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HomeMy WebLinkAbout2005-06-28; City Council; 18187 v2 11-12; Exhibits to Staff Report Regulating Adult Businesses and Performers11 C O. ACQU' as. OtpwWMirt of JuMo* National MMttuM «t Jratte* Thic dMufncfli h» bMn raproduewj w«c«y M r»c*»id (Mm IM pwian or organaMkMi onguwBng «. Powtt at raw at cpiiMn* «i«*d in ihw doeumvnt «r« neM ol »• auihm wid do not MCMMrily rmrcMM •<• official po«*xi or po«d«i of KM UtHon* MMMuu o» JUMCM. PwmiMion «e rapioduc* tM ccpyn^ granMdby Minnesota Crime P Marlys FurUMr reproduction outsid* of Iw NCJRS tysnm raqyirM pormte- sion ol OM copyngW o«n«r. An Analyaie of the Relationship 8«tw«en Adult EotertainiMnt Establighmeata, Crim«, end Housing V&luag Submitted to the Consumer Services Committee Minneapolis City Council by Marlys McPhersoo Executive Director and Glenn Si Ho way Research Associate The Minnesota Crime Prevention Center, Inc, 121 East Franklin Avenue Minneapolis, Minnesota 55404 October, 1980 Copyright (c) 1980 No part of this publication may be reproduced without prior written permission from the Minnesota Crime Prevention Center, Inc. An Analysis of the Relationship between Adult Entertainment Establishments, Crime, ana Housing Values Table of Contents Preface 1 ChAPTKK 1 - BARS AND CRlliE 3 Section A - General Relationship between Bars and Crime 4 1. Introduction: The Research Question 4 2 . Methodology 4 3. Analysis and Findings 8 4. Summary: General Relationship Between bars and Crime.... IS Section B - The Effect of Changing ch« Liquor Patrol Limit*: New bars and Crime 16 1. Introduction: The Research Question 16 2. Methodology 17 I). Analysis and Findings 19 4 . Summary Find ings 24 Section C - Characteristics of "Nuisance" Bars 25 1. Introduction: The Research Question..... 25 2. Methodology 25 3. Analysis and Findings 29 4. Summary of Findings 34 CUAPTEK II - ADULT LNTEKTA.IKMENT ESTABLISHMENTS AMD NEIGHBORHOOD DETERIORATION 35 Introduction. 36 Section A - Policy Issues 38 Section a - The Research Design 42 1. Introduction: The Research Question 42 2. Variables and Oat a Sources 44 i. Level of Analysis... • 49 Section C - Analysis and Findings 50 1. Simple Relationships 50 2. Complex Relationships 52 3. Tests for Linearity 67 4. Causal Analysis 67 Section b - Summary and Conclusions 73 CdAPThX III - LHPIttlCAL FINDINGS AND POLICY RLCOMMif.UATlOKS 76 APPENDIX. A - Supplementary Materials for Chapter I: bars and Crime A-l APPENDIX b - Supplementary Materials for Chapter II: Adult Entertainment and Neighborhood Deterioration— b-1 An Analysis of the Relationship Between Adult Entertainment Establishments, Crioe. and housing Values Preface This study examines two separate but related issues: 1) the relationship of bars to crime, and 2) the impact of adult entertain- ment establishments on 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 general relationship between bars and crime, taking type of neighborhood into account; 2. The effect of eliminating the liquor patrol limits in 1974; and 3. The characteristics of "nuisance" bars as compared with "non-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 the study, "neighborhoods" are defined as census tracts. Other factors affecting neighborhood deterioration are controlled for in order to measure the independent effects of adult entertainment establishments. The research questions Involve establishing whether or not there is an association between adult entertainment and neighborhood deterioration at the census tract level, and then determining whether the evidence supports the hypothe- sis that adult entertainment precedes neighborhood deterioration. The second chapter of the report presents the analysis of these issues in four sections: 1. A summary of the policy issues that motivate the study, 2. The research questions and study design derived to investigate these policy issues, 3. The analysis and results of Che study, and 4. The summary conclusions. This study was commissioned by the Minneapolis City Council in winter, 1980 to provide some empirical basis for policy decisions regarding the licensing and zoning of adult entertainment establishments* 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 Bergquist, manager of the Department of Licenses and Consumer Services, Roger Montgomery of the Police Inspection Unit, and t->ary Wahlstrand of the City Attorney's office. Numerous other city employees were generous with their time and help- ful in their suggestions. CHAPTER I BARS AND CRIME ***>*• Section A *"*""'' General Relationship between Bars and Crime 1. Introduction: The Research question 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 ot certain types of bars to crime, while controlling for neighborhood setting. The general hypothesis in this context can be reinterpreted as specific research questions: a. Are selected crimes distributed non-randomly in areas surrounding bars as a group? Do they cluster around bars? b. Do these distributions provide evidence of an association between types of bars and crime, i.e., do the crimes tend to cluster around the various types of bars? c. Do these observed distributions change when controls (factors ***** other than bars or crimes) are taken into account? »»**" '2. Methodology a. Variables and Data Sources The major independent variable is all licensed alcohol-serving (on-sale) establishments in Minneapolis. This variable is measured by identifying the location (address) of each bar. The license cate- gories established by the city — beer, wine, or liquor bars, and Class A, B, or C entertainment — are subdivisions of the independent variable and are considered separately in some analyses below. Bars are also classified into two categories according to the volume of food service business they do. The data source for identifying bar locations was the records of the License beparf.nent of the City of Minneapolis. According to these records, there were 203 liquor licenses, 21 wine licenses, and 143 beer licenses issued in 1979. Each of these businesses is also licensed for a certain entertainment level. The data source for classifying bars according co volume of food business were the observations of members of the License Department and the Minneapolis Police Department. 215 of the 367 licensed establishments could be classified in this way. The remaining 152 bara are dropped from 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 might expect to find a relation between alcohol consumption and these personal crimes. No theory connecting crime and drinking in public places exists, but we have sufficient experience with th« effects of alcohol on aggressive behavior to make the connection. In addition, bars serve as gathering places where outbursts of aggression have handy targets. Finally, neither observed relationships (as in the adult entertainment portion of this study, which shows a low 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 measurement techniques that it could not be Included. Crime counts were made at the address level using the offense report data automated through the tlinneapolis Police Department's Integrated Criminal Apprehension Program (1CAP). These counts were aggregated into frequencies for each crime and for each area surrounding a bar ^r & one-year period from Hay 1,^379 co April 30, 1980. Assaults and street robberies were considered both separately and together to various analyses. finally, Che analysis takes into account the type of neighborhood as a control variable. "Neighborhood" is here defined as a census tract, and it is measured by the percent of owner-occupied homes by trace. It was necessary to use the census tract aa 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 affordable price. Percent owner-occupied, taken from the 1970 census, is known to be highly 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 part of residents. The actual measure used is a Z-score, dividing the variable into three categories (low • -.5 standard deviations or less, medium - -.5 to .5, high « .5 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 ICAf 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. Distance decay analysis determines Che decree 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-stance from Che site increases, then it may be the case that the site is associated with crime. There are three tests to determine whether a site is statistically 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. Is there a significant chi-square statistic demonstrating that the areas around sites vary from normal density? 3. la there a significantly negative slope to the curve as measured by a signs test? 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 each bar by the distance decay software are six approximately concentric rings of 1/10 mile in width each, for a total area with a 6/10 mile radius.^ 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 see 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.2 '•The technique is most easily described with concentric rings as the units of analysis. The actual unit of analysis used in this study was city-blocks. Appendix A.I for a further description of distance decay analysis . 3. Analysis and Findings a* Are selected crimes distributed non-randomly in areas surrounding bars as a group? Do they cluster around bars? This analysis looks at the general association between bars and selected types of crime. Separate distance decay analyses were per- formed on the 367 bars and a summary analysis was prepared for all bars. Ibis was done for each of the crimes separately and for the two crimes combined. The summary analysis of bars and assaults in Figure I.I demonstrates a classic distance decay curve. As can be seen in Figure I.I, as distance from the bar increases the density of assaults decreases. Both the chi-square and the signs test are significant. As a group, bars in Minneapolis are significantly associated with assaults. This, of course, does not mean that every bar is associated with assault. Figure I.I Distribution of Assaults Around Bars 3 Relative Crime Density (R.C.b.) .1 .2 .3 .4 .5 .6 (bisCanee in tenths of miles from bar) 2325.b Sig. .05 Slope negative .03 The association of Minneapolis bars and street robbery is demonstrated in-figure 1.2. Once again, there is a fairly strong distance decay curve which Indicates a concentration of street robbery around bars that, decreases as distance from the bar increases. Both the chi-square and the signs are significant. In general, bars in Minneapolis are significantly associated with street robbery. Figure 1.2 Distribution of Street Robbery Around Bars 3 Relative Crime Density (K.C.L.) 123456 (Distance in tenths of miles from bar) X2 • 1968.4 slg. OS Slope negative .03 Because bars are 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 1.3. Again, the 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. II Figure 1.3 Distribution of Assaults and Street Robbery Around Bars • 3 • 2 Relative Crime Density (K.C.D.) 123456 (Distance in tenths of miles from bar) x2 - 4122.0 Sig .05 Slope negative .03 b. bo these distributions provide evidence of an association between types of bars and crime, i.e., do the crimes tend to cluster around the various types of bars? Co these observed distributions change 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- gories 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 defined 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 In addition, Trie city staff expressed interesc^tn the effect of volume of food business on crime. The assumption to be tested is that bars with lower food volume have lower associations with crime Chan bars with greater food volume. The two categories of food volume are: high - greater than 50 percent food, low - less than 50 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 bars with the selected crimes while controlling for the environment in which a bar exists. (1) Bars by sub-type and crime Summary distance decays were run tor each of the six license cate- gories of bars, plus two categories of food volume in the businesses, measuring the density of the combined crimes of assault and street robbery.^ The results of these eight summary distance decays are reported in Figure 1.4. Wine and Class B entertainment bars, and bars which have more than 50 percent of their total voluue in food service do not show signifi- cant associations with the distribution of the selected crimes in the surrounding areas. All other categories do exhibit significant ^•Separate analyses for each crime were performed, but the results were similar and therefore the combined measure was used. 11 Figure I.A Distribution of Crime Around Bars by Categories of Bars Liquor'Type Entertainment Type Food Volume 3 R.C.L). 2 1 3 R.C.D. 2 I N - 143 V ^S^^4 Distance — Beer ft - 21 /\y\>^\ 3 k.C.b. 2 1 N - 264 V^^-* 3 R.C.D. 2 1 > Distance — > Class 0 Entertainment 3 R.C.D. 2 1 N • 13 Av_^ 3 R.C.D. 2 1 Li stance — > Distance — > \K - 108 V >** Distance — Less Than 50% Food N - 107 /v ^^Distance — . Wine Class B More Than Entertainment 50% Food R.C.D. 2 1 - 203 R.C.L. 2 1 Distance —> Liquor N - 90 Distance —> Class A Entertainment *These distance decay curves are significant according to the three tests outlined in the text. tendencies toward clustering around the bars as types.* In the cases of wine and Class B bars, these results nay be due to the spatial results for wine and Class b bars may be questioned by some because of the snail number of bars in those categories. However, the technique aggregates the number of crimes in surrounding areas to get a density measure, and it would be sensitive to low N if the number of crimes in a ring were small. In these cases, all rings in the aggre- gated measures count over several hundred crimes (some crimes are counted more than once), so the number is adequate. 12 distribution of the bars in the city and the way the distance decay technique aggregates events within these distributions. Wine bars are also bars with high food volume which may in fact account for a lower crime association. Class & bar effects cannot be accounted for in any simple way by the kind of entertainment permitted since bars with both fewer (Class C) and more (Class A) entertainment options are significantly associated with crime. (2) Crime around bars controlling for neighborhood type Figure 1.5 reports three summary distance decays for all bars within the three types of neighborhoods as identified by percent owner occupied housing. Figure 1.5 Distribution of Crime Around all Bars Within Types of Neighborhoods Low Owner Moderate Owner High Owner Occupied Occupied Occupied Relative 3 Crime Density 21 N - 256 a*N - 42 Distance Distance *Indicates significant distance decay. Distance As Figure I.S shows, the measured densities of the crimes of assault and street robbery are signficantly associated with the location of bars in all three types of neighborhoods. 13 This finding is especially interesting in Che cases of the • moderate and high owner-occupied neighborhoods where the possibly con- founding impact of the downtown bars has been eliminated. The low owner-occupied cell contains all of the bars from the downtown area where few people own the homes they live in. This concentration of bars may exaggerate the impact of bars on crime because we know that: 1) assaults and street robberies are concentrated in highly commer- cialized areas, such as the Central Business District, which suggests that the observed relationship between bars and these crimes may be due to some characteristic of the commercial area other than bars, and 2) the aggregating technique used in the distance decay analysis over- weights crimes around extreme clusters of bars, such as is found downtown. however, these considerations are not present in higher owner- occupied neighborhoods, which tend to be lower crime areas and removed from concentrations of bars 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 that bars are in commercial zones still could be confounding these results, but this is substantially less likely when the downtown bars are- eliminated from the analysis. 4. Summary; General Relationship Between Bars and Crime1 What is Che general relationship between bars and crime? Does che relationship hold when other variables associated with crime are controlled? a) An aggregate analysis of all 367 bars in Minneapolis shows that bars as a group are associated with the crimes of assault and street robbery. b) This relationship between bars and the selected crime types remains when type of neighborhood (as measured by percent owner- occupied housing) is controlled. c) bars whose food volume accounts for over 50 percent of total volume, bars with wine licenses, and bars with Class H entertainment licenses are not associated with the crimes of assault and street r obbery. ^Additional distance decay results showing 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 n Section B The Effect of Changing the Liquor Patrol Limits; New Bars and Crime 1. Introduction; The Research Question Liquor pacrol limits have had a long and controversial history in Minneapolis. Initially established in 1887, 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 Department foot patrolmen could reach the ends of the 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 area. I 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's. In 1974, voters approved a charter amendment abolishing the liquor patrol limits altogether. The restriction that on-sale liquor establishments can be located only in seven-acre 1-Many groups argued that the narrow confines of the patrol limits would guarantee that another skid row would develop, simillar to the one along Washington Avenue that was cleared in the 1950's and that resulted in many liquor licenses being forced to relocate. Therefore, one of the principal arguments was to extend the limits to permit a wider dispersal of the bars. 2The boundaries in effect after 1959 extended the patrol limits to franklin on the south, Lyndale on the west, Broadway on the north and the hississippi River on the east, along with a section in Northeast Minneapolis along University Avenue. 16 commercial zones remained in effect, however. As a result of Minneapolis' liquor licensing restrictions, major portions of the city remained without liquor bars until L974 (with the exception of several "distressed" licenses issued outside of the limits). One of the purposes of this study is to examine the effect on crime of the 1974 rescission of the liquor patrol limits. If bars are asso- ciated with higher incidences of certain kinds of crimes, as has been hypothesized, then one would expect to find aignificant increases of crime around those liquor bars established outside the old patrol limits. 2. Methodology a. The Research Design In order to answer the question 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 were conducted. The logic of the design is illustrated below (Figure 1.6). Figure 1.6 Before and After Research Design for Assessing Impact of Abolishment of Liquor Patrol Limits Before (One year period, July 1, 1974 - June 30. 197S) Amount (number) of assaults within six blocks of the site Introduction of a bar to the site After (One year period, Way 1, 1979 - April 30. 198Q Amount (number) of assaults within six blocks of the bar Distribution of crime as indicated by distance decay analysis of sites Introduction of a bar to the site Distribution of crime as indicated by distance decay analysis of sites 17 As indicated, Che design looks at crime in areas outside the patrol limits before new liquor licenses were established and then compares it with crime after those 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 those 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.1 As suggested previously, the 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 show similar patterns. 18 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, 1975 was taken from the Crime in Minneapolis study in which address-level crime data was coded from police offense reports.1 The *- Minneapolis Police Department's ICAP (Integrated Criminal Apprehension Program) system provided data for the "after" time period of May 1, 1979 through April 30, 1980. c. The Analysis In order to test the hypothesis that on-sale liquor licenses 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 are* 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 1979-60) of the number of assaults in the immediate vicinity of the 23 liquor I'D. Frisbie, et al., Crime in Minneapolis, Minneapolis: Minnesota Crime Prevention Center, Inc., 1977.~~ 19 , .;«"w™, ^^y 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.I. 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.I Comparison of the Number of Assaults, 1974-75 to 1979-80 Areas surrounding the 23 new liquor license sites Minneapolis city-wide totals 1974-75 1979-80 2,124* 4,156 2,384* 5,614 Percent Change -H2I +352 *Note 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 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 row is also a valid comparison, as the areas are the same at both times. b. Distribution of Crime Comparative analysis of the distribution of assaults within the six-block radius area surrounding the 23 new liquor license sites suggests an apparent tendency toward a greater concentration of assaults in the immediate one-block area where the bars are located. As Table 1.2 illustrates, in 1974-75 none of the sites had significant distance oecay curves (defined in terms of a significant chi-square and a significant negative slope). In other words, the assaults did not cluster around the sites, but were more randomly distributed throughout the area. In 1979-80, 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 increases were not sufficient to achieve significance. Table 1.2 Comparison of Distance Decay Analyses of New Liquor License Sites, 1974-75 to 1979-80 1974-75 1979-80 Number of Significant* Distance Decay Curve Analyses for the 23 sites *Signifleant chi-square at .05 level and significant negative slope. Table 1.3 provides additional confirmation of a greater con- centration of assaults within the immediate block where new liquor licenses are located. As this Table suggests, while the increase in assaults for the six-block areas where the 23 new licenses are located (12 percent) was less than the city-wide average (35 percent), the percent increase in assaults within one block of the bar sites was considerably higher (69 percent). 21 Table 1.3 Change in the Distribution of Assaults Around New Liquor License Sites, 1974-75 to 1979-80 Number of assaults within one block area of the 23 new liquor license sites* Number of assaults within six-block radius area of the 23 new liquor license sites* Minneapolis city-wide totals 1974-75 110 2,124 4,156 1979-80 186 2,384 5,614 Percent Change +69* +12% +35Z *Note 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 aggregating procedure used by the distance decay technique. The percent change for the new licenses can be compared to the percent change for the city as a whole. The temporal changes within 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 shows that the concentration of assaults within the first .1 mile band has increased significantly. The rela- tive crime density for the first .1 mile band has increased from 1.86 in 1974-75 to 2.81 in 1979-80. This comparison is illustrated in Table 1.4. 22 Table 1.4 Comparison of Summary Distance Decay Curves 1974-75 to 1979-SO Relative Crime Density (K.C.U.) - 1974-75 1979-80 123 4 5 6 (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 in 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 geographically 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 4. Summary Findings What Is the effect on crime of che 1974 rescission of the liquor patrol limits? a. IVenty-three liquor licenses were granted outside the old liquor patrol limits between 1974 and 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 the city as a whole.' b. In general, there was an increased concentration of assaults within one block of the bar sites where liquor licenses were granted outside the patrol limits. 24 Section C Characteristics of "Nuisance" Bars 1. Introduction: Ihe Research Question There are a number of bars la Minneapolis that generate "nuisances" and crime-related problems for the citizens of the city. These nuisances are in the fora of relatively minor crimes such as vandalism, noise, litter, and discomfort of local residents. Yet, nuisance situations often are more obvious to citizens and cause then more concern and worry than serious crimes, such as assault and robbery. Although this was not part of the contract, several city officials expressed interest in knowing whether bars which generate nuisance situations differ systematically from bars which do not generate nuisances. If there are systematic differences between nuisance bars and non-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 Design Members 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 do not. The factors suggested included: 1) the volume of food business, 2) proximity to a primarily residential area, 3) the type and availability of parking,1 4) the '•City staff and Council members expressed concern that bars that do not have off-street parking can create nuisances. It is assumed that customers parking in front of houses and in front of other businesses create conflict situations which result in disturbances and nuisances. 25 type of entertainment,i 5) the type of liquor license, 6) the type of clientele, and 7) bar management practices. 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 research" design is based on comparing two samples of bars, 20 bars identified as generating nuisances and 20 non-nuisance bars, on the six characteristics identified above. Although nuisances often result in calls-for-servlce to the police, at present the Minneapolis Police Department 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 this study. Instead a sample of bars believed to generate nuisances and a sample of bars that do not were 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 bars in their wards which generate complaints to their offices as well as to identify "exemplary" bars. Members of the Police License Inspection Unit were asked to identify bars in these two categories as well. Froa these nominations, 20 bars from each type of bar (nuisance and non-nuisance) were selected from their nominations. A list of ^•Entertainment at a bar has been cited as a potential source of nuisances because of the number and type of people it attracts. 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 Che 40 bars included in the two samples can be found in Appendix A. On-site observations using a structured data collection instrument were made at the 40 bars by HCPC, Inc. staff. A copy of the data collection instrument used is also included in Appendix A. b. Definition of the Variables and Data Sources (1) Volume of food. The 40 bars were categorized according to whether their food business constituted over SO percent of their gross business sales. Host of this data came from the Police Inspection Unit with supportive data from on-site observation. (2) Proximity to residential neighborhood. The bars were categorized 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 bars were categorized according to the type of parking available for their customers: 1) street parking only, 2) mete red street parking, 3) other parking lots available in the vicinity, and 4) the bar provides its own adequate-sized parking lot. 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 bepartuent: Class C, Class B, Class A (see p. 10 above for a discussion of these classifications). The second category is Che type of entertainaent actually present (as opposed to that for which they were licensed), based upon the on-site observations. The 27 ,:,**v categories used were the following: I) none, 2) single performer, and >l""'' 3) band (and/or major disco-type sound system). (5) 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 content). 2) wine, and 3) liquor. There are very few wine licenses in Minneapolis and neither of our samples Included any bars with wine licenses, so for this portion of the study the two remaining types of alcohol were used: 1) beer, and 2) liquor. (6) Type of clientele. The city has little direct control over the type of clientele a bar 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 and social pattern. Information about these variables was collected by on-sltc observation and was analyzed. As might 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 measure- ments were taken according to the judgments of one observer, the results obtained were considered to be too unreliable. Therefore, they are not included in this report. (7) Game rooms. Although information on game rooms was not a part of the original data collection instrument, this information was collected. The criteria used to classify bars on whether or not they had a game room was: 1) the games constituted a clearly defined 28 area of the establishment, and 2} the games were air Important attrac- tion for the bar. Bars with one or two machines vere not classified as having a game room. 3. Analysis and Findings a. Volume of Food The data on the relationship between volume of food and type of bar (nuisance or non-nuisance) is presented in Table 1.5. Table 1.5 Relationship of Volume of Food Business to Type of Bar Less Than More Than SOX Food 50Z Food 69% (20) 31X ( 9) OZ ( 0) 1002 (11) Nuisance Bars Non-Nuisance Bars Total 1002 (29) 100Z (11) x2 - 15.172 Idf sig. .001 As this Table indicates, none of the bars with over 50 percent food business were nuisance bars, while the majority of the bars with low food volume tended to be nuisance bars. This difference is statisti- cally significant. It suggests that if a bar does a large volume of food business it is less likely to generate nuisances than if it does a small volume of food business. b. Proximity to Residential Neighborhood Table 1.6 shows the results of the analysis for the relationship between proximity to residential neighborhood and type of bar. 29 Table 1.6 Relationship of "Proximity-to-Neighborhood" and Type of bar nuisance bars (Jon-Nuisance Bars Total Within 1 block 63% (10) 372 ( 6) 1-2 blocks 222 (2) 782 < 7) 2 or more 532 ( 8) 47% ( 7) 1002 (16) 1002 ( 9) 1002 (15) x2 . 3.844 2df sig. .15 The results are more ambiguous than was the case for volume of food. Although 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 and Availability of Parking The results of the analysis of the relationship between the type of parking available and type of bar are shown in Table 1.7. Table 1.7 Relationship Between Type of Parking Available and Type of Bar Nuisance bars Non-Nuisance Bars Total Street 692 (9) 312 (4) deter 332 (1) 672 (2) Other Lot 712 (5) 29* (2) Own lot 292 ( 5) 71% (12) 1002 (13) 1002 (3) 1002 (7) 1002 (17) - 6.424 3df sig. .10 30 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 1.6 indicates that bars without their own lots are much more likely to be nuisance bars, while bars with their own parking lots are less likely to be associated with nuisances. Table 1.8 Relationship Between Ownership of Parking Lot and Type of Bar Nuisance Bars Non-Nuisance Bars Total Other Parking Facilities 65Z (15) 35Z ( 8) Bar Owns Lot 29% 71% ( 5) (12) loot (23)100%(17) - 5.013 Idf sig. .05 d. Type of Entertainment Using the first definition of this variable, type of entertainment license issued by the City, the results in table 1.9 are obtained. Table 1.9 Relationship Between Type of Entertainment License and Type of bar Nuisance liars Non-Nuisance Bars Total c 53% (10) 47% ( 9) B 33X (1) 67X (2) A 501 ( 9) SOX ( 9) 100X (19)100X (3) 2 - .386 2df no sig. 100X (18) As this table Indicates, there Is not a significant 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 I.10. Table 1.10. Relationship Between Observed Type of Entertainment and Type of Bar Nuisance Bars Non-Nuisance Bars Total None 44X (12) 56* (15) Single 25* (I) 75% (3) Band 782 (7) 22X (2) IOOX (27)100% (4) 2 - 4.111 2df sig. .112 100* (9) 32 This data shows some tendency for the bars with higher levels of entertainment Co be associated with nuisance bars, but this is not a statistically significant finding. e. Typ« of Liquor License Table 1.1L 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 bars Non-Nuisance Bars Total Eeer 33Z (2) 67Z (4) Liquor 53Z (18) 47* (Ib) 100X (6)100X (34) - .784 Idf no sig. According to these results froa the sample of bars, the type of liquor license a bar has is not related to whether or not it generates nuisances, bars with one type of alcohol license are not more likely to be nuisance bars than bars with another type of license.1 £. Game KOOM Table 1.12 shows that the relationship 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. i-The sampling procedure makes this result dubious since the city- wide distribution of beer licenses versus liquor licenses is 143 ver- sus 203, quite different proportions than 6 versus J4. 33 55- Table 1.12 Relationship between Game Rooms and Type of Bar Nuisance bars Non-Nuisance Bars Total ho Game Room 32Z ( 8) 68X (17) Game Room 80X (12) 20* ( 3) 1002 (25)100Z (15) x2 - 8.640 Idf sig. .01 4. Summary of Findings Are there any systematic, significant differences in the charac- teristics of bars which generate 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. «. 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 EKTtkTAINMENT ESTABLISHMENTS AMD NtlGUBORUOOD DETERIORATION 35 -'' Introduction -~- ,.*$&**. '^^. The general purpose of this section is to examine the impact of adult entertainment establishments on neighborhood quality. The study is empirical, and uses statistical techniques to examine the rela- tionships between concentrations of adult entertainment establishments and measures of neighborhood quality. On the basis of this analysis of data, inferences about whether adult entertainment establishments are associated with neighborhood decline and whether the establish- ments follow or precede neighborhood decline can be made. The concerns represented here are neither unique to tilnneapolisl nor new 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 — bars, saunas, adult bookstores, and the like — may be undesirable in such neighborhoods. Two fairly common measures of neighborhood quality are used in this report: the crime rate, and a measure of housing value. While neither of these measures is perfect, each of them embodies real con- cerns 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 housing and high crime. LS«o, for example, City of Los Angeles, "Study of the Lffects of the Concentration of Adult Entertainment tstablishnents in the City of Los Angeles" (Los An&eles: Department of City Planning, 1977). 2tor a nunber of years the city has attempted various approaches to controlling the effects of adult entertainment. The liquor patrol limits, zoning regulations, licensing of saunas, and so forth, are all part of this effort. In this study "Adult entertainment establishments" include all types of alcohol serving establishments, plus businesses which commer- cialize sex— saunas, "adult" theaters and bookstores, rap parlors, and 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. The entire analysis in 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- pose* of this study, but the others are either Impractical due to cost or availability. For example, block-level analysis is possible given available data, but the cost of acquiring that data and running analy- ses 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 this chapter is divided into four sections. Section A summarizes the policy issues that motivate the study. Section B then gives the empirical research questions to be examined here that follow from these policy issues. This second section briefly reports the research design folloved in answering the research questions. Section C provides the results of the study in written and tabular form. 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.I Likewise, the licensing function la 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 infringing on other guaranteed rights of proprietors and customers, such as the First Amendment right to free speech. In Young vs. American Mini Theaters, Inc.,2 the Supreme Courtw held that a Detroit 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 the right to distribute or con- sume certain ideas, specifically those with explicit 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 1Villag,e of Luc lid V. Anbler Realty Co., 272 U.S. 365, cited in fredric A. Strom, Zoning Control of bex Businesses (New York: Clark boardman Co., Ltd., 1977), p. 21 24id7 U.S. 50 3b response to Che problem of neighborhood decline based on the testimony and evidence of expert witnesses.* The conditions laid down in Young vs. American Mini Theaters are narrow, and the legal issues are complex. It is not the intention of this report to enter the legal thicket in search of optimum solutions. The relevant point raised by the Detroit decision is that one of the conditions that must 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 among the concerns that are empirically examined in this study, as indicated by the primary measures of relative neigh- borhood 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 art: subject to both licensing and zoning restrictions, while many sexually, oriented businesses are subject only to zoning restrictions (as of July 1, 19ttO).2 of certain sexually oriented businesses, e.jj., saunas and rap parlors, has proved difficult since the licensing can be avoided simply by changing the ostensible purpose of the business. Also, several past attempts to use license violations to revoke licenses have been challenged successfully in court. 