whether adult
entertainment establishments precede or follow neighborhood
deterioration. This will be impossible to prove empirically.
However, circumstantial evidence can be developed which is consistent
with our suspicions about neighborhooa decline. In the present case,
the statistical techniyue of path analysis is used to determine
whether adult businesses precede or follow sisns of deterioration.
We hypothesize that deterioration does follow the location of suct,
43
businesses, (in the sense that adult businesses contribute to the
existing cycle of decline in the neighborhood), even though it rsay be
the case that adult businesses are attracted to areas already in the
process of dacline.(the businesses follow decline}.
It is also possible co examine hypotheses about causal rela-
tionships using longitudinal data. Observations of actual changes in
variables over time were made, comparing 1979 to 1970 measurements,
but these observations were unsatisfactory due to measurement error
and lack of sufficient data points. Therefore, these cross-time
measurements and the analyses of them are not reported in this
document.
Z. Variables and vats Sources
Numerous data sources were used to obtain measures of the many
variables used in this study.l Measurements were taken at two points
in time for as many variables as possible. Generally, the years for
which measurements are available are 1970 and 1979, although some
variables were measured for different years if data was not available
for one of these years. These can best be discussed as independent,
dependent, and control variables.
a. Independent Variables
The independent variables are alI on-sale liquor serving
establishments of all types and classes, plus aexuaily-oriented
businesses.
(1) On-sale liquor establishments - Establishments may
be licensed to sell beer only, wine and beer, or liquor, wine, ana
IAppendix 8.2 contains a complete Iist of variable names and
their~deacriptions and/or measurement.
44
'~/(o
beer. We will refer to these simply as beer, wine, or liquor. Wine
licenses are issued to businesses whose total volume is expected to be
at least 6U percent food service. These businesses also obtain dif-
feresnt types of licenses depending on the kind of entertainment pro-
vided on the site. As discussed in Chapter I, a Class C license per-
wits only juke boxes, machines, T.V. and the like. The Class B
license permits a single performer to play as iastrument, plus the
entertainments permitted under the C license. The Class A license
permits any of the entertainment allowed under the first two licenses,
plus live bands, show', dancing, and so forth. Table II.I shows the
numbers of bars in each category for 1974 aad 1979, excluding the
downtown tracts.l
Table II.I: Number of Bars by Category, 1974 and 19792
Class A 1570
Class B
Class C
Class A 1979
Class B
Class C
beer 10 3 I75 5 2 128
Wine* 0 0 4 1 0 17
Liquor 28 3 58 47 3 62
Total 38 6 233 53 S 207
*"Wine" was not a license category in 1970.
1Downtown tracts 45, 46.01, 4b.02, 44, 47, 53, and 54 were eli-
minated from most analysis because they are not, properly speaking,
residential areas. There are numerous households in the area, but the
predowinance of commercial and other non-residential uses, combined
with the high concentration of adult businesses. distorts the analysis
performed here. See Tables II.7 and II.B for some results including
downtown.
Counts hers differ from those in the previous section because
downtown tracts are excluded. The 1979 citywide total, including
downtown is 367. In this study, the total is 265.
45
~7
(2) Adult sexuall -oriented businesses - These businesses
include adult (x-rated) movie theaters, adult book stores, saunas and
rap parlors, plus bars which provide live sexually-oriented
entertainment. The 19b0 data is comylete, but information on sexually-
oriented businesses that were not licensed in the period around 1970
(a.g., sexually-oriented entertainment in bars) cannot be reliably
measured at this point and were omitted from the analysis.
Table II.2 provides counts of these businesses for 1970 and 1979,
again omitting downtown.
Table II.2: Number of Sexually-Oriented Businesses by Category,
197 and 1979
1970 1979
Saunas, etc.* 11 14
Adult bookstores UPiK 7
Adult theaters 1 6
bars with sexually-
oriented entertainmen UNK 5
License records are available beginning with 1973.
The source for saunas and theaters are License Department records
for the different years. Complete up-to-date counts of these busi-
nesses plus adult bookstores, rap parlors, and so forth, were also
obtained from the Uffiee of the zoning Administrator. Bars with live
sexually-oriented entertainment in 1979-19fS0 were identified by qem-
bets of the Minneapolis Police Department and License Department
staff.
b. Dependent Variables
1'he main dependant variables used in this study are wean Housing
value and an index of crirse rate per 1,ODU population, at the census
4G '
tract level. These variables are generally recognized to be good
indicators of neighbort-ood deterioration.
(1) Housing value -For 1970, mean housing value is the owner
estia:ated single-family housing value in the 1970 census, averaged for
each tract.
For 1979, the mean housing value is the average assessed value of
the single family housing in each census tract. The Property
Management System of the City of Minneapolis is the source of this
information.
Thou~,h neither of these measures perfectly reflects the arm's
length market value of housing, each should provide an unbiased esti-
mate of housing value in each tract fos that year, thus producing
valid measures of variation from tract to tract.
(2) Crime rate - Adequate census tract level data on crime
rates is not available for 1970. the substitute measure used here is
an index of crime using data from a one year period extending from the
middle of 1974 to the middle of 1975. This data was collected by
staff of the tlinnesota Grime Prevention Center as part of a study of
crime in btinneapolis.l
Crime data for 1979 and 19tf0 was collected from the files of the
Minneapolis Police Department's Integrated Criminal Apprehension
Prograa, for which the riinnesota Crimc Prevention Center provides
technical assistance. A crime index was constructed from this data
using commercial robbery and burglary, residential burglary, personal
robbery, rape and assault. Tha index is an a~,gregated tract-level
measure of the number of crimes per 1,000 population.
1Doublas U. k'risbie, et al, Crime in rlinnea olis, Finneapolis:
liinnesotx Crime Prevention Center, Inc., 19
47~
Tl
rinally, other measures of neighborhood quality were considered
for inclusion in the list of dependent variables, including measures
of commescial vacancy rates and area condition estimates. Some analy-
sis was performed using these variables, and will be reported where
appropriate.
c. Control Variables
Certain third variables believed to have an impact on neighborhood
quality were also measured for 197u and 1979. These variables are
usad in the analysis to determine the extant to which the associations
of adult entertainment establishments with neighborhood quality are
actually due to the control variables rather than the independent
variables themselves. It is poQSiblo that both Lhe location of adult
busiassses and the level of housing value or crime rate are caused by
some third variable. Control variables can be held constant with sta-
tistical techniques to see how the variables of major concern are
related when the controls can no longer make a difference.
Statistically speaking, these variables are used to identify spurious
relationships or to help confirm the effects of an independent
variable. Because a large number of these third variables are used,
the data sources and variable definitions will be presented only in
summarized fashion.
{1) 1970 Lata - The major sources used for measuring 1970
control variables were the 1970 census and the Poik Company's
Minneapolis City Uirectory. Tract level measures of neighborhood
characteristics like residential stability and percent of owner
occupied dwellings were taken from the census. The Polk directory
provided information on commercial structures in 1972.
48
yinally, other measures of neighborhood quality were considered
for inclusion in the list of dependeat variables, including measures
of cocsaercial vacancy rates and area condition estimates. Some analy-
sis was performed using these variables, and will be reported where
appropriate. r
c. Control Variables
Certain third variables believed to have an impact on neighborhood
quality were also measured for i97u and 1979. These variables are
used in the analysis to determine the extant to which the associations
of adult entertainment establishments with neighborhood quality are
actually due to the control variables rather than the independent
variables themselves. It is possible that both the location of adult
busiaesses and the level of housing value or crime rate are caused by
some third variable. Control variables can be held constant with sta-
tistical techniques to see how the variables of major concecn are
related when the controls can no longer make a difference.
Statistically speaking, these variables are used to identify spurious
relationships ar to help confirm. the effects of an independent
variable. Because a Iarge number of these third variables are used,
the data sources and variable definitions will be presented only in
summarized fashion.
(1) 1970 Data - The major sources used for measuring 1970
control variables were the 1970 census and the Pvlk Company's
Minneapolis City directory. Tract level measures of neighborhood
characteristics like residential stability and percent of owner
occupied dwellings were takrn from the census. The Polk directory
provided information on commercial structures in 197.
48
(2) 1979 Uata - The 1979 data was obtained from several
sources. data on residential units, including age, type, condition,
number, gross building area, lot size, and tax status (i.e., homestead
or not) wets collected from the Property Management 5yatem.l
The bulk of ,zhe commercial property descriptions were taken from
the Yolk city directory for 1978. In additioa, estimates of 197~i
household income and tract populatioa were taken from Polk data.
Measures of household occupancy and turnover rates were taken from
the Minneapolis quarterly report on vacancy and turnover for Jaauary
1, 19b4 to March 31, 1980 produced by the Minneapolis Planning
Uepartmant. The original source of this data was the NSP billing
tapes.
3. Level of Analysis
All variables havs bees measured at the census tract levels. This
means that observations for a given variable have been aggregated
within a tract for the appropriate time period, and a summary measure
produced. For example, the measure of all alcohol serving businesses
for 1979 is a count of all types and classes of otr sale licenses
issued by the city for that year, by census tract.
1Prograraming and tape creation for P~15 data wets parformed by
the Gity's llanabement Information Service.
49
5~
Section C
~--
Analysis and Findings
1. Sim le kelationshi s
- Are the location and number of adult entertainment establish-
ments and the various sub-types within this general category
associated with measures of neighborhood decline?
Based on previous related research and discussions with interested
persons, we exgected to find that a high concentration of such busi-
nesses is associated with as increased crime rate and decreased
housing values.l The simple correlation coefficients confirm these
expectations.
Table II.3t Es~gblishmenteaandnMeasuresiofttreighborhoodt{~ualityen1979
Mean Crime Rate
' Fiousin Value 1979 Iadex, 1979-80
2
- .I 26
A l e u t s neases
Sexually-oriented businesses .
-.1533* .2440*
Alcohol-serving businesses -.1208
e .13ti0
1683'
-.2531 .
Beer .1079 -.G441
Wine
.0267 .0760
Liquor .0584 .0405
Clara A -.Ob91 .2415*
glass B -.1409 .1421
Class C
Correlations are signif icant at the .OS lev el or better.
As Table I1.3 shows, several categorise of adult businesses have a
statistically significant relationship with the measures of neigh-
boyhood deterioration. Concentrations of sexually-oriented businesses
and beer bars show r~slatively stronL relationships with both housing
value and the cricue rate in the expected directions.2 The
15ee Asinnesota Crime Prevention Center, "t:eigtlborhood Deterioration
and the Location of Adult hnt~crtaincnent Establishments in St. Paul,"
t-linneapolis: FICrC, Inc., 197ts.
See Appendix B.1 for a breakdown of the crime rate into four of
its component crimes :snd their associations with adult escablishmeats.
SO
~'
relationship between the location of adult entertainment businesses
and crime is generally stronger than that between these businesses and
housing value. 'Most of the observed correlations are very weak.
The relationships in Table II.3 vary among the sub-types of adult
establishments: ~ some of the types are more closely related to the
neighborhood variables than others. It is possible that these dif-
f erences are-due entirely to differences between the types of
establishments, but that seems to be only a part of the issue. It is
likely that other variables are affecting the relationship.
Included among these other variables, the effects of city policy
business decisions, and the general environment of the adult business
are likely to make a difference in the way the business is related to
housing value and crime. The classification of the businesses that is
used here already reflects the licensing procedures of the city, but
other policies, especially zoning regulations, may have an impact.
Zoning regulations affect the size and type of commercial area within
which different types of adult businesses may locate, with possible
coasequences for their impacts on neighborhoods. One business deci^
aion that Council members suggested might affect an establishment's
relationship with crime and housing value is the proportion of the
business that is devoted to food service. Businesses that are
actually restaurants that happen to have alcohol licenses may be dif^
ferent than those that are primarily beta. The residential environ-
went of the adult business may be characterized by many variables that
could have an impact.
In this study, these concerns are weasured and taken into account
throubh the use of statistical controls. The zonfng policy issue. is
51
summarized in a measure of the proportion of commercial units found in
each tract. The restaurant vs. bar distinction is based on a measure
of the proportion of a business that is food-related, with those that
are hreater than 50 percent food considered primarily restaurants.l
The residential 'environment is characterized by a measure of average
household income in a census tracC. Income is very highly related to
other measures of residential area type.
The simple relations between these control variables and the types
of adult entertainment establishments suggest that they might make a
difference in the relationships between types of adult busiaesaes and
crime or housinb value.z The next section presents soave analyses that
explicitly use these control variables to examine the relationship
between adult business and neighborhood deterioration more closely.
Summary Findings: Simple izelationshipa
(1) Concentrations of beer licensed bars and sexually-oriented
businesses are significantly related to lower housing values. Most
types of adult businesses are negatively related to housing values,
even if they are not significant.
