SUPPORTS ITEM NO. 1  
                                                      CS&B COMMITTEE AGENDA
                                                      JULY 11, 1996        

                                                                  POLICY REPORT
                         URBAN STRUCTURE AND LICENSING

                                                       Date: April 26, 1996
                                                       Dept. File No.  NE  

    TO:       Standing Committee on Planning and Environment

    FROM:     Directors of Central Area Planning and Permits & Licenses, in
              consultation with the Directors of Social Planning and of
              Legal Services, Manager of the Housing Centre, Chief
              Constable, General Manager of Engineering Services, and
              Vancouver Health Board

    SUBJECT:  Downtown Liquor Licensing Policy -
              Enforcement Issues and New Types of Establishments


    RECOMMENDATIONS

         A.   THAT the Director of Permits & Licenses and the Chief
              Constable, after consultation with Provincial Liquor
              Inspectors, report back on improved enforcement regula-tions
              and resources, as proposed in A1 and A2 of this report, to
              ensure infractions of liquor regulations can be dealt with in
              a timely and efficient manner.

         B.   THAT the Vancouver Health Board, in consultation with the
              Directors of Permits & Licenses, Central Area Planning and
              Legal Services, report back with specific recommendations on
              the findings of the Noise Task Force with respect to the
              measures proposed in B1 to B5 of this report to deal with
              noise impacts from licensed establishments.

         C.   THAT the measures proposed in C1 to C3 of this report be
              adopted to increase the City's powers to regulate the hours
              of operation and seating capacities of licensed
              establishments in or near residential areas.

         D.   THAT the measures proposed in D1 to D7 of this report be
              adopted to deal with the impacts of patrons entering and
              leaving drinking establishments.

         E.   THAT favourable consideration be given to relaxing the one
              mile distancing requirement for endorsing several
              applications for neighbourhood pubs in Theatre Row, on Robson
              Street (Howe to Homer), or Yaletown, subject to a legal
              agreement indicating there will be no outdoor patio seating,
              amplified music or a dance floor on the premises; and that it
              not be operated in conjunction with an adjacent restaurant;

              AND THAT the Director of Permits & Licenses, in consultation
              with appropriate staff, monitor the impacts of these
              establishments and report back on whether additional Class D
              licenses should be endorsed under these conditions.

         F.   THAT Council not support, at this time, proposals to create a
              new Provincial licensing class or to amend the Provincial
              Class D regulations to accommodate more billiard tables.

         G.   THAT Council not support, at this time, proposals to amend
              Provincial regulations to accommodate liquor licenses for
              establishments which enable their customers to participate in
              active sports activities on their premises, and that this be
              reviewed after the City has secured additional enforcement
              powers and amended the Noise By-law as described in this
              report.

         H.   THAT the Director of Central Area Planning, in consultation
              with the Directors of Permits & Licenses and of Legal
              Services, restaurant owners and the public, report back on
              regulating the location of restaurants accommodating more
              than about 150 to 200 people.

         I.   THAT the Directors of Central Area Planning and of Permits &
              Licenses, in consultation with the Director of Legal
              Services, restaurant owners and the public, report back on
              regulations to permit small dance halls or restaurants which
              cannot be issued a liquor license but which have live or
              recorded music and dance floors for up to 50 people.

         J.   THAT favourable consideration be given to endorsing one
              larger cabaret, up to a maximum of 1,000 seats in a
              non-residential area of the downtown, preferably one
              identified as appropriate for an entertainment focus, subject
              to the applicant providing research from other cities
              demonstrating the economic feasibility of such an
              establishment, an analysis of the effect it would have on
              other entertainment venues in Vancouver, and an analysis and
              strategy to deal with any social or neighbourhood impacts.

         K.   THAT the Directors of Central Area Planning and Permits &
              Licenses, in consultation with appropriate staff, report back
              with a specific work program and staffing requirements to
              implement approved recommendations on liquor licensing and
              associated by-law amendments in the downtown, emphasizing the
              priorities established by Council.

         L.   THAT Council acknowledge the work of the Downtown South
              Liquor Licensing Task Force and thank its members for the
              many hours of voluntary work they have contributed.

    GENERAL MANAGER'S COMMENTS

         The General Manager of Community Services RECOMMENDS approval of A
         through L.  These recommendations are the result of a lengthy and
         thorough public consultation process, and it would be
         inappropriate for me to substitute my eleventh-hour judgment for
         this legitimate process.  Nevertheless, it would also be
         irresponsible if I did not inform Council of my growing concern
         with the underlying theme reflected in this report and in several
         other recent City initiatives.  This report reflects a trend
         toward increasing complexity in the City's regulatory environment
         and an emphasis on increasingly fine and subtle distinctions among
         the subjects of regulation.  This increases the cost and
         difficulty of administration and enforcement.  More importantly,
         as complexity and subtleties increase, the basic intent and
         rationale for our regulations becomes more remote and difficult
         for the public to understand.  This acts to devalue the City's
         regulatory "currency".  People lose respect for regulation which
         does not have patently clear purpose and meaning.  Ultimately,
         this serves to reduce our effectiveness in regulating those things
         which really matter.