39 Discussions with Council members and City staff produced several specific policy questions that can be pursued in this research: *1. Do different types of alcohol-serving establishments have different impacts on neighborhoods? This is a complex question since City Council 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 extent to which a business is based on serving food and how this may alter the effects of the establishment on the neighborhood. 2. Do particular combinations or concentrations of adult entertainment 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 businesses -to SOU foot intervals between them and with 500 foot intervals between the businesses and other priority uses like residences or churches. One assumption in the regulation is that concentration of these establishments will exacerbate their nega- tive impacts on neighborhoods. This assumption requires empirical support. 3. Does the location of a bar or sexually-oriented business in an area precede the decline of a neighborhood or does it follow it? Ihere is some 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 neighborhoods for most years, some of these policy questions are very difficult to answer. However, 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 &rounds. Section B The Research 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.1 1. Introduction: The Research Question a. Are the location and number of adult entertainment establishments 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. Second, multiple regression analysis is performed to determine if any or all combinations of the adult entertainment establishments are associated with measures of ^Methodological issues and discussion of the choices of .,.r' ) techniques are contained in Appenaix b.l. 42 neighborhood quality when considered together with other control variables. The regression equations permit some estimate of the impacts of adult entertainment establishments on neighborhoods in com- parison with other variables, using the regression coefficients. c- Does 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 reveal that changes in neighborhood deterioration increase at a greater or lesser rate than 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 in the concentration of adult uses will have dispro- portionately great impacts on surrounding areas. The simple rela- tionships are tested using one-way (bivariate) analysis of variance techniques to Identify significant departure from linearity. The multi-variate regression analyses are tested through examination of residuals. d. Do the relationships observed in the data, either over time or cross-sectionally, permit the inference that adult entertain- ment establishments precede or accelerate neighborhood decline? For policy concerns, 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 neighborhood decline. In the present case, the statistical technique of path analysis is used to determine whether adult businesses precede or follow signs of deterioration. We hypothesize that deterioration does follow the location of such 43 businesses, (in the sense Chat adult businesses contribute to the existing cycle of decline in the neighborhood), even though it nay be the case that adult businesses are attracted to areas already in the process of decline (the businesses follow decline). It is also possible to 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. 2. Variables and Data Sources Numerous data sources were used to obtain measures of the many variables used in this study. 1 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 all on-sale liquor serving establishments of all types and classes, plus sexually-oriented businesses. (1) On-sale liquor establishments - Establishments may be licensed to sell beer only, wine and beer, or liquor, wine, ana 1Appendix B.2 contains a complete list of variable names and their descriptions and/or measurement. 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 60 percent food service. These businesses also obtain dif- ferent types of licenses depending on the kind of entertainment pro- vided on the site. As discussed in Chapter I, a Class C license per- mits only juke boxes, machines, T.V. and the like. The Class B license permits a single performer to play an instrument, 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, shows, dancing, and so forth. Table II.I shows the numbers of bars in each category for 1970 and 1979, excluding the downtown tracts.! Table II.1: Number of Bars by Category, 1970 and 19792 Class A beer Wine* Liquor Total 10 0 28 38 1970 Class & 3 0 3 6 Class C 175 0 58 233 Class A 5 1 47 53 1979 Class B 2 0 3 5 Class C 128 17 62 207 *"Ulne" was not a license category in 1970. LDowntown tracts 45, 46.01, 46.02, 44, 47, 53, and 54 were eli- minated from moat analysis because they are not, properly speaking, residential areas. There are numerous households in the area, but the predominance of commercial and other non-residential uses, combined with the high concentration of adult businesses, distorts the analysis performed here. See Tables 11.7 and II.8 for some results including downtown. ^Counts here 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 26S. 45 (2) Adult sexually-oriented businesses - These businesses include adult (x-rated) movie cheaters, adult book stores, saunas and rap parlors, plus bars vdiich provide live sexually-oriented entertainment. The 1980 data is complete, but information on sexually- oriented businesses that were not licensed in the period around 1970 (e.g., sexually-oriented entertainment in bars) cannot be reliably measured at this point and were omitted from the analysis. Table 11.2 provides counts of these businesses for 1970 and 1979, again omitting downtown. Table 11.2: Number of Sexually-Oriented Businesses by Category, 1970 and 1979 Saunas, etc.* Adult bookstores Adult theaters Bars with sexually- oriented entertainment W70 11 UNK 1 UN'K. 1979 14 7 6 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 Office of the Zoning Administrator, bars with live sexually-oriented entertainment in 1979-1980 were identified by mem- bers of the Minneapolis Police Department and License Department staff. b. Dependent Variables Ihe main dependent variables used in this study are raean housing value and an index of crime rate per 1,000 population, at the census tract level. These variables are generally recognized to be good indicators of neighborhood deterioration. (1) Homing value * For 1970, mean housing value is the owner estimated 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. Though 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 for that year, thus producing valid measures of variation from tract to tract. (2) Crime rajte - 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 Minnesota Crime Prevention Center as part of a study of crime in Minneapolis.^- Crime data for 1979 and 1980 was collected from the files of the Minneapolis Police Department's Integrated Criminal Apprehension Prograa, for which the Minnesota Crime 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. The index is an aggregated tract-level measure of the number of crimes per 1,000 population. '•Douglas W. triable, et al, Crime in Minneapolis, fiinneapolis: Minnesota Crime Prevention Center^ Inc. , 1977. 47, finally, other measures of neighborhood qualiCy were considered for inclusion in the list of dependent variables, including measures of commercial vacancy rates and area condition estimates. Some analy- sis waa 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 used in the analysis to determine the extent 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 businesses 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 Data - The major sources used for measuring 1970 control variables were the 1970 census and the Polk Company's Minneapolis City Directory. 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 1979 Uata - The 1979 data was obtained from several sources, bata on residential units, including age, type, condition, number, gross building area, lot size, and tax status (i.e., homestead or not) were collected from the Property Management System.I The bulk of .the commercial property descriptions were taken from the Polk city directory for 1978. In addition, estimates of 197b household income and tract population were taken from Polk data. Measures of household occupancy and turnover rates were taken from the Minneapolis quarterly report on vacancy and turnover for January 1, 1980 to March 31, 1960 produced by the Minneapolis Planning Department. The original source of this data was the NSP billing tapes. 3. Level of Analysis All variables have been 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 on-sale licenses issued by the city for that year, by census tract. 1Programming and tape creation for PUS data were performed by the City's Management Information Service. 49 Section C Analysis and Findings 1. Simple Relationships - 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 expected to find that a high concentration of such busi- nesses is associated with an increased crime rate and decreased housing values. 1 The simple correlation coefficients confirm these expectations. Table 11.3: Pearson Correlation Coefficients: Adult Entertainment Establishments and Measures of Neighborhood Quality, 1979 All adult businesses Sexually-oriented businesses Alcohol-serving businesses Beer Wine Liquor Class A Class B Class C Mean liousing Value 1979 -.1320 -.1533* -.1208 -.2531* .1079 .0267 .0584 ' -.0691 -.1409 Crime Rate Index, 1979-80 .1926* .2440* .1380 .1683* -.0441 .0760 .0405 .2415* .1421 Correlations are significant at the .05 level or better. As Table 11.3 shows, several categories of adult businesses have a statistically significant relationship with the measures of neigh- borhood deterioration. Concentrations of sexually-oriented businesses and beer bars show relatively strong relationships with both housing value and the crime rate in the expected directions.2 The Minnesota Crime Prevention Center, "Neighborhood Deterioration and the Location of Adult Entertainment Establishments in St. Paul," Minneapolis: MCVC, Inc., 197«. Appendix B.I for a breakdown of the crime rate Into four of its component crimes and their associations with adult establishments relationship between the location of adult entertainment businesses and crime is generally stronger than that between these businesses and housing value, "host of the observed correlations are very weak. The relationships in Table 11.3 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- ferences are due entirely to differences between the types of establishments, but that seems to be only & 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 consequences for their impacts on neighborhoods. One business deci- sion 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 bars. The residential environ- ment of che adult business may be characterized by many variables that could have an impact. In this study, these concerns are measured and taken into account through the use of statistical controls. The zoning policy issue.is 51 53 ,*•»»» 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 greater than 50 percent food considered primarily restaurants.*• The residential'environment is characterized by a measure of average household income in a census tract. 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 businesses and crime or housing value.2 xhe next section presents some analyses that explicitly use these control variables to examine the relationship between adult business and neighborhood deterioration more closely. Summary Findings; Simple Relationships , . (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 summary measure of all adult businesses, sexually-oriented businesses, beer and Class B 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. 2. Complex Relationships - bo the observed relationships change after controlling for the impacts of other variables known to be associated with neigh- borhood quality? ^•Members of the Police Department and Che Licensing staff supplied the list of licensed establishments that are primarily in food service. Appenuix b-1 for a presentation and discussion of these results. 51 This section is in two parts. The first part presents first order partial correlations between concentrations of adult businesses and measures of-neighborhood quality, controlling for the policy rele- vant variables of food percentage of business and commercial charac- teristics of bar, locations, 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 tests are reported which permit an estimation of the amount of impact of various com- binations and concentrations of adult businesses on neighborhood quality, while simultaneously controlling for the effects of other variables. a. Partial Correlation Table 11.4 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 11.4 show the effects of controlling for food business on the rela- tionships between adult entertainment business types and the neigh- borhood deterioration measures.1 Bars that are devoted primarily to serving alcohol are more strongly related to lower housing value and higher crime rates. With the effects of restaurant-type businesses removed, more of the relationships are significant, and nearly all of them are in the direction expected, i.e., concentrations of bars Sexually-oriented establishments and all adult business partial correlations arc not reported iu this case because there 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 bars, in particular, are significantly related to crime and/or housing value when food business is controlled. Table II.A: Partial Correlation Coefficients: Adult Entertainment Establishments and Neighborhood Quality, 1979 All adult Sexual ly- oriented Alcohol- serving Beer bine Liquor Class A Class b Class C Simple Correlations house Value -.1320 -.1533* -.1208 -.2531* .1079 .0267 .0584 -.0691 -.1409 Crime Index .1926* .2440* .13bO .1683* -.0441 .0760 .0405 .2415* .1421 Partial Control for food house Value _ - -.2b65* -.2254* -.2800* -.1592* -.1137 -.1310 -.3217* Crime Index_ - .1751* .1618* -.0029 .1039 .0645 .2494* .1667* Partial Control for Percent Commercial House Value -.0707 -.1415 -.0405 -.2423* .1627* .1022 .1191 -.0441 -.0856 Crime Index -.0147 .2314* -.0700 .1418 -.2154* -.1482 -.1514 .1898* -.0560 Partial Control for Mean Income bouse Value .0738 -.1089 .1023 -.2036* .2219* .2254* .2334* .0360 .0303 Crime Index -.0861 .2153* -.1398 .0879 -.2034* -.1659* -.1975* .1420 -.1066 *Significant at the .05 level or better. The controls for commercial area (the fifth and sixth columns in Table 11.4) and mean income (seventh and eighth columns) also change the simple relationship dramatically, and 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- nesses and deterioration is reduced almost to zero, however, when the various sub-categories of adult businesses are investigated, some fairly strong relationships remain. 54 Sexually-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 wine or liquor bars are,- 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 businesses.1 On 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 zones. Wine licensed businesses* relationships to neighborhood deterioration change from insignificant to significant, but in the opposite directions 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. Controlling for income (coluuna 7 and 8) produces strong rela- tionships between liquor, wine, and Class A entertainment bars and higher housing values, and between these types of adult businesses and lower crime rates. These relationships are opposite to what would be *See Appendix B.I: information in Tables 7 and 8 in Appendix B.I 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 vacancies. They are also highly related to commercial crime even though they are not, at the tract level, associated with high commercial concentrations. 55 expected if all concentrations of bars were 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 neighborhood 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 strongly, when income is controlled. The effects of these establish- 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 are related to each other and have effects on the relationships between adult businesses and neighborhood measures in combination. This possibility will be explored usinj, multiple regression in the following section. b. Multiple Regression; Adult Entertainment Establishments and Crloe-1 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.I 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. and if these establishments do have an impact, how ^reac is this rela- tlve to the other variables. 4 A set of multiple regressions using the crime index as the depen- dent variable are reported in Table II. 5 The regression coefficients ^ 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 degression tl, the regression coefficient, b, indicates that the crime rate per 1,000 population drops 28.20 crimes, 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 units they are associated with are noc 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 (.05 or less), then the beta weight provides a way to compare the strengths of. the relationships between the independent variables (type of adult business) and the ueasure 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 Class A bars are associated with lower crime rates when other factors are taken into account. No other type of adult businesses are significantly related to the crime index when they are considered simultaneously with the control variables. 57 Table It.5: Ibltlple Regression: Adult Entertainment Establishments and Crlre, 1979, with Controls Control Variables Independent Variables S unwary Statistics Z serving food Z of area units ounmerclal Kean Income All adult Sexually-oriented Ears Beer Wine Liquor Class A Class B Class C X R R2 Significance Regression #1: Control variables and crime. .b -28.20 .6550 -.0063! error of b 10.81 .2966 -.001 1< 8i«. .010 .029 -O- beta -.191 .208 -.513 .658 .433 •O- Regression #2i Controls plus all adult businesses and crime. .b -26.42 .7057 -.0066 -.8835 error of b 10.99 .3020 .0012 .9669 sig. .018 .021 .000 .363 beta -.1787 .2242 -.5315 -.0735 .661 .437 .000 Regression #3:Controls plus all adult businesses and criiae, .b -76.23 5.850 .0076 .3936 including dcwntown. error of b 58.09 .9756 .0354 3.201 sis. .192 .000 .165 .903 beta -.1022 .6745 .1251 .0121 .594 .353 .0)0 Table 11.5 Continued: Miltlple Regression: Adult Entertainment Establish* Control Variables Independent Variables Sumary Statistics X serving food X of area wilts commercial Mean incone All adult Sexually -oriented Bars Beer Wine Liquor Class A Class B Class C X R R2 Significance Regression 14: Controls plus sexually oreinted bueisnesaes and crime. .b -26.51 .6365 -.0062 9.151 error of b 10.65 .2917 .0011 4.080 si*. .014 .031 .000 .027 beta -.1794 .2023 -.4963 .1564 .676 .A57 .000 Regression 15: Controls pi bars and crime. .b -24.85 .7388 -.0067 -1.517 error of b 10.98 .3002 .0015 1.008 8l«. .026 .015 .000 .135 be -.1 .23 -.5 -.1 .666 .444 .000 COPY The first regression shows Che relationships between the three control variables of food, commercial concentration, and mean income. « All of them are significantly related to the crime index, although the beta weights suggest that mean income is associated with the greatest ^changes in neighborhood quality. Both mean income and the percent of bars predominantly in the food business (SO 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 increases as the percent of an area that is commercial increases.1 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 fairly reliable, at least with respect to the adult businesses* The sub-types of the adult businesses that do have significant relationshps with crime — liquor bars, Class A entertainment bars, and sexually-oriented businesses — are shown in Table 11.5. 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 1ln part, this is an artifact of the data: the crime index is defined to Include commercial crimes which happen only in commercial areas, by definition. However, redefining the index to exclude com- mercial crimes does not change the regressions very much overall. And the greater changes in the commercial variables represent an Important loss of Information. inclusion of the downtown tracts shows the way these tracts change the relationships among the variables. 60 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 people per year, after the control variables are taken into account.1 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 lover crime rates. This confirms the evidence 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 this bar variable is about as strong in its associations with the crime 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 tract. 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 account, bars of some types may be an amenity to a neighborhood in tents of crime. But, 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 Class A entertainment bars and crime are *The citywide average crime rate index by tract is approximately 48.62. 61 greatly affected by their surroundings. In other words, the envlron- •OSIM*' } meat of the bar produces the conditions that spawn crime, not the bar itself.1 Nevertheless, the bar may be a focal point for whatever crime disturbances do occur -- these data do not necessarily contra- dict that point. c. Multiple Regression: Adult Entertainment Establishments and Housing Value Table II.6 contains regressions that evaluate the impact of the control variables — food in bars, commercial concentration, and mean 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 Higher 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" deterioration. This conclusion is further bolstered by the fact that wine licenses were 1-This Interpretation is also supported by the partial correlations. The food control, as discussed, produced relations in the expected direction, however, the residential and commercial environmental controls changed the relations between these types of bars and crime from weakly positive to significantly negative. inclusion of downtown tracts, as usual, changes these values. The adult businesses then become significantly related to housing value. See regression if 3 in Table 11.6. 62 Vr, Table 11.b; Multiple Kcgression; Adult Entertainnent Establishments and Housing Values, 1979 Control Variables Independent Variables Suonary Statistics X serving food Z of area units oonuercial Mean Income All adult Sexually- oriented Bars Beer Wine Liquor Class A Class B Class C RR2 Significance Regression H: Control only, with housing value. .b 36123.3! 77.63 3.199 error of b 4438.1' 121.79 .466 Big. 0 .525 0 beta .5449 .0550 .574 .724 .525 -O- Regression 12: Controls plus all adult businesses and housing value. .b 36985.7 101.99 3.090 -425.76 error of b 4507.3 123.80 .4769 396.43 sig. .000 .412 .000 .285 beta .5579 .0723 .5546 -.0789 .728 .529 .000 Regression 13: Controls plus all adult housing values: Includes downtown. .b 38683.7 -237.73 2.333 -648.93 error of b 4464.3 74.96 .4186 246.59 sig. .000 .OK.ouo .010 beta .5386 -.2*6 .3981 -.2074 .768 .588 .000 1 Table 11.6 Continued; Hiltiple Regression: Adult Entertalnnent Estal Control Variables Independent Variables Suonary Statistics Z serving food Z of area units oomnercial Mean Income Crime Index All adult Sexual ly • oriented Bars Beer Wine Liquor Class A Class B Class C VR R* Significance Regression 14:Controls, including crime index, plus adult, an) housing value. .b 33611.6 192.13 2.247 -127.73 -538.62 error of b 4409.5! 120.96 .5155 36.65 379.74 Big. .000 .115 .000 .001 .159 beta .5070 .1361 .4033 -.2848 -.0998 ,758 .575 -0- Regression 15:Controls sexually* oriented buslne and lousing value. .b 35823.3 80.94 3.162 -1627. « error of b 4451.0 121.88 .4682 1704.8 Big. .000 .508 .000 .342 .727 .528 .030 not issued in the 1970 sample, so neighborhood deterioration was probably well 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 for 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 must 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 low whether or not there are concentrations of adult businesses. The direction of the relationship probably depends on particular businesses in particular neighborhoods. In part this depends on the kind of neighborhood surrounding 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 crime rate probably exists given the strong negative relationship between income and crime, regardless of whether bars or other commer- cial businesses are present. (ol 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) The Affects of beer bars on housing values is negative and significant regardless of which controls are used, as long as they are used one at a time* (2) 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 bars and crime or housing value very strongly in the expected direction. It appears that primarily alcohol-serving businesses are much more strongly related to low housing values and high crime rates than are food service businesses. (4) The impact of zoning policy can be weakly discerned in the relationships when commercial concentration is controlled. Commercial areas themselves have some independent impacts on 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 — relationships, especially with crime. (5) When mean income by census tract is controlled, liquor, wine, and Class A entertainment bars have a positive association with neighborhood quality, i.e., they are associated with higher housing values and lower crime rates. (6) Sexually-oriented businesses continue to be associated with higher crime rates, even when the control variables1 impacts are considered simultaneously. (7) Liquor bars and Class A entertainment bars appear to decrease crime when the controls are taken into account. This is taken as evidence that the neighborhood residential and commercial characteristics are really determinative regarding the crime rate. The bars reflect their surroundings. (8) Only 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. 66 3. Testa 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 non-linear relationship would indicate that the methods used in the previous section are Improper, as they are 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 departures from linearity. The Inspection of residuals from multiple regressions reveal no clear-cut Interactions or cur- vilinear relationships.1 Therefore, the linear methods and assumptions, and conclusions drawn from them, are appropriate for this s tudy. 4. Causal Analysis This section addresses the following 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 must make use of special techniques and make assumptions about what causes what. If the data are consistent with the assumptions, then there is cir- cumstantial evidence that the causal relations assumed are correct. 1See Appendix £.1 for further discussion. 67 The major technique used here to assess causality is path analysis-I This approach uakes use of Pearson and partial correla- tions to test sdme 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 are 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 Appendix B.I. (Section D, p. B-ll) for further discussion of the technique. ^These summary variables were created from a set of 12 variables describing the residential and commercial characteristics of neighborhoods, including density, stability of residents, percent owner occupied, commercial vacancies, and so forth. The technique used was an R-factor analysis with Quartimax rotation. A single fac- tor accounting for 62 percent of the shared variance of the variable set was used to develop factor scores for each census tract. This new variable was used in Che path anlaysis. A 1970 factor was found that accounted for lUO percent of the shared variance of the variables. J some evidence developed in an earlier study in St. Paul.1 Using arrows to indicate the direction of causality, Figure II.1 represents this hypothesisl Causally speaking, Figure II.1 assumes that 1} che overall measure of neighborhood quality is casusally prior to all the other vaciablesr 2) that characteristics of adult establishments are caused by the general quality of the neighborhood; 3) that crime is caused by both general quality and adult businesses; and 4) that housing value is dependent upon all of the other variables. Table II.7 contains the relevant predictions and actual values of the correla- tion coefficients obtained froa the data. Figure II.1: Path Diagram of the hypothesis that Adult Establishments Contribute to On-Going Processes of Deterioration in Census Tracts Variable 1: Neighborhood Duality, 1979" Variable 4: housing _, Value, 1979 Variable 2: Adult Establishments, 1979 T Variable 3: Crime Index, 1979 1Minnesota Crime Prevention Center, "Neighborhood Deterioration and the Location of Adulc intertainraent Establishments in St. Paul" (Minneapolis: HCPC, Inc., 1978). Using different methods, the St. Paul stud> found that the location of bars was related to both prior measures of neighborhood deterioration, and to subsequent ones. It concluded that adult businesses may be part of a cycle of decline in which they contribute to or accelerate an on-going process. The model in Figure II.1 says chat there should be a direct rela- tionship between adult entertainment establishments and housing value, even when the general effects of neighborhood quality are 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 general neighborhood quality is controlled. This relationship is shown in Table II.7 in prediction 13. However, the observed partial correlation in Table II.7 Is -.0044 (Actual Value #3), which is too close to zero to accept the prediction as being accurate. The actual value suggests that when the general effects of the neighborhood quality index are taken into account, adult business concentrations have no relationship to housing value. In other words, the general character of the neighborhood is responsible for both housing values and concentrations of adult establishments. Table II.7; Path Analysis Predictions and Actual Empirical Values1 Predictions (1) Pearson's r, variables 2 and 4: r24 " (r!2) (r!4) (2) Pearson's r, variables 2 and 3: r23 " (ri2) (^13) (3) Partial correlation, variables 2 and 4, controlling for 1: r2A.l > 0. (4) Partial correlation, variables 2 and 3, controlling for 1: r23.i > 0. Actual Values (1) r24 - -.1320 - (r12) (r14) - -.130 (2) r23 - .1*26 - (r12) (r13) - .25 1 " --0044 - -.0761 logic of predictions in path analysis is discussed in Appendix B.I. 70 The predictions for adult businesses and crime (predictions #2 and are not so clear cue. The predicted correlations in Table 11.7 are similar to Che actual ones (r23.1 * -.0767 > 0). Conservatively, we must conclude that some small direct relationship between adult businesses and the crime index remains, even though the magnitudes involved are very snail* Alternatively, since the partial correlation between adult businesses and crime, controlling for the neighborhood quality Index, drops toward zero, we might also conclude that the neighborhood quality index is responsible for both the crime index and the presence of adult entertainment. This is similar to the case of housing value. However, the evidence suggests that a direct connec- tion between crime and adult businesses is possible, but slight.1 Figure 11.2 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 11.2: Revised Causal Path Model of Adult Entertainment and Measures of Neighborhood Decline Neighborhood Quality, 1979~ housing Value, 1979 Adult Entertainment, 1979 V Crime Index, 1579 ^lt should be noted that for all predictions an analysis of regression coefficients for these variables generally confirms the results reported here. The regression for crime, with both the quality index and adult business as independent, suggests chat the adult variable loses significance, and its coefficient drops toward zero. 71 73 adult businesses and crime reuiains. 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. Even 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 impact 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 "74 Section D ~^^~— — ~ Summary and Conclusions « Thl* portion of Che study of adult entertainment in Minneapolis 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. In addition, a summary measure of all adult businesses and Class B entertainment bars are significantly related to crime, using simple bivariate statistical techniques* (2) Taking factors which reflect business 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- opments 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 to 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 i.e., the neighborhood crime races are lower. This is a result which,**•». %•»••• ) actually indicates that the type of surrounding neighborhood deter- mines a great deal of the relationship between adult businesses and measure* of deterioration. (3) Evaluation 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 that decline. This assumption is very weakly supported in the case of ';\ crime, but it is clearly not supported in the case of housing values. -;SH:^" y Adult entertainment establishments do concentrate in areas that are relatively deteriorated, but they do not appear to cause that deterioration. At most, they contribute very weakly towards its continuation. (4) Sexually-oriented businesses have * greater number of signi- ficant relationships to high crime rates and low property values than any other type of adult entertainment establishment in this study. The relationship between sex businesses and higher crime rates is especially strong,. The association between these businesses and lower housing values disappears, however, when other factors are taken into account. In addition, these businesses are quite strongly related to percentage of vacant commercial properties, which is often used as a measure of a declining commercial area. These associations 74 alone are not evidence that a sexually-oriented business locating in an area cauaes other businesses to leave, or property values to go down. Alternatively, these associations may indicate that sex businesses locate where property values have already fallen and demand for commercial space is weak enough to permit them to compete success- fully 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 may 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 ones 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 management 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 localized impacts: even though we know of some bars that are associated with significant amounts of crime or angry neighbors, they do not, on the average, show up in this analysis of census tracts. 75 CHAPTER III EMPIRICAL FINDINGS AND POLICY RECOMMENDATIONS 7JJ 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 policies 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 establishments 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 been restricted by the liquor patrol limits. Thus they are less concentrated than liquor bars, and they are, on the average, closer to residential areas. The purpose of this 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. The two portions of the study used different methods, different measurements, ana different data sources to investigate a related set of research questions. Wherever these dif- ferent approaches converged on similar findings, we can have more con- fidence that they are providing an accurate picture of the rela- tionships as they actually exist, even though some oi the statistical results may be weak. 77 below are several tentative policy recommendations we make Co the City Council, based on the results of the study. The recommendations are stated, and the rationale for them follows. 1. Establishments which intend to serve alcoholic beverages as a complement 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, wine bars do a high percentage of their business in food service (the wine license requires that the vendor have at least 60 percent of his/her business volume in food service). Restaurant-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 relationship between wine licenses and crime or housing value would have to be re-evaluated. 3. The City should avoid locating sex businesses in residential areas. 4. The current policy of avoiding concentrations of sex businesses can neither be supported nor contradicted. Sex businesses do have significant and consistent positive corre- lations with the crime rate index and a negative correlation with the mean single family housing value, measured at the census tract level. The relationship with crime remains when commercial concentration and '*»-' J average household income are taken into account. The small nun bee of these businesses, plus their distribution, means that no large con- centrations of them exist. The large majority of census tracts that have sex businesses have only one. The two-or-three-establishment concentrations that exist, such as along Lake Street, cannot be ana- lyzed apart from their generally commercial surroundings using the techniques in this study. These sex businesses are statistically related to high commercial vacancies and high commercial crime rates, which suggest that they locate in less desirable commercial areas. 5. Adult entertainuent business (including bars) should be per- mitted only in locations that are at least 1/10 mile from residential areas (about 500 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 neighborhoods. This general finding is .supported by both portions of the study: the distance 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 at the neighborhood level. The latent of recommendation (b) is to avoid mixed commercial uses that may have undesirable effects. For example, the location of a bar next door to a movie theater or late-night laundromat may result in patrons of the non-adult businesses interacting with patrons of adult businesses, possibly increasing their chances of victimization. 