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• Health and Public Safety Committee June 5, 2000 Page 2 Mr. Broden noted that compensation would only be an issue if the plaintiff(s) prevail. He further noted that if the city would not prevail on the constitutional issue of taking that that may trigger attorney fees. He noted that the 1999 Fort Wayne case located at 704 N.E. 2D 1069 addresses pre-emption as well as liquor permit holders. He stated that they were similar to transient merchants for festival activities which required a license fee between $ 500 to$ 1,000. It was held invalid. In the City of Dallas case the welfare of the people was stressed with regard to additional restrictions on establishments serving alcoholic beverages, however Mr. Broden noted that it did not address 10 p.m. Closing times. Mr. Patrick E. Mangan, a public policy consultant with Citizens for Community Values, Inc., noted that at the last Committee meeting the "porn/sex industry" had their opportunity to address the Council. In response to their information the Citizens for Community Values,Inc. had compiled a document dated June 2,2000 addressing the"Need for Action on Proposed Changes to Adult Business Ordinance"(copy attached). He stated that the position of the spokespersons for the"porn/sex industry"is difficult to understand since women are being exploited and the financial impact he stated is "ludicrous". Mr. Mangan stated that hundreds of calls regarding prostitution and other illegal activities are made to the police department as a result of the concentration of adult businesses on Michigan Street. Over 1,500 pages of studies have been presented to the Committee at prior meetings on this topic. Mr. Jim Frick, the owner of Dairy Queen located on South Michigan and President of the South Gateway Corridor stated that there are eighty (84) members of the South Gateway Association which is trying to revitalize South Michigan. He noted that there are currently thirty (30) vacant buildings along South Michigan. Mr. Frick urged the Council to pass the proposed bill. Carl Kay noted that he has been in business for approximately forty (40) and located on South Michigan for the past twenty-five (25) years. He noted that the business corridor north of him is deteriorating and he is afraid that it will move further south. Eric Gearhart, the manager of Richards Restaurant located on South Michigan stated that he has a seven-year-old daughter. He stated that when he drives with his daughter on South Michigan and she asks to see the kittens at the"Kitty Kat"lounge, he does not know how to respond. Ronald L. Ingle, the Public Safety Director of Scottsdale Mall, spoke in favor of the bill. Sam Walsh, a retired South Bend Police Officer, and now owner of Gloria Jeans Coffees in Scottsdale Mall, noted that he had worked as a beat officer and Special Operations on South Michigan from 1970 to 1975. He stated that he saw the area as a"magnet for crime". Several of his homicide investigations including stabbings, aggravated assaults. He stated that when he was involved with Crime Stoppers that many of the crimes were not reported because of the embarrassment of having them occur at an adult business. He noted the problems of prostitution from the strip bars. He concluded that if South Michigan could be cleaned up that more businesses would locate to the area and that would help Scottsdale Mall rebound. Les Fox of Adult Services noted that he always tells his employees and volunteers to be a part of the solution if there is a problem. The board whom he works for is currently considering