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 & Environment

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

    SUBJECT:  Downtown Liquor Licensing Policy -
              Proposals for Theatre Row, Yaletown and Other Areas


    RECOMMENDATIONS

         A.   THAT cabarets in the emerging residential areas of Downtown
              South remain non-conforming to the zoning and that favourable
              consideration be given to proposals to reduce their impacts
              on nearby housing and the resulting public costs of
              enforcement, as proposed in A1 and A2 of this report.

         B.   THAT the 700 to 900 Blocks of Granville Street be designated
              as the Theatre Row Entertainment District and that the
              Director of Central Area Planning, in consultation with the
              Director of Legal Services, report back with appropriate
              recommendations to amend the Downtown Official Development
              Plan.

         C.   THAT the Directors of Central Area Planning and of Permits &
              Licenses, in consultation with the Directors of Legal
              Services, and of Social Planning, the Manager of the Housing
              Centre and the General Manager of Engineering Services,
              report back with procedures for a proposal call for up to
              1,000 licensed Class A, C or D seats, initially limited to
              applications which would result in a reduction of existing
              cabaret seats in the residential areas of Downtown South, as
              described in C1 of this report.

         D.   THAT the measures identified in D1 and D2 of this report be
              adopted to help to attract new licensed establishments to
              Theatre Row.

         E.   THAT the measures identified in E1, E2 and E3 of this report
              be adopted to prevent new housing from being built in Theatre
              Row, to ensure that nearby housing is designed to accommodate
              anticipated impacts and to inform potential owners and
              tenants about the entertainment district.

         F.   THAT the measures identified in F1 to F4 of this report be
              adopted to enhance the 1100 to 1300 Blocks of Granville as a
              local commercial focus for the surrounding residential
              community, with the 1000 Block as a transition area; to help
              integrate existing hotels into the emerging community; to
              encourage entertainment for all residents; and to secure
              housing affordable to low income residents.

         G.   THAT the measures for Yaletown identified in G1, G2 and G3 of
              this report be adopted to endorse applications for
              neighbourhood pubs and Class 2 restaurants (limited to 150
              seats) and to reduce the impacts of cabarets.

         H.   THAT the measures identified in this report for Robson Street
              (Howe to Homer) be adopted to give favourable consideration
              to applications for licensing hotel pubs or lounges, Class 2
              restaurants and neighbourhood pubs, ensure any housing in or
              near this area be designed to accommodate the impacts of
              licensed establishments; and to not permit cabarets, subject
              to detailed analysis and public consultation concerning the
              appropriate mix of entertainment and housing for this area.

         I.   THAT in the Plaza of Nations, favourable consideration be
              given to applications for cabarets on a case-by-case basis
              and for licensing pubs or lounges, should the zoning be
              amended to permit hotels; and that staff report back on
              designating this area as an entertainment district as
              outlined in I1, I2 and I3 of this report.

         J.   THAT favourable consideration be given to proposals for
              entertainment uses in the Central Business District and that
              the entertainment functions of this area be reviewed, in
              consultation with the public as outlined in J1 and J2 of this
              report.

         K.   THAT, in Victory Square, as described in K1 of this report,
              no cabarets be permitted until staff report back on policies
              to create an appropriate mix of licensed liquor
              establishments, as part of the community planning process for
              that area.

         L.   THAT the moratorium on new licensed establishments in Gastown
              remain in place and be reviewed as described in L1 of this
              report, once Council indicates that adequate enforcement
              measures are in place to deal with negative impacts.

    GENERAL MANAGER'S COMMENTS

         The General Manager of Community Services RECOMMENDS approval of A
         through L, above.

    COUNCIL POLICY

    On October 25, 1990, Council placed a moratorium on endorsing new and
    on amending existing liquor licenses in the Gastown Historic Area and
    the Downtown Eastside Oppenheimer District (see map in Appendix A).

    On July 25, 1991, Council amended the Downtown South zoning to create a
    residential community.

    On May 28, 1992, Council placed a moratorium on endorsing new liquor
    licenses, increasing seating capacity and extending hours of operation
    of existing licensed establishments in Downtown South, subject to
    development of a liquor licensing policy for the downtown (see map in
    Appendix B).