79 S/ 7. Ihe circumstantial evidence generated by the study suggests that, although concentrations of adult businesses may not have dispro- portionate effects, they can raise the 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 in 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 right together have no greater total impact on 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 for other characteristics of the neighborhood, like percent commercial or average income, reduces or 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. - There is no direct evidence in the study that shows that adult businesses have greater impacts on deterioration in declining areas, but the possibility cannot be eliminated. Further, other studies of bO urban development suggest chat adult businesses may be seen as a .*""*. ^ ) barrier to upgrading neighborhoods.1 - Dispersal, as observed in Che 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 comounity-level commercial areas in different parts of the city, not to create a singular concentration of adult businesses like Boston's infauous "combat zone." Rather, the intent is to confirm what is really current city policy, with some extensions. It is already the case that adult businesses, especially liquor licensed bars, are quite concentrated downtown. In addition, zoning restric- tions already ensure that many adult business land uses will be in ••••<-•> highly commercialized areas- What is recommended here 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 street robberies occur. This confirms what has been found in other studies. Because bars are all located in commercial areas, by definition, It is difficult 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 *Phillip L. Clay, Neighborhood Renewal, Lexington, Mass: Lexington Books, 1979, pp" 47, 6A-b5, b2. 81 commercial areas is quite great, and could not 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. 1C. 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- ment or analysis techniques nay 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. 11. The study tends to support the position that adequate off- street parking or equivalent spaces on non-residential 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 decisions. 14. Parking, entertainment, clientele, and oanagement practices of adult entertainment businesses should be investigated further. *Crime in Minneapolis, op.cit., p. 174. The proportion of assaults where the victim was either intoxicated or leaving a bar was 12.5% in 1975. 82 The part of the study that analyzes Che relationship between cer- tain characteristics of bars and whether or not they are "nuisance" bars has pointed, to several factors that nay help to explain the dif- ferences among indiviaual bars in their effects on crime and other measures of neighborhood quality. The "nuisance bar" portion of the study was developed in response Co the concern of several Council mem- bers expressed during the course of the research. The nuisance study should be considered preliminary, but it does tend to confirm the expectations of Council members and staff regarding the effect of parking, 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. SS" APPENDIX A Supplementary Materials for Chapter I: Bars and Crime ••«*«*<•• ! APPliNOIX A.I Distance Decay Methodology < Discancy decay is a dec hod for analysis of crime at a limited level and a means for deriving crime impact statements. The method described is baaed on the distributional characteristics of crime which can be attributed to the geographic location of individual sites. The approach proposed here focuses on the types of crime patterns which can be derived from the analysis of the geography of crime with respect to individual sites. We have taken as a priori the assumption that for some types of crimes, and some 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 given the derivation of such a distribution, the actual impact of the sice on crime can be derived and transformed into a crime impact assessment of Individual sites, and sites of a similar character. It is important to note that these assumptions are only valid if there is some theoretical 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 wore events, or crimes, occur. Thus, the node is theoreti- cally as summed 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 I. A-l Figur-j 1 £An Interpretive Guide to Distance Decay Curves Relative Crime Density Relative Crime Density Relative Crime Density low DISTANCE DECAY PATTERN Crime density decreases as distance from site increases. .1 .2 .3 -4 .5 -6 r.:;f.-<-:c< frora ?<ie (in :-'. 11. s) low I NO DISTANCE DECAY PATTERN Crime density is constant as distance from site increases. .2 .3 .* .5 frci» Site (in nilrs) INVERSE DISTANCE DECAY PATTERN Crime density increases as distance from site increases. .1 .2 .3 .4 -5 . Distance from Site (Jr. rjl«-s) se • :« 1 IM c tyi".-«. Actt .-••*•'. /or cu: vilir.c.irlty. ti::».-s : ..ty •Uf.play .s'-..-c .-..-c-i.r.l of r.;.-<!cia COPY 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, x-b) to ascertain the 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 meaningful only if some 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 teenagers 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- cally suggested relationship of bars and crime could be made. Individual distance decays should be carefully assessed to determine that the results are actually due to the measured node and not to some other unmeasured factor(s) within the distance decay area. A-J The distribution of crimes around the various nodes can b« S*»»<) aggregated to perform a single distance decay analysis for a class of nod«s as defined by some theoretical or policy-relevant criterion. Distance 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 single node distance decays as described below with one difference. The aggregation procedure used is to identify th« total number of events (e.g., crimes) occurring in each 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. ""*•"' -''' The 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 istrue *iny a Distance D<.-r-iy Cur SC A I'l STANCE DF.CAY CL7.VE TJ'.sf • ...c c( .(, ) ' < »>.« r- f '(! of ':i' • : • *-r • '•tt« 1. C- ,...t t:.c .• V-r rf . . ; s >.tthtn .-...:h t.-.nd. 2. T: .- : - 'f-r;s <••.••>! <-"i:nt • •• o » rrlr.-; jiioyort frn by ^IvJ-" rn:s of .-11 .f!_.-s -.itMn .6 11- i of the site of t..i. 3.' Tr.':.- fc:r. .-.-?» «-i'.-.c ... ,.1.1 «---n «i.to a i.-t.rtvc . i»-..» of t>ic t^tal ;.r<»A !n tl;»t riot the r.s.i t.^r.ce '«* ?<f ' .; 'y rhe Jng crlr.a r.-»t«?s for r.ich l».->nd .ij...t'>st t'.o i*ts- Di?)V.SCE_n:-rATr CRi^E 5-OrK SHKt F.K1AT1VC DIS'1/NCE 10 SITE COl'ST OF CRIKE >FEA . i:rltlt-?) ._ .C.^.M'S1, lHO_PCiR1[iOS^ r_P.OiX.M ION 0 tf.ru::£h .1 .1+ thi. !gh .2 .2* through .3 ,3«- Uirc-jh .4 . .A* though .5 .5* thro-jh .* __ Si-M OF Cf.iMF.S: .. ^Cjnnt of ol..« t? ?C.--.«nl of ni-f fi In.MiVnt* for v<ll Vin<< .1339 .1914 .2500 .3056 ..is ••••J by s 3Crf::* f rv; ••! f f^n -!!v!^. •! Ly nroa pi Cj-crt Ion. The rolnt of the foim: butuvcn crime tft-nsity is .TS-H.- i-d to be D -i /* ((list.-,:,.-«) wli(.-re 5 is the density of crim^, .md f denotes the f tine It on relating distance to density. For our purposes, it is unnecoss.iry to derive A-S COPY the fmpJrical function /, which r.,r» rosily be Jr-rivA un«i,g rirple <»r polynomial regression t<-r|,iii(jiip<>. Our pri:r.,:.y »-c.->.i-rn is with '!<-iivir.g the ch.ir-.ct':rist>c slope of F, ««r F1. We r.m s »V;jl i M i • .-, 1 ly .-'.*.. rve thnt if f* < 0 then n «1tsr-,iire I't-r. iy rffr-rt'is ; r. - • nt. I f /' > 0 fl,«n a dir>f-'.ncc I'^-rov fff'-ct is not 11 r !•"•••• ut. O^ir ii'i! v~i' •; ?.is !'•• ''I «'"fff'-ct is not ]in-".«-iir. --ainfng Ll»c «!^jivcc > o vliich -.-c can .i T.;o f'-sts have fc.'r-n ••..••;>loy-.d 1.0 Jf.-rive 'if!5- tt?< \-: "f ; '.c . :i .n- dc ir.:-.r-ss of >". The first is a rl.i«r:ic rlit -v.qi: * ru itifi-fic -M-:h rcpoits •••3n-tli»?r cv-ni'S in the r.^.nre are unifw<..ily d i sf i i 1..-ite<1. A -^ig- nifi«'.n>t rht -square is t.iV.-n to in<Mi :«Le ncr.'ni! for. .i ty ?n r?,c •;•!'•*?. Tlie s«-rond t«.-5t is the 5i^ns t. ut .ij-j>liod to l!ic -!i J f«-i. .-..-..i J;ct.... en dict...nce <lr-r.iy coefficir-,)t.s in ^ b.!.;d of l.-s2t:r r.nlius .(..d a Ki.id of gror.i.-r radius. Sinrc vo It-ive six b.i.ids, we .ire i.. iking fiva cc: p-irisons ;uid i tying ':o. .i<-;cr-s the cJ.^rce to --hich the cr-otfii i..-nts v.ny in rela- tion to •• .M :h ot!.-r. '-1.. i « the s50ns uf nil fi.c r.-,.;•..< i ? ro:is -i i o •;« j;.-.f ive (i.e., . :-!» ^.j-s'I's < •«-.«• f f i< i«-nt is 1- s i 1 t,i I'l.-it vf 'J-.i !..;.••! f. ..Ji.i.-ly I ,js« t i *...-J t.o it), il..-ii -.;c - «rj .-i- -;t • ...» .-i j.t...'. 1; il 11 y '.>f 1/2* to ihe ob- seiv< d s*--pc of i he overall iH^t ,,i«-e «K?''."iy cuive. '.".i.-re -ill three tests, the dts^.-ire '!••' ..y <-v«uv<», ».I,e <"M .^-..ire, ii;d \\if. sijj.is test i;i«lic.ite sigui f i<*uiit .-ii»^.iL i .'C sloju-s, .1 «11 *t .;ur.e J«?f,iy eff«-ct is nssuir.cd to be ob?eiv.-;d in the J.nta. COPY A-t. Appendix A.2 Results of Summary Distance Decay Analyses for Detailed Categories Figure A.2.1 Distribution of Crime Around Bars by Types of Liquor Licenses, Controlling for Neighborhood Low owner Moderate Owner high Owner Occupied Occupied Occupied Row 123 Total 3 Beer 2 1 Wine 2 3 Liquor 2 1 3 Column Total 2 1 U • 52 N - 15 A/ v\ "- 169| \ IT- 23lf N - 56 N - 3 N - 28 V N - 89 \ N - 33 A/1 \N - 6 N - 42 N - 143 * • significant N * number of bars A-7 U - 21 N - 203 Q-? '-«*»*•' Figure A.2.2 bistribution of Crime and Bars by Type of Entertainment Categories, Controlling for Neighborhood Low Owner Moderate Owner high Owner Occupied Occupied Occupied Row 123 Total 3 Class C 2 1 3 Class b 2 1 3 Class A 2 1 3 Column Total 2 1 N - 151 V.N,^* N - 13 /\ N - 72 "X. \^N* N - 236 \ V.^N "^^.s*x-** h - 73 \ \i\ \—^- ^- — * N - 16 ^-x. ^N - 89 •s \ * i N - 40 \V, * \ N - 2 \ \ '^v _/ ^ v—- • N - 42> • ^'-"^* "^* N * 264 \ ^~— --,"* N - 13 A / \ •' 'Wx N - 90 ^v X^v^ \* K - 367 * - significant K - number of bars A-6 Figure A.2.3 Distribution of Crime Around Bars by Volume of Food, Controlling Neighborhood Less 3 Chan 50% food 2 More 3 than 502 food 2 Column local 2 Low Owner Occupied 1 Moderate Owner occupied 2 High Owner Occupied 3 Row Total •N - «8 N - 89 177 N - 16 N - 13 •% N - 29 N - 5 N - 108 N - 107 * - significant H » number of bars A-9 '•<**»«'' j Appendix A.3 Crime Concentration Values for Category Analysis Values for Figure A- 2.1, Cell L Cell 2 Cell 3 Row Total Cell 4 Cell 5 Cell 6 Row Total Cell 7 Cell 8 Cell 9 Row Total Column 1 Total Column 2 Total Column 3 Total Values for Figure A. Cell 1 Cell 2 Cell 3 Row 1 Total Cell 4 Cell 5 Cell 6 Row 2 Total Cell 7 Cell 8 Cell 9 Row 3 Total Column Values Values for Cell 1 Cell 2 Cell 3 How 1 Total Cell 4 Cell 5 Cell 6 KOW 2 Total Column 1 Total Column 2 Total Column 3 Total 2.38 2.67 3.49 2.52 1.15 2.32 .90 1.21 2.19 1.93 4.37 2.20 2.18 2.52 3.59 2.2, Type 2.31 2.40 3.54 2.35 1.56 None None Same as 2.11 3.33 5.14 2.15 Same as Figure A. 2 2.b9 2.47 4.25 2.8b 1.57 1.36 2.b8 1.57 2.13 2.01 3.90 Type of Liquor License and Neighborhood 1.50 1.29 1.19 1.42 2.08 1.14 3.60 2.04 1.63 1.17 1.18 1.62 1.63 1.27 1.26 1.08 1.06 .93 1.07 1.07 1.16 1.09 1.07 1.29 .96 1.03 1.28 1.25 1.04 .95 of Entertainment 1.40 1.25 1.28 1.38 2.15 Cell 4 1.86 1.40 .68 1.84 I .3, Volume 1.57 1.39 1.25 1.56 1.69 .bb 2.24 1.6b 1.64 l.lb 1.50 1.18 1,09 .95 1.16 1.07 1.39 1.18 1.25 1.38 .96 .98 1.16 .97 1.37 .92 .89 1.34 1.01 .92 1.10 1.01 1.02 .96 1.14 Categories 1.01 .97 1.15 1.01 .87 1.07 .92 .73 1.07 .86 .83 .81 .85 .70 1.0 .90 .71 .84 .79 .75 .84 .84 .83 .80 .84 .90 .80 .86 .67 .82 .41 .66 .71 1.11 .77 .71 .72 .93 .78 and Neighborhood .86 .84 .81 .86 .90 .79 .74 .57 .79 .79 .95 .77 .81 .77 .61 .86 1.13 .62 of Food and Neighborhood 1.29 1.23 .99 1.29 1.24 .68 1.16 1.23 1.26 1.01 1.03 1.10 .96 1.16 1.10 .99 .87 .82 .99 1.04 .93 1.07 .75 .71 .7b .75 .92 .94 .75 .92 .85 .Bl .77 .68 .91 .72 .09 .73 1.27 .74 .74 .71 L.06 .72 A-10 Appendix A .4 Liquor Licenses Granted Outside the Liquor Patrol Limits Between 1974 and 1979 Name 1. Ames Lodge 1106 2. Artist's Quartet 3. Black Forest 4. CC Club 5. Calhoun Beach Club 6. Campus Club 7. Howie's 8. Improper Fraction 9. Jimmy's 10. Martini's and Bagels 11. Minnikahda Club 12. Occie's 13. Poodle 14. Popeye's 15. Rainbow Cafe 16. Society of Fine Arts 17. Stardust Lanes 18. Stub n' herbs 19. Sunny's 20. Uptown bar and Cafe 21. Waldo's 22. Walker Art Center 23. Williams Pub Address 1614 Plymouth Avenue 14 East 26th Street 1 East 26th Street 2600 Lyndale Avenue South 2730 West Lake Street 300 Washington S.E. 2119 West Broadway 710 Washington S.E. 367S Minnehaha Avenue 302S West Lake Street 3241 Zenith 2951 Lyadale Avenue South 3001 East Lake Street 36U1 East Lake Street 2916 liennepin Avenue 2400 3rd Avenue South 252O 26th Avenue South 227 Oak Street S.E. 2944 Chicago Avenue 3016 liennepin Avenue 4601 Lyndale Avenue North Vineland Place 2911 hennepin Avenue A-ll Date Liquor License Granted 5/28/76 12/20/74 10/8/76 7/25/75 2/25/77 8/25/77 1U/10/75 • 4/25/76 2/28/75 3/17/78 12/12/75 2/28/75 2/4/75 3/27/75 3/27/75 7/25/75 8/8/75 2/14/75 2/28/75 2/13/76 11/27/74 4/30/76 3/26/75 Appendix A.5 List of Bars in the Nuisance Study Bars Identified as Nuisance bars Addison's Beanie's Carousel Dollie's Duffy's Jimmy1s Lonfehorn Moby Dick's Moore on University Mousey's hr. Arthur's Mr. Z's Hew Wonder bar Occie's Poodle Rainbow Bowl Spring Inn Uncle Sata's Union Waldo's Bars Identified as Non-Muisance Bars Arthur's Black Forest Cedar Inn Charlie's Duff's Dusty's Elsie's Famous Bar Hub Cap Jax LaFamilla Lake Inn Monte Carlo Nye's Parkway Sebastian's Sunny's The First Story Williams Pub Zurbey's A-12 Appendix A.6 Collection Instrument for Nuisance Bars NAM£: Arthurs ADDRESS: 1. Is Che volume of food business more or less than 50 percent of che bar's total volume? < 50 percent - 0 ^^^_ > 50 percent - 1 2. What Is the proximity of the bar to a predominantly residential area? Within 1 block - 0 1-2 blocks - 1 Greater than 2 blocks - 2 3 . What is predominant parking situation? _ Street parking - 0 _ hetered 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 Race _ Whit* - 0 _ Mixed - 1 _ Minority » 2 Social Pattern Single - 0 Couples - 1 Croups - 2 A-r3 APPENDIX B Supplementary Materials far Chapter II: Adult Entertainment and Neighborhood Deterioration lot Appendix B.I •^fc.^^/ / Methods used in the Research on Adult Entertainment A. Simple Relations The Pearson correlation, as reported, only establishes that a »• relationship exists, to what degree, and whether it is 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, blvariate correlations are presented here to substantiate and extend the discussion in the main text. To begin, the overall crime rate index reported in the main text hides some 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 compared with the significant negative relation of liquor and Class A bars with residential burglary. These figures illustrate the impact of zoning policy. The relatively high correlations between sex businesses and commercial criues may indicate that these businesses B-l 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 All adult businesses Sexually-oriented businesses Alcohol-serving businesses beer Wine Class A Class B Class C Beer Class A Class B Class C Wine Class A Class u Class C Liquor Class A Class b Class C Assault Rate .1889* .1876* .1258 .1173 -.0356 .0951 .2487* .1232 .0357 .2330* .Ott79 .0195 M.A. -.0401 .0456 .1273 .1175 Kesidentia Burglary Rate -.1010 .0648 -.1239 .2008* -.0225 -.2365* .1402 -.0518 .0555 .2701* .1412 .0333 N.A. -.10b6 -.1090 .0722 -.0873 Commercial Burglary Rate .0937 .3096* .0315 .1210 -.0907 -.0197 .1084 .0565 Commercial Robbery Rate .0317 .3003* -.0315 .1054 -.0629 -.0869 .1266 -.0191 Significant at the .05 level or better. B-2 Next, Table 8 gives the simple Pearson correlations between types of adulc businesses and various measures of business and city policy effects. Specifically, the food service measurement 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. For example, liquor bars cluster in areas where the overall proportion of the tract that is commercial is high, but they are negatively related to number of non-manufacturing businesses. 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 Entertainment Establishments and Measures of Policy Infuence Proportion of business predominantly food All adult businesses Sexually-oriented businesses Alcohol-serving businesses Beer Wine Liquor Class A Class b Class C .2565 -.0486 .3212* -.1183 .61b3* .3259* .3076* .0927 .2b7b* Proportion of Tract Commercial .4219* .0873 .3960* .0925 .2825* .4023* .3410* .1603* .36b9* Number of non-manu- facturing businesses .4030* .0453 .4290* .2375* .3994* -.3318* .3063* .1487 .4569* Proportion of Com- mercial Property Vacant .2081* .2457* .1736* .0422 -.0042 .1609* .1867* .1774* -Obl5 Significant at the .05 level or better. B-3 Finally, Table 9 shows the relations between the measures of neighborhood deterioration — crime and housing value — and the control variables. Table 9: Pearson Correlation Coefficients: Measures of Neighborhood Deterioration and Control Variables Mean Income Food Business Commercial Concentration Mean housing Value .4686* .4856* -.1631 1 Crime Rate Index -.6216* -.0676 .4840* Significant at the .05 level or better. One 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 are 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 lower correlations with housing value or residential burglary than beer bars. Finally, sexually-oriented businesses appear more likely to be located in tracts with high commercial criiae rates, even though these tracts are not the ones with the highest concentrations of commercial uses. b-4 B. Statistical Controls.. a- (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 mutual 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 result .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 control variable precedes the other variables in causal ordering. In the section on causal Inference we make use of this property to evaluate some assumptions 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 regression: 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 gives an estimate of the relative importance of the several indepen- dent variables in accounting for the variance of the dependent variable. B-5 The Independent variables used in Che multiple regressions reported here and in the main text were selected in part by initial step-wise regression! which help identify those variables that account for the largest proportions of the variance in the dependent variables. This exploratory technique helped to identify the variables which were then used in the further simple multiple regressions reported. Because this approach doesn't necessarily yield the most meaning- ful equations, mostly because of the implicit causal assumptions in the step-wise technique, additional criteria were used to select the independent variables* These included evidence from 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 are relevant to policy decision made about adult entertainment, and >they obviously change the relationship between 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 la frequently associated with housing choice, both for sociological (e.g., class preferences) and institutional (e.g., mortgage requirements) reasons.1 Finally, variables were selected to meet certain statistical requirements. The primary interest here was to avoid multicollinearity. Technically, this is a problem that occurs in multiple regression when a set of independent variables contain some relationships with high lj. Anthony, "The hffect of Income and Socio-Economic Groups on housing Choice," citeu in Michael Ball, "Recent Empirical Work on the Determinants of Relative housing Prices," Urban Studies 10, 1972, p. 232. Also see p. 231 in Call's article. B-6 correlations between them. Iho ettect of this is to make the coef- ficients derived to estimate the association of an independent variable and the dependent variable unreliable, i.e., containing a high degree of error that results in different estimates from one sample to the next. If the objective of the research is to estimate the total relationship (k or K>), multicollinearity is usually thought to pose no problea. however, we are interested here in comparing the effects of different variables on the dependent variables, so we want to avoid multicollinearity. The regressions reported in the main text use two variables that are correlated fairly high: mean houshold income and percentage of units in an area that are commercial. The simple Pearson correlation is -.6368, which may be high enough to cause trouble. In our judgment, the value of continuity in the pre- • sentation and analysis, and the intuitive value of both variables,\^•^t«a^ ^ ^out-weigh the danger of the multicollinearity.1 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 regressions were run which permitted the computer to select the variables according to the total amount of variance explained. In several of these, the adult variables achieved significance with respect to crime, but always with lower crime. These were rejected since they permit high mulcicollinearity among the variables, and thus the particular coefficients are uninterpretable. 1-kefer to the variables 'list and correlation catrix in Appendix ti.2. By 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 follow can serve as an introduc- tion to these terms and as a Justification for 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 dependent variable for each unit change in the Independent variable it modifies. (2) Error of b - This is the standard error of b, th* regression coefficient. It is the standard deviation of the dependent values predicted from that b and its independent variable, taking the number of cases into account. The standard error tells us how 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 the independent variable to the standard deviation of Che dependent variable. The point of doing this is to transform the dependent and Independent variables into units of measurement that are directly comparable — in this operation the unit of measurement for all variables becomes the standard deviation. Therefore any change of so many standard deviation units In one Independent variable is associated with Just so much change in similar units of the independent variable. The inde- pendent variables can thus be directly compared for the magnitude 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: Thia Is a test of the confidence we may have that a regression coefficient (standardized beta weights or ordinary b's) is actually different from zero. The closer 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. (5) R 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 t Pearson correlation coefficient, and can be interpreted similarly. •M=%fS#'' (6) R2 is the squared multiple correlation 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 Linearity Two tests for linearity were made on the results of the analyses described above: standard analysis of variance tests on the bivariate relationships between measures of neighborhood quality and adult entertainment establishments, and an examination of residuals for selected multiple regressions. ,.*«,, Some researchers suggested that concentrations of adult businesses **"*?!Ly may have disproportionate effects on measures of neighborhood quality. ''***•£_/ Figure A presents this "non linear" hypothesis. If the data do match this hypothesis, there are two consequences. First, it means that concentrations oE adult business are increasingly bad for neighborhoods as concentration Increases, and second, chat the common statistical techniques, such-as linear regression, must be modified. Figure A; Graphic Representation of the Hon-linear hypothesis of the Relationship Between Adult Businesses and Neighborhood Deterioration high Deterioration Low Low High Concentration of Adult Businesses Fortunately, the analysis of variance tests for linearity made on the bivariate relationships, and inspection of regression residuals, confirm that the relationships are linear. Presumably, Figure b is closer to the form of the true relationship. Figure B indicates that adult businesses* effects on neighborhoods, if any, would Increase in direct proportion to the number of establishments. Figure B; Graphic Representation of the Hon-linear Hypothesis of the Relationship Between Adult Businesses and Neighborhood Deterioration high Deterioration Low Low high Concentration of Adult Businesses fc-10 The analysis of variance test is an F-test that is based on a com- parison of Che correlation ratio, Lta^, with the squared correlation coefficient, r^.' The formula for the test is: Kk-2 N-k + q2 - r2) (N-K)K ' (1-t2) (K-2), where b is the number 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-test should yield a signifi- cant result.1 Inspection of residuals in this study simply involved visual Inspection of scatterplots 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 scatterplots* D. Analysis of Causality The path analysis technique used here is a way of comparing either regression coefficients or correlation and partial correlation coef- ficients to determine if the pattern of relationships in a data set are 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 1For example, see any edition of li. it. blalock's Social Statistics. b-ll (assumptions about causal relations in the data) to see which one is most consistent with the data.1 The approach has the advantage that it is possible to make causal Inferences with cross-sectional (one tlm« only) measurements- Since the data available cannot provide enough observations over time to do reliable time-series analyses, this advantage is decisive in this report. It is important to have some passing acquaintance with the path analysis technique used here. Figure C presents a simple model of the relationships between three (unknown) variables. The arrows represent causal connections ve expect on the basis of some theory: logically, there are many different possible sets of relationships among thtfse variables, but we have eliminated all but the one shown in Figure C. Next, the model has to be tested against empirical measure- merits to se« if the hypotheses it represents are consistent with data. Figure C: Simple 3-Variable Path Diagram, With Predictions Predictions ryz • rxy rxz ryz.x « 0 standard introductory reference for the technique is I:. M. Blalock, Causal Inferences in Nonexperimental Research (Chapel hill: University of North Carolina Press, 1964). B-12 Specifically, the model in Figure C asserts that variable X is the cause of both Y aad Z, but that there is no direct connection between Y and Z. Mathematicians have shown that these hypotheses translate into predictions' 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.* 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 alon^ that dlsconfirms it. Figure D shows the pattern of simple Pearson correlations among the variables used in the path analysis in the text. Figure D inclu- de* the variables for overall neighborhood quality and adult establishments for 1970. These correlations form the basis for the path analysis. 1 As sum ing (1) the model is correct, and (2) the effects of measurement error are random and negllgable. B-13 Figure D: Pearson Correlation Coefficients Among Path Analysis Variables .9726 Neighborhood^ Quality, 1979 .3235 Neighborhood Duality, 1970 -.3524 _Adult Establishments, 197(J \ -.3818 -.3409 -.3962 .8574 Adult Establishments, "1979 -.1320' \ -.6238 *>^xiious ing \ .1962 .2660 -.5231 Value, 1979 Criue Index, ~1979 The decision was made to use only the data for 1979 as (1) the measurements for 1970 were not identical to those for 1979, (2) there were too few observations to do a genuine time series analysis, and (3) the 1970 neighborhood quality ueausre and the 1970 adult business measure were very highly correlated with their 1979 counter parts. This last point means that, in this context, we cannot assume that the treasures' error terms are uncorrelated across time, making inference based on the relationships between them iraperroissable. B-14 The correlations in Figure D are compatible with many sets of assumptions besides the 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. Amont the alternative assumptions that could be nade here, see Figure E. 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 changes the observed relationship between the quality measure and housing value from .3235 to .2980. The hypothesis is clearly disconfiraed. This matches the expectations of common sense in this case > Figure £: Some Alternative Causal Assumptions Neighborhood Quality Index ^^ / __ ^3- Adult Businesses~ Lousing Value «*sr- B-15 Appendix B.2 List of Variables for Neighborhood Deterioration Study Variables 45 through 70 refer to 1979 data. Variables that be^in with "PM" are taken from the Property Management System. Variables that begin with "Pb" REL POS 1 2 3 A 5 6 7 a 9 10 11 12 13 14 15 16 17 IB 19 20 VARIABLE NAME SEQNUM SUBFILE CASUGT TRACT V12 V17 V20 Vlll V112 V113 IiEMOl POLK2 POLK6 POLKS POLK9 POLK 11 POLK12 POLK 16 X TRACT YTRACT are from the 1978 Polk City Directory. VARIABLE LABEL TOTAL NUMBER OF HOUSING UNITS TOTAL OUINER OCCUPIED TOTAL RENTER OCCUPIED PCT RESIDENTS STABLE 1965-1970 PCT HOUSING UNITS OCCUPIED PCT OWNER OCCUPIED TOTAL POPULATION TOTAL COML STRUCTURES PER CENT OF TOTAL COML. UNITS CURRENT COUNT ALL NET CHANGE COML. UNITS DURING PERIOD NO. COML. UNITS WITH CHG. OF OCCUPANTS VACANT COML UNITS CURRENT COUNT PER CENT OF TOTAL COML UNITS VACANT TOTAL NOH-HFG. FIRMS CURRENT COUNT X-COORDINATE OF TRACT CENTER Y-COORPINATE OF TRACT CENTER b-16 FOS NAME 21 DISTCBD DISTANCE OF TRACT CENTER TO IDS TOWER 22 RATEFI FREQUENCY OF CRIME - SEX RELATE!. CRIMES 23 RATEF2 - FREQUENCY OF CRIME - STREET ASSAULT 24 RATEF3 FREQUENCY OF CRIME - STREET ROBBERY 25 RATEF4 FREQUENCY OF CRIME - RES BURGLARY 26 RATEF5 ' FREQUENCY OF CRIME - COMM BURGLARY 27 RATEF6 FREQUENCY OF CRIME - COKM ROBBERY 28 RATEF7 FREQUENCY OF CRIME - VANDALISM 29 RATEF8 FREQUENCY OF CRIME - AUTO THEFT 30 AREA AREA IN SQUARE MILES OF TRACT 31 OUNVM MEAN VALUE OWNER OCC RES UNIT 32 MEANI MEAN FAM AND UNREL INCOME 33 HAGEPCT1 PCT RES STR BUILT 1969-70 34 HAGEPCT2 PCT RES STR BUILT 1965-68 35 HAGEPCT3 PCT RES STR BUILT 1960-64 36 HAGEPCT4 PCT RES STR BUILT 1950-59 37 HAGEPCT5 PCT RES STR BUILT 1940-49 38 HAGEPCT6 PCT RES STR BUILT BEFOR 1940 39 FACT01 CRIME RATES BY OPP - 1 2 3 7 8 r 40 FACT02 CRIME RATE BY OPP -456 41 ZV17 Z SCORE % OUNER OCCUPPIED 42 ZDEM03 ZSCORE % POPULATION WHITE 43 ZMEANI ZSCORE MEAN INCOME 44 NEIGH 3 TYPES OF NEIGHBORHOODS DERIVED FROM 7 45 FM8SF TOTAL SINGLE FAMILY UNITS 46 FM8DT TOTAL DUPLEX-TRIPLEX UNITS 47 PMSMF TOTAL MULTI-FAMILY UNITS 48 PM8HSF TOTAL HOMESTEAD SINGLE FAMILY UNITS 49 PMBHDT TOTAL DU-TRIPLEX HOMESTEAD UNITS 50 PM8HMF TOTAL HOMESTEAD MULTIFAMILY UNITS 51 PM8A1 '/. TOTAL SF BUILT BEFORE 1940 52 FM8A2 % TOTAL SF BUILT 1940-1959 53 PH8A3 % TOTAL SF BUILT AFTER 1960 54 PM8C1 XTOTAL SF WITH CONDITION 4,5. 55 PM8X1 SUM AREA CODES BY TOTAL SF UNITS 56 PM8X2 SUM SF BLD AREA BY TOTAL SF UNITS 57 PM8X3 GBA OF COMMERCIAL BY TOTAL COMMERCIAL F-OS 58 PM8X4 59 FM8X5 60 FM8X6 61 FM8X7 62 FM8X8 63 PM8X9 64 FM8X10 65 V8111 66 V8112 67 P3LK2 68 P8LK6 69 P8LK8 70 P8LK9 71 P8LK11 72 P8LK12 73 P8LK16 74 P8LKH 75 P8LKAH 76 P8LKIN 77 BAR7A 78 BAR7B 79 BAR7C 80 BAR7D 81 BAR7E 82 BAR7F 83 BAR7G 84 BAR7H 85 BAR7I 86 GMOV7 87 SUANA7 88 AMOV7 89 DBK7 90 POOL7 91 BARSA 92 BAR8B 93 BAR8C 94 BAR8D v,-,.-.i.-,i.LE SUM LOT AREA OF SF PUP TRIPLEX SUM LOT AREA FOR UNITS WITH ALPHA NOT =C SUM LOT AREA FOR UNITS WITH ALPHA = C SUM LOT AREA FOR ALL UNITS SUM MARKET VALUE SF BY TOTAL SF UNITS SUM EMV COMMERCIAL BY TOTAL COMMERCIAL U SUM BLD CODES BY TOTAL SF NSP PCT STABLE NSP PCT UNITS OCCUPPIEO X COMMERCIAL UNITS SUM COMMERCIAL UNITS CHANGE COMMERCIAL UNITS Z COMMERCIAL UNITS CHANG OF OCCUPANTS VACANT COMMERCIAL UNITS % VACANT COMMERCIAL UNITS TOTAL NOiN-MANUFACTURING FIRMS TOTAL HOUSEHOLDS AVE SIZE HOUSEHOLDS AVE HOUSEHOLD INCOME BEER BAR 1970 CLASS C BEER BAR 1970 CLASS B BEER BAR 1970 CLASS A UIME BAR 1970 CLASS C WINE BAR 1970 CLASS B UIME BAR 1970 CLASS A LIQUOR BAR 1970 CLASS C LIQUOR BAR 1970 CLASS B LIQUOR BAR 1970 CLASS A GENERAL MOVIE 1970 SUANA 197O ADULT MOVIE 1970 ADULT BOOKSTORE 1970 POOLHALL 1970 BEER BAR 1980 CLASS C BEER BAR 1930 CLASS B BEER BAR 1980 CLASS A UIINE BAR 1980 CLASS C KEL f'OS NAME LABEL 95 BARSE UINE BAR 1980 CLASS B 96 BAR8F UINE BAR 1780 CLASS A 97 BARQG LIQUOR BAR 1980 CLASS C 98 BAR8H LIQUOR BAR 1980 CLASS B 99 BAR8I LIQUOR BAR 1980 CLASS A 100 GHOV8 GENERAL MOVIE 1980 101 SUANA8 SUANA 1980 102 AttOVB ADULT MOVIE 1980 103 DBK8 ADULT BOOKSTORE 1980 104 FOOL 8 105 PRBAR8 PROBLEM BAR 1980 106 FOODS OVER 50% FOODS 1980 107 SEX8 SEUAL ENTERTAINMENT BAR 1980 108 OASLT8 OTHER ASSAULTS 1980 CRIMES 109 NASLT8 NONSTRANGER 1980 ASSAULTS 110 SASLT8 STRANGER TO STRANGER 1980 ASSAULTS 111 TASLTS TOTAL ASSAULTS 1980 112 RAPE8 RAPFS 1980 113 OCSC8 OTHER CRIMMINAL SEXUAL CONDUCT 1980 114 TCSC8 TOTAL CSC 1980 115 SROB8 STREET ROBBERRY 1980 116 FROB8 PERSONAL ROBBERY 1980 117 TPROB8 TOTAL PERSONAL ROBBERY 118 BROBS BUSINESS ROBBERY 1980 119 RBURG8 BURGLARY OF RESIDENCE 1980 120 BBURG8 BUSINESS BURGLARY 121 PM800 * OWNER OCCUPPIED 122 FM8TRU TOTAL RESIDENTIAL UNITS 123 FM8POO * OWNER OCCUPPIED 124 EPOP8 EST 1980 POP FROM POLK 125 ASLTSR 1980 ASSAULTS PER 1000 POP. 126 RAPE8R 1980 RAPES PER 1000 POP. 127 PROB8R. TOTAL PERSONAL ROBBERIES PER 1000 POP. 128 BROE.3R BUSINESS ROBBERIES PER 1000 POP. 129 RBURG9R RESIDENT BURGLARIES PER 1000 POP. 130 BBURG8R BUSINESS BURGLARIES PER 1000 POP. 131 CRDEX8 1980 TOTAL CRIMES ASLT THRU BBURG 1—19 FFL FOS W.KIAfrLE 132 133 134 135 136 137 138 139 140 141 142 143 144 145 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 NAME RESPCT8 COMPCT8 RAPE? ASLT7 RAPE7R ASLT7R EPOP CRDEX8R 'FACTS? BEER UINE LIOUOR BEER? UINE7 LIQUOR? SEXBIZ BARS BARS? HUPCTMF AREAMMF CBAR DENSE8 ADULT TYPEA TYPES TYPEC TYPEA7 TYPEB7 TYPEC? RBURG7R BBURG7R BROB7R DV8111 DV8112 DPHSPOO DEPOP8 168 DP8LK2 7. AREA RESIDENTIAL 1930 % AREA COMMERCIAL 1980 FREQ 1974 RAPES FREG ALL ASSAULTS 1974 RAPES PER 1000 POP. ASSAULTS PER 1000 POP. 1974 ESTIMATED POP FROM POLK SUM OF RESIDENTIAL CRIMES 1979 DATA SUM OF 1930 BARS WITH BEER LIC. SUM OF 1980 BARS WITH WINE LIC,. SUM OF 1980 BARS WITH LIOUOR LIC. SUM OF 1970 BARS WITH BEER LIC, 1970 UINE LIC. SUM OF 1970 LIQUOR? LIC. SUM OF 1980 SUANASf ADULT MOVIESi ADULTS SUM OF ALL 1930 BARS SUM OF ALL 1970 BARS PM8MF BY FM8SF+PM3DT+PM3MF FM8X5-FM8X4 CONDENSED BARS VARIABLE Oil = 1, GT 2 BAR EPOP8 DIVIDED BY AREA BARS+SEXBIZ 1980 BARS WITH CLASS A LIQUOR LIC. 1980 BARS WITH CLASS B LIQ. LIC. 1980 BARS WITH CLASS C Lid. LIC. 1970 BARS WITH CLASS A LIQ. LIC. 1970 BARS WITH CLASS B LIQ. LIC. 1970 BARS WITH CLASS C LIQ. LIC. RATEF4*1000 BY DEM01 RATEF5*1000 Iff DEM01 RATEF6*1000 BY DEM01 VS111-V111 V8112-V112 PM8POO-V113 EPOPS-riEMOl P8LK2-POLK2 KLL FOS 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 VARIABLE NAME DP8LK12 DP8LKIN DPMSX8 DRBURG DBBURO DBROB DRAPE OASLT DBARS DBEER DUINE DLIQUOR DTYPEA [iTYPEB DTYPEC FOODPCT FACTOR7 FACTORS VARIABLE LABEL P8LK12-POLK12 P8LKIN-MEANI PM8X8-OUNVM RBURG8R-RBURG7R f BROB3R-BROB7R RAPE8R-RAPE7R ASLT8R-ASLT7R BARS-BARS7 BEER-BEER7 UINE-UINE7 LIQUOR-LIQUOR? TYPEA-TYPEA7 TYPEB-TYPE7B TYPEC-TYPE7C FOODS BY BARS FACTOR SCORES FROM NEIGHBORHOOD VARIABLE 1980 FACTOR SCORES FROM NEIGH. VAR.S M-.M 12 Department of City Planning / City of New York Adult Entertainment Study Department of City Planning City of New York Rudolph W. Giuliani, Mayor Department of City Planning Joseph B. Rose, Director Second Printing November, 1994 DCP# 94-08 EXECUTIVE SUMMARY Municipalities throughout the country regulate the locations of adult entertainment establish- ments to limit their impacts on neighborhoods and the quality of life. Despite the recent proliferation of such uses in New York City — an increase of 35 percent in 10 years — current zoning regulations do not distinguish adult entertainment establishments from similar commercial uses without an "adult character." For example, triple-X (XXX) video stores and video stores that do not purvey pornography are regulated identically in the Zoning Resolu- tion. The Department of City Planning (DCP) undertook the "Adult Entertainment Study" to determine the nature and extent of the secondary impacts of adult entertainment uses on communities in the city. The Study includes: (1) a survey of existing studies concerning the impacts of adult entertainment establishments and regulations of such establishments in other localities; (2) a description of the adult entertainment business in New York City; (3) a review of studies and reports on adult entertainment establishments in New York City; (4) a DCP survey of the impacts such establishments have on communities in the City; and, (5) overall study findings and conclusion. Background In 1977, after concluding that adult entertainment uses had negative impacts on communities, the City Planning Commission (CPC) proposed new zoning regulations distinguishing adult entertainment uses and restricting their potential locations. The proposal was withdrawn at the Board of Estimate due to a lack of consensus regarding the appropriate extent of such regulations and concern that the regulations being proposed might result in the movement of adult uses to new locations. The recent proliferation of adult entertainment establishments, often identified by graphic signage, has led to widespread concern about potential deterioration in the quality of life in many of the city's neighborhoods. Some residents, concerned about the negative impacts of adult uses in their neighborhoods and fearful of the potential results of proliferation, have organized ad hoc groups and appealed to local officials to have them closed down. Such local opposition ultimately resulted in the voluntary closing of adult video stores and bars in Astoria, Jackson Heights, Chelsea, Murray Hill, Forest Hills, and Bay Ridge. Two bills have been introduced in the City Council to regulate the location of adult entertainment uses. A resolution has also been introduced at the Council calling for zoning amendments to restrict adult entertainment uses. Table of Contents Page EXECUTIVE SUMMARY / I. Introduction Study objectives 1 Definition of adult entertainment establishments 1 n. Studies and Regulations in Other Localities Impacts found in other localities 3 Regulations in other localities 9 m. The Adult Entertainment Industry Industry trends , 15 Inventory and trends, by location and type 18 Industry views 25 IV. Adult Entertainment Zoning in New York City Current zoning 29 Prior zoning proposals in NYC 32 V. Adult Entertainment Impacts hi New York City Impacts identified by the City Planning Commission, 1977 35 Impacts identified by the Office of Midtown Enforcement 36 Impacts identified in the Chelsea Business Survey 38 Impacts identified at the public hearing of the Task Force on the Regulation of Sex-Related Businesses 39 Impacts identified hi the Times Square Business Improvement District Study . 