ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Chief License Inspector

SUBJECT:

622 East Broadway - Seoul Social Club
Class `A' (Social Club) Liquor License

 

RECOMMENDATION

CONSIDERATION

B. THAT Council, having considered the opinions of area residents and business operators of the community as determined by neighbourhood notification and public meeting, defer its decision for a period of not less than one year, pending a revised staff report and the results of a further neighbourhood notification including site signage.

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy is that new Class `A' (Social Clubs) are subject to neighbourhood notification, a public meeting, a Time Limited Development Permit, a Legal Agreement and a Good Neighbour Agreement.

SUMMARY

The applicant is requesting a Class `A' (Social Club) liquor license at 622 East Broadway. Significant neighbourhood opposition has been received both through the neighbourhood notification and public meeting process.

Staff recommends that the application not be endorsed but has offered a consideration item should Council want to defer the decision to allow the applicant an opportunity to prove himself to the community.

PURPOSE

The Seoul Social Club is requesting a Council resolution endorsing its application for a 75-seat Class `A' (Social Club) liquor license at 622 East Broadway.

BACKGROUND

The Seoul Social Club is registered under the BC Societies Act and is operated by an elected Board of Directors. The applicant advises that the club consists of approximately 90 members who pay an annual membership fee of $10. The club currently operates as a non liquor licensed social club on the top floor of a two-storey building at 622 East Broadway. The facilities have a full commercial kitchen for food preparation which the club uses for catering to weddings and other functions. Karaoke is available for entertainment. The club is requesting operating hours of 12:00 noon to 2:00 a.m. seven days a week.

The purpose of the society as proposed by the applicant is to serve as a facility to educate the public about Korean culture along with assisting Korean immigrants in BC through a variety of means and activities. The operation of a social club is viewed as a way to further the society's goals.

Class `A' Club Regulations and Policies

The Liquor Control and Licensing Branch define a club as "an organization incorporated under the laws of British Columbia that has been in continuous operation for at least one year immediately prior to application for a liquor license. A club must have at least 50 members who pay annual membership fees of at least $10.00. The primary purpose of a club must be social, athletic, recreation, fraternal, benevolent, or patriotic in nature, but the primary focus does not preclude profit-making. A club has its own facilities and does not sublet food or liquor service. Under section 25 of the Act, liquor may only be served to club members and invited guests, and section 26 requires guests to be registered upon entry".

Permitted hours of operation are limited to a maximum of 14 hours of continuous service between the hours of 9:00 a.m. and 2:00 a.m., Monday to Saturday and 11:00 a.m. to 12:00 midnight on Sunday.

Area Surrounding Subject Premises

The subject premises are located in a C-2C Commercial District and surrounded by a mix of residential, retail, office and restaurant uses. The neighbourhood consists primarily of residential apartment buildings and one and two family dwellings (see the appendix).

There are approximately four licensed restaurants within the 1000 foot survey area and no cabarets, pubs or lounges. The closest provincial government liquor store is in Kingsgate Mall, 370 East Broadway.

This area of Mount Pleasant has been subjected to a number of social problems over the past few years, particularly prostitution, drug use and drug dealing and fencing of stolen property. Over approximately the past two years, two businesses within the 500 to 700 blocks of East Broadway have been referred for show cause hearings and four have had their business licenses suspended. It appears the area received a number of problem operators who were displaced, likely as a result of increased enforcement in the Downtown Eastside. However, in the past few months the area seems to be holding the status quo due in large to coordinated enforcement by the NIST and a vigilant group of neighbours.

DISCUSSION

Policy Issues

This application is for a 75-seat Class `A' (Social Club) liquor license. The applicant is requesting 2:00 a.m. closing on Sunday. City policy has not yet been established for bar, club or cabaret closing times beyond 12:00 midnight on Sunday. Therefore, no permanent closing time beyond 12:00 midnight on Sunday has been permitted, and at this time staff does not recommend later Sunday closing.

Benefits of the Proposal

The time-limited Development Permit and Legal Agreement provide staff with a level of control over the impact of the club's operation on the surrounding community and overall land use compatibility. The club will provide services to a portion of the Korean community which, the applicant advises, is not currently serviced by existing facilities. Finally, small social clubs which hold occasional functions do not usually have any adverse impact on the surrounding community.

Negatives of the Proposal

The City has no regulations specific to social clubs holding a Class `A' (Social Club) provincial liquor license. In this type of establishment, the City defers to the policies and regulations of the Liquor Control and Licensing Branch. Unfortunately little enforcement of these regulations is undertaken by the Branch, which relies heavily on voluntary compliance and, therefore, the potential for abuse with this type of license is considerable. It is easy for a social club to operate as a pseudo pub/cabaret and still technically satisfy the written regulations. However, clubs operating in this manner would certainly not meet the intent and spirit with which the liquor license was issued. Furthermore, a club operated in this manner at this particular location, even if it is well run, would likely have an impact on the surrounding neighbourhood. A poorly run club operated as a pseudo cabaret could have a disastrous effect on the community and on police and inspection resources.

Staff has significant concern about the limited information provided with the application.
Further information was requested from the applicant to help determine how the club would be operated to remain financially viable, but no further details were submitted prior to finalizing this report.

