REPORT TO COUNCIL

VANCOUVER LIQUOR LICENSING COMMISSION

November 26, 1998

A regular meeting of the Vancouver Liquor Licensing Commission was held on Thursday November 26, 1998, at 7:30 p.m., in Committee Room No. 1, Third Floor, City Hall.

PRESENT: Councillor Lynne Kennedy, Chair

Councillor Daniel Lee
Councillor Alan Herbert

ABSENT: Councillor Don Bellamy (Sick Leave)

CITY MANAGER’S
OFFICE: Judy Rogers, Deputy City Manager

ALSO PRESENT: Michael Gordon, Central Area Planning

Guy Gusdal, License Coordinator
Inspector Dave Jones, I/c District 1, Police Department
Paul Teichroeb, Chief License Inspector

CLERK: Gil Mervyn

ADOPTION OF MINUTES

The minutes of the Vancouver Liquor Licensing Commission regular meeting held October 8, 1998, were adopted as circulated.

BUSINESS ARISING FROM THE MINUTES

Councillor Herbert clarified a request for information he had made at the last Commission meeting regarding the intent and impacts of the additional inspections being carried out by the Liquor Control and Licensing Branch pertaining to the overcrowding in cabarets. The Councillor requested information regarding the date of commencement of the current program, frequency of checks and the findings of the overcrowding, as well as comment regarding the impacts and consequences of these findings related to public consumption of entertainment, cabaret owners/operators, policing and the street environment. Information was also requested to clarify the origin and intent of the two separate seating codes used to define “overcrowding”.

BUSINESS ARISING FROM THE MINUTES (cont’d)

Judy Rogers, Deputy City Manager, agreed to investigate with staff the feasibility of providing the requested information and report back at the Commission’s next meeting.

VARY ORDER OF AGENDA

The order of the Agenda was varied to consider Item No.6 first.

RECOMMENDATION

6. Provincial Liquor Policy Review File: 2610

Mr. Dick Gibbons, Director, British Columbia and Yukon Hotel Owners’ Association, appeared before the Commission on behalf of the Hospitality Industry Coalition, a group consisting of the Hotel Owners’ Association, the Neighbourhood Pub Owners’ Association and the Cabaret Owners’ Association, in order to address concerns related to the recently announced Liquor Policy Review of the Provincial Government. It is anticipated the review will be completed by the end of January, 1999.

Mr. Gibbons advised the Coalition is particularly concerned regarding a proposal by the British Columbia Restaurant Association to allow straight drinking (i.e., the service of alcohol without the purchase of food) in a portion of all restaurants. The Coalition also has concerns regarding the proposal previously considered by the Provincial Government, to permit Government Liquor Stores to open on Sundays and to permit them to sell refrigerated product. If implemented, the Coalition feels these changes would create chaos in the hospitality industry and considerable economic hardship for its members.

During discussion it was noted City staff were scheduled to meet with representatives of the Liquor Control and Licensing Branch the following week to discuss the extent of the review and opportunities for input. It was also noted City Council had previously dealt with these matters and was on record as opposing Sunday openings for Government Liquor Stores.

The following motion by Councillor Herbert was put and carried. Therefore the Commission

RECOMMENDED

THAT the verbal presentation by Dick Gibbons, on behalf of the Hospitality Industry Coalition, be received for information.

- CARRIED UNANIMOUSLY

1. NFL Football - BC Place Stadium, August 15, 1998 File: 2616-1

During its meeting held October 8, 1998, the Commission was advised of a serious situation which took place involving liquor sales at the NFL football event held at BC Place Stadium on August 15, 1998. The event required a greater than expected commitment of policing resources and resulted in more than 80 ejections and 12 arrests. The Commission requested that representatives of BC Place Stadium appear before it at this meeting to reassure the Commission they will work with the Police Department to ensure an incident of this nature does not happen again.

The Commission had, as background material, a memo from Inspector Dave Jones dated September 10, 1998, and letter from Howard Crosley, General Manager, BC Place Stadium, dated November 9, 1998 (copies on file).