(2) A sumoary measure of alI adult businesses, sexually-oriented
businesses, beer and Class 8 entertainment licensed alcohol-serving
businesses are significantly related to high crime rates. All but one
type of adult business are positively related to the crime rate.
(3) Overall, the relationship between adult business con-
centrations and neighborhood deterioration measures are weak.
1. Complex kelationahips
- Lo the observed relationships change after controlling
for the iml,acts of oilier variables known to be associated with neigh-
borhood quality?
1lieinbers of the Police Department and the f.icensinb staff
supplied the list of licensed establishments that are primarily in
food service.
~Se.: A~penaix b.l for a presentasion and discussion of these
results.
5;
This section is in tWO parts. the first part presents first
order partial correlations between concentrations of adult businesses
and measures of•neighborhooa quality, controlling for the policy rele-
vant variables of food percentage of business and commercial ct-arac-
teristics of bar.iocationa, in addition to controlling for the effects
of type of residential area on the relationships. In the second half
of this section, even more stringent statistical testa are reported
which permit an estimation of the amount of impact of various tom-
, binations sad concentrations of adult businesses on neighborhood
quality, while simultaneously controlling for the effects of other
variables-
a. Partial Correlation
Table II.4 shows how the simple relationships between adult enter-
tainment establishments and neighborhood quality measures change when
the effects of other variables that measure important policy and
environmental factors are controlled.
The partial correlations in the third and fourth columns of Table
II.4 show the effects of controil3ng for food business on the rela-
tionships between adult entertainment business types and the neigh-
borhood deterioration measures.l Bara that are devoted primarily to
servinb alcohol era more strongly related to lower housing value and
higher crime rates. i:ith the effects of restaurant-type businesses
removed, more of the relationships are significant, and nearly all of
them are in Che direction expected, i.e., concentrations of bars
ISexually-oriented establishments and ali adult business partial
correlations artl not rc~,ort~d i« this case because tl~ece is no indica-
tion that sexually oriented businesses serve food.
53
are associated With lower property values and higher overall crime
rates- Liquor bars and Class C entertainment licensed bare, is
particular, are significantly related to crime and/or housing value
when food business is controlled.
Table II.4: Partial Correlation Coefficients:
' Adult Entertainment Eatablishmente
and Neighborhood 4uality, 1y79
Simple
Correlations
Partial Control
for food Partial Control
for Percent
Commercial Partial Control
for Mean
Income
house Crime house Crime house Crime house Crime
Value Index Value Index Value Index Value Index
All adult -.1320 .1926* - - -.0707 -.0147 .0738 -.0861
Sexually-
oriented
-.1533
.2440e
-
-
-.1415
.2314*
-.1089
.2153'
Alcohol
serving
-.1208
.13bU
-.2b65*
.1751*
-.U405
-.0700
.1023
*
-.1398
Beer -.25sl .i683* -.2254*
* .1618* -.2423e
* .1418
* -.2436
* .6879
2034*
-
wine .1079 -.U44I -.2800
* -.0029 .1627 -.2154 .2219
* .
11sS9*
-
Liquor .0267 .0760 -.1592 .1639 .1022 -.1482 .2254
e .
1975*
Class A .OS~i4 .0405 -.1137 .0645 .1191 -.1514 .233k -.
Class b -.0691 .i415* -.1310 .2494'" -.0441 .1898* .0360 .1420
Class C -.1409 .1421 -.3217* .i667* -.0856 -.0560 .0303 -.1066
eSignificant at the .OS level or better.
The controls for commercial area (the fi#th and sixth columns in
Table IL.4) and mean incaoe (seventh and eighth columns) also change
the simple relationship dramatically, aad the two variables are fairly
similar in their effects on the relationships of particular types of
adult businesses to neighborhood deterioration.
when.the percentage of all units in a census tract that are commer-
cial is used as a control, the overall relationship between adult busi-
nesaes and deterioration is rrduced almost to zero. l,owevar, when the
various sub-cate~5ories of adult businesses are investibated, so~ae
fairly stronb relationshi~,s remain.
54
~6
5exualiy-oriented businesses continue to be related to higher
crime rates, and beer bars continue to be related to lower property
values, even when commercial business concentrations are controlled.
Beer bars are likely to be nearer to residential areas than mine or
liquor bars area in part because of zoning requirements. The fact
that sex businesses are significantly related to crime even after the
commercial concentration is controlled possibly suggests that these
businesses may have an impact on crime rates independent of other com-
mercial businessea.l
Ua the other hand, the control for commercial characteristics
raises the relationships between liquor or Class A bars and crime from
zero to almost significant levels. In the case of the liquor bars,
this probably reflects the zoning restrictions which requires that
they locate in "seven-acre" commercial zoaes. Wine licensed
businesses' relationships to neighborhood deterioration change from
insignificant to significant, but in the opposite airections expected,
i.e., wine bars are associated with higher housing values and lower
crime rates when commercial concentration is controlled. This finding
is suspect because of the small number of establishments involved.
Controllin~y for income (columns 7 and 8) produces strong rela-
tionships between liquor, wine, and Class A entertainment bars and
higher housins values, and between these types of adult businesses and
lower crime rates. These relationships are opposite to what would be
15ee Appendix 8.1: information in Tables 7 and 8 in Appendix B.l
also suggests that the relationship of sex businesses to crime is due
to the type of area these businesses are in. Specifically, sex busi-
nesses are significantly related to commercial vacancizs. They are
also hibhly related to commercial crime even though they are nut, at
Che tract level, associated Wit} High commercial concentrations.
55
5~
expected if all concentrations of bars mere associated with neigh-
borhood decline. They suggest that income -- or the social conditions
in neighborhoods that income represents -- accounts for a large pro-
portion of the simple relationship between these alcohol-serving busi-
nesses and neig!l,borhood quality. One inference is that a bar may be
an amenity if the neighborhood is already of higher socio-economic
type as indicated by income. Generally, the observed relationships are
similar to those observed when commercial land use was the control,
only more pronounced. As with the commercial control variables, beer
bars and sexually-oriented businesses continue to be related to the
deterioration measures in the same direction, although not as
stronLly, when income is controlled. The effects of these establis h
ments are relatively constant, or independent of changes in mean
income in surrounding tracts.
One possibility that these partial correlations do not take into
account is that the control variables themselves era related to each
other and have effects on the relationships between adult businesses
and neighborhood measures in combination. This possibility will be
explored using multiple regression in the following section.
b. ~tultipla hegression: Adult Entertainaent i:stablishments
bnd Crime
The objective of this section is to determine whether adult busi-
nesses have an impact on neighborhood quality when other factors -- the
control variables described above -- are considered simultaneously,
lSee Appendix B.1 for a description of the methods used in this
portion of the analysis, and for some further results. Unless other-
wise noted, the regressions do not include downtown census tracts.
Sb
58
and if these establishments do have an impact, how ~,reat is this rela-
tive to the other variables.
A set of multiple regressions using the crime index as the depen-
dent variable are reported in Table II.S The rebression coefficients
r
indicate how much change in the dependent crime variables is asso-
ciated with a change of one unit of the independent variables. For
example, in Kegression 3~1, the regression coefficient, b, indicates
that the crime rate per 1,000 population drops 28.20 Crimea, on the
average, for each tract in which all the bars serve 50 percent or more
of their volume in food (since the measure of food volume is a
proportion). Care must be taken when interpreting the regression
coefficients because the unite they are associated with are not always
comparable. The b for the income variable is very small, but it is
more significant than the food service variable. For the purposes of
this report, the significance of the coefficients and the beta weights
provide the key information. If a coefficient is significant (.OS or
lase), than the beta weight provides a way to compare the strengths
of.the relationships between the independent variables (type of adult
business) and the aleaaure of crime rate.
Consistent With the partial correlations discussed in the section
above, only the sexually-oriented businesses have significant coef-
ficients and are associated with a higher crime rate. Both liquor
bars and Claaa a bars are associated with lower crime rates when other
factors are taken into account. (vo other type of adult businesses are
si~nificancly related to tttie crime index when they are conaiaerEd
simultaneously with the control variables.
57
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The first regression shows the relationships between the three
control variables of food, commercial concentration, and mean income.
All of them are alEnificantly related to the crime index, although the
beta weights suggest that mean income is associated with the greasest
changes in neighborhood quality. Both mean income and the percent of
bars predominantly in the food business (5U percent food service or
greater) have negative signs which indicate that higher incomes and
more bars that are primarily food businesses are in lower crime areas.
Crime incrQases as the percent of as area that is commercial
increases.l These coefficients are about the same size and have the
same signs in all the regressions in Table II.S except for number 3,
which includes downtown tracts.2 This indicates that the estimates
for these control variables are faicly reliable, at least with respect -
to the adult businesses.
The sub-types of the adult businesses that do have significant
relationshgs with crime -- liquor bars, Class A entertainment bars,
and sexually-oriented businesses -- are shown in Table II. S.
The presence of sexually-oriented businesses in a census tract is
not as strongly related to the crime rate in the tract as any of the
control variables, as indicated by the beta weight. Yet, these
lIn part, this is an artifact of the data: the crime index is
defined to include co~amercial crimes which happen only in commercial
areas, by definition. kowever, redefining the index to exclude com-
mercial crimes does not change the regressions very much overall. And
thr greater chanl;es in the coiuwercial variables represent an iml,ortant
lose of information.
2TIte inclusion of the downtown tracts shows the way these tracts
chan~r,e the relationships among the variables.
6V
~D~'
businesses do have a significant relationship with crime: the
regression coefficient, b, suggests that the addition of one sexually-
oriented business to a census tract will increase the overall crime
rate index by 9.15-crimes per thousand geople ger year, after the
control variables are taken into account.l
Liquor bars and Class A entertainment bars are also significantly
related to crime, but not in the expected direction. After the
effects of the control variables are taken into account, these types
of adult businesses are significantly associated with lower crime
rates. This confirms the evideace drawn from the partial
correlations, above. In the case of liquor bars, each one is asso-
ciated with a decrease in the crime rate of 2.7 crimes per thousand
per year, and the beta indicates that Chia bar variable is about as
strong in its associations with the cria-e rate as the restaurant
control variable. Class A entertainment bars produce an even stronger
relationship, on the average, with a decrease of 5.15 crimes for each
additional bar of this type in a Gract.
In literal terms, when the environment of a bar, as described by
the commercial and residential variables, and its internal business
procedures, as described by the food control variable, are taken into
accouat, bars of some types may be an amenity to a neighborhood in
terms of crime. Hut, common sense argues that bars are not very
likely to produce safety from crime in a neighborhood. The more
realistic interpretation of these results is that the associations
between liquor bars and Glass A entertainment bars and crime are
l'Pt~e citywide average crime rate index by tract is a4proximately
48.62.
61
~3
greatly affected by their surroundinbs. In other words, the environ-
meet of the bar produces the conditions that spawn crime, not the bar
itself.l Nevertheless, the bar may be a focal point for whatever
crime disturbances do occur -- these data do not necessarily contra-
diet that point.
c. Multiple Regression: Adult Entertainment Establishments and
Housing Value
Table II.6 contains regressions that evaluate the Lnpact of the
control variables -- food in bars, commercial concentration, and wean
income -- plus the impact of adult business on housing value. The
only type of adult entertainment establishment that is significantly
related to housing value is the wine bar.2 ki$har.concentrations of
wine license bars in a tract are associated with lower housing values.
This finding is probably spurious: there are relatively few wine
licenses in the city, which exaggerates the impact of each one on the
measure of housing value. Since several of these licenses are in
businesses like the restaurant in the Art Institute, the fact that
they are in neighborhoods with low housing values is due to the loca-
tion of the business prior to acquisition of the license. The wine
license per se is almost certainly not "causing" deterioratfon. This
conclusion is further bolstered by the fact that wine licenses were
1This interl,retation is also supported by the partial
correlations- The Eood control, as discussed, produced relations in
the expected direction. I~owever, the residential and commercial
enviroamental controls changed the relations between these types of
bars and crime from wEakiy positive to significantly negative.
2The inclusion of downtown tracts, as usual, changes these
values. The adult businesses then beco~,e significantly related to
housinb value. See regression ~3 in Table I1.6.
62
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not issued in the 1970 sample, ao neighborhood deterioration was
probably Weil underway before any business acquired a wine license.
In summary,. adult entertainment establishments do not appear to
have a very strong relationship to changes in housing value when other
variables are taken into account. The relationships are weaker than
the ones found far crime as the measure of neighborhood quality.