    COUNCIL POLICY

    The Central Area Plan adopted by Council in December 1991, calls for
    the creation of a central area that has a mix of activities with
    quieter neighbourhoods where people live close to more active areas
    where people shop and play as well as work; and where the public
    streets are the primary scene of public life.

    On October 25, 1990, Council placed a moratorium on endorsing new
    liquor licenses, increasing seating capacity and extending hours of
    operation of existing licensed establishments in Gastown and the
    Downtown Eastside (see map in Appendix A).

    On May 28, 1992, Council placed a similar moratorium in Downtown South,
    subject to development of a liquor licensing policy for the downtown
    (see map in Appendix B).

    PURPOSE

    This report recommends measures to reduce the impacts of liquor
    licensed establishments on residential areas of the downtown and
    proposes new types of licenses to provide a fuller array of
    entertainment opportunities for people who live, work or visit in the
    Central Area.  A companion report proposes a strategy to reduce the
    number of cabarets in the residential parts of Downtown South and to
    enhance the Theatre Row Entertainment District. It also identifies
    other parts of the downtown which may be appropriate for additional
    licensed establishments as part of an entertainment focus.

    SUMMARY

    More than one-third of the City's 30,000 licensed liquor seats are in
    Downtown South, the Downtown Eastside, Yaletown and Gastown, all of
    which have long-established or emerging residential communities. 
    Through the input of the broad-based Liquor Licensing Task Force, a
    community survey, and widespread community discussion, there is general
    agreement on the following objectives:

    -    strengthen regulations and enforcement to reduce impacts on
         residential areas;
    -    create a livable residential community in Downtown South;
    -    allow for a wide array of entertainment uses;
    -    develop Theatre Row as a late-night entertainment district;
    -    enhance the entertainment focus for Yaletown, Robson Street east
         of Howe, the CBD and the Plaza of Nations;
    -    permit smaller, quieter "local pubs".

    Four basic perspectives summarize the range of options on the essential
    question of whether the number of liquor licensed seats should be
    increased or not, including:

    Perspective 1. Do not increase the number of seats, since this would
                   lead to an excessive supply, with all the associated
                   social and economic costs related to alcohol
                   consumption.

    Perspective 2. More seats and a greater variety of establishments are
                   needed in order to strengthen the downtown's important
                   local and regional entertainment areas.

    Perspective 3. Current regulations are generally working.  Making it
                   easier to get new licenses would be unfair to existing
                   operators and may result in an increase in poorly
                   managed establishments.

    Perspective 4. Emphasize livable neighbourhoods while allowing some
                   carefully managed expansion of seats in new types of
                   establishments in order to balance residential
                   livability with fostering a lively, dynamic downtown.

    Perspectives 2 and 4 were reflected in the opinions expressed by most
    members of the general public.  Owners of existing licensed established
    tended to favour perspective 3, though those who wished to expand the
    size of their operations preferred 2.  The staff recommendations in
    this and the companion report reflect perspective 4.  

    Specific issues and recommendations in this report include the
    following:

    A1.       In order to improve the enforcement of existing regulations
              to better deal with negative impacts, staff recommend a
              report back on creating a liquor license coordinator who will
              provide information and deal with problem premises,
              increasing inspection resources at the local and Provincial
              levels, and making better use of existing penalties to
              discourage violations.

    A2.       Strike a joint City/Provincial task force to review outdated
              regulations, enforcement procedures, penalties and appeal
              procedures.

    B1-B5.    In order to address chronic noise impacts and complaints,
              five recommendations are made to allow noise checks within
              buildings, establish allowable noise levels in the
              residential areas more closely reflecting levels in
              neighbourhoods outside of the Downtown, improve noise
              investigation measures and increase fines.

    C1-C3.    In order to increase the City's powers to regulate hours of
              operation and seating capacities, instruct the Liquor
              Licensing Commission to meet with Provincial authorities to
              enable Council to endorse increased seating or hours of
              operation on a temporary basis, to require Council's
              endorsement of special events licenses, and to allow for more
              timely enforcement on unlawful operations.

    D1-D7.    Since many of the impacts, especially noise, are generated by
              patrons entering and leaving the establishments, staff
              recommend continued support of Bar Watch and related
              initiatives that would see better coordination among licensed
              establishments, as well as more direct and cooperative
              problem solving between bars and adjacent residents. 
              Cabarets should remain open until 3:00 a.m. (no liquor served
              after 2:00 a.m.) in order to spread out the number of exiting
              patrons; late-night transit and private transportation
              services should be expanded, and a better system of
              monitoring licensed premises should be put in place.

    Recommendations are also made to introduce a new class of "local pub"
    which would have a small seating capacity, and no outdoor patio or
    amplified music.  This concept was strongly supported through the
    survey, although a cautious approach to implementing this policy is
    suggested.

    Staff endorse the status quo regarding the number of pool tables
    allowed in existing Class D pubs, since there is enough "capacity" for
    additional pool tables in restaurants and hotels.

