Item L3
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: Mav 15. 2002
Division:
Growth Management
Bulk Item: Yes
No -L.
Department: Planning
AGENDA ITEM WORDING:
Briefing by the Growth Management Division on the report "Recommendations for the
Regulation of Adult Oriented Businesses".
ITEM BACKGROUND:
At its regular meeting in November 2001, the Board requested that the Planning Department
undertake a study of the adult businesses in the unincorporated area of the eounty. The report
includes the number and nature of adult businesses, an analysis of the secondary effects caused
by the businesses, and to recommend possible locations, land use districts, and other regulations.
PREVIOUS REVELANT BOCC ACTION:
Resolution 464-2001 directed the Planning Department to prepare a report for the Board's use in
determining the need for adult business land use regulation, and if needed, the scope of such
regulations.
CONTRACT/AGREEMENT CHANGES:
N/A.
STAFF RECOMMENDATIONS:
Provide policy direction to Staff based on the findings and recommendations of the report.
TOTAL COST:
N/A
BUDGETED: Yes N/ A No
COST TO COUNTY: N/A
REVENUE PRODUCING: Yes N/A No
AMOUNT PER MONTH N/A Year
DOCUMENTATION:
Included ~
CP
APPROVED BY: County Atty -L OMB/Purchasing N/ A
DIVISION DIRECTOR APPROVAL:
Not Required_
AGENDA ITEM #
~
DISPOSITION:
Revised 2/27/01
Recommendations for the
Regulation of Adult Oriented Businesses
in Monroe County, Florida
Prepared by the Monroe County Planning Department
Presented to the Board of County Commissioners
May 15,2002
Recommendations for the Regulation of
Adult Oriented Businesses in Monroe County, Florida
Purpose
This study was undertaken at the request of the Board of eounty Commissioners during their regular
meeting on November 20,2001 because of a concern that adult businesses were causing deleterious
secondary effects within the unincorporated area of Monroe County. The Planning Department was
asked to prepare a report for use by the Commissioners in determining the need for land use regulation
of adult businesses and the scope of such regulations if any are needed. The requested report was to
include the following data:
a) the location of the existing and proposed adult businesses in unincorporated Monroe
County;
b) the trade area of adult businesses;
c) an evaluation of the impacts of adult businesses (including the incidence of crime in the
vicinity and the effect on commercial and residential property); and
d) recommended land use regulations from the Planning Department to minimize the
potential harmful secondary effects of adult businesses.
Not all adult oriented businesses are the same, and typically those which offer live entertainment or
motion pictures have a much higher impact on the surrounding neighborhood than those which are
considered 'adult bookstores'. For the purposes of this report, The type of adult establishment will
only be considered for the sake of comparison, but otherwise all adult establishments shall be
considered the same.
For the purpose of this study, adult business is defmed as: "a commercial establishment which, as its
principal business purpose, offers for rental or sale sexually explicit material or features sexually
explicit or nude entertainment."
Scope of the Study
While the study and regulation of adult businesses can be very broad, ranging from an evaluation of
the public health impact to business licensing procedures. However, this report is limited in scope to
an analysis of the level of reported crime and change in property values surrounding existing adult
uses. The fmdings of these analyses are the basis for the staff recommendations at the conclusion of
this report for consideration by the Board of eounty Commissioners.
The contents of the report are limited to the following: the methodology used in data analysis; an
overview of the legal and regulatory framework regarding adult oriented business; an analysis of
reported crime statistics and change in property values surrounding existing adult uses; a summary of
the findings; regulatory options; and Planning Department recommendations. The appendix contains
a description of the existing adult oriented businesses in unincorporated Monroe eounty.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 1 of 10
Methodology
Data for this report was gathered from the Monroe eounty Sheriff's Office and the Monroe County
Property Appraiser. The Sheriff's office provided reported crime statistics at three different
geographic levels: individual sites, crime reports on streets surrounding individual sites, and summary
data on the entire communities in which individual sites are located (i.e. Key Largo and Marathon).
GIS data was used to identify developed commercial and residential properties within 1,000 feet of
individual adult business sites. These properties were then researched on the Property Appraiser's
2001 tax roll to determine the type of commercial and residential use and the change in property
values from 1994 to 2001. Countywide data on property values change was obtained from Monroe
County: Todav and Tomorrow, distributed by the Property Appraiser's office. In addition to the
above data sources, the recommendations of this report are informed by numerous reports, studies and
regulations from other cities and counties across the United States and Florida. These references are
listed at the end of the report.
