ADMINISTRATIVE REPORT

Date: January 29, 2001
Author/Local: G Gusdal/871-6461

RTS No. 1786

CC File No. 2614-19

CS&B: February 15, 2001

TO:	Standing Committee on City Services and Budgets
FROM:	Chief License Inspector
SUBJECT:	686 W Hastings Street - MGI Investments Ltd. Class ‘C’ Cabaret

RECOMMENDATION

A. THAT Council, having considered that the majority of area residents and business operators of the community are in favour of the application as determined by neighbourhood notification and having considered the proximity of residential developments, traffic patterns, road access, availability of parking, noise impacts and overall design, endorse the application by MGI Investments Ltd. for a 210-seat Class ‘C’ Cabaret at 686 West Hastings Street, subject to:

i) A Time-Limited Development Permit.

ii) A signed Operating Agreement for a new establishment prior to the first renewal extension of the Development Permit which would include provisions to hold the seating capacity to 210, regardless of any change to regulations as a result of the Provincial Liquor License Regulations review.

iii) The permanent closure of the 190-seat Class ‘A’ Pub at the Sunrise Hotel, 101 East Hastings Street, including supporting legal documentation to ensure this existing liquor license is surrendered to the Liquor Control and Licensing Branch prior to July, 2001.

iv) The hours of operation are limited to 7:00 p.m. to 2:00 a.m. Monday through Saturday and 7:00 p.m. to 12:00 midnight on Sunday.

v) A signed Good Neighbour Agreement prior to the issue of a business license.

vi) No exotic dancers permitted

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Council policy is that new Class ‘C’ Cabarets are subject to a Legal Agreement, a Good Neighbour Agreement, a Time Limited Development Permit and neighbourhood notification.

PURPOSE

MGI Investments Ltd. are requesting a Council resolution endorsing their application for a 210-seat Class ‘C’ Cabaret at 686 West Hastings Street.

BACKGROUND

MGI Investments Ltd. have made an application to the City to open a 210-seat cabaret at 686 West Hastings Street, in the commercial premises previously occupied by the Hard Rock Café. The Hard Rock Café, which held a Restaurant Class 2 liquor license, operated at this location from 1995 to 2000. MGI Investments Ltd., who also own and operate “La Terrazza Restaurant” at 1088 Cambie Street, intend to operate an upscale cabaret offering both live bands and recorded music and tapas/bistro style food. Hours of operation will be 7:00 p.m. to 2:00 a.m. Monday through Saturday and 7:00 p.m. to 12:00 midnight on Sunday.

As part of its proposal, MGI Investments Ltd. have negotiated a transaction with BC Housing for the purchase of 190 Class “A” Pub licensed seats located in the Sunrise Hotel at 101 East Hastings Street, owned and operated by the Provincial Rental Housing Corporation. The successful completion of this transaction is conditional upon approval from the City and theLiquor Control and Licensing Branch (LCLB) for the relocation of the 190 seats from the Downtown Eastside to the new cabaret at 686 West Hastings Street. Monies received by BC Housing from the proceeds of the sale will in turn be used as a contribution toward theredevelopment of the Sunrise Hotel. Planned amenities, including a dental clinic, medical offices, laundromat and coffee bar on the ground floor, are expected to benefit existing tenants and tenants of the neighbouring Washington and New Portland Hotels, as well as the larger Downtown Eastside community.

Area Surrounding Subject Premises

The subject premises at 686 West Hastings Street are located in the Downtown District (DD) and surrounded by a mix of retail, office, restaurant, hotel, neighbourhood pub and cabaret uses. There are nine Class “A” Lounges (3024 seats), eight Class “A” Pubs (1459 seats), one Class “D” Neighbourhood Pub (85 seats) and two Class “C” Cabarets (450 seats) and approximately 25 licensed restaurants within the survey area. The nearest provincial government liquor store is located in Harbour Centre at 555 West Hastings Street. Also located in the survey area is the Salvation Army Mens Hostel, Church of Scientology, BCIT downtown campus, Simon Fraser University downtown campus and the YWCA (refer to Appendix).

Cabaret Regulations and Policies

Class ‘C’ Cabarets are entitled to serve all types of liquor without food, although hot food, sandwiches and snacks are required to be available. All types of entertainment are permitted, except that Council policy prohibits exotic dancers in all new liquor licensed establishments. Permitted hours of operation are limited to 7:00 p.m. to 2:00 a.m. seven days a week. However, Council policy has not yet been developed with respect to 2:00 a.m. closing on Sunday. Therefore, no municipal endorsement to permit Sunday closing beyond 12:00 midnight for Class ‘C’ Cabarets is recommended at this time.

DISCUSSION
Benefits of Proposal
Staff has spent a considerable amount of time in the recent past working with representatives from BC Housing and the liquor industry in an effort to achieve some tangible benefits from the sale or closure of the Sunrise Hotel’s liquor license. Although previous attempts to relocate the license have failed, the proposal submitted by MGI Investments Ltd. appears promising based on commitments made to date.

