CC - Municipal Code Amendment 94-03 - Adult Oriented Business - Box 065J
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
7Z
DATE: MAY 23, 1995
SUBJECT: MUNICIPAL CODE AMENDMENT NO. 94-03
Adult-Oriented Business Ordinance/ First Reading
SUMMARY
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Rosemead has a moratorium on adult businesses effective until September 10, 1995: This
moratorium is in place to allow staff time to create an ordinance to regulate, adult-oriented
businesses. The existing code prohibits such uses, or requires a conditional use permit, both of
which have been found unconstitutional by the courts. Cities must allow "reasonable" area for
adult businesses under "concept neutral" regulations of time, place and manner in which
adult-oriented businesses may operate.
Staff has drafted an ordinance which allows adult businesses in the C-3 zoning district provided
they are at least 1,000 feet from a school and located no closer than 1,000 feet to another adult
business. In addition, development and operation standards establish the time, place and manner
in which such uses may operate. Staff finds that this scenario would allow a "reasonable"
number of businesses while preserving the City's interests to the maximum possible extent.
The impact of the draft ordinance on existing businesses would be very minor. Only a couple
of hotel/motels and/or video rental/sales have advertising that would need to be addressed.
On March 20, 1995, the Planning Commission held a public hearing on the draft ordinance. No
public testimony was presented. The Planning Commission voted 5-0 to recommend City
Council approval of Municipal Code 94-03, adding provisions to the Rosemead Municipal Code
pertaining to Adult-Oriented Businesses.
COUNCIL AGENDA
MAY °2 31995
ITEM No. 7/ A
I. INTRODUCTION
A. PURPOSE AND INTENT
1. Existing Regulations: Interim ordinances, prohibiting adult businesses; nos. 424,
530, 538 and 544u were adopted between 1976 and 1982. These ordinances were
drafted to remain in effect for one (1) year. Therefore, there is no existing
regulation for adult-oriented businesses since these time periods have passed.
2. Moratorium: A moratorium was ordered by the Rosemead City Council with
ordinance nos. 747 (45 day moratorium adopted 9-13-94) and 749 (10 month, 15
day moratorium adopted 10-25-94). This moratorium prohibits issuing any
permits or licenses to adult-oriented businesses. The intent is to provide time for
staff to create regulations that protect the City's interest and meet the court's test.
B. BACKGROUND
1. Current Trend: The Los Angeles/Orange County area has seen a significant
move to establish adult businesses. Although Rosemead has not faced this issue
directly, a number of local cities have had legal challenges to their adult business
regulations through this process. Federal courts have consistently held that
adult-oriented businesses are a form of free speech protected under the U.S.
Constitution. Moratoriums have been found unconstitutional in cases where the
restriction is on specific use(s) versus a zoning designation.
2. Legal Challenges: Through trial and error, the courts have somewhat defined
what is allowed/not allowed in an adult-oriented business ordinance (regulations).
The primary objective is that regulations are found acceptable so long as they are
"concept neutral". This means that a local authority may adopt regulations to
define where and how an adult business may operate provided that they are
"reasonable" to allow such business to establish. In addition, a City may neither
prohibit such uses nor require discretionary review such as a Conditional Use
Permit.
Regulations included in the ordinance must have justification. Various cities have
completed studies evaluating the operation of adult businesses, and the secondary
effects of these uses. Rosemead's City Attorney's office prepared a memorandum
dated 8-24-94 summarizing some of those studies (Attachment A).
All of these studies are available for review in the Planning Department. The
draft ordinance references these studies as a basis for the regulations that are
included. There is no specific case study for Rosemead because no adult
businesses have located in the City.
Municipal Code Amendment 94-03
Adult-Oriented Business Ordinance
Page 3
3. Planning Commission: On March 20, 1995, the Planning Commission held a
public hearing on Municipal Code No. 94-03. There were no residents present
to provide testimony, and no written correspondence had been received.
The Planning Commission inquired about adding restrictions from adult-oriented
businesses located next to residential uses. Staff noted that to do so would not
provide adequate area for such businesses to locate which would be subject to
legal challenges. Section II (B) details this analysis.
The Planning Commission voted 5-0 to adopt a Negative Declaration finding no
significant environmental impacts would result from the ordinance. In addition,
the Planning Commission voted 5-0 to recommend City Council approval of
MCA 94-03. They found that the regulations help protect residents from
secondary effects. The City is required to allow adult-oriented businesses which
are protected under the U. S. Constitution.
II. ANALYSIS
A. EXISTING USES
There are currently no known adult businesses permitted in Rosemead. However,
businesses like video rental/sales and hotel/motels have a form of adult use.
1. Video: Rosemead has fourteen (14) businesses which sell and/or rent videos.
This includes liquor stores and gift shops that include videos as a secondary
service. The largest amount of floor area in any one business devoted to adult
videos is 9% (See Attachment B).
The courts do not determine a use to be an adult business unless a "substantial"
amount of business is devoted to such use. Staff has drafted the ordinance with
a 25% display area threshhold to determine if a video rental/sale business is an
adult use.
Staff finds that no existing video rental/sales would be defined as an adult
business under the draft ordinance. However, if they advertise availability of
adult videos, they become an adult use. The justification is that by advertising,
such videos become a part of the primary business.