Legal and Regulatory Framework
The regulation of adult uses has been a challenge that has faced communities, local governments,
business owners, and all levels of the court system for the past 30 years. Although a significant
amount of legal precedence has been set at the federal level, regulation of adult oriented businesses
continues to be a challenge for local governments and communities. Adult oriented businesses pose a
complicated dilemma for local governments because regulations placed on adult uses may not be
based on the content of material or services sold at adult businesses. Free speech and expression are
protected by the First Amendment of the eonstitution of the United States. However, in the case
Young v. American Mini Theatres (427 U.S. 50 (1976)) the Court upheld a zoning strategy which
adopted distancing requirements for adult businesses, finding that it the ordinance did not regulate free
speech but rather only controlled the 'secondary effects' of 'adult' expression on neighborhoods.
Based on this precedent, regulations must be based on the 'secondary effects' generated by the
establishment. The deleterious 'secondary effects' that regulations seek to prevent may include but
are not limited to: a higher rate of crime in the community surrounding adult uses, a negative impact
on property values, and an adverse effect on community character. Regulations that are based on
preventing 'secondary effects' were also upheld in the Supreme Court's City of Renton v. Playtime
Theatres, Inc. (475 U.S. 41 (1986)) decision. The Court held that the Renton ordinance "did not
restrict First Amendment rights, as the purposes of the ordinance were unrelated to the suppression of
speech and the restrictions were the least intrusive means by which to further the government's
interests" (paul, Linz, and Shafer; 2001). Additionally, the court declared in the Renton decision that
a municipality may base its ordinance upon studies and evidence generated by other cities rather than
conduct its own study to determine 'secondary impacts'.
Other land use regulations that have been enacted to limit the secondary effects of adult businesses
include limiting the hours of operation (7250 Corp. v. Board of County eommissioners 799 P .2d 917
(Colo. 1990)) and limitations on signage (SDJ, Inc. v. eity of Houston 636 F. Supp.1359, 1369 (S.D.
Tex. 1986)). The court found that both of these regulations were not meant to restrict the expression
of the adult establishments but rather were "to prevent the deterioration and decline of the surrounding
properties" (Hansen, 2001).
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 2 of 10
Ordinances that regulate adult oriented business rely heavily on specific definitions of the businesses
to be regulated and definitions of 'specified anatomical areas' and 'specified sexual activities'.
Furthermore, a specific definition of what constitutes 'sexually oriented material' must accompany the
regulations in order to define the scope of the materials sold by businesses to be regulated.
Currently, Monroe eounty has in place regulations to prohibit the public display of materials depicting
hwnan nudity and sexual organs (Sec. 13.2) and Article VII of Section 13 dealing with obscene
publications. Under Sec. 13-2 it is unlawful to display in open public view any magazine, periodical
pamphlet, etc. which depicts human nudity and sexual organs. Section 13-132 prohibits any person
from selling or possessing with the intent to sell any obscene material, or hire another person to sell
obscene material. Article VII also defines the penalties for violation of the statue, which include
prosecution as a misdemeanor and by County code enforcement. Article VII, 'Obscene Publications",
was adopted in 1994.
Trade Area of the Existing Uses
The purpose of determining the trade area of adult businesses is to determine if an establishment is
regional in scope or draws customers mainly from the immediate neighborhood. A study of three
adult establishments in Austin, Texas found that nearly half of the patrons came from outside of the
city, indicating that adult businesses may be regional in scope and should be regulated as such.
Adult oriented uses are located in the incorporated cities within Monroe County, including
Islamorada, Marathon, and Key West. Assumptions about the trade area of the adult businesses will
consider adult businesses within the incorporated areas because these stores impact the trade area of
the store in the unincorporated area
The Adult Video Superstore is located at mile marker 102. The closest comparable store is The
Lion's Den in Marathon (mile marker 48.5). Both of these stores are considered 'adult book stores'
and do not offer live entertainment. The halfway point between these two stores is approximately
mile marker 76, Lower Matecumbe Key. The 18-mile stretch begins at mile marker 106.5, it is
assumed that customers do not travel this route but would rather travel north toward Homestead and
Miami. Residents above the 18-mile stretch turnoff along route 905 would be considered in the trade
area of Adult Video Superstore as it is closer then going up eard Sound Road to the mainland area.
Therefore it is assumed that the trade are of the Adult Video Outlet, the only adult business in the
unincorporated county, is Lower Matecumbe up to Ocean Reef, and the occasional tourist who
decides to stop while passing through the area.