    Staff also agree, at this time, with the Province's conclusion that it
    would be inappropriate to approve licenses for a new generation of
    venues offering simulated sports activities.

    Under existing regulations and procedures, existing restaurants may
    apply directly to the Province for a liquor license, and may then serve
    liquor until 2:00 a.m.  Since some large licensed restaurants have
    significant impacts on the surrounding neighbourhood, staff recommend a
    report back on provisions to regulate the location of restaurants
    accommodating more than about 150 to 200 people.

    There has been considerable interest in creating small venues for
    dancing, which would have live or recorded music, but where liquor is
    not served and which would be closed by midnight.  Since the idea of
    small dancing venues has merit, and would not likely result in
    significant neighbourhood impacts, staff recommend a report back on
    appropriate regulations to implement this.

    New cabarets are allowed to have a maximum of 350 seats.  Staff
    generally endorse this limitation, but suggest that one larger cabaret
    with up to 1,000 seats, be considered in the downtown, subject to
    analysis demonstrating the economic feasibility, market demand, and
    potential impacts on other venues and the surrounding area.  Having a
    large cabaret will fill a vacant niche in Vancouver's entertainment
    community, and was generally supported by survey respondents.

    BACKGROUND

    There are almost 30,000 licensed liquor seats in Vancouver's hotels,
    cabarets and neighbourhood pubs.  Appendix C describes the permitted
    hours of operation, seating capacities and other key regulations
    associated with each of these types of establishments.  It also shows
    where they are located and indicates that more than 10,000 of the
    downtown's 20,000 licensed seats are in Downtown South, the Downtown
    Eastside, Yaletown and Gastown.  These are all areas with long
    established and/or emerging residential communities.

    Downtown South Liquor Licensing Task Force

    As part of the Downtown South Community Planning process, in January
    1993, Council formally approved the Terms of Reference for a Liquor
    Licensing Task Force to:

    1.   recommend measures to minimize the impacts of liquor licensed
         establishments on existing and future residential areas;

    2.   review the locational requirements of smaller drinking places in
         regard to the demand for such facilities; 

    3.   consider ways to relocate existing cabarets from the residential
         areas of Downtown South into more appropriate commercial
         district(s);

    4.   recommend measures to upgrade or transform some existing hotel
         pubs while protecting Single Room Occupancy (SRO) housing units; 

    5.   recommend areas where the moratorium on new licensed
         establishments could be lifted in the interests of establishing a
         successful entertainment focus in Downtown South, probably on
         Granville Street; and

    6.   review other possible areas where an entertainment focus could
         include liquor licensed establishments, giving consideration to
         Robson Street, Davie Street and the Yaletown Historic District;

    Topics 1 and 2 are discussed in this report.  Topics 3 to 6 are
    addressed in the companion report.    The Task Force was made up of representatives from different parts of
    the industry: hotel pubs, restaurants, cabarets and neighbourhood pubs. 
    Also included were unions representing hotel bartenders, restaurant
    workers and musicians, as well as local residents and businesses, the
    Downtown Vancouver Association, the Vancouver City Planning Commission,
    the Yaletown Business Association, the Theatre Row Business
    Association, the Downtown South Redevelopment Impacts Committee and the
    Downtown Granville Tenants  Association.  City staff from Planning,
    Permits & Licenses, Social Planning, Police, Housing and Health also
    provided input.  Participants are listed in Appendix D.

    In July 1993, staff and the Task Force presented preliminary findings
    to Council and recommended that more than 35 proposals be the subject
    of a wide public discussion (see Appendix E).

    The Task Force was instrumental in developing the initial set of ideas
    for new policies and helping prepare a public survey.  It reviewed the
    public response to the preliminary recommendations in June 1995 and a
    preliminary draft of this report in April 1996.  The Task Force's
    diverse membership reflected the range of opinions expressed in the
    public process.  Given the difficulty of reconciling fundamentally
    different perspectives on some issues, no attempt has been made to
    achieve consensus.  Some Task Force members have provided written
    comments on the staff recommendations in this report; others will
    address Council directly. 

    Recent Council Decisions

    Since July 1993, Council has made many decisions consistent with the
    overall direction laid out in the preliminary policy report.  These
    include approving in principle the creation of a Theatre Row
    Entertainment District on the 700 to 900 Blocks of Granville Street,
    and upholding the moratorium for new licensed establishments in
    Downtown South until an overall policy could be completed.  In
    addition, Council has endorsed licenses at the Vogue Theatre, Commodore
    Ballroom and Yaletown Brewing Pub to help maintain the entertainment
    focus and historic character of Theatre Row and Yaletown.  Council has
    given favourable consideration to new seats in potential entertainment
    areas away from housing at the St. Regis Hotel, the Ford Theatre and
    G.M. Place.  Council has also helped reduce the impact of existing
    facilities by supporting proposals to convert 225 cabaret seats to a
    65-seat neighbourhood pub in a residential building at 871 Beatty, and
    to allow more seating at the Roxy Cabaret in exchange for an agreement
    to soundproof and secure affordable low income housing in the Siesta
    Hotel.  Finally, the City has opened community police offices on
    Granville Street and on Pacific Boulevard, and assisted the efforts of
    Bar Watch, a voluntary association of licensed establishments, with the
    goal of reducing the impacts of their customers. 

