ADMINISTRATIVE REPORT

TO: Standing Committee on Planning and Environment

FROM: Chief License Inspector

SUBJECT: 403 East Hastings Street - Patricia Hotel

RECOMMENDATION

A. THAT Council, having considered the opinion of area residents and business operators of the community as determined by neighbourhood notification and existing Council liquor policy for the Downtown Eastside District, does not endorse the application by 338186 B.C. Limited for a change in hours of operation from 9:00 a.m. to 11:00 p.m. Monday to Saturday and 11:00 a.m. to 11:00 p.m. Sunday to 9:00 a.m. to 1:00 a.m. everyday for the Liquor Primary liquor license (Hotel Lounge) at the Patricia Hotel, 403 East Hastings Street.

Or

CONSIDERATION

B. THAT Council, having considered the opinion of area residents and business operators of the community as determined by neighbourhood notification, potential noise, other community impacts, including potential migration of patrons from other establishments, and existing Council liquor policy as outlined in the report, endorses the application by 338186 B.C. Limited for a change in hours of operation from 9:00 a.m. to 11:00 p.m. Monday to Saturday and 11:00 a.m. to 11:00 p.m. Sunday to 9:00 a.m. to 12:00 Midnight everyday for the Liquor Primary liquor license (Hotel Lounge) at the Patricia Hotel, 403 East Hastings Street subject to the following conditions:

Or

C. THAT Council, having considered the opinion of area residents and business operators of the community as determined by neighbourhood notification, potential noise, other community impacts, including the migration of patrons from other establishments, and existing Council liquor policy as outlined in the report, endorses the application by 338186 B.C. Limited for a change in hours of operation from 9:00 a.m. to 11:00 p.m. Monday to Saturday and 11:00 a.m. to 11:00 p.m. Sunday to 9:00 a.m. to 12:00 Midnight everyday for the Liquor Primary liquor license (Hotel Lounge) at the Patricia Hotel, 403 East Hastings Street subject to the following conditions:

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of A based on the advice of the Chief License Inspector that non-support for the request is consistent with the current Council policy for the Downtown Eastside moratorium area. However, staff note that the results of the public consultation were roughly balanced (3 e-mails, one phone call and a 25 signature petition opposing the application versus one phone call and petition with signatures from 19 area residents and 120 Vancouver residents in support of the request) and there is an opportunity to obtain a public benefit through an employment contract with the operator to hire a percentage of his staff from area residents in exchange for Council support for a portion of the applicant's original request (CONSIDERATION B).

I
POLICY

On November 6, 1990, Council approved a recommendation that no new liquor licenses or amendments to existing licenses to increase seating capacity or extend hours of sale (except Restaurant - Class 1) be permitted in the Downtown Eastside or Gastown areas.

Since December 10, 1997, for existing Class `A' Lounge/Pub, Class `C' Cabaret or Class `D' Neighbourhood pub licensed establishments seeking extended hours or seating, Council has endorsed a process of requiring a time-limited development permit or a separate legal agreement outlining conditions of operation.

On September 16, 1999, Council endorsed a change in hours of operation in the Class `A' Pub at the Hilden Hotel, 50 West Cordova Street, subject to the following provisions: that closing hours be rolled back if complaints are received from the neighbourhood; that the SRO units be maintained in the development; that the seating capacity be maintained at the current number; and a Good Neighbour Agreement be signed.

On April 8, 2003, in response to Provincial changes to liquor licensing policy, Council directed staff to undertake the development of a comprehensive hours of service policy. In the interim, staff were directed to consider, on a trial basis, extensions to hours of operation of the following applications,:

PURPOSE

The numbered company, 338186 BC Limited, is requesting a Council resolution endorsing their request for a change in hours of operation for the Liquor Primary liquor license at the Patricia Hotel, 403 East Hastings Street. The current hours are from 9:00 am to 11:00 pm Monday through Saturday and 11:00 am to 11:00 pm on Sunday. The applicant is requesting that the hours of operation be changed to 9:00 am to 1:00 am seven days a week.

This report outlines some of the issues and concerns related to changing the hours of operation and recommends that Council not endorse this request. If Council chooses to approve the request, recommended conditions of operation are provided for consideration.

BACKGROUND

The applicant, has been operating the Patricia Hotel since the mid 80s. The establishment includes a hotel lounge with 245 licensed seats and a hotel with 195 sleeping units that are rented on a daily, weekly and monthly basis. Located in the DEOD zoning area, the Patricia Hotel is within the Downtown Eastside moratorium area. The surrounding area is a mixture of retail, office, residential, low-income housing, hotel, public house and restaurant uses (Appendix A). Within a 1000' radius of the subject site, there are an additional 397 Liquor Primary seats distributed among three hotel lounges and one club lounge. There are also three liquor licensed Restaurants. A number of those establishments already close past 11 PM (see Appendix B).