Although housing value is negatively associated with adult businesses,
these coefficients are statistically insignificant, and therefore no
conclusions should be drawn. Similarly, the measure of commercial
concentration is insignificantly associated with housing value. Since
adult businesses moat locate in commercial concentrations, it may be
reasonable to interpret the lack of a relation between adult busi-
nesses and housing value as a reflection of the lack of association
between commercial concentrations and housing values. -
Overall, one reasonable interpretation of the patterns in these
regressions is that housing value may be high or lov whether or not
there are concentratioaa of adult businesses. The direction of the
relationship probably depends oa particular businesses in particular
neighborhoods. In part this degeada on the kind of neighborhood
surroundinb the commercial establishments, as the consistent rela-
tionships in the other control variables, such as mean income,
demonstrate. In other words, when mean income is low, a relatively
high trim: rate probably exists given the strong negative relationship
between income and crime, regardless of whether bars or other commer-
cial businesses are present.
65
~7
Summary Findings: Complex Relationships
Controlling for the effects of policy relevant and environmental
variables changes the relationships between many of the types of adult
establishments and neighborhood deterioration measures.
(1) Tha ,affects of beer bars on housing values is negative
and signi#icant regardless of which controls are used, as long as they
are used one at a time.
(Z) The effects of sexually-oriented businesses on crime
rate index is positive and significant regardless of which control
variable is used.
(3) Controlling for those businesses that are basically
restaurants changes the simple relationship between several types. of
base and crime or housing value very strongly is the expected
direction. It appears that primarily alcohol-serving businassaa are
much more strongly related to lvw housing values and high crime rates
than are food service businesses.
(4) the impact of zoning policy can be weakly discerned is
the relationships when commercial concentration is controlled.
Commercial areas themselves have some independent impacts oa crime and
housing value as indicated by the changes caused by controls. Wine,
liquor, and Class A entertainment bars, which are all more likely to
be required to locate in highly commercial areas, have stronger --
though not always significant -- ralationshipa, especially with crime.
(5) When mean income by census tract is controlled, liquor,
wine, and Class A entertainment bars have a positive association with
naighborhaad quality, i.e., they are aaaociatad with higher housing
values and lower crime rates.
(b) Sexually-oriented businesses continue to be associated
with hiy,har crime rates, even when the control variables' impacts are
considered simultaneously.
(7) Liquor bars and Class A entectainment bars appear to
decrease crime when the controls are taken into account. This la
taken as avidanca that the neighborhood residential and commercial
characteristics are really determinative regarding the crime rate.
The bars reflect Chair surroundings.
(8) Unly wine bars have significant associations with
housing value, appearing to decrease that value. However, the small
number of licenses and the types of establishoents that have wine
licenses suggest that this finding is spurious.
6b
~DS
3. Tests for Linearity
~_
There are two reasons to be concerned about whether or not the
relationship here are linear. First, non-linear relationships would
mean that increases in concentrations of adult businesses would have
effects on neighborhoods in geometric proportion, which could mean
that concentrations are especially undesirable. Second, discovery of
a aoa-linear relationship would indicate that the methods used in the
previous section are improper, as they era based on the assumption of
linearity.
The analysis of variance tests performed on the two-variable
regressions of adult entertainment and neighborhood measures show no
significant deyartures from linearity. The inspection of residuals
froo multiple regressions reveal no clear-cut interactions or cur-
vilinear relationships .l Therefore, the linear methods and
assumptions, and conclusions drawn from them, are appropriate for this
study.
4. Causal Analysis
This section addresses the #ollowiag question:
- Do the relationships observed in the data, either over time or
cross-sectionally, permit the inference that adult entertainment
establishments precede or accelerate neighborhood decline?
In order to provide answers to this question, we moat make use of
special techniques and make assumptions about what causes what. If
the data are consistent with the assumptions, then there is cir-
cumstantiai evidence that the causal relations assumed are correct.
1See appendix S.1 for further discussion.
b7
v7
The major technique used here to assess causality is path
analyais.l This approach cakes usn of Pearson and partial correla-
tions to test same assumptions about the causal impacts of adult
entertainment establishments on neighborhood quality. To perform. this
anlaysis, summary variables for neighborhood quality in 1970 and 1979
were created. These variables take into account many factors
describing neighborhoods other than adult businesses, mean housing
value, or the crime rate.2 These summary variables are used as
controls. In the analysis presented here, only the 1979 factor scores
era considered.
The central hypothesis tested is that adult entertainment
establishments have a direct causal impact on neighborhood quality
measures, but that they also follow from neighborhood quality. That .
is, these businesses are in a cycle where they are more likely to
locate in areas where there is already some deterioration, and then
contribute to further decline of the area. This hypothesis is con-
sistent with both our intuitive notions about the matter, and with
1See Appendix 8.1. (Section 6, p. 8-11) for further discussion of
the technique-
2Theae summary variables were created from a set of 12 variables
describing the residential and commercial characteristics of
neighborhoods, including density, sCability of residents, percent
owner occupied, commercial vacancies, and so forth. The technique
used was an it-factor analysis with ~uartimax rotation. A single fac-
tor accounting for b2 percent of the shared variance of the variable
set was used to develop factor scores for each census tract. This new
variable was uses in the path anlaysis. A 1970 factor was found that
accounted for 1VU percent of the shared variance of the variables.
hd
~~
some evidence developed in an earlier study in St. Paul .I Using
arroys to indicate the direction of causality, Figure II.1 represents
Chia hypothesis: Causally speaking, Figure II.1 assumes that 1) the
overall measure of neighborhood quality is casusaily prior to all ttie
other variables; Z} that characteristics of adult establishment9 are
caused by the general quality of the neighborhood; 3} that crime fs
caused by both beneral quality and adult businesses; and 4) that
houain~ value is dependent upon all of the other variables. Table II.7
contains the relevant predictions and actual values of the correia-
tion coefficients obtained from the data.
Figure II.I:
Path Dia ram of the h othesis that Adult
Establishments Contribute to On-Goiu _Processes
of Leterioration in Ceaaus Tracta~~ •~•
Variable l: Variable 2:
Neighborhood ~ Adult
l;uality, 1979 Establishments, 1979
/`
i~
i~
Variable 4: ~ Variable 3:
housing Crime Index,
Value, 1979 ~ 1979
lrilnneaota Crime Prevention Center, "Neighborhood ueterioration
and Lhe Location of Adult entertainment Escablishmenta in St. Paul"
(Minneapolis: t•1LYC, Inc., 1978). Using different methods, the 5t.
Paul study found that tl~e location of bars was related to both prior
measures of nelghbort~uod aeterioration, and to subsequent ones. It
concluded that adult businesses may be part of a cycle of decline in
s+hieh they contribute to or accelerate an on-going process.
6y
~1
The model in Figure II.1 says that there should be a direct rela-
tionship between adult entertainment establishments and housing value,
even when the general effects of neighborhood quality era taken into
account. According to the logic of the path analysis, this means that
a number greater than zero should describe the relationship even after
r
general neighborhood quality is controlled. This relationship is
shown in Table IZ.7 in prediction B3. liowever, the observed partial
correlation in Table II.7 is -.OU44 (Actual Value ~3), which is too
close to zero to accept the prediction as being accurate. The actual
value suggests that when the several effects of the neighborhood
quality index are taken into account, adult business coacentrationa
have no relationship to housing value. In other words, the general
character of the neighborhood is responsible for both housing values
and conceatratians of adult establishments.
Table II.7: Path Anal sis Predictions and Actual Em irical Valuesl
Predictions
(1) Pearson's r, variables 2 and 4: r24 = (r12) (rI4)
(Z) Pearson's r, variables 2 and 3: r23 - (rI2) (r13)
(3) Partial correlation, variables Z and 4, controlling for
l: r24.1 > U.
(4) Partial correlation, variables 2 and 3, controlling for
l: r23.1 > 0.
Actusl Values
(I} r24 = -.1320 ~ (r12) (r14} - -.130
(Z} r23 .1926 = (r12} <r13) _ .15
(4} x23.1 -•0761
IThe IoEic of predictions in path analysis is discussed in
Appendix B.1.
70
....7~
The predictions for adult businesses and crime (predictions ~2 and
i~4) are not sa clear cut. The predicted correlations in Table II.7
are similar to the actual ones (r~3.1 ~ -.0767 > U). Conservatively,
we must conclude that some s~aall direct relationship between adult
businesses and the crime index re~oains, even though the magnitudes
involved are very wall. Alternatively, since the partial correlation
between adult businesses and crime, controlling for the neighborhood
quality index, drops toward zero, we Haight also conclude that the
neighborhood quality index is responsible for both the crime index and
the presence of adult entertaironent. This is similar to the case of
housing value. ILowever, the evidence suggests that a direct connec-
tion between crime and adult busiaesses is possible, but slight.l
Figure II.2 shows the revised model that seems to reflect the data
more adequately than Figure II.1. The dotted line between adult
entertainment and crime indicates that a weak direct link between
Figure I1.2: Revised Causal Path lbdel of Adult Entertainment
and fieasures of Neighborhood Uecllne
neighborhood
4uality, 1979
Adult
Entertainment, 1979
'i'
t-ousing ~ Crime Index,
Value, 1979 1579
lIt should be noted that for alI predictions an analysis of
regression coefficients for theme variablr.s generally confirms the
results reported here. The regression for crime, with both the
quality index and adult business as inaependent, suggests that the
adult variable loses sibnificance, and its coefficient drops tovarl
Zero.
71
73
~.. _
adult businesses and crime remains. The link between housing; value
and crime Disappears completely. These results are consistent with
other findings here which indicate almost no relationship between
housing value and adult businesses remains when any of a number of
different controls are used. keen though the crime rate index does
have a slightly stronger direct relationship with adult business
(r ; -.076), it, too, is very weak and tends to disappear when other
variables are considered.
Summary Findings: Causal Analysis
(1) The assumption that concentrations of adult entertain-
ment businesses have a direct Lcpact on property values is not born
out in the path analysis. Controlling for general neighborhood
quality indicates that, at the census tract level, adult businesses as
a group do not lower housing; value.
(2) The assumption that crime has a direct link with adult
businesses is confirmed in this path analysis, but very weakly.
72
'7~
Section p
Summary and Conclusions
This portion of the study of adult entertainment in tlinneapolis
has produced several tentative conclusions.
(1) Different types of adult entertainment businesses are
different in their relationships to crime and housing value. Some
types of these businesses have significant relationships with crime or
housing value; others do not. Neighborhood stabilization policies
should attempt to take these differences into account.
Sexually-oriented businesses and beer bars are significantly
related to both crime and housing value. Fa addition, a summary
~easuct of all adult businesses and Class B cntertainment bars are
significantly related to crime, usinb simple bivariate statistical
techniques.
(2) Takini factors which reflect buaines• decisions, urban
policy decisions, or neighborhood environment into account changes the
simple relationships between adult businesses and neighborhood
deterioration a great deal.
The evidence suggests that past policies or residential devel-
o pnents may have greatly affected current observations of the rela-
tionships between types of adult businesses and crime or housing
value. By law the liquor bars have Lo be located in seven-acre com-
mercial zones, and therefore they are more likely to be statistically
related to commercial crimes (since they are in proximity to more com-
mercial establishments) than residential crimes. Wine licenses are by
law only given to establishments that primarily serve food, and
the partial correlations reflect this fact. When average income is
taken into account, some types of bars -- such as liquor bars and
Class A entertainment bars -- even appear to have desirable effects,
73
7~
i.e., the neighborhood crime rates are lower. This is a result which
actually indicates that the type of surrounding neighborhood deter-
sines a great deal of the relationship between adult businesses and
measures of deterioration.
(3) kvaluation of the data using the technique of path
analysis suggests that adult entertainment variables are not causally
prior to crime rate and/or housing value.
The path analysis is a technique which can be used to test the
compatibility of a hypothesis about the causal relationships among a
set of variables with empirical data. The hypothesis tested here was
intended to answer the question whether adult entertainment preceded
or followed neighborhood deterioration. Specifically, it was assumed
in the path model that adult entertainment was likely to locate in
areas that were already in decline, and then contribute further to
Ltu t decline. This assumption is very weakly supported is Che case of
crime, but it is clearly not supported in the case of housing values.
Adult entertainment establishments do concentrate in arena that are
relatively deteriorated, but they do not appear to cause that
d eterioratioa. At most, they contribute very weakly towards its
continuation.
(4) Sexually-oriented businesses have a greater number of signi-
ficant relationships to high crime rates and low property values than
any other type of adult entertain~aent establishment in this study.
The relationship between sex businesses and higher crime rates
is especially stronb. The association between these businesses and
lower housing values disappears, however, when other factors era Caken
into account. In addition, these businesses are quite strongly
related to percentabe of vacant commercial properties, which is often
used as a measure of a declining commercial area. These associations
74
'7!_
alone are not evidence that a sexually-oriented business locating in
as area causes other businesses to leave, or property values to go
down. Alternatively, these associations may indicate that sex
businesses locate where pcvperty values have already fallen and demand
for commercial space is weak enough to permit them to caropete success-
f ully for space. •
(5} The most general finding is that while adult businesses
appear to be located in areas of higher crime and lower property
values, this is not because they have caused these undesirable
conditions. Once in place, they ~ contribute to the maintenance of
such conditions in a neighborhood.
