Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Standing Committee on Planning and Environment

FROM:

Chief License Inspector

SUBJECT:

1 West Cordova - Sunview Villa Ltd. - Restaurant-Class 2

 

CONSIDERATION

i. A Time Limited Development Permit for the exclusive use of Sunview Villa Ltd., and its Directorship as of April 11, 2002;

GENERAL MANAGER'S COMMENTS

COUNCIL POLICY

On November 6, 1990, Council approved the following recommendations of the Vancouver Liquor Licensing Commission for the Downtown Eastside and Gastown areas:

On April 22, 1993, Council reviewed and evaluated the impact of Council's policy and recommended:

PURPOSE

Sunview Villa Ltd., doing business as Gastown's Best Steak and Rib Villa, is requesting a Council resolution endorsing its application to replace the existing 120-seat with 24-seatpatio Restaurant-Class 1 with karaoke with a restricted use Restaurant-Class 2 at 1 West Cordova Street.

BACKGROUND

On February 15, 2001, Council reviewed the original application by Sunview Villa Ltd., and recommended:

In the initial report staff recommended the request for a Restaurant-Class 2 not be endorsed, based on the existing Council moratorium for Gastown and the negative responses to the neighbourhood notification. The objections raised by the respondents centred around the applicants' request for a 2:00 a.m. closing and the fact that live bands with amplified musical instruments are permitted in a Restaurant-Class 2.

At the February 15, 2001 Council meeting, the applicants indicated they were only seeking Council's endorsement to permit dancing and the ability to continue karaoke entertainment. The applicants had hoped to obtain Council's support for a later closing time for liquor service with the enhanced entertainment. The applicants regretfully accepted that any potential support for the application was contingent on a 12:00 midnight closing, seven days a week.

Staff was asked to report back on the feasibility of this potential compromise and has since researched the issue with both the Liquor Control and Licensing Branch and the City's Legal Services Department. The Liquor Control and Licensing Branch confirmed that it is possible to put restrictions on an entertainment endorsement and to restrict the transfer of this endorsement to other licensees. The opinion from Legal Services is that the Director of Planning could, at Council's request, place limitations on an approved use through conditions on the development permit. Legal Services also felt that it is possible to limit the approval to this particular applicant, effectively preventing the transfer of the development permit approval to a separate entity. Furthermore, it is felt that for this particular situation, a "lifting of the corporate veil" is supportable, and condition (vi) effectively ties this approval to the present owners/directors of the company.

Finally, Legal Services has recommended that the development permit conditions be included as conditions of the business license, and the good neighbour agreement. This will ensure that any appropriate action can be taken at a later date should the terms of the endorsement be violated.

Gastown's Best Steak & Rib Villa currently holds Restaurant-Class 1 with karaoke and Dining Lounge/Room business licenses. A restaurant has been at this location for many years. The present hours of operation are 11:00 a.m. to 12:00 midnight seven days a week

The applicant proposes to provide a unique facility that would cater to the Filipino community by serving Filipino food and playing music popular in the Phillippines for dancing. They also hope to attract tourists along with the crews from cruise ships while they are docked in Vancouver.

The applicants received and served an eight-day suspension by the Liquor Control and Licensing Branch in February of this year.

Area Surrounding Subject Premises

The subject premises are located in the HA-2 Historic Gastown zoning district and the surrounding neighbourhood is a mixture of retail, office, restaurant, cabaret, hotel lounge/pub and residential uses. There are a number of low income housing units within a 1000 foot radius.

There are ten Class `A' Pubs, (1684 seats), eight Class `C' Cabarets (1689 seats), one Class `A' Lounge ( 45 seats) and approximately 15 liquor licensed restaurants within a 1000 foot radius of the site (refer to the appendix).

Restaurant-Class 2 Regulations and Policies

A Class `B-2' (Restaurant-Class 2) 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. Permitted hours of liquor service are 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 that liquor service, entertainment and dancing cease at 12:00 midnight every night of the week. The City of Vancouver License Bylaw 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. However, it should be noted that this premise lies within the Business Premises Regulation of Hours Bylaw area and, therefore, must be closed between 2:00 a.m. and 6:00 a.m.

DISCUSSION

Policy Issues

Staff did not support the original application to change the use to a Restaurant-Class 2 as the request is contrary to the existing Council moratorium policy for Gastown. At the February 15, 2001 Council meeting the applicants indicated that the moratorium policy should be lifted in favour of their application because they wish to cater primarily to their own ethnic group, and that dancing and singing play a significant role within the Filipino entertainment culture. Staff feels with the restrictions on the development permit and business license, the full potential impact of a Restaurant-Class 2 on the surrounding community should be mitigated.

