92-25RESOLUTION NO. -99-2
RESOLUTION ESTABLISHING FINDINGS OF FACT THAT
ZONING AND LICENSING REGULATIONS
OF SEXUALLY ORIENTED BUSINESSES ARE
NECESSARY TO MINIMIZE THE SECONDARY ADVERSE
AFFECTS OF SUCH BUSINESSES ON THE CITY OF OTSEGO
Be it resolved by the City Council of the City of Otsego as
follows:
WHEREAS, the Otsego City Attorney has provided background
information on sexually oriented businesses which in summary
fashion is as follows:
1. The United States Supreme Court in its decisions of
Young v American Mini Theaters, 96 S.Ct. 2440 (1976),
and City of Renton v Playtime Theaters, 106 S.Ct. 925
(1986) has held that sexually oriented businesses
engaged in the offering of adult fare characterized by
an emphasis on matter depicting specified sexual
activities or anatomical areas may not be completely
prohibited f rom doing business . within cities by
municipal ordinances.
2. The Supreme Court has further held that municipalities
may regulate sexually oriented businesses with lawfully
enacted content -neutral time, place and manner zoning
and licensing ordinances if said regulations are not
merely a pretext for completely prohibiting within a
City sexually oriented businesses based on the content
of the material being offered.
3. The Supreme Court has concluded that lawful content
neutral time, place and manner regulations may have as
their focus the minimization of the adverse secondary
effects on a community generated by the location and
operation of a sexually oriented business within a
community. Adverse secondary effects are defined as:
a. Increased incidence of crime,
b. Diminution of property values within the community
and especially the values of those properties
adjacent to or in close proximity to the sexually
oriented business, and
C. Increased risk for, the spread of sexually
transmitted diseases. r
Findings of Fact
WHEREAS, based on the legal background referenced herein,
the Otsego City Council hereby makes the following Findings of
Fact in connection with the regulation of sexually oriented
businesses within the City:
1. That the Planning Commission has reviewed and
considered all the material and unsworn testimony
presented before it in connection with the regulation
of sexually oriented businesses within the City and has
passed a resolution documenting their findings that
regulations are required for the City of Otsego for the
protection of health, safety, and general welfare of
the community from the secondary impacts of adult uses.
2. The City Council has reviewed and studied the "Report
of the Attorney General's working group on Regulation
of Sexually Oriented Businesses", dated June 6, 1989
referred to hereafter as the "Report".
3. The Report considered evidence from studies conducted
in Minneapolis and St. Paul and in other cities
throughout the country relating to sexually oriented
businesses.
4. The Attorney General's Report, based upon the above
referenced studies and the testimony presented to it
has concluded "that sexually oriented businesses are
associated with high crime rates and depression of
property values." In addition, the Attorney General's
Work Group"... heard testimony that the character of a
neighborhood can dramatically change when there is a
concentration of sexually oriented businesses adjacent
to residential property."
5. The Report concludes. that sexually oriented businesses
have an impact on the neighborhoods surrounding them
which is distinct from the impact caused by other
commercial uses.
6. The Report concludes that residential neighborhoods
located within close proximity to adult theaters, book
stores, and other sexually oriented businesses
experience increased crime rates (sex-related crimes in
particular), lowered property values, increased
transiency, and decreased stability of ownership.
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7. The Report concludes the adverse impacts which sexually
oriented businesses have on surrounding areas diminish
as the distance from the sexually oriented businesses
increases.
8. The Report concludes that studies of other cities have
shown that among the crimes which tend to increase
either within or in the near vicinity of sexually
oriented businesses are rapes, prostitution, child
molestation, indecent exposure, and other lewd and
lascivious behavior.
9. The Report concludes that the Phoenix, Arizona study
confirmed that the sex crime rate was on the average
500 percent higher in areas with sexually oriented
businesses.
10. The Report concludes that many members of the public
perceive areas within which sexually oriented
businesses are located as less safe than other areas
which do not have such uses.
11. The Report concludes that studies of other cities have
shown that the values of both commercial and
residential properties either are diminished or fail to
appreciate at the rate of other comparable properties
when located in proximity to sexually oriented
businesses.
12. The Report concludes that the Indianapolis, Indiana
study established that professional real estate
appraisers believe that an adult book store would have
a negative effect on the value of both residential and
commercial properties within a one to three block area
of the store.
13. The City Council finds the characteristics of Otsego
are similar to those of the cities cited by the
Reports when considering the effects of sexually
oriented businesses and that the findings concerning
the effects of sexually oriented businesses in other
cities documented in the Reports are relevant to
Otsego's circumstances.
14. The City Council finds, based upon the Report and the
studies cited therein, that sexually oriented
businesses will have adverse secondary effects upon
certain pre-existing land uses within the City of
Otsego and that in reliance on the data and conclusions
made by the studies documented in the Report, it is
not necessary for Otsego to conduct its own independent
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study concerning the effects of sexually oriented
businesses locating within the City.
15. The City of Otsego is currently without any ordinance
regulating the location of sexually oriented businesses
within the City.
16. Pursuant to the United States Supreme Court case of
City of Renton v Playtime Theaters, Inc., 106 S.Ct.
925 (1988), and others, it is clear that a permanent
total prohibition against sexually oriented businesses
would be unconstitutional.
17. The City of Otsego is a predominantly agricultural/
residential community with a relatively small
proportion of its area devoted to commercial and
industrial uses.
18. The City Council finds that the location of sexually
oriented businesses within the City of Otsego will have
a detrimental effect on the City by unnecessarily
lowering property values within the City if said
establishments were located in inappropriate areas.
19. The City Council finds there will be increased crime
within the City from inadequate regulations of
sexually oriented businesses locating and operating
within the City.
20. The City Council finds that content- neutral time, place
and manner restrictions that regulate the zoning and
licensing of sexually oriented businesses are necessary
in the City of Otsego to minimize the adverse secondary
effects which will accompany the location and operation
of said businesses within the City but that said
regulations should be drafted in such a manner as to
allow for reasonable opportunity to open and operate
sexually oriented businesses within the City while
minimizing the secondary adverse effects.
THEREFORE, BE IT RESOLVED THAT the City Council hereby
determines the need to establish the Adult Use Section 31 of the
draft Otsego Zoning Ordinance as it will serve the City's needs
by minimizing the adverse secondary effects of sexually oriented
businesses while providing said businesses a reasonable
opportunity to located and operate within the City.
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Adopted by the City Council of the ity f Otsego, Wright
--
County, Minnesota, this a day of - , 1992.
CITY OF OTSEGO
6 CrL--,V-^ Ar-%-, e?- 3111-�
Norman F. Freske, Mayor
AS -'_T
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roma �' ault, cit; Clerk
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