The central thrust of the findings in this study is that adult
entertainment establishments do tend to be located in areas of higher
crime and lower property values than other parts of the city. The
conditions which encourage the businesses to locate in an area may
also be the owes that cause lower property values and higher crime
rates. This is especially clear for the sexually-oriented businesses.
For alcohol-serving businesses, it is less consistent. The license
types are apparently not related to neighborhood decline, but there is
some evidence that other properties of bars -- such as extensive food
service -- may change or modify the impact of a licensed establish-
ment on a neighborhood. These characteristics, such as managesent
procedures, cannot be studied in an approach like the one taken here.
The final implication of the study is that these establishments appear
to have very localised impacts: even though we know of same bars that
are associated with significant amounts of crime or angry neighbors,
they do not, on the averabe, show up in this analysis of census
tracts.
75
--.~
C~;APTER III
hA1PIRICAL FINDINGS ANL POLICX RECOMMENDATIONS
7b
?R
In a sense, this study is an evaluation of the effects of past
policy decisions. Directly or indirctly, some of the assumptions
underlying those policies have been examined, with an eye toward spe-
cifying policias for the future that will help achieve the goals of
the city.
One very general finding of the study is that the relationships
between adult entertainment establishv~ents and crime or housing values
show the effects of past policy decisions. For example, the com-
bination of the old liquor patrol limits and zoning requirements
which restrict liquor licensed bars to large commercial areas are
reflected in the fact that most of this type of business is located
downtown, or in a few commercial areas of the city. Likewise, beer
licensed bars are permitted in smaller commercial zones and they have
not bees restricted by the liquor patrol limits. Thus they are less
concentrated than liquor bars, and they are, oa the average, closer to
residential areas.
The purpose of t}~ia chapter is to draw upon the findings that are
strongest and most consistent in both portions of the study and relate
them to policy concerns. Ttie two portions of the study used different
methods, different measurements, ana different data sources to
investigate a related set of r~tsearcl~ questions. Wherever these dif-
f scent approaches converged on sicailar findings, we can have more con-
f idence that they are providing an accurate picture of the rela-
tionships as they actually exist, even though some of the statistical
results may be creak.
77
~4
8e low err several tentative policy recommendatiuns we make to the
City Council, based on the cesults of the study. The recommendations
are stated, and the rationale for them follows.
1. Establishments which intend to servo alcoholic beverages as a
comple4eat to food service should be viewed favorably in licensing
decisions, other things being equal.
2. Applications for wine licenses also should be viewed
favorably, assuming current requirements about volume of food business
necessary to qualify for these licenses are maintained.
Certain categories of alcohol-serving establishments are not
significantly related to crime, either in immediately surrounding areas
as measured by the distance decay analysis, or in the neighborhood as
measured at the census tract level. These are wine-licensed bars and
establishments that do more than 50 percent of their business in food
service. The common characteristic here is the food service aspect.
Because of current licensing requirements, wins bars do a high ~ .
percentage of their business in food service (the wine license requires
that the vendor have at least b0 percent of his/her business volume in
food service). hestaurant-type businesses are not associated with
crime or lower Housing values. If the Council issues wine licenses
without the food service requirement at some point in the future, the
relationsF,ip between wine licenses and crime or housing value woula
have to be re-evaluated.
3. The City should avoid locating sex businesses in residential
areas.
4. The current policy of avoidinb concentrations of sex
businesses can nrither be supported nor contradicted.
Sex businesses do F~ave significa~it and consistent positive corre-
lotions with the criu~e rate index and a negative correlation with the
mean sinble fa~iily housing value, measured at the census tract level.
7S
~n
The relationship with crime remains when commercial concentration and
average household income are taken into account. The small number of
t}~ese businesse$, plus their distribution, means that no large con-
centrations of them exist. 1'he large wajority of census tracts that
have sex businesses have only one. The two-or-three-establishment
concentrations that exist, such as sior~g Lake Street, cannot be ana-
lyzed apart from their generally commercial surroundings using the
techniques is this study. These sex businesses are statistically
related to high commercial vacancies and hif,h commercial crime rates,
which suggest that they locate in less desirable commercial areas.
5. Adult eatertainraeat business (including bars) should be per-
mitted only in locations that are at least 1/10 mile from residential
areas (about SGG feet).
6. Adult entertainment establishments and other kinds of late
night businesses should not be placed adjacent to each other.
The effects of adult entertainment establishments, if any, occur
in the immediate vicinity of the business. They do not extend far
into surrounding neigt,borhoods. This general finding is ,supported by
both portions of tl~e study: the aistance decay analysis suggests in.
numerous places that crime is concentrated in the areas immediately
surrounding bars, and the census tract analysis reveals only weak
relationships between adult entertainment and crime or housing value
dt the neighborhood level.
The intent of recomruendation (b) is to avoid mixed commercial uses
that may have undesirable effects. For example, ttie location of a bar
next door to a movie theater or late-ni~,ht Laundromat may result in
patrons of the non-adult businesses interacting tiith patrons of adult
businesses, possibly increasing their chances of victimization.
79
~r
7. The circuastantial evidence generated by the study sub$ests
that, although concentrations of adult businesses may not have dispro-
portionate effects, they can raise tt~e total level of crime or reduce
housing values more than single establishments. So, all things being
equal, concentrations of adult establishments should be encouraged
only if a concentration of crime and housing value effects is also
desirable.
8. Concentrations of adult business 3n declining areas should be
avoided.
One policy issue is whether the concentration or the dispersal of
adult businesses will have better overall effects on the quality of
life in the city. The information the study generates on this issue
is fragmentary, but several patterns emerge.
- Concentrations are not disproportionately related to crime or
housing value, e.g., five bars located righk together have ao greater
total impact oa assaults than five similar bars in widely separated,
but similar, areas.
- Concentrations are weakly related to lower housing values and
higher crime rates at the census tract level, e.g., the impact of five
bars located together will be greater than the impact of one, two,
three, or four similar bars located in the same area.
- Controlling far other characteristics of the neighborhood, like
percent commercial or average income, reduces ar reverses the
relationship and deterioration. Thus, the impact of concentration of
adult businesses at the tract level may depend on the kind of neigh-
borhood in which they are located.
- Theres is no direct evidence in the study that shows that adult
businesses gave neater impacts on detesriuration in declining areas,
but tt~e possibility cannot be eliminated. Further, other studies of
b0
~~
urban aevalopment suggest that adult businesses may be seen as a
barrier to upbrading neighborhoods.l
- dispersal, as observed in the removal of the liquor patrol
limits, has not.had any area-wide impacts that raised the crime rate
higher than would have been expected anyway.
9. Adult entertainment establishments should be located in
large commercial zones in various parts of the city.
The intent of this recommendation is to locate adult businesses in
a number of large comaunity-level commercial areas in different parts
of the city, not to create a singular concentration of adult businesses
like Boston's infamous "combat zone." itather, the intent is to confirm
what is really current city policy, with soma extensions. It is
already the case that adult businesses, especially liquor licensed
bars, are yuite concentrated downtown. In addition, zoning restric-
tions already ensure that many adult business land uses will be in
highly commercialised areas. What is recommended hero is to continue
and accentuate this policy, consistent with the other recommendations
made here.
Concentrating bars {and probably other adult uses as well) in large
commercial zones will neither raise nor lower crime rates appreciably.
There have been numerous indications in this study that it is the
commercial areas of town where assaults and btreet robberies occur.
This confirms what has been found in other studies. $ecause bars are
all located in comoercial areas, by definition, it is difficubt to
separate out the crime effects due only to bars from those due to com-
mercial areas. however, we believe that the independent impact of
1Phtllip L. Clay, Neighborhood kenewal, Lexington. Plass:
Lexington Books, 1979, pp. 4 T, 64-b5, b2.
81
~~
commercial areas is quite great, and could noC be appreciably affected
by removing bars. This is also confirmed by previous studies.I
Such a concEntration would improve the efficiency of some city
efforts, such as police patrol, and it would also make the achievement
of some of the other recommendations made here, like separating adult
uses from residential areas, more practicable. It is important to
emphasize that this recommendation should be seen as a complement, not
a replacement to other recommendations made here.
10. In the long run, policies which foster or supplement attitudes
and activities that strengthen the quality of the neighborhood are
more likely to have desired impacts on crime and housing value than
simple removal or restriction of adult businesses.
There is no evidence in either portion of the study that adult
businesses cause neighborhood deterioration, although other measure-
meet or analysis techniques raay reveal such a connection. On the _
basis of this study, the alternative hypothesis that general neigh-
borhood quality determines the kind and quality of businesses to locate
in the neighborhood seems more plausible.
I1. The study tends to support the position that adequate off-
street parking or equivalent spaces on non-residec~tial streets adja-
cent to the establishment should be required for issuance of licenses
to serve alcohol.
12. Type of entertainment, specifically game rooms, may have a
relationship to the nuisances generated by an establishment.
13. Individual differencES among alcohol-serving establishments
should be taken into account in licensing deeiyiuns.
l4. Parking, entertainment, clientele, and aanagement practices
of adult ~antertaiument busiressea should lie investigated further.
lCrime in Plinttea olis, up.cit., p. 174. The proportion of
assau is wile re the victim was either intoxicated or craving a bar was
12.51 in 1975.
d2
~, r
Ttie part of the study that analyzes the relationship between cer-
tain characteristics of bars and whether or not they are "nuisance"
bars has pointecj to several factors that may help to explain the dif-
f erences among indiviaual bars in thair effects on crime and other
measures of neighborhood quality. Ttie "nuisance bar" portion of the
study was developed in response to the concern of several Council mem-
hers expressed during the course of the research. The nuisance study
should ba considered preliminary, but it does tend to confirm ttie
expectations of Council members and staff regarding the effect of
parkin~y, and possibly other characteristics as well. We believe that
these characteristics can be studied in a systematic and straight-
forward way. Currently, licensing decisions are made on a case-by-
case basis, using some of the kinds of information for each case that
further study would classify and evaluate more systematically. The
efforts of the Council to use this kind of information in licensing
decisions appears to be justified.
c3
~~
AP1~~6LIX d
Supplementary Materials for Chapter I:
Bars and Cruse
~~
Ai'PL•'NUIX A.1
Distance Decay Methodology
Discancy decay is a method for analysis of crime at a liaised
level and a means for deriving crime impact statements. The method
described is based on the distributional characteristics of crime
which can be attributed to the beographic location of individual
sites. The approach proposed here focuses oa the types of crime
patterns which can be derived from the analysis of the geography of
crime with r~eapect to individual sites. We have taken as a priori the
assumption that for some types of crimes, and same types of sites,
there is a distinct geographic pattern that can be derived for the
distribution of crime around these sites. Further, we assume that
gives the derivation of each a distribution, the actual impact of the
site on crime can be derived and transformed into a crime impact
asseas+uent o£ individual sites, and sites of a similar character. It
is important to note that these assumptions are only valid if there is
some thevratical interpretation that can assign meaning to the
observed associations.
The approach taken for this evaluation is derived from distance
decay analysis common to urban geographic studies. Distance decay
analysis is a methodology which measures the density of events in
relationship to the location of a single site or node. The assumption
tested by distance decay analysis is that the closer one gets to the
node the r~oce events, or crimes, occur. Thus, the node is tlieoreti-
cally assummed to be a point from which events or crimes emanate or
are drawn toward. In order to develop a distance decay analysis, one
generates a distance decay curve as shown in Figure 1.
A=i
~• `7
Figur•~ I
An Interpretive Guide to Distance bec v Curvesa
htEh t
Relative
Crime
Density
Relativ
Crime
Density
DISTANCE DECAY PATTERN
Crime density decreases
as distance from site
increases.
low ' ".1 .2 .3 .4 .S ~.6
Dt:t:r-~ce fr+•r~ `'iia (:n :'.lr.s)
filth
NO DISTANCE DECAY PATTERN
Crime density is constant
,_" ~ _ _- __._ ,__ _ _„~,_ as distance from site
increases.
Pi•~t.+nce lrcA Site (fn riffs)
high
' • e
Relative
Crime
Density
lev ~ •1 .2 .3 .4 .S
Df~t:~n~e front Site (in r-i]r•s)
6
INVERSE DISTANCE DECAY PATTERN
Crime density increases as
distance from site increases.
•~,
se .:r. fr.re :~~p•.~. Acre.+1 cr.:.,s :.ay .if-.ploy xr•.-.c ::::r.at of r.; .:d..a
vart..tlun ..•~for ~u:vilfrr.~rity.
,i-.
