Prepared for:

Planning Committee of

the Los Angeles City Council

Prepared by:

Los Angeles City Planning Department

June, 1977

Summary and Recommendations.

I. Findings

II. Purpose and Scope

III. Methods Currently Used to Regulate Adult Entertainment Businesses

C. Other Regulations of Adult Entertainment in Los Angeles

IV. Methodology and Analysis

A. Changes in Assessed Valuation Between 1970-1976

B. Public Meetings

C. Questionnaires

D. U.S. Census and Related Data

V. Police Department Study of Hollywood

I. No. of Ordinances Regulating Adult Entertainment Uses

II. Ordinances Regulating Adult Entertainment Uses by Dispersal

III. City Council Files Relating to Adult Entertainment

IV. 1970-76 Changes in Assessed Valuation

VI. Reported Crimes and Arrests 1969-75 – Hollywood and City of Los Angeles

A. Assessment Data – 1970 and 1976

B. Form – General Questionnaire

C. Form – Appraiser Questionnaire

E. Data from U.S. Census – 1960 and 1970

Two methods of regulating adult entertainment business via land use regulations have developed in the United States. They are: 1) the concentration of such uses in a single area of the city as in Boston; and 2) the dispersal of such uses, as in the City of Detroit. The Detroit ordinance has been challenged and upheld by the U.S. Supreme Court (Young v. American Mini-Theaters, 96 S. Ct. 771, 1976).

There has been some indication that the concentration of "adult entertainment" uses results in increased crime and greater police enforcement problems. In the City of Los Angeles, the Los Angeles Police Department has found a link between the concentration of such businesses and increased crime in the Hollywood community. (The major portion of a Police Department report on this subject is herein contained.) While several major cities have adopted ordinances similar to the Detroit ordinance, no other major city has, to our knowledge, adopted a Boston-type ordinance.

Testimony received at two public meetings on this subject has revealed that there is serious public concern over the proliferation of adult entertainment businesses - particularly in the Hollywood area. Citizens have testified of being afraid to walk the streets; that some businesses have left the area or have modified their hours of operation; and that they are fearful of children being confronted by unsavory individuals or of being exposed to sexually explicit material. A representative of an adult theater chain testified in support of the manner in which this business was run and in support of the type of clientele which attend the theaters. The Planning Department staff is of the opinion that the degree of deleterious effects of adult entertainment businesses depend largely on the particular type of business and on how any such business is operated.

A mail survey questionnaire conducted by the Planning Department has tended to emphasize general public concern over the proliferation of sex-oriented businesses and has indicated further, that appraisers, realtors and representatives of lending institutions are generally of the opinion that concentration of adult entertainment businesses exerts a negative economic impact on both business and residential properties. They feel that the degree of negative impact depends upon the degree of concentration and on the specific type of adult entertainment business.

The 1970-76 change in the assessed value of residential and commercial properties containing concentrations of adult entertainment businesses was compared with other areas without such concentrations, and with the City as a whole. On the basis of this comparison, it cannot be concluded that properties containing concentrations of adult entertainment businesses have directly influenced the assessed valuations of such properties.

Data and analysis based on the U.S. Census of 1970 and certain trend data from the censuses of 1960 and 1970 as applied to areas of the City containing concentrations of adult entertainment businesses are included in the body of the report and in the Appendix.

The scope of "adult entertainment" ordinances encompasses a variety of adult activities. For example, the Los Angeles Study has considered "adult entertainment" establishments to include adult bookstores and theaters, massage parlors, nude modeling studios, adult motels, arcades, and certain similar businesses. Many other ordinances studied, however, are less broad in their coverage. The Detroit ordinance, for instance, does not regulate massage parlors or adult motels, nor does it provide for the closing of any such businesses by amortization, which would be necessitated by the retroactive application of such an ordinance. Table I on page 11 indicates the ordinances reviewed and the major categories of uses they regulate.

Effect of Ordinances Enacted by Other Jurisdictions: The U.S. Supreme Court in Young v. American Mini-Theaters pointed out, as one of the bases for upholding the Detroit ordinance, that the regulation did not limit the number of "adult entertainment" businesses. Our study has indicated that the practical effect of literal adoption of "Detroit" language without modification in the City of Los Angeles would be to limit the potential locations for such businesses rather severely. Due to the predominance of commercial zoning in "strips" along major and secondary streets, an ordinance preventing "adult entertainment" business from locating within 500 feet of residentially zoned property would, in effect, limit such businesses to those areas of the City where there is commercial zoning of greater than 500 feet in depth. Areas with such commercial frontage would include downtown Los Angeles, a small part of Hollywood, Westwood, and Century City. A few industrial areas would also afford a separation of this distance from residential properties. The limitation of 1,000 feet between establishments (as provided in the Detroit ordinance) would likely be inappropriate in the City of Los Angeles inasmuch as commercial zoning is located in a strip pattern along most of the City's approximate 1,400 miles of major and secondary highways. (It is estimated that approximately 400 miles of such "strip" commercial zoning exists in the City.)

1. If the City Council should find it advisable in light of the findings of this report to recommend the preparation of an ordinance to control adult entertainment businesses, such an ordinance should be of a dispersal type rather than a concentration type. (To build a planning policy basis for such regulation, the Council may also wish the Planning Department to consider the development of appropriate policies for incorporation within the Citywide Plan.)

2. If a dispersal type ordinance is recommended by the City Council the Planning Department is of the opinion that such an ordinance should be designed for specific application in the City of Los Angeles, rather than the direct adoption of the Detroit model. If such a dispersal type ordinance is recommended for enactment locally, it should consider:

1. If the City Council should find it advisable to recommend all of the types of "adult entertainment" businesses included in this study, it should consider whether all such uses should be in the same class and subject to the same regulations.

4. Should the City Council recommend the preparation of a zoning ordinance to regulate adult entertainment businesses, other sections of the Municipal Code relating to the subject, including police permit requirements, should also be amended in order to be consistent with the zoning regulations and to facilitate the administration and enforcement of such regulations.

5. The Planning Department recommends that it be instructed to review existing zoning regulations applying to the C4 zone which currently prohibits "strip tease shows" and that the Zoning Administrator, through interpretation, consider expanding the list of prohibited uses in said zone to include additional adult entertainment uses as herein identified.

6. To assist in the regulation of "adult entertainment" businesses, the City should continue to vigorously enforce all existing provisions of the Municipal Code relating to the subject, including Zoning regulations.

