CITY OF VANCOUVER

                            SPECIAL COUNCIL MEETING


        A Special  Meeting of the Council of the City of Vancouver was held
   on  Tuesday, January  23, 1996,  in the  Council Chamber,  commencing at
   approximately  10:30 a.m.,  for the purpose  of hearing a  review of the
   issuance  of the  1996 Business  License to  Big Star  Investments doing
   business as Club NRG at 99 Powell Street.

             PRESENT:  Mayor Owen
                       Councillors Bellamy, Clarke, Ip, Kennedy,
                                   Kwan, Price and Sullivan

             ABSENT:   Councillor Chiavario (Leave of Absence)
                       Councillor Hemer (Leave of Absence)
                       Councillor Puil (Leave of Absence)

             CITY MANAGER'S OFFICE:   Judy Rogers

             CLERK TO THE COUNCIL:    Jean Sharpe



   COMMITTEE OF THE WHOLE

   MOVED by Cllr. Clarke,
   SECONDED by Cllr. Bellamy,
        THAT this Council resolve itself into Committee of the Whole, Mayor
   Owen in the Chair.

                                           - CARRIED UNANIMOUSLY


   1.   Hearing to Review Issuance of Business License
        for 1996 to Big Star Investments Inc. (Club NRG
        pka Senorita Frog's) 99 Powell Street             

        Mr.  Terry Bland,  Corporation  Counsel, advised  that Council  was
   convened today  to review the issuance  of the 1996  Business License to
   Big Star Investments doing business  as Club NRG.  He recalled  that the
   Vancouver  Liquor Licensing  Commission, at its  meeting on  November 9,
   1995, recommended to Council that a Show Cause hearing be held regarding
   the business  license to operate  a Cabaret  at 99 Powell  Street.   Mr.
   Bland  introduced  Mr.  John  Dobbin,  counsel,  representing  Big  Star
   Investments Inc., together  with Mr.  Rahim Jinah, owner,  and Mr.  Brad
   Pilling, Operations Manager.

        The following documentation was pre-circulated to Council:

        -    Letter dated January 10, 1996 from Terrance Bland, Corporation
             Counsel, to Big Star Investments Inc. advising of hearing.

                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


        -    1995 Business License - Big Star Investment Inc.

        -    Report  dated December  12,  1995 from  A/Inspector Wilton  to
             Inspector Greer advising of  December 3rd shooting incident at
             Club NRG.

        -    Letter  dated  November 24,  1995  from the  Liquor  Control &
             Licensing Branch to Big Star Investments Inc., re  "C" Cabaret
             Liquor License #43788.

        -    Excerpt  from   minutes  of  the  Vancouver  Liquor  Licensing
             Commission meeting  of  November 9,  1995, and  Administrative
             Report dated November 3, 1995.

        -    Fire Prevention Inspection Report dated November 6, 1995.

        -    Letter dated November 6, 1995 from Liquor Licensing  & Control
             Branch to Big Star  Investments Inc., advising of a  number of
             infractions under the Liquor Control & Licensing Act.

        -    Letter  dated November 8,  1995 from Lore  Krill, President of
             Four  Sister Housing  Co-operative, urging  Council to  revoke
             Club NRG's business license.

        -    Letter dated  November 9,  1995 from Margaret  Prevost, asking
             Council to  revoke Club NRG's  application for renewal  of its
             license.

        -    Letters of complaint dated September 5, 1995 from Sue Atherton
             and Lisa Sinclair to Councillor Kennedy.

        -    Minutes of  March 28/April 4, 1995 Special Meetings to address
             community concerns with Senorita Frogs.

        -    Letter dated December 6, 1994 from Jag Jhajj,  Senorita Frogs,
             to  Jack Perri,  Director  of Permits  & Licenses,  confirming
             agreement to operating guidelines of the Club.

        -    Letter of complaint dated November 24, 1994  from residents of
             Captain French, 41 Alexander Street.


