2005/06/15 Council Agenda Packet

App. B / Adult Businesses rates in other areas. The study drew the following conclu- sions: (1) The effects of sexually oriented businesses on the crime rate index is positive and significant regardless of which control variable is used. (2) Sexually oriented businesses continue to be associ- ated with higher crime rates, even when the control variables' impacts are considered simultaneously. According to the statistical analysis conducted in the Minneapolis study, the addition of one sexually oriented business to a census tract area will cause an increase in the overall crime rate index in that area by 9.15 crimes per thousand people per year even if all other social factors remain unchanged. St. Paul In 1978, the St. Paul Division of Planning and the Minne- sota Crime Control Planning board conducted a study of the relationship between sex -oriented and alcohol -oriented adult entertainment businesses and neighborhood blight. This study looked at crime rates per thousand and median housing values over time as indices of neighborhood deterio- ration. The study combined sex -oriented and alcohol -ori- ented businesses, so its conclusions are only suggestive of the effects of sexually oriented businesses alone. Nevertheless, the study reached the following important conclusions: (1) There is a statistically significant correlation be- tween the location of adult businesses and neighbor- hood deterioration. (2) Adult entertainment establishments tend to locate in somewhat deteriorated areas. (3) Additional relative deterioration of an area follows 384 Minnesota Attorney General's Report / App. B location of an adult business in the area. (4) There is a significantly higher crime rate associated with two such businesses in an area than is associ- ated with only one adult business. (5) Housing values are also significantly lower in an area where there are three adult businesses than they are in an area with only one such business. Similar conclusions about the adverse impact of sexually oriented businesses on the community were reached in stud- ies conducted in cities across the nation. Indianapolis In 1983, the City of Indianapolis researched the relation- ship between sexually oriented businesses and property values. The study was based on data from a national random sample of 20 percent of the American Institute of Real Estate Appraisers. The Study found the following: (1) The appraisers overwhelmingly (80%) felt that an adult bookstore located in a neighborhood would have a negative impact on residential property values within one block of the site. (2) The real estate experts also overwhelmingly (710) believed that there would be a detrimental effect on commercial property values within the same one block radius. (3) This negative impact dissipates as the distance from the site increases, so that most appraisers believed that by three blocks away from an adult bookstore, its impact on property values would be minimal. Indianapolis also sh,clied the relationship between crime rates and sexually oriented bookstores, cabarets, theaters, "185 i