1. A Boston-type ordinance (concentration) to control adult entertainment businesses would not be acceptable nor desirable in the City of Los Angeles.

2. In the event legislation is enacted in the City of Los Angeles there is adequate basis for a Detroit-type ordinance (dispersion) which requires a distance of 1,000 feet between establishments and 500 feet from residential zones.

3. If dispersion is desired in Los Angeles, an ordinance should be designed specifically for the City. (Direct application of the Detroit ordinance would not be desirable or appropriate in Los Angeles and would, in part, tend to result in a concentration of such businesses.)

4. Statistics provided by the Los Angeles Police Department (LAPD) indicate a proportionally larger increase in certain crimes in Hollywood from 1965-75, as compared with the City of Los Angeles as a whole. (Hollywood has the largest concentration of adult entertainment businesses in the City.)

5. Statistics provided by the LAPD indicate that there has been a large increase in adult entertainment enterprises since 1969, particularly in Hollywood. From December 1975 to December 1976, however, there has been a decrease in such establishments.

6. Testimony obtained at two public meetings on the Adult Entertainment study conducted on April 27 and 28, 1977 indicated that:

• Some businesses no longer remain open in the evenings and others have left the area allegedly directly or indirectly due to the establishment of adult entertainment businesses.

7. Responses to questionnaires of the City Planning Department have indicated that:

8. A review of the percentage changes in the assessed value of commercial and residential property between 1970 and 1976 for the study areas containing concentrations of adult entertainment businesses have indicated that:

9. There are various existing laws and regulations (other than zoning) available to effect proper regulation of adult entertainment businesses.

10. There is a high degree of turnover in individual adult entertainment businesses as evidenced on page 51 (Much of this change is probably due to Police enforcement.)

11. The Los Angeles City Council, both on its own initiative and at the urging of numerous citizens groups, has proposed a variety of approaches to limiting the possibly deleterious effects of "adult entertainment" business on neighborhoods.

12. At least 10 cities have adopted ordinances similar to the Detroit dispersal ordinance. Several other cities have enacted other forms of regulations.

13. The Detroit ordinance does not regulate massage parlors. Of the cities with regulations, three have included massage parlors within the purview of their zoning ordinance.

14. None of the cities surveyed call out or regulate adult motels as a part of their "adult entertainment" ordinance.

On January 12, 1977, the Los Angeles City Council instructed this Department, with the assistance of other City agencies, to conduct a Comprehensive Study to determine whether the concentration of so-called "adult entertainment" establishments has a blighting or degrading effect on nearby properties, and/or neighborhoods. The term "adult entertainment" is a general term utilized by the Planning staff to collectively refer to businesses which primarily engage in the sale of material depicting sex or in providing certain sexual services. These would include the following: adult bookstores; X-rated theaters; adult motels with X-rated entertainment; massage parlors; sexual therapy establishments (other than those operated by a licensed psychologist, psychiatrist, etc.); and nude, topless or bottomless bars and restaurants.

During the past few years, there has been increasing concern in Los Angeles over the proliferation of such sexually oriented businesses. The derivation of such concern is varied – religious, moral, sociological and economic. The positions advocated by the public range from a "laissez faire" attitude to outright moral indignation and demand for prohibition.

It should be noted at this time that the topic of newsracks, was not dealt with in this study. The primary reason for not considering newsracks is that, in addition to the absence of a specific Council request for this Department to deal with that. subject, this matter has been and continues to be a topic of litigation in our state courts. Additionally, other public agencies, including the City Attorney, Bureau of Street Maintenance, and Building and Safety, are presently pursuing assignments regarding newsracks, and it is premature to determine whether newsracks could feasibly be studied as "adult entertainment" businesses, from a practical or constitutional standpoint.

In giving the Planning Department this assignment, the City Council essentially called for a fact-finding process to determine whether adult entertainment establishments, where they exist in concentration, cause blight and deterioration. When this question has been posed to the public, there have frequently been anguished retorts to the effect that "the answer is so obvious it is ridiculous to even ask the question," and "what is the City waiting for before it takes action to eliminate these scourges of society?"

On the other side of the spectrum, certain parties who are against the adoption of any regulations regarding "adult entertainment" question the legitimacy of the government's interest in the subject; and they have noted that magazines as "scurrilous" as those sold in adult bookstores are also available in the markets and drugstores where the likelihood of perusal by youngsters is obviously greater than within the confines of an adult bookstore (where no person under 18 years of age is allowed).

In completing this study, the Planning Department has made every effort to ensure a fair and unbiased analysis of "adult entertainment.'' The staff has been instructed to objectively review information of a factual nature; and, although the personal feelings of organized groups and the public at large were forcefully expressed at the two public meetings and in the study questionnaires, the staff has maintained independence from such strong emotions in evaluating the data gathered.

As noted above, the staff has specifically been given the charge to determine whether the concentration of "adult entertainment" establishments has any blighting or degrading effect on the neighborhoods in which they reside. We did not consider the specific nature or content of the materials or services rendered, advertised or promised, for this would have constituted a censor-like role for the Department which was neither desired nor requested by the Council.

This study has focused on the Hollywood community as well as portions of Studio City and North Hollywood as those areas of Los Angeles having the greatest concentration of "adult entertainment" establishments. In order to assess the effect of the concentration of "adult entertainment" establishments in these areas, the staff has analyzed such factors as changes in assessed property values, and reviewed various crime statistics as well as other demographic and related data as available from the U.S. Census. In addition, the Department has reviewed various established approaches to the regulation of "adult entertainment" business, including legislation already enacted by other jurisdictions, and earlier efforts of the City of Los Angeles to regulate such businesses.

By means of two public meetings on the subject conducted by representatives of the City Planning Commission, and through the use of a mail survey questionnaire, the Department has also attempted to provide additional documentation relative to the actual or perceived impact of adult entertainment businesses on the community. Current information on crime statistics has been provided in a separate report prepared by the Los Angeles Police Department, major portions of which are herein included.

A. APPROACHES TO THE REGULATION OF ADULT ENTERTAINMENT BY

Two primary methods of regulating "adult entertainment" businesses via land use regulations have developed in the United States: the concentration approach, as evidenced by the "Combat Zone" in Boston, and the dispersal approach, initially developed by Detroit.

In Boston the "Combat Zone" was officially established by designation of an overlay Adult Entertainment District in November of 1974. The purpose of the overlay district was to create an area in which additional special uses would be permitted in designated Commercial Zones which were not permitted in these zones on a citywide basis.