40 Impacts identified hi newspaper reports and correspondence 42 VI. Survey of Adult Entertainment Uses Summary survey results 49 Analysis of criminal complaint data 55 Analysis of property assessed values 57 Vn. Overall Study Findings and Conclusion 59 APPENDICES A. Study Areas B. DCP Survey of Adult Entertainment Establishments, Fall 1993 The consensus among those expressing opposition to the operation of adult uses is that adult entertainment establishments have a negative impact on the communities in which they are located. These impacts include: inappropriate exposure of children and teenagers to graphic sexual images, increased crime, diminishing property values, adverse effects upon the climate for other types of commercial activities, and overall negative influences upon community character. Recent Trends in the Location of Adult Entertainment Uses After burgeoning growth in the early 1970's, the number of adult entertainment establish- ments in the city declined by 13 percent from 151 in 1976 to 131 in 1984.' By 1993, however, DCP identified 177 such establishments with assistance from the 59 Community Boards. This represents an increase of 35 percent over the last decade. Should this growth continue at the same rate, an additional 60 adult entertainment establishments will be operating in the city by the year 2002. The DCP survey focused on three types of uses: triple-X video and bookstores, adult live or movie theaters, and topless or nude bars. These adult uses were further limited to those which identified themselves as "adult," through signage or other advertising. The survey may understate the total number of adult entertainment uses. The locations of these establishments are shown on a map following page 19. More than 75 percent of the adult establishments were located in zoning districts that permit residences. Since the survey was completed, several new adult entertainment establishment have opened. The production and distribution of sexually explicit materials has changed dramatically in recent years. Adult material is more readily accessible than it used to be, and a greater variety of products are available to segments of the adult entertainment audience - both inexpensive material and fancier entertainment are more readily available than ten years ago. In particular, triple-X videos are now produced cheaply and sold for prices below $5, whereas only a few years ago adult films commanded prices of approximately $100. In addition there are more topless bars than previously, due to a proliferation of topless bars affecting an "upscale" image. Partially as a result of these changes in the adult use industry, adult entertainment establishments are now found more widely throughout the city. Historical data was obtained from various sources. Caution should be exercised in interpreting trend data because the defining characteristics of adult use may vary among sources. In terms of their location, adult entertainment uses have continued an historical tendency to concentrate in specific areas. Over the last ten years most adult entertainment establishments have continued to concentrate within a few community districts in Manhattan. However, within that period the number of community districts citywide with seven or more adult entertainment establishments nearly tripled, from three to eight. Between 1984 and 1993, the number of adult bookstores/peep shows/video stores increased citywide from 29 to 86 establishments. Within this category, 74 percent consisted of adult video stores, none of which were noted in the 1984 survey. Adult movie and live theaters continued to decline from 48 in 1984 to 23 in 1993. Topless and nude bars increased by 26 percent in the same time period, from 54 to 68. Impacts Found and Regulations in Other Localities Other jurisdictions that have studied the effects of adult entertainment uses have consistently found that these uses have negative secondary impacts. This has been the case for large cities (such as Chicago and Los Angeles), medium-sized cities (such as Austin, Texas) and small villages (such as Islip, New York). Similar negative secondary impacts (e.g., a relationship between the concentration of adult entertainment uses and increased incidence of crime) have been found despite widespread variation in land use patterns and other local conditions. While New York may differ from these other jurisdictions in certain respects, their experience with adult entertainment uses is highly relevant to consideration of the need for some form of regulation. Both the United States Supreme Court and the New York Court of Appeals have recognized that, in adopting regulations, a municipality may rely on the experiences of other jurisdictions that have determined that adult uses have secondary impacts. Relevant studies from other jurisdictions include the following: The Town of Islip, in Suffolk County on Long Island, prohibited adult uses from locating in downtown commercial areas because they would produce a "dead zone" that shoppers would avoid. Other government efforts to revitalize or stabilize these areas and attract private investment would be impacted negatively. The City of Indianapolis, Indiana, conducted national and local surveys of real estate appraisers regarding the impact of adult uses on property values in middle-income residential neighborhoods. A majority of the appraisers, seventy five percent, responded that such a use located within one block of such a residential neighborhood would have a negative effect on the value of both residential and commercial properties. iii The City of Whittier, California, in a study of the impacts of adult establishments found higher turnover rates in commercial and residential areas adjacent to adult uses. The study also compared 38 types of criminal activity over two time periods, showing a total increase of 102 percent for the study area containing adult businesses, while the city as a whole had only an eight percent increase. A study by the City of Austin, Texas, compared areas with adult businesses to other areas containing similar land uses but no adult businesses, and found a sex crimes rate between two and five times greater in the areas with adult businesses. The study also showed that the sex-related crime rate was 66 percent higher hi areas having two or more adult businesses than in those areas having only one such business. Phoenix, Arizona, studied the relationship between arrests for sex crimes and the locations of adult businesses, and found an overall increase of six times the sex crime rate in the study areas with adult uses over the control areas without such uses. The State of Minnesota reported that a study conducted in that state examining the effects of sexually-oriented businesses upon property values and crime rates indicated that such businesses had a strong negative impact on the crime rate. The addition of one sexually- oriented business to a census tract area caused an increase in the overall crime rate index in that area by more than nine percent. In another state study, it was determined that there was a statistically significant correlation between the location of adult businesses and neighborhood deterioration. Housing values were significantly lower in an area with three adult businesses than in an area with only one adult business. Also, there was a significantly higher crime rate associated with two adult businesses in an area than was associated with only one adult business in an area. Many other cities currently regulate adult uses differently from other commercial uses and several of these are discussed later in this study. Most often, these regulations disperse such uses rather than concentrating them in any particular area of the munici- pality and may also exclude them from certain areas. For example, Los Angeles, California, generally prohibits new adult uses from locating within a certain distance of another such use. Los Angeles enacted its dispersal zoning after a study concluded that the concentration of adult uses had negative impacts on criminal activity, property values, and public perceptions of the quality of life. IV Impacts Identified in Studies in New York City Several studies have identified the impacts associated with adult entertainment establishments in New York City. In 1977, the City Planning Commission proposed a zoning plan to limit the concentration of adult uses after relating the proliferation of such establishments to economic decline, and finding a linkage between increased numbers of felonies and the concentrations of adult uses. In 1993, the Chelsea Business Survey concluded, after surveying 100 businesses located in that community, that dispersal zoning should be enacted to prevent the transformation of Chelsea into a red light district. A majority of the businesses surveyed felt that a recent proliferation of adult entertainment establishments in Chelsea had hurt them economically. This year, the Times Square Business Improvement District (TSBID), after conducting a study of the secondary effects of the concentration of adult use establishments hi the Times Square area, called for the dispersal of adult uses in commercial and manufacturing areas. The TSBID study shows that the rate of increase in assessed values for blocks with an adult use did not increase as much as the rate of increase on nearby control blocks without adult uses. The study also notes that there were almost twice as many complaints about crime for the study blocks with adult establishments as nearby control blocks without adult uses. Property and business owners expressed the view that adult uses located in the area, particularly in concentration, have had a negative impact on their businesses, deterring potential customers. DCP, as part of this Study, selected six study areas where adult uses were located. Because Times Square was already being studied by TSBID, DCP selected study areas which had lesser concentrations of adult uses. Most of the areas are in the other boroughs and in some cases contained only a single isolated adult entertainment use. DCP surveyed representatives from community boards, local organizations and local businesses, as well as real estate brokers, police and sanitation officers, and representatives of the adult entertainment industry to gather information on land use, street conditions, signage, and impacts. An analysis of assessed values and crime data was also made. The six study areas are shown on the map following page 49. Many residents and community organizations cited adult entertainment establishments as having significant or potentially significant negative impacts in their communities. Real estate brokers indicated that such establishments have negative impacts on property values. These findings are consistent with the data found in the TSBID study and the Chelsea Business Survey, along with other data described in more detail in this report In some cases, particularly in study areas with only one adult entertainment establishment, the DCP survey did not yield conclusive evidence of a direct relationship between the adult use and the urban ills affecting the community. This reflects the fact that, in a city as dense and diverse as New York, it is difficult to isolate specific impacts attributable to any particular land use. Other cities that have conducted similar studies have acknowledged this same difficulty. For instance, the Los Angeles City Planning Department concluded that while assessed valuation of properties in areas characterized by adult uses "generally" tended to increase to a lesser degree than similar control areas, "there was insufficient evidence to support the contention that concentrations of sex-related businesses have been the primary cause of these patterns". Adult entertainment businesses were nevertheless perceived by the majority of the Los Angeles respondents as exerting a negative impact on surrounding business and residential properties. Whether or not such negative impacts had actually occurred, or were only perceived to have occurred, could not always be determined by the survey, but the study concluded that "in terms of the attitudes of the respondents towards such businesses, the conclusion must be drawn that the overall effect on surrounding properties is considered to be negative." DCP's survey identified strong concerns about the negative impacts of adult uses similar to those found in the Los Angeles study. Even in those study areas where it could not be readily determined that negative impacts were already being felt, there was a strong body of opinion, especially among residents, that adult entertainment uses were having negative impacts and that a further proliferation of these uses in the community would lead to a neighborhood deterioration. The experience of urban planners and real estate appraisers indicates that negative perceptions associated with an area can lead to disinvestment in residential neigh- borhoods and a tendency to shun shopping streets where unsavory activities are occurring, leading to economic decline. The forces that influence real estate value are described as follows: "The market value of real property reflects and is affected by the interplay of basic forces that motivate the activities of human beings. These forces, which produce the variables in real estate market values, may be considered in four major categories: social ideals and standards (emphasis added), economic changes and adjustments, governmental controls and regulation, and physical or environmental changes."2 The attitudinal data in the survey is thus significant even in those instances where the current negative impacts of adult entertainment establishments are difficult to measure. Fear of the potential proliferation of adult uses is a well founded concern. Taken alone it may not seem significant if someone smokes in a subway car, scribbles graffiti, jumps a subway 1 "The Appraisal of Real Property," seventh edition, by the American Institute of Real Estate Appraisers. vi turnstile, aggressively panhandles or squeegees a car windshield, particularly in a city where there are other pressing problems such as homelessness, violent crime and unemployment. But when these small incidents, and establishments, proliferate and accumulate, they can tear at the urban fabric. Similarly, as the city's experience in the Times Square area indicates, the proliferation of adult uses in an area does have significant and potentially devastating impacts on the character of a community. The City has adopted an aggressive and comprehensive policy of addressing various quality-of-life issues that has begun to yield beneficial results. The problems posed by adult entertainment establishments are among the important quality-of-life issues that affect our neighborhoods and communities. Overall Findings and Conclusion • Numerous studies in other localities found that adult entertainment uses have negative secondary impacts such as increased crime rates, deprecia- tion of property values, deterioration of community character and the quality of urban life. • There has been a rapid growth in the number of adult entertainment uses in New York City. Between 1984 and 1993, the number of such uses increased from 131 to 177. The number of video/book stores/peep shows almost tripled and there was a 26 percent increase in topless/nude bars. Adult theaters declined by 52 percent. • Adult entertainment is more readily accessible in NYC than it was ten years ago. There are more such establishments in a greater number of communi- ties. Adult videos are produced in greater numbers and at lower costs. They are often available in general interest video stores as well as those devoted exclusively to adult entertainment. Cable television has significantly increased the availability of adult viewing material Adult material is also available at newsstands and book stores. • Adult entertainment uses tend to concentrate. The number of community districts with seven or more adult uses increased from three to eight over the last ten years. Seventy five percent of the adult uses are located in ten of the city's 59 Community Districts. In Manhattan, adult uses cluster in central locations, such as the Times Square area. In the other boroughs, adult uses appear to cluster along major vehicular routes, such as Queens Boulevard and Third Avenue in Brooklyn, that connect outer reaches of the city and suburbs to the central business district . • Studies of adult entertainment uses in areas where they are highly concentrat- ed, such as Times Square and Chelsea, identified a number of significant negative secondary impacts. In the Times Square area property owners, theater operators and other business people overwhelmingly believe that their businesses are adversely affected. An analysis of criminal complaints indicated vi a substantially higher incidence of criminal activity in the Junes Square area where adult uses are most concentrated. In addition, the study found that the rate of increase in assessed property values for study blocks with adult uses grew at a slower rate than control blocks without adult uses. • DCP's survey of areas with less dense concentrations of adult uses found fewer impacts than the study of the Times Square area. However, community leaders expressed concerns that adult uses impact negatively on the community and they strongly fear the potential results of proliferation. • The strongest negative reactions to adult entertainment uses come from residents living near them. • Where respondents indicated that their businesses or neighborhoods had not yet been adversely affected by adult uses, this typically occurred in study areas with isolated adult uses. Moreover, these same respondents typically stated that an increase in such uses would negatively impact them. Community residents fear the consequences of potential proliferation and concentration of adult uses in traditionally neighborhood-oriented shopping areas and view the appearance of one or more of these uses as a deteriora- tion in the quality of urban life. • Most real estate brokers report that adult entertainment establishments are perceived to negatively affect nearby property values and decrease market values. Eighty percent of the brokers responding to the DCP survey indicated that an adult use •would have a negative impact on nearby property values. This is consistent with the responses from a similar national survey of real estate appraisers. • Adult use accessory business signs are generally larger, more often illuminated, and graphic (sexually-oriented) compared with the signs of other nearby commercial uses. Community residents view this signage as out of keeping with neighborhood character and are concerned about the exposure of minors to sexual images. Based on these findings, DCP believes it is appropriate to regulate adult entertainment estab- lishments differently from other commercial establishments. The experience of other jurisdictions, the city's historic experience hi Times Square, studies performed by the TSBDD and the Chelsea Business Survey, and DCP's own survey, establish the negative effects of adult entertainment uses. Consideration of the specific nature and extent of regulations that would be appropriate for adult entertainment establishments in New York City was not within the scope of this Study. However, in light of the negative impacts of adult uses in concentration, the following regulatory techniques, which have been used in other jurisdictions, merit consideration in developing adult use regulations: restrictions on the **"** location of adult uses in proximity to residential areas, to houses of worship, to schools and *****"} to each other. viii L INTRODUCTION Study Objectives The Department of City Planning undertook a study to evaluate the nature and extent of adverse impacts associated with adult entertainment uses in other localities and in New York City. The study responds to concerns of city residents, businesses, and elected officials about the proliferation of adult entertainment establishments in various parts of the city. The issues posed by adult uses are complex, and often involve speech or conduct protected by the federal and New York State constitutions. Any regulation must be based on a careful analysis of past, present and potential adverse impacts of adult uses upon the quality of life in the city's neighborhoods, as well as the effects of possible regulatory solutions upon protected speech. This study includes (1) a survey of existing studies concerning the impacts of adult entertain- ment establishments and of regulation .of such establishments in other localities; (2) a description of the adult entertainment business in New York City; (3) a review of studies and reports on adult entertainment establishments hi New York City; (4) a DCP survey of the impacts such establishments have on communities in the City; and (5) a set of overall findings and recommendations. Definition of Adult Entertainment Establishments There is a vast array of businesses that may be considered "adult." These include video and bookstores, motels, massage parlors, sex clubs, topless and bottomless or nude bars (not all of which serve alcohol), and peep shows. Materials may include sexually explicit videos or magazines. Services may include body rubs, or entertainment such as nude dancing. For purposes of the DCP survey, an adult entertainment establishment is a commercial use that defines itself as such through exterior signs or other advertisements. Thus, a "triple-X or XXX" video store is an adult entertainment establishment, but a neighborhood video store that devotes a small area to triple-X videos is not. This self-defining characteristic allowed the survey to focus on those establishments for which there is some consensus that the use is adult. It also means that it is possible to obtain adult entertainment materials, such as videos and magazines, at establishments that sell primarily non-adult materials and that some businesses that are devoted to adult entertainment but do not publicly proclaim the fact were not included in the DCP survey. The survey was further restricted to three types of such uses: adult video and bookstores, adult live or movie theaters, and topless or nude bars. Other uses directly associated with the commercialization of sex, such as massage parlors or brothels (which are not permitted in New York City), and sex clubs, as well as some of those uses indirectly associated with the commercialization of sex such as discos, motels, newsstands, and candy stores that sell some adult magazines, were excluded from the study. The term "adult use" is technically defined differently from municipality to municipality, but generally refers to a commercial establishment that purveys materials or services of a sexual nature. For example, both the City of Boston, Massachusetts, and the Town of Islip, New York, classify adult book stores to mean those that exclude minors by reason of age.3 Other cities such as Detroit and Los Angeles classify adult uses on the basis of the content of the materials shown or the types of activities that may be found in adult establishments; the uses emphasize "specified sexual activities" or "specified anatomical areas.4 A movie theater generally showing adult films is an example of such a use. 3 The adults-only definition recommended to be applied in the Islip Town ordinance avoids emphasis on the content of material, thereby avoiding Constitutional questions based on the First Amendment, and allowing pornographic uses to define themselves." Study and Recommendations for Adult Entertainment Businesses in the Town of Islip, Town of Islip Department of Planning and Development, 1978. 4 "Specified Anatomical Areas" shall mean and include any of the following: (a) Less than completely and opaquely covered human genitals, pubic region, buttocks, anus or female breasts below a point immediately above the top of the areolae; or (b) Human male genitals in a discemibly turgid state, even if completely and opaquely covered. "Specified Sexual Activities" shall mean and include any of the following: (a) The fondling or other erotic touching of human genitals, pubic region, buttocks, anus or female breasts; (b) Sex acts, normal or perverted, actual or simulated, including intercourse, oral copulation or sodomy; (c) masturbation, actual or simulated; or (d) Excretory functions as part of or in connection with any of the activities set forth in (a) through (c) above. Planning and Zoning Code, Los Angeles, Section 12.70.B.13-B.14. H. STUDIES AND REGULATIONS IN OTHER LOCALITIES Impacts Found in Other Localities DCP reviewed impact studies from the following municipalities: Islip (NY), Los Angeles (CA), Indianapolis (IA), Whittier (CA), Austin (TX), Phoenix (AZ), Manatee County (FL), New Hanover County (NC), and the State of Minnesota. Islip, New York The Town of Islip completed a study of adult uses in September, 1980.5 The study formed the basis of new zoning provisions that allowed adult uses only in Industrial I Districts, by special exception of the Board of Appeals. Adult uses would not be allowed to locate within 500 feet of residential uses and public facilities, nor would they be permitted to locate within one half-mile of another adult use. Islip proposed the one-half mile requirement to prevent a concentration of sex businesses visible to the driving public, thereby hindering the creation of a "combat zone." By limiting adult uses to certain industrial zones, Islip proposed to prevent "skid row effects" in declining downtown commercial areas. The proposal was expected to further other anti- skid row efforts such as new public investment, the prohibition of certain residential conversions, and restrictions on new bars. It was also formulated to prevent "dead zones" from developing in commercial areas. According to the study, these areas are avoided because shoppers do not want to be associated in any way with adult uses, or have their children walk by adult uses. Citing its case study, Islip indicated that the main complaint about a given adult book store is its proximity to an adjoining residential area. Other impacts included parking hi residential areas (store patrons may wish to "hide" their automobile from view by parking away from the adult establishment). The study, relying on newspaper articles, indicated that another impact is the reputed association of the adult book store operators with organized crime. 5 "Study and Recommendations for Adult Entertainment Businesses in the Town of Islip," Department of Planning and Development, 1980. Islip's study stated that persons who protested the establishment of the book store feared retaliation: "... the potential for violence or other illegal behavior is clearly possible."6 The individual site analyses identified similar impacts found in the case study. Some establishments were located close to residential areas, causing uncharacteristic parking impacts, night-time activity, noise and dust. Other establishments located in declining downtown areas created dead zones or discouraged shoppers from walking in pedestrian- oriented commercial areas. Los Angeles, California In 1977, the Los Angeles City Planning Department completed a study of adult uses for the Planning Committee of the City Council.7 The study was intended to determine whether a concentration of adult establishments has a blighting or degrading effect on nearby properties and/or neighborhoods. The study provided a basis for zoning regulations adopted the following year that prohibited adult entertainment businesses within 1,000 feet of another such business or within 500 feet of any religious institution, school or public park. More restrictive provisions were added subsequently. Police Department statistics indicated a greater proportion of certain crimes in Hollywood (where the largest concentration of adult establishments is found hi the city) compared with the city as a whole. Other impacts could be traced to public perceptions. The study examined public testimony and found that many people, particularly the elderly, were afraid to walk the streets in Hollywood. Others had expressed concern that children were being exposed to sexually explicit materials and unsavory persons. Some businesses were no longer remaining open in the evenings and others had left the area allegedly directly or indirectly because of the establishment of adult businesses. Some churches in Hollywood were driving the elderly to services and others were providing private guards in their parking lots. A survey of real estate professionals indicated that the concentration of adult establishments had an adverse economic effect on the value of commercial and residential property. Business * Ibid, p.12 7 "Study of the Effects of the Concentration of Adult Entertainment Establishments in the City of Los Angeles," Los Angeles City Planning Department, June, 1977. persons believed that the quality of life and business was adversely affected by litter, graffiti, difficulty in recruiting employees and retaining and attracting customers. Also noted was difficulty in renting office space and keeping desirable tenants. Indianapolis, Indiana The Indianapolis Division of Planning undertook a study, published in 1984, to determine if zoning controls were warranted for adult entertainment businesses.8 The study recommended that adult uses should be allowed only by special exception in commercial districts oriented beyond a neighborhood, and not within 500 feet of a residential, school, church or park property line, or historic area. The Indianapolis study analyzed crime data, including sex crimes, and real estate data, including a national survey of real estate appraisers. The study cautions that the analyses should not be construed as conclusively proving a causal relationship between adult uses and increased crime or decreased property values. However, the study found that major crimes occurred in study areas that contained at least one adult entertainment establishment at a rate that was 23 percent higher than six control areas (similar areas but without adult establish- ments), and 46 percent higher than the Indianapolis Police District. The average sex-related crime rate per 10,000 population in the control areas over a five-year period was 26.2, while that rate for the study areas was 46.4. A survey of real estate professionals was undertaken in conjunction with the Indiana University School of Business' Division of Research. It consisted of a 20 percent random sample of nationwide members of the American Institute of Real Estate Appraisers and a 100 percent sample of Member Appraisers Institute members who practiced in 22 Metropolitan Statistical Areas (MSA) of a size similar to Indianapolis. The appraisers were asked to give their "best professional opinion" about property values in a hypothetical situation where an adult bookstore was about to locate in a middle-income, residential neighborhood. A majority of appraisers (75%) responding to the national survey thought that an adult bookstore located within one block would have a negative effect on the value of both residential (80%) and commercial (72%) properties. At a distance of three blocks, 71 percent thought that the impact of an adult bookstore fell off sharply so that the impact was negligible on both residential (64%) and commercial (77%) properties. 8 "Adult Entertainment Businesses in Indianapolis, An Analysis," Division of Planning, 1984. Whittier, California In 1978, the City of Whittier, citing "operational characteristics which may have a deleterious effect on immediately adjacent residential and commercial areas," defined and regulated adult uses through a conditional use permit.9 The urgency measure was based on the Detroit dispersal model, pending a planning study of adult businesses and subsequent legislation, if necessary. The purpose of the study and eventual legislation was to protect adjacent commer- cial and residential districts within the City from the "possible blighting or downgrading effect of adult businesses" although the study cautioned, however, that adult businesses were only one of a variety of factors influencing the study areas. The study found higher turnover rates in commercial and residential areas adjacent to adult uses. A compilation of police statistics indicated that all of the nude model studios and three massage parlors were actively involved in prostitution and that a number of assaults and thefts had occurred on the premises. There were also numerous reports of excessive noise, drunkenness and pornographic litter connected to adult businesses. A comparison of 38 types of criminal activity between two time periods, 1970-73 and 1974-77, showed a total increase of 102 percent for the study area containing adult businesses while the city, as a whole, only had an eight percent increase. Citizens testified at several public hearings about their fears of walking on nearby streets, of their children being confronted by offensive individuals or exposed to sexually explicit material, and some reported mat businesses had left the area. The report discussed the difficulty of assessing the moral and emotional impact of adult businesses on a neighborhood but suggested that it could be gauged by community outrage. The study concluded that the prolonged concentration of adult businesses adversely impacts neighborhoods, based on experiences in other municipalities, and recommended the regulation of a variety of defined sexually-oriented businesses by locational restrictions within portions of industrial areas and shopping centers subject to a conditional use permit. Austin, Texas In 1986, the City of Austin conducted a study to provide a factual basis for the development of a new ordinance regulating adult-oriented businesses.10 ' "Staff Report, Whitticr City Planning Commission, Amendment to Zoning Regulations, Adult Businesses in C-2 Zone with Conditional Use Permit (Case No. 353.015), January 9, 1978. 10 "Report On Adult Oriented Businesses in Austin," Office of Land Development Services, City of Austin, May 19, 1986. The study analyzed crime rates, comparing areas with adult businesses to other areas containing similar land uses but no adult businesses. The results were that the sex-related crime rate was between two and five times greater in the areas with adult businesses. The study also showed that the sex-related crime rate was 66 percent higher in areas having two or more adult businesses than in those areas having only one such business. The study included a survey of 120 real estate brokers and appraisal firms. The results showed that 88 percent of the respondents believed the presence of an adult business would decrease property values of residential property within a one-block radius and 69 percent felt an adult use would reduce the value of commercial property within the same radius. Phoenix, Arizona In 1979, the Planning Department of Phoenix designed a study to determined if there was a relationship between arrests for sex crimes and the locations of adult businesses." The number of property crimes, violent crimes and sex-related crimes in 1978 were compared for three study areas containing adult businesses and three otherwise similar control areas that did not contain adult businesses. There was a significantly greater difference between the study and control areas for sex- related crimes than for property or violent crimes: an overall increase of six times the sex crime rate in the study areas over the control areas. Although more dian half of the arrests for sex crimes were for indecent exposure, the remainder of sex crimes remained significantly high. In one study area with a concentration of adult businesses and the highest number of reported sex crimes for the areas studied, 89 percent of the reported indecent exposure cases were committed at the addresses of the adult businesses. When compared to its control area, the sex crime rate (per 1,000 residences) for that study area, was over 11 times greater; in the remaining two study areas, which each contained one adult business, the sex crimes rate was four times and almost three times as great as die comparable control areas. Minnesota In 1988, the Attorney General of Minnesota formed a Working Group on the Regulation of Sexually-Oriented Businesses to review data presented by various jurisdictions within the state.12 11 "Adult Business Study," Planning Department, City of Phoenix, May 25, 1979. 