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Municipal Code Amendment 94-03
Adult-Oriented Business Ordinance
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2. Hotel/Motel: There are fifteen (15) hotels or motels in Rosemead. All of them
have cable television. Two have been noted to advertise that they provide the
playboy cable TV channel (See Attachment Q.
Ordinance No. 744 limits how often hotel/motel rooms may be rented. This
regulation has been incorporated into the adult business ordinance. If rooms are
rented more than once in a 24-hour period plus they provide and advertise the
Playboy channel, they would be defined as an adult business. No existing
hotels/motels would fall under this definition.
B. LAND USE RESTRICTIONS
Staff has completed a detailed land use analysis to determine where adult businesses may
locate in relation to sensitive uses. This analysis included schools, residential zones, and
other adult businesses. Staff determined the maximum number of businesses that could
be established under certain conditions.
1. Residential: Residences are probably the most sensitive use to adult businesses.
However, restriction from the residential zone were not included because there
would not be enough area left available for uses to locate. Most commercial and
industrial parcels are only 200 feet deep with residential uses immediately
adjacent to them. The strip zoning of commercial and industrial designations
would in effect eliminate any potential sites regardless of the setback distance
used.
2. Adult Uses: Another very sensitive use is other adult-businesses. City studies
have found increased problems where adult-businesses are allowed to concentrate.
This would be especially true for Rosemead due to the close proximity of
residences to commercial/industrial zones. Staff proposes a 1,000 foot setback
from other adult uses.
3. Schools: Staff finds that schools are a sensitive use around adult businesses.
Children may pass such businesses traveling to and from school. This creates a
sensitive issue with the parents and how they wish to raise their children. Staff
finds that a 1,000 foot setback from schools helps to keep adult businesses away
from most school routes.
Table 1 summarizes the maximum number of businesses in the City under six (6)
differenct scenarios:
Municipal Code Amendment 94-03
Adult-Oriented Business Ordinance
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TABLE 1: LAND USE SUMMARY
No. Parcels
Usable
Area
Number
Scenario
Restriction (s)
Available
AC
%
13smcs
1
M-1 zone, Adult uses
330
147.04
6.3%
12
2
M-1 zone, Adult uses,
Schools
264
127.61
5.4%
10
3
C-3 zone, Adult uses
500
320.55
13.7%
32
4
C-3 zone, Adult uses,
Schools
239
142.45
6.1%
20
5
M-1 zone, C-3 zone,
Adult uses
830
467.59
19.9%
44
6
M-1 zone, C-3 zone,
Adult uses, Schools
503
270.06
11.5%
30
The sources and detailed analysis for this information is on file with the Planning
Department. Staff utilized assessor maps and zoning maps and scales to accurately
determine potential sites and usable land area.
III. FINDINGS
A. PREFERRED ALTERNATIVE
As a residential community, Rosemead would be very sensitive to excessive adult
businesses. Therefore, staff recommends scenario No. 4 (Table 1) locating adult
businesses in the C-3 zone with restrictions of 1,000 feet setbacks from schools and other
adult businesses. This would make 6.1 % of the total land in the City available to adult
uses. Staff estimates that up to twenty (20) businesses could establish using these
guidelines.
Staff finds that Scenarios 1 and 2 would be too restrictive and would not be supported
by the courts. Using the M-1 zone prohibits a restriction from adult-oriented businesses
locating next to each other. Staff finds that this could create concentrations which could
create negative effects. Also Scenarios 3, 5 and 6 are not restrictive enough to reduce
potential secondary effects.
B. OTHER REGULATIONS
1. Advertisement: Staff finds that advertising adult uses should be a factor defining
such uses. For example, a hotel with the Playboy channel provides this as a
Municipal Code Amendment 94-03
Adult-Oriented Business Ordinance
Page 6
secondary service for their customers. However, a hotel that advertises they have
the Playboy channel could be attempting to.draw customers with a preface to
watch adult movies. Therefore, staff has included advertising as part of the
definition of an adult use.
2. Review Process: Two entitlements for Adult-Oriented uses, Adult-Oriented
Business Permit and Adult Entertainment License (Business License), would be
required. Decisions would be rendered by the City Council within thirty (30)
days of receiving a complete application. Once the Council determines an
application meets the standards of the ordinance, a permit/license would be
approved. This type of process has been somewhat established in the courts, and
is similar to the existing process for an entertainment permit.
IV. ENVIRONMENTAL ANALYSIS
An initial study was prepared and circulated in accordance with Article 6 of the California
Environmental Quality Act (CEQA). This study found that there could be potential impacts
created by adult-oriented businesses. Municipal Code Amendment 94-03 has been drafted to
reduce these potential impacts. Each request for an adult-oriented business would need to be
evaluated case-by-case for potential impacts. The Planning Commission voted 5-0 to adopt a
Negative Declaration finding that the proposed project could not have a significant effect on the
environment.
V. RECOMMENDAITON
The Planning Commission recommends that the City Council approve Municipal Code
Amendment 94-03 adding new rules and regulations to the Rosemead Municipal Code (RMC)
pertaining to Adult-Oriented Business.
Staff recommends that the City Council introduce this ordinance and schedule this item for
second reading and adoption on the next City Council agenda.
Attachments:
A. Memo dated 8-24-94 - Adult Business Studies
B. Video Rentals Survey - 10-1-94
C. Hotel/Motel Survey - 10-1-94
D. Initial Study
E. Draft Ordinance