The "Combat Zone" had existed unofficially for many years in Boston, as the area in question contained a majority of the "adult entertainment" facilities in the City. The ordinance was adopted in response to concern over the spreading of such uses to neighborhoods where they were deemed to be inappropriate. Other considerations included facilitating the policing of such activities and allowing those persons who do not care to be subjected to such businesses to avoid them.

Under the Boston ordinance, adult bookstores and "commercial entertainment businesses" are considered conditional or forbidden uses except in the Business Entertainment District. Existing "adult entertainment" businesses are permitted to continue as non-conforming uses, but, if discontinued for a period of two years, may not be re-established. Establishment of uses in areas of the city other than the "Combat Zone" requires a public hearing before the Zoning Board of Appeals.

The effectiveness and appropriateness of the Boston approach is a subject of controversy. There has been some indication that it has resulted in an increase in crime within the district and that there is an increased vacancy rate in the surrounding office buildings. Due to complaints of serious criminal incidents, law enforcement activities have been increased and a number of liquor licenses in the area have been revoked. Since the "Combat Zone" and most of the surrounding area are part of various redevelopment projects, however, the change in character of the area cannot be attributed solely to the existence of "adult entertainment" businesses.

In Los Angeles, the Police Department has investigated the effect of "adult entertainment" businesses in Hollywood and found a link between the clustering of these establishments and an increase in crime. (See Section V, pages 51 to 55). For this reason, and due to the enforcement problems created by such concentrations, the Police Department is not in favor of a concentration approach in the City of Los Angeles. Public testimony at hearings and through Planning Department questionnaires has indicated an overwhelming public disapproval of this approach for the City of Los Angeles.

The City of Detroit has developed a contrasting approach to the control of "adult entertainment" businesses. The Detroit Ordinance attempts to disperse adult bookstores and theaters by providing that such uses cannot, without special permission, be located within 1,000 feet of any other "regulated uses" or within 500 feet of a residentially zoned area.

This ordinance was an amendment to an existing anti-skid row ordinance which attempted to prevent further neighborhood deterioration by dispersing cabarets, motels, pawnshops, billiard halls, taxi dance halls and similar establishments rather than allowing them to concentrate.

The ordinance was immediately challenged and eventually was upheld by the United States Supreme Court. (Young v. American Mini Theaters 96 Supreme Ct. 771, 1976.)

In response to our request, data supplied by the City of Detroit Police Department indicates that the combination of the dispersal ordinance and a related ordinance prohibiting the promotion of pornography have been an effective tool in controlling adult businesses. To date, 18 adult bookstores and 6 adult theaters have been closed. There are 51 such businesses still in operation in Detroit and 38 pending court cases for various ordinance violations.

The success of the Detroit ordinance has spurred attempts by a number of other cities to adopt similar ordinances. The uses controlled and the types of controls established by these ordinances are summarized in Tables I and II, infra.

While the current study of the effect of "adult entertainment" businesses on neighborhoods in Los Angeles has encompassed all forms of "adult entertainment," the ordinances reviewed and the Detroit Ordinance specifically, are less encompassing in scope. Table I on the following page, lists and reviews a number of ordinances, which regulate various specified adult uses.

* (Numbers have incorporated-where appropriate-uses entitled "physical culture establishments" and "businesses to which persons under 18 could not be admitted.")

The Detroit dispersal ordinance does not regulate massage parlors, nor does it require any existing business to close by amortization. Many of the more recent ordinances include amortization provisions and several of these are currently in varying stages of litigation.

Perhaps the most comprehensive ordinance proposed to date (although not adopted) is that of New York City. The proposed ordinance creates five classes of controlled uses, one of which is entitled "physical culture establishments" and is defined as a general class including any establishment which offers massage or other physical contact by members of the opposite sex. The ordinance would also apply to clubs where the primary activity of such club constitutes one of the five defined classes of adult uses.

The ordinance also provides for a special permit exempting individual adult uses from amortization requirements when the Board of Standards and Appeals makes findings regarding:

1. The effect on adjacent property;

2. Distance to nearest residential district;

3. The concentration that may remain and its effect on the surrounding neighborhood;

4. That retention of the business will not interfere with any program of neighborhood preservation or renewal; or

5. In the case of an adult bookstore or motion picture theater, the Board finds that the harm created by the use is outweighed by its benefits.

Locally, the cities of Bellflower and Norwalk have enacted ordinances requiring adult bookstores and theaters to obtain a conditional use permit. As a part of their study, the City of Bellflower surveyed over 90 cities in Southern California to determine how other cities were controlling adult bookstores. Of the cities which responded to the

Bellflower survey, 12 require a conditional use permit for new bookstores. The conditions for obtaining such a permit generally include dispersal and distance requirements based upon the Detroit model. Bellflower also includes parking requirements and the screening of windows to prevent a view of the interior; it prohibits the use of loudspeakers or sound equipment which can be heard from public or semi-public areas.

Other cities impose such controls as design review, prohibition of obscene material on signs and required identification of the business as "adult." Such controls are a possible alternative or addition to regulation of adult uses by location.

Exterior controls affect the aspects of adult businesses which are most offensive to some citizens. The basis for such controls stems from the recognition of privacy as a

constitutional right and the right to be "left alone" as a part of that right. (See Paris Adult Theatre I v. Slayton, 93 S. Ct. 2628 1973.)

Table II, following, provides a comparison and description of ordinances from various cities which are regulating "adult entertainment" businesses by dispersal.

REGULATION CURRENTLY AVAILABLE

UNDER STATE AND MUNICIPAL LAW

Red light abatement is a mechanism authorized by state law which allows local government to control criminal sexual behavior by controlling the places in which such behavior occurs.

Sec. 11225 of the California Penal Code generally provides that every building or place used for illegal gambling, lewdness, assignation, or prostitution, or where such acts occur, is a nuisance which shall be enjoined, abated, and prevented. There are three basic steps involved in the City's application of the Red Light Abatement Procedures:

Complaints may be filed by citizens, and Sec. 11228 of the Code provides that in Red Light Abatement Actions "evidence of the general reputation of a place is admissible for the purpose of proving the existence of a nuisance."

This method has been used successfully by the City to abate adult entertainment establishments in Hollywood along Western Avenue. Although Red Light Abatement is directed at regulating sites, a Red Light Abatement conviction can affect the ability of an owner or operator to obtain a permit for a similar business at another site (see permit requirements supra). Due to the requirement of a court proceeding, however, this method of control is both time consuming and expensive.

