Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Chief License Inspector

SUBJECT:

322 Davie Street - Opus Hotel Holding Corporation
Class `A' Lounge

 

RECOMMENDATION

CONSIDERATION

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

Council policy is that a new Class `A' Lounge is subject to a Time Limited Development Permit, Good Neighbour Agreement, neighbourhood notification and, in some circumstances, a public meeting.

Council policy, implemented as a result of the Granville Street Theatre Row Liquor Policy review, instructed staff to delete the cabaret use from the Yaletown Historic Area District Schedule (HA-3), to limit new hotels in the 1100 and 1300 blocks of Granville to a maximum of 125 Class `A' liquor license seats and to delete cabaret and neighbourhood pubs as permitted uses on these blocks.

PURPOSE AND SUMMARY

Opus Hotel Holding Corporation is requesting a Council resolution endorsing their application for a 140-seat Class `A' Lounge liquor license in the new Opus Hotel, currently under construction at 322 Davie Street. The seats would be distributed between two main areas: one consists of three adjoining spaces (the Bar, Bistro, Garden Room) and the other the Lobby Lounge,

The proposed 54-seat Class `A' (Lobby) Lounge area is supported by both staff and the majority of area residents. The nature of "lobby" lounge facilities and the suggested conditions as part of the endorsement should ensure minimal negative impact on the community.

However, both staff and a significant number of the immediate area residents are concerned about the potential negative impacts from the proposed larger 86-seat Class `A' (Bar/Bistro) Lounge licensed area. The applicant is requesting the same 2:00 a.m. closing time also for this area. The 2:00 a.m. closing time for this larger combined lounge and restaurant area (145-seats in total) was of particular concern to area residents. The larger area and closing time are also a significant concern to staff because of Council's policy to deter and eliminate late night uses from this growing high density residential area.

Consideration item C has been put forward as a reasonable compromise between the applicant's request and the residents and staff's concerns about the larger late night facility.

BACKGROUND

Applicant's Proposal

Opus Hotel Holding Corporation is currently constructing a 55,000 sq.ft., seven-storey, 97-suite boutique style hotel at the intersection of Davie and Hamilton Streets. The projected date for completion and occupation is May 2002. Entertainment in the 54-seat Lobby Lounge would be restricted to two musicians. All pedestrian entrances/exits would be from Davie Street. A secondary entrance/exit to the Class-1 Restaurant would be restricted to entrance only after 1:00 a.m., and, except for emergency purposes, all exiting would be through the hotel lobby.

An initial application included a Class `A' Public House and patio. However, following a public meeting with neighbourhood residents and business operators, the application was amended to include only a 140-seat Class `A' Lounge with two distinct areas and no patio. The patio area may be reconfigured to meet the municipal and provincial regulations for a smoking room.

Site and Area.

The site is located in the Yaletown District. During the early to mid-nineties, this area and the remainder of Downtown South formed an integral part of the staff and public discussions surrounding the creation of the Granville Street Theatre Row Entertainment District. As the residential component of these neighbourhoods continue to grow, it is vital to encourage existing liquor licensed establishments to relocate and to restrict or eliminate the possibility of new late night uses opening in the area.

A number of Zoning Bylaw changes were implemented to achieve these goals, the most notable being the elimination of cabaret as a permitted use from much of this area.

Class `A' Lounge (Hotel) Regulations and Policies

Current Liquor Control and Licensing Branch regulations permit a Class `A' Lounge to operate a maximum of 14 hours per day, between the hours of 9:00 a.m. and 2:00 a.m. seven days a week.

The hours of operation requested for the lounges are 12:00 noon to 2:00 a.m. seven days a week. However, Council policy has not been developed with respect to 2:00 a.m. closing on Sunday, and staff does not recommend that Council endorse the request for Sunday closing beyond 12:00 midnight.

The application meets all requirements set out by Liquor Control and Licensing Branch policies for a new hotel.

Area Surrounding Premises

The subject premises are located in a CD-1 zoning district, at the intersection of Davie and Hamilton Streets. The surrounding area is a mixture of residential apartments, cabarets, restaurants, retail, office, recreational and park uses. The closest residential units are located directly east across the rear lane and west across Hamilton Street.

Within the survey area are three Class `C' Cabarets (933-seats), one Class `D' Neighbourhood Pub (65-seats) and approximately 23 licensed restaurants. There is no provincial liquor store in the immediate vicinity.