                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


        -    Vancouver   Police  Department  log  of  complaints  regarding
             Senorita Frogs.

        Mr.  Bland  briefly  related  some  historical  background  of  the
   problems with the club operating as Senorita Frogs since its purchase by
   the current owners in  mid-1994.  As a result of a  number of complaints
   from  residents, staff from Permits & Licenses and the Police Department
   met  with the  owners on December  6, 1994.   The owners,  at that time,
   agreed  to a set of  operating guidelines to  improve compatibility with
   the neighbourhood.  In  March and April, complaints had  again increased
   as a result of  noise from patrons waiting to  be admitted and with  the
   sound  system creating  problems  to the  upstairs  residents.   At  the
   request of the Vancouver Liquor Licensing Commission, meetings were held
   by the Assistant City Manager with staff, residents and owners  at which
   the  owners agreed to certain  actions and conditions.   As the problems
   continued, Council,  at the  request of  the Vancouver Liquor  Licensing
   Commission, resolved  to hold a  hearing to  review the issuance  of the
   1996 business license.

        The following witnesses were called by Mr. Bland to give evidence:

        Mr. Michael McCoy, resident  of Gastown for 3 years,  described the
   impact  on  the  neighbourhood.    He  recounted  his observations  with
   drinking  and drugging outside  the premises and the  lack of safety and

   respect  for the neighbourhood.   Mr. McCoy advised  he attended several
   meetings arranged by the Vancouver Liquor Licensing Commission  and City
   Manager's  office,  but bus  pub  crawls  still  continued after  verbal
   agreements were  reached with the  owners.   He concluded, there  was no
   improvement at all since the agreements were reached in December 1994.

        Ms.  Lisa Sinclair,  residential  manager of  apartments above  the
   Club, advised of problems inside  and outside the Club since  the owners
   took possession in August  1994.  Actions discussed at the meetings with
   staff to mitigate problems were never taken by the owners.   No meetings
   were held with community residents until a couple of weeks ago, almost a
   year later from  when the owners agreed  to meet.  She reported  some of
   the solutions were workable if the Club could control the  patrons.  Ms.
   Sinclair referred to 


                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


   her earlier letters and petitions that documented her concerns.  At this
   point,  Mr. McCoy advised that no individual notices had been handed out
   by the  owners regarding the recent  neighbourhood meeting, notification
   was via a notice posted on the door of the Club.

        Mr. Paul Teichroeb, Deputy License Inspector, advised the operation
   of the  Club was  first brought  to his attention  in October  1994 when
   complaints were  received from area residents.  At that time, the owners
   were made  aware of the complaints  and the matter was  discussed at the
   Vancouver Liquor Licensing  Commission.  The owners  indicated that some
   of  the problems  were due  to inexperience  on their  part.   The Chief
   License Inspector met with the owners in December 1994 and  agreement on
   operating  guidelines was reached.  Mr. Teichroeb advised the Club owner
   met with  the Commission,  and also with  the City Manager's  office and
   community  representatives, in early 1995,  but the agreed upon meetings
   in  the community never came to fruition.   He felt that if the Club had
   put  the guidelines into operation  and had liaised  with the community,
   the impacts may have lessened.

        A  member of Council noted that during  the March 28, 1995 meeting,
   the owner had proposed changing the license to a neighbourhood pub, with
   a  65-seat capacity.  Mr.  Teichroeb responded that  such an application
   was never received by the City.