    Public Process and Responses

    Copies of the July 1993 report or its summary were distributed to
    hundreds of interested people throughout the city.  Several
    well-attended public meetings were held in 1995.  Staff discussed the
    proposals with organizations, including the Theatre Row Business
    Association, Downtown South Redevelopment Impacts Committee, Downtown
    Granville Tenants Association, Yaletown Business Association, and
    Gastown Historic Area Planning Committee.  Written submissions were
    received from more than 20 individuals and organizations.  An opinion
    survey, prepared with input from the Task Force, was distributed to
    most households and businesses in Downtown South and Yaletown and
    completed by over 175 people who live, work or visit in the downtown.

    Copies of written submissions are on file with the City Clerk.  The
    results of the survey are attached in Appendix F.  This material was
    reviewed by Council at a July 1995 workshop.  It indicates, there was a
    great deal of agreement among respondents concerning overall
    objectives, including:

    -    strengthening regulations and enforcement to reduce the impacts of
         licensed establishments on residential areas;

    -    creating a livable residential community in Downtown South;

    -    allowing for a wide array of vibrant entertainment uses for
         downtown residents, workers and visitors;

    -    developing Theatre Row as a late-night entertainment district;

    -    enhancing the entertainment focus for Yaletown, Robson Street
         (East of Howe), the Central Business District and the Plaza of
         Nations; and

    -    permitting smaller, quieter "local pubs."

    However, at a more detailed level of strategy and priorities, the
    responses were considerably more varied, reflecting different types of
    underlying assumptions about which public and private objectives are
    most important, how impacts can best be addressed, and how
    opportunities can best be advanced. It may be helpful to categorize the
    four main perspectives as:

    Perspective 1: Do not increase the number of licensed seats.

    This perspective assumes there already are a large number of licensed
    seats, and that more establishments will encourage over-consumption of
    alcohol.  This in turn will create costs to the public in terms of
    increased health care, ambulance service and policing, as well as
    family violence, drunk driving and more noise and vandalism.  People
    who share this perspective generally feel they have been affected by
    existing establishments or their patrons.  It is also held by some of
    the agencies which deal with problems associated with alcoholism.

    Perspective 2: Entertainment should be given priority in the downtown
                   of a growing region.

    This perspective assumes that the downtown has traditionally been the
    focus for pubs and cabarets for Greater Vancouver, and that it is
    reasonable for people who choose to live in the downtown to anticipate
    there will be some impacts.  More seats and different kinds of
    establishments are needed to accommodate a growing and more diverse
    population.  Restricting the number of new seats results in fewer
    choices for the public, gives existing owners an unfair competitive
    advantage, thereby discouraging better management which would help
    drive out poorly run establishments.  This view is likely held by many
    of those who enjoy Vancouver's night life, who have had to wait in line
    to get into crowded pubs and cabarets, or who want a wider variety of
    drinking places.  Similarly, people who have not been severely affected
    by existing establishments but who support a greater variety of
    entertainment options, may support this option.  It is also shared by
    those interested in starting new licensed businesses or expanding what
    they can do with existing licenses.

    Perspective 3: Existing establishments should be given special
                   consideration and be allowed to remain.

    This perspective assumes that Provincial and City regulations have
    resulted in a relatively stable economic climate for the industry.  To
    disrupt this system and add a large number of new licenses would give
    new firms an unfair advantage.  It could also result in an over-supply
    of seats, with more poorly managed establishments trying to survive by
    over-selling and/or dramatically reducing their prices.  Regulations
    should be strengthened to crack down on poorly managed operations.  The
    industry should cooperate with the Police and community to reduce
    negative impacts.  This perspective is shared by many owners of
    existing pubs and cabarets, and some of the unions which represent
    their workers.

    Perspective 4: The priority should be to create livable neighbourhoods
                   allowing some carefully managed expansion of seats and
                   new types of establishments.

    This perspective assumes that the City's primary goal should be to
    attract many new residents to the downtown, where they can experience a
    high quality of life, including being near many employment and
    entertainment opportunities.  It is important to strengthen enforcement
    procedures and cooperative arrangements with the industry to quickly
    deal with poorly managed establishments and customers who create
    impacts.  The liquor related businesses need a clear indication of
    where they are welcome and where they are not.  It will likely be
    necessary to relocate larger, louder and late-night establishments away
    from residential areas.  Any increase of seating should be done
    gradually and with assurances that there are public benefits which
    outweigh potential negative impacts.  This view is shared by City staff
    and by many residents who have participated in community planning
    processes.

    DISCUSSION

    This section provides further analysis of the issues considered by the
    Task Force report, and identifies key policy recommendations and
    choices for the following key objectives:  

    Objective 1:   Minimize impacts of licensed establishments on
                   neighbourhoods.