DISCUSSION

Policy Issues

The Downtown South area, including Yaletown, was a significant focus of the creation of the Granville Street Theatre Row Entertainment District. One of the primary objectives of that liquor policy review was to encourage the relocation of cabarets out of the area and prevent the opening of new late night uses in this emerging high-density residential neighbourhood.

This application, given the request for 140 Class `A' Lounge seats, and the proposed 2:00 a.m. closing time, is contrary to the above policy. A small establishment in conjunction with a full-service hotel development could be exempt from this policy.

Staff could support a 65-seat or less Lobby Lounge with 2:00 a.m. closing, as this would be consistent with the policy and would facilitate hotel operations. However, larger Class `A' licensed facilities with 2:00 a.m. closing can, and often do, operate similarly to a cabaret. Thus, while a larger facility might be permitted, it would be contrary to the intent of Council policy and the Zoning District Schedules.

A related secondary policy issue is to consider Class `A' Lounge/Pub applications with a maximum of 125-seats. While this policy specifically referred to the 1100-1300 blocks of Granville Street, staff feels that it is equally relevant with respect to his application. At the time, staff could not have anticipated that a CD-1 rezoning application would be made for a hotel in Yaletown.

The applicant is proposing 140 Class `A' Lounge seats in total in conjunction with a 59-seat Class B-1 Restaurant. The proposal is 15 seats over Council's upper limits, and any approval over this figure would likely set a precedent for subsequent applications. It should also be noted that fire capacity and other building occupant load calculations would not be completed until the permit processing stage.

Benefits of Proposal

Licensed facilities in association with full-service hotels typically do not create policing or community impact issues. However, recent developments within the industry have revealed that this belief may no longer be true.

Traditionally many hotel facilities were operated as "beer halls, strip clubs or lobby lounges". Over the past few years there appears to be a trend toward hotel liquor licensed facilities converting to a nightclub or cabaret type of operation. As a result, complaints and policing issues appear to have increased with respect to businesses operating in this manner. This is further compounded by the trend for hotels to lease bars to independent third parties.
It appears that police and community impact issues are mitigated best when access to and from the establishment is internalized, usually through the hotel's main lobby. This restriction forces the hotel to ensure the integrity of their operations by self policing their own or tenant's bar operations. The present floor layout would allow for both lounges to be self policed through the hotel lobby.

One other positive factor is the applicant indicates that the lounge and restaurant facilities will be operated by hotel staff. Again, anything that further integrates the liquor facilities into the hotel's regular operations appears to help mitigate negative impacts from the establishment. However, staff is not aware of any enforcement tool that could prevent a hotel from leasing the bar facilities to a third party.

The lounge and restaurant will provide some active daytime use in that section of Yaletown for the enjoyment of area residents, workers and business operators.

Negatives of Proposal

The policy issues cited earlier are significant negative factors for the application as proposed, the primary issues being the 2:00 a.m. closing time and the size of the venue at 140-seats. A 2:00 a.m. closing time, seven days a week for all licensed areas is not compatible in a high density residential neighbourhood. As noted earlier, a small lobby lounge with a 2:00 a.m. closing would not likely impact negatively on the surrounding community. Furthermore, staff agrees that a lobby lounge with a late closing time is a necessary and reasonable component of a hotel's operations. However, staff contends that a larger facility with the same late closing time is not necessary for the hotel's operation and that any approvals for a closing time beyond 12:00 midnight would likely only benefit the hotel and substantially increase the potential negative impacts on the surrounding residents.

Staff is also concerned about the concentration of seats on this particular block in such a densely populated residential neighbourhood. The proposed site is directly adjacent to an existing 234-seat cabaret which presently closes at 2:00 a.m. Monday through Saturday and 12:00 midnight on Sunday. This venue has been the cause of a number of complaints from area residents over the past few years.

Staff and area residents are very concerned about the potential for additional liquor seats in the area which will exacerbate what many residents consider an already intolerable situation. The application as proposed could place on the streets at closing time as many as 200 more people, (the total of all licensed seats, lounge and restaurant).

The applicant has proposed that the hotel security staff monitor the street adjacent to their property at closing to mitigate, as much as possible, any problems that would be of concern to the surrounding residents. While staff admits this action would be beneficial, there is no enforcement tool requiring the practice to be maintained in the future. Furthermore, there are significant liability issues when employees are off the work site property, particularly when dealing with people under the influence of alcohol. As such, staff is unclear as to how long the hotel would maintain this program.