The uses of.a Distance Decay Analysis are:
a) to ascertain whether the crime density changes system-
atically as one approaches a specific geograhic location,
r
b) to ascertain ttie direction of this change, i.e., whether
the crime rate increases or decreases as the site is
approached, and
c) to estimate the magnitude of the change in the crime den-
sity as one approaches the site.
As with any statistical technique, the distance decay analysis
will produce misleading results if it is used improperly. As noted
above, the analysis is auaningful only if soma theoretical assumption
about the relationship of the nodes to the events in the areas around .
them can be made, and the measurement conform to these assumptions.
Otherwise, associations produced by this technique may be spurious in
the same way that other kinds of statistical associations may be
spurious. For example, if a bar is next door to a fast food outlet
where teenasera hang out and cause trouble, the distance decay analysis
using only bars to define the nodes would assign crimes actually
related to the fast food outlet to that bar. If the fast food outlet
Were explicitly taken into account, weighting procedures to overcome
this problem could be developed, and an evaluation of the theoreti-
tally suggested relationship of bars and crime could be made.
Individual distance decays should be carefully assessed to determine
that tite results are actually due to tiie weasured node and not to some
other u~imeasured factor(s) within the distance decay area.
A-3
The distribution of crimes around the various nodes can be
aggrebated to perform a single distance decay analysis for a class of
nodes as defined by some theoretical or policy-relevant criterion.
Iliatance decays of this sort should be interpreted similarly to
distance decays for individual sites, remembering that the analysis is
producing an averaged result which may be valid for a class of nodes,
but not necessarily for all individual nodes within the class.
Aggregated distance decays follow a similar procedure to the
siagla node distance decays as described below with one difference.
The aggregation procedure used is to identify the total number of
events (e.g., crimes} occurring in aach ring of each individual
distance decay, then adding these to get a total number of events for=
the aggregate analysis, and then proceeding as usual for calculating
the density of events and testing this distribution for significance.
Tha counting procedure thus introduces an implicit weighting function
wherever the areas around nodes overlap: any event which lies within
two or more areas will be counted two or more times in the aggregating
procedure. This is only one of many weighting procedures, and it is
one which heavily weights crimes counted numerous times. especially if
they are counted as members of the same or adjacent rings in the
aggregate analysis.
Figure 2, below, and its associated text, provide a step-by-step
guide to the distance decay analysis.
A-4
`t~
il;ura ?: istr•uc*.in~; :i Dis;t•ance pt•r:,y ~'~,r
-- _1
CGr:51kUCTi!:C ~ irtsr~ra:}: n~.c~r ccRvt
~~' `
~ ~~ .t
`.~
'?f•sf' .•. r. r•f .L !Tt
t`•a ~irn of !:~t~ •.r,
r 3 :'tea
1. C• ,..;L r:•C . s •,,.r r[ ... s +. tthfn • .•.:lt T:..:id.
2. T: ..:<!r•r.: r-.:A <~anc i •o ~ r.ri:'e l~re~~rtir..n Sy •'.:vl~t--' ;; 'y rite
fss:: .,! :+11 rS_..•s ~!:'•Cn .5 tl• s nt t:,e site „f i,•t. •~t.
3. ir'? .• SC':?. ::}t ri ~•~IC ~. ~n.lf•'rt t7~t0 d t. T ;rtYC . s ~•..~ ...t ~•~
.i;vt•!1ng L~ t::e ,t•.,varict ~I c},c tv[aI ar~i in :I:tt } •r.d ( •a
t.•bIc b~•T• v).
4. Flot the r,:t.slrSrsg crt~.c r~tc:s for e•.tch lr.t:td .c}•..tn~ct t!.a ~ ts-
t.~:;ce ~~r sire.
p7 `;i;.tiCE t?=('AY CRt:!F, t:t)FK SHLtiT
F.r:IATIVL
D15'1!`:(:! TO 5ITL COt'tiI Ol Cwl}'.1r t~FJ1 t:Ai`:F
--- _(:~tles} __ _Cxi}:::5~ F:tOP(-R'I'IO:i? T__..°.!Jc'Lnsltl~
_ _... =.~sE;_
0 t}.zu::gh .1 .4718
.1+ frhr;..,gh .2 .isR33
.2+ t}craueh .3 .1399
.G+ rT:cuugh .S .2500
.St• thro••th .6 __ . _ _ -- .___._ ~ _ •30Sb -- - - - _
Si.`t GF C4i.`tf.S:
1C.atit of cc::;e teect~r-. es ~irhtn b..nd.
?C: ssnt of ~c'- n isui'... cs +.ichin b:.nd dtvisi•~d by ~u:a c+f
iarisc.~res f.•r all I•t:vti.
~Cri:.:- yss.•;••cti~n •f!~t' •d Ly zr.~a ~-rc~•~rtton.
The celati~nShip ~t:tuc•en crime tir-nsity cli~t.,n~_e is aS--u: c•3 to be
of Lhe fnrcn:
c:ftr~re D is rice licnsity of crince, a--d F cJenotcs tl,e funct iun rcl.iting
distance to drnsity. For our purposes, it is urrncc~ss.•try to Sarive
a-~, Q/
the r~lt;pirica] Furlctioa F, wh}r.h r:ln risi]y Le ti~~ri~~r•d IIS<.Itg ~7t'1'11C rtr
jtolyrtrlmial regressian trrl,niti+ttaa. Onr pi'i:r.•,:y ~ ctlt ,~l'n i s vi t }1 •'ra ivir.g
the 1:h.ir.~ctl:ri5t.ic slope of F, ..r F'. '.•'e c.ln 5i,•;~1 i r.t it :, 1 ]~ •'• . ~'~'e
that if ~'~ <0 than a 1}i~:r•,nre t'r•r•ty r~ffr•^nrt•is ;r, •r nt. if r' >_ n t}.tn
3 di~t.:11fC t1Pr,ay ~'ffl'l.t i$ llut ~,I I'~,•IIr. 'I'Ir l,•lt~ii i ~•1`; fr.. tJ l~n
~1et1`r•,,irliag the t}~;;rce 'ro ;:}tSr-h •:e c:+n .1~.•,•rt , t• lc ~~' ~ n.
T•.:o rt•sts tt:lve b: rn ,•.:~, ]o;.:d t.,~ Jr:riv~ =Itr!i Ir tl ,~. •7f .l.c • . :t ,n-
lif.ifi:if•$$ Of rr~. The f it'!t i5 d 1'}:ISf:~(.' r=ti •':t+L: xrd SCII t' } 1t: •itl•:~'!
1'Cj'•utCS '~}l.•t.}tl'l' 1:~• tlY3 iR i};C ':~''1f:C AfC Iltlif.,t..t]y r}ttil4 ~~.'itCr}• ~ ~1~-
nifil•./1-t f}1i •1t~ll:,le i5 t3R.-n 10 irl•Ii, :/L~ Tlr?:Nttii (•JI". .lty ; n f}re t i• it'p.
T}te ;~•+:rr.d kl_st fs t}.c Gi;,n; t. st .ti•p1 i.~d co Ltl4' ,Zit :.•r...c:,: ;;a<t.:.•'Cn
dist.:.r-ce 1}r•ray ioeffir_it-,lts in a t:.s:a1 of ]r•ssur r.~l}ius .I;,d a }•.;:id of
grc:,l./rr radius. Sirlrc ::c }t.lve six b:,.lds, t.•c .-re L.~ll.i.lg fi•.•as: c~~ ; .irisolls
:,cld t,yit:g 1:7•.la•~css t.}te c'~;;ic•e to ::h~ch t•}te ~nrffi/ i,:llfy ;•.tiy in ratla-
tian to ,•.,t.h at'.:r. t'l..•1•v. 1.}Ir. :;t„~~ uF all fi.e r.•,~~:.+i i~-;,a, •,t,` .:t ;;:t it:e
i . P ~ ~ t ~ ~ I l ~~. i • : t } ~ $ `~ (•• 1 • L f I t - l a • 11 t 3 ~3 j ' • $ i } . ! i 1 i a I: ! r r~ f ~ ~ . r ~ ~ .. r I~ i r ~ 1 t r : • } y
i~t~~ 1 ~'. •d to it), r1•., Il .:r_1t.ln :,• :1- :a }.,.,t.:l:i}~t.y •~f 1j~s ru l;;r_ Ilb-
:iCl:'1~ 5'.•fiC of 1}le 1~V1: 1':1}1, t}I::r irll'8 1}a',•:~~I l'jla `: f!. •
'~~.I:fC A]] t}iTC•e CeSCS~ 1}le 1j15Y.c:lre ,s.•r..y r'ltaYP.~ L;,L t'':i .~:taCP.~
lt:~ i~,l'. ~1~.15 t.t'St i;u}ic~ke Sl~rliifi::,nt :~t'~;.1Li:C S}.~ta~S~ :1 ,ll5r.:n~e
tll:ray ~Ef,-r_t is :ISSU:,ed to be ubsecVl:d in t}:e Jat~.
r~-t,
1 O'L
Appendix A.2
Results of Sumtuary 1}istaace Decay Analyses for
• Detailed Categories
Figure A.2.1
Listribution of Crime Around Bars by Types of Liquor Licenses,
Controlling for Neighborhood
Low Owner Moderate Owner liigh Owner
Occupied Occupied Occupied Row
~ 7 3 Tetal
3
Beer 'L
1
3
Wine 2
1
3
Liquor 2
1
3
Column
Total 2
1
Il52 N= B ` N=33 N= 143
* ~ * *
N 15 N= ~ N t~=21
l',
h= 16 N= 28 ~ N6 N=203
\ ~ `
* s
A=23 N=$9 N=42
~
t 1
•~`~ ~~
* =significant
h =number of bars
A-7
Cr3
Figure A.2.2
3
Claas
C 2
I
3
Class
>i 2
1
3
Class
A 2
1
3
Column
Total 2
1
4istribuLion of Crime and Bars by Type of Entertainment
Categories, Controlling for 14eighborhood
Low Owner Moderate Owner High Owner
Occupied occupied Occupied
Eiow
1 2 3 Total
[~~I51 [~~73 N~40 N~2G4
` \,
`~
,
.
~~ ~' ` `
~~
*
N~13 N'1
~1
r
N ~ 72 1 [v +~ 16 ~ N ~ 2 N 90
\
-~ ~
N X236 N~ti9 N-4z h=367
t
1
\.
•
`
~
-.
~. * *
* ~ ai}~nificant
h i number of bars
A-b
N~
Fibure A.2.3
Uistsibutioa of Crioae Around Bars by Volume of Food,
Controlling neighborhood '
Lov Owner Moderate Owner l;igh U~mer
Occupied occupied Occupied Row
~ 9 3 Total
Less 3
than SUX
food 2
I
1•lore 3
than SUX
f ooa 2
1
3
Columa
Total 2
1
•~tv • ~!8 ti = 16 tv 4 N 108
`. 1
'.~_ .~
tr=89 N=13 t~5 h=107
--~^1 v
H= 1 h= 29 N= 9
* ..