Evaluation of Impacts: Reported Incidence of Crime
One of the major reasons why local governments choose to regulate adult oriented businesses is to
protect the community from the negative impacts the business may have on the surrounding
neighborhood. A higher number of reported crimes in a neighborhood where adult oriented
businesses are located has been used as an indicator in many studies to show the need for greater
regulation. The study "Adult Entertainment Businesses in Indianapolis, an Analysis" found that major
crime rate in the areas with adult uses was 23 percent higher than in the control areas which did not
have adult establishments. The study also found that 'sex-related crimes' in the study areas was
approximately 80 percent higher than in the control areas. However, other studies such as the one
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 3 of! 0
prepared in Denver and in New York City, have shown that incidences of reported crimes in areas
with adult oriented businesses are roughly the same as in areas without such businesses.
1bree levels of crime statistics were gathered for the purposes of this report. Reported crime at the
specific site of the adult oriented business, reported crimes in the vicinity of the adult uses, and
summary statistics at the community level (i.e. all of Key Largo and Marathon). Data was requested
from the Monroe County Sheriff's Office based on three sites: Key Largo Adult Bookstore (in Key
Largo), The Lion's Den (an adult bookstore), and The Mermaid Club (an adult cabaret). While this
report's recommendations are limited to the unincorporated area of the County, the sites in Marathon
were included because no data was available from the Adult Video Outlet (the other adult bookstore in
Key Largo) because it has only recently opened, and Marathon incorporated recently.
In 2001 the two adult bookstores, Key Largo Adult Bookstore and The Lion's Den reported only a
minor amount of crime incidents. At the Lion's Den, one of each of the following offenses was
reported for all of 2001: a traffic offense, a non-family disturbance, vehicle burglary, and a vehicle
theft. The reported crimes at the Lions Den constitute 5.3 percent of those four types of crime in
Marathon. The Key Largo Adult Bookstore only reported one offense, a burglary in 200 1 (out of 47
total business burglaries in Key Largo). The Mermaid Club, an adult cabaret, had a longer list of
reported incidents as shown in Table 1.
Reports at The Reports in Percent of
Activity Mermaid Club Marathon total reports
Theft 3 247 1.2
Battery 4 nla nla
Disturbance 5 228 2.2
Disorderly Conduct 1 112 0.9
Disorderly Intoxication 1 39 2.6
Trespassing 3 172 1.7
Robbery 1 5 20.0
Narcotics Violation 1 61 1.6
Criminal Mischief 1 124 0.8
Injury 1 nla nla
Suspicious Activity or Person 4 843 0.5
Fraud 1 7 14.3
Watch Order 1 270 0.4
Table 1. Summary of reported crime at the Mennaid Club as compared to all of Marathon in 2001.
As shown in Table 1, the Mermaid Club has considerably more reported criminal activity, and more
serious in nature, than the other two adult oriented businesses studied. The difference may be partially
attributable to the nature of the Mermaid Club, it is an adult cabaret (a.k.a. a strip club) and at the same
address is a liquor store with a separate entrance than the club. The crime statistics do not delineate
which reports were from the club and which were from the attached liquor store. However, both the
adult cabaret and the liquor store have recently ceased operations.
Crime data reported in 2001 in the neighborhood surrounding the adult establishments was also
obtained. The only significant crimes reported around Key Largo Adult Bookstore in 2001 were nine
(9) auto thefts on Valencia Rd., close to John Pennecamp State Park. Contrary to the site-specific
crime data, there were fewer reported incidents surrounding the Mermaid elub than in the vicinity of
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 4 of! 0
The Lions Den in Marathon. However, the 287 incidents reported in the neighborhood around The
Lion's Den account for less than three percent (3%) of the total reported incidents in Marathon.
Evaluation of Impacts:
Property Values Surrounding Adult Businesses
Another concern of government resulting in increased regulation of adult oriented businesses is the
impact on both commercial and residential property values in the area surrounding adult oriented
businesses. A number of studies on adult oriented businesses contain surveys and analyses regarding
their impact on property values, both commercial and residential. A survey of professional property
appraisers in Rochester, New York conducted by the American Planning Association in 2000 had
interesting results. The survey found that the Rochester property appraisers believed that bars with
nude servers or live entertainers have the greatest potential negative impact on property values and
that the adult uses would have significantly more negative impact on residential property then on
commercial property. Additionally, the property appraisers expressed the opinion that the impact of
adult uses decreases with distance; potential negative impacts stop between 1,000 and 1,500 feet. A
survey of appraisers done as a part of the Indianapolis study done in 1984 yielded similar results, as
did responses from real estate brokers conducted as a part of the study conducted by the New York
City planning department.