Section 103 of the Los Angeles Municipal Code provides for the regulation and control of a variety of businesses by permits issued by the Board of Police Commissioners. Permittees are subject to such additional requirements as may be imposed by law or by the rules and regulations of the Board.

Those businesses for which the City of Los Angeles requires a police permit and which may also be oriented towards adult entertainment include:

- Arcades (Sec. 103.101)

- Bath and Massage (103.205)

- Cafe Entertainment and Shows (103.102)

- Dancing Academies, Clubs, Halls (103.105, 106, 106.1)

- Motion Picture Shows (103.108)

In some cases, the specific regulations applied to a business, if enforced, preclude adult entertainment activities as a part of, the operation of the business, with revocation of the operating permit an available remedy for violation of the regulation.

The most detailed regulations are applied to cafe entertainment (Sec. 103.102 LAMC) and are summarized as follows:

The above provisions do not apply to a theatrical performance in a theater, concert hall or similar establishment which is primarily devoted to theatrical performances.

The permit may also be revoked for conviction of the permittee, his employee, agent or any person associated with permittee as partner, director, officer, stockholder, associate or manager of:

Massage businesses have traditionally been regulated by licensing. The latest changes in the massage regulations became effective in November of 1976. The application for a permit now requires:

Operating requirements for massage businesses include:

So-called "private" clubs or "consenting adult clubs" which have ostensibly been formed as an alternative to massage parlors had until recently been regulated via the requirement of a social club permit. In June 1977, however, the ordinance establishing such requirement was declared unconstitutional by a Los Angeles Municipal Court due to unreasonable restrictions on the freedom of association. To date, it is unknown whether the City will appeal the ruling or amend the ordinance.

Regulation of adult entertainment businesses has a long history in Los Angeles. In 1915 the "prevalence of sex evils arising out of massage parlors" caused the City Council then to enact Section 27.03 (L.A.M.C.) as "a safeguard against the deterioration of the social life of the community." The ordinance provided:

This provision remained in the Code, in one form or another, until a similar Los Angeles County ordinance was declared invalid in 1972 due to the preemption of the Criminal aspects of sexual activity by the State.

In reaching its conclusion, the court referred to the discussion of the Los Angeles City ordinance in In Re Maki. This 1943 case upheld the constitutional validity of the. ordinance, and, according to the court, established the primary purpose of such ordinance as the limiting of criminal sexual activity.

The late 1960s and early 1970's brought a proliferation of nude bars and sexual scam joints in the Los Angeles area. In 1969, the Cafe Entertainment regulations (Section 103.102 Los Angeles Business Code) was modified to include strict controls on nudity (see discussion infra).

A variety of Council motions were made to control other types of "adult entertainment" such as arcades, massage parlors, and newsracks. Many of these were initiated due to substantial citizen complaints, and some resulted in final ordinances. (See Table III pages 19a to 19d.)

Beginning in 1974, several Council motions were made generally calling for an investigation and preparation of an ordinance regulating adult theaters and bookstores. The advice of the City Attorney was sought, and at the suggestion of that Office, action was delayed pending the Supreme Court decision regarding the Detroit Ordinance. That decision was handed down in June of 1976. On July 13, 1976, a Council motion was introduced by Councilman Wilkinson requesting a study of concentrations of adult entertainment similar to that of Detroit.

Table III provides a generalized summary of the major Council files and actions relating to adult entertainment.

While not part of this study, a recently enacted ordinance controlling on-site sale of alcoholic beverages should be recognized as an attempt to control another adult-type use. Effective March 1, 1977, the Los Angeles Municipal Code was amended to require a conditional use permit for the on-site sale of alcoholic beverages. (Council File No. 70-200, City Plan Case No. 22878). Although aimed at the regulation of anti-social activities in all establishments serving alcoholic beverages, the subject ordinance would, of course, also have a "spillover" effect with regard to those businesses, which have adult entertainment as well as alcoholic beverages.

Generally, the ordinance would, in all cases, require issuance of a conditional use permit for any business selling alcoholic beverages for on-site consumption, rather than the previous practice of permitting them as a matter of right in certain zones. The advantage of the new procedure is that as a prerequisite of approval of an individual application, there must be a public hearing to determine whether the proposed use will have a detrimental effect upon nearby properties and the neighborhood in which it is being proposed. In the long run, the ordinance may prove to be an effective device to regulate uses (dispensing alcoholic beverages) which tend to have a deteriorating effect on an area, some of which may, coincidentally, also be adult entertainment businesses.

In complying with the City Council's instructions, the Department has utilized various available data sources, including property assessment data, U. S. Census data, and obtained other information germane to the subject in an effort to determine, on an empirical basis, the effects (if any) of adult entertainment facilities on surrounding business and other properties. The Department also reviewed sales data of commercial and residential property in areas containing concentrations of adult entertainment businesses and in "control areas" containing no such concentrations. The staff also attempted to secure information on the sales volume of commercial properties, but was unable to obtain this information.

It should be emphasized that, in conducting this study, every effort was made by the Department to preclude the introduction of subjective judgment or other bias, except where the opinions of other individuals or groups were specifically solicited. (Expert opinions were requested from realtors, realty boards, appraisers and lenders through letters and questionnaires. The Department also sent letters to local members of the American Sociological Association requesting their assistance in this study. Their replies were limited in number and not significant in terms of this study.) It was the Department's intent to base any conclusions entirely on relevant data and other factual information which became available during the course of conducting the study.

The procedure employed by the Department in conducting this study involved the following areas of emphasis:

1. The actual "last sales price" of commercial and residential properties in areas containing concentrations of "adult entertainment" businesses were compared with the assessed values of property in such areas. The results were then compared with "control areas" containing no concentration of such businesses. (It was found that the actual sales prices tended to parallel assessed values and that in other cases the comparison was inconclusive. No further discussion of this aspect of the study is contained herein.)
2. In attempt to determine any possible effects of "adult entertainment establishments" on business sales volume, the Department reviewed sales data from a Dun and Bradstreet computer tape file for the years 1970 and 1976. However, this source of data could not be used since it did not contain directly comparable information for the two years indicated. (A substantial change in the number of member firms listed apparently occurred after 1970.) In addition, the Department requested sales information from the City Clerk's Business License File. The City Clerk advised that the generation of the information requested would require 100 man-days of work; consequently their information could not be obtained within the time constraints for completion of the study.

