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1L/1J/204 13:4r MA 012 titil 8748 CITY-RICHFIELD +-►-► CITY ATTY 0005 <br /> • <br /> An April 1.978 study by the St Paul Division of Planning and the Minnesota • <br /> Crime Control Planning Board entitled "Neighborhood Deterioration and the <br /> location of Adult Entertainment Establishments" looked at the relationship <br /> between alcohol serving adult entertainment and neighborhood blight Adult <br /> uses wdhout alcohol were not part of this study. The Summary, in party is as • <br /> follows: <br /> — There is a statistically significant relationship between the number <br /> of adult entertainment establishments (alcohol—serving and <br /> sexually oriented combined) located in an area and the <br /> deterioration of that area as reflected in housing values and crime <br /> rates. <br /> — Sexually oriented establishments tend to locate in areas which <br /> already reflect the effects of other adult entertainment <br /> establishments, making it Moult without further analysis to <br /> • ascertain the unique contabu ion which sexually oriented <br /> establishments have on neighborhood deterioration. <br /> — While adult entertainment establishments tend to locate in areas of <br /> relative deterioration,There is dear indication that these <br /> establishments contribute heavily to the further deterioration of <br /> • these same areas. Most significantly,the effect of adult <br /> entertainment establishments on neighborhood deterioration was <br /> found to be a threshold phenomenon;neighborhood deterioration <br /> is significantly greater in those areas with more than two adult <br /> entertainment establishments of any type (alcohol—serving or <br /> sexually oriented). <br /> • <br /> — There is an externality or social cost, as reflected in neighborhood <br /> deterioration, imposed on a neighborhood by the location of an <br /> adult entertainment establishment in that area. These costs are <br /> uttimately reflected-in-higher taxes for all St Paul citizens in order <br /> to support the delivery of more police services, and in a relatively <br /> • <br /> depressed and eroding tax base in the affected areas, leading to <br /> even higher citywide tax rates. <br /> — Those areas with more than two adult entertainment establishment <br /> have sharply higher crime rates and sharply Tower housing values <br /> than those with fewer than two such establishments. <br /> The June 1989 "Report of the Attorney General's Working Group on he <br /> Regulation of Sexually Oriented Businesses" also reported on the studies done . <br /> by Minneapolis and Los Angeles. These are set out in the Report on pages 6 <br /> and 10. <br /> 5 <br />