2005/06/15 Council Agenda Packet

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 mid730'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 tq 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 public 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 Iocate 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 5600,000/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. 26 E VER00125