ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning & Environment

FROM:

Chief License Inspector

SUBJECT:

2360 Commercial Drive - KCC 229 Holdings Ltd.
Caravela Restaurante - Restaurant-Class 2

 

RECOMMENDATION

CONSIDERATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council Policy is that a new Restaurant-Class 2 is subject to a Time-Limited Development Permit, Good Neighbour Agreement, neighbourhood notification and, in some circumstances, a public meeting and telephone survey.

PURPOSE

KCC 299 Holding Ltd., doing business as the Caravela Restaurante, is requesting a Council resolution endorsing their application to replace the existing Restaurant-Class 1 with a Restaurant-Class 2 at 2360 Commercial Drive.

BACKGROUND

The Caravela Restaurante has been in operation since approximately May 1999, and is licensed by the Liquor Control and Licensing Branch for 130 seats, a 15-seat holding area and eight-seat patio. The applicant advises that the restaurant offers fine dining with an emphasis on ethnic Portuguese style food and hospitality to the general community.

The applicant states that entertainment is often provided by a violinist or singing duo playing and singing Portuguese and international songs. When patrons hear the music and singing, they respond by wanting to dance which, under current Restaurant-Class 1 regulations, is not permitted. For this reason, the applicant advises, revenue is lost to other establishments when patrons are made aware that dancing is not allowed. The applicant also advises that enquiries are often made by people who wish to hold functions in the restaurant marking baptisms, weddings and birthdays, but as dancing is an important part of the celebration of these events in Portuguese culture, they cannot cater to these prospective customers. The applicant believes that being able to provide the option to dance would enhance the restaurant's cultural environment, and save the livelihood of the family owned and operated establishment and its employees.

The operator advises that the restaurant's clientele consists of older people who are considerate of the surrounding neighbourhood. The applicant circulated a petition in the residential and commercial area, a copy of which is on file, and received a positive response.
The current hours of operation are Monday to Saturday 11:00 a.m. to 1:00 a.m. and Sunday 11:00 a.m. to 12:00 midnight.

Restaurant-Class 2 Regulations and Policies

A Class `B' 2 Restaurant is entitled to serve all types of liquor when accompanied with a full course meal. All types of entertainment are permitted except games and exotic dancers. Liquor service is limited to a maximum of 14 hours of continuous service between 9:00 a.m. and 2:00 a.m. seven days a week.

Liquor Control and Licensing Branch policy requires liquor service, entertainment and dancing to cease at 12:00 midnight each night of the week. The City of Vancouver License By-Law does not regulate hours of operation for restaurants and defers to the authority of the Liquor Control and Licensing Branch when a liquor license is issued.

Area Surrounding Subject Premises

The subject premises are located in a CD-1 zoning area, close to the intersection of Commercial and Grandview Highway, and the surrounding neighbourhood is mainly residential and retail. The survey area includes a Buddhist Temple, one church and a funeral home. The closest residence is directly behind the restaurant. There is one 595-seat Class `A' Lounge at the Royal Canadian Legion 2205 Commercial Drive and approximately eight other licensed restaurants within the survey area. There is no provincial government liquor store in close proximity (refer to the appendix).

DISCUSSION

Policy Issues

The applicant has indicated there is no wish to have large amplified bands, only the ability to allow patrons the opportunity to dance to the existing style of entertainment, that is non amplified instruments played by one of two entertainers, which is consistent with the existing Restaurant-Class 1 definition.

Staff has received written confirmation from the Liquor Control and Licensing Branch that the Branch could place specific limits on the liquor license as determined by a Council endorsement. The Branch has also indicated that it would be possible for Council to request that the entertainment endorsement not be transferable to a new owner.

Restaurant-Class 2 Hours of Operation Policy

The restaurant's current hours of operation are Monday to Saturday, 11:00 a.m. to 1:00 a.m.,
and Sunday 11:00 a.m. to 12:00 midnight. Liquor Control and Licensing Branch policy limits closing time of the B-2 liquor license classification to 12:00 midnight. Because of the close proximity of residential buildings, staff recommends a 12:00 midnight closing.

Potential Impacts

A Restaurant-Class 2 operates similarly to a Restaurant-Class 1 with respect to food and liquor service. When converting to a Restaurant-Class 2, the significant change centres on the entertainment endorsement. The focus of the restaurant is on live music and dancing, which changes the style to one more closely resembling a cabaret. Therefore, community impacts related to noise disturbances and alcohol service is normally increased.

Staff is concerned that should the applicant focus the majority of his business on special events and private functions, then these activities may create a greater impact on the surrounding community. This impact would likely be in the form of nuisance noise due to patrons arriving and leaving the restaurant as well as parking issues on the adjacent streets. However, staff feels that with the Time-Limited Development Permit, coupled with the operator's cooperation, these potential issues can be mitigated.

Benefits of Proposal

Should the application be endorsed, the enhanced amenities should strengthen the financial viability of the business on a section of Commercial Drive in need of stable businesses.

RESULTS OF NOTIFICATION

A neighbourhood notification was conducted by circulating 700 notices on May 9, 2001 (refer to the appendix). Four responses were received, three opposing and one in favour of the proposal. The three people who oppose the application cite the potential for an increase in noise from the music and patrons leaving the area late at night. Staff does not feel a public meeting is required because of the limited response to the notification and the unnecessary added expense and delay for the applicant.

COMMENTS

The Police Department advises that the restaurant does not cause any concerns and it supports any business endeavour that benefits the community.

The Development Services Department has reviewed this application and records indicate the site is zoned CD-1 Comprehensive Development District.

On May 10, 1978, Development Permit Number DE79396 was issued to use a portion (3,991 sq.ft.) of the main floor of this existing building as a Restaurant - Class 1 with an ancillary holding bar. A Restaurant - Class 2 can be considered on this site, but a change of use will require a development application. As part of the review process, staff would include an assessment of the anticipated impacts on nearby sites, and in particular any residential uses. An application of this type would also be reviewed in accordance with the provisions of the Cabaret and Restaurant Guidelines adopted by City Council on August 9 and October 4, 1998.

The Vancouver/Richmond Health Board has no acoustical or environmental concerns with this application.

The Social Planning Department feels the application is supportable as a business that attracts a family type clientele would probably be good for the area. Residents are known to refer to this section of Commercial Drive as the "dead zone".

The Housing Centre has no particular concerns.

The Vancouver School Board was advised of the proposal but, to date, no response has been received.

The Cedar Cottage Neighbourhood Safety Office is in favour of the proposal. The applicant has discussed the change in license type with them and the coordinator advises that it would be nice to keep this upscale restaurant in the neighbourhood.

CONCLUSION

Staff recommends that Council endorse the application for a Restaurant-Class 2. The requirement for a time-limited Development Permit should provide the necessary controls to ensure the restaurant does not adversely impact on the surrounding community. Staff also feels it is not necessary to restrict the types of entertainment permitted, given the response to the neighbourhood notification.

ATTACHMENTS THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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