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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 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 5 of 102 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.) http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 http://www.communirydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 7 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 8 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 9 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 10 of 102 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" http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 11 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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) http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 13 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 16 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 17 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa Page 18 of 102 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; http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 19 of 102 - 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 20 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 21 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 22 of 102 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. http://vwvw.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 23 of 102 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; http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 24 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 25 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 26 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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) http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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) http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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: Page 30 of 102 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. http://www.commttnitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 32 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa Page 33 of 102 - 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 34 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 35 of 102 - 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 36 of 102 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). http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 37 of 102 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%) http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 38 of 102 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 12/11/2007 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? http://vvww.communitydefense.org/cdcdocs/landuse/html/cala.html CAIa 83 (14.3%) Yes 177 (30.5%) No Page 39 of 102 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). http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 40 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 41 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 42 of 102 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? http://www.communitydefense.org/cdcdocs/landuselhtmUcala.html 12/11/2007 CAIa 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 Page 43 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa More than 1000 feet 1 (2.8%) 28 (77.8%) 7 (19.1%) 36 Page 44 of 102 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: http://vvww.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 45 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa Total no. of responses = 32 Page 46 of 102 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 http://vvww.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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) Page 47 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 48 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 49 of 102 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..." http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa Page 50 of 102 "...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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html Page 51 of 102 12/11/2007 CAIa 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 Page 52 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Page 53 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 54 of 102 "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% http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa TOTAL 288 207 -28% DECEMBER 31, 1976 Page 55 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 56 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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 Page 57 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa Hollywood Area Ci wide *Part II Offenses 1969 1975 % Change 1969 1975 % Change TOTAL 10660 15503 +45.4 179233 185417 +3.4 Page 58 of 102 "(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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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) Page 59 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa 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 Page 61 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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) http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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. http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Comments/Examples: Page 65 of 102 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: http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 66 of 102 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) http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Please list specific examples relating to any box checked, immediately above. 