Ok, can anyone speak this stuff? Here’s a Quinlan quiz that deals with high-crime areas and how they can have an effect in searching someone. It can be considered one of the factors in reasonable suspicion. If an officer sees two people pass a bag and/or money between between themselves in an area defined as a "high-crime area", there is reasonable suspicion that can lead to a legal search of the people involved.
Yeah, it can hurt the head to overthink this stuff, really, its more common sense. Its a reasonable conclusion to imply that there is something nefarious going on. Also, factor in the "good faith" implications that have been worked out in the courts, the police department here in town shouldn’t have any legal trouble following the Ordinance the Chief has proposed and Council has passed.