The proposed club will function as a "destination" spot for members of the Korean community and not draw on local patrons. As a result the club will have a greater impact on area residents in terms of increased traffic flow, parking demands and nuisance noise related issues. This impact on the community will likely be greater than a neighbourhood pub of similar size because a neighbourhood pub tends to draw a good portion of its clientele from local residents and must close at 12:00 midnight Sunday to Thursday and 1:00 a.m. on Friday and Saturday.

In recent years the Mount Pleasant area has been impacted by an increase in problem business operators, drug users, drug dealers and prostitutes. Staff agrees with area residents that the club could act as a focal point for these activities. This is not to say that the operator would participate in these activities, but the late closing time may provide undesirables a legitimate reason for remaining on the street. This could result in a further entrenchment of illegal street activity in the area.

RESULTS OF NOTIFICATION

Between February 26 and 27, 2001, 610 neighbourhood notifications were delivered in the area, (refer to the appendix). Thirty-eight responses were received opposing the application and one in favour. Five additional opposing responses were received from the Vancouver School Board, Board of School Trustees, and staff and parents representing Nightingale Elementary School.

A private survey covering predominately the 500 to 700 blocks of East Broadway was carried out by the applicant. This resulted in the submission of a petition indicating 67 signatures in favour of the social club.

A public meeting was held on March 13, 2001. This was attended by the applicant, his agent and lawyer and 29 people from the neighbourhood, including two representatives of the Vancouver School Board and one from Nightingale School.

Many concerns were expressed by the residents about the appropriateness of approving a new liquor licensed establishment which would provide no direct benefits to the Mount Pleasant neighbourhood. It was noted that members of the Seoul Social Club do not live in the community. There was also concern that there could be abuse of the guests' sign-in or membership requirement, thereby changing the benign nature of the club.

The residents unanimously agreed that the proposal would increase late-night noise levels and exacerbate parking problems.

It was felt that the "destination" orientation of the club as opposed to a neighbourhood focus would contribute to the aforementioned issues. While the area residents do appreciate that this application is for a private social club, many are apprehensive that it could encourage the criminal element to loiter around the premises late into the night and early hours of the morning.

The hours of operation were discussed and people were adamantly opposed to the club's, or any other establishment's, request to operate until 2:00 a.m. The premises back onto a residential street. A resident suggested that for a trial period of approximately one year, the club could apply for special occasion licenses to cover functions, thereby allowing time to monitor the premises during this period. Approximately 19 of those attending indicated they would be agreeable to this compromise, as long as the requested hours of operation were amended and the club closed earlier in the evening.

COMMENTS

The Police Department advises that this application is made more problematic by the already existing street crime, in particular the prostitution and drug dealing present in the 600 block of East Broadway. In addition, the design of this club, with its small private rooms, lends itself to the types of criminal activities found in other similar nearby establishments.

The Planning Department has reviewed the application and notes that the site is located within the C-2C zoning district.

The building is currently approved for retail use on the floor, and Development Permit No. DE405464 was issued on January 12, 2001, thereby permitting alterations and a change of use on the second floor as a club use, for the exclusive use of the Seoul Social Club. Approval is limited in time and will expire on January 12, 2002, unless extended in writing by the Director of Planning.

"Club", as defined in the Zoning and Development By-law requires that such premises be operated by a non profit society, association or corporation organized solely for the promotion of some common object, and which is operated for club members and their guests only.

The development permit also includes a letter from the operators indicating that they will not advertise to the public and will operate within the above-noted definition.

Although karaoke is not specifically identified on the approved plans, a previous development application did include an acoustical evaluation of the building and determined that a reasonable level of music entertainment associated only with a small club operation, would not likely result in negative effects on the surrounding neighbourhood.

During the one year approval period, staff will monitor the operation in order to evaluate any adverse effects on the surrounding community. Also, prior to any extension of the permit approval, the surrounding property owners will be notified and their comments will be considered in determining whether an extension is appropriate.

The Vancouver/Richmond Health Board issued a Food Establishment permit for a 50-seat restaurant on January 19, 2001. An inspection of January 26, 2001 found conditions to be satisfactory. Although there are no recorded complaints of noise or other environmental concerns, the establishment must be within the parameters of the Noise Bylaw as there is a residential area behind the premises and sound proofing may be required. An increase in seating to 75 would require additional washrooms.

The Social Planning Department and the Housing Centre do not support this application due to the potential negative impact on the community.

The Vancouver School Board comments as follows: "The subject site is located three blocks from Mount Pleasant Elementary and four blocks from Nightingale Elementary Schools. It is our understanding that, if the Class `A' liquor license is granted, the Seoul Social Club would be permitted to serve alcohol to club members and guests between the hours of 12:00 p.m. and 2:00 a.m. seven days a week.

Children, parents and school staff at Mount Pleasant and Nightingale Elementary Schools have expressed ongoing concerns about personal safety, substance abuse and criminal activity in the local area. In accordance with VSB policy (Incompatible Land Uses Near Schools), we would like to bring your attention to the following concerns related to the close proximity of the proposed liquor license to local schools.

CONCLUSION

Given the degree of opposition in the community and the sensitive issues in the area, staff does not recommend endorsement of the application. However, it is suggested that a trial period with temporary special occasion liquor licenses is an option to outright refusal at this time.

NOTE FROM CLERK: Appendix (Map) not available in electronic form - on file in the Office of the City Clerk.

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