Items 5, 6, and 7, above, are-the subject of Section III of this report, entitled "Methods Currently Used to Regulate Adult Entertainment Business." The Police Department's report is discussed herein as Section V. The Planning Department's analysis of topics 1 through 4 is described in detail, below.

In order to determine if there has been a significant change in assessed property values which may have been influenced by the proliferation of "adult entertainment" businesses, the Department has calculated the change in the assessed value of land and improvements for properties occupied by, and located within, a 1,000 to 1,800 foot radius of known concentrations of adult entertainment businesses. Five such areas were selected for analysis, as described below. The year 1970 was selected as the base period because of the availability of data for that year, and since that point in time corresponds approximately with the beginning of the proliferation of adult entertainment businesses in Los Angeles. The percentage change in the assessed "market" value of land and improvements for commercial and residential properties was calculated for the 1970 base year and for 1976.

Similar calculations covering the same time period were also prepared for "control areas" (containing no concentration of adult entertainment businesses) but which were similar, in terms of zoning and land use, or which were located in geographical proximity to the study area nodes. Four such control areas were selected.

On the basis of field investigations and other available data, the Department determined that there are five different areas within the City suitable for analysis, each containing a relatively high concentration of adult entertainment establishments. As shown in Exhibits "A" and "B" on the following pages, three of these concentrations (or "nodes" of activity) are located in Hollywood; one is in Studio City; and one is in North Hollywood. In each case, the focal point of the area selected for analysis was the intersection of two major streets, with the adult entertainment businesses located along the commercially zoned frontage of one or both of the streets forming the intersection. In four of the five areas selected, residentially zoned and developed properties are situated not farther than one-half block from the commercially-zoned frontage. (One node in Hollywood is entirely surrounded by commercial properties.)

Although Main Street in downtown Los Angeles contains a relatively high concentration of sex-oriented businesses (primarily theaters, arcades and bookstores), this area was not selected for analysis since no residential properties are located in proximity thereto. In addition, Main Street has traditionally contained burlesque theaters, arcades, bars and similar types of establishments, and there has been no significant change in this generalized pattern of land use during the past ten years.

In the Hollywood area, the focal points of concentration are at the following three intersections: Santa Monica Boulevard and Western Avenue (containing 12 such businesses); Hollywood Boulevard and Western Avenue (9 such businesses); and Selmna Avenue and Cahauenga Boulevard (containing 7 such businesses). In Studio City, the focal point is east of the main intersection of Tujunga Avenue and Vineland Avenue (at Eureka Drive) which contains six adult entertainment businesses; and in North Hollywood the focus of concentration is at Lankershim Boulevard and Vineland Avenue (containing 4 such businesses).

In the Hollywood area, property within an approximate 1,000-foot radius of the above named intersections was included for purposes of analysis. In Studio City it was appropriate to include those properties situated within an approximate 1,500 foot radius of the intersection of Eureka Drive; in North Hollywood, property within an approximate 1,500 foot radius of the intersection of Lankershim Boulevard and Vineland Avenue was selected for analysis.

As also shown in Exhibit "A," three separate "control areas" were established in Hollywood, each originating at the intersection of two major streets and also encompassing all property within an approximate 1,000-foot radius of the street intersection. Control areas were established at: Santa Monica Boulevard and Vermont Avenue; Hollywood Boulevard and Highland Avenue; and Hollywood Boulevard and Gower Street. In the San Fernando Valley, Exhibit "B" indicates one control area, centered at the intersection of Lankershim Boulevard and Whipple Street, and encompassing property within a radius of approximately 1,500 feet of that intersection, relates to the two nodes of concentration in Studio City and North Hollywood. None of the control areas has adult entertainment businesses within its boundaries, with the exception of the area surrounding the intersection of Hollywood Boulevard and Gower Street which contains one such business.

Table IV, indicates the percentage change in assessed land and improvement value from July 1970 to July 1976 for the commercial and residential property encompassed by the applicable radius surrounding each of the five nodes of concentration, together with their corresponding control areas. For purposes of comparison, the same data is shown for the entire City and for the Community within which the study areas are located. Since concentrations of adult entertainment businesses could have a particular effect on the value of other business properties in an area a separate tabulation is also shown for only commercially zoned land within each study and control area. (Table IV-A.)

As indicated in Table IV, the 1970-76 percentage change in total assessed "market" valuation of commercially and residentially zoned property (land plus improvements) increased in all three areas in Hollywood containing concentrations of adult entertainment businesses. However, there was some variance in the magnitude of the increase. Changes in the three study area nodes were 2.79, 8.71, and 3.41 percent; compared with increases in the three corresponding control area of 12.53, 1.94, and 5.09 percent, respectively.

The study area node located at Santa Monica Boulevard and Western Avenue increased by 2.79 percent, compared with a substantially greater increase of 12.53 percent in the "control area" associated with that node. Total assessed value within the study area surrounding the intersection of Selma Avenue and Cahuenga Boulevard increased by 3.41 percent while the associated control area increased by the slightly greater amount of 5.09 percent. In direct contrast to this pattern, however, the Hollywood and Western node registered an 8.71 percent increase, while its corresponding control area increased by only 1.94 percent.

Property Within Approximate 1,000 to Percentage Change in Assessed

1,800 Foot Radius of Intersection of No. of Entertainment "Sites" Valuation 1970-76

Santa Monica Boulevard and Western 6 12 -0.22 5.81 2.79

Avenue (Hollywood)

Santa Monica Boulevard and Vermont N.A. 0 -4.84 32.66 12.53

Avenue (Hollywood Control Area)

Hollywood Boulevard and Western 6 9 3.51 13.21 8.71

Avenue (Hollywood)

Hollywood Boulevard and Highland N.A. 0 19.32 -7.83 1.94

Avenue (Hollywood Control Area)

Selma Avenue and Cahuenga 4 7 21.12 -12.54 3.41

Boulevard (Hollywood)

Hollywood Boulevard and Gower N.A. 1 17.76 -8.61 5.09

Street (Hollywood Control Area)

Hollywood Community N.A. 31 21.20 32.72 27.00

City of Los Angeles N.A. N.A. 35.08 38.92 37.15

Tujunga Avenue and Ventura 1 6 67.11 63.10 64.93

Boulevard (Studio City)

Lankershim Boulevard and Vineland 2 4 15.88 9.65 12.61

Avenue (North Hollywood)

Lankershim Boulevard and Whipple N.A. 0 62.28 27.66 42.76

Street (Valley Control Area)