    Objective 2:   Consider new types of neighbourhood pubs and other
                   establishments.

    It will become obvious that there are many problems and issues
    associated with each objective.  However, it is important to note that
    most licensed establishments in Vancouver's downtown are well run and
    contribute positively to the city's economy and vitality.

    OBJECTIVE 1:   MINIMIZE THE IMPACTS OF LIQUOR LICENSED ESTABLISHMENTS
                   ON NEIGHBOURHOODS.

    Here is an overview of the problems:
    -    creating artificial line-ups to attract additional customers;

    -    allowing customers with poor behaviour to remain in the line up
         and to enter premises;

    -    overcrowding above that for which they are licensed or over the
         Fire Marshall's life-safety limits;

    -    amplifying music so loudly that it affects residents within the
         building or in nearby housing;

    -    ventilating premises by opening doors or windows so that noise
         affects neighbours;

    -    selling alcohol to people who have had too much to drink;

    -    turning a blind eye to the sale of illegal drugs or stolen
         property;

    -    creating an atmosphere that contributes to fighting within the
         establishment;

    -    remaining open or selling alcohol after permitted hours;

    -    employing poorly trained or inexperienced security staff; and

    -    attracting patrons who consistently impact neighbours when they
         leave the premises by making loud noise, urinating outdoors,
         vandalizing or stealing private or public property, fighting or
         driving while intoxicated.

    Issues and Recommendations

    Issue A:  Enforcement of existing regulations and appeal procedures are
              time consuming; penalties are weak

    The impacts of poorly run drinking establishments usually go on for
    months and sometimes years - often without positive resolution.

    The Vancouver Bar Study carried out by Greg Sayville and Paul Wong, in
    cooperation with City staff, is on file with the Clerk.  It indicates
    these impacts result in a strong relationship between number of
    licensed seats in an area and calls for police services. The gathering
    of evidence to document these impacts is 
    expensive for staff and time-consuming for neighbours.  The Provincial
    Liquor Control and Licensing Branch generally issues minor license
    suspensions, and these are often successfully appealed or delayed. 
    Currently, the City's main control is the show-cause hearing to suspend
    or revoke a business license.  But this too is a costly and
    time-consuming process.

    There are a number of issues that need to be addressed to help rectify
    these problems.  All members of the Task Force, including industry
    representatives, agreed that there is a need to increase the City s
    enforcement powers to more quickly curtail the impacts of poorly
    managed licensed establishments.  This was also supported by over 85%
    of people who responded to the survey and by many of those who
    participated at public meetings.

    Staff recommend the following measures to address this issue:

    A1.  THAT the Director of Permits & Licenses, in consultation with
         appropriate City and Provincial enforcement agencies, report back
         with ways to ensure better co-ordination of enforcement resources
         so that licensed establishments which are having significant
         negative impacts on their neighbours are dealt with under existing
         regulations in a timely manner, and include recommendations to:

         a)   determine the need and source of funding for a coordinator
              who would monitor problem premises, coordinate evidence,
              interview new licensees and provide liquor license
              information;

         b)   provide funding for evening and weekend inspections by the
              Property Use Inspectors to allow for joint inspections with
              the police;

         c)   ask the Province to provide additional Liquor Control and
              Licensing Branch Inspectors to ensure adequate monitoring of
              licensed premises (currently one inspector covers the
              Gastown, Downtown Eastside and Downtown South areas); and

         d)   ask the Province to use the current provisions to role back
              hours or reduce seating on problem premises in or near
              residential areas.

    A2.  THAT a joint City and Provincial task force be struck to review
         existing regulations and appeal procedures, in consultation with
         the Union of BC Municipalities (UBCM), the industry and general
         public, to ensure that:

         a)   outdated regulations are eliminated or revised, so
              enforcement can focus on significant issues of life-safety,
              health, and neighbourhood impacts;

         b)   the evidence required to document infractions is obtainable
              in a reasonable period of time;

         c)   penalties are strong enough to discourage infractions;

         d)   appeal procedures cannot be abused to minimize the
              effectiveness of penalties; and 

         e)   an establishment which repeatedly incurs serious infractions
              can have its license cancelled, and that its premises must be
              re-approved by the City and the Province, should another
              operator apply for a new license.

    Issue B:  Noise from licensed establishments affects nearby residents

    In 1995 the Vancouver Health Department investigated 238 music- related
    noise complaints.  The City's Noise By-law establishes maximum noise
    levels (decibel ratings) based on the type of activities in a
    particular area.  These are categorized as 
    "activity", "intermediate" and "quiet" zones as a consequence of the
    area's commercial, mixed use or residential usage.  The first two
    designations are applied in different parts of the downtown, while the
    quiet designation is reserved for residential neighbourhoods outside
    the downtown.  The decibel levels permitted in the intermediate zone
    have proven to be too loud for residents living near late-night
    entertainment.  In addition, the Noise By-law requires noise be
    measured at the property line and does not regulate noise transmitted
    internally from one part of a building to another.