11 Report of the (Minnesota) Attorney General's Working Group on the Regulation of Sexually-Oriented Businesses, June 6, 1989. In 1980, the Minneapolis Crime Prevention Center examined the effects of sexually-oriented businesses upon property values and crime rates. The study concluded that such businesses concentrate in areas which are relatively deteriorated but, at most, they may slightly contribute to the continued depression of property values. However, it was clear that sexually- oriented businesses had a strong negative impact on the crime rate. The addition of one sexually-oriented business to a census tract area caused an increase hi the overall crime rate index in that area by slightly more than nine percent per 1,000 people/year. In 1978, the St. Paul Division of Planning and the Minnesota Crime Control Planning Board conducted a joint study of the relationship between adult uses and neighborhood blight. They found a statistically significant correlation between the location of adult businesses and neighborhood deterioration, although adult businesses tend to locate in somewhat deteriorated Housing values were significantly lower in an area with three adult businesses than in an area with only one adult business. There was a significantly higher crime rate associated with two adult businesses in an area than was associated with only one adult business in an area. Manatee County, Florida The Planning and Development Department of Manatee County undertook a study to investigate the impact of a proposed adult entertainment ordinance." The study recom- mended that adult uses be limited to commercial locations at least 500 feet from a residential district and 2,000 feet from churches, schools, child care facilities and public recreation areas. Also, no adult establishment should be located within 1,000 feet of another such use. Manatee County relied on studies of other cities to identify the likely impacts of adult entertainment establishments. In addition to those of Boston, Detroit, Los Angeles and Indianapolis, studies from the following cities were reviewed: Austin, Texas; Phoenix, Arizona; Saint Paul, Minnesota; Amarillo, Texas; and, Beaumont, Texas. Impacts found in these studies included a relatively high incidence of crime including sex-related crimes, declining neighborhood conditions, a statistically significant decrease in residential property value when more than two adult bars were found in an area, increased glare, noise, and traffic, and a decline of neighborhood-oriented businesses. 13 "Adult Entertainment Business Study for Manatee County," Manatee County Planning and Development Department, June 1987. 8 Among the study recommendations, Manatee County notes: The sign is often the most notable physical element of an adult entertainment business. Adult entertainment signs should be controlled to protect the general public from the negative aesthetics of "poor-taste. " Sign controls should be consid- ered which still protect a business 's freedom to advertise, but also minimize public's exposure to such uses. New Hanover County, North Carolina In July, 1989, the New Hanover County Planning Department published a study in support of proposed zoning text amendments designed to control the location of adult entertainment businesses.14 The one or two adult businesses located in the County had not generally been a problem; the proposed zoning regulations were considered preventative. New Hanover, like Manatee County, relied on studies of other cities to predicate its proposed zoning text amendments.15 Potential adverse impacts from adult uses and adult uses in concentration could be anticipated, according to the report, based on studies completed in Boston, Detroit, Los Angeles, Indianapolis, Beaumont, Phoenix, Amarillo, and others. Those impacts have been identified in the discussion, above. Regulations in Other Localities In communities throughout the United States, adult entertainment uses have appeared recently within or close to stable residential areas, leading many communities to adopt rules placing locational and other restrictions on these uses. In the New York metropolitan area, many Long Island communities (Islip, Brookhaven, Smithtown, Babylon, and Huntington, among others) have enacted zoning regulations that restrict the location and operation of adult businesses. In general, these restrictions attempt to protect residential and commercial areas by allowing adult uses only in low-visibility industrial districts.16 "Regulation of Adult Entertainment Establishments in New Hanover County," New Hanover County Planning Department, July, 1989. New Hanover County cites the following studies in its analyses of impacts in other cities: • McClendon, Bruce W., "Zoning for Adults Only," Zoning News. August 1985. pp. 1-3. • Yow, Robert B., "Adult Entertainment Zoning: A Case Study," Carolina Planning. Vol. 7, No. 1, Spring 1981, pp. 33-41. Jim Puzzanghcra, "Town OKs 3-Month Limit On Porn," New York Newsdav. North Shore Edition, June 23, 1993, p31. In St. Petersburg, Florida, the city's 1993 adult entertainment ordinance restricts adult uses to a handful of locations in the city and forces existing adult businesses to move widiin a year's time.17 In communities around Atlanta, Georgia, new nude dancing operations now require a rezoning and are prohibited within 1,000 feet of residences and community facilities.18 Orange County, California, requires a special permit for topless dancing clubs.19 In Jackson, Mississippi, a 1992 ordinance restricts topless bars and other adult businesses to areas zoned for light industrial uses and requires distances ranging from 250 to 1,000 feet from residential uses and community facilities.20 In San Diego, California, adult entertain- ment is not permitted within 500 feet of a school or home or within 1,000 feet of another adult entertainment use.21 Los Angeles enacted a similar ordinance in 1988.22 Seattle, Washington, recently enacted an ordinance restricting adult stores to manufacturing zones 1,000 feet away from churches, residential areas, schools and play grounds.23 DCP relied on a variety of sources, including the Planners Advisory Service of the American Planning Association, to obtain information about how other cities regulate adult entertain- ment establishments. The Manhattan Borough President's office supplied information obtained from the National League of Cities, and information that they culled for the Borough President's Task Force on Sex-Related Businesses. Although some of the referenced material used herein may be dated, and the cities may have adopted more recent regulations, the purpose is to illustrate differences in regulatory strategies. Essentially, two types of zoning regulations have been developed to control adult entertain- ment establishments. The control techniques include the concentration of adult uses in a specified location, and the dispersal of adult uses apart from one another. Dispersal models 17 Nichole M. Christian, "Vixen Vexes Neighbors," St. Petersburg Times. City Edition, February 6,1993, p. 1. 11 Matt Kempner, "Sugar Hill Sets Tight Restrictions on Nude Clubs," The Atlanta Journal and Constitution, September 14, 1993, p. J-l. 19 Bob Elston, "Orange County Focus: Newport Beach; County Tells Club to Halt Topless Dancing," Los Angeles Times. February 5, 1993, p. B-3. 20 Greg Henderson, "Supreme Court Allows Adult Entertainment Restrictions," Washington News. April 19, 1993. 21 Pauline Repard, "Topless Bar Has Its Eyes on Auto Lot in Chula Vista," The San Dieeo Union-Tribune. May 12, 1993, p. B-l. 22 Josh Meyer, "City Arms for New Legal War on Porn; Law Enforcement: A Zoning Ordinance Will be the City's Major Weapon as it Seeks to Shut Down Pornography Shops in Hollywood," Los Angeles Times. January 27, 1990. p. B-l. 23 Geordie Wilson, "Tukwiia Appeals Anti-Porn Case — Zoning of 'Adult' Outlets At Issue, "The Seattle Times. February 21, 1992. p. B-l. 10 often exclude adult uses from areas in proximity to residential districts while also limiting their concentration where they are permitted. Concentration models are guided by regulations developed for Boston, Massachusetts; dispersion models follow the Detroit, Michigan ordinance. The Detroit dispersal model has been used more often than the Boston concentra- tion model to control the location of adult entertainment establishments. CONCENTRATION MODELS Boston, Massachusetts Boston established a two-block "adult entertainment district" in a downtown area known as the "combat zone," where approximately ninety percent of adult uses in the city were concentrated. The purpose of the district was to prevent the spread of adult uses to other areas of the city. Under the Boston zoning code, an adult entertainment district may be established as an overlay district superimposed upon existing zoning districts. The overlay district allows adult entertainments and bookstores that are characterized as such because they "exclude minors by reason of age." According to information provided by the Boston Redevelopment Authority, adult use operators will prohibit attendance by minors in order to avoid violating the Massachusetts obscenity law. The overlay district allows the use of moving or flashing lights prohibited elsewhere in the city, and generally has fewer restrictive sign regulations compared with other Boston districts. Outside the overlay district, preexisting adult establishments may continue unless they have been abandoned for at least two years. Seattle, Washington, and Camden, New Jersey Seattle and Camden have developed zoning regulations generally following the Boston model of concentrating adult uses in one or more specified areas of the city. Seattle allows adult motion picture theaters in only three business and commercial districts. Non-conforming adult theaters must be discontinued. Camden has set aside a single area of the city where adult uses are permitted. Camden believes such a strategy will facilitate the city's ability to police adult establishments. 11 DISPERSAL MODELS Detroit, Michigan In 1972, Detroit amended its "anti-skid row" zoning ordinance, which prohibited concentrations of certain uses, to include adult theaters, mini-theaters, bookstores and cabarets, characterized by "specified sexual activities" or "specified anatomical areas." Detroit enacted the skid row regulations after a study indicated that the concentration of these businesses "tends to attract an undesirable quantity and quality of transients, adversely affects property values, causes an increase in crime, especially prostitution, and encourages residents and businesses to move elsewhere."24 Not more than two adult businesses may be located within 1,000 feet of each other or within 500 feet of a residential area. The Detroit ordinance allowed a waiver of the 1,000 foot regulation upon certain findings by the Zoning Commission; the 500 foot requirement is not subject to the waiver provisions. The Detroit ordinance applied only to prospective uses. Atlanta, Georgia, and Kansas City, Missouri Atlanta prohibits adult bookstores, theaters and entertainment establishments from locating within 1,000 feet from any other such use. Adult uses may not be located within 500 feet of residential uses or houses of worship. An original amortization provision was amended subsequently to apply solely to bath houses and to comply with a judicial decision.23 In Kansas City, adult bookstores, motion picture theaters, bath houses, massage shops, modeling and body painting studios may be located only in certain commercial districts, over which an overlay is placed. The adult uses may not locate within 1,000 feet of a residence district or a house of worship or school. No more than two uses may be located within 1,000 feet of each other. A petition of consent by a majority of residents or property owners within 1,000 feet of the proposed use may be made to the City Plan Commission to waive the restrictions on location. 24 Jules B. Gerard, Local Regulation of Adult Businesses. Clark Boardman Cailaghan, 1988. 25 Rohan, Patrick J., Zoning and Land Use Controls. New York: Matthew Bender & Co., 1988, p. 11-32, Note 32: "The purpose of ihis amendment is to make the zoning ordinance conform to the decision of the United States Supreme Court in Young v. American Mini Theatres. Inc., el. aL (Decided June 24, 1976). . ." 12 Los Angeles, California The Los Angeles ordinance regulates adult arcades, bookstores, cabarets, motels, motion picture theaters, adult theaters, massage parlors, and sexual encounter establishments. These establishments are characterized by their emphasis on specified sexual activities or specified anatomical areas. The ordinance prohibits the establishment of an adult entertainment business within 1,000 feet of another such business or within 500 feet of any religious institution, school or public park. Los Angeles determined that adult uses, in concentration, result in blighting conditions. A 1984 amendment to the ordinance added that an adult entertainment business may not be located within 500 feet of any lot in an agricultural or residential zone, or within "limited commercial" zones, unless approved by exception.26 No more than one adult use may be located within any building containing another adult entertain- ment business. Town of Islip, New York Islip's ordinance is noteworthy in that it has been the subject of litigation reviewed by the New York Court of Appeals.27 Islip defines adult uses to include adult bookstores, drive-in theaters, cabarets, motels, theaters, massage establishments, and peep shows. As in Boston, adult uses are characterized by their exclusion of minors by reason of age. The zoning ordinance restricts the location of adult uses to light industrial districts by special exception of the Zoning Board of Appeals. Adult uses are allowed as-of-right in Industrial Districts, and prohibited from locating within 500 feet of any area zoned 16 Various amendments have been made to the ordinance, including a provision prohibiting, after March 6, 1988, the continued operation of adult businesses located within 500 feet of a residential zone unless a conforming site is not "reasonably available" elsewhere. This provision has been successfully challenged on appeal; the businesses argued that the city has not provided them with a sufficient number of possible relocation sites, abridging their First Amendment rights. [Topanga Press v. City of Los Angeles, U.S. Court of Appeals, Ninth Circuit, 989 F.2d 1524, as reported in Land Use Law and Zoning Digest. Vol. 45, No. 9, September 1993]. 27 Town of Islip v. Caviglia. 542 NYS. 2d 139. 13 for residential use, or any school, park or house of worship.28 In addition, an adult use may not be located within a one-half mile radius of another such use. These restrictions may be waived based on findings that the proposed use will have no negative impacts. No more than one adult use may be located on any lot. The Islip ordinance also contained amortization provisions for uses which became non-conforming. Chicago, Illinois Chicago also follows the Detroit dispersal model for regulating the location of adult entertainment establishments. However, in 1977, Chicago established a licensing requirement for all adult use businesses.29 One of the primary purposes of this regulation was to prevent or limit the involvement of organized crime or other syndicates in the operation of adult-use establishments. The license application requires the prospective adult use operator to provide a great deal of personal and financial information. If the establishment is to have a manager, a separate manager's statement must also be filed. The prospective operator of a sex-related business is also required to sign an affidavit attesting to those activities that will occur at his or her establishment. If, for example, the applicant signs an affidavit saying his or her business will be an adult-use book store and it is later determined that a "mini motion picture theater" is also operating at the site, the license can be revoked. 21 The Appellate Division, Second Department, invalidated and severed the provision of the ordinance that required adult uses to obtain a special permit. 29 Information on Chicago's regulations is based on a memorandum prepared by the Manhattan Borough President's Office for the Borough President's Task Force on Sex-Related Businesses, June 17, 1993. 14 HI. THE ADULT ENTERTAINMENT INDUSTRY Industry Trends Adult entertainment is a multi-billion dollar, international industry mat includes an ever changing and expanding range of activities.30 The latest additions to the industry include phone-sex lines, international computer networks that offer sexually explicit messages, lingerie modeling shops, and "upscale" topless bars or strip clubs catering to businessmen. It is difficult to obtain data on adult use organizations — they often consist of a maze of smaller companies that operate retail or service businesses, or distributorships. Linkages have been reported between sexually-oriented businesses and organized crime.31 Although it has experienced some significant changes in recent years, by most accounts the industry is booming in the United States. The tremendous growth in adult video sales and rentals and the resulting decline La the number of adult movie theaters is one significant change in the industry over the last ten years. Another is the entry of lower-end triple-X video entrepreneurs whose operations have recently emerged in many New York City neighborhoods. Adult Video Sales and Rentals As documented in recent newspaper and magazine articles, adult video sales and rentals are a segment of the industry that has experienced significant growth since 1980. Industry insiders contend that despite a 1986 Reagan Administration "all-out campaign" against pornography, "the number of adult-video makers and their videotapes has risen, cheap amateur videos have proliferated and the industry has expanded beyond magazines and videos to computer networks."32 One trade monthly, Adult Video News, reported adult video sales and rentals in general interest video stores have soared 75% since 1991 to $2.1 billion last year, and by hundreds of millions more if adult-only outlets are included.33 Thus, adult publications and videos are readily available at newsstands, general video stores and other outlets that are not characterized as adult entertainment establishments for purposes of DCP's study. 30 Information contained in this section is based on an extensive review of recent newspaper articles on the adult entertainment industry. Given the recent proliferation of adult video stores and topless entertainment in New York City's neighborhoods, the literature review focused primarily on these uses. 31 State of Minnesota, "Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses," June 6, 1989. 32 "Despite U.S. Campaign, A Boom in Pornography," The New York Times. July 4, 1993, p. A-20. 33 The Wall Street Journal. July 11, 1994, p. 1. 15 Concurrent with the growth in adult video is a decline in the number of adult movie theaters. The Adult Film Association of America recently estimated that the number of adult movie theaters across the United States had declined from 800 in 1979 to about 50 in 1990.34 The estimate appears low considering the number of adult movie theaters located in New York City alone. The growth in the adult video sales and rentals segment of the adult industry is directly related to the increasing availability of inexpensively produced triple-X videocassettes that have flooded the market in recent years. Adult video producers have cut costs dramatically by shooting on videotape rather than film, shooting for fewer days, cutting the length of scripts, using cheaper sets, and slashing production budgets. Performers' salaries, even for top stars, have dropped steadily from more than $l,000/day five years ago to as low as $100/day. Adult Video News estimates that in 1983, eight percent of the releases were shot on videotape, with the balance shot on film. Last year, 97 percent of the releases were shot on videotape. The Adult Video Association contends that cost cutting by producers of adult home videos has caused the price of a triple-X videocassette to plunge from $100 a few years ago to as low as $5 today.35 ****" Despite criticism that the latest entrepreneurs in the sex industry are delivering an inferior product, demand for their products appears to remain strong. One Los Angeles-based company, Evil Angel Productions, is typical of the latest producers of cheap adult videos. The company grossed $34,000 in 1990 when it produced and released eight tapes. In 1993, the company grossed $1 million by shooting, manufacturing and distributing a new hard-core videotape every three weeks.36 Sales for another Hollywood-based price-cutter, Video Exclusives, rose from $3 million in 1981 to $30 million in 1991. Other hard-core video producers in Hollywood, where about 50 of the nation's 60 or so manufacturers of hard-core videotapes are located, report similar growth.37 Despite these successes, some in the industry believe that the market for these products has peaked and that the novelty of pornography will simply wear off over time. Triple-X videos are still a billion-dollar business, says Gene Ross, an editor at Adult Video News, but the business M John Needham, "Gone With the Sin: Closure of Adult Theater in Santa Ana Reflects Trend Credited To - Or Blamed On - The Videocassette Revolution," Los Angeles Times. August 14, 1990, p. E-l. 35 John Johnson, "Demand Is Strong, But Police Crackdowns and A Saturated Market Spell Trouble for One of L^V.'s Biggest Businesses," Los Anpeles Times. February 17, 1991, p. 8. M "Despite U.S. Campaign, A Boom in Pornography," The New York Times, July 4, 1993. p. A-20. 37 Johnson, p. 8. 16 "peaked a couple of years ago and is on a downward trend."38 However, as one Los Angeles police expert on the industry explains, "No one should rush to write the obituary for porn. Although ... the business climate has become tougher, the industry is not likely to disappear. The entrepreneurs of sex have proven that... many people still really want the stuff."39 Topless Entertainment In recent years, upscale topless clubs have become a booming segment of the adult entertain- ment industry. An article in The New York Tunes describes the proliferation of topless bars as a national phenomenon in large cities.40 According to a recent report in New York Newsdav. topless clubs that cater to a young, affluent clientele have become one of the fastest growing and most lucrative segments of the adult entertainment industry hi New York City. By conservative estimates, the topless club industry in New York City is a $50 million a year business, employing about 1,500 dancers.41 In two years, the number of these clubs has grown from about five hi 1990 to more than 30 in 1992, not including clubs throughout the city that operate without liquor licenses.42 Several factors appear to have influenced the recent proliferation of upscale topless clubs in New York. First, responding to the devastating effects of the recession on eating and drinking businesses, some entrepreneurs have retooled their establishments and used topless performances as a successful marketing device to win back their affluent male clientele. Second, the clubs have shed their "sleazy" reputations and become more mainstream by providing topless entertainment in safe, "elegant" surroundings furnished with other attractions such as giant closed circuit television screens, pool tables, and air hockey. Third, the instant financial success of the newest upscale topless clubs in Manhattan has attracted a number of imitators. In a recent interview with New York Newsdav. Jay Bildstein, the owner of Scores, a topless "sports bar" on the upper East Side of Manhattan, explained that while the new clubs may vary greatly in style, the corporate organization is often similar. Club owners typically contract with national organizations which, in exchange for a percentage of gross income, 31 Ibid. 39 Ibid. 40 "Strip Clubs Putting On a Suit and Tie," The New York Times, p. B-5, March 26, 1994. 41 Walter Fee, "Bare Market: For New Upscale Clubs, It's Boom and Bust," New York Newsdav. City Edition, December 20, 1992, p. 7. 42 Ibid. 17 recruit and market the dancers. In the New York area, Goldfingers and Pure Platinum are two of the most successful national marketing organizations associated with local topless clubs. Typically, the dancers are treated as independent contractors, thereby releasing management from the responsibility for withholding taxes or social security, and protecting the club owners from potential legal liability for the dancers' behavior. The typical customer is an affluent male repeat customer between the ages of 25 and 30.43 Certain factors appear to be influencing the recent proliferation of triple-X video stores and nude bars in or near residential neighborhoods in New York City, such as Murray Hill, Chelsea, Sunset Park, Sunnyside and Forest Hills. First, the availability of low-budget videotapes has enabled increasing numbers of low-end porn entrepreneurs to enter into a market that was previously closed to them. Second, topless bars have been successfully recast as upscale adult uses, catering to young businessmen with money to spend. Inventory and Trends, by Location and Type The locations of adult entertainment establishments in New York City that were identified by the DCP survey in 1993 are shown on the maps following page 19. Data hi this section was obtained from different sources, and may reflect differences in definitions as to what constitutes adult entertainment. Pre-1993 data is presented because it is the most thorough available and, outside of Midtown Manhattan, provides an understanding of the location of adult uses at that time. 41 Molly Gordy, "What's Under the Paint? How to Keep the Law Happy When Topless is a Business." New York Newsday, Manhattan Edition, September 17, 1992, p. 29. 18 Citywide Trends: 1965 to 1993 In 1965, there were nine adult establishments located in New York City. By 1976, the number of such establishments increased to 151. Between 1976 and 1984, the number of adult establishments declined to 131 citywide. Between 1984 and 1993, the number of adult establishments increased citywide, to 177. Citywide trends in adult entertainment establish- ments are indicated in Table 1. TABLE!CITYWIDE TRENDS IN THE NUMBER OF ADULT ENTERTAINMENT ESTABLISHMENTS Year Total Number 1965 9 1976 151 1984 131 1993 177 Sources: 1965 and 1976 data. Office of Midtown Enforcement files; 1984 data. Police Department; 1993 data. Department of City Planning. In 1965, the number of adult establishments was small because the sale and distribution of pornography was largely restricted. By 1976, most restrictions were removed and the number of adult establishments burgeoned. Between 1976 and 1984, the number of adult establishments dropped 13 percent, reflecting a decrease of 48 adult uses hi Midtown Manhattan alone, from 97 to 49. This may be attributable to enforcement efforts by the city, the start of major construction projects in west Midtown that increased investor confidence in the area, and changing technology.44 However, the decline was offset by an increase of 28 adult uses, from 30 to 58, in the other boroughs. The decline in adult uses in the Midtown area is probably unrelated to the increase in such uses to other areas of the city during that period.45 Between 1984 and 1993, adult entertainment establishments increased 35 percent citywide. The trend — analyzed below — can be attributed to the advent of the adult video store, and greater numbers of topless or nude bars stemming from their changing, upscale image. 44 1983 Annual Report, Mayor's Office of Midtown Enforcement, p. 36. 43 More detailed analysis indicates that the decline in adult uses in Manhattan was in bookstores/peep shows and theaters; the increase in adult uses in boroughs other than Manhattan was largely in topless bars. 19 INSET MAP: Distribution of Adult Uses in Manhattan Community Districts 1-8 I Citywide Distribution of Adult Uses by Community District ia adult use community district boundary community district designation area not pan of any community district Source: Oept of City Planning. 1993 Adult Entertainment Study Department of City Planning / City of New York I <3 Trends by Borough Between 1984 and 1993, the greatest increases in adult entertainment establishments were found in Manhattan and Queens. Both boroughs had a 47 percent increase in adult uses, from 73 to 107 in Manhattan, and from 30 to 44 hi Queens. Adult uses in the Bronx declined by two, from 10 to eight. In Brooklyn, adult establishments decreased by one, from 16 to 15. Staten Island had an increase of a single establishment. Among the five boroughs, most adult entertainment establishments continue to be located within Manhattan. In 1976, 80 percent of all such uses were located in Manhattan, decreasing to 56 percent in 1984 and increasing to 61 percent in 1993. Queens has had the second greatest concentration of adult uses in New York City. In 1976, Queens contained 11 percent of the city's adult uses, rising to 23 percent in 1984, and increasing marginally to 25 percent hi 1993. The Bronx, Brooklyn and Staten Island each have less than 10 percent of all adult establishments located in die city. Trends within Categories of Adult Uses Between 1984 and 1993, the number of adult bookstores/peep shows/video stores increased citywide 197 percent, from 29 to 86 establishments. Adult topless/nude bars also increased during the period, by 26 percent, from 54 to 68. Adult movie and live theaters declined over the period by 52 percent, from 48 to 23 establishments. Adult theaters declined from 41 percent of all adult uses in New York City in 1976, to 37 percent in 1984, and 13 percent in 1993. Bookstores/peep shows comprised 44 percent of all adult uses in 1976, declining to 22 percent of the total hi 1984. However, hi 1993, the category consisted of 49 percent of the citywide total number of adult entertainment establishments, reflecting the rise in adult video establish- ments from none reported in 1984, to 64 hi 1993. hi 1993, adult video stores made up 74 per- cent of all establishments hi the book/peep/video category. Their recent proliferation represents the largest percentage gain among all adult uses since the mid-1970s. Topless and nude bars increased their share of all adult uses between 1976 and 1984, from 15 percent to 41 percent, respectively. By 1993, adult bars — although continuing to increase in absolute numbers — declined as a percentage of all adult uses to 38 percent of the total, reflecting the proliferation of adult video establishments. If growth in the various segments of the business continue over the next decade at the same rate as they did between 1984 and 1993, by the year 2002, there would be a 197 percent increase in the number of bookstore/peep shows/videos from 86 to approximately 250; a 26 percent in- crease in topless/nude bars from 68 to 86; and a 52 percent decline hi the number of adult movie and live theaters from 23 to 11. 22 Trends in Concentrations of Adult Entertainment Establishments, by Community District Between 1984 and 1993, adult entertainment establishments have continued to concentrate in a few community districts in Manhattan. Citywide, the number of community districts with one or more adult uses has remained relatively stable over the period. However, adult uses have recently located in neighborhoods within community districts where they had not previously been. Significantly, the number of community districts with seven or more adult entertainment establishments nearly tripled between 1984 and 1993, from three to eight. Community district designations for adult establishments identified in the 1976 survey are not readily discernible. Table 2 indicates in rank order community districts by the number of adult uses within each district in 1993. Districts without adult uses are not listed. In 1993, the majority (53 percent) of adult uses in the city were located in Community Districts 1, 2, 4, and 5, Manhattan. In 1984 and 1993, the greatest concentration of adult uses was found in Community District 5, Manhattan, which includes part of the Times Square area. In 1984, 34 percent of the citywide adult uses were located in the community district; in 1993, 30 percent of such uses were found there. Between 1984 and 1993, the number of adult establishments in the district increased by 18 percent, from 45 to 53, nearly half the rate of growth citywide. TABLE 2 1993 RANK ORDER OF COMMUNITY DISTRICTS WITH ADULT USES Rank 1 2 3 4 5 6 7 8 9 10 11 12 Community District* M5 M4 M2 Ml M6 Q3 Q2 K7 Ql Q7 04 B12 K15 Q6 Q9 Q12 B5 K2 M3 M7 Q13 S2 B8 BIO Bll K6 K12 K14 MS Q5 Q8 S3 No. Establishments in Each District 53 19 11 10 9 8 7 5 4 3 2 1 •"Borough designations: B = the Bronx; K - Brooklyn; M = Manhattan; Q = Queens; S = Staten Island. Source: Department of City Planning survey. 23 Community District 4, Manhattan, had the second greatest concentration of adult uses in the city in 1984 and 1993. The district, located west of Community District 5, encompasses Chelsea, Clinton and part of the Times Square area. In 1984, seven percent of the city's adult entertainment establishments were located in the community district. By 1993, 11 percent of such establishments were located there. Between 1984 and 1993, the number of adult uses within the district increased by ten establishments from nine to 19, or by more than 110 percent. The growth rate in adult uses in the community district over the nine-year period was more than triple that of the city as a whole. This data suggests that over the past decade, while adult uses have spread to more community districts, there is a persistent tendency toward concentration of significant numbers of adult uses. Location of Adult Uses by Zoning District For purposes of this analysis, zoning districts were grouped according to certain characteris- tics. Cl (Local Retail) and C2 (Local Service) Districts were grouped together because they are both mapped widely in residential neighborhoods throughout the city. C4 (General Commercial) Districts are regional commercial districts, mapped in each borough. They comprise the city's major and secondary shopping centers. C5 (Restricted Central Commer- cial) Districts and C6 (General Central Commercial) Districts were grouped into a single category because they are mapped principally in Midtown and Downtown Manhattan and Downtown Brooklyn. These districts allow a broad array of commercial uses, and are characterized by high commercial densities. C8 (General Service) Districts that permit automotive uses were grouped with Ml, M2 and M3 Districts that permit industrial uses. Residential use is not permitted in C8 Districts and generally not permitted in manufacturing districts except in certain circumstances. The analysis indicates that of the 177 adult entertainment establishments, approximately 18 percent (31) are located in Cl and C2 Districts. Ten uses, or approximately six percent, are located in C4 Districts. Approximately forty percent (70) of adult uses in New York City are located in C5 and C6 (central commercial) Districts. Forty-five adult uses, or approximately 25 percent of the total number, are located in C8 and manufacturing districts. Combined, approximately 88 percent of adult entertainment establishments are located in commercial or manufacturing districts.46 46 Forty-two adult uses, or 24 percent of the city wide total, are located in Ml-6, C5-3, C6-4, C6-5, C6-6, and C6-7 Districts within the Midtown Special District 24 The remaining adult uses, 21, or approximately 12 percent of the total number, are located in residence districts which do not permit commercial uses. These uses may be legal non- conforming commercial uses in residential districts, or the locations may be classified as within residence districts, because of the primary characteristic of the tax lot.47 All commercial districts except C8 permit residential use.48 Many light manufacturing/ mixed use zones permit residential uses in certain circumstances. More than 75 percent of the adult entertainment establishments are located in those commercial or manufacturing zoning districts that also permit residential uses. Industry Views Members of the adult entertainment industry met with city planners to discuss industry issues and needs. Those responding to the DCP invitation represented topless and nude clubs, triple- X video/bookstores/peep shows, live theaters, and suppliers. Some represented the Adult Industry Trade Association (ATTA) as well as their own individual establishments. The _..„ meeting was designed to familiarize the representatives with the study and obtain specific is_ information about location decisions, employment and revenues, tourism and industry changes and trends. Industry representatives argued that there are a number of positive impacts directly attributable to adult businesses. For example, it was stated that "safer sex," due to the change in sexual mores caused by AIDS, has been promoted by the increase in triple-X video stores and the corresponding decrease in live sex clubs. Others noted that adult businesses provided safe places on otherwise dark streets because these businesses traditionally stay open very late. Also, late night uses on a street have encouraged other businesses to stay open later to cater to the customers drawn to adult businesses in the evening. Adult businesses often provide important rental revenues to landlords because they are willing to occupy vacant storefronts on a short-term basis. The manager of a triple-X video store in the East 50's in Manhattan observed 11 new businesses had since opened after bis store opened in December 1992, observing that the presence of an adult business on the block is not a deterrent to new businesses. Industry representatives maintained that adult entertainment businesses earn 47 Due to limitations in technology, different computer systems were used to cross-reference street address and zoning district. The predominant zoning classification of a tax lot was used to classify zoning districts. ** Residential uses are also not permitted in C7 districts. C7 districts, which accommodate large, open amusement uses, are not widely mapped. 