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As our appraiser interviewee stated, we must evaluate how the presence of <br />these adult entertainment uses slows down or reduces rentals and business activi <br />in the long run. That is, it can be said that pornographic uses may attract other <br />businesses and traffic, which brings revenue to the owners of those businesses in theshort run. But there Is no way to encourage increased value of commercial properties <br />for a variety of businesses in the long run if they are next door to a concentration of <br />pornography establishments. <br />-This; observation Is- confirmed by the direct, ekperience' of Tour' real estate, <br />respondents. Three real estate developers had bought buildings in the Times Square <br />area which housed adult use businesses, and they sought to terminate these leases <br />as quickly -as possible. -.-They all asserted that the'presence-of"Such""stores, had a <br />definitely negative -effect -on office leasing, especially for corporate tenants., A leading <br />real estate agent described the lower rents:and dlfficult�leasing conditions of'an office <br />building located on 42nd'Streets between:Seve7lhmaa d eighth Avenues. He also <br />depicted the lower. rents on Eighth. Avenue as"compared:ghtl A en ues.., <br />comparable buildings, and cited Instances of tenants refusing to renew leases beta ser <br />of the Eighth Avenue location and itc atmosphere. <br />An owner of a smaller residential property on 46th Street said that h <br />believe <br />that the adult use businesses on his corner at Eighth Avenue frighten people awa d <br />He had an apartment on the market recently and a prospective applicant who said he <br />wanted to rent it for his : daughter and friends turned out to be really interested in <br />using it as a massage parlor. The owner recently advertised office .space in his <br />building, but has so far attracted two adult use businesses; while other applicants' <br />have been scarce. pp ants <br />The builder and owner of World Wide Plaza spoke of the'need to oust a <br />theatre one block to the north (which later relocated further porn <br />south.on Qgh Avenue) <br />In order to attract major corporate tenants. While his tenants have long-term leases, <br />and he recognizes that. the development .of his <br />..building was..affected b recent, <br />downturns in the real estate market having little to*do'with pom, he nevertheless <br />expressed concem about the new.spread of pom.uses alo . <br />In fact, <br />though the block from 50th Street to -.51 t -Street north'of Wid Wide Plnazuae;.-r emains <br />vacant because of these larger market trends, he.Is seeking to encourage the lessee-. <br />to rent to local retail uses, rather than to adult. entertainment businesses. Mem <br />of this .development organization stated that they befievad that security costs in this' <br />building were somewhat higher than those of comparable buildings located In <br />other <br />neighborhoods. They also were very concerned about the recent increase in adult <br />uses on Eighth Avenue, which they fear is occurring because of the public agency <br />condemnations along 42nd Street, which may well be forcing the porn merchants <br />northward. <br />All of our respondents said that adjacency of porn establishments has z <br />negative effect on sales and leasing, and that plainly the concentration of <br />establishments affects the overall image of the western edge of Times Square. They <br />describe Eighth Avenue and certain side streets where these stores are located as <br />38 <br />EVER00224 <br />