    The noise issues listed below have been referred to the Council
    appointed Noise Task Force for possible inclusion in its
    recommendations to Council.  Staff recommend that the Vancouver Health
    Board, in consultation with the Directors of Central Area Planning,
    Permits & Licenses and of Legal Services, report back on the findings
    of the Noise Task Force with respect to the following:

    B1.  THAT the Noise By-law be amended to enable decibel level readings
         to be taken within a building and that property owners be required
         to provide adequate soundproofing to prevent noise generated
         within a building from affecting residents in other parts of that
         building.

    B2.  THAT a new set of decibel levels be established for the
         residential areas of the downtown which would result in residents
         being exposed to lower decibel levels at nights, possibly the same
         quieter standards as residential areas outside the downtown after
         12:00 midnight.

    B3.  THAT all new licensed establishments within 50 metres of
         residential uses be designed to preclude the need to open doors
         and windows for ventilation, and so sound does not affect         neighbours when patrons enter or leave the premises; in addition,
         existing licensed establishments be encouraged to meet these
         design standards.

    B4.  THAT the approval of a licensed facility to use amplified sound be
         conditional upon satisfactory mitigation of noise on the
         surrounding area, and that the City be empowered to cancel this
         approval for establishments which are consistently affecting their
         neighbours.

    B5.  THAT the minimum fine for creating noise impacts in residential
         areas be increased to $200 per incident, and that an establishment
         which consistently violates the by-law face a show-cause hearing
         wherein it may lose its license or ability to amplify music. 

    Issue C:  The city has very limited power to reduce hours of operation
              or seating capacity.

    Under current procedures, the Provincial Liquor Control and Licensing
    Branch requests the opinion of Council concerning the maximum seating
    and hours of operation for new establishments and for existing licensed
    businesses which apply to increase their capacity.  The Province can
    also issue special event licenses to temporarily expand seating
    capacity without input from the Director of Permits & Licenses.  Some
    cabarets receive approval for as many as 100 additional seats or more
    on a regular basis.

    Staff recommend the following measures to address this issue: 

    C1.  THAT the Vancouver Liquor Licensing Commission, in consultation
         with the Directors of Legal Services and of Permits & Licenses,
         and the UBCM, enter into discussions with the Province to enable
         Council to endorse hours of operation and seating capacity, on a
         temporary basis, for establishments located in or near residential
         areas, and to be able to expand these, if an establishment
         demonstrates that it is well-managed; or to reduce them, if the
         establishment creates negative impacts. 
    C2.  THAT the Vancouver Liquor Licensing Commission, in consultation
         with the Directors of Legal Services and of Permits & Licenses,
         and the UBCM, enter into discussions with the Province to enable
         Council to endorse or to refuse applications for licenses for
         special events lasting more than one day, and for premises holding
         more than one special event per quarter (i.e. 90 days). 

    C3.  THAT if a licensed establishment, which is non-conforming to the
         Zoning and Development By-law, has been discontinued for more than
         90 days, the Director of Permits & Licenses will notify the Liquor
         Control Licensing Branch that the status of non-conforming use has
         been lost, and that staff will take action on what has become an
         unlawful activity.

    Issue D:  Some patrons entering and leaving drinking establishments
              have impacts on nearby housing

    Drinking establishments have only limited legal responsibilities for
    the behaviour of their customers outside their premises.  However, they
    can be encouraged to carry out some measures and required to carry out
    others which can significantly reduce the likelihood of neighbourhood
    impacts.

    The Police Department has the following comments on this issue:

         "With the Department's move toward Community Based Policing and
         District One's (Central Business District, Yaletown, Downtown
         South and the West End) implementation of its Neighbourhood Patrol
         Officer and community advisory councils, a very effective series
         of partnerships have been forged with all elements of this very
         complex area of our city.

         It is this reality (and its product - community offices and
         community action groups) which will allow for a move toward a
         Theatre Row Entertainment District and a cautious, carefully
         planned expansion of licensed establishments in what is becoming a
         European Strasse.

         It is our position that enhanced partnerships, coupled with the
         ability to deal quickly and efficiently with those businesses
         which set themselves above the "Community Good", will prevent
         problems from becoming acute through effective and meaningful
         dialogue."

    Based on the above, staff recommend the following measures to address
    this issue:

    D1.  THAT the City continue to work with Bar Watch, a voluntary
         association of licensed establishments which shares information
         about the behaviour of difficult customers, and to encourage Bar
         Watch to form organizational linkages with local community and
         business groups.

    D2.  THAT licensed establishments be encouraged to work directly with
         their neighbours to resolve outstanding issues and that the City
         continue to support cooperative arrangements which result in
         public benefits (e.g. the intention of the Roxy Cabaret to provide
         soundproofing and secure rents for the residents of the Siesta
         Hotel).

    D3.  THAT the Downtown Integrated Services Team develop a strategy to
         discourage the practice of creating artificial lineups outside of
         licensed premises and to encourage establishment owners to work
         cooperatively with surrounding residents and property owners to
         adjust the location and management of lineups to minimize impacts. 