        Constable Russ Foster, Gastown Patrol, reported he had met with the
   manager at  that time (Rodney Turner)  in July 1995, when  made aware of
   the  potential  for  a pub  crawl  through  Gastown,  and explained  the
   negative  impacts  of   such  activity  on  the   neighbourhood.    When
   questioned, the  owners were not aware of how many tickets had been sold
   for this event.  Subsequently, a meeting was held on September 14, 1995,
   at  the  Gastown office  with staff,  management  of the  Club  and Lisa
   Sinclair, to highlight and resolve the various issues, i.e., noise level
   of  the Club inside and  outside, overcrowding, serving  of liquor after
   hours.    At  that  time,  operators  agreed  to  work  with the  Health
   Department  to monitor the sound levels, and turn the sound volume down,
   but noise complaints continued to be  received as there were no  changes
   made by the Club management.  In response to Mr. Bland, Constable Foster
   reported that from the September 1995 meeting to January 12, 1996, 


                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


   the Police  have responded  to 67  calls to the  Club.   Since September
   1994,  the Police have attended approximately 214 incidents at the Club.
   This  calculates to a total of 131  hours of police services.  Constable
   Foster  advised that compared to other clubs in Gastown, the Lamplighter
   is  the closest  with  approximately 70  calls.  From February  1995  to
   January  12,  1996, the  Police  have  attended  to calls  at  Club  NRG
   approximately  137 times.  Mr.  Bland pointed out  that this information
   was documented and provided in the material for the meeting.

        The following were questioned by Mr. Dobbin: 

        Constable Foster advised  that of  the 137 calls  listed, 36%  were
   noise related and  the percentage  of calls to  other establishments  is
   much  lower.   Mr.  Dobbin noted   that  the  club owners  have recently
   introduced  the  following  mitigation  measures:  employed  a  security
   service  that   patrols  the  neighhourhood;  the  DJ  makes  a  closing
   announcement to patrons  to respect the neighbourhood -  a notice to the
   effect is also  posted on the  Club's door; committed  to meet with  the
   neighbourhood every  two weeks; installed  an answering  machine in  the
   Club.   He also pointed out that 35-40 people attended the first meeting
   with the owners and two  people attended the second meeting.   Constable
   Foster  reported he  was not aware  of some  of the  mitigation measures
   taken by the Club owners.

        Lisa Sinclair responded that:

        -    she was aware of the consultant's  proposal for sound proofing
             of the premises at a quote  of $18,000 and that the owners had
             agreed to use a sound limiter compressor;

        -    understood Star Security had been hired since January 1, 1996,
             but due to her illness had not noticed an improvement;

         -   was not aware  the neon  signage had been  removed in  keeping
             with the  heritage structure  of the  building, as  there have
             been many different signs installed;

        -    noises on  the  street are  still  evident, i.e.,  boom  cars,
             people yelling;


                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


        -    to  her knowledge the last time valet parking was in operation
             was early summer;

        -    thelast
                   timeshewitnesseda
                                   line-upoutsidethe
                                                   ClubwasOctober/November;

        -    she attended  the first  meeting with  the Club  management on
             January 7, 1996, but due  to illness was unable to attend  the
             second meeting;

        -    at  the meeting Mr. Pilling advised that nothing would be done
             with  the  sound system  until  after  the hearings,  but  his
             suggestions were acceptable;

        -    last Monday,  the recently installed answering  machine had no
             message and there was no answer.

        Mr. Michael McCoy responded to Mr. Dobbin, as follows:

        -    to  his  knowledge  the graffiti  was  not  removed except  he
             believed Lisa Sinclair removed it from her building;

        -    was aware the valet parking was discontinued;

        -    the signage which was  incompatible with the heritage building
             was  definitely  not removed.   As  a  member of  the Heritage
             Committee  for the  area,  Mr.  McCoy  was  aware  of  several
             requests to the owner to remove it;

        -    was given  contact telephone  numbers, but answers  range from
             "hello" and a hang-up to no answer at all;

        -    November  was the  last time  there was  a pub crawl  with six
             buses.