Sergeant John Schouten, Vancouver Police Special Events Services, provided an overview of the reports provided by the police officers in attendance at the event. A special permit had been issued for the sale of beer at a pre-event “tailgate” party (Beer Garden) on the concourse outside the Stadium, which started at 2:00 p.m. (three hours prior to the start of the main event). The beer garden was well attended and resulted in a large number of fans becoming intoxicated prior to the start of the game. Beer sales in the beer garden continued to half time, and sales from the stadium concessions until after the start of the fourth quarter. Numerous intoxicated persons were observed purchasing the maximum allotted two beers and there did not appear to be any monitoring or control over the purchase of liquor, as long as the purchaser was of legal age. Numerous fights broke out between drunken spectators and other fans, police and security personnel. There were insufficient police and BC Place security members present to deal with the problems. Two police members and several BC Place Security members were assaulted. The police road-block crew and several Robson Street beat members were called in to assist. The over-service of liquor appeared to be the main reason for the many complaints, ejections and other unruly behaviour.

Appearing before the Commission were the following representatives of BC Place Stadium: Howard Crosley, General Manager; Brian Griffin, Manager, Operations; Karel Geysendorpher, Director, Food and Beverage; and Dalbir Kang, Concession Manager.

Mr Crosley advised he had recently met with officials of the Liquor Control and Licensing Branch and had held several meetings with the Police Department following the event, to address the concerns related to this incident. Mr Crosley felt there was a misconception regarding the widespread nature of the problems experienced, noting that the difficulties had primarily occurred in two small areas of the stadium. BC Place security records show only 37 ejections had occurred during the event.

Mr Crosley advised the event organizers had been caught off guard by the crowd that actually attended the event. Pre-event assessment indicated the fans would be primarily professional and/or family based. The large number and rowdiness of the fans that attended both the beer garden and the game exceeded the capabilities of the security and police staff in attendance. The normal security personnel assigned to the Stadium gates and to monitor the line-ups at the concessions had to be re-deployed to respond to other security concerns.

Mr. Crosley also noted that illegal drinking had taken place by the fans in the parking lots surrounding the Stadium, prior to entering the beer garden and stadium. The promotion of the “tailgate” party and its connotations, was likely a major contributing factor to the number of illegal activities which took place in the lots. These areas are not under Stadium control.

Additional police and security personnel have been employed for BC Lions’ games held since this NFL event and improved plans, developed in consultation with the Police Special Events Section, have been prepared for future events.

In response to an enquiry, Mr Crosley advised a similar event had not yet been scheduled for the coming year.

The following motion by Councillor Herbert was put and carried. Therefore the Commission

RECOMMENDED

THAT the verbal report by staff and representatives of the BC Place Stadium be received for information.

- CARRIED UNANIMOUSLY

2. 1400 Robson Street - Empire Landmark Hotel File: 2612-8

and Convention Centre

The Commission had before it an Administrative Report dated October 14, 1998 (on file), in which the Chief License Inspector submitted for consideration the endorsement of an application by Global Gateway Corp. for an increase in seating capacity from 75 to 179 seats in the Class ‘A’ Lounge at the Empire Landmark Hotel and Conference Centre, located at 1400 Robson Street.

In 1989, the previous owners of the Hotel, Sheraton Landmark Hotel, made renovations that reduced the four Class ‘A’ Lounge licensed areas with a total seating capacity of 179 to 97 in three licensed areas to accommodate an increase in the Class ‘B’ Restaurant licensed area. The seating capacity was again reduced in 1993 to 75 seats in two licensed areas. The applicant is seeking to recover the 104 Class ‘A’ Lounge seats which would then be redistributed between the two existing lounge areas.

The hotel also operates a 250-seat Class ‘A’ Pub consisting of two licensed areas and a 2,080-seat Class ‘B’ Dining Lounge, consisting of 24 licensed areas which include the restaurant and banquet rooms.

The neighbourhood notification process resulted in two letters and one telephone response expressing opposition to the application and concern regarding the noise and disturbances in late evenings, as a result of the operation of the hotel’s licensed premises. One letter, written on behalf of the Colonnade Condominiums, 1455 Robson Street, did not oppose the application, but recommended approval be subject to the implementation of a Good Neighbour Agreement.

Guy Gusdal, License Coordinator, briefly reviewed the details of the Administrative report.

