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The City Council Monday set a public hearing for 5 p.m. July 5 on a proposed law that would restrict the location of adult entertainment establishments to industrial districts.

The law applies to adult bookstores, motels, theaters and entertainment cabarets; massage establishments and peep shows.

The law would provide for a period of up to five years for owners of existing establishments in non-industrial zones to recoup their capital investments before they were forced to shut down.

The Council called for the hearing, saying "because of the importance of this issue to the members of this body and the community, this Council prior to adopting (the law), as part of a fact-finding process and to assist in their deliberations, desires to hold a hearing at which time proponents or opponents of said ordinance will be invited to comment on the question of restricting the location of such uses . . ."

In another matter, the Council adopted a resolution asking for state legislation to allow the city to raise the existing 3 percent room tax to 5 percent on hotel rooms with daily rates under $100. The tax on rooms renting for more than $100 a day would remain at 3 percent. The state recently imposed its own 5 percent bed tax on rooms over $100.

The resolution calls for 60 percent of the revenue from the tax to be used for the promotion of convention activities in the city "for which the city may contract with the Niagara Falls Convention and Visitors Bureau for periods of not more than three years." Thirty-five percent of the revenue is to be divided equally between tourism promotion and maintenance and repairs of convention facilities. The remaining 5 percent would be retained by the city for administration and collection costs.

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