3. What are the hours of operation of your business? Page 67 of 102 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? http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 68 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa (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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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? http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa Page 71 of 102 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.) http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 72 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 73 of 102 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.) http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa EFFECT ON SURROUNDING RESIDENTIAL PROPERTIES 7. What effect does the market value of private establishments? Page 74 of 102 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.) http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa Page 75 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Less than 500 feet 500 -1000 feet More than 1000 feet Comments/Examples: (Please cite effects and provide available data.) OVERALL EFFECTS Page 76 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa 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 Page 77 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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? Page 78 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 80 of 102 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 http://vvww.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 81 of 102 178 (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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Page 82 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa More than 1000 feet -- 142 (95.9%) -- 148 Page 83 of 102 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. http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa Comments indicate concern for: 1. personal safety, e.g. assaults 2. moral effect on children 3. safety of property, e.g. vandalism, robbery, etc. Page 84 of 102 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 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 85 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 Page 86 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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 Page 87 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 88 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 89 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11 /2007 CAIa 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 Page 90 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 91 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 92 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 93 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 94 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 Page 95 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 96 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 Page 97 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 98 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11 /2007 CAIa 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 Page 99 of 102 http://www.communitydefense.org/cdcdocs/landuse/html/cala.html 12/11/2007 CAIa 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 Page 100 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 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 Page 101 of 102 http://wvwv.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 CAIa 0 7.7 6.5 5.5 7.5 Page 102 of 102 http://www.communitydefense.org/cdcdocs/landuse/htmUcala.html 12/11/2007 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 http://www.communitydefense.org/cdcdocs/landuse/html/azphoenix.html O 1 /10/2008 Page 2 of 13 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. http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 3 of 13 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 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 4 of 13 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 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 5 of 13 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 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 6 of 13 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% http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 7 of 13 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% http://www. communitydefense.org/cdcdocs/landuse/htmUazphoenix.html i 01/10/2008 Page 8 of 13 0 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 9 of 13 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. http://www.communitydefense.org/cdcdocs/landuse/html/azphoenix.html 01/10/2008 Page 10 of 13 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 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html O 1 /10/2008 Page 11 of 13 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. http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 12 of 13 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) http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html 01/10/2008 Page 13 of 13 0 http://www.communitydefense.org/cdcdocs/landuse/htmUazphoenix.html O l /10/2008 ~! ~ `~ - 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 ~9 _~ ~/: ~ ~.J r a ~ ~ ~ ~ a ~ A fA (~p+ ~ y~ V7 R M1 kW + • p~ ~ m N~ r h t~ ~: h Rt ~• ~r ~ R nK R >`i N M A FL t A ~ pt ~ ~ y v ~ r+ 1 ~~ ?