Jim Keenan, HOST Consulting Ltd., agent for the applicant, referring to an information package (circulated and on file) described the proposed renovations to the licensed areas of the hotel, including the enlargement of the existing restaurant and Class “A” lounge located on the main floor. The family oriented restaurant will front directly on to Robson Street, with the lounge situated behind. This lounge area, when completed, will contain 84 seats. The balance of the requested seats will be added to the “Cloud 9” lounge area, resulting in a total of 95 seats. There will be no major structural changes to the “Cloud 9” area, other than the relocation of the present separators between the restaurant and lounge seating areas.

In response to a question, Linda Hagen, Hotel Manager, advised noise concerns related to the operations of the Hotel’s Sportscasters Lounge had been resolved to the satisfaction of the residents of the neighbouring Colonnade Condominiums. Outdoorspeakers have been removed and arrangements made to ensure doors remain closed during times that music is being broadcast.

The following motion by Councillor Lee was put and carried. Therefore, the Commission

RECOMMENDED

THAT Council endorse the application by Global Gateway Corp., for an increase in seating capacity from 75 to 179 in the Class ‘A’ Lounges at the Empire Landmark Hotel and Conference Centre, 1400 Robson Street, having considered the support of residents and business operators of the community as determined by neighbourhood notification and subject to a time-limited development permit or legal agreement and the applicant signing a Good Neighbour Agreement prior to the issuance of the license.

- CARRIED UNANIMOUSLY

3. 871 Beatty Street - 472120 B.C. Ltd File: 2615-12

Manufacturer’s License in Class ‘D’ Neighbourhood Pub

The Commission had before it an Administrative Report dated October 29, 1998 (on file), in which the Chief License Inspector recommended Council endorse an application by 472120 B.C. Ltd. for a change to the original endorsement of a Class ‘D’ Neighbourhood Pub to provide an on-site manufacturer’s license (brewing facility) at 871 Beatty Street.

The original application for a Class ‘D’ Neighbourhood Pub at this site was endorsed by the Commission on July 25, 1996, following the conduct of a neighbourhood referendum in accordance with existing City policy. The endorsement was subject to the conditions that the development not include an outdoor patio, nor off-premise liquor sales and the existing Class ‘C’ Cabaret license for the site be cancelled.

The renovation of the building is nearing completion, but the applicant’s plan for the building now include on-site brewing. The Liquor Control and Licensing Branch defines a brew pub as the combination of a pub with a small brewery making beer on a limited production basis. A manufacturer’s license is required for this type of facility. Sale of the beer is limited to on-site consumption, unless the licensee has an off-site sale endorsement. The Commission did not endorse off-site sales for this applicant.

As on-site brewing facilities without off-site sales will result in no additional impacts on the surrounding community, further notification of the surrounding community was not deemed necessary.

There was no correspondence received regarding this application.

Guy Gusdal, License Coordinator, briefly reviewed the details of the Administrative report.

The following motion by Councillor Herbert was put and carried. Therefore the Commission:

RECOMMENDED

THAT Council endorse the request by 472120 B.C. Ltd., for a manufacturer’s license in the Class ‘D’ Neighbourhood Pub at 871 Beatty Street, subject to the applicant signing a Good Neighbour Agreement prior to the issuance of the license.

- CARRIED UNANIMOUSLY

4. Policies and Procedures for Cabarets not File: 2610

Licensed to Serve Alcohol(Non-Alcoholic Dance Halls)

During its meeting held October 8, 1998, the Commission deferred consideration of an application by John Margetis for a 160-seat cabaret without alcohol at 810 Granville Street, pending a report back from staff on the adoption of policies for the regulation of after-hours, non-alcoholic dance halls in the City.

Accordingly, the Commission had before it a Policy Report dated November 12, 1998 (on file), in which the Chief License Inspector, Police Inspector i/c District 1 and the Director of Central Area Planning recommended the adoption of policies and procedures on the location, operation, processing of applications and other requirements for cabarets which are not licensed to serve alcohol (referred to in the License By-Law as dance hall).

The report notes there are currently no non-alcoholic dance halls operating in the Downtown. There is, however, significant patronage for these types of facilities in illegal establishments. In a survey of other cities, staff determined that Montreal, Toronto, San Francisco, Portland and Seattle all permit late night dance halls. Toronto is the only city which limits these establishments to an entertainment district.