Staff is concerned that approval will set a precedent for other applicants looking for similar treatment to challenge Council moratorium policy for Gastown and other areas throughout the City.

Restaurant-Class 2 Hours of Operation Policy

The applicants were requesting a 2:00 a.m. closing seven days a week, but indicated at the February 15, 2001 meeting that they would be content with a 12:00 midnight closing time. Liquor Control and Licensing Branch policy limits closing time of the B-2 (Restaurant-Class 2) liquor license classification to 12:00 midnight. The 12:00 midnight closing for Restaurant-Class 2, is particularly important when these establishments are in or adjacent to residential areas.

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 is on live music and dancing, which changes the style to one more closely resembling a cabaret. This normally results in increased community impacts related to noise, disturbances and increased alcohol service. The 12:00 midnight closing could facilitate "bar-hopping" in the area at closing time, which increases late night street activities.

Benefits of the Proposal

Staff does not dispute that there may be a need to support the Filipino market, nor the size of this market. The restaurant has operated with the karaoke entertainment for the pastcouple of years without any apparent noise complaints from area residents. Staff suggests that the addition of dancing will not adversely increase noise in the neighbourhood.

RESULTS OF NOTIFICATION

A neighbourhood notification was originally conducted and 827 notices were circulated in the notification area as part of the original report (refer to the appendix). The results of the notification showed that nine respondents were against the proposal and no responses were received in favour. Responses from the area residents indicate that they feel the noise levels within Gastown are already intolerable, and that they would not want to have anything approved in the area that could potentially add to the noise, particularly live amplified bands.
Council's instructions in February of last year were to conduct a public meeting in addition to researching what was possible through the Zoning and Development Bylaw and the Liquor Control and Licensing Branch. The results of that research indicated it would be possible to limit the Restaurant-Class 2 use to these applicants and dancing and karaoke entertainment only. Staff felt it would not be necessary to have the applicant incur the extra expense and time required to conduct the public meeting, particularly given the time lapse endured to this point. Instead staff requested the City Clerk's office to notify all of the previous respondents about the revised report and the Council meeting.

COMMENTS

The Police Department does not support the application. They are continually dealing with people in the Downtown Eastside and Gastown areas who are under the influence of alcohol. Requests have been made to alter City policy and the department does not endorse any of them. If police supported this application, it would definitely set a precedent for other licensed premises wishing to amend their liquor licenses.

The Development Services Department has reviewed the application and noted that the site is located in the HA-2 (Gastown Historic Area). The building on this site is listed as a "B" building on the Vancouver Heritage Register and is also a Provincially Designated Heritage Building.

The main floor of the existing building is currently approved as a Restaurant-Class 1, with a time-limited approval (DE404836) for karaoke entertainment associated with Restaurant-Class 1 (expiring on March 28, 2002, unless extended by the Director of Planning). Any proposal to change the use from Restaurant-Class 1 to Restaurant-Class 2 would require a development application.

On June 19, 1997, City Council approved new policies for the Theatre Row Entertainment District and other areas related to Cabarets and Restaurant-Class 2 establishments. These policies are included in the Council-adopted Cabaret and Restaurant Guidelines and state, in part, that for the Downtown Eastside and Gastown area, new liquor licenses for Cabaret or Restaurant-Class 2 will not be permitted.

This policy, in effect, places a moratorium on any new Restaurant-Class 2 establishments in these areas, and on December 20, 2000, the Gastown Historic Area Planning Committee discussed this proposal and concluded that it did not support the change to a Restaurant-Class 2 and, further, the Committee supports the continuation of the moratorium.

In keeping with Council policy regarding establishments of this type within this area of the City, the Development Services Department does not support this proposal.

The Vancouver/Richmond Health Board is concerned over the increase in noise.

The Social Planning Department, while acknowledging the ability to place conditions on the license is useful, still has concerns about approving a change to the license, given the moratorium and the concerns expressed by GHAPC and the Safety Office.

The Housing Centre does not support this application because it is contrary to Council's moratorium policy. It could also lead to increased noise and disruption to residential neighbours due to the music.

The Gastown Community Safety Society would support the change from karaoke to live entertainment but not the change in hours.

CONCLUSION

Staff is concerned about the precedent this request may set for other applications in the city and Gastown in particular. There are also concerns related to alcohol availability in the Downtown Eastside and Gastown and the potential noise impacts. It is also anticipated that a number of similar applications would be filed by other establishments with the endorsement of this application. However, given the legal tools and limitations provided through conditions on the provincial liquor license, development permit and business license, staff feels the application is supportable and submits this item for Council's consideration.

NOTE FROM CLERK: Appendix A (map showing notification boundary) is not available in electronic form - on file in the Office of the City Clerk.

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