    On July 29, 1993, Council approved in principle designating the 700 to
    900 Blocks of Granville Street as an entertainment district, the 1000
    Block as a transition area, and the 1100 to 1200 Blocks as a local
    shopping focus for the surrounding community.


    PURPOSE

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

    SUMMARY

    The areas described in this report are shown in Appendix C.

    AREA 1:  DOWNTOWN SOUTH RESIDENTIAL AREA

    In 1991, the zoning was amended to create a new community for over
    10,000 people in Downtown South.  The area slated for high density
    housing contains over 20% of the city's cabarets.  Experience in this
    and other cities has demonstrated that these kinds of late-night
    drinking places are not compatible with residential neighbourhoods. 
    This has been confirmed by the many complaints staff have already
    received from new residents.

    The current zoning deletes cabarets as a permitted use.  This means
    that no new cabarets can be built and that existing ones are
    non-conforming.  As a result, it is expected there will be a
    significant reduction, as existing establishments cannot readily carry
    out major repairs or renovations, or are demolished to make way for new
    residential projects.

    Cabaret owners have proposed, and many members of the public who
    responded to an opinion survey agreed that the area should be rezoned
    to make existing cabarets conforming.  Staff strongly recommend that
    the current zoning be retained and propose measures to reduce the
    impacts of existing cabarets and to encourage them to relocate to more
    suitable areas.

    AREA 2A:  THEATRE ROW

    The Theatre Row part of Granville Street (700 to 900 Blocks) is well
    placed to expand its role as a regional entertainment district.  Staff
    suggest that up to 1,000 licensed seats could be added and propose
    several ways in which this could be carried out.  A majority of people
    responding to the opinion survey supported a "proposal call" wherein
    any interested party would be given a period of time to submit an
    application.  These would be evaluated by the Vancouver Liquor
    Licensing Commission according to criteria, including how they helped
    enhance Theatre Row, whether they relocate existing cabarets from the
    residential area of Downtown South, and how they provide other public
    benefits.

    Staff are recommending a similar procedure which initially accepts only
    proposals which would result in a reduction of existing cabaret seats
    in the residential area of Downtown South.  If the 1,000 seat maximum
    has not be fully used, after the initial period, applications from
    others would be considered.  This option strikes a balance between the
    objective of enhancing Theatre Row as a major entertainment precinct,
    and that of reducing the impacts of cabarets on the residential areas. 
    Staff also recommend several incentives to make a Granville Street
    location more attractive to potential applicants, such as a less
    onerous polling process.  Some operators from other areas feel these
    incentives would give Theatre Row establishments an unfair competitive
    advantage.

    Theatre Row currently has two SRO hotels, and while there are no
    proposals for additional housing on this part of Granville, the zoning
    does allow for it.  In order to confirm Theatre Row as an entertainment
    precinct, staff recommend deleting housing as a permitted use, and
    "grandfathering" the Gresham and Siesta Hotels.  Staff also recommend
    measures to ensure new residential developments adjacent to the
    entertainment district be designed to minimized the associated impacts
    (eg. noise).

    AREA 2B:  1000 to 1300 BLOCKS OF GRANVILLE

    There are 10 SRO hotels on the 1000 to 1300 Blocks of Granville,
    containing 1,956 pub/lounge seats as well as 1,420 cabaret seats.  In
    order to confirm this area as a local commercial precinct for 
    the surrounding residential community, as well as to recognize the
    significant presence of existing entertainment venues, many of which
    have recently upgraded themselves,  staff propose the following:

    -    amend the zoning to confirm the 1100 and 1200 Blocks as a local
         commercial area, and the 1000 Block as a transition area,
         including deleting pubs, cabarets and licensed hotels as permitted
         uses, while "grandfathering" existing ones as conforming uses;
    -    continue to permit a wider array of uses in the 1300 Block, which
         is adjacent to the Granville Bridge;
    -    continue to support the efforts of the new business association
         for the area; and
    -    continue implementing Downtown South's low cost housing policy,
         and consider proposals for additional licensed seats if suitable
         housing agreements are secured.