* =significant
N s number of bars
A+r 9
~~
Appendix A.3
Crime Concentration Values for Category Analysis
Values for Figure A.2.I, Type of Liquor License and neighborhood
Cell 1 2.38 1.50 1.08 .9b .86 .254
Cell 2 2.67 1.29 1.06 .98 .253 .90
Cell 3 3.49 1.19 .93 :.lb .81 .80
_
Row Total 2.52 1.4'l 1.07 .97 .85 .86
Cell 4 1.15 2.08 1.07 1.37 .70 .67
Cell S 2.32 1.14 1.16 .92 1.0 .82
Call 6 .90 3.6U 1.09 .89 .90 .41
Row 1ota1 1.21 2.04 1.07 1.34 .71 .68
Cell 7 2.19 1.63 1.29 1.01 .84 .71
Cell b 1.93 1.I7 .96 .92 .7S 1.11
Cell 9 4.37 1.18 1.03 1.10 .75 .77
kaw Total 2.20 1.62 1.28 1.01 .84 .7I
Column 1 Total 2.18 1.63 1.25 1.U2 .84 .72
Column 2 Total 2.52 1.27 1.U4 .96 .83 .93
Column 3 Total 3.59 1.26 .9S 1.14 .80 .78
Values for Figure A.2.2, Type of Entertainment Categories and Neighborhood
Cell 1 2.31 I.4U 1.18 1.01 .86 .79
Cell 2 2.40 1.25 1.09 .97 .84 .95
Call 3 3.54 I.28 .95 1.15 .81 .77
xow 1 Total 2.35 1.38 1.16 1.01 .86 .8I
Cell 4 1.55 2.15 1.07 .87 .90 .17
Call 5 None
Cell 6 None
Row 2 Total Same as Cell 4
Cell 7 2.11 1.b6 1.39 1.~7 .79 .61
Cell 8 3.33 1.40 1.18 .92 .74 .8b
Cell 9 S.I4 .62s 1.25 .73 .57 1.13
Itow 3 Total 2.15 1.84 1.38 1.07 .79 .62
Column Values Same as I
Values foc Figure A.1.3, Volume of Food and Neighborhood
Cell 1 2.b9 I.57 1.29 1.I0 .75 .68
Cell 2 2.47 1.39 1.23 .96 .7I .9t
Cell 3 4.25 I.25 .99 1.16 .7b .72
kow 1 Total 2.2521 I.55 1.29 1.10 .75 .b9
Cell 4 1.57 1.69 1.24 .99 .92 .73
Cell 5 1.36 .2525 .621 .87 .94 1.27
Cell 6 2.2s8 2.24 1.16 .82 .75 .74
xow 2 Total 1.57 l.b2s 1.Z3 .99 .92 .74
Column 1 Total '2.13 1.54 1.2b 1.04 .85 .71
Column 2 Total 2.01 l.lb 1.01 .93 .bl 1.tlb
Column 3 Total 3.90 1.50 1.U3 ~ 1.07 .77 .72
A 10
Appendix A.4
Liquor Licenses Granted Uutaide the Liquor Patrol Limits
' Between 1974 and 1979
Date Liquor
Name Address License Granted
1. Ames Lodge X106 1b14 Plymouth Avenue 5/28!76
2. Artist's 4uarter 14 East 26th Street 12/20/74
3. Black Forest 1 East 26th Street 10/b17b
4. CC Club 2600 Lyndale Avenue South 7125/75
5. Calhoun Bench Club 2730 West Lake Street 2/25/77
6. Campus Club 3U0 Washington S.E. 8/25/77
7, Howie's 2119 West Broadway lU/1G/T5 '
i~. Improper Fraction 710 Washington S.E. 4/25/76
9. Jimmy's 3675 Minnehaha Avenue Z/28175
10. Martini's and Bagels 3025 West Lake Street 3/17/78
il. rlinnikahda Club 3241 Zenith 12/12/75
12. Occie's 2951 Lyndale Avenue South 2/28175
13. Poodle 3001 Fast Lake Street 2/4/75
14. Pop.~ye's 3bU1 East Lake Street 3/27/75
15. Rainbow Cafe 291b Hennepin Avenue 3/27/75
lb. Society of Fine Arts 2400 3rd Avenue South 7/25/75
17. Stardust Lanes 25ZU 26th Avenue South 8/8/75
18. Stub n' l.erbs 227 Oak Street S.E. 2/14/75
19. Sunny's 2944 C~-icago Avenue 2/28/75
2V. uptown bar and Cafe 3016 Hennepin Avenue 2/13/16
21. waldo's 4601 Lyndale Avenue north 11/27/74
22. Walker Art Canter Vinrland Place 4/30/7b
23. Willtaas Pub 2911 hennepin Avenue 3/28/75
A-11
G~
Appendix A.S
List of Bars in the Wuisance Study
Bars Identified as
Nuisance Isara
Addison's
Beanie's
Carousel
Dollie's
Uuffy's
Jimmy's
Longhorn
Moby Dick's
Moore on University
Mousey's
!,r . Arthur' s
Mr. Z's
New Wonder bar
Uccie's
Poodle
Rainbow Bowl
Spring Inn
Uncla Sao's
union
Waldo's
Bars Identified as
Non-Nuisance Hars
Arthur's
Blank Forest
Cedar Inn
Charlie's
Duff's
Dusty'a
Blsie's
Famous Bar
Hub Cap
Jax
LeFamilia
Lake Inn
Eionte Carlo
Nye's
Parkway
Sebastian's
Bunny's
The Firat Story
Williams Pub
Zurbey's
A-12
/~
Appendix A.6
Collection Instrument for Nuisance Bars
NAME: Arthurs AULRhSS:
1. Is the volume of food business more or less than 5U percent of
the bar's total volume?
< 5U percent - U
SU percent ++ 1
1. What !s the proximity of the bar to a predominantly residential
area?
l:ithin 1 block - 0
1-2 blocks 1
greater than 2 blocks = 2
3. Wi~at is predominant parking situation?
Street parking - 0
Metered parking = 1
Other lots available - 2
Own lot = 3
4. What predominant type of clientele frequent the bar?
19-29-0
30 - 45 = 1
46+ - 2
itace
white 0
llixed - 1
Minority - 2
Social Pattern
Single - U
Couples - 1
Croups - 2
a-T3
qg
APPENDIX B
Supplementary Materials for Chapter II:
Adult Entertainment and Neighborhood Deterioration
/ ~~
Appendix B.1
liethods used in the Research on Adult ~;ntertainment
A. Simple Relations
The Pearson correlation, as reported, only establishes tt-at a
relationship exists, to what degree, and whether it fa positive or
negative. What degree of confidence we can have that the observed
association is not due to chance (significance) can be easily
calculated. These coefficients are appropriate for exploring a set of
data when theoretical expectations are absent or minimal. They cannot
be interpreted as indications of causal order, especially in the
absence of a theory. They are used in this report to establish bench-
marks for more complex analyses building up toward testing of causal
assumptions.
Some simple, bivariate carrelationa are presented here to
substantiate and extend the discussioa in the main text.
To begin, the overall crime rate index reparted in the main text
hides same important differences due to type of crime. Table 7 shows
four of the crimes that make up the crime index and their simple
correlations with the different types of adult businesses. Table 7
shows a fairly great range of correlation between type of adult
establishment and type of crime. In particular, note the significant
positive correlation between beer bars and residential burglary as
cou~pared witi~ the significant negative relation of liquor and Class ~
bars with residential burglary. These figures illustrate the impact
of zoninb policy. The relatively high correlations between sex
businesses and corsmercial cri~aes nay indicate that these businesses
b-Z
rr,. n
are located in relatively undesirable commercial areas, an interpreta-
tion substantiated by the fact that sex businesses are significantly
related to percent of commercial vacancies as shown in Table 8.
Table'7: Pearson Correlation Coefficients:
Adult Entertainment Establishments
and Selected Crime Rates, 1979
Assault
Rate ieesidentia
Burglary
Rate Commercial
Burglary
Rate Commercial
Robbery
Rate
All adult busiaesses .1889' -.1010 .0937 .0317
Sexually-oriented
businesses .187b* .0848 .3096e .3003*
Alcohol-serving
businesses .1258 -.1239 .0315 -.0315
bear .1173 .1008* .1210 .1054
Line -.035b -.0225 -.0907 -.0629
Class A .0951 -.2365* -.0197 -.U869
Class 8 .24$7* .1402 .1054 .12bb
Class C .132 -.518 .0565 -.0191
Beer Class A .0357 .0555
Class B .Z330* .2701*
Class C .01179 .1412
Wine Class A .0195 .0333
Class r. 1~(.A. N.A.
Class C -.0401 -.lUb6
Liquor Class A .U45b -.LOyO
Class b .1273 .0722
Class C .1175 -.0873
~:~...~aa,. ~.
ti _ ______ ~~ ~..~ .vim +c.Fi V~ VCLLGi
B-2
A
Next, Table 8 gives the simple Pearson correlations between types
of adult businesses aad various measures of business and city policy
affects. Specifically, the food service measur~ament and three dif-
ferent measures of commercial activity in a tract are related to adult
businesses. Again, clear confirmation of the fact that different
types of adult entertainment cluster in different areas in response to
zoning policy is given. Far example, liquor bars cluster in areas
Where the overall proportion of the tract that is commercial is high,
but they era negatively related to number of non-manufacturiag
bw inassus. Both of these results may reflect the seven-acre zoning
requirement for liquor bars, since many seven-acre zones include some
manufacturing or wholesaling establishments.
Table b: Pearson Correlation Coefficients:
Adult t;ntertainmeat Batablishments '_
and Measures of Policy lnfuence
Proportion
of business
predominantl
' food
Proportion
of Tract
Commercial
number of
non-menu-
factoring
businease Proportion
of Com-
mercial
kroperty
Vacant
All adult businesses .25b5 .4219* .4030* .2081'
Sexually-oriented
businesses -.0486 .0873 .0453 .2457*
Alcohol-serving
businesses .3212* .3960* .4290* .1736*
Beer -.1183 .0925 .2375* .0422
Wine .61b3* .2825' .3994* -.0042
Liquor .3259* .4023* -.331tS* .16U9*
class a .3U76* .3410* .3063* .lfits7*
Class b .0'!27 .16U3* .1457 .1774*
Class C .2b7~i~ .3bb9* .4Sb9"~ .UbIS
~a ., ~ _
--v---'--..•••- •~~ ••••~ •v~ +cva:i tic ua[GtlG.
B-3
Finally, Table 9 shows the relations between the measures of
nei~,hbortsood deterioration -- crime and housing value -- and the
• control variables.
Table 9: Pearson Correlation Coefficients:
. Measures of neighborhood Leterioration
and Control Variables
Mean Income
Food Business
Commercial Concentration
Mean itouaing ~ Crime Rate
Value Index
.46~r;* -.~zlb*
.4856* -.0676
-.1631 .484U*
*~ignificant at tlse .OS level or better.
Ona general conclusion to these figures is that the various adult
businesses relate to their environments differently. Sexually-
oriented businesses appear to be related relatively strongly to
several different measures of neighborhood quality, including commer-
cial vacancies. These establishments apparently are not generally
located in tracts that arts heavily commercial as defined by the Polk
index. beer bars are similar in this respect, since they appear to be
located in less commercial areas. Beer licenses also have a relatively
strong association with residential burglary. Liquor bars, on the
other hand, are located in Heavily commercial areas, and exhibit loner
correlations with housing value or residential burglary than beer
bare. Finally, sexually-oriented businesses appear more likely to be
located in tracts with high comc~ercial criiae rates, even though these
tracts are nut the ones with the highest cuncentrattons of cnramercial
uses.
b-4
B. Statistical Controls
(1) Partial correlations: in this portion of the report, partial
correlation is used to elaborate the patterns found among the simple
correlations, and to demonstrate how the actual effects of several
variables operating simultaneously can alter a simple relationship.
Statistically, partial correlations are correlations between the resi -
dual variances of two variables after the variance in each of them
accounted for by one or more third variables has been removed. Thus,
over-interpretation of partials may reault.if true causal connections
are violated: the statistical operation removes the effects of
control variables before it assesses the residual relationship between
the two variables of interest. This is analogous to a causal assump-
tion that the coatrol variable precedes the other variables in causal
ordering. In the section on causal inference we make use of this .
property to evaluate some assumptioas about the causal ordering among
the variables. In the present section, however, the partials are only
used to examine the relationship between adult business and neigh-
borhood quality when presumably relevant variables are controlled.
(2) Multiple regresaian: multiple regression permits us to move
a step beyond the Pearson and partial correlations because it not only
helps establish that an association exists between two (or several)
variables, it also provides an estimate of how much change in one
variable is associated with a change in a second variable. Thus it
dives an Qstimate of the relative importance of the several indepen-
dent variables in accounting for the variance of the dependent
variable.
B-S
The independent variables used in the multiple regressions reported
here and in the main text were selected in part by initial step-wise
regressions which help identify those variables that account for the
larbest proportions of the variance in the dependent variables. This
exploratory technique helped to identify the variables which were then
used in tlia further simple multiple ragreeaion• reported.
Because this approach doesn't necessarily yield the most meaning-
ful squatione, mostly because of the implicit causal assumptions in
the slap-wise technique, additional criteria were used to select the
independent variables. These included evidence fro' the partial
correlation analysis, substantive considerations, and statistical
requirements. The variables utilized in the partial correlation
analysis are good candidates because we have reason to believe they
era relevant to policy deciaioa made about adult entertainment, and
they obviously change the relationship betxeen adult entertainment and
neighborhood quality. In addition to these substantive
considerations, the variables selected have been used in other studies
for similar purposes. For example, income is frequently associated
with housing choice, both foc sociological (e.g., class preferences)
and institutional (e.g., mortgage requirements) reasons.!
Finally, variables were selected to meet certain statistical
requirements. The primary interest here was to avoid multicollinearity.
Technically, this 3s a problem that occurs in multiple regression when
a set of independ~tnt variables contain some relationships with high
1J. .lnthony, "The bffect of Income and 5ocio-Economic croups on
housinb c:hoice," citeu in +lichael ball, "Recent hmpirical Work on the
lleterminanta of I.elative Lousing Prices," Urban Studies 10, 1373,
P • 23'L . Also see p. 231 in !;all's article.