The report recommends the policies and procedures for the review and approval of applications of Cabarets which are not licensed to serve liquor contain the following provisions:

· hours are limited to 7:00 a.m. to 2:00 a.m. Monday to Thursday but they may operate continuously from Friday 7:00 a.m. to Monday at 2:00 a.m. on weekends as set out in the License By-law;
· hours may be extended for recognized public holidays by the Chief License Inspector as permitted in the License By-law;
· capacity is to be limited to 200 patrons at any one time;
· admittance will be limited to those of 19 years or older;
· notification of residents and businesses within a 1,000-foot (305 m) radius;
· only time-limited development permits will be granted with a condition that no alcohol sales or consumption shall be permitted in the premises;
· exotic dancing will not be permitted;
· a good neighbour agreement, similar to those applying to cabarets, will be required;
· applications must follow the pre-site clearance requirements applying to Cabarets and Class II - Restaurants; and
· locations for new applications for late night non-alcohol dance halls will be limited to the Granville Street Entertainment District (700, 800 and 900 blocks).

These locations are recommended to minimize the conflict between housing and the noise generated by patrons using the late night dance halls. After some experience with these clubs, locations outside the entertainment district can be considered.

In the case of the location where the approved use is currently for a dance hall, a time-limited development permit will not apply. However, in cases where there were serious concerns regarding the operation of this dance hall, the business license could be refused after a show cause hearing.

The report also notes that dance halls are currently permitted in areas where Cabarets are a listed use. Staff believe that the Zoning and Development By-Law should distinguish between dance halls which can remain open all night and liquor licensed establishments, which must close at an earlier hour. Staff will report back with recommendations for zoning amendments to deal with this issue.

Michael Gordon, Central Area Planning, briefly reviewed the details of the report.

In a memo to the Commission dated November 26, 1998 (circulated and on file), Inspector Dave Jones advised the Police Department had recently received a legal opinionit does not have the authority to enter an after-hours non-alcoholic cabaret. Consequently, there can be no regulation of the number of patrons, types of activities and drug or alcohol availability in these premises. Police are therefore not prepared to support after-hours cabarets, until the authority to enter has been established.

In response to this concern, it was suggested, as an interim measure, applicants be required to enter into a legal agreement, satisfactory to the Police Chief and the applicant, which will guarantee police access to the premises. In addition, the Director of Legal Services will be requested to prepare an amendment to the License By-Law or identify some other means to guarantee police authority to enter Cabarets not licensed to serve alcohol.

During discussion, a member of the Commission suggested the City pursue the possibility of granting existing Class “C” Licenced Cabarets an extension of hours on weekends, from 2:00 a.m. to 6:00 a.m., for non-alcoholic entertainment, open to patrons 19 years of age or older. In response, it was suggested this proposal be addressed as part of the City’s response to the Liquor Policy Review initiated by the Provincial Government. Staff will be reporting the results of discussions with the LCLB regarding the review to the Commission at its next meeting in December.

Juliet Smith spoke in favour of the proposed guidelines, but emphasized the need for the City to develop guidelines for the consideration of applications located outside the Entertainment District and venues which provide for more than 200 people, in order to respond to existing demands. There are many potential applications awaiting the opportunity to establish venues in the City.

Luke McKeehan, Chameleon Urban Lounge, and Gordon Knight, Sonar Cabaret (brief circulated and on file), also spoke in favour of the proposed guidelines, but stressed existing cabarets should also be provided the opportunity to remain open to provide after-hours non-alcoholic entertainment. A proliferation of non-alcoholic after-hours cabarets would create direct competition for existing cabarets and likely draw away their clientele, resulting in considerable economic impact. Permitting existing licensed cabarets to remain open would provide a greater number of venues for safe after-hours entertainment and reduce the need for travel from one premise to another.

During discussion members of the Commission noted the importance of establishing safe, legal venues to provide opportunity for after-hours entertainment.

The following motions by Councillor Herbert were put and carried. Therefore the Commission

RECOMMENDED

A. THAT the following policies and procedures be adopted for processing development permit applications for cabarets which are not licensed to serve alcohol.