        Mr. Dobbin called the following witnesses:

        Mr. Brad Pilling, currently Operations Manager, Club NRG, stated he
   commenced work at the Club in  August 1995, as the bartender, with seven
   year's experience in the business,  and three years as a manager  at the
   North Burnaby Inn.  Mr. Pilling responded to questions, as follows:


                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


   -    the tenants were  advised at the  neighbourhood meeting that  plans
        for the sound system, estimated at $18,000, were with the landlord.
        The   landlord  has  requested   $20,000  to  cover   the  cost  of
        soundproofing the upstairs floor as well;

   -    reviewed sound tests  with the City and propose to use a compressor
        limiter on the CD sound system;

   -    hired  Star Security  as of  December  26, 1995.   Responsibilities
        include security  inside and out, checking  I.D., controlling line-
        ups, patrolling and  providing a neighbourhood watch  on Friday and
        Saturday  nights.  Security have a cellular phone to permit contact
        with the Club and Police, if necessary;

   -    signs posted on the inside and outside of the doors  asking patrons
        to be quiet when leaving in consideration of the neighbours;

   -    door  onto Alexander  Street  not  opened at  any  time  - duty  of
        security firm to keep it closed;

   -    DJ  instructed to advise patrons  several times at  closing time to
        leave quietly and security to disperse them from the area;

   -    notification  of  previous  neighbourhood meetings  was  via posted
        notices on the  Club doors,  entrance to  Powell Street  residents'
        door  and  at two  convenience stores.    Further meetings  will be
        arranged in consultation with Lisa Sinclair;

   -    last time there was a line-up at the Club was mid-November;

   -    there  have been no pub  crawls since late  October; the management
        team who organized them are no longer working at the Club;

   -    with the aid of a compressor limiter, he is prepared  to reduce the
        sound level to 85 dba  at the mezzanine level to produce  52 dba on
        the upper level  pending completion  of the sound  proofing; he  is

        prepared  to measure  the  sound upstairs  with  a sound  meter  to
        achieve this;

   -    installed an answering machine and provided business cards so as to
        be more accessible.

                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 

        Mr.  Rahim Jinah, one of  the owners, responding  to questions from
   Council, advised  he was at  the meetings with  staff and the  Vancouver
   Liquor Licensing Commission  and was  aware of the  commitments made  to
   improve  the situation.  The parties that had attended previous meetings
   with him and Mr. Jhajj were looking at possible partnership/ownership of
   the Club.   He clarified he was still in partnership with Mr. Jag Jhajj,
   and was of the opinion
   that Mr.  Jhajj he was looking after and responsible for the commitments
   made at these meetings.  Mr.  Jhajj no longer works at the club  and Mr.
   Pilling has  taken his place.   Mr. Jinah explained promoters  are hired
   who  specialize in theme  nights, a practice  that is  followed by other
   Clubs such as Madison's.   When he assumed ownership of  the Club he was
   not aware  of the close proximity  of residences.  Mr.  Jinah advised he
   now has a good crew  working with him and is willing to put  any kind of
   guarantee in writing.

        In closing,  Mr. Dobbin noted  a number of steps  have already been
   taken to rectify the situation.  A lot of the  problems are generated by
   the  location and  proximity of  the residential  area  to the  Club and
   pointed out that Mr. Jinah has made the following commitments:

   -    to carry through  with sound  mitigation measures to  the order  of
        $20,000 and is prepared to  have the noise level  at 85 dba at  the
        mezzanine level until completion of the sound proofing;

   -    security inside and out is in place;

   -    no pre-sold tickets to alleviate long line-ups.

        Mr. Dobbin felt the owners were  young and the learning curve was a
   little  slow,  but were  changing to  a  pro-active style  of management
   instead of the reactive/ignore management style in place previously.  He
   recognized Council had to also consider the rights of the residents, but
   recommended to Council on behalf of his client that the business license
   be issued subject to review.