    AREA 3:  YALETOWN

    Yaletown has been developing as a mixed use area, with housing and a
    variety of commercial and entertainment businesses. Chronic issues
    generated by or associated with some of the licensed establishments
    include noise, vandalism, high commercial rents and a lack of available
    parking. While most survey respondents agree that Yaletown should be
    considered as an entertainment area, most Yaletown residents who
    responded did not want any expansion of licensed seating capacity, with
    the exception of restaurants. Staff note that large Class 2 restaurants
    can impact adjacent residents in ways similar to cabarets. As such,
    staff propose supporting new neighbourhood pubs and smaller Class 2
    restaurants, and deleting cabarets as a permitted use, while allowing
    for their transformation into less intrusive activities.

    AREA 4:  ROBSON STREET (HOWE TO HOMER)

    Robson Street between Howe and Homer is an important pedestrian route
    and link between the Robson shopping strip to the west, Granville
    Street, and the cultural precinct associated with the new library,
    theatres and GM Place. It is also zoned to permit housing, and
    residential projects are increasingly being proposed to the south. 
    Staff recommend measures to allow for new licensed establishments,
    although cabarets would not be considered until a more detailed
    analysis of the area is completed.

    AREA 5:  PLAZA OF NATIONS

    Since the Plaza of Nations was designed to serve an entertainment
    function, and since it seems well placed to continue in this role,
    staff recommend new cabaret proposals be considered on this site, and
    that hotel pubs and lounges be considered if a rezoning proposal for a
    hotel comes forward.

    AREA 6:  CENTRAL BUSINESS DISTRICT

    The Central Business District also already serves an important
    entertainment role, although some parts of the CBD may be better suited
    for entertainment than others. Staff recommend a report back to
    identify and assess the most appropriate entertainment portions of the
    CBD.

    AREA 7:  VICTORY SQUARE

    The Victory Square area has over 600 pub seats and 550 cabaret seats,
    along with its current population of about 1,000 people. Additional
    housing for up to 1,500 people is proposed in the draft concept plan.
    Staff recommend the appropriate mix of licensed establishments be
    determined through a report back, after Council considers the draft
    concept plan and that applications for cabarets not be considered until
    this work is completed.

    AREA 8:  GASTOWN

    Gastown serves an important entertainment function for residents,
    workers and tourists. However, because its population is growing, and
    due to on-going complaints and enforcement issues,  Council placed a
    moratorium on new seats in 1990. While Gastown was not part of the
    Liquor Licensing Task Force's agenda, the Gastown Historic Area
    Planning Committee supports timely measures that would make it easier
    to rectify on-going enforcement issues. In addition, the Committee
    favours the lifting of the moratorium on a case-by-case basis. Staff
    suggest the moratorium be retained until the new enforcement measures
    are in-place and have been adequately tested.

    BACKGROUND

    There are about 30,000 licensed liquor seats in the city's hotels,
    cabarets, and neighbourhood pubs.  About a third of these are in or
    near areas of the downtown planned for more housing.

    In 1991, Council amended the zoning in Downtown South to create a high
    density residential community.  This area contains over 6,300 licensed
    liquor seats.  About 2,700 are in hotel pubs and lounges, primarily on
    Granville; about 3,600 are in cabarets, mostly in the areas designated
    for housing.  Anticipating conflict within the emerging community,
    Council deleted cabarets and hotels as permitted uses in the
    residential areas.

    In 1992, Council declared a moratorium on new applications for pubs and
    cabarets, subject to adoption of liquor licensing policy for the
    downtown.  In January 1993, Council struck a Downtown South Liquor
    Licensing Task Force to help develop this policy.  The Terms of
    Reference, membership, and preliminary policy proposals of this Task
    Force, are discussed in a companion report.  These proposals were
    distributed to many groups and individuals throughout the city, and
    were the subject of public meetings and an opinion survey.  Council was
    briefed at a July 1995 workshop on the public response.

    DISCUSSION

    The companion report summarizes the public discussion and recommends
    changes to licensing regulations and enforcement procedures.

    This report deals with specific geographic areas of the downtown in the
    following order:         Area 1. Downtown South Residential Areas 
         Area 2. Granville Street
              a.  Theatre Row
              b.  1000 to 1300 Blocks of Granville 
         Area 3. Yaletown
         Area 4. Robson Street (East of Howe)
         Area 5. Plaza of Nations
         Area 6. Central Business District
         Area 7. Victory Square
         Area 8. Gastown

    It identifies issues and recommendations for each area to address the
    following topics from the Downtown South Liquor Licensing Task Force's
    Terms of Reference:

         -    relocate existing cabarets from the residential portions of
              Downtown South;
         -    enhance the entertainment focus on Theatre Row;
         -    upgrade existing Granville Street pubs; and
         -    review other possible entertainment areas.