Instead of a survey approach, this report looks at historical property values from 1994 to 2001 as
reported by the Monroe eounty Property Appraiser's records. Data was collected from developed
commercial and residential properties within a 1,000 foot radius of two adult bookstores, Key Largo
Adult Bookstore and The Lion's Den. The Lion's Den was used as a proxy for the Adult Video
Outlet because it recently opened and the impact on surrounding property values could not be
determined. Table 2 contains the highest, lowest, and average percent change in property values from
1994 to 2001 for commercial and residential properties within 1,000 feet of the studied adult business
and the average change in residential and commercial properties throughout the entire county.
Monroe County
Average
-16%
46%
Kev Largo Adult Books
High Low Average
144% 30% 70%
The Lion's Den
High Low Average
116% -6% 39%
Use
Commercial
Residential:
Single Family
Mobile Home
Multi-family
Table 2. Swnmary of property value change.
1266%
130%
35%
13%
71%
20%
230%
84%
27%
162% -3% 45%
97% 12% 33%
27% -3% 23%
As can be seen from the above table, property values surrounding adult businesses have steadily
increased over time in most cases. When negative property values were reported (only three
properties total) they were the exception and values had only recently dropped within the past two
years. While some properties tipped the scales in terms of property value appreciation, the values of
both commercial and residential properties has continued to increase. It is not conclusive whether or
not the negative property values have been a result of the establishment of the adult oriented
businesses in 1994 or other causes such as abandonment or neglect. Additionally, the change in
property value exceeds or is comparable to the entire county average.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 5 of! 0
Summary of Findings
eurrently there is only one adult oriented business in unincorporated Monroe County, The Adult
Video Outlet located at mile marker 102.1. The Adult Video Outlet sells adult movies, lingerie, and
what are advertised as 'love toys'. A second adult bookstore, Key Largo Adult Books recently (as of
March 2002) ceased operations, but is included in this report for purposes of analysis. Because only
one adult oriented business exists in the Upper Keys, and the closest store that sells similar goods and
services is in Marathon, the trade area of the Adult Video Outlet is most of the Upper Keys.
Various levels of reported crime statistics were analyzed, including site specific data, data on the
surrounding neighborhood, and summary statistics of the larger regional area. Data shows that crime
levels are not significantly higher around adult businesses than in the larger regional area as a whole.
One establishment in Marathon, the Mermaid Club, did have significant crime levels, however, the
data did not differentiate between the adult cabaret or the attached liquor store and bar.
The change in commercial and residential property values of developed parcels within 1,000 feet from
1994 to 2001 was analyzed to determine if the adult oriented businesses significantly impacted
property appreciation. From 1994 to 2001 commercial properties surrounding the adult oriented
. business in the Upper Keys increased an average of 70% and surrounding the adult oriented business
in Marathon increased 39%. Residential properties followed a similar trend: around the Upper Keys
site property values increased 114% and in Marathon property values increased 34% (this includes
single family, multi-family, and mobile home residences). The County percentage change average
was +46% for residential properties, and -16% for commercial properties.
Regulatory Options
While direct impacts on crime and property values were not demonstrated based on this research, the
potential for future problems is evident from studies in other areas. Also, there is a real potential of
other adult oriented businesses to locate in the County since there is only one available between Key
Largo and Key West (in the unincorporated area).
Many options exist for the regulation of adult oriented businesses. The first option, which would not
require the passage of an ordinance change in the law, would be to enforce Article VII of Section 13,
which prohibits the sale of obscene materials. However, it is to be determined if adult oriented
businesses would be exempt from this section because they have been considered protected speech
under the First Amendment.
Another option is to limit the land use districts in which an adult oriented business may be located.
Many communities have limited adult oriented businesses to zoning districts that are already
incompatible with residential areas, such as industrial or heavy commercial districts. In Monroe
eounty the Urban Commercial districts tend to be neighborhood shopping centers and the Suburban
Commercial district runs along either side of US 1. Both of these districts tend to be within the
vicinity of, if not directly adjacent to, a large number of the residential areas of the Keys. Restricting
adult businesses to these zones would not be appropriate. However, the Industrial land use district is
distanced enough from other sensitive uses (schools, residential areas etc.) that it would be acceptable
to restrict adult uses to this zone.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 6 ofl 0
Additionally, a separation of 1,000 feet from uses such as schools, parks, residential areas, and places
of worship are typically required for the siting of adult oriented businesses. Because of the unique
geography of Monroe County and the delineation of zoning districts, using both a land use district and
separation requirement would prevent the siting of any adult oriented businesses within the
unincorporated county boundaries which may violate the First Amendment Right to free expression.
Separation requirements are acceptable only if they do not completely prohibit any adult business
from locating within a municipality.