The applicant advises that the requested change in the hours of operation is necessary to ensure the future viability of the business. The clientele frequenting this area tend to be young and often involved in the service industry; as such, it is difficult for the lounge to attract long-term regular patrons, who tend to migrate to venues in the area that are open to a much later time.

The applicant would like to retain the 9:00 am opening time as a convenience to some of the business's existing long term clientele. However, this time may change in the future, to reflect changing service and operational requirements.

DISCUSSION

This application raises issues with regard to City policy on moratorium areas, specifically in the Downtown Eastside/Gastown area, and liquor licensing policy changes.

Downtown Eastside/Gastown area Liquor License Moratorium

The Patricia Hotel is located in Council's Downtown Eastside/Gastown moratorium area. Since November 1990 it has been Council policy to not support any expansion in seating capacity and hours of operation of existing establishments, and to allow no new liquor licenses (except restaurants), in this area. Over the past 5 years, Council began to encourage and support relocation of existing establishments from this area. In cases where exceptions to the moratorium have been made, it has been either on a time-limited basis or has required the provision of a public benefit. For example, the closing time ofthe Hildon Hotel, at 50 West Cordova Street in Gastown, was extended one hour to midnight in exchange for public benefits including a Housing Agreement securing Single Room Occupancy (SRO) units. Their change in hours was also approved after the property owner and operator completed substantial upgrades and renovations to the building.

New Provincial Liquor Licensing Regulations

Provincial changes to liquor licensing regulations have eliminated the liquor license classification system, as well as the seating capacities and hours of operation associated with them. For instance, under the new provincial regulations, an establishment such as the Patricia Hotel would be permitted to serve liquor until 4 a.m. with Council input. City staff have started reviewing the implications of the Provincial changes and will be providing City Council with policy recommendations. In the interim, amendments to, and new, Liquor Primary licenses are being assessed based on current City policy and previous Provincial regulations and policy.

Although under review, Council policy has not yet been developed for liquor service on Sunday nights beyond midnight. Staff recommend that should Council wish to endorse the change in hours to liquor service as a permanent amendment to the license, the extension should not to go beyond midnight at this time. The applicant could apply for a temporary extension in keeping with Council's resolution of April 8, 2003. The issue of Sunday hours will be the subject of Council policy development report in the near future.

Proposal Concerns

The differential in closing times between the various liquor establishments in the area is beneficial in helping to mitigate the problems associated with closing times in the Downtown Eastside and Gastown. Currently, the Patricia closes at 11:00 p.m. The proposed changes to the hours of operation to provide later a closing will result in more people leaving the establishment at a later hour. Presently the hours of operation of the various venues are staggered. If the Patricia closes at any 1 A.M. this may reduce the time that the police have to deal with problems associated with patron dispersal from the Patricia and other later closing licensed establishments.

This is a moratorium area and many of the reasons for implementing the moratorium are still valid. For example, a later closing time and associated noise, may impact adjacent residential uses. Based on these concerns, staff recommend that Council not support the later closing hours and endorse Recommendation A.

However, there are some aspects of this proposal that Council may wish to consider. These are outlined below.

Proposal Benefits

Extending the hours of the Patricia Hotel may ensure that a good operator is retained in the area. The Patricia is a few blocks east of the Downtown Eastside area where licensed premises have traditionally been a problem; however, this establishment has not been one of them. Police indicate that the Management of the premises works well with the police and deals with problems as they arise.

A change of hours would also make this business more competitive with other Downtown Eastside hotel bars. Appendix B provides the current hours of operation for these bars. Even a midnight closing time would improve the business' competitive advantage with city restaurants.

Allowing the Patricia Hotel to extend its hours of operation may provide the opportunity for Council to achieve a public benefit for the community through the implementation of an employment contract to employ Downtown Eastside residents or a Housing Agreement to secure Single Room Occupancy (SRO) units. In light of this, staff have provided options B and C for consideration.

Enforcement

The operator runs a good establishment and has created few if any calls for service.

RESULTS OF PUBLIC CONSULTATION

A neighbourhood notification was conducted by circulating 1025 notices in the survey area. A sign was also erected advising the community of the application.

