Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Chief License Inspector

SUBJECT:

969 Robson Street - Robson Entertainment Inc. (Planet Hollywood)
Restaurant-Class 2 Liquor License

 

RECOMMENDATION

- OR -

CONSIDERATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

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

PURPOSE

Robson Entertainment Inc. are requesting a Council resolution endorsing their application to replace the existing 386-seat with 100-seat patio Restaurant-Class 1 with a 380-seat with 100-seat patio Restaurant-Class 2 at Planet Hollywood, 969 Robson Street.

BACKGROUND

Planet Hollywood has been in operation as a Restaurant-Class 1 since 1996. It is licensed by the Liquor Control and Licensing Branch for 486-seats, which includes a 42-seat holding area and 100-seat patio, distributed between the fifth and sixth floor.

The restaurant is a uniquely defined theme establishment and hosts movie openings and other special events. The proposal is to replace the existing Restaurant-Class 1 with a Restaurant-Class 2 which would permit dining and dancing and amplified musical entertainment. The applicants advise that although no location has been determined for the stage and dance floor, they are confident that any noise generated by amplified entertainment will be contained within the building.

Restaurant-Class 2 Regulations and Policies

The existing hours of operation are Monday through Saturday 11:00 a.m. to 1:00 a.m. and Sunday 11:00 a.m. to 12:00 midnight. The proposed hours of operation are 12:00 noon to 1:00 a.m., seven days a week. Liquor Control and Licensing Branch policy limits liquor service and entertainment for any dining establishment which provides patron participation entertainment to 12:00 midnight. The issue of the hours for a restaurant with an entertainment endorsement for audience participation is a discretionary matter, and the applicant will be seeking an "exercise of discretion" from the Branch. Written confirmation has been received from the Licensing Administrator that the Branch can accept and consider the application as presented with the later closing hour of 1:00 a.m. However, the Branch has given no indication as to whether or not it will support or refuse the request.

A Restaurant-Class 2 is entitled to serve all types of liquor with a full course meal. Music and dancing are permitted. Council policy prohibits exotic dancers in all new liquor licensed establishments and Liquor Control and Licensing Branch policy excludes exotic entertainment where minors are permitted.

Area Surrounding Subject Premises

The subject premises are located in the CD-1 Comprehensive District and surrounded by a mix of retail, hotel, restaurant, office and residential apartment buildings. The nearest apartment building is to the west at 777 Burrard Street (refer to the appendix).

There are two Class `C' Cabarets (387 seats), nine Class `A' Lounges (1796 seats), one Class `D' Neighbourhood Pub (65 seats) and approximately 48 licensed restaurants, but no Class `A' Pubs within the 1000 ft. survey area. The nearest provincial government liquor store is at 1120 Alberni Street.

DISCUSSION

Policy Issues

The applicants are requesting an endorsement for 1:00 a.m. seven days a week. Liquor Control and Licensing Branch policy requires that entertainment in a Restaurant-Class 2 cease at 12:00 midnight.

Staff has not supported later closing hours for Restaurant-Class 2 applications as these establishments are often close to residential uses and later closing would likely adversely affect residents.

Midnight closing is consistent with neighbourhood pub hours, with the exception of Friday and Saturday when most close at 1:00 a.m. It is worth noting that a Restaurant-Class 2 can have a much larger capacity, which means it can afford to provide live band entertainment and, therefore, the potential for noise related disturbances.

What effect the approval of this request may have on the restaurant industry specifically and the broader implications for the liquor industry as a whole within the city is uncertain. Anecdotal experience within the restaurant industry is that the present midnight closing acts as one of the deterrents against operators changing from a Restaurant-Class 1 to a Restaurant-Class 2. Most Class 1 restaurants have 2:00 a.m. closing, and the experience of operators has shown that a significant portion of alcohol sale takes place between midnight and 2:00 a.m. As a result, operators have been hesitant to give up the income generated from the sale of alcohol in favour of providing entertainment and legally allowing patrons to dance. This hesitancy may end if later closing times are permitted.

Should the request be endorsed by Council and approved by the Branch, staff is concerned about the broader implications for the liquor industry in the city. Traditionally, as the entertainment component of a restaurant increases, the operation begins to resemble a cabaret. There are two primary distinctions between a Restaurant-Class 2 and a cabaret, the first being the requirements that food must accompany liquor service.

The second distinction between Class 2 restaurants and cabarets is the closing time. Cabarets are permitted to close at 2:00 a.m. every night except Sunday within the City, as opposed to the existing midnight closing seven days a week for Restaurant-Class 2. Again, anecdotal evidence and experience suggest that the two-hour difference has helped to maintain variety within the city's entertainment industry, and ensures there is no over competition for the same market.

Staff is concerned about over competition within the industry because it typically results in an increase in poor business practices such as selling cheaper drinks, over service, over crowding, poor crowd control and a lower ratio of staff to patrons. This generally creates a greater negative impact on City resources and the surrounding community.

Staff suggests that careful consideration be given to any decision which would result in later closing hours for Restaurant-Class 2 operations as the decision may set a precedent for more applications.

Benefits of Proposal

The approval of the request for a Restaurant-Class 2 at this significant intersection of the downtown should improve the entertainment options within the city.

Negatives of Proposal

There is potential for noise generated by the amplified music and entertainment. However, staff is confident that the operators are committed to containing the sound within the building and the Time Limited Development Permit will ensure minimal impact. Further, an acoustical study is normally required by the Health Department at the Development Permit application stage. This study should ensure that adequate sound dampening measures are implemented.

The applicants are requesting that the entire restaurant be converted to a Restaurant-Class 2. That is 380 indoor seats plus a 100-seat patio. This is a large establishment, and if it is not run in compliance with Liquor Control and Licensing Branch regulations and policies around restaurant liquor service, then it could negatively impact on City resources and the community. Staff feels that in general well-run Restaurant-Class 2 establishments are not
a problem.

RESULTS OF NOTIFICATION

A neighbourhood notification was conducted by circulating 785 notices between May 18 and 22, 2001 (refer to the appendix). Three responses were received, one from the Strata Council President on behalf of apartment owners at 777 Burrard Street, and two independent telephone calls from owners at that address. All expressed their concerns over a potential increase in noise, especially from the patio. Staff does not feel a public meeting is required because of the limited amount of residential dwellings in close proximity to the site.

COMMENTS

The Police Department is not opposed to the application for a Restaurant-Class 2, but does have concerns about extending the closing time beyond 12:00 midnight, which could encourage other restaurants to apply for similar extensions.

The Development Services Department has reviewed the application and notes the site is zoned CD-1 Comprehensive Development.

The building on this site is a Municipally Designated Heritage "A" building. On January 11, 1996, Development Permit Number DE217660 was issued permitting a change of use to Retail and Restaurant-Class 1. Restaurant-Class 2 is a use that can be considered on this site. However, to change the 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 noise concerns.

The Social Planning Department and Housing Centre have no comments.

CONCLUSION

The applicants' request for a Restaurant-Class 2 closing at 1:00 a.m. is a dilemma as staff has strong concerns about the wide spread industry effects of allowing later closing. On the other hand, control through the Time Limited Development Permit provides a level of comfort that the premise will be operated properly.

Staff recommends endorsement of this application with a 12:00 midnight closing and puts forward a consideration item B to allow closing at 1:00 a.m.

NOTE FROM CLERK: APPENDIX A (MAP) NOT AVAILABLE IN ELECTRONIC FORM - ON FILE IN THE OFFICE OF THE CITY CLERK.

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