Sherman Oaks-Studio City N.A. 10 69.25 60.44 64.33

Community

North Hollywood Community N.A. 5 28.59 33.15 31.07

City of Los Angeles N.A. 212 35.08 38.92 37.15

Property Within Approximate 1,000 to Percentage Change in Assessed

1,800 Foot Radius of Intersection of No. of Entertainment "Sites" Valuation 1970-76

Santa Monica Boulevard and Western 6 12 -0.47 8.53 3.40

Avenue (Hollywood)

Santa Monica Boulevard and Vermont N.A. 0 -12.53 4.13 -6.38

Avenue (Hollywood Control Area)

Hollywood Boulevard and Western 6 9 -2.52 -0.45 -1.77

Avenue (Hollywood)

Hollywood Boulevard and Highland N.A. 0 25.01 -11.19 4.06

Avenue (Hollywood Control Area)

Selma Avenue and Cahuenga 4 7 21.93 -18.79 0.54

Boulevard (Hollywood)

Hollywood Boulevard and Gower N.A. 0 17.07 -17.22 1.09

Street (Hollywood Control Area)

Hollywood Community N.A. 31 13.43 -1.51 6.70

City of Los Angeles N.A. 212 12.27 13.52 12.93

Tujunga Avenue and Ventura 1 6 19.24 25.83 21.90

Boulevard (Studio City)

Lankershim Boulevard and Vineland 2 4 -0.76 3.91 1.92

Avenue (North Hollywood)

Lankershim Boulevard and Whipple N.A. 0 82.28 -6.35 27.16

Street (Valley Control Area)

Sherman Oaks-Studio City N.A. 10 30.95 13.01 22.02

Community

North Hollywood Community N.A. 5 2.74 7.56 5.21

City of Los Angeles N.A. 212 12.27 13.52 12.93

Sources/Notes – Tables IV and IV-A:

Actual assessment data from which percentage changes in Tables IV and IV-A were derived is shown in Appendix A. Assessment data was obtained from the City's Land Use Planning and Management System (LUPAMS) computer file. Data is as of July 1 for years shown. "Entertainment Site" means adult theatre, arcade, massage parlor, nude dancing establishment or similar use. Number of "entertainment sites" for 1969-70 was obtained from L.A. Police Department; for June 1977 from L.A. Police Department and L.A. City Planning Department. N.A. means not available. Property included within areas described is shown in Exhibits A and B.

The percentage increase in assessed values within the three study areas, as well as the control areas, was considerably less in each case than percentage gains registered by the Hollywood Community or the City as a whole.

In the case of the study area nodes located in the San Fernando Valley, the pattern appears to be somewhat more spurious. The study area node containing adult entertainment businesses located in Studio City (centered east of the intersection of Tujunga Avenue and Ventura Boulevard) increased by 64.93 percent-the largest increase of any of the areas analyzed. In direct contrast, the "adult entertainment node" located at Lankershim Boulevard and Vineland Avenue increased by only 12.61 percent. The one "control area" associated with these two San Fernando Valley nodes increased by 42.76 percent-a substantially greater gain than the North Hollywood node, but 22 percent less than the Studio City node. (Whether the sharp percentage increase shown for the Studio City node was the direct result of a recent reassessment cannot be readily determined.)

The increase in assessed value within the Studio City study area was virtually the same as that of the entire Sherman Oaks-Studio City Community but almost twice the percentage gain for commercial and residential properties in the entire City. The North Hollywood study area increased by a considerably lower percentage than the North Hollywood Community and the City as a whole.

With regard to commercial properties considered separately, Table IV-A reveals that the percentage change in assessed values of land and improvements combined was generally lower in all study areas than in their corresponding control areas. One notable exception, however, is the Santa Monica Boulevard and Western Avenue node which increased by 3.4 percent, while its corresponding control area (Santa Monica and Vermont) decreased by 6.38 percent. In Hollywood the change in assessed values of all study and control areas was less than in the entire Hollywood Community. In the San Fernando Valley the two study areas both increased less than the entire communities within which they are situated.

On the basis of the foregoing, there would seem to be some basis to conclude that the assessed valuation of property within the study areas containing concentrations of adult entertainment businesses have generally tended to increase to a lesser degree than similar areas without such concentrations. However, in the staff's opinion, there would appear to be insufficient evidence to support the contention that concentrations of sex-oriented businesses have been the primary cause of these patterns of change in assessed valuations between 1970 and 1976. However, responses to the Department's mail questionnaires from real estate representatives and appraisers have indicated that in their opinion, concentrations of adult entertainment businesses have, in some cases, had a direct negative impact on property values.

B. PUBLIC MEETINGS

Two public meetings were conducted by representatives of the City Planning Commission in order to receive citizen input regarding the effects, if any, of concentrations of "adult entertainment" establishments on nearby properties and surrounding neighborhoods. Notice of the hearings was published in local newspapers, aired on radio, mailed to owners of commercial and multiple residential property within 500 ft. radius of the study areas and also to persons who had previously responded to the Department's questionnaire.

The first meeting was held in Hollywood on April 27, 1977 at Le Conte Junior High School. The second meeting was conducted in Northridge on April 28, 1977 at Northridge Junior High School. Both meetings were conducted by Planning Commission President Suzette Neiman and Planning Commissioner Daniel Garcia, with Deputy City Attorney Chris Funk also in attendance.

Questionnaires were available at the meetings for the convenience of those wishing to submit their comments in writing.

Attendance was approximately 200 persons at the Hollywood meeting and 300 persons at the Northridge meeting. A combined total of 60 persons addressed the Commission. The following is a summary of the comments received by the Commission. (Tape recordings of the hearings are available for review under City Plan Case Number 26475, in the Planning Commission Office, Room 561-K, Los Angeles, City Hall, telephone (213) 485-5071.)

The most prevalent type of comment at the Hollywood meeting was an expression of fear of walking in areas where "adult entertainment" and related business are concentrated. This concern was expressed both by parents, reluctant to allow their children to be exposed to offensive signs and wares, and by women and elderly persons who feared walking in the areas either in the day or evenings because of the incidence of crime in the area. Specific instances of solicitation and other crimes were recited. Some proprietors testified that they felt their businesses have suffered, due to fear on the part of their customers. Other common testaments concerned:

A representative of the "Pussycat Theaters" organization informed the Commission that a survey taken by the theater operators indicated that the majority of patrons were middle class, that most were registered voters, and that many were married and had college educations. It was stated that a large number of the patrons were found to reside within a few miles of their theaters. The representative of this theater chain expressed concern at the "lumping" of all adult entertainment businesses into one classification. He felt that in terms of aesthetics, clientele, and effect upon the neighborhood, the theaters were not in the same classification as some other types of adult businesses. (The Commission requested the written documentation of the survey; however, it has not been received to date.)