25 revenue for the city, provide jobs and stimulate tourism. This would be true to the extent they do not discourage the growth of other businesses that would generate more employment, tax revenue and tourism. Segmented Industry The industry appears to regard itself as segmented — tourist oriented v. neighborhood- oriented, upscale v. tawdry, community fixture v. transitional presence, eye-catching v. discreet signage, triple-X products v. entertainment. A number of establishments that were invited to the meeting declined to attend because they did not identify with perceived industry-wide concerns. One adult bookstore owner, located for many years on Eighth Avenue in the mid-30's, said he was not part of the problem; the owner of a sexually-oriented boutique on the Upper West Side said he was a neighborhood service and disassociated himself from "heavy-duty" adult businesses. People attending the meeting questioned whether the DCP study had examined segments of the adult entertainment industry separately to isolate possible impacts or if the study had grouped all adult businesses together. Location The basic locational criterion for adult entertainment businesses is to be "where the customers are." In Manhattan, this is often determined by where the tourists are; "Broadway is better than Twelfth Avenue," said one club owner. In the other boroughs, a good location is one with easy access to publip transit, main arterials and plenty of parking for local residents and commuters passing by on the way home. Mass transit and available parking are always important, wherever you are, commented one participant. Adult entertainment businesses tend to be transitional and locate in areas that are "moving upwards"; they are rarely found in poorer neighborhoods. One statement submitted at the meeting maintained that some major real estate developments owe their existence to the ability of landlords to warehouse property by renting space to adult businesses that are willing to accept high rents and short leases during the period when a major assemblage is underway. Economics One corporation that operates two upscale, topless bars provided a number of statistics about their operation. Combined figures for both clubs during the last fiscal year show that they em- ployed a total of 218 employees, had an annual payroll of $1,302,627 and grossed more than $600,000/month on credit card business alone. Credit cards rather than cash are the preferred method of payment. The legitimate, licensed nature of the business was stressed as well as the desire to be fully integrated into the New York City business community. J 26 Marketing According to a representative of the two topless clubs, it is essential to be near tourist areas where people are drawn to adult uses by publicity and signage. About 40 percent of the approximately 5,000 weekly patrons at their club on Broadway in Midtown Manhattan are tourists; approximately 15 percent of the clientele at their Downtown Manhattan club are tourists. However, the manager of a triple-X video store in the East 50's in Manhattan, and the owner of a triple-X video store in the West 30's in Manhattan, said they have a non- tourist clientele; most customers are local residents or office workers. One of the video store owners said that eighty percent of his customers are men between 30-50 years old and 20 percent are couples or women; customers want cleanliness and safety in a convenient location that is not "sleazy." Signage for his store, he said, was originally obtrusive (to "announce" the store's presence) but is now muted in an effort to blend into the neighborhood blockfront State Liquor Authority (SLA) Participants representing topless bars stated that their establishments are particularly orderly and well-run because they must conform to stringent State Liquor Authority (SLA) requirements. If the SLA finds a "pattern of disorder" during an inspection, the bar owner will face disciplinary action — ranging from a warning letter to revocation of a liquor License. The SLA regulates liquor sales and the degree of performance nudity. Since SLA regulations do not allow total nudity, nude clubs do not serve liquor and are not governed by the SLA. Trends In response to a question about industry trends, the group responded that there was oversaturation of adult businesses in New York City, particularly in Manhattan, and that these establishments were closing. It should be noted that of 177 invitations mailed to the adult entertainment establishments identified in DCP's survey, 27 were returned primarily because the adult business was no longer located at that address. Concentrations of uses were said to be due to the "copycat factor" and the tendency of bar patrons to want to "barhop." These statements, indicating a tendency of adult uses to concentrate in a community, confirmed the conclusion of DCP's analysis of the location of adult uses by community districts. It was said that the emergence of Blockbuster Video (which does not carry any triple-X videos) had driven out some 'mom-and-pop' video stores that had a small section of triple-X videos, leaving the field clear for triple-X video stores in a few neighborhoods. 27 Summary In a letter to the City Council dated March 9, 1994, ATTA acknowledged concerns by some community groups regarding signage and windows and said ATTA had been formed mainly to "address these problems by working as a liaison between community groups and adult use places." Most participants agreed that some adult businesses are regarded negatively by the community, but claimed this reaction is based on a visceral response and not on any secondary effects. 28 IV. ADULT ENTERTAINMENT ZONING IN NEW YORK CITY Current Zoning The Zoning Resolution of the City of New York currently regulates several general classes of commercial establishments which may or may not be characterized as adult uses.49 For example, the Resolution regulates: • theaters (including movie houses) • bookstores (including video stores) • eating or drinking establishments (including bars). The zoning regulations are no different for a neighborhood video store or a triple-X video store, or for a bar or a topless or nude bar. However, the Resolution does distinguish physical culture or health establishments from adult physical culture or health establishments.50 Theaters, bookstores, and bars are commercial uses, generally allowed as-of-right in most commercial and manufacturing districts. Commercial uses are generally prohibited from locating in residence districts. However, some commercial uses that are non-conforming in residence districts are essentially "grandfathered" and may continue at these locations until they have been abandoned for a period of time. Theaters Theaters (which include movie houses or motion picture theaters) are listed in the Zoning Resolution in Use Groups 8 and 13. Theaters are allowed as-of-right in C2 (Local Service), C4 (General Commercial), C6 (General Central Commercial), C7 (Commercial Amusement) and C8 (General Service) Districts. Theaters limited to a maximum capacity of 500 persons are allowed in Cl (Local Retail) Districts only by special permit of the Board of Standards and Appeals (BSA). In C1-5 through Cl-9 Districts (mapped in high density areas), motion picture theaters must provide an indoor waiting area based on seating capacity. Theaters are also allowed as-of-right in most manufacturing districts, except that in Ml-5A and Ml-56 Districts (mapped in Soho and Noho in Manhattan) theaters with 100 or more seats are allowed only by special permit of the Board of Standards and Appeals. 49 The Zoning Resolution of The City of New York, adopted December 15, 1960, and as amended. 50 The latter establishments, massage parlors, are considered to purvey prostitution and are not permitted in New York City. 29 Bookstores Bookstores are listed in Use Groups 6C and 12B. They are allowed as-of-right in most commercial districts and in Ml (Light Manufacturing) Districts. Bookstores are not allowed in C3 Districts, and in M2 (Medium Manufacturing) and M3 (Heavy Manufacturing) Districts. Video stores have been treated as bookstores for zoning purposes. Eating or drinking establishments Eating or drinking establishments are listed in the Zoning Resolution in Use Groups 6A and 6C, and 10 and 12. Eating or drinking establishments include any use that serves food or drink, including alcohol, not otherwise more specifically listed in the Resolution. Most eating or drinking establishments, including those with music for which there is no cover charge and specified showtime such as restaurants and bars listed in Use Group 6A, are allowed as-of-right in most commercial and manufacturing districts. They are allowed as- of-right in Cl, C2, C4, C5 (Restricted Central Commercial), C6, C7 and C8 Districts, and in C3 (Waterfront Recreation) Districts by special permit of the Board of Standards and Appeals. They are also allowed as-of-right in manufacturing districts. Eating or drinking establishments with entertainment, but not dancing, with a capacity of 200 persons or less are treated similarly to eating or drinking establishments listed in Use Group 6A, with certain exceptions.51 In Cl-1 through Cl-4, C2-1 through C2-4, and C5 Districts these establishments must obtain a special permit from the Board of Standards and Appeals. A special permit is also required in M1-5A and M1-5B Districts. Some special purpose districts may have additional restrictions on certain entertainment establishments but none distinguish between adult and other forms of entertainment Large eating or drinking establishments with entertainment, or those of any capacity with dancing, are listed in Use Groups 10 and 12. These establishments are permitted as-of-right in C6, C7, C8, most manufacturing districts, and in C4 Districts 100 feet or more from a residence district. They are allowed only by special permit of the Board of Standards and Appeals in C2, C3, M1-5A, M1-5B, LMM, M1-5M, M1-6M, and in C4 Districts within 100 feet of a residence district. Eating or drinking establishments with musical entertainment, but not dancing, with a capacity of 200 persons or less, are allowed similar]}' as eating or drinking establishments in Use Group 6A. 30 Signs Signs are regulated under the provisions of use regulations in the Zoning Resolution. Regulations include definitions, size or surface area, illumination, height, projection and location. Basic regulations for accessory business signs are summarized in Table 3. 1XBLE3 BASIC ACCESSORY BUSINESS SIGN REGULATIONS Zoning Districts Cl C2 C4 C5 C6 C6-5 or C6-7 C8 M Size* 3; 150 3; 150 5; 500 3:200 5:500 No restriction 6:750 each sign No restriction niumination 3 times frontage; up to 50sq.fi. 3 times frontage: up to 50 sq.ft. Illuminated or flashing Not permitted*** Illuminated or flashing Dluminatcd or flashing Illuminated or flashing; 5 times frontage, up to 500 sq. it each sign Illuminated or flashing Projection** 1 ft. I ft 1 ft. 1 ft. 1 ft. 8ft. I ft No restriction Height above Curb Level 25ft. 25ft. 40ft. 25ftf 40ft No restriction 40ftft No restrictionff t Location Certain accessory business signs facing and in proximity to a residence district or public park shall conform to the sign regulations inCl districts * To determine the maximum permitted surface area, multiply the first number by the street frontage; the second number indicated is a "cap" on the maximum number of square feet allowed. ** In districts where 1 foot is identified, double- or multi-faced signs may project up to 18 inches beyond the street line. *** Except in CS-4 Districts. f In C5-4 Districts, may extend up to 40 feet high. ft Non-illuminated or indirectly illuminated signs may extend to 58 feet high. ttt Except that within 500 feet of a residence or Cl or C2 District, restrictions apply to certain illuminated signs; indirectly illuminated signs may extend to 58 feet high. 31 Prior Zoning Proposals in New York City In New York City, a modem-day attempt at regulating adult establishments through zoning was made in 1975, after they proliferated beyond the Times Square area. DCP proposed to restrict the location of "adult physical culture establishments," a zoning term for massage parlors which were then permitted uses in New York City, in the Times Square area. The zoning proposal, which included a provision that non-conforming facilities were to be amortized within one year, was adopted in 1976 by the Board of Estimate. Outside the Times Square area, a one-year moratorium was placed on new massage parlors. In 1976, the United States Supreme Court upheld a Detroit "anti-skid row" zoning ordinance that placed locational restrictions and concentration limits on a variety of uses, including adult entertainment establishments. Shortly after the court decision in early 1977, the Mayor's Midtown Manhattan Action Office and the DCP prepared zoning recommendations modeled after Detroit. The City Planning Commission proposed establishing five categories of adult uses: adult bookstores, adult motion picture theaters, adult coin-operated entertainment facilities (peep shows), adult "topless" entertainment establishments (topless bars), and adult physical culture establishments (massage parlors). According to the Commission, "By creating separate definitions for these adult uses it is now possible to distinguish hi the Zoning Resolution adult uses and other uses. Without such definitions adult uses were for all purposes treated the same as their non-adult counterparts and were thus allowed to locate in any zoning district where the general use was permitted."52 Under the proposal, adult entertainment uses would be allowed only in C4 and C6-4 through C6-9 Districts, which are General Commercial and General Central Commercial Districts, respectively. Existing adult entertainment uses outside of these districts, or within 500 feet of a residence district (Rl through RIO Districts), would not be allowed to continue as non- conforming uses. Adult physical culture establishments not subject to the 1976 amortization provisions would not be allowed after one year in any district in New York City, and the moratorium would be lifted. 52 Report of the City Planning Commission, N 760137 ZRY, January 26, 1977, Calendar #23. 32 In addition, adult uses would be subject to distance, concentration, sign and amortization restrictions, as follows: • No adult use could be located within 500 feet of a residence district. • In C4 Districts, no new adult use could be established where, within a 1,000 foot radius, two or more adult uses existed. In C6-4 through C6-9 Districts, no new adult use could be established where, within a 1,000 foot radius, three or more adult uses existed. Each adult use within a single establishment would be considered a separate primary use. • No sign for any adult use could display or describe a specified sexual activity or a specified sexual area. No adult use could have more than one accessory business sign, except that an adult motion picture theater could, in addition, have a marquee. No advertising signs would be permitted for an adult use. No adult use sign could be illuminated or extend beyond the street line, except for adult motion picture theater marquees. • Amortization provisions dictated that adult uses that failed to meet the proposed location and distance requirements would be required to terminate within one year. Where existing establishments within districts in which adult uses would be permitted exceeded the proposed concentration provisions, the adult uses closest to a residential district would generally be amortized first. The proposal would have allowed the Board of Standards and Appeals to exempt existing adult uses, located in districts in which such uses would continue to be permitted, from the concentration and amortization provisions of the new regulations. Similarly, the City Planning Commission would have been authorized to allow a new adult use notwithstanding the proposed concentration provisions. In each case, the BSA or CPC, as applicable, would be required to make findings to ensure that any adverse impacts from the adult establishment were minimized. According to Norman Marcus, who at the time was counsel to the City Planning Commission, "This safety valve procedure was felt essential to withstand a challenge to the reasonableness of the regulation."53 Numerous speakers appeared at the public hearing, both in favor of and in opposition to the proposed zoning regulations. In general, business and civic groups from Manhattan were supportive of the plan. Those in opposition included representatives of boroughs outside Manhattan, religious institutions, and civil libertarians. K "Zoning Obscenity: Or. The Moral Politics of Porn." Norman Marcus. Buffalo Law Review. Vol. 27. 1978. 33 Subsequent to the Commission public hearing, several modifications were made to the proposal. For example, C4-1 Districts, characterized by large suburban-style shopping centers, were eliminated from the proposal as districts where adult entertainment establishments would be permitted. Also, adult entertainment establishments would not be permitted within 200 feet of a school or church. The modified proposal was then reconsidered. According to Marcus: By virtue of the recent Commission amendments, the heretofore dispersed and scattered eligible adult use regional commercial zones had been reduced to a handful of readily identifiable concentration targets in these boroughs — and as such, drew sharp denunciations. The Commission was accused [by citizens of the four boroughs other than Manhattan] of fostering "red light districts" in the outer boroughs and the cry was raised ever more loudly to restrict adult uses to Manhattan. The legislation foundered.54 Marcus observed that the public's failure to understand the crucial distinction between pornography and obscenity, i.e., what is and what is not legally protected speech, resulted in a lack of sufficient political support needed to adopt a regulatory plan to limit the location and concentration of adult establishments. In continuing to wrestle with the issue of adult establishments, the City Planning Commission in 1978 proposed, and the Board of Estimate adopted, new zoning text that distinguished adult physical culture establishments from physical culture establishments.55 Adult physical culture establishments were eliminated as a permitted use in all districts in the city. They were to be amortized within one year. All other physical culture or health establishments would be permitted only by special permit of the Board of Standards and Appeals. The citywide moratorium on physical culture or health establishments that became effective in 1976 was deleted. Thus, only part of the effort to control the location of adult uses was adopted legislatively. 54 Ibid. 55 Resolution of the Board of Estimate, November 16, 1978, Cal. No. 145, approving a report (N 780387 ZRY) of the City Planning Commission, November 8, 1978, Cal. No. 16. 34 ^ V. ADULT ENTERTAINMENT IMPACTS IN NEW YORK CITY Impacts Identified by the City Planning Commission, 1977 On January 26, 1977, the City Planning Commission reported to the Board of Estimate its recommendation for zoning text changes relating to adult uses. The recommended zoning changes would have reduced existing concentrations of adult uses and prevented future concentrations, "... thereby substantially reducing the adverse economic and social effects that these concentrations produce. At the same time, adult uses will be prevented from disrupting residential neighborhoods by regulations requiring all adult uses to be located at least 500 feet from the nearest residence district boundary."56 In its report, the Commission cited several negative impacts of adult uses including economic factors, increased criminal activity, the damaging influences on minors and the disruptive effects that adult uses have on neighboring residential communities and the youth of such communities. At the public hearing on the proposed text amendments, many of the speakers appeared in favor of the proposal, expressing concerns about the blighting effect that the concentration of adult uses has had on the West Side of Manhattan. Some identified other reasons to support the proposal. For example, a psychiatrist who was a former Deputy Commissioner of the City's Addiction Services Agency and founder of Phoenix House — the city's major residential addiction rehabilitation program, said that the growth of adult uses has "... a direct bearing upon the number of young people who become addicted to heroin or dependent upon other drugs." He described the adult entertainment business as parasitic, attracting and victimizing adolescents and breeding prostitution and addiction. The doctor stated that limiting or dispersing adult uses can destroy the "pathological matrix." Most who spoke in opposition to the proposal did so because it would continue to permit adult uses near their communities. The Commission noted that it analyzed the efforts of several municipalities, including Boston, Detroit, Minneapolis, Dallas and Atlantic City, to combine the best efforts of all these cities in a regulatory plan for New York. The Commission rejected the Boston concentration model, stating in the report that "Statistics indicate that the implementation of this zoning method in Boston has resulted in an increase in both the crime rate of the Boston Business and Entertainment district and an increase in the vacancy rate of the surrounding buildings." The Commission felt that a dispersion strategy, modelled after Detroit's regulatory plan, would * Report of the City Planning Commission, N 760137 ZRY, January 26, 1977, Calendar No. 23. 35 provide room for constitutionally protected speech as well as protection for the health, safety and general welfare of the people. The Commission noted that a proliferation of adult entertainment uses in the Times Square and Theater Districts could be related to the decade-old absence of major investment or development decisions, and to a substantial decline in economic viability. For a three-year period, tax arrears on West 42nd Street were 26 percent higher than the overall rate for Midtown. During a two-year period in the early 1970s, sales tax revenues in the area declined by 43 percent compared to an 11 percent increase citywide. In addition, jobs in retail sales declined in the area at a rate greater than that of the city as a whole. The Commission identified several businesses in the area that had closed, for example the Chase Manhattan Bank branch in Times Square, and noted that the "... decline of economic activity . .. can be directly related to the escalation of adult uses." Crime data for 1975 were also analyzed, leading the Commission to state: "Increases in felonious criminal activity in areas where concentrations of adult uses are located are overwhelming." The Commission observed that in Midtown, police posts (subareas of a precinct) in which one or more adult uses were located had 69.5 percent more verified complaints than those in other subareas. Posts with one or more adult uses constituted 34.5 percent of the total posts in Midtown, but accounted for 47.1 percent of all complaints. Comparing posts with one or more, adult uses to posts without an adult use, complaints for felonious assault were 142.3 percent higher, grand larceny complaints were 88.9 percent higher, rape was 185.2 percent higher and robbery was 130.2 percent higher. Impacts Identified by the Office of Midtown Enforcement The 1983 Annual Report of The Mayor's Office of Midtown Enforcement (OME) supported the City Planning Commission's earlier findings. The OME's report stated that in the early and mid-1970*s, "Times Square was clogged with pimps, Johns, and hookers as well as the addicts and muggers who along with them preyed on the public." The report noted that 1,200 prostitutes worked out of the dozen or so prostitution hotels and the 23 massage parlors concentrated along Eighth Avenue between 34th and 55th Streets, and another twelve sex businesses were wedged in between these businesses. OME strategies (including investigation, enforcement, seeking and obtaining legislative changes in the Nuisance Abatement Law, closing hotels and obtaining substantial financial 36 penalties from hotel operators) worked to clean-up Times Square. According to the annual report, "At the end of 1983 Eighth Avenue is no longer "The Minnesota Strip,* infested with the crowds of pimps, prostitutes and Johns which once thrived on the atmosphere created by the multiplicity of sex uses. The crowds are no longer there because most of the sex uses which supported or attracted them have been closed."57 Between 1978 and 1983, OME reported that it closed 106 illegal establishments, of which 82 were sex-related businesses. Additionally, they "virtually eliminated" the practice of sexually explicit handbilling on city streets, and after obtaining a zoning amendment establishing a permanent ban on heterosexual massage parlors, closed 37 illegally operated sex-related businesses in Midtown. After reducing the number of sex-related businesses in midtown by 46 percent from 121 in 1978 to 65 at the end of 1983, OME reported that its "accomplishments have resulted in increased investor and consumer confidence in the midtown area as manifested by: the renovation and expansion of the Port Authority Bus Terminal; the opening of die new Milford Plaza Hotel on Eighth Avenue; the construction of the Marriott Marquis Hotel on Broadway; and the proposed 42nd Street Development Project." jne OME Annual Report for 1983 also reported the criminal activity occurring in sex-related businesses. Convictions for prostitution occurring inside the premises are used by OME as a basis for civil litigation. Between 1978 and 1983, the numbers of arrests for prostitution and obscenity inside sex-related businesses located in Midtown decreased from 419 to 300. The change in die number of such arrests for any given year is a function of many factors, (e.g., deployment of police personnel, unrelated litigation defining obscenity) and reflects only in part the drop in the number of massage parlors and other commercially-operated houses of prostitution. It is significant, however, that the concentration of sex-related businesses has been closely associated with substantial numbers of arrests within those establishments for prostitution and obscenity. 57 It was found - in another study - that sex uses in the Times Square area supported hustling and hanging out on the street because of their configuration. The Final Environmental Impact Statement for the 42nd Street Development Project stated "most of these establishments present opaque facades to the street. This is presumably important to draw potential customers inside (rather than allowing them to look in) and also to provide some sense of privacy. The correlative, however, is that these operations do not look outwards or take a special interest in the sidewalks outside. As a result, and also because the sex-establishment patrons hurry in and out the sidewalks are left unclaimed and thus available to those hustling and hanging out." New York State Urban Development Corporation, Vol. 1, August 1984. 37 Impacts Identified in the Chelsea Business Survey In August, 1993, the Chelsea Action Coalition and Community Board 4, Manhattan, prepared a study describing the effects that sex-related establishments have on other businesses in the Chelsea section of New York City.58 The Coalition called upon the city to "develop zoning proposals that will disperse, but not eliminate, these (adult) businesses ..." The Chelsea Action Coalition called for zoning proposals because it felt that the neighborhood "... was being transformed before our eyes into a red light district." The study identified the locations of sex-related adult establishments in a 76 block area of Manhattan between 13th and 32nd Streets, and Fifth and Ninth Avenues. Nine legal triple-X video stores, eleven locations closed in fiscal year 1993 for illegal sex-related activities, and seven locations of "multiple indoor prostitution arrests" in fiscal year 1993 were mapped within the study area. The Coalition stated that the concentration of triple-X video stores and peep shows "is intolerable," and "harmful to our community," noting that "... under the Constitution the City is permitted to prohibit this type of concentration." Representatives of the Coalition and Community Board surveyed 100 businesses located near the triple-X video stores "to determine whether these 'adult use' businesses had negatively impacted upon the economic vitality of the Chelsea business community." Responses to eight questions were tabulated, and illustrative comments made by respondents were included in the study report. Negative impacts stemming from the adult video establishments reported by area business- persons included: a decline in the overall reputation of the community, a reduction in the economic vitality of individual business; a declining potential for business in the community; and observations that businesses may leave or have left Chelsea because of the adult video stores. Sixty-one percent of respondents felt that the triple-X video stores had a negative impact on their business. Ninety-five percent believe that the reputation of Chelsea has been hurt by these stores. Nearly two-thirds think the economic vitality of their business has been hurt, and 88 percent think the potential for doing business in Chelsea has been negatively affected by the adult stores. 38 "The Chelsea Business Survey, An Assessment of the Economic Impact of XXX-Rated Video Stores in Chelsea," The Chelsea Action Coali don and Community Board 4, 1993. 38 Specific comments made by businesspersons included the following: My clients don't like to come to my office and have to go by these stores. The storefronts also lower my image as a business which is very detrimental to me. - publishing consultant There is a XXX store on the next block. We work until 8:00 P.M. Mon. - Thurs. and it is scary to walk past the seedy element that hangs out there. - retail furniture store Impacts Identified at the Public Hearing of The Task Force on the Regulation of Sex-Related Businesses The Task Force on the Regulation of Sex-Related Businesses was established in 1993 by the Borough President of Manhattan, Ruth W. Messinger, in response to community concerns about increasing concentrations of sex-related businesses. The Task Force conducted a public hearing on October 6, 1993, at which more than 20 ****' people testified. Approximately twice as many individuals testified in favor of regulating adult entertainment establishments as those opposed to government regulation of adult uses. Those speaking in favor of regulation discussed adult establishments in various neighborhoods in Manhattan: Tribeca and Downtown Manhattan, Chelsea, East Harlem, Times Square, and the East Side; the majority spoke of Times Square and Chelsea. The Task Force structured the hearing as a fact-finding hearing to obtain testimony about how adult uses impact residents, businesses and Manhattan neighborhoods. The impacts identified by the testimony are summarized below, and a copy of the transcript of the public hearing is available for review at DCP. Crime, including drugs and prostitution, was the most frequently cited impact from adult establishments. For example, the President of the 42nd Street Development Project, referring to a concentration of sex-related uses on 42nd Street between 7th and 8th Avenues, cited a 60 percent drop in crime after the Project took tide to two-thirds of the project area in April 1990 and a majority of the site was cleared.59 • ** The transcript of the testimony, at pages 110 through 116, is instructive of the effects of the concentration '**gy of adult uses. 39 Several speakers noted that certain crimes were associated with adult entertainment establish- ments. One speaker, for example, stated that there had been no houses of prostitution in a particular neighborhood for ten years but, subsequent to the opening of a triple-X video store, two houses of prostitution had opened. These illegal establishments have since been closed by the city. Quality-of-life impacts, such as littering, noise, late night operations, offensive signage, and general negative perceptions about neighborhoods or certain streets, were often mentioned as impacts. For example, the not-for-profit operator of an SRO stated that persons loitering near two adult establishments located across the street from the residence have made the street "intimidating," giving it a "different feeling" from that which had existed before the second adult use moved to the street. In other cases, certain impacts such as offensive signage depicting eroticism or sexually-explicit words were noted as especially problematic for children. It was observed that these signs are sometimes located near school bus stops. Most of those testifying identified the impacts of adult entertainment establishments as especially troublesome in residential neighborhoods. Many noted the problem of adult uses in concentration, and expressed concern about the proliferation of these establishments absent the enactment of controls. In general, those testifying against government regulation of adult entertainment establish- ments disputed the testimony about impacts. For example, testimony was offered that an adult burlesque theater provides 50 percent of the business of the commercial parking lot located across the street from it. Rather than having a negative impact on nearby businesses, it was claimed, the adult establishment brings in business and benefits other businesses. Others stated that the testimony of those proffering impacts from adult establishments was anecdotal. An adult video distributor, alluding to the Chelsea Business Survey, complained of bias in surveys and stated: "The way you phrase a question can determine the reply." Impacts Identified in the Times Square Business Improvement District Study In June 1993, a Times Square Business Improvement District study found that pending city- wide legislation, placing locational restrictions on adult entertainment uses, would remove adult uses from most of the Times Square area; the approximately 40 adult uses presently within the area would only be allowed in small clusters in manufacturing districts to the south 40 and west of the TSBID.60 Aware of the legislative history of similar legislation around the country, the TSBID contracted for a further study on the secondary effects of adult entertainment uses and their concentration, which was issued in April 1994.*' The TSBID requests that the city restrict adult establishments in residential neighborhoods, and develop "legal and effective ways to mandate dispersal of these uses in commercial and manufacturing districts in such a way that no designated area becomes saturated, producing the negative impacts that Times Square and, Eighth Avenue in particular, suffer." The study focused on the impacts of the dense concentrations of adult entertainment uses along 42nd Street between Seventh and Eighth Avenues and along Eighth Avenue between 42nd and 50th Streets. It briefly summarized the history and demographics of the area, crime statistics, and the results of 53 in-person and telephone interviews with large and small-scale business and property owners including retail, restaurant, hotel and theater enterprises as well as community boards, civic organizations, churches, schools and social service agencies. It also analyzed trends in property values. Data for assessed property values for the 1985/86 and 1993/94 years were analyzed individu- ally and in aggregation for study and control blockfronts to derive the specific and overall changes in valuation over that period of time. According to the study, aggregate data showed that the rate of increase of total assessed values for the study blocks with adult uses did not increase as much as the rate of increase for the control blocks without adult uses. For specific blocks, the rates of increase for other uses tended to be less than those for adult uses. The report stated that the proximity of an adult use may be "subjectively viewed" by assessors, and cited further corroboration by an appraiser with the Department of Finance. The study of property values concluded that "while it may be that the concentration of adult use establishments has a generally depressive effect on the adjoining properties ... we do not have sufficient data to prove or disprove this thesis." There were almost twice as many complaints about crime for the 42nd Street study block as the control block, and more than twice as many complaints for the Eighth Avenue study blocks as the control blocks. The number of criminal complaints are highest near 42nd Street where adult uses are most concentrated and decline further along Eighth Avenue. Prostitution arrests *° "Report on Adult Use Establishments in the Times Square Business Improvement District and the Effect of the New York City Council's Proposed Neighborhood Protection Act," Insight Associates (in association with Raven Design Works), June 14, 1993. " "Secondary Effects of the Concentration of Adult Use Establishments in the Times Square Area," Times Square Business Improvement District, April. 1994 (prepared by Insight Associates). 