~ ~ -+~ ~ ~ r ~1 .. ~~ y WOC r~ y ~ $ +-. w r 1 I I A V~ O~ V N ~ ~Q ~j ~ ~Opp N ~ +~ ~ ~ c~Fc N A ~Q ~D ri W p.. .. V 1r ~ ~s° m ~ I ~~~ s $~~ ~ ~~. ~.+' ~'' :c ~'e -aw ~ ~ " q ~.. .. a "'w ~ QQ ~i~i~ w v N 4y'. H r. n ti 7Q rpm 7 n R n r Fii Q .~ s ~' e y F" O ~ ~~ ~, ~ ~ w A ~ ~ t~,,, m ' ~ r A Oe ~ gyp,,, ~ ~ ~. ~~ R 1!~1!~ H ~7 ~ r n ~ I ~ ~ ~ r ~ tr W A • ~ C ~~ 8n~o ,,,~ °+ °' ~ ~ b b~ b+ vo"+ ~ ~8~ m ~~ ~~ :'- ' ~ ~~~ yr °' ~ .... 8 ' c °, ~ R ~ ~~~ a~ ~' ~~~ ~s~ °° Y [ol 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 ~~ ~~ ~ ~ H N~ r ~~~~ ~~~ ~~ C~ w y fir, ~ rt ~. A ~A 4i 1 ~p W N r O 1 Y m ~•e ame ~O'11 (0 ~i :`~ v ~~~ e' ~ 'r M ~ r ~ • Q' n r t+ .. C ~ C ~ r V tT7 C • V ~ r Ji- N ;~ ~ O f0 -r ' '~ R ~ ~ N ,D~ W O K + a m pA R G N • ~C~ NVN O+ W ~O w~ ~G~ V wv ~ ~ ~,~ ~mp ~p , , Q~ ~ ~ W O C G A ~ ~ ~Q 1 i~ ~ S~ ~ ~ a c r~o .» v~ e M A C ~~ ~A F+ ~O ~O~ ., ~' w ~ AA Oe' ~ n ~ N,~. ~~~~ ~~' ~ rt m~ M R ~~~~ ~ CC G~~~ .~ ... w v W ~ ~ o ~~~~ ~+a' ~. ~~~ ~, . ~ .. • ~~ ~ ~~~~ wow ~~~ ~ ~~ w ~' ~~~ ~ ~'~~ ~" ~ ° ~ ., ~ ~~~ a N a G v~ a c r~ 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 k<-; F= kEL v,;~:Itib E F•05 NAME 95 RARBE 96 E~AkBF 97 F+AR@G 98 8Afi8H 99 RABBI 100 GMOVB 10 10 10 10 10 10 to 108 209 210 iil 112 113 114 115 iib 117 118 i19 120 121 122 123 124 1:J lt6 127 128 129 I30 131 I SUANAB z AMOVe 3 DRKB 4 F'QOLB S F'RI+ARB b FOODB 7 sExB QASLTB NASLTB SASLTB TASLTe Rr;F'E8 OCSC8 TCSCB SROE+B Ffi0R8 TPfi088 Bfi0E+8 RBURG$ RRURGS FM800 FMSTRU FMBF'QO EF'OF'$ AsLTSR RAF'E8fi F'KOFeBR , RRO~aR F:EUfiG9R RHUFiGBFi CRI~EXB VAkIAbt.E L,~6EL GtIi~E RAR 1980 CLASS $ WINE E+Afi f 980 CLASS A LIQUOR FAR 1980 CLASS C LIQUOR RAR 1980 CLASS R LIQUOR BAR 1980 CLASS A GENERAL MOVIE 1980 SUAi~(A 1980 AIrULT MOVIE 1980 ADULT ROO~~TOfiE 1980 F'RORLEM RAR 1980 ovE~ sox Faorra isso SEUAL E~VTERTAIi~EME;+tT PAR 1980 07HER ASSAULTS 1980 CRIMES NONSTRANGEfi 1930 AS^aAULTS STRANGER TO STRANGER 1980 ASSAULTS TOTAL ASSAULTS 1980 RAPES 1980 OTHER CfiIMMINAL SEXUAL CONIrUCT 1980 TOTAL CSC 1980 STREET FORBEfifiY 1980 FEFSONAL ROF~I+ERY 1980 TOTAL PERSONAL fiOI+REf:Y L+USIiiESS fiORRERY 1980 AUf.GLARY OF RESICrENCf 1980 HUSIi~IESS BURGLARY # OWNEfi OCCUF•F'IEU TOTAL fiESIIrEiJTIAL UNITS X OWNEfi OCCUF'F•IED EST 1980 F•OF FfiOM FOLK 1980 ASSAULTS F'ER 1000 F'OF. 1980 kAF'ES F'ER 1000 F'OF'. TOTAL PERSONAL fiObbERIES F•Efi 1000 F'OF'. a~USIF~a=ss F;oHKEaIES FFa looo F•oF'. fiESIIrENT KUfiGLAfiIES F'Efi 1000 F'OF'. NUSIt'JESS PUfiGLAf.IES F'Efi 1000 F'OP. 1980 TOTAL CfiIMES ASLT THRU ErIsUFiG I.- 19 w FFL ll~;F<I~,EeIE F'OS I~MME 132 RESF'CT8 133 COMFCTB 134 RAF•E7 13S ASLT7 136 RAF'E7R 137 ASLT7R 138 EF'OP 139 CRI~EXBR I40 'FACTS? 141 REEk 142 WINE I43 L It7U0R 144 REER7 145 WI1~1E7 I46 L I (lUOk7 147 SEXBIZ 14$ BARS 149 BARS? .150 HUfiCTMF 151 AREAMMF iS2 CKAR 153 nENSE8 154 ADULT 155 TYF'EA i~b TYF'EB 1S7 TYF'EC 1~8 TYF'EA7 159 TYF•EI+7 160 TYF'EC7 lb1 RE~URG7R 162 BI+UF:G7R . 163 KROR7R 164 I~V8111 165 [~V81 i 2 16b GFMSF'DO F' 167 C~EF'OF8 E 168 I~F'8L1~2 F' f Vi,f.I,;RLE L-:FEL AfiEA fiESI[iE;~TIAL 19x0 % AREA COMMERCIAL 1980 FRED 1974 RAPES FREt7 ALL ASSAULTS 1974 RAPES F'Ek 1000 F•OP. ASSAULTS F'ER 1000 F'OF. 1974 ESTIMATED F'OF' FROM FOLK 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 AL~ULT 'It VAKIAFLE 081 =1r GT 2 $qR EFOF'8 DIVIUFD HY AREA BARS+SEXI+IZ 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 ATEFb~c1000 BY I~EMO1 $111-V111 8112-V112 M8F'00-V 1 13 F'OF'8 -C~EMO1 8LK2-F•OLK2 R R V V ;,_ ~~. n~.L ~~-,RiABLE Vr,fiIABLE LakEL 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 INCAindianapolis 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 2 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html 12/11/2007 INCAindianapolis Page 3 of 19 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% http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 ~_ INCAindianapolis 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis 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 12/11/2007 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html INCAindianapolis Page 6 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html 12/11 /2007 INCAindianapolis Page 7 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 8 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html 12/11 /2007 INCAindianapolis Page 9 of 19 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. http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 10 of 19 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. http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 11 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11 /2007 INCAindianapolis 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html Page 12 of 19 12/11/2007 INCAindianapolis 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html 12/11/2007 INCAindianapolis Page 14 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 15 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis Page 16 of 19 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? http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11 /2007 INCAindianapolis Page 17 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/htmUincaindianapolis.html 12/11/2007 INCAindianapolis 6) In general, to businesses affect what degree do property values? Page 18 of 19 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 http://www.communitydefense.org/cdcdocs/landuse/html/incaindianapolis.html 12/11/2007