B=6
correlations brtwecn them. The effect of this is to make the coef-
ficients derived to estimate tt~n association of an independent
variable and the dependent variable unreliable, i.e., containinb a
high degree of error that results in different estiQates from one
sample to the next. If tt,e objective of the research is to estimate
the to tai relationship (lc or k2), multicollinearity is uautslly thought
to pose no problem. However, we are interested here in comparing the
effects of different variables on the dependent variables, so we want
to avoid multicollinearity. The regrassiona reported in the main text
use two variables that are correlated Fairly high: mean houshold
income and percents&e of units in an area tt~iat are commercial. The
simple Pearson correlation is -.635li, which may be high enough to
cause trouble. In our judgment, the value of continuity in the pre-
sentation and analysis, and the intuittve value of both variables,
out-weigh the danger of the multicollinearity.l
Some further multiple regressions using variables with little or
no correlation among the independent variables were also run. The
contribution of the adult entertainment variables is not improved.
Other rearessions were run which permitted the computer to select the
variables according to the total amount of variance explained. In
aevaral of these, the adult variables achieved significance with
respect to crime, but always with lower crime. These war~a rejected
since they permit high multicollinearity among the variables, and thus
the particular coefficients are uninterpretable.
lkefer to tEie variables 'List and correlation aatrix in appendix 6.2.
$y convention, correlations greater than .6 are considered possibly
important sources of multicollinearity, to be avoided if possible.
B -7
Multiple regression produces several different coefficients and
test values that must be understood in order to interpret the
regression. The brief definitions to fallor~ can serve as an introduc-
tion to these terms and as a justification far their use in this
report. Only those terms useful in understanding the report are
defined:
(1) b - the ordinary partial regression coefficient: The
coefficient b is the estimate of the amount of change that occurs in
the dependant variable for each unit change in the independent
variable it modifies.
(2) Error of b - Thia is the standard error of b, the regression
coefficient. It is the standard deviation of the dependent values
predicted fro~u that b and its independent variable, taking the
number of cases into account. The standard error tells ua hov much
uncertainty there is in predictions based on the regression coefficient.
It is the basis for the significance test.
(3) Beta weights: This is the standardized regression
coefficient. It is obtained by multiplying the ordinary regression
coefficient by the ratio of the standard deviation of tht independent
variable to the standard deviation of the dependent variable. The
point of doing Chia is to transform the dependent and independent
variables into unite of measurement that are directly comparable -- in
this operation the unit of measurement for all variables becomes the
standard deviation. TliereEore any change of so many standard
deviation units in one independent variable is associated wit[i just so
much chaube in similar units of the independent variable. The inde-
pendent variables can thus be directly coiopared for the mabnitude of
E-8
their impact, which is a major point of interest in this report. when
the beta weight approaches zero, there is little or no relationship
between two variables.
(4) Significance: This is a teat of the confidence we may have
that a regreeaio'n coefficient (standardized bats weights or ordinary
b's) is actually different from zero. The cloeer to zero the signifi-
cance test, the more confidence can be had that the regression coef-
ficient is a good estimate of the relationship. The conventional
minimum level of significance for accepting a relationship is .05,
which is used in this report.
(S) k is the multiple correlation coefficient that measures the
overall strength between the dependent variable and the combined inde-
pendent (including control) variables. It is analogous to the simple
Pearson correlation coefficient, and can be interpreted similarly.
(b) kZ is the squared multiple correlatioa coefficient, and it
measures the proportion of the variance of the dependent variable
accounted for by the independent variables.
(7) significance of R: describes the confidence we can have that
the multiple correlation coefficient is sufficiently different from
zero.
C. Tests for Linearit
11+o tests. for linearity were made on tl:e results of the analyses
described above: standard analysis of variance tests on the bivariate
relationships between measures of nei~yhborhood quality and adult
entertainaent establishr,ents, ono an~examination of residuals for
selected multiple regressions.
Some researchers suggested that concentrations of adult businesses
may have disproportionate effects on measures of neighborhood quality.
9
Figure A presents this "non linear" Hypothesis. If the data do match
this hypatl~esia, there are two consequeaces. First, it means that
concentrations of adult business are increasingly bad for neighborhoods
as concentration increases, and second, that the common statistical
techniques, such-~as linear regression, must be modified.
P'i use A; Gra hic Re resentation of the Non-linear k otheai
of t_he Relationship Between Adult Businesses aad
Neighborhood Leterioration ~~
high
Deterioration
Low
Fortunately, the analysis of variance tests for linearity made on
the bivariate relationships, and insl,ection of regression residuals,
confirm that the relationships are linear. Presumably, Figure B is
closer to the farm of the true relationship. Figure 8 indicates that
adult businesses' effects on neighborhoods, if any, would increase in
direct proportion to the number of establishments.
Fi ure $: bra hic ke sesentation of the lion-linear H othesis
of the kalationship Between Adult Businesses and
Nei hborhood Leterioration '
hi&h
Deterioration
'-- -'
Low
Low r~igh~
Concentration of Adult (iusinesses
B-10
,.
Concentration of Adult Businesses
The analysis of variance test is an F-test that is based on a com-
Narison of the correlation ratio, ~ta2, with the squared correlation
coefficient, r2: The formula for the teat ia:
-~ k ) K-2) ,
where t~ is the somber of cases and k is the number of categories
(greater than 2) into which the independent variable has been divided.
If the relationship is not linear, the F'-teat should yield a signifi-
cant result.l
Inspection of residuals in this study aiinply involved visual
inspection of scatterplota of residuals for each case (tract) against
the estimated value of the dependent variable for that case. More
sophisticated tests were not deemed necessary given the lack of non- '
linearity in the bivariate tests and no apparent deviations in the
residuals scatterplota.
11• Anal sis of Causalit
The path analysis technique used here i8 a way of comparinb either
regression coefficients or correlation and partial correlation coef-
ficients to determine if the pattern of relationships in a data set
era consistent with theoretical assumptions. the theoretical assump-
tions or hypotheses are a critical element in this technique: it is
only by making these assumptions that causal inferences can be made.
The results of the tests provide either falsification of the model
being tested or circumstantial evidence to support it. Using this
technique it is possible to compare several different models
LFoc example, see any edition of li. ti. lilalock's social Statistics.
13-11
_~
(assuraptiona about causal relations in the data) to see which one is
most consistent with the data.Z The approach has the advantage that
it is possible to make causal inferences with cross-sectional (one
time only} measurements. Since the data available cannot provide
enough observations over time to do reliable time-series analyses,
this advantage is derisive in this report.
It is important to have soma passing acquaintance with the path
analysis technique used hare. Figure G presents a simple model of
the relationships between three (unknown) variables. The arrows
represent causal connections we expect on the basis of some theory:
logically, there are many different possible seta of relationships
among these variables, but we have eliminated all but the one shown Sn
Figure C. Next, the model has to ba tested against empirical measure-
manta to eau if the hypotheses it represents are consistent with data. '
Figure C: Simple 3-Variable Path Diagram, With Predictions
. ~~~ Y
x ~.`
_,, _`~
z
Predictions
ryz ~ rxy rx z
ryz.x . U
1Ttie standard introductory reference Eoc tine technique is 1:. P1.
l~ilalock, Causal Inferences in iv'onex erimental Research (Chapel krill:
University of i+ortie Carolina F'r~tae, 19b4).
8-12
r ..~
Specifically, the model in Figure C asserts that variable X is the
cause of both X~aad Z, but that there is no direct connection between
Y and Z. Mathematicians have shows that these hypotheses translate
into pcedictions''about the behavior of simple and partial correlation
coefficients, and regression coefficients. These predictions are
shown beneath Figure C. The first prediction is that the simple
correlation coefficient between Y and Z (ryz) should equal the product
of the correlations between X and Y and X and Z.1 The second predic-
tion is that the partial correlation between Y and Z controlling for X
{ryz.x) should be zero. In other words, the model says that any
observed correlation between Y and Z is spurious; that is, it is due .
to the fact that X is related to both of them. The predictions
reflect this hypothesis. .•.
If the predictions do not match the evidence, then the hypothetical
model can be rejected, or modifications can be made to fit the data
better. When the model does Fit the data, we can say that it is
provisionally correct, until further evidence comes along that
disconfirma it.
Figure U shows the pattern of simple Pearson correlations among
the variables used in the path analysis in the text. Figure D inclu-
des the variables for overall neighborhood quality and adult
establishments for 1970. These correlations form the basis for the
path analysis.
lAsauminb (1) the model is correct, and (2) the effects of
measurement error are raudum and negligable.
B-13
~_
b'igure I~: Pearson Correlation Coefficients
Amonb Path Analysis Variables
Neighborhood -.3524 Adult bstablistu
./c~uality\197 1970 /~.
`;
.9726 - 3818 -.3409
.~ ~ ,,:
/ ~'~ ~
/ ~-~ ~ ~
~\ .8574
•~
f
J~ ~/
~, r
NeighborhoodY-''^' -.3962 Adult Establisthments,
l~ualicy, 1979 ~ ~ 197y ~,
~` ~ - ~~
nts,
.2ti60
.. _~
'~ '~--~ - .1320
.3235 -. 623ti ..~ .1962
~_
,,\
~\ `~..
Eiousing -.5231 _ `'~ jCrir~e Index,
Value, 1979 1979
The decision was made to use only the data for 1979 as (I) the
measurements Eor 1970 were not identical to those for 1979,
(2) there were too few observations to do a genuine time series
analysis, and (3} the 197U neighborhood quality meausre and the 1970
adult busiaess measure were very highly correlated with their 1979
counter parts. This last point means that, in this context, we cannot
assumr that the measures' error [arias are uncorrelated across time,
making inference based on the relationships between them
im~,e r~nissab le .
8-14
1'he correlations in Figure D are co~apatible with many sets of
assumptions besides tiie ones used in the text. however, the assump-
tions used were chosen because they are reasonable and they do reflect
the substantive issues at stake.
Among the alternative assumptions that could be caade here, see
Figure ~;. For instance, if adult businesses cause general neigh-
borhood quality, which in turn causes housing value, as in the Figure
shown here, then the correlation between the quality index and housing
value should drop to zero. however, this test on the data only
chan~yes the observed relationship between the quality measure and
housing value from .3235 to .2980. The hypothesis is clearly
disconfirmed. This matches the expectations of common sense in this
case.
Figure E: Some Alternative Causal Assumptions
t:ei$hborhood 4uality Index 4>> ,
~~ __~-
}~ _=--'} Adult 8usineases
~iousin}~ Value
8-15
,,~
Appendix B.2
List of Variables for P:ei hborhood Deterioration Stvd
Variables 45 throubh 70 refer to 1979 data. Variables that be~ir,
with "YP1" are taken from the Property Management System. 4ariables
that beSin with "Pb" are from the I97l~ Polk City Lirectory.
REL VARIABLE VARIAF+LE LABEL
F'OS NAME
i SEfiNUM
2 SUBFILE
3 CASWGT
4 TRACT
5 V12
b V17
7 V20
8
9
10
I1
12
13
14
15
16
17
18
19
20
V111
V112
V113
hEMO1
FOLK2
F'OLKb
FOLKS
F'OLK9
POLKIi
POLK12
F•OLK1f-
XTRACT
YTRACT
TOTAL NUM&ER OF 1-IOUSING UNITS
TOTAL OWNER ~ICCUF'IED
T07AL F:ENT6R OCCUPIED
FCT RESIbEN7S STABLE 1965-1970
FCT HOUSING UNITS OCCUPIED
FrT OWNER OCCUPIED
TOTAL P'OP'ULATION
TOTAL COML STRUCTURES F•ER CENT OF ALL
TOTAL COML. UNITS CURRENT COUNT
NET CHANGE COML. UNITS DURING PERIOD
ENO. Cor~L. UiJITS WITH CHG. OF OCCUPANTS
VACANT COML UNITS CURRENT COUNT
F'ER CENT OF TOTAL COML UNITS VACANT
TOTAL NOi~r-MFG. FIRMS CURRENT COUNT
X-COOF:I~INATE OF TRACT CENTER
Y-COOF,I~INATE OF TRACT CENTER
b-16
~ ..._.
