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Appendbc B <br />'rhe Indianapolis appraiser survey included a question designed to help <br />establish the basis for their opinions regarding the degree to which <br />.i,lult businesses affect property values in general. Almost 90 percent <br />of those responding to the survey provided responses to this question. <br />In the national survey, 29 percent saw little or no effect on <br />surrounding property values resulting ,from adult businesses. They <br />listed as a basis their professional experience; the observation that <br />this use generally occurs in already deteriorated neighborhoods; and <br />the feeling that the effect of only one adult business would be <br />inconsequential. <br />one half of the respondents projected a substantial to moderate <br />negative impact on surrounding property values. Their responses were <br />based on the feeling: that adult businesses attract "undesirables" to <br />the neighborhood; that adult businesses create a bad image of the <br />area; and that this type of use offends the prevailing community <br />attitudes thus discouraging homebuyers and customers from frequenting <br />the area. Tventy percent of the respondents indicated that the <br />potential impact on surrounding property values was contingent on <br />other variables. Many felt the impact would be contingent on the <br />existing property zalues in the area and the subjective val•-^ of area <br />residents. Some felt that development standards controlling facade <br />and signage would determine the degree of impact, while others <br />indicated that the nature of the existing commercial area and its <br />buffering capacity as the most important factor influencing the impact <br />on surrounding property values. <br />The MSA survey results closely paralleled those of the national <br />survey. Two additional responses are noteworthy. First, some <br />respondents indicating a substantial to moderate negative impact based <br />their opinion on the feeling that such uses precipitate decline and <br />discourage improvements in the area. Second, some respondents felt <br />that the impact on property values was contingent on whether or .not it <br />was likely that other adult businesses would be attracted to the area. <br />B. LOS ANGELES, CALIFORNIA <br />In June, .1977 the Department of City Planning of the City of Los <br />Angeles published a report entitled study of the Effects of the <br />Concentration of Adult Entertainment Establishments in the City of Los <br />Angeles. The study includes an evaluation of the impact of adult <br />businesses on both crime rates and property values. <br />Incidence of Crime <br />Methodology. The City's study evaluated the impact of adult <br />businesses on criminal activity by comparing crime rates in Hollywood <br />to crime rates for the city. Hollywood was selected as a study area <br />because of its high concentration of adult businesses. The study <br />focused on the years 1969 to 1975, during which time adult businesses <br />in Hollywood proliferated from 11 to 88 establishments. <br />127 <br />E V ER00309 <br />