    D4.  THAT the Liquor Control and Licensing Branch continue to require
         cabarets to stop serving alcohol and providing amplified music and
         dancing by 2:00 am, but allow cabarets to remain open until 3:00
         am., to reduce the number of patrons exiting onto the street at
         one time.

    D5.  THAT Engineering Services initiate discussion with liquor industry
         associations, BC Transit and operators of private transportation
         services to investigate the possibility of more comprehensive
         late-night transportation alternatives.  

    D6.  THAT the Vancouver Health Board be requested to examine existing
         services for alcoholism and to report back, in consultation with
         the Director of Social Planning, on a strategy, including funding
         alternatives, for treatment services in the downtown.

    D7.  THAT the Chief Constable, in consultation with the Director of
         Social Planning, Bar Watch and local residents, report back on a
         strategy, including sources of funding if needed, to monitor and
         address the impacts of patrons leaving drinking establishments in
         or near residential areas after 12:00 midnight.

    OBJECTIVE 2:   NEW TYPES OF ESTABLISHMENTS

    The need to consider several new types of establishments has been
    raised in public discussion of the July 1993 report.  These include the
    following:

    -    "local pubs"
    -    licensed billiard parlours
    -    active sports pubs
    -    large restaurants
    -    small dance halls or restaurants
    -    larger cabarets 

    Issues and Recommendations 

    Issue E:  "Local Pubs"

    The Downtown South Liquor Licensing Task Force was asked to address a
    concern that there are a limited number of smaller licensed
    establishments where customers can order an alcoholic beverage without
    ordering a meal.  The Class D license for Neighbourhood Pubs was
    created in the 1970s to help meet this need.  These generally have the
    following characteristics:

    -    maximum of 65 indoor seats, plus 20 outdoor patio seats;
    -    food preparation facilities on site;
    -    not required to serve food with drinks;
    -    can have amplified music and dancing;
    -    located in residential areas; 
    -    contain no other uses in building; 
    -    demonstrate community support through a formal polling of nearby
         residents and property owners; and
    -    not permitted within one mile of another neighbourhood pub or
         hotel containing a pub or lounge.

    The Task Force proposed a new type of "local pub" which would
    accommodate about 40 to 65 seats, with no outdoor patio, amplified
    music or dancing.  This concept was support by 75% of those responding
    to the survey.   

    Many small restaurant owners would like an opportunity to serve beer or
    wine without meals, during all or a portion of the day.  The
    Neighbourhood Pub Owners Association has expressed strong opposition to
    any such changes to the regulations.  They believe it would provide
    unfair competition and lead to a large number of poorly managed
    drinking places.  

    Staff also have concerns about significantly increasing the number of
    licensed seats in the downtown, especially before there are stronger
    enforcement tools.  However, Council does have the power to relax the
    formal polling requirement and can endorse proposals for Class D
    licenses with specific restrictions.

    Staff recommend the following: 
    E1.  THAT favourable consideration be given to relaxing the one mile
         minimum distancing requirement for endorsing several applications
         for Class D "local pubs" on Theatre Row, Robson Street (Howe to
         Homer), or Yaletown, subject to a legal agreement indicating there
         will be no outdoor patio seating, amplified music or a dance floor
         on the premises, and that it will not be operated in conjunction
         with an adjacent restaurant.

    E2.  THAT the Director of Permits & Licenses, in consultation with
         appropriate staff, monitor the impacts of these establishments and
         report back on whether additional Class D licenses should be
         endorsed under these conditions.

    Issue F:  Licensed Billiard Parlours

    Owners of Yaletown billiard parlours have requested changes to
    Provincial regulations to enable them to serve liquor.  Class D
    neighbourhood pubs can accommodate up to 2 or 3 pool tables, but this
    is less than the owners feel they need.  Class A lounges can
    accommodate enough tables.  The Sharks Club at the Sandman Inn is a
    recent successful example.  However, there are few existing lounges
    available in Yaletown and it is unlikely new hotels will be built
    there.

    The Province has changed its regulations to permit a portion of a
    premises to be a licensed restaurant and another portion to be used for
    billiards.  However, alcoholic beverages cannot be served or carried
    into the billiards area.

    The opinion survey indicated about half the respondents favoured
    special licensing for billiard parlours - with strong support from
    Yaletown business people and outside residents and strong opposition
    from Yaletown residents.

    Staff recommend the following:

    F1:  THAT Council not support, at this time, proposals to create a new
         Provincial licensing class or to amend the Provincial Class D
         regulations to accommodate more billiard tables.

    Issue G: Active Sports Bars

    Potential applicants have expressed interest in licensed premises large
    enough to accommodate simulated basketball, baseball, hockey and other
    sports activities.

    The Province has recently reviewed these requests and concluded that it
    would be inappropriate to license premises where customers are
    participating in active sports.

    Staff recommend the following:

    G1:  THAT Council not support, at this time, proposals to amend
         Provincial regulations to accommodate liquor licenses for
         establishments which enable their customers to participate in
         active sports activities on their premises, and that this be
         reviewed after the City has secured additional enforcement powers
         and amended the Noise By-law as described in this report.