        Mr. Bland advised he has discussed the aforementioned concerns with
   the Chief License Inspector and it is recommended that the 1996 Business
   License be issued subject to the following conditions:

   -    that all staff, including security staff have identification tags;

                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


   -    that  any persons  waiting  to  be  admitted  who  are  engaged  in
        drinking, fighting or  intoxicated, not be  permitted to enter  the
        premises;

   -    no pre-selling of pub crawl tickets;

   -    doors  and windows  to remain  closed other  than as  necessary for

        access and egress;

   -    that   the  licensee  strictly   comply  with  the   LCLB  Act  and
        Regulations;

   -    no over-crowding;

   -    that the music inside the Club  not exceed 85 dbas at the mezzanine
        level, and 50 dbas on the upper levels, until such time as adequate
        soundproofing measures have been taken to reduce the levels;

   -    music to cease at midnight on Sunday and 1:45 a.m. on other days;

   -    that the  licensee retain an outside  security service satisfactory
        to  the  Chief  License  Inspector,  to  carry  out  the  following
        functions when the Club is open:

        (i)  to  monitor  and control  the crowd  waiting  to enter  and to
             advise them when the Club's capacity is met and also to advise
             the crowd honestly  as to  when and how  many persons will  be
             admitted in the next hour;

        (ii) to  deny access  to  persons who  are  intoxicated, have  been
             drinking  on the street,  or who otherwise  indicate they will
             cause  trouble or  drink  to the  extent  they will  become  a
             problem in the neighbourhood when they leave.

        Council supported the conditions as presented and expressed concern
   with the  intolerable  amount of  staff  time incurred  as  a result  of
   improper management practices.



                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


   MOVED by Cllr. Kennedy,

        A.   THAT the 1996 business license to Big Star Investments Inc. be
             issued  subject to  the  licensee agreeing  in writing  within
             fourteen days to the following set of operating conditions:
             -    that   all   staff,   including   security   staff   have
                  identification tags;
             -    that  any persons waiting to be  admitted who are engaged
                  in drinking, fighting or  intoxicated not be permitted to
                  enter the premises;
             -    no pre-selling of pub crawl tickets;
             -    doors  and  windows  to   remain  closed  other  than  as
                  necessary for access and egress;
             -    that the licensee strictly  comply with the LCLB Act  and
                  regulations;
             -    no over-crowding;
             -    that the music inside the Club not exceed 85 dbas  at the
                  mezzanine  level and 50  dbas on the  upper levels, until
                  such time  as adequate  soundproofing measures  have been
                  taken to reduce the levels;
             -    music to cease  at midnight  on Sunday and  1:45 a.m.  on
                  other days;
             -    that the  licensee  retain an  outside  security  service
                  satisfactory to the Chief License Inspector, to carry out
                  the following functions when the Club is open:

                  (i)  to monitor  and control  the crowd waiting  to enter

                       and to advise them  when the Club's capacity  is met
                       and also to advise the crowd honestly as to when and
                       how many persons will be admitted in the next hour;

                  (ii) to deny access to  persons who are intoxicated, have
                       been  drinking  on  the  street,  or  who  otherwise
                       indicate  they will  cause trouble  or drink  to the
                       extent   they  will   become   a  problem   in   the
                       neighbourhood when they leave.

        B.   THAT the  Chief License Inspector  report back  to Council  in
             three months  on the  licensees compliance with  the operating
             conditions.

                                                     cont'd....
   Hearing to Review Issuance of Business License
   for 1996 to Big Star Investments Inc. (Club NRG
   pka Senorita Frog's) 99 Powell Street (cont'd) 


        C.   THAT the Liquor Control and Licensing Branch be advised of the
             operating  conditions and  the  agreement of  the licensee  to
             comply with them.

                                                - CARRIED UNANIMOUSLY





   RISE FROM THE COMMITTEE OF THE WHOLE

   MOVED by Cllr. Bellamy,
        THAT the Committee of the Whole rise and report.

                                                - CARRIED UNANIMOUSLY




   ADOPT REPORT OF THE COMMITTEE OF THE WHOLE

   MOVED by Cllr. Bellamy,
   SECONDED by Cllr. Clarke,
        THAT the report of the Committee of the Whole be adopted.

                                                - CARRIED UNANIMOUSLY





                                     * * *





                  The Special Council adjourned at 3:30 p.m.