REL ':i+F~i-.E~LE "'gyp„~I,;bLE L,:bEL
FOS r~aME
Z1 UISTCPU E~ISTANCE OF TRACT CENTEfi 7p II~S TOwcR
22 fiATEFl FkEdUENCY OF CRIME - SEX fiEfrATEEa CkIMES
23 f~ATEF2 FRE[?UENCY. OF CfiIME - STREET ASSAULT
24 fiATEF3 FRE(7iJENCY OF CRIME_ - STREET RRF~PEkY
25 fiATEF4 FREQUENCY OF Cf,IME - fiES E<UfiGLE,kY
26 fiATEFS FFEOUEI~CY OF CfiIME - COMM RUf;GLAfiY
27 RATEF6 FfiEL7UENCY OF CRIME -- CRMM ROBREfiY
28 RATEF7 FfiE(2UEi~CY OF CfiIME - VAi~I~ALISM
24 RATEFB FREnUEriCY OF CfiIME - AUTO .THEFT
30 AFEA AfiEA IN 5(~UARE MILES OF TRACT
31 OWNVM I:E4N VALUE OWIlEfi OCC kES UNIT
32 MEANI MEAN FtiM ANU UNREL INCOME
33 HAGEF'CT1 F'CT RES STR HUILT 1SSS-70
34 HAGcF'CT2 F'CT fiES STR RUILI 196.=1-68
35 HAGEF'CT3 F'r.T f.ES STfi BUILT 19b0-64
36 HAGEF'CT4 F'CT FEES STR E+UILT 1450-~9
37 HAGEFCTS F'CT RES STfi F+UILT 1940-49
38 HAGEF'CTb F'CT RES STR E{UILT L+EFOfi 1940
39 FACT01 CfiIME RATES FAY OF'F` - 1 2 3 7 8.
~40 FACT02 CfiIME RATE RY OF'F' - 4 5 b
41 ZV17 2 SCORE X OWNER OCCUF'F'IED
42 ZI~EM03 ZSCORE Y. FAF'ULAT ION WHITE
43 2rlEANI ZSCORE MEAN' INCOME
44 NEIGH 3 TYPES OF NEIGHHOfiH00US t~ERIVED FROM T.
45 F'riBSF TOTAL. SINGt_E FAMILY UiVITS
46 F'M8UT TOTAL LiUF'LEX-TRIPLEX UNITS
47 Fri8MF TOTAL MULTI-FAMIUY UNITS
48 F'MBHSF TOTAL HOMESTEAD SINGLE FAMILY UNITS
49 F'MBHUT TOTAL tiU-TkIF'LEX HOTiESTEtib UNITS
v0 FMBHMF TOTAL HOMESTEAI- I'tULTIFAMILY UNITS
S1 F•H8A1 % TOTAL SF E+UILT E~EFORE 1940
S2 FM8A2 X TOTAL SF BUILT 1940-1959
53 F'M$A3 is TOTAL SF I{UILT AFTEfi 19b0
S4 F•M8C1 %TOTAL SF WITH COiJt~ITIO~! 4,5,
~~ F'M8X1 SUIT Af;EA CODES BY TOTAL SF UNITS
~b F'M$X2 S~JM 8F AL[i AREA &Y TOTAL SF UNITS
57 F'M8X3 GRA OF COI`fMEF:CIAt ELY TOTAL COriMEt.CIAL
i+-1
.~..
REl '~~~ i ~•~+LE :',;~ I ~~i+LE L,.HEL
FOS TAME
~8 F'ri8X4 SUri LOT AfiEA OF SF I~UF' TkIF'LEX
S9 F'1~l8X5 SUM LOT AFEA FOR UNI T5 WITH ~+LF'NF, I~'OT =C
60 F'M8X6 SUM LOT AkEA FpR UNITS WITH ALPHA = C
dl FM8X7 SUH LOT AREA FOR ALL U?SITS
b2 F'Ii8X8 SUM riAF:KET VALUE SF FY TOTAL SF UN 1 TS
63 F•M8X9 SUIT EMV COMI1EfiC IAL BY TOTAL COrihSEF~C IAL U
64 F'H8X10 SUM FLD COKES E+Y TOTAL SF
65 V8111 NSF fiCT STABLE
bd V8122 NSF' F'CT UNITS OCCUF'F'IEL+
67 F'8LK2 ~C COTS~fEr;CIAL UNITS
68 F•BLKd SUM COIiFiEFtCIAI UNITS
69 F'8Lt~8 CHANGE COF1riEfiCIAL UNITS
70 F'8LK9 X COMMEkCIAL UNITS CHRNG OF OCCUF'iaNTS
71 F'8LK11 VACANT COIiIiERCIAL UNITS
72 F•8LK12 ;L VACANT COIiMEkCIAL UNITS
73 fiBLKld TOTAL NON-MAi~1UFACTUfiIiJG FIkMS
74 F'$LKH TOTAL HOUSEHOi.US _
75 F•BLKAH AVE SIZE HOUSEHOLLS
76 F'8LKIH AVE HOUSEHOLD INCOME
77 FAR7A FEER FAfi 1970 CLASS C
78 RAk78 FEER BAR 1970 CLASS $
79 FAk7C BEER BAR 1970 CLASS A
80 FAR7D WINE BAR 1970 CLASS C
81 BAR7E WINE FAR 1970 CLASS $
82 BAR7F WII~lE RAR 1970 CLAS5 A
83 FAR7G LIQUOk E+AR 2974 CLASS C
84 $AR7H LI[iUOR FAR 1970 CLASS B
85 I+Afi7I i.I(?UOR FAfi 1970 CLAS5 A
86 Gri0V7 GE~~EFiAL riOVIE 1970
87 SUAIVA7 SUANA 1970
88 -~MOV7 AI+ULT MOVIE 1970
89 I~BK7 AL+ULT FOOKSTOF:E 1970
90 F'OOL7 F'OOLHALL 1970
91 FAfi8A FEER FAR 1980 CLASS C
92 8Ak8H FEER FAfi 1930 CLASS $
93 FAfi8C BEER FAR 1980 CLASS A
94 HAfiBD WINE FAfi 1980 CLASS C
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F'RORLEM RAR 1980
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TOTAL CSC 1980
STREET FORBEfifiY 1980
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138 EF'OP
139 CRI~EXBR
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141 REEk
142 WINE
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144 REER7
145 WI1~1E7
I46 L I (lUOk7
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149 BARS?
.150 HUfiCTMF
151 AREAMMF
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155 TYF'EA
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SUM OF KESI[rENTIAL CRIMES 1979 fiATA
SUM OF 1990 EARS WITH DEER LIC.
SUH OF 1980 FsF+f.S WITH WINE LIC.
SUM OF 1980 EcARS WITH LIQUOR LIC.
SUM OF 1470 MARS WITH BEEF. LIC.
1970 WINE LIC.
SUM OF 1974 LI(?UOR7 LIC.
SUM OF 1980 SUANAS+AL~ULT MOVIESr
SUM OF ALL 1980 FsARS
SUIT OF ALL 1970 BARS
F'MBMF BY fiM3SF~F'M8IiTtF'J13MF
F'M8X5-F'M$X4
CONI~ENSEL kAFiS
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EFOF'8 DIVIUFD HY AREA
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1980 FiARS WITH Cl.ASS A L I fiUOR LIC.
1980 BARS WITH CLASS B LIA. LIC.
1980 BARS WITH CLASS C LIO. LIC.
1970 BATS WITH CLASS A LIR. LIC.
1970 bAfiS WITH CLASS B LIp. LIC.
1970 PAf:S WITH CLASS C LI(i. LIC.
RATEF4~k1000 IsY [~EIiOi
ATEFS*l000 by I~EM01
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V
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F'OS t~A~1E
!69 tiF'8LK12 F•8LK1~-F'OLK12
170 UF'B~KIV F'BLKIi~1-?1EANI
171 LF'M8X8 F'M8X8-DWNVM
172 UF;PUFG kBUFGBR-RBURG7R
173 [~BBUFG
174 DBF;OB BhOBBF:-BROE+7R
175 L~F:AF'E FiAF•E8F-RAF'E7Fi
176 DASLT ASLTAR-l~SLT7R
177 Ii1ARS BAF:S-BAFS7
178 LiBEER BEEF-BEER7
179 [WINE WINE-WINE?
180 DLLQUOR LIQUOR-LIOUOR7
181 tiTYF'EA TYF'EA-TYF'EA7
182 GTYF'EB TYF'E8-TYF'E7B -
183 L~TYF'EC TYF'EC-TYF'E7C
184 FOOL~F'CT FOOUB BY PAF:S - .
185 FACTOk7 FACTOR SCOkES FROH NEIGHBOF:HOOI~ VARIAPLE
18b FACTORS 1980 FACTOR SCOF:ES FfiOM NEIGH. VAR.S
i:-.~ t
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Appendix A
Page 1 of 19
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 Analysis. 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 researching six areas containing adult businesses and six similar 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, Larceny, 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
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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
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 crimes. Sex-related crimes occurred four times more frequently in predominantly
residential areas than in areas that were substantially commercial in nature.
Appendix B
Real Estate Impacts
Methodolo~y. 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 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 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 AIREA 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 regarding the appreciation of residential
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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 market 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 market performed typically for the period of time in
question."
The tabulated results of the professional appraiser survey are 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.
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%
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~_
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Residential Property
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
Page 4 of 19
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
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100%MSA
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
Page 5 of 19
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
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deteriorated neighborhoods; and the feeling that the effect of only one adult
business would be inconsequential.
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 area; 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 area and the subjective value of area residents. Some felt that
development standards 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 paralleled those of the national survey. Two
additional responses are 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 area. 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
area.
B. LOS ANGELES, CALIFORNIA
In June, 1977 the Department of City Planning of the City of Los Angeles
published a report entitled Study of the Effects of the Concentration of Adult
Entertainment establishments in the City of Los Angeles. The study includes an
evaluation of the impact of adult businesses on both crime rates and property
values.
Incidence of Crime
Methodolo~v. 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
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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.
Results. The City's study monitored trends in Part 1 crimes. Part 1 crimes include homicide, rape,
aggravated assault, robbery, burglary, larceny, and vehicle theft. The number of reported incidents
of Part 1 crimes in the Hollywood area increased 7.6 percent from 1969 to 1975. This was nearly
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; compared 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
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 announced 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 1/2 times greater than the city wide average. In 1969 pandering arrests in the Hollywood area
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 area.
Real Estate Impacts
Methodolo~v. The study prepared 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 areas having concentrations of adult businesses and for appropriate
control areas. The report selected five study areas containing 4 to 12 adult entertainment
businesses. Three study areas were in Hollywood and the other two were in the San Fernando
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valley. Four control areas, having no adult businesses were selected. The study examined properly
assessment data, U.S. census data, 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.
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 prepared. 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 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 a lesser rate than similar areas having no adult businesses. However,
the report noted that in the opinion of the planning staff there was insufficient
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evidence to support the contention that concentrations of adult businesses have
been the primary cause of these patterns of change in assessed valuation.
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.
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Respondents to the appraisers' survey commented that the adverse effects are related to the degree of
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 are compatible with adult entertainment businesses (e.g.: other adult businesses, bars). A
high percentage of appraisers and realtors commented on the adverse effect of adult businesses on
neighborhood appearance, litter, and graffiti.
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 area. 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.
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 are garish 1 sleazy, shabby, blighted,
tasteless, and tend to increase the incidence of litter and graffiti.
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Testimony received at the two public meeting on this subject revealed that there was serious public
concern over the proliferation of adult entertainment businesses particularly in the Hollywood area.
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 CRIMES
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
Aggravated Robbery/Deadly weapon
Attempted Aggravated Robbery/Deadly Weapon
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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
Burglary of a Residence
Attempted Burglary of a Residence
Burglary of aNon-Residence
Attempted Burglary of a Nori-Residence
Theft
Burglary of a vehicle
Burglary of aCoin-Operated Machine
Theft from Auto
Theft of Auto Parts
Pocket Picking
Purse Snatching
Shoplifting
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Theft of Service
Theft of Bicycle
Theft from Person
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
Page 13 of 19
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Aggravated Prostitution of Prostitution
Compelling prostitution
Sexual Abuse
Aggravated Sexual Abuse
Attempted Aggravated sexual Abuse
Public Lewdness
Indecent Exposure
sexual Abuse of a Child
Attempted Sexual Abuse of a Child
Indecency with a Child
Incest
Solicitation
Appendix C
COMPOSITION OF STUDY & CONTROL AREAS
BY ZONING DISTRICT
Area One II Area Two II Area Three Area Four
Study Control Study Control Study Control Study Control
1-SF-3 ~~ ~~ ~~ ~~ 2.92
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SF-3 18.78 26.97 25.43 22.31 33.26 47.29 22.49 22.39
SF-3-H
MF-2 3.30 2.64 .77 2.32 1.72
MF-3 .94 1.93 1.38 7.88 2.64 1.03 1.00
MF-4 .28 2.69
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
GR .98 .34 7.40 2.27 1.12 .77 1.55
LR .54 .89 .37 3.78
LI 3.62
AVIATION 3.05
UNZ
ROAD ROW 22.59 22.33 17.65 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
Appendix D
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QUESTIONNAIRE
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.
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 recently 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 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% or more
1) How would you expect the average values of the single-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?
3) How would expect the average values of the single-family residential property within three
blocks of the bookstore to be affected?
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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 residential 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.
Store-Front Church Drug Rehabilitation Center
Pool Hall Ice Cream parlor
Welfare office Video game parlor
Neighborhood Tavern Adult Video Arcade
Record Store ~ Topless Bar
Medical Office Massage parlor
Branch Library Adult theater
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6) In general, to businesses affect what degree do property values?
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7) Why do you feel this way?
8) Are you affiliated with a professional real estate appraisal
organization? If so, please specify.
OPTIONAL: Name and Name of Firm
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