Many municipalities have created licensing or special use permit procedures for adult oriented
businesses. 1bis is a justifiable method of controlling the secondary effects of adult uses, but the
process must contain specific standards for granting a permit and require public officials to act on the
permit within a reasonable time period.
Other regulations are not based on the location of adult businesses, but rather the aesthetic standards of
the proposed use. Window treatments and displays typically are of great concern because they can
have a direct impact on the visual image of the area In order to protect the appearance of the
immediate community, all windows and doors of an adult business could be required to be opaque
without graphics. 1bis will prohibit widow displays of items for sale in the store and prevent casual
'window shopping' by minors.
Additional sign restrictions could be placed on adult oriented businesses that would not allow graphic
representations of activities or items for sale inside the store. There has also been limited judicial
support for regulating the size and type of signs for adult uses, however special restrictions on adult
use signs could place a substantial burden on local government to defend the regulations.
If further regulations were to be placed on adult oriented businesses, current businesses could be both
'grandfathered' in and treated as conforming uses or be rendered non-conforming and required to
come into compliance, including any separation requirements. Adult uses could be given a 'sunset'
provision (the typically between one and three years in other local ordinances), in which they must
effectively come into compliance or cease operations. Another method adopted by local governments
is to consider existing adult uses conforming, but prohibit their conversion into another adult use to
reduce the likelihood of the use continuing.
Recommendations
The Monroe County Planning Department recommends a variety of options for the regulation of adult
oriented businesses.
. Require adult oriented businesses to have opaque windows and doors.
. Require a separation distance to be determined between adult oriented businesses and the
following uses:
1. Public parks
2. Schools and daycare centers
3. Places of worship
4. Areas used for residential purposes
5. Another adult oriented business
. Allow a reasonable amortization (or 'sunset') period for existing adult businesses to come into
compliance or cease operations.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 7 of 10
Any regulation of adult businesses would be accomplished by an amendment to the Land
Development Regulations. Concurrent with any regulatory language, specific definitions regarding
the types of businesses affected and what constitutes sexually oriented material will have to be
adopted.
Research Cited
Adult entertainment businesses in Indianapolis. an analysis. Indiana Department of Metropolitan
Development, Division of Planning, 1984.
A report on the secondarY impact of adult use businesses in the city of Denver. Prepared by Multiple
City Departments, City of Denver, 1998.
Adult entertainment study. Department of City Planning, New York City, 1994.
Adult use zoning in the 90s. Deborah J. Fox. Presentation Paper, Toronto Canada 1995.
Everything you always wanted to know about regulating sex businesses.... Eric Kelly and Connie
Cooper. American Planning Association, 2000.
'Government regulations of "adult" businesses through zoning and anti-nudity ordinances: debunking
the legal myth of negative secondary effects.' by Bryant Paul, Daniel Linz, and Bradley Shafer. In
eommunication Law and Policy, Spring 2001.
Report on adult oriented businesses in Austin. Prepared by the Office of Land Development Services,
City of Austin, 1986.
To strip or not to strip: the demise of nude dancing and erotic expression through cumulative
regulations. Clinton P. Hansen, Valparaiso University Law Review. Summer 2001.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 8 of 10
Appendix A
Existing Adult Businesses
At the time of the writing of this report, there is only one adult oriented business in the unincorporated
area of the County. One of the adult businesses, the Key Largo Adult Bookstore, ceased operation as
of March 2002 and is changing to another commercial use.
Adult Video Outlet
The Adult Video Outlet recently opened (November, 2001) in Key Largo. Its address is 102700
Overseas Highway, approximate Mile Marker 102.1, Bayside. The lot is approximately 30,000
square feet and is zoned Suburban Commercial (Se). The building is ground level and has a floor
area of 6,000 square feet and was built in 1989. The building was previously occupied by Furniture
Now. There is only one structure on the lot which directly fronts US 1.
Figure 2. Front
window display at the
Adult Video Outlet.
Figure 1. Adult Video
Outlet located at Mile
Marker 102.1
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page 9 ofl 0
Key Largo Adult Bookstore
The Key Largo Adult Bookstore opened in late 1994 and recently (February 2002) has closed. It was
located at 102247 Overseas Highway, approximate mile marker 102.2. The lot is approximately 5,750
square feet and is zoned Suburban Commercial (Se). The building has a floor area of 989 square feet
and was built in 1954. The building is attached to a small, ground level strip mall along US 1.
Figure 4. The Key
Largo Adult
Bookstore, mile
marker 102.2.
Figure 3. Front
view of the Key
Largo Adult
Bookstore.
Report on the Regulation of Adult Businesses in Monroe County, Florida
Page1OoflO