Several speakers at the Northridge meeting expressed concern that the City even felt it needed to request their opinion on such a subject. They felt that their displeasure over the distribution and display of pornographic materials should be obvious. Citizens also indicated how they had been responsible for the closing of certain establishments in the San Fernando Valley by picketing and other means. Some speakers indicated that they were disturbed by the availability and display of obscene material in drug stores and supermarkets.

The following is a summary listing of specific relevant comments from the two meetings:

• It was alleged that organized crime is in the sex service business and that this is a $64 million local business.

In summary, the overwhelming majority of speakers felt that the concentration of "adult entertainment" businesses in their neighborhood was detrimental, either physically by creating blight or economically by decreasing patronage of traditional businesses; or socially by attracting crime. As a result of increased crime, nearby residents have become fearful and have been forced to constrain their customary living habits in the community.

Although the testimony obtained at the public hearings would from a subjective point of view, substantiate the conclusion that "adult entertainment" businesses have a deleterious effect on the surrounding community, the staff is of the opinion that legitimate questions may have been posed by the Pussycat Theater representative regarding a single classification for all "adult entertainment" uses. There would appear to be some basis to support the contention that certain types of such uses are more "objectionable" than others, and that negative effects of a particular type of business might be minimized, depending on how the business is operated and advertised.

In order to determine additional factual data relating to the subject, and to seek the comments and opinions of property owners, businessmen, realtors, real estate boards, real estate appraisers, representatives of banks, Chambers of Commerce, and others, the Department conducted a mail survey. Two questionnaires were developed. One was designed primarily for businessmen and residential property owners and is hereinafter referred to as the General Questionnaire. The second was designed for realtors, real estate appraisers and lenders and is hereinafter referred to as the Appraiser Questionnaire. A copy of the two questionnaires is contained in the Appendix. The completed questionnaires, together with other letters relative to this subject, are on file in Room 510, Los Angeles City Hall.

The General Questionnaire was mailed to all property owners (of other than property in single-family use) within a 500-foot radius of each of the five study areas. The questionnaire was also distributed to various community groups (including local and area Chambers of Commerce) and at the public meeting in Hollywood and in Northridge.

The Appraiser Questionnaire was mailed to all members of the American Institute of Real Estate Appraisers having a Los Angeles City address and to members of the California Association of Realtors whose office is located in the vicinity of the study areas.

Each of the two questionnaires contained spaces for a respondent to check answers to a series of questions relating to the overall effect (if any) of adult entertainment establishments on nearby properties. It should be emphasized that the Department intentionally structured the "objective response" portion of the questionnaires so as to reduce "bias" and to solicit the maximum range of responses to any specific question. For example, a respondent could check "positive," "negative" or "no effect" in response to the question..."What overall effect do you feel that adult entertainment establishments have on a neighborhood?"

In addition to the direct response portion of the questionnaire, information of a more subjective nature was also solicited. For example, after each question, space was provided for a respondent to list any comments or examples which might pertain to a specific question. The beginning of each questionnaire also invited the respondent to write comments in the space provided or on a separate sheet.

Between February 10 and April 30, 1977, a total of approximately 4,000 questionnaires were mailed (with return envelopes provided) or otherwise distributed to businessmen, real estate appraisers, realtors, representatives of banks and savings and loan institutions, the owners of multiple-unit residential property, and others. Of this number, 694 questionnaires were completed and returned to the Department (an overall 17.4 percent rate of return).

In addition, the Department received 197 non-solicited, completed questionnaires from property owners in Studio City. These questionnaires were distributed in a private mailing by a private individual. The subject mailing included a replica of the Department's appraiser questionnaire, together with written material alleging City intent to create an adult entertainment zone in Studio City (copy included as Appendix D-2). According to the subject individual's testimony at the public hearing on April 27, 1977, 11,000 replica questionnaires were mailed. Due to the prejudicial nature of the mailing, these questionnaires are not included in the study. However, the staff did tabulate the subject responses and the tabulation and summary are included in Appendix D-3. All persons responding to the above mailing were sent a memo from the Department, correcting the misinformation (copy included in Appendix D-1).

A tabulation of the responses to the specific questions solicited in the objective portion in each of the two types of questionnaires is presented below. A summary of the comments follows:

GENERAL QUESTIONNAIRE

RESPONSES

1. What overall effect do you feel that adult entertainment establishments have had on a neighborhood:

 

Positive Negative No effect

 

Effect on the business condition

(sales & profits) in the area: 43 (7.4%) 492 (84.7%) 36 (6.2%)

 

Effect on homes (value & appearance)

in the area immediately adjacent to

adult entertainment businesses: 37 (6.9%) 472 (81.2%) 26 (4.5%)

 

Effect on homes (value & appearance)

in the area located 500 feet or more

from adult entertainment businesses: 35 (6.0%) 446 (76.8%) 19 (3.3%)

 

2. Do you believe the establishment of adult entertainment facilities in the vicinity of your business has had any of the following effects? (Please check all those effects which you feel have occurred.)

 

26 (4.5%) no effect 305 (52.5%) decreased property values

 

206 (35.5%) lower rents 13 (2.2%) increased property values

 

275 (47.3%) vacant businesses 16 (2.8%) lower taxes

 

288 (49.6%) tenants moving out 98 (16.9%) higher taxes

 

224 (38.6%) complaints from customers 489 (84.2%) decreased business activity

 

3 ( - ) less crime 8 (1.4%) increased business

 

370 (63.7%) more crime 312 (53.7%) more litter

 

1 ( - ) improved neighborhood 8 (1.4%) other (please specify)

appearance

 

416 (71.6%) deteriorated neighborhood appearance

 

3. (Not applicable for tally.)

4. Have you seriously considered moving your business elsewhere because of nearby concentrations of adult entertainment businesses?

167 (28.7%) Yes 165 (28.4%) No

5. Would you consider expanding in your current location?

6. What types of adult entertainment establishments are there in your area? (Please check appropriate boxes.)

entertainment

How far from your business is the nearest adult entertainment establishment?

(Not tabulated due to limited response.)

