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12/13/94 15:45 FAX 812 881 9749 CITY-RICHFIELD y-►-+ CITY ATTY 1 003 i There have been a series of studies undertaken across the country of the secondary effects of adult businesses. Some of these studies are outlined herein. • The Planning Department of the Gly of Phoenix,Arizona published a study report in May 1979 ended "Relation of Criminal Activity and Adult Business'. The study compared three areas containing adult businesses with three comparable control areas. The study conclusions were that the adult business areas had crime rates of 143%of the conhvl group for property crimes, 104%far violent crimes and 606% for sex crimes. It should also be noted that in one.of . the study areas the sex crime rate was 1135% of the control group area average. In that same study area,89%tithe reported indecent exposure . crimes were committed at the addresses of adult businesses. The Division of Planning in the City of Indianapolis, Indiana undertook a dual planning study in 1983. Six areas containing adult businesses were compared with six comparable control areas relative to the factors of crime incidence. In the second part of the study,the City collaborated with Indiana University in a national survey of real estate appraisers to develop a"best professional opinion' as to the.effect of adult entertainment businesses on surrounding real estate values. The findings were as follows: - The average major Dune rate (Le,crimes per 10,000 population). :..-_ in the 1PD District was 748.55,the Control Area 886.34, and the Study Area 1090.51. Major crimes occurred in areas of the study that contained at least one adult entertainment establishment at a rate that was 23% higher than the six similar areas studies not • having such businesses and 46% higher than the Police District at large. - Although it was impossible to obtain a discrete rate for sex-related rimes a the poke district level,it was possible to compare rates • between the Control Areas and the Study areas. The average Sex-related crime rate in the Control Areas over the five year period was 25.2,while that rate for the Study Areas was 46.4. - If the ratio of sex-related crimes was the same as that established for major Mmes between the Control Area and the Study Area, however, we would expect a sex-related crime rate of 32.3. The actual rate of 46.4 is 77% higher Than that of the Control Areas rather than the 23%that would be expected and indicates the presence of abnormal influences in the Study Areas. - Close examination of crime st tics within the Study Areas Indicate a direct correlation between crime and the residential character of the neighborhood. Crime frequencies were higher in residential areas of the study than in its commercial areas. 3