Private Moments

Paul Reed and Carol J. Cumber ()
Additional contact information
Paul Reed: Sam Houston State University
Carol J. Cumber: Department of Economics, South Dakota State University

No 200002, Case Study Abstracts from South Dakota State University, Department of Economics

Abstract: In October, 1996 Private Moments, an adult novelty store, opened for business in Huntsville, Texas. Huntsville had no ordinances in place to prevent the opening of this type of business. In fact, the local Small Business Development Center provided guidance and assistance to Edward Delagarza, the founder and owner of Private Moments. Many of the Huntsville citizens, unhappy with the opening of Private Moments, approached the City Council requesting that it be closed immediately and asked for legislation to prevent other Sexually Oriented Businesses (S.O.B.) from locating in Huntsville. After a hearing before the Planning and Zoning Commission to review alternative zoning restrictions, City Council passed an ordinance that outlined the process for obtaining a permit to operate as a S.O.B. and placed severe limitations on places a S.O.B. could locate. Private Moments, in existence when the ordinance was passed, was grandfathered. Sales at Private Moments have grown slowly, but business has been profitable. Since opening Private Moments, Mr. Delagarza has begun operating two other businesses: a tattoo parlor, which is adjacent to Private Moments, and a bar, located some distance away. He must now decide whether to remain in his current location and expand his operations by selling adult novelty items to other markets in other locations, redirect his effects toward internet sales or the wholesale distribution of S.O.B. products, or devote his time to his other two businesses. (Contact author for a copy of the complete report.)

Keywords: Small Busn Mgmt; Regulations (search for similar items in EconPapers)
JEL-codes: K2 M1 (search for similar items in EconPapers)
Date: 2000-02

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Persistent link: http://EconPapers.repec.org/RePEc:sda:csabst:200002

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