In response to the notification, staff received three emails, one telephone call and a petition signed by 25 residents of the Chinese Senior Home Vancouver Chinese Mennonite Church (485 Dunlevy Avenue), opposing the application. A petition organized by the applicant generated 157 signatures from patrons of the establishment who are in favour of the later operating hours (19 signatures were from residents in the immediate area, 120 signatures from Vancouver residents outside the immediate area and 18 signatures from non-Vancouver residents). One voice mail was received in support of the application.

COMMENTS

The Police Department recommends that an extension in operating hours for the Patricia Hotel be limited to midnight and that, in exchange for favourable consideration, a public benefit be received. It has been noted that there have been few calls for police service for this location or to the licensed area and this could be in relation to the fact that the Patricia Hotel has an earlier closing time of 11:00 pm. As other larger establishments in close proximity to the Patricia Hotel close at midnight, a concern to the Police Department is the possibility that a later closing time of 1:00 am will encourage patrons from these other establishments to migrate towards the Hotel for the later drinking hour. This could result in unanticipated problems for the Hotel; it could also change the dynamics of the entire block and have an impact on a Chinese Senior Home residential building located at 485 Dunlevy Avenue across the lane from the Patricia Hotel.

The Development Services Department notes that this establishment is located within the Downtown Eastside Oppenheimer District (DEOD) - Sub-area 1. Records indicate that this building is currently approved for hotel use and lounges are considered as ancillary uses. This building has been in existence for a long time, and under the current DEOD zoning, is a legally non-conforming use. Noting Council Policy to not support late closing hours in the area of the Downtown Eastside the Planning Department does not support a change in hours for the Patricia Hotel to 1:00 A.M. without some public benefit.

The Environmental Health Division of the Vancouver/Richmond Health Board has no particular health concerns for this establishment. There have been issues with regard to the smoking bylaw, but the operation has been in recent compliance. Recommendations to install a smoking room have not been implemented.

The Housing Centre and the Planning and Social Planning Departments have indicated that they could support a change of hours if there were a benefit to the community and the ability to roll back the hours, should problems arise. This public benefit could be derived in the form of an Employment Contract, where the applicant would agree to employ a specified proportion of Downtown Eastside residents in his operation. Alternatively, the Housing Centre has recommended that in exchange for later hours, the applicant enter into a Housing Agreement containing the following conditions:

The draft Housing Plan for the Downtown Eastside includes recommendations that levels of affordable housing be maintained in the area and any decisions should not compromise future directions of the Plan. However, so far, the applicant has indicated that he is not interested in such a housing agreement.

CONCLUSION

Given Council policy and the potential changes to the liquor regulations, staff recommends that the application not be endorsed (RECOMMENDATION A). If Council does intend to extend the hours, it is recommended that a community benefit, such as an Employment Contract (CONSIDERATION B) or a Housing Agreement (CONSIDERATION C), be provided.

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APPENDIX A

APPENDIX B

 

ADDRESS

BUSINESS
TRADE NAME

HOURS OF OPERATION

Monday to Saturday

Sunday

1.

122 East Hastings Street

New Brandiz Pub

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

2.

159 East Hastings Street

Balmoral Hotel (Vancouver)

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

3.

160 East Hastings

Regent Hotel

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

4.

203 Main Street

No 5 Orange St Hotel

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

5.

235 East Hastings Street

Empress Hotel (Vancouver)

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

6.

25 East Hastings Street

New Dodson Hotel

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

7.

258 East Hastings Street

Savoy Hotel Pub

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

8.

303 Columbia Street

Columbia Hotel

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

9.

320 Abbott Street

Metropole Hotel

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

10.

340 Cambie Street

Pub 340

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 12:00 a.m.

11.

35 West Hastings Street

Funky Winkerbeans

Mon. -Thurs.:
10:00 a.m .-12:00 a.m.

Fri. & Sat.:
11:00 a.m. -1:00 a.m.

11:00 a.m. - 12:00 a.m.

12.

401 Powell Street

Marr Hotel

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

13.

403 East Hastings Street

Patricia Hotel

9:00 a.m. - 11:00 p.m.

11:00 a.m. - 11:00 p.m.

14.

488 Carrall Street

West Hotel

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

15.

50 West Cordova Street

Hildon Hotel

10:00 a.m. - 12:00 a.m.

10:00 a.m. - 12:00 a.m.

16.

74 West Hastings Street

Grand Union Hotel

10:00 a.m. - 12:00 a.m.

11:00 a.m. - 12:00 a.m.

17.

769 East Hastings Street

Astoria Hotel

11:00 a.m. - 1:00 a.m.

11:00 a.m. - 12:00 a.m.

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