41 were higher on Eighth Avenue than Ninth Avenue but even higher for the area west of Ninth Avenue. Police statistics indicate that there has been a 54 percent decrease in crime during the past five years in the Times Square area, where the number of adult uses has also declined. A survey of property and business owners in the Times Square area revealed several impacts from adult entertainment establishments located in the area, particularly in concentration. All (12) expressed the view that adult use businesses have a negative effect on the property values of businesses located in their vicinity, emphasizing the negative effects of a concentra- tion of adult businesses. Theater organization executives (3) stated that adult uses are detrimental to their business. One cited complaints from theater patrons about an adjacent adult use. Representatives of restaurants (7) attributed declining business during evening hours, inability to book corporate parties, and "flamboyant" adult use advertising as having a negative impact on their businesses. Three hotel operators and one hotel owner "agreed that the dense concentration of adult entertainment venues was a deterrent to their trade". One hotelier stated bookings are down; customers have sent photographs of the adjacent pom store to complain to the hotel's national booking office. Of five retailers interviewed, two stated that "unsavory" people loiter in front of adult uses, and are involved in petty crime. Impacts Identified in Newspaper Reports and Correspondence Newspaper articles since 1993 have chronicled neighborhood concerns and opposition to the proliferation of adult entertainment establishments throughout New York City. Previously located in a few specific areas, e.g., the Times Square area, or isolated locations, triple-X video stores and topless/nude bars can now be found in or near areas of a more residential character. Some residents, outraged by the nature of adult uses in their neighborhoods, and afraid of potential negative impacts, have organized ad hoc groups and appealed to local officials to have them closed down. Using a combination of picketing, petitions, publicity and pressure tactics on landlords, these neighborhood groups have often been able to directly influence the location of adult entertainment uses. The following is an abstract gathered from New York City newspapers, both daily and weekly, of the opinions and actions of local residents who oppose the operation of adult uses in their neighborhoods. Although anecdotal and subjective, these comments demonstrate the concern, outrage and sense of intrusion that many people feel. 42 Fear over the potential consequences of proliferation is a major factor in neighborhood opposition to adult entertainment uses. A businessman on Sixth Avenue in Chelsea who has just had a triple-X video store move into the ground floor space in his office building states: "Then I see every couple of blocks has that kind of store and just worry that the neighbor- hood would change to be like Times Square." A member of Manhattan Community Board 4 is more explicit: "You get three to five of these stores in an area and you create a strip. Have a strip, and you get prostitution and other related problems." In the Chelsea area, concern is so great about the proliferation of adult entertainment uses that residents and businesspeople joined in a coalition that has been successful in routing four of the nine adult uses in the neighborhood. The Chelsea Action Coalition has held protest marches and rallies to denounce such uses and has picketed adult entertainment uses to intimidate both the store owner and the potential patron. A woman who participated in a protest march with her eight year old daughter said she did so because, when she and her daughter walk down Sixth Avenue, her daughter says: "Don't look, Mommy. It's a very dirty store." The Coalition has publicized the names of landlords who rent space to adult entertain- ment uses, pressuring landlords to evict them. After being picketed, one owner of a triple-X video store, at Seventh Avenue and 23rd Street, converted two-thirds of his store to conven- tional videos, put up a sign stating, "Ladies and Kids are Welcome," and distributed flyers apologizing for opening the store in a residential neighborhood. The Coalition has also reached out to the community board and the City Council, asking for legislative action. Fear of proliferation of adult uses can mobilize community action even when local civic leaders and police officials agree that the sole adult use has provoked no illegal activity or even complaints about quality-of-life issues. When a local bar, located on upper Fourth Avenue in Bay Ridge, introduced topless dancers and started leafletting the neighborhood, over 1,000 people signed a petition opposing it. "This is a community issue for those of us who live in Bay Ridge," said one resident. Citing the belief that the topless club sets a precedent that other such establishments might follow, the leader of an ad hoc group formed to fight the topless club also reflected ah apprehension that an adult entertainment use attracts people from outside the neighborhood: "This place is bringing hi people from all over the place, who are not of, by or for this community. We've got people from Brooklyn Heights, Bensonhurst, members of the Hell's Angels, all kinds of people hi there." The club owner, a long-time resident of Bay Ridge, met with local elected officials, civic leaders and police officials, and offered a number of concessions by curtailing dancing on Sundays and restrict- ing dancing to after 9:00 pm on other nights. The community organization threatened daily protests if the bar continued to feature topless dancing. The club owner changed the topless 43 format, saying he "did not want to insult the community or church." "Communities have a lot of power in situations like this (because) if nothing else works, they could make it economically impossible for the club to operate by continuously picketing the place," said a local official. Concerted community action has also been effective in Astoria, Queens. When an awning advertising "Adult Video" was installed for a store undergoing renovation on Ditmars Boulevard, irate civic leaders, politicians, clergy and residents hastily assembled a group called the Coalition for the Protection of Children. "I've never seen the community united like this on any issue," said a local politician suggesting that this was because the store was in the middle of a residential area and within walking distance of four schools. After negotiations with the landlord and store owner failed, the Coalition scheduled twice-daily protests opposite the store. Local newspapers provided publicity, listing protest times and telephone numbers for further information as well as the name of the store owner. The owner soon assured the Coalition that the store would become family-oriented with an adults-only section but it was finally shut down in the face of continued opposition. The Coalition vowed to demonstrate against other adult entertainment uses because "this is a significant problem in the city," according to one local legislator. Residents on the Upper West Side joined with local politicians to picket and rally in front of a triple-X video store on Amsterdam Avenue. The store is still doing business but the signage was altered to a format less objectionable to the community. A year later, some neighbors picketed a newly-opened sex "boutique" eight blocks away between Amsterdam Avenue and Broadway, calling it a "smut shop." A couple living in the small building said they were afraid the store would attract transients and expose children to X-rated material. "We don't have any control or say about what's moving onto our block," said a woman who complained to the community board. "I believe in freedom of speech," added a neighbor who organized the demonstrations. "I understand that people have the right to sell and buy these things. I just don't want it across the street." Concern over a triple-X video store on Bleecker Street in Greenwich Village located 200 feet from a church and parochial school prompted an informal protest by residents that led to the cancellation of the lease. "To have a store with pictures of a donkey having sex with a woman located 40 yards from an elementary school is simply unacceptable," said a member of a nearby block association. Another resident, concerned that an influx of triple-X video stores could harm the tourist business in the Village, stated: "No one wants to do away with the First Amendment but this is degrading to the quality of life in the neighborhood." A 44 number of merchants complained about the high visibility of a triple-X video store that has semi-naked women painted on the windows and flashing lights over the door. "This is bad for the atmosphere of the entire neighborhood. A lot of tourists come through here, and the [triple-X video] store can hurt everybody's business." In November, at a community board meeting in the Clinton area of Manhattan, residents of West 30th Street in Manhattan testified for six hours about a 15 foot illuminated sign, "NUDE," that advertises a new topless club on Eighth Avenue near Madison Square Garden. Although worried about the proliferation of adult entertainment uses eroding their quality of life, it was reported that residents were most outraged by the blatant signage. "A lot of them just want to go into [the club] and smash the joint," said a member of the community board. About 400 residents marched and picketed a 24-hour triple-X video store on Flatbush Avenue in Brooklyn because "it's a block and a half from an elementary school, and near a McDonald's and Burger King where high school kids hang out," according to one civic leader. "We feel it doesn't belong here." In Community Board 12 in the Bronx, a neighborhood bordering Westchester County, residents have organized several protests against a topless club that opened in January on East Gun Hill Road near Laconia Avenue. The opposition is concerned about the location of the club. "The guy is surrounded by churches and schools," said the community board chairman noting that the three other adult entertainment uses in the district are in primarily commercial areas. Last fall, the Board was successful in deterring the owner of a bar on East 233rd Street from converting to a strip club. "We basically just told him that he was hurting the neighborhood's image and himself by doing it and that we'd fight him," said the chairman of the community board. "He agreed to stop." In Jackson Heights, Queens, members of the Jackson Heights Neighborhood Association objected to a nude juice bar located on a commercial strip, Northern Boulevard, two blocks from a school. When informal protests were ineffective, they initiated protests every Friday and Saturday night. "We're not questioning at all the First Amendment or the right to be nude," said a local merchant and civic leader. "It's just their location, period." On East 53rd Street in Manhattan, between Second and Third Avenues, some residents have formed a block association to protest the appearance of two triple-X video stores. The stores epitomize a relapse for the previously notorious block known as the Loop for its male, prostitution and profusion of adult entertainment uses. "This was just beginning to get cleaned up," said one nearby resident. "Now, this." A landlord across the street from the video stores 45 *~ complained; "Every one of our potential renters refer to those stores. They are unhappy to '**** see this type of clientele in a residential neighborhood." The owner of an adjacent 55-unit apartment house, however, claimed to have a waiting list. At one of several protest rallies in front of the stores, one man who had brought his two young sons, said: "Bringing up kids in this environment is hard. My oldest started to ask, What's that. Daddy, as we walk by their big signs." The explicit signage and gaudy lighting that draw attention to adult entertainment uses are a focus of much of the local condemnation. "These gross caricatures of sexual objects are an insult," said a member of Manhattan Community Board 4. "It's all psychological," said a store owner in Murray Hill directly across the street from a triple-X video store. "The store looks terrible but they're not doing anything wrong." A Chelsea resident agreed: "The problem is not that its a porn store but that it looks like hell." Some residents perceive other impacts emanating from the presence of an adult entertainment use. Residents reported seeing prostitutes for the first time on Third Avenue and 37th Street, in Manhattan, a result, allegedly, of the presence of a 24-hour triple-X video store. A local civic group held frequent demonstrations and set up a table on the sidewalk where volunteers sat **"<*" and harangued customers of the triple-X video store. Although the signage has been described as muted, passersby had a clear view through the windows of the store interior. "It's an assault to the eye," said a member of the Murray Hill Committee Zoning Alliance who led twice-weekly protests and claimed to have gathered 7,000 signatures opposing the adult use. The owner masked the windows but eventually closed citing lack of business. Neighbors joined in nightly demonstrations outside an upscale, nude cabaret, Runway 69, on Austin Street in Forest Hills, Queens. The landlord was subjected to a barrage of telephone calls protesting the presence of the nude dancers. "I don't want to sound like I'm all for it [the nude club]," said one local merchant, "but Forest Hills is changing." The club replaced a disco that attracted police attention because of die young, rowdy crowd. Afraid that the adult entertainment use would increase congestion, attract disreputable outsiders and attract crime, the demonstrators continued until the landlord negotiated to buy out the club's lease. Referring to the First Amendment right of free speech that covers adult entertainment uses, a member of a neighborhood association in the East 60s in Manhattan claimed: "Everybody has a right to go to these places but when it becomes a nuisance, when it becomes a major problem, we can exercise our First Amendment rights to protest noise, sanitation problems, traffic and crimes." >^) 46 There have been numerous letters and petitions from community groups and local organiza- tions protesting the intrusion of adult uses into their community and asking the City to find solutions for the problem. "(We) just wish to live quietly and raise (our) families in quiet residential communities," wrote the president of one borough-wide civic group. A taxpayers' group in Glendale said that having to pass adult uses was offensive for children and adults who participated in activities at the many schools and churches prevalent in the area. Another neighborhood group in Queens asked for a moratorium on any new sexually-oriented bars. The executive director of The New York Foundling Hospital was concerned that their young charges were exposed to the "blatant and offensive" signs advertising triple-X video stores in Chelsea. A neighborhood association in Manhattan, wrote that it "sees the proliferation of pornographic businesses as a dangerous trend that violates the integrity of our East Side neighborhood." A resident of the East Side wrote: "We, who live in the city's residential areas, are not opposed to free speech, we just feel porn establishments should exercise their free speech in more appropriate commercially zoned areas. The tenants of a residential hotel in the Times Square area submitted a number of signed petitions and wrote: "Although the people who live in this building and in this neighborhood can prove no hard numbers about how their businesses have been harmed or prove that crime has increased, they do know that the quality of their lives and their neighborhood is being deleteriously impacted." Another civic group summed it up when it wrote: "many law-abiding citizens view these establish- ments as a threat to the quality of life in their neighborhoods. Such concerns are quite valid and should not be easily dismissed." 47 VI. SURVEY OF ADULT ENTERTAINMENT USES In 1993-94, DCP surveyed street and signage conditions, local organizations and businesses, real estate brokers, and police and sanitation officers, and analyzed criminal complaint and property assessment data for six study areas throughout the city to obtain information about the impacts of adult entertainment establishments. A map indicating the location of the study areas follows. The Times Square area was not chosen as a study area because the TSBID study was already underway. DCP's study areas were mostly in the other boroughs in areas with lesser concentrations of adult uses. Three of the six study areas contained a single isolated use. Within each study area, DCP selected "survey" blockfront(s), containing one or more adult entertain- ment establishments, and "control" blockfront(s), which have similar land uses, except for an adult use. A map of each study area is included in Appendix A. Summary Survey Results Planners' Assessment Sidewalk and street frontages on the survey and control blockfronts in each of the six study areas were studied for noise, traffic, sanitation, and loitering. Caution should be exercised in generalizing from this survey. Observations were made during the cold weather months, and over a brief amount of time. Cold weather will discourage loitering because few people want to remain outdoors for extensive periods under such conditions. Surveyors did not spend significant amounts of time observing each street element, although observations were made more than once, on various days of the week, at different times of the day or night, and on numerous blockfronts. On survey blockfronts in half of the study areas, impacts were noted. They were generally associated with non-adult uses, e.g., noise from voices and pedestrian congestion were noted on a blockfront in Study Area 2, but the impacts are associated with a playground. In Study Area 3, pedestrians were observed waiting on the sidewalk, but for meals served in a church. However, some noise from music emanating through the walls onto the street was noted for the topless bar in Study Area 6. 49 Study Areas: 1 - within Manhattan Community Districts 4 & 5 3 • within Manhattan Community District 7 3 - within Bronx Community District 5 4 - within Brooklyn Community District 7 5 - within Queens Community District 2 6 - within Staten Island Community District 2 Study Areas study area study area designation Adult Entertainment Study Department of City Planning / City of New York Signage Review Accessory business signs were examined for all ground floor commercial uses located on the survey and control blockfronts in all six study areas. Little difference was noted for most signs on the survey blockfronts compared with the control blockfronts, except with respect to adult entertainment establishments. In general, signage is characterized by the name of the establishment located above the storefront. Sometimes the accessory business signs are illuminated; less frequently they are flashing. Where there are display windows, additional signs are generally found; these are often neon or illuminated. Signs are generally flush with the buildings, but are sometimes located on projecting canopies. Significantly, however, the signage for the adult entertainment establishments is characteristi- cally at odds with that of other establishments. In half of the study areas, signage for the adult uses occupies a greater percentage of storefront surface area than other commercial uses located within the same blockfronts. For example, on blockfronts in Study Area 2, accessory business signs cover approximately 25 to 40 percent of the storefront surface area, but the adult use signage occupies 80 to 100 percent of such area. On blockfronts in Study Area 6, accessory business signs cover about 20 percent of frontage; the adult use has signage covering approximately twice that amount. On blockfronts in four of the six study areas, adult use signage tends to be illuminated when that of non-adult commercial uses is not. For example, on blockfronts in Study Area 1, approximately 80 percent (32 of 37) of the ground floor commercial accessory business signs are non-illuminated. In stark contrast, 75 percent (3 of 4) of the adult entertainment establish- ments have illuminated signs. On blockfronts in Study Area 4, signs on most of the adult entertainment establishments are illuminated, but non-adult uses located on these blockfronts generally have non-illuminated signage. In half of the study areas, graphic material for adult use signage was noted. For example, in Study Area 5, the outline of the female figure was a component of the adult use business sign. Flashing signs were generally not noted for the adult uses located in the six study areas. The structure of the signage for the adult use located in Study Area 3 is typical of that of movie theaters. Significantly, the movie marquee and movie poster board display windows are devoid of graphic material; only "XXX" and "adult" indicate that pornography is shown inside. 51 Community Responses Twenty-eight local organizations, including the community district offices, within the six study areas were contacted and 23 responded to DCP's survey; not all responded to each question asked. A majority (14 of 22) informed the surveyor that over the last year they had received comments about adult entertainment establishments located in their communities. Five said that these comments represented about half of all comments made about commercial uses; four informed DCP that they made up an even greater (a high) proportion of such comments. The comments, primarily from residents, mentioned graphic signage, potential proliferation of uses, proximity to residential neighborhoods, negative influence on children and teenagers and the nature of the adult use itself. More than 80 percent of those surveyed (19 of 23) responded that adult entertainment establishments negatively impact the community in some way. Two-thirds (12 of 18) stated that the impacts from adult uses are different from those of similar establishments not characterized as adult; however, bars and discos were often said to create problems whether they have an adult use character or not Approximately 20 percent of those responding (4 of 19) indicated that the impacts are the same for all types of adult uses studied. Nearly 40 percent (9 of 23) of those responding stated that they have dealt with the owner or manager of an adult business about a community concern. Only two reported that the issue was resolved. Business Responses Ninety-seven businesses located within the survey and control blockfronts were contacted and asked to respond to DCP's business survey, and 70 agreed; not all responded to each question asked. Approximately 20 percent (13 of 60) of those responding stated that they have received comments about adult uses in their area. For example, some said they were aware that residents, clients, etc., perceived that the adult use was inappropriate for the neighborhood, or that a proliferation would be bad for the community. Thirty-three percent (17 of 52) responded "not known" to a question about how nearby adult uses impact their business. However, seventeen percent (9 of 52) responding to the question think that nearby adult uses do impact their business. Nine (of 40 responding) believe the impacts are the same for all types of adult uses, i.e., adult bars, triple-X video stores, and 52 adult theaters. Twenty percent of the businesses responding (11 of 53) think that the impacts from nearby adult entertainment establishments are different from the impacts of similar establishments not characterized as adult. Nearly half of the businesses responding (27 of 57) believe that their business would be negatively affected if more adult establishments were to locate near them. However, a nearly equal number (24 of 55) believe that their business would be positively affected if more bars, movies or theaters, or video/bookstores of any kind were to locate nearby. About 10 percent of the businesses responding (4 of 44) stated that they have dealt directly with the owner or manager of an adult business about a business concern. Half advised the surveyor that the concern was resolved. Police Responses The community liaison or beat officer was interviewed for each of the six study areas. When the survey and control blockfronts were compared for criminal complaints and allega- tions, the officers generally did not link higher incidents with adult uses. Three officers believe that criminal allegations are higher on the survey blockfronts compared to the control blockfronts but, in two of these cases, the higher incidence of allegations was attributed by them to uses unrelated to the adult use. In a single instance, an officer replied that the adult entertainment establishment located in the study area has some effect on crime, and then "only rarely." Four of the six officers thought the adult uses have no effect on crime. One officer stated that if more adult entertainment establishments were to locate in the study area, crime probably would increase. However, that officer and another responded that more bars, movies or theaters, or video/bookstores of any kind would effectively increase crime in the study area. Real Estate Brokers Responses Nineteen real estate brokers from all of the six study areas were interviewed; not all responded to each question asked. It is significant that more than 80 percent of the brokers responding (11 of 13) reported that an adult entertainment establishment tends to decrease the market value of property that lies within 500 feet of it. When the distance is increased from between 500 to 1,000 feet of an adult use, a majority of brokers (7 of 13) indicated that the same phenomenon would occur. At 1,000 or more feet, less than 25 percent of the brokers (3 of 13) responded in this manner. The pattern 53 of response was basically unchanged when the question referred to two adult uses (a concentra- tion) instead of one. In addition, approximately two-thirds (8 of 13) of the brokers expressing an opinion said that the presence of an adult entertainment establishment lengthens the time it takes to sell or lease nearby property, or the turnover rate of nearby properties. Several brokers added comments to explain their responses about the impact of adult enter- tainment establishments on nearby property values. Some said that property value decreases would be minimal, or that values may be affected differently depending on the age make-up of the area. One broker suggested the area of impact as one avenue or two short blocks; most brokers said that it was not the physical distance but the perceived impact that mattered most One broker said that impact depends on whether the (real estate) market is up or down. In general, commercial brokers said that impacts on commercial properties would tend to be limited because the value of storefronts on such strips is determined more by locational factors, business volume, etc., man by a nearby adult use. Not all comments were negative: for example, one broker asserted that a particular adult bar offers customers a check cashing service that would not otherwise be available in the manufacturing district to which he was referring. Three brokers related incidents in which an adult use negatively impacted other properties. One incident involved a children's gym that moved after a topless bar located within the same shopping center. Another broker reported that a prospective residential loft purchase was terminated after it was reported that the Flower District planned to move. The pur- chaser feared that the vacant space would be occupied by adult uses. A third incident concerned the broker — he stated that when he learned that his wife's company was planning to move to a building containing a storefront adult use, he intervened and found new offices for the company. Subsequently, he heard that the space in the building containing the adult use took a long time to rent. Sanitation Interview The Sanitation Department official representing each study area was interviewed. Sanitation problems were attributed to one adult use, located in the Study Area 6. The problem consisted of two violations issued over the past year for litter and broken glass in the accessory parking lot. 54 Analysis of Criminal Complaint Data The Police Department provided DCP with information about criminal complaints for the three-month period beginning June 1, 1993, for the survey and control blockfronts within the six study areas. The complaints were drawn from precinct files. Criminal complaints are allegations of unlawful acts, generally reported by a victim. The study analyzed this data to see if there was any association between complaints and adult uses. Within each study area, there were generally more complaints noted in the survey blockfronts compared with the control blockfronts, as shown in Table 4, below. Only in Study Area 3 were more complaints recorded for the control blockfronts compared to the survey block- fronts. In Study Area 4, an equal number of complaints were noted for the survey and control blockfronts. Study Area 6 has too few complaints for meaningful analysis. TABLE 4 CRIMINAL COMPLAINTS ON SURVEY AND CONTROL BLOCKFRONTS Study Area Study Area 1 Study Area 2 Study Area 3 Study Area 4 Study Area 5 Study Area 6 Complaints on Survey Blockfronts 80 16 47 8 117 3 Complaints on Control Blockfronts 24 10 99 8 29 0 Within each study area, the number of survey and control blockfronts often differ. In Study Areas 1, 4, 5 and 6, the number of survey blockfronts is greater than the number of control blockfronts. To account for these differences, a control blockfront was "paired" with the sur- vey blockfront that has the most similar land uses (and an adult entertainment establishment). 55 Criminal complaints for the paired blockfronts are shown in Table 5, below.62 TABLE 5 CRIMINAL COMPLAINTS ON "PAIRED" BLOCKFRONTS Study Area Study Area 1 Study Area 2 Study Area 3 Study Area 4 Study Area 5* Study Area 6 Complaints on Control Blockfront 10 10 99 8 23 6 0 Complaints on Paired Survey Blockfront 7 16 47 2 49 10 0 *Two control blocks were chosen for the study area; the area spans approximately one mile, and the character of it changes. In Study Areas 1, 3 and 4, there were more complaints noted on the control blockfronts compared with the survey blockfronts. However, in Study Areas 2 and 5, more complaints were noted on the survey blockfronts compared with the control blockfronts. In Study Area 6, there were no complaints on either the control or survey blockfront. Other land use related criteria could affect the analysis. For example, the location of the paired control and survey blockfronts was analyzed for proximity to transportation facilities such as subway stations and limited-access highways. These facilities bring concentrations of people into an area, and by doing so may affect the incidence of criminal complaints. In general, the blockfronts located closest to subway stations and a limited-access highway ramp had more criminal complaints than blockfronts located farther away. Excluding from this analysis one of the paired blockfronts in Study Area 5 that is distant from subway access, and Study Area 6, because there were too few complaints to consider, the analysis found that in each of the other study areas the number of criminal complaints was greater near transpor- tation facilities, notwithstanding the location of an adult use. Due to limitations in reported data, in Study Area 1 — where the complaints were generally listed by street intersection rather than by blockfront — 25th Street was chosen for the two survey blockfronts and 21st Street was chosen for the two control blockfronts. 56 In addition, caution should be exercised in making inferences using criminal complaints. Data was collected for the limited purpose of identifying differences in criminal complaints between survey and control blockfronts within each study area, not between or among study areas. Differences in the number of criminal complaints between or among study areas may be a function of variations in population densities, or other factors for which no study controls were established. Additionally, data was gathered for a single, limited period of time; not for trend analysis. In summary, it was not possible to draw definitive conclusions from the analysis of criminal complaints. Land uses other than adult entertainment establishments, e.g., subway station access, appear to have a far stronger relationship to criminal complaints. It was not possible to isolate the impact of adult uses relative to criminal complaints. Analysis of Property Assessed Values For each study area, property assessed valuations were identified for 1986, 1989 and 1992, and the percentage changes between 1986 to 1992 were noted for the study area, survey blockfronts, control blockfronts, community district, and borough. The survey and control blockfronts were compared using the data indicating the percentage changes. The survey blockfronts were also compared in the same way with the community district and borough. The analysis of trends in assessed valuation relative to adult entertainment uses was inconclu- sive. It would appear that if adult entertainment uses have negative impacts, they are overwhelmed by other forces that increased property values overall, at least as measured by assessed values. Even at the small scale of the survey blockfront, there is a wide diversity in the assessed value trends ranging from an increase of more than 18 percent to an increase of more than 200 percent over the period of analysis, strongly suggesting the importance of other factors. The influences on assessed value that the city's assessors take into account are numerous and include the sale prices of similar comparable properties adjusted for differences in size, age, and location. While the total assessed values on the survey blockfronts may be influenced to some extent by the presence of adult entertainment uses, demonstrating such effects is very difficult. In the two Manhattan study areas (Study Areas 1 and 2), the change on the control block- fronts substantially exceeded the change in the assessed valuation on the survey blockfronts. Between 1986 and 1992, the total assessed valuation on the control blockfronts in Study Area 57 1 increased 165 percent; the survey blockfronts increased 68 percent. In Study Area 2 during that period, the control biockfronts increased 134 percent; the survey blockfronts increased 18 percent. However, in the other four study areas, total assessed valuations increased by a greater percentage on the survey blockfronts compared to the control blockfronts. In Study Area 3 (the Bronx), the total assessed valuation on the survey blockfront increased by 164 percent over the six-year period; the control blockfront increased 155 percent. In Study Area 4 (Brooklyn), the total assessed valuation on the survey blockfronts increased 78 percent; the control blockfront by 19 percent. Study Areas 5 (Queens) and 6 (Staten Island) had increases of 153 percent and 202 percent on the survey blockfronts, and 149 percent and 88 percent on the control blockfronts, respectively. There are several additional reasons why the assessed value findings are necessarily ambigu- ous. First, the survey blockfronts tend to be commercial strips or shopping streets. Commer- cial property in a stable area is likely to have assessed values updated with greater frequency by assessors, who take into account income and expense data that tends to have a net overall positive effect with inflation. Under the Direct Income Capitalization method used by assessors, this tends to yield a higher assessed valuation. Second, the adjoining community district tends to contain a greater proportion of residential property, which is subject to legal limitations on the increase in assessed valuation. Since 1983, residential property in Class 1 (primarily one- to three-family houses) have had their potential annual assessment increase limited to six percent and their potential maximum five-year increase capped at 20 percent (unless the increase is due to a "physical change" such as construction). In addition, in the absence of a sale, residential property tends not to be reassessed, particularly compared to non-residential property in an active area. Third, the total assessed value of the survey blockfronts is very small as would be expected compared to the community districts; in some cases less than one percent While trends in the community district would tend to be reflective of local area trends, the magnitude of the survey blockfront component of total assessed value in the district is so small that its contribution to the community district trend would tend to be imperceptible, whether its specific impact was negative or positive. 