Street noise at closing time is one of the most significant problems for area residents. Staff feels that should Council support the additional lounge seats, the hours of operation for these seats are staggered, relative to the Lobby Lounge and the adjacent cabaret. A 12:00 midnight closing should provide a sufficient break between the other licenses. Staff further suggests that Council request the Liquor Control and Licensing Branch to approve similar hours of operation for the adjacent restaurant seating area.

RESULTS OF NOTIFICATION AND PUBLIC MEETING

A neighbourhood notification was conducted by circulating 1580 notices in the survey area (refer to the appendix). Twenty-eight responses opposing the application were received from people who reside in close proximity to the site. The applicant organized a letter writing campaign which generated 186 form letters in favour. A breakdown of those in favour showed that 52 were residents, 121 area business owners/operators, four business managers and nine property owners. The majority of the property owners are not neighbourhood residents. An additional 23 indicated they were Yaletown area residents, but gave addresses well outside the survey area. Responses in favour were also received from some employees of area businesses, but these were not included in the final count. The applicant also held a street-survey, and submitted a petition with 95 signatures in support from Yaletown area residents. There was no indication how many were opposed.
A public meeting, attended by 42 people, was held on November 8, 2001 at the Roundhouse Community Centre. The main issue raised by residents who oppose the application is the inevitable increase in noise. Many people referred to the continued noise and disruption caused by the proximity of the 234-seat Bar None cabaret at 1222 Hamilton Street. (City records indicate a cabaret has operated at this location since October 1975). It was felt that the current situation was intolerable and additional seats would only exacerbate street problems.

In general, most respondents to the notification and those attending the public meeting were supportive of the inclusion of the hotel in their Yaletown neighbourhood. There did not appear to be any significant concern regarding the small lobby lounge.

However, the area residents who were against the proposal were opposed to the larger facility and the 2:00 a.m. closing time. Discussions, particularly during the public meeting, did reveal that area residents would support a larger Class `A' Lounge facility, provided the closing time was earlier. A 12:00 midnight closing time appeared to be generally acceptable to those residents participating in the meeting.

COMMENTS

The Police Department notes that this application is for new seats in the district and not transfers. This is a very dense residential area and the hotel is immediately adjacent to the sometimes problematic Bar None. This raises concerns about the adequacy of police resources to cope with additional seats.

The Development Services Department records indicate that the site is zoned CD-1 (Comprehensive Development District). On July 17, 2000, Development Permit DE403474 was issued to allow the construction of a seven-storey hotel development containing 98 units and a Restaurant-Class 1 with three levels of underground parking.

On June 13, 2001, a minor amendment (Development Permit DE4054781) was issued to allow interior and exterior alterations to the existing hotel, the addition of a Restaurant-Class 1 space at the east corner of the first floor, fireplaces to the third to seventh floors and a terrace/spa on the roof, reduction of the number of units from 98 to 97, and off-street parking from 39 to 32 spaces.

A review of records indicates that the proposed lounge does not form part of the approved Development Permit and, therefore, it will be necessary for the applicant to make a minor amendment application for the proposed changes.

The Vancouver/Richmond Health Board advises there is a history of serious ongoing noise problems in this neighbourhood. Many of the problems originate from the Bar None cabaret immediately adjacent to the hotel site.

The area is densely populated with residences facing the hotel. Residents are severely affected by the noise generated by patrons leaving the cabaret. Police intervention is frequently required throughout the week, typically around 2:00 a.m. when the cabaret closes.

The Environmental Health Division does not recommend approval until the noise issue is satisfactorily addressed.

The Social Planning Department does not support the application because it involves a considerable number of seats and is contrary to the plan to reduce late night uses in this area. The Department also notes that there is a non market housing project at 238 Davie Street.

The Housing Centre has no comments.

CONCLUSION

Staff recommends that Council endorse the 54-seat Class `A' (Lobby) Lounge portion of the application as these facilities do not generally cause any serious neighbourhood issues. Due to area resident concerns and existing Council policy, staff is recommending that the 86-seat Class `A' (Bar/Bistro) Lounge portion of the application be refused. However, staff has put forward a consideration item (C) as an alternative to outright refusal of the (Bar/Bistro) Lounge area. Staff hopes that the suggested consideration item with conditions addresses the area residents' concerns.

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

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