    AREA 1:   DOWNTOWN SOUTH RESIDENTIAL AREAS 

    The map below, shows the location of licensed liquor establishments in
    areas of Downtown South where the zoning was amended to house more than
    10,000 people over the next 10 to 15 years.

    Map:



























    The area contains 10 late night cabarets with 1,774 seats.  This
    constitutes more than 17% of the city's cabaret seats.  The names,
    addresses, and seating capacities of these establishments are listed in
    Appendix D.  

    Issue A:  Existing cabarets

    The zoning in the residential areas of Downtown South prevents new
    cabarets from opening and makes the existing ones non-conforming.  This
    means that existing establishments must appeal to the Board of
    Variance, to secure  development permits to expand their facilities or
    to carry out significant renovations or repairs.  As a result, it is
    expected that most will close or relocate over the next 15 to 20 years,
    as their buildings age or are redeveloped for housing.

    The opinion of those responding to the survey was divided about how to
    deal with existing and new licensed establishments in this area.  Many
    Downtown South residents (50%) and business people (60%) agreed there
    should be no new pubs or cabarets, while most residents (85%) and
    business people (65%) from elsewhere felt that new pubs and cabarets
    should be permitted.

    With respect to existing cabarets, over 80% of all survey respondents
    indicated they felt that the zoning should be changed to make existing
    cabarets conforming.  This result is consistent with a request from the
    Cabaret Owners' Association.  However, it is inconsistent with the many
    complaints staff have received from residents living near the Mars Club
    and other cabarets.  As more development takes place adjacent to other
    older, late-night premises, it is expected that the number of
    complaints will increase significantly.

    Staff strongly recommend the following:

    A1.  THAT cabarets in the emerging residential areas of Downtown South
         remain non-conforming to the zoning, due to the high impacts on
         nearby housing and the public costs of dealing with the resulting
         complaints.

    A2.  THAT favourable consideration be given to proposals which
         encourage cabarets in the residential areas of Downtown South to
         reduce their impacts or to relocate to non-residential areas. 
         This could include changes to hours of operation, seating capacity
         or type of license.

    Should Council wish to consider a rezoning to make existing cabarets
    conforming, staff recommend this be fully discussed in the community. 
    Such a proposal would be viable only if the amount of new housing
    permitted in the area is significantly reduced.

    AREA 2:  GRANVILLE STREET

    The map in Appendix E shows the location of licensed liquor
    establishments, and housing on the 700 to 1300 blocks of Granville
    Street.  The names, addresses and seating capacities of the licensed
    establishments are shown in Appendix F.

    On July 31, 1993, Council approved in principle the following
    directions for different sections of Granville Street.  These proposals
    were supported by more than 70% of respondents to the survey:

         -    700-900 Blocks - Theatre Row Entertainment District
         -    1000 Block - Transition Area
         -    1100-1200 Blocks - Local Commercial Area

    The Granville Revitalization Program is currently underway to help
    confirm and detail the concepts, and to determine the economic
    strategies and design features to best achieve the objectives for these
    sub-areas.

    AREA 2A:  THEATRE ROW ENTERTAINMENT DISTRICT

    Issue B:  Designating the 700 to 900 Blocks of Granville Street as an
              entertainment district.  

    Theatre Row is already one of the most successful entertainment strips
    in Canada.  It contains many viable theatres, cabarets, restaurants and
    hotel pubs.  Over the last few years many of its buildings have been
    renovated, including: the Commodore Building; the Vogue and Orpheum
    Theatres; the Granville, Plaza and Paradise Cinemas; Tom Lee Music, the
    Kitto, Planet and Foghorn's Restaurants; the Roxy Cabaret, and the
    Siesta and Gresham hotels.

    Opportunities and Challenges

    The area is suited for additional entertainment uses, including
    late-night cabarets, because it is:

    -    a strong focus for downtown and regional entertainment;
    -    represented by a business association which is supportive of