Should the proposed licensed seat relocation come to fruition, the subject proposal would benefit all concerned parties. BC Housing would receive compensation for an asset (i.e., liquor license) that was purchased at market value when the Sunrise Hotel property was bought, and these monies would be reinvested into the redevelopment of the building. As aresult, the City would gain an improved low-cost housing facility with much-needed amenities, and there would be a reduction in the number of licensed seats in the Downtown Eastside. With the closure of the Sunrise Hotel pub, the applicant would receive the City’s endorsement for a new cabaret at 686 West Hastings Street. Prior to granting such an endorsement, however, the City would require the Provincial Rental Housing Corporation to submit a Letter of Understanding committing to the surrender of the Sunrise Hotel Class “A” Pub liquor license to the LCLB and acknowledging that Council will not support any future liquor license applications in the building at 101 East Hastings Street.

Proposed Location

The former Hard Rock Café commercial premises at 686 West Hastings Street are an acceptable location for the new 210-seat cabaret. The previous Restaurant - Class 2 use permitted similar types of live bands and dancing entertainment, and did not generate serious noise issues in the surrounding community.

Staff has concerns, however, that traffic will be disrupted if patrons entering the new establishment are dropped off at the entrance directly fronting onto West Hastings Street. The applicants have indicated that as they wish to cater to the “high-end” of the market, the likelihood is that a significant number of patrons will arrive by limo or, at the very least, will expect valet parking service at the door. It is suggested that this issue be explored and resolved at the development permit application stage. A possible solution could be the placement of temporary, nightly signage on the street or permanent signage adjacent to the entrance indicating a no-passenger zone. The solution to the issue lies within the authority of the operator, and staff expects that, if approved, the operation of the business will not impact upon the traffic flow on Hastings Street.

Implications on Central Business District Liquor Policy Review

Endorsement of this application prior to the conclusion of the liquor policy review for the Central Business District will not influence the outcome of the process. Presently, staff anticipates that the eventual Central Business District Liquor Policy will include a requirement for the approval of all new cabaret proposals to be conditional upon the timely closure or relocation of existing liquor establishments in other problematic locations throughout the City.

RESULTS OF NOTIFICATION

A neighbourhood notification was conducted by distributing one thousand notices in the area (refer to Appendix). Six replies were received in favour and one against. Staff does not feel a public meeting is required for this proposal because of the limited amount of residential dwellings in close proximity to the site and the public benefit derived from the closure of liquor seats in the Downtown Eastside.

COMMENTS

The Police Department has concerns over parking but also notes that the area is extremely quiet in the evenings, and a going concern type of business would be welcome. There is no on street parking in the 600 or adjacent blocks of Hastings Street, which is a major bus route and needs to be kept clear. There are also rush hour restrictions. Experience with the previous business showed there were issues around patron loading and unloading in front of the restaurant, and limos often stood by for extended periods, blocking access by private vehicles and taxis. It is suggested that a passenger zone of two to three car lengths to the east of the premises be established. This should be well marked by a sign stating that it is a “three minute only passenger zone”. The closest parking lots that could be used for valet parking are at Granville/Cordova and Seymour/Pender and both of these have high “theft from auto” statistics.

There are no residences in the block, and it is hoped that any cabaret noise from the rear of 686 W. Hastings Street would not affect the guests at the Delta Hotel or condominium residents on Seymour Street.

The Planning Department has reviewed this application and would note that the site is located within the Downtown (DD) Zoning district (Sub-Area “B”).

The building on this site is listed as a Municipally Designated Heritage Building and is currently approved for Retail, Office, Restaurant-Class 2 and Business School.

“Cabaret” is a use that can be considered in this Sub-Area. However, any proposal to change the use of a portion of this building to provide for a cabaret would require a development permit application. The review process for this type of proposal would include an assessment of the anticipated impacts, such as noise and traffic, on neighbouring properties. As well, an application of this type would be reviewed in accordance with the provisions of the Cabaret and Restaurant Guidelines adopted by City Council on August 9 and October 4, 1988. In addition, proposals of this type are also subject to Council approved policies with respect totime-limited development permits and the requirement for a Good Neighbour Agreement as a condition of any approvals.

Staff in the Central Area Planning division does support the removal of licensed seats from the Sunrise Hotel at 101 East Hastings. However, any conclusion on the suitability of the site at 686 West Hastings for a new cabaret proposal would be determined through the above noted development application review process.

The Vancouver/Richmond Health Board supports the application. The previous occupant (Hard Rock Café) was approved for 340 seats, so all interior concerns such as washrooms, etc., should be covered. There should be no noise concerns other than operational crowd control for those times that there are line ups. Even then, there should be little neighbourhood impact.

The Social Planning Department advises that the application is not in conflict with existing Central Business District policy of analysing each application on a case-by-case basis. It is also consistent with City policy on relocation of cabaret seats, as well as consistent with initial assessment from staff reviewing liquor policy for the Central Business District (as far as cabaret seats transfers are concerned).

The fact that this cabaret is to be located further away from residential areas is consistent with Social Planning historical concerns related to neighbourhood impacts arising from liquor service facilities.

The Housing Centre is supportive of the application.

CONCLUSION
Staff feels that the proposal is a win-win scenario for the City, the applicant, BC Housing and the citizens of the Downtown Eastside. Any potential traffic or operational issues can be resolved at the development permit application stage and with the owners’ cooperation, once the cabaret is operational.

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