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. * * * * *