Responses to the foregoing questions reveal that adult businesses are perceived by the majority of respondents as exerting a negative impact on surrounding businesses and residential properties.

Whether or not such negative impacts have actually occurred, or only perceived to have occurred, cannot be readily determined, empirically, on the basis of this survey. However, in terms of the attitudes of the respondents toward such businesses, the conclusion must be drawn that the overall effect on surrounding properties is considered to be negative.

Among the adverse effects of adult entertainment establishments cited by businessmen are:

• Difficulty in renting office space.

- Difficulty in keeping desirable tenants.

- Difficulty in recruiting employees.

- Limits hours of operation (evening hours).

• Deters patronage from women and families; general reduced patronage.

Of those businessmen indicating that they have not seriously considered moving because of nearby concentrations of adult entertainment bushiness, the most frequent response was that they had been in the area a great many years, and to establish elsewhere wold be too risky and/or that their investment was too great to move. A few respondents indicated that it is the adult entertainment businesses that should move, not they.

The few businessmen commenting that they would not consider expanding in their current location indicated that their business did not warrant expansion.

Several businessmen indicated that their businesses are relatively unaffected by nearby adult entertainment establishments. Among the businesses cited are a commercial art studio; a building trades contractor; a mail order business; a telephone answering service and a wholesaler.

Among the few positive effects cited by businessmen is the increase in business for certain non-adult entertainment businesses such as tourist-serving businesses (e.g. car rental agencies). "The bad effect it might have is cancelled out by the business it does attract; X-rated theaters attract tourists."

Many respondents commented on the crimes associated with adult entertainment establishments: prostitution, dope, theft, robbery, etc. A high percentage of respondents report they do not feel safe in such areas.

A high percentage of respondents commented on their concern for the effects of adult entertainment environment on the morals and safety of children.

A high percentage of respondents commented on the aesthetics of adult entertainment establishments: garish, sleazy, shabby, blighted, tasteless, etc. Also, many commented on the increased incidence of litter and graffiti.

APPRAISER QUESTIONNAIRE

RESPONSES

1. What effect does the concentration of adult entertainment establishments have on the market value of business property (land, structures, fixtures, etc.) located in the vicinity of such establishments?

2. What effect does the concentration of adult entertainment establishments have on the rental value of business property located in the vicinity of such establishments?

3. What effect does the concentration of adult entertainment establishments have on the rentability/salability of business property located in the vicinity (length of time required to rent or sell property; rate of lessee/buyer turnover; conditions of sale or lease, etc.)?

4. What effect does the concentration of adult entertainment establishments have on the annual income of businesses located in the vicinity of such establishments?

5. Have any business owners or proprietors considered relocating or not expanding their businesses because of the nearby concentration of adult entertainment establishments?

23 (28.4%) yes

4 (4.9%) no

28 (34.6%) not known

6. In recent years, has the commercial vitality (sales, profits, etc.) of any area in the City of Los Angeles been affected in any way by the nearby concentration of adult entertainment establishments?

45 (55.6%) yes

29 (35.8%) no

0 ( - ) not known

7. What effect does the concentration of adult entertainment establishments have on the market value of private residences located within the following distances from such establishments?

Increase Decrease No effect Total

Less than 500 feet 2 (3.8%) 48 (90.6%) 3 (5.7%) 53

500 – 1000 feet 2 (3.6%) 51 (91.1%) 3 (5.4%) 56

More than 1000 feet 1 (3.0%) 29 (87.9%) 3 (9.1%) 33

8. What effect does the concentration of adult entertainment establishments have on the rental value of residential income property located within the following distances from such establishments?

Increase Decrease No effect Total

Less than 500 feet 2 (3.4%) 51 (87.9%) 5 (8.6%) 58

500 – 1000 feet 1 (2.6%) 33 (86.8%) 4 (10.5%) 38

More than 1000 feet 1 (2.8%) 27 (75.0%) 8 (22.2%) 36

9. What effect does the concentration of adult entertainment establishments have on the rentability/salability of residential property located within the following distances from such establishments?

Increase Decrease No effect Total

Less than 500 feet 1 (2.5%) 37 (92.5%) 2 (5.0%) 40

500 – 1000 feet 1 (2.6%) 35 (89.7%) 3 (7.7%) 39

More than 1000 feet 1 (2.8%) 28 (77.8%) 7 (19.1%) 36

10. In regard to the questions set forth above, please describe the effects which you believe the concentration of adult entertainment business has on each of the following:

Property values of surrounding:

Decrease No response No effect Increase

Commercial property 46 (56.8%) 32 (39.5%) 1 2 (2.5%)

Residential property 42 (51.9%) 38 (46.9%) -- 1

General 16 (19.8%) 65 (80.2%) -- --

Rental values of surrounding:

Decrease No response No effect Increase

Commercial property 39 (48.1%) 42 (51.9%) -- --

Residential property 37 (45.7%) 44 (54.3%) -- --

General 12 (14.8%) 69 (85.2%) -- --

Vacancies:

Decrease No response No effect Increase

Number 1 56 (69.1%) 1- 23 (28.4%)

Length 1 72 (88.9%) 2 (2.5%) 6 (7.4%)

Rate of tenant turnover -- 49 (60.5%) 1 31 (38.3%)

Annual business income 24 (29.6%) 53 (65.4%) 2 (2.5%) 2 (2.5%)

Complaints from customers

and residents due to

concentration – Yes 24 (29.6%) 57 (70.4%)

Neighborhood appearance 24 (29.6%) 3 (3.7%)

Crime 1 1 -- 48 (59.3%)

Litter -- 1 1 44 (54.3%)

Other (please specify)

GENERAL QUESTIONNAIRE

REALTOR RESPONSES

Total no. of responses = 32

NOTE: Due to distribution, certain realtors received the General Questionnaire rather than the Appraiser Questionnaire. For analysis purposes, the subject responses were tabulated separately and analyzed together with the responses to the Appraiser Questionnaire.

1. What overall effect do you feel that adult entertainment establishments have had on a neighborhood:

Effect on the business condition

(sales & profits) in the area: -- 31 (97.0%) 1

Effect on homes (value & appearance)

in the area immediately adjacent to

adult entertainment businesses: -- 31 (97.0%) 1

Effect on homes (value & appearance)

in the area located 500 feet or more

from adult entertainment businesses: -- 29 (91.0%) 2

2. Do you believe the establishment of adult entertainment facilities in the vicinity of your business has had any of the following effects? (Please check all those effects which you feel have occurred.)