    Issue H: Size of restaurants

    In most commercial areas of the city, there is no restriction on the
    size of restaurants.  Once the restaurant is operating, it can apply to
    the Province for a liquor license.  The number of seats licensed is
    proportionate to the size of the establishment, with some restaurants
    accommodating as many as 500 seats or more. This can be done without
    the City's concurrence.  Since restaurants can serve alcoholic
    beverages until 2:00 am, larger establishments can generate significant
    neighbourhood impacts.

    Staff recommend the following:

    H1.  THAT the Director of Central Area Planning, in consultation with
         the Directors of Permits & Licenses and of Legal Services,
         restaurant owners and the public, report back on regulating the
         location of restaurants accommodating more than 150 people.

    Issues I: Small dance halls or restaurants - no alcoholic drinks

    There have been a number of recent requests to develop small
    establishments with live or recorded music and dance floors for up to
    50 people in neighbourhood settings.  These proponents have not
    expressed interest in serving alcoholic beverages or in being open
    after midnight.  Under current regulations, to have a dance floor or
    more than three musicians, they must apply for a Class 2 restaurant
    permit.  This requires a full kitchen and formal polling of surrounding
    property owners, the costs of which would be prohibitive.  If approved
    as a restaurant, the business could then apply directly to the Liquor
    Control and Licensing Branch for a liquor license without further City
    input.

    Staff recommend the following:

    I1.  THAT the Directors of Central Area Planning and of Permits &
         Licenses, in consultation with the Director of Legal Services,
         restaurant owners and the public, report back on regulations to
         permit small dance halls or restaurants, which cannot be issued a
         liquor license, with live or recorded music and dance floors for
         up to 50 people.

    Issue J:  Large Cabarets

    Currently, the Province allows new cabarets to have up to a maximum of
    350 seats.  The main exception in Vancouver is the Commodore Ballroom
    with 900 seats which was approved before the current maximum was
    adopted.

    The Cabaret Owners Association has suggested that 350 seats does not
    provide enough revenue to attract many of the "top name" groups and
    that at least one cabaret with up to 1,000 seats should be considered
    in the downtown.  About half of those responding to the survey
    supported this proposal, with 75% of those living outside the downtown
    in favour.

    Recently an inquiry has been made for a 700 seat late night drinking
    establishment which would have live stage shows, but would not have a
    dance floor.  It has not yet been determined whether the Liquor Control
    Licensing Branch will process this as a Class C cabaret license or as a
    Class E theatre license, noting Class E has no maximum seating
    requirement.

    Staff recommend the following:

    J1:  THAT favourable consideration be given to endorsing one larger
         cabaret, up to a maximum of 1,000 seats, subject to the applicant
         providing a detailed pro forma and evidence from other cities
         demonstrating the economic feasibility of such an establishment,
         an analysis of the effect it would have on other entertainment
         venues in Vancouver, and a analysis and strategy to deal with any
         social or neighbourhood impacts.

    FINANCIAL IMPLICATIONS

    The City currently expends considerable staff and Council resources in
    regulating licensed establishments and attempting to address their
    impacts.  The proposals in this report are intended to increase the
    effectiveness of those efforts.  Some of these initiatives will
    directly lead to a reduction in complaints, as loud and late-night
    activities are separated from residential areas.  Others will make
    enforcement more effective and efficient.  More generally, many of the
    recommendations are intended to help foster a more cooperative
    relationship between the business, area residents and the City, which
    should help forestall some issues, and more easily deal with others as
    they arise.    Implementing the new policies, regulations and monitoring mechanisms
    will have staff implications, although their scope can only be
    determined once Council has established the policy direction.  It must
    be emphasized that a well conceived implementation strategy that
    includes adequate resources, is essential to the timely resolution of
    these issues.  Without this step and this commitment, the conflicts
    between licensed establishments and residents will only get worse as
    more and more people move into the area, forcing staff to spend more
    and more time on these issues, to the detriment of other pressing work. 
    Similarly, the sooner the new policy is implemented, the sooner the
    industry can take advantage of the opportunities it presents.

    As such, staff recommend:

    K1:  THAT the Directors of Central Area Planning and of Permits &
         Licenses, in consultation with appropriate staff, report back with
         a specific work program and staffing requirements to implement
         approved recommendations on liquor licensing and associated by-law
         amendments in the downtown, emphasizing the priorities established
         by Council.

    CONCLUSION

    The proposed liquor licensing strategy and associated recommendations
    reflect a cautious approach to striking a balance between: (a) better
    enforcement of regulations; (b) fostering a more cooperative
    relationship between regulating authorities, licensed establishments
    and area residents; (c) providing incentives for the relocation of
    cabarets now located in residential areas to the emerging entertainment
    precincts; and (d) providing ongoing proactive monitoring of the
    situation.  The strategy also provides new opportunities, especially
    for smaller licensed establishments, and generally allows for more
    entertainment choices.

    The companion report proposes policies for specific geographic areas of
    the downtown where different types of licenses might be encouraged.

                 *     *     *     *     *