58 VH. OVERALL STUDY FINDINGS AND CONCLUSION DCP found that the number of adult entertainment establishments increased substantially throughout New York City between 1984 and 1993, increasing 35 percent — from 131 to 177. More than 75 percent of adult entertainment establishments are located in zoning districts that permit residential uses. Often these uses are found in concentration, such as in the Times Square area and Chelsea in Manhattan. Adult uses are now located in more of the city's neighborhoods than before, and have clustered within them. For example, between 1984 and 1993, the number of community districts with seven or more adult entertainment establishments nearly tripled, from three to eight. Seventy-five percent of the adult uses are located in ten of the city's 59 community districts. Outside of central locations, adult businesses have clustered along major thoroughfares, such as Queens Boulevard and Third Avenue in Brooklyn. Adult entertainment is more readily accessible now than it was ten years ago. Cable television, newsstands, bookstores and many general interest video stores also provide adult viewing material. The proliferation of adult entertainment establishments within New York City is attributable in part to the increase in adult video stores, which recently have begun to cany inexpensive videos, and growing numbers of high-priced topless and nude bars. Changing sexual mores since the scourge of AIDS may be another factor. One segment of that industry, adult triple-X videos, reported $2.1 billion in sales and rentals La 1993. Within New York City, the topless club segment of the industry is estimated conservatively as a $50 million a year business, employing about 1,500 dancers. DCP found secondary impacts, similar to those found in studies done by other localities. For example, the Town of Islip, New York, found that adult uses create "dead zones" in commer- cial areas that shoppers avoid. Los Angeles, California, found a greater proportion of certain crimes in areas of concentration of adult uses compared to the city as a whole, and other impacts traced to negative public perceptions about adult uses, such as the need to provide private security guards in parking lots and closing area businesses early. Los Angeles also found that adult businesses were perceived by the majority of survey respondents as exerting a negative impact on surrounding business and residential properties, stating "in terms of the attitudes of the respondents towards such businesses, the conclusion must be drawn that the overall effect on surrounding properties is considered to be negative." Indianapolis, Indiana, in cooperation with the Indiana University School Of Business' Division of Research, surveyed national real estate appraisers and found that 75 percent of the appraisers 59 felt that an adult bookstore located within a block of a residential neighborhood would have a negative effect on real property. Major crimes occurred in study areas that contained at least one adult entertainment establishment at a rate that was 23 percent higher than six control areas (similar areas without adult entertainments), and 46 percent higher than the Indianapolis Police District. The City of Whittier, California, found higher turnover rates in commercial and residential areas adjacent to adult uses. The study compared 38 types of criminal activity over two time periods, showing a total increase of 102 percent for the study area containing adult businesses while the city, as a whole, only had an eight percent increase. A study by the City of Austin, Texas, compared areas with adult businesses to other areas containing similar land uses but no adult businesses, revealing a sex crimes rate between two and five times greater in the areas with adult businesses. The study also showed that the sex- related crime rate was 66 percent higher in areas having two or more adult businesses than in those areas having only one such business. Phoenix, Arizona, studied the relationship between arrests for sex crimes and the locations of adult businesses, finding an overall increase of six times the sex crime rate in the study areas with adult uses over the control areas without such uses. The State of Minnesota reported that a study conducted in that state examining the effects of sexually-oriented businesses upon property values and crime rates indicated clearly that such businesses had a strong negative impact on the crime rate. The addition of one sexually- oriented business to a census tract area caused an increase in the overall crime rate index in that area by more than nine percent. In another state study, it was determined that there was a statistically significant correlation between the location of adult businesses and neighbor- hood deterioration. Housing values were significantly lower in an area with three adult businesses than in an area with only one adult business. Also, there was a significantly higher crime rate associated with two adult businesses in an area than was associated with only one adult business in an area. Many other localities such as Manatee County, Florida, and New Hanover County, North Carolina, relied on the studies of other localities to predicate zoning text amendments, a method sanctioned by the United States Supreme Court.63 As a result of these impact studies, numerous communities enacted zoning laws to restrict the location of sex businesses ° City of Renton v. Playtime Theatres. Inc.. 475 U.S. 41 (1986). 60 and to require their dispersal. Some of the communities include Islip, Huntington, Brookhav- en, Smithtown and Babylon on Long Island; St. Petersburg, Florida; Atlanta, Georgia; Orange County, California; Los Angeles, California; Seattle, Washington; Camden, New Jersey; Kansas City, Missouri; Jackson, Mississippi; San Diego, California; and, Chicago, Illinois. Studies and reports have documented the impacts or secondary effects of adult entertainment establishments located within New York City. A 1977 City Planning Commission report noted that the concentration of adult establishments in the Times Square area created adverse economic and social impacts. The Commission related the proliferation of adult entertainment uses to a decade-old absence of major investment in that area, citing tax arrearage, sales declines, the loss of jobs, and closed businesses. Increases in felonious criminal activity was characterized as "overwhelming" in areas where there were concentrations of adult uses. Complaints for felonious assault were 142.3 percent higher in police posts with one or more adult uses compared to posts without an adult use. In 1994, the Times Square Business Improvement District published a study, "Secondary Effects of the Concentration of Adult Use Establishments in the Tunes Square Area." While conditions in the Tunes Square area have improved dramatically since 1977, the study found that the rate of increase of total assessed property values for the study blocks with adult usesr r J J did not increase as much as the rate of increase for the control blocks without adult uses. In addition, there were almost twice as many complaints about crime for the study blocks with adult entertainment establishments as nearby control blocks without adult uses. Property and business owners expressed the view that adult uses located in the area, particularly in concentration, have a negative impact on then* businesses, deterring potential customers. The study expresses the concern that the recent proliferation of adult uses (from 36 in June, 1993 to 43 in April, 1994) constitutes a threat to more recent commercial prosperity and residential stability in the area. Many residents of the communities in which adult entertainment establishments are located have complained about the impacts from these establishments. These impacts include: exposure of children and teenagers to graphic sexual images, increased crime, diminishing property values, adverse effects upon the climate for other types of commercial activities and overall negative influences upon community character. Sexually explicit business signs or displays visible from die public street are particularly offensive. The public's concern about the impact on residential neighborhoods of even a single adult entertainment use, the threat of a proliferation of adult entertainment establishments in the city's neighborhoods, and especially a concentration of adult uses, is evidenced by a review 61 of recent newspaper articles. DCP's survey of newspaper articles about the proliferation of adult entertainment establishments shows widespread public concern about their impacts, such as increased crime, attracting disreputable outsiders to a residential area, changing neighbor- hood character, and outrage and fear. For example, a businessman on Sixth Avenue in Chelsea who has just had a triple-X video store move into the ground floor space in his office building stated "Then I see every couple of blocks has that kind of store and just worry that the neighborhood would change to be like Times Square."64 Concern over a tripie-X video store on Bleecker Street in Greenwich Village located 200 feet from a church and parochial school prompted an informal protest by residents that led to the cancellation of the lease. "To have a store with pictures of a donkey having sex with a woman located 40 yards from an elementary school is simply unaccept- able," said a member of a nearby block association. In another example, a report stated that about 400 residents marched and picketed a 24-hour triple-X video store on Flatbush Avenue in Brooklyn because, according to one civic leader, "it's a block and a half from an elementary school... we feel it doesn't belong here." In Community Board 12 in the Bronx, residents organized several protests against a recently opened topless club because of its location. "The guy is surrounded by churches and schools," said the community board chairman, noting that the three other adult uses are in primarily commercial areas. In 1993, the Chelsea Action Coalition, in cooperation with Community Board No. 4, Manhattan, published the Chelsea Business Survey, which identified negative impacts associated with a concentration of sex-related businesses in that community. Of 100 businesses surveyed, 61 percent felt that the triple-X video stores had a negative impact on their businesses and 88 percent thought the potential for doing business in Chelsea has been negatively affected by the adult stores. Several impacts from adult entertainment establishments were noted in a public hearing held October, 1993, by the Manhattan Borough President's Task Force on the Regulation of Sex- Related Businesses. More than 20 testified; approximately twice as many in favor of regulating adult businesses as those opposed to government regulation. 64 References to "Times Square" are often made by New Yorkers concerned about the proliferation and concentration of adult establishments. It is not hard to understand why. According to the 1983 Annual Report of the Mayor's Office of Midtown Enforcement, in the mid-1970*s Times Square was clogged with pimps, Johns, and hookers as well as the addicts and muggers who along with them preyed on the public." The report states that 1.200 prostitutes worked out of the dozen or so prostitution hotels and the 23 massage Stan*, parlors concentrated along Eighth Avenue between 34th and 55th Streets, and another twelve sex businesses x\ were wedged in between these businesses. 62 Those citing negative impacts from adult establishments noted crime most frequently, and quality of life impacts such as littering, noise, late night operations, offensive signage, and general perceptions about neighborhoods or certain streets. For example, the President of the 42nd Street Development Project, referring to a concentration of sex-related uses on 42nd Street between Seventh and Eighth Avenues, cited a 60 percent drop in crime after the Project took title to two-thirds of the project area in April, 1990 and a majority of the site was cleared. The operator of a not-for-profit SRO stated that persons loitering near two adult establishments located across the street from the residence have made the street "intim- idating," giving it a "different feeling" from that which had existed before the second adult use moved to the street. Some observed that offensive signage depicting eroticism or sexually explicit words were noted as especially problematic for children; sometimes these signs were located near school bus stops. Some noted that the impacts from adult entertainment establishments were positive, e.g., a burlesque theater owner stated that her business provided 50 percent of the business of the commercial parking lot located across the street The positive impacts of adult entertainment establishments were further noted in a meeting held by DCP and industry representatives. They maintain that their businesses earn revenue for the city, provide jobs, and stimulate tourism. '}>*w / Through the fall of 1993 and continuing into 1994, DCP surveyed street and signage conditions, local organizations and businesses, real estate brokers, and police and sanitation officers, and analyzed criminal complaint and property assessment data for six study areas throughout the city to obtain information about the impacts of adult entertainment establish- ments. Four of the six study areas were hi boroughs other than Manhattan and in some cases contained a single isolated adult use. Surveyors found few problems but much of the work involving street conditions (noise, loitering, litter) was done during the winter months, and the results should be reviewed with caution. Significantly, the survey noted that signage for the adult entertainment establishments is characteristically at odds with that of other nearby commercial establishments. In half the study areas, signage for the adult use occupies a greater percentage of storefront surface area than other commercial uses located within the same blockfronts. In one study area, accessory business signs cover approximately 25 to 40 percent of the storefront surface area, but the adult use signage occupies 80 to 100 percent of such area. In four of the six study areas, adult use signage tends to be illuminated when that of non-adult commercial uses is not. In one study area, approximately 80 percent of the ground floor commercial \ accessory business signs are non-illuminated; in stark contrast 75 percent of the adult 63 establishments have illuminated signs. Also, in half of the study areas graphic material was noted for adult use signage. It is also significant that more than 80 percent of the real estate brokers responding to DCP's survey reported that an adult entertainment establishment tends to decrease the market value of property within 500 feet. When the distance is increased from between 500 to 1,000 feet of an adult use, a majority of brokers indicated that the same phenomenon would occur. The pattern of response was basically unchanged when the question referred to two adult uses instead of one. In addition, approximately two-thirds of the brokers expressing an opinion stated that the presence of an adult entertainment establishment lengthens the time it takes to sell or lease nearby property, or the turnover rate of nearby properties. This is consistent with general principles of determining market value of real property; value reflects and is affected by forces that motivate the activities of people, including social ideals and standards. In surveys of community organizations, more than 80 percent responded that adult entertainment establishments negatively impact the community in some way. Nearly half of the businesses believe that their business would be negatively affected if more adult establish- ments were to locate near them. Where respondents indicated that their businesses or neighborhoods were not adversely affected by adult uses, the uses were not typically found in concentration; however, the respondents expressed a fear of the consequences of the potential proliferation and concentration of adult establishments in traditionally neighborhood- oriented shopping areas, along with a deterioration in the quality of urban life. These perceptions are bolstered by the findings in the TSBID Study and the Chelsea Business Survey, along with other studies described in more detail in this report. Years of urban planning experience confirm that these perceptions of negative impacts are important because people act on their perceptions. As Deputy Commander Peter J. Buccino of the New York Police Department stated in a recent unrelated newspaper article on privately funded community patrols: "Residents ... tell me they feel safer... To tell you the truth, perception often becomes reality."65 As cited in a legal case on adult uses, "urban sociologist Mel Ravitz stated a sociological axiom: If people believe something to be true, even if it not originally, they will tend to act as if it were true and, in so doing, help produce the condition originally believed."66 45 "Hiring Private Security Guards to Cut Neighborhood Crime." The New York Times. August 18.1994, p. C6. " Gibbs vs. American Mini-Theatres, as cited in "Adult Entertainment, A 40 Acre Study," Planning Division, '-, Department of Planning & Economic Development, St. Paul, Minnesota, 1983. *+*£/ 64 The analysis of criminal complaint data and property assessed valuation data was less conclusive than the surveys. Regarding criminal complaints, it appears that land uses other than adult entertainment establishments, e.g., subway station access, have a far stronger relationship to criminal complaints. It was not possible to isolate the impact of adult uses relative to criminal complaints. One reason is that data was collected for the limited purpose of identifying differences between survey and control blockfronts within each study area, not between or among study areas. Differences in the number of complaints between or among study areas may be a function of variations in population densities, or other factors for which no study controls were established. Additionally, data was gathered for a single period of time, not for trend analysis. Comparisons of percentage changes in assessed valuations between 1986 to 1992 for the study areas, survey and control blockfronts, community district, and borough, did not reveal any significant relationship. It would appear that the negative impacts of adult entertainment uses on property values that were found in other studies were overwhelmed by forces that increased property values overall, at least as measured by assessed values. DCP found that demonstrating the effects of adult uses on property values on survey blockfronts is very difficult for several reasons, including the lack of sales and lease data, assessment practices, and the small total assessed value of the survey blockfront relative to the community district. In some cases, particularly in study areas with only one adult entertainment establishment, the DCP survey did not yield conclusive evidence of a direct relationship between the adult use and the urban ills affecting the community. This reflects the fact that, in a city as dense and diverse as New York, it is difficult to isolate specific impacts attributable to any particular land use. Other cities that have conducted similar studies have acknowledged this same difficulty. For instance, the Los Angeles City Planning Department concluded that while assessed valuation of properties in areas characterized by adult uses "generally" tended to increase to a lesser degree than similar control areas, "there was insufficient evidence to support the contention that concentrations of sex-related businesses have been the primary cause of these patterns". Adult entertainment businesses were nevertheless perceived by the majority of the Los Angeles respondents as exerting a negative impact on surrounding business and residential properties. Whether or not such negative impacts had actually occurred, or were only perceived to have occurred, could not always be determined by the survey, but the study concluded that "in terms of the attitudes of the respondents towards such businesses, the conclusion must be drawn that the overall effect on surrounding properties is considered to be negative." 65 DCP's survey identified strong concerns about the negative impacts of adult uses similar to those found in the Los Angeles study. Even in those study areas where it could not be readily determined that negative impacts were already being felt, there was a strong body of opinion, especially among residents, that adult entertainment uses were having negative impacts and that a further proliferation of these uses in the community would lead to neighborhood deterioration. The experience of urban planners and real estate appraisers indicates that negative perceptions associated with an area can lead to disinvestment in residential neigh- borhoods and a tendency to shun shopping streets where unsavory activities are occurring, leading to economic decline. The forces that influence real estate value are described as follows: "The market value of real property reflects and is affected by the interplay of basic forces that motivate the activities of human beings. These forces, which produce the variables in real estate market values, may be considered in four major categories: social ideals and standards (emphasis added), economic changes and adjustments, governmental controls and regulation, and physical or environmental changes."67 The attitudinal data in the survey is thus significant even in those instances where the current negative impacts of adult entertainment establishments are difficult to measure. Fear of the potential proliferation of adult uses is a well founded concern. Taken alone, it may not seem significant if someone smokes in a subway car, scribbles graffiti, jumps a subway turnstile, aggressively panhandles or squeegees a car windshield, particularly in a city where there are other pressing problems such as homelessness, violent crime and unemploy- ment. But when these small incidents, and establishments, proliferate and accumulate, they can tear at the urban fabric. Similarly, as the city's experience in the Times Square area indicates, the proliferation of adult uses in an area does have significant and potentially devastating impacts on the character of a community. The City has adopted an aggressive and comprehensive policy of addressing various quality-of-life issues that has begun to yield beneficial results. The problems posed by adult entertainment establishments are among the important quality-of-life issues that affect our neighborhoods and communities. 61 The Appraisal of Real Property. seventh edition, American Institute of Real Estate Appraisers. 66 Overall Findings and Conclusion • Numerous studies in other localities found that adult entertainment uses have negative secondary impacts such as increased crane rates, depreciation of property values, deterioration of community character and the quality of urban life. • There has been a rapid growth in the number of adult entertainment uses in New York City. Between 1984 and 1993, the number of such uses increased from 131 to 177. The number of video/book stores/peep shows almost tripled and there was a 26 percent increase in topless/nude bars. Adult theaters declined by 52 percent. • Adult entertainment is more readily accessible in NYC than it was ten years ago. There are more such establishments in a greater number of communi- ties. Adult videos are produced in greater numbers and at lower costs. They are often available in general interest video stores as well as those devoted exclusively to adult entertainment. Cable television has significantly increased the availability of adult viewing material. Adult material is also available at newsstands and book stores. • Adult entertainment uses tend to concentrate. The number of community districts with seven or more adult uses increased from three to eight over the last ten years. Seventy five percent of the adult uses are located in ten of the city's 59 Community Districts. In Manhattan, adult uses cluster in central locations, such as the Tunes Square area. In the other boroughs, adult uses appear to cluster along major vehicular routes, such as Queens Boulevard and Third Avenue in Brooklyn, that connect outer reaches of the city and suburbs to the central business district. • Studies of adult entertainment uses in areas where they are highly concentrated, such as Times Square and Chelsea, identified a number of significant negative secondary impacts. In the Times Square area property owners, theater operators and other business people overwhelmingly believe that their businesses are adversely affected. An analysis of criminal complaints indicated a substantially higher incidence of criminal activity in the Times Square area where adult uses are most concentrated. In addition, the study found that the rate of increase in assessed property values for study blocks with adult uses grew at a slower rate than control blocks without adult uses. • DCP's survey of areas with less dense concentrations of adult uses found fewer impacts than the study of the Times Square area. However, community leaders expressed concerns that adult uses impact negatively on the community and they strongly fear the potential results of proliferation. • The strongest negative reactions to adult entertainment uses come from residents living near them. 67 • Where respondents indicated that their businesses or neighborhoods had not yet been adversely affected by adult uses, this typically occurred in study areas with isolated adult uses. Moreover, these same respondents typically stated that an increase in such uses would negatively impact them. Community residents fear the consequences of potential proliferation and concentration of adult uses in traditionally neighborhood-oriented shopping areas and view the appearance of one or more of these uses as a deteriora- tion in the quality of urban life. • Most real estate brokers report that adult entertainment establishments are perceived to negatively affect nearby property values and decrease market values. Eighty percent of the brokers responding to the DCP survey indicated that an adult use would have a negative impact on nearby property values. This is consistent with the responses from a similar national survey of real estate appraisers. • Adult use accessory business signs are generally larger, more often illuminated, and graphic (sexually-oriented) compared with the signs of other nearby commercial uses. Community residents view this signage as out of keeping with neighborhood character and are concerned about the exposure of minors to sexual images. Based on these findings, DCP believes it is appropriate to regulate adult entertainment estab- lishments differently from other commercial establishments. The experience of other jurisdic- "A tions, the city's historic experience in Times Square, studies performed by the TSBID and" J the Chelsea Business Survey, and DCP's own survey establish the negative effects of adult entertainment uses. Consideration of the specific nature and extent of regulations that would be appropriate for adult entertainment establishments in New York City was not within the scope of this Study. However, in light of the negative impacts of adult uses in concentration, the following regulatory techniques, which have been used in other jurisdictions, merit consideration in developing adult use regulations: restrictions on the location of adult uses in proximity to residential areas, to houses of worship, to schools and to each other. 68 Appendix A Study Areas Study Areas 1 through 6 are identified in the following listing. A map of each area follows. Study Area 1 Study Area 1 is located within the Chelsea section of Manhattan, Community Districts 4 and 5. It is bounded by 14th and 31st Streets, and Fifth and Seventh Avenues. Study Area 2 Study Area 2 is located within the Upper West Side of Manhattan, Community District 7. It is bounded by West 71st and 78th Streets, and West End and Columbus Avenues. Study Area 3 Study Area 3 is located within the Fordham section of the Bronx, Community District 5. It is bounded by East 184th Street, Valentine Avenue, East 181st Street, and Walton Avenue. Study Area 4 Study Area 4 is located within the Sunset Park neighborhood of Brooklyn, Community District 7. It is bounded by 32nd and 44th Streets, and Fourth and First Avenues, including an area 200 feet to the west of First Avenue between 39th and 41st Streets. Study Area 5 Study Area 5 is located in the Sunnyside neighborhood of Queens, Community District 2. It is bounded by 38th Street, 43rd Avenue, Roosevelt Avenue, 58th Street, Queens Boulevard, 51st Street and 47 Avenue. Study Area 6 Study Area 6 is located within the South Beach neighborhood of Staten Island, Community District 2. It is bounded by Oceanside Avenue, Wenrworth and Hickory Avenues, Foch Avenue, Humbert Street and Cedar Avenue, and Austin Avenue. Study Area 1 within Manhattan CD 4 and CD 5 Adult Use Survey Blockfront<s) Control Blockfront(s) Study Area Adult Entertainment Study Department of City Planning/City of New York Study Area 2 within Manhattan CD 7 Adult Use Survey Blockfront(s) Control Blockfront(s) Study Area ,**»*•. Adult Entertainment Study Department of City Planning / City of New York Study Area 3 within Bronx CD 5 • Adult Use Survey Blockfront(s) Control Blockfront(s) ^•Mi Study Area Adult Entertainment Study Department of City Planning /City of New York Study Area 4 within Brooklyn CD 7 Adult Use Survey Blockfront(s) Control Blockfront(s) Study Area Adult Entertainment Study Department of City Planning / City of New York Study Area 5 within Queens CD 2 • Adult Use Survey Blockfront(s) Control Blockfront(s) Study Area Adult Entertainment Study Department of City Planning ] City of New York Study Area 6 within Staten Island CD 2 *.J Adult Use Survey BlocMront(s) Control Blockfront(s) mmmmm Study Area Adult Entertainment Study Department of City Planning / City of New York Appendix B BRONX DCP Survey of Adult Entertainment Establishments, Fall 1993 Community District 05 05 08 10 11 12 12 12 Name Altagracia Restaurant Ascot Movie Theatre Just Us Bar Ruffles Bar Globe Theater Fools Paradise Mickey & Anthonys Cabaret Pretty Woman Address 1548 University Av 2313 Grand Concourse 156 W 231st St 4026 E Tremont Av 640 Pelham Parkway S 4074 Boston Rd 1769 E Gun Hill Rd 4141 Boston Rd Use Topless Bar Movie Theater Topless Bar Topless Bar Movie Theater Topless Bar Topless Bar Topless Bar BROOKLYN Community District 02 02 06 07 07 07 07 07 07 07 12 14 15 15 15 Name Pandora Books Video XXX Playpen Adult Video Corkscrew Cafe Corrados Club Foxy Den Moms Bar Video XXX Video XXX Warehouse Wild Wild West Video XXX Club Cheetah The Cabaret The Ruby Club XXX Video Address 88 Court St 851 Atlantic Av 463 3rd Av 6120 3rd Av 3915 1st Av 920 3rd Av 4201 2nd Av 952 3rd Av 761 3rd Av 3901 2nd Av 1368 60th St 1496 Flatbush Av 2937 86th St 1 105 Quentin Rd 1 103 Quentin Rd Use Book Store Video Store Video Store Topless Bar Topless Bar Topless Bar Topless Bar Video Store Video Store Topless Bar Video Store Topless Bar Topless Bar Topless Bar Video Store MANHATTAN Community District 01 01 01 01 01 01 01 01 01 01 02 02 02 02 02 02 02 02 02 02 02 03 03 04 04 04 04 04 04 04 04 04 04 04 04 04 04 04 04 04 04 04 05 05 05 05 05 05 05 Name Adult Video Baby Doll Lounge Desire Video Harmony Theatre Kinols Lovestyle Video Pussycat Lounge The Doll House Thunder XXX Video XXX Video Badlands Adult Video Christopher St Books Crazy Fantasy XXX Video Harmony Video Prince Theater XXX Video XXX Video XXX Video XXX Video Sale XXX Video Sale XXX Video Sale All Male Jewel Theatre Chippendales Adonis Theater Adult Video Adult Video Adult Video XXX All-Star Harmony Club Back Date Magazines Billys Topless Club 44 Hollywood Twin Hollywood Twin Adult Video New King Male Cinema Pure Gold Serendib XXX Video & Peep Show World The XXX Video XXX Video XXX-Tasy Video Zideo XX Video 300 Book Store A Carnivalc Adult Entertainment Center Adult Video Adult Video Express Banana Video Capri Theater Circus Cinema Address 21 Ann St 34 White St 68 Reade St 279 Church St 118 Nassau St 376 Canal St 96 Greenwich St 59 Murray St 100 Greenwich St 1 1 Maiden Lane 388 West St 500 Hudson St 331 6th Av 139 Christopher St 329 West St 1 19 Christopher St 220 Varick St 391 West St 377 Canal St 323 Canal St 520 6th Av 100 3rd Av 1 10 1st Av 693 8th Av 763 8th Av 228 8th Av 725 6th Av 161 W 22nd St 304 W 40th St 729 6th Av 689 8th Av 777 8th Av 777 8th Av 356 W 44th St 262 llthAv 755 6th Av 669 8th Av 644 12th Av 603 6th Av 691 8th Av 539 8th Av 300 W 40th St 39 E 30th St 488 8th Av 795 6th Av 216 W 50th St 55 W 38th St 738 8th Av 1606 Broadway Use Video Store Topless Bar Video Store Other Theater Topless Bar Video Store Topless Bar Topless Bar Video Store Video Store Video Store Video Store Video Store Video Store Movie Theater Video Store Video Store Video Store Video Store Video Store Video Store Movie Theater Topless Bar Movie Theater Video Store Video Store Video Store Topless Bar Book Store Topless Bar Topless Bar Movie Theater Video Store Movie Theater Topless Bar Video Store Book Store Video Store Video Store Peep Show Book Store Video Store Book Store Peep Show Video Store Video Store Video Store Movie Theater Movie Theater MANHATTAN (continued) Commoaity District 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 06 O6 06 Name Club 90 Eros Theater Erotica Famous Legz Diamond Flash Dancers Forsyth Books Fun City G & A Books Harem Jocks L & J Books & Videos Laps LesGals Manhattan Video marquis video Medalios Metropole Gogo (Runway 69) Neptune Video New David Nimble Video Peepworld Perm Video Pinks Playpen Roxy Movie Salax in New York Show Center Show Follies Center Show Palace Sir Merchandising Stringfcllow Super Video Texas Gold The Male Box Time Come Video Times Sq Adult Shopping Center Venus Cinema Video Blow Out Video World Center Vogue Video World Famous Paradise XXX Nectar XXX Video 1 13 Video Center 241 Book Inc 250 Bookstore Ail Male Adult Video Flash Dancers Dangerous Curves Address 208 W 29th St 738 8th Av 256 W 42nd St 231 W 54th St 1672 Broadway 598 7th Av 113 W 42nd St 251 W 42nd St 249 W 42nd St 711 7th Av 584 7th Av 204 W 47th St 136 W 42nd St 60 W 39th St 265 W 45th St 552 8th Av 725 7th Av 252 W 42nd St 236 W 54th St 254 W 42nd St 155 W 33rd St 252 W 31st St 204 W 49th St 266 W 43rd St 244 W 42nd St 16 E 16th St 259 W 42nd St 711 7th Av 670 8th Av 672 8th Av 35 E 21st St 264 W 43rd St 20 W 20th St 268 W 43rd St 263 W 42nd St 267 W 42nd St 728 8th Av 247 W 42nd St 210 W 42nd St 296 5th Av 42 W 33rd St 632 8th Av 776 8th Av 113W42ndSt 241 W 42nd St 250 W 42nd St 301 E 14th st 125 3id Av 127 E 47th St Use Topless Bar Movie Theater Video Store Topless Bar Topless Bar Book Store Video Store Book Store Movie Theater Other Theater Peep Show Movie Theater Peep Show Book Store Video Store Topless Bar Topless Bar Video Store Other Theater Video Store Video Store Video Store Other Theater Book Store Movie Theater Topless Bar Peep Show Book Store Book Store Book Store Topless Bar Video Store Topless Bar Video Store Video Store Video Store Movie Theater Video Store Peep Show Video Store Topless Bar Video Store Video Store Video Store Book Store Book Store Video Store Video Store Topless Bar MANHATTAN (continued) Community District 06 06 06 06 06 06 07 07 08 Name House of Dreams Lions Den Love to Love The Doll House XXX Video 24-hour XXX Video Amsterdam Ave Video Les Homines Scores Address 220 E 53rd St 230 E 53id St 220 E 53rd St 307 E 54th St 127 3rd Av 557 3rd Av 287 Amsterdam Av 217 W 80th St 333 E 60th St Use Video Store Video Store Video Store Topless Bar Video Store Video Store Video Store Video Store Topless Bar QUEENS Community District 01 01 01 01 01 02 02 02 02 02 02 02 02 03 03 03 03 03 03 03 03 03 04 04 04 04 05 06 06 06 Name Candy City scape Mermaid Penny Whistle XXX Video Gallaghers Honeys Merry-go-round Naked City Nickels Riverhead Inn Scandals XXX Video Cozy Cabin Earle Theater Fair Theatre Fiddle & Bow Johnny Jays Catch Me If You Can Loveshack Adult Video Polk Theater Topless Bar Wileys Adult Love Boutique Canhe Dee Two Video Pides Place U Treasure Chest Goldfingers Virginias XXX Video Store Address 29-32 Northern Blvd 35-03 38th St 31-08 3Ist St 31-07 23rd Av 36-19 Ditmars Blvd 39-33 Queens Blvd 49-14 Queens Bivd 45-15 Queens Blvd 56-07 Queens Blvd 69-20 Queens Blvd 45-08 Vernon Blvd 32-37 Greenpoint Av 31-17 Queens Blvd 92-03 Astoria Blvd 73-07 37th Rd 90-18 Astoria Blvd 92-07 Roosevelt Av 112-08 Astoria Blvd 92-20 Astoria Blvd 93-09 37th Av 39-02 104th St 95-07 31st Av 89-18 Queens Blvd 92-02 Corona Av 86-10 Roosevelt Av 81-26 Baxter Av 60-07 Metropolitan Av 92-77 Queens Blvd 95-36 Queens Blvd 98-32 Queens Blvd Use Topless Bar Topless Bar Topless Bar Topless Bar Video Store Topless Bar Topless Bar Topless Bar Topless Bar Topless Bar Topless Bar Topless Bar Video Store Topless Bar Movie Theater Movie Theater Topless Bar Topless Bar Video Store Movie Theater Topless Bar Topless Bar Peep Show Topless Bar Video Store Topless Bar Topless Bar Topless Bar Topless Bar Video Store QUEENS (continued) Community District 07 07 07 07 07 08 09 09 09 12 12 12 13 13 Name Candlewood Inn Corsctorium Inc Gallaghers U Goodtime Video Sports Bar Mayfair Theatre Andys Bar Austin Theater Port O Call Dreams Topless Bar Gordons Topless Bar Krystalls Happy Tips Lounge XXX Video Address 41 -57 College Point Blvd 36-35 Main St 26-35 123rd St 150-36 Northern Blvd 135-41 E Northern Blvd 68-25 Fresh Meadow Lane 85-01 Rockaway Blvd 81-07 Lefferts Blvd 93-10 Woodhaven Blvd 90-67 Sutphin Blvd 146-16 Hillside Av 89-25 Merrick Blvd 215-50 Jamaica Av 245-02 S Conduit Av Use Topless Bar Other Topless Bar Video Store Topless Bar Movie Theater Topless Bar Movie Theater Topless Bar Topless Bar Topless Bar Topless Bar Topless Bar Video Store STATEN ISLAND Community District Name 02 02 03 Lipsticks Scarletts Hipps Address Use 3575 Victory Blvd 283 Sand Lane 2945 Arthur Kiil Rd Topless Bar Topless Bar Topless Bar Department of City Planning Joseph B. Rose, Director Andrew S. Lynn, Executive Director William Bernstein, First Deputy Executive Director Strategic Planning Sandy Hornick, Deputy Executive Director Richard Earth, Deputy Director Zoning &. Urban Design Marilyn Mammano, Director Tony Levy, Deputy Director Kenneth J. Bergin. Project Director Louisa Craddock Executive Office Melissa Salten Rothman, former Special Counsel to the Chairman Carol Levine Manhattan Office Robert FUhive, Director Jacquelyn Hams-Strobert Deputy Director Meenakshi Srinivasan Nanette Smith Walter McRae Andrew Smith Albert Depas Queens Office Dennis Ferris, Director Victor L'Eplattenier, Deputy Director Syed S. Ahmed Robert Mazzucco Fred Lee Elizabeth Errico Brooklyn Office Douglas Brooks, Director Alberto Villar, former Deputy Director Purnima Kapur Rosalind Silver Susan Silverman Winston Von Engcl Rosalie Hoffman Bronx Office John Phillips, Director Balaram Rao, Associate Director Kate Browcr Staten Island Office Pablo Vcngoechea, Director Mitchell Korbey. Deputy Director Howard Geyer Counsel's Office William Valletta, former Counsel Patricia Prothro Operations & Procurement Antonio Mendez, Director Gerald Anderson Planning Coordination Anne Pizzicara, Director. Community Based Planning James McConnell, Computer Graphics Graphics Eustace Pilgrim, Acting Director Carol Lubowski Walter Boll Michael Greene Computer Information Services Linda Goldsmith, Director Anne Kelly, Deputy Director Barbara Bardett Richard Steinberg, Director of Geographic Systems Derrick Devore Robert Taszymowicz Wendy Smyth, Director of Planning Support Heidi Berman, Deputy Director of Planning Support Dorothy Bruce Roger Baldwin Ella Liskovich Housing, Economic & Infrastructure Planning Eric Kober, Director Connie Irishman, Deputy Director Richard Satkin Frank Cartolano Woriang Committee