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12/13/94 15:47 FAX 812 861. 9749 CITY-RICHFIELD 14-+ CITY ITTT RiOO8 • 011 Minneapolis: in 1980. on direction form the Minneapolis City Council.the Minneapolis Crime• Prevention Center examined the eft of sex-oriented and alcohol-oriented adult entertainment upon property values and crime rates. This study used both simple regression and multiple regression statistical analysis to evaluate whether there was a causal relationship between these businesses and neighborhood blight • The study concluded that there was a close association between sexually oriented businesses, high crime rates and low housing values in a neighborhood. When the data was reexamined using control variables such as the mean income in the neighborhood to determine whether the association proved causation,it was unclear whether sexually oriented businesses caused a decline in property values. The Minneapolis study concluded that sexually oriented businesses concentrate in areas which are relatively deteriorated and, at most, . they may weakly contribute to the continued depression of property values.. However,the Minneapolis study found a much stronger relationship between sexually oriented businesses and crime rate. A crime index was constructed including robbery, burglary. rape and assault. The rate of crime in areas near _ _i• sexually oriented businesses was then compared to crime rates in other areas. The study drew the following conclusions: 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 associated 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. • Los Angeles: _ • A study released by the Los Angeles Police Department in 1984 supports a relationship between sexually oriented businesses and rising crone rates. This study is less definitive, since it was not designed to use similar areas as a . . control. The study indicated that there were 11 sexually oriented adultIP establishment in the Hollywood, California, area in 1969. By 1975,the number had grown to 88. During the same time period, reported incidents of "Part[- crime (i.e., homicide, rape, aggravated assault, robbery, burglary, larceny and 6