· hours are limited to 7:00 a.m. to 2:00 a.m. Monday to Thursday but they may operate continuously from Friday 7:00 a.m. to Monday at 2:00 a.m. on weekends as set out in the License By-law;
· hours may be extended for recognized public holidays by the Chief License Inspector as permitted in the License By-law;
· capacity is to be limited to 200 patrons at any one time;
· admittance will be limited to those of 19 years or older;
· notification of residents and businesses within a 1,000-foot (305 m) radius;
· only time-limited development permits will be granted with a condition that no alcohol sales or consumption shall be permitted in the premises;
· exotic dancing will not be permitted;
· a good neighbour agreement, similar to those applying to cabarets, will be required;
· a legal agreement satisfactory to the Chief Constable and applicant which guarantees police access to the premises will be required;
· applications must follow the pre-site clearance requirements applying to Cabarets and Class II - Restaurants; and
· locations for new applications for late night non-alcohol dance halls will be limited to the Granville Street Entertainment District (700, 800 and 900 blocks).

AND FURTHER THAT the Director of Legal Services be requested to report back on whether amendments to the License By-Law could be made or whether there are other means to guarantee police authority to enter cabarets not licensed to serve alcohol.

B. THAT staff, in developing or reviewing policy related to late night venues, coordinate their work with the Child-Youth Advocate, in accordance with Recommendation E of the Civic Youth Strategy Progress Report, adopted by Council on November 17, 1998.

- CARRIED UNANIMOUSLY

5. 810 Granville Street - Cabaret (Non-Alcoholic Dance Hall) File: 2614-11

John Margetis

During its meeting held October 8, 1998, the Commission deferred consideration of an application by John Margetis for a 160-seat cabaret, without alcohol, at 810 Granville Street, pending a report back from staff on the adoption of policies for the regulation of after-hours, non-alcoholic dance halls in the City.

As the requested report had been considered earlier this meeting , the Administrative Report dated September 17, 1998 (on file), in which the Chief License Inspector recommended Council endorse the application by Mr. Margetis, was brought back to the Commission for further consideration.

The Commission had also received additional material, including plans and illustrations, submitted by the applicant, which provided more detailed information regarding the proposed design and operation of the club (on file).

The applicant is proposing to develop approximately 2,000 sq.ft. of the basement level of this existing building to operate a non-alcoholic “after-hours” dance hall with a seating capacity for 160 patrons. The applicant proposes to operate the dance hall from 1:00 a.m. to 6:00 a.m. on weekends, to provide a safe, quiet facility for regular patrons from the entertainment industry and general community, to dance and relax after-hours. Pre-recorded music will be provided as entertainment. The applicant is willing to commit to a “good-neighbour agreement” and intends to ensure that line-ups will be contained within the building, and music will be kept at a volume that will not be audible on the street. There will be slow dispersal of patrons from the premises and no advertising will appear at street level.

The neighbourhood notification carried out originally for this application resulted in one letter expressing support for the application.

Guy Gusdal, License Coordinator, briefly reviewed the details of the Administrative Report.

John Margetis, applicant, reviewed the details of the dance hall proposal, including the design and location of the entrance off of Granville Street, holding area, dance floor, food and beverages to be served, and the provisions for noise reduction, security and safety.

It was noted the endorsement of this application would permit the City to “pilot” the licensing of after- hours non-alcoholic dance halls, utilizing the policies and procedureswhich were recommended earlier during the meeting.

The following motion by Councillor Herbert was put and carried. Therefore the Commission

RECOMMENDED

THAT Council endorse the request by John Margetis for a 160-seat cabaret without alcohol at 810 Granville Street, having considered the support of residents and business operators of the community as determined by neighbourhood notification and subject to the following conditions:

i) a time-limited Development Permit with a condition that the sale of alcohol will not be permitted;

ii) the LCLB be informed that the City does not support a liquor license at this location;

iii) a Good Neighbour Agreement signed prior to the issuance of a Business License;

iv) a legal agreement, satisfactory to the Chief Constable and applicant, which guarantees police access to the premises;

v) exotic dancing not be permitted.

- CARRIED UNANIMOUSLY

The Commission adjourned at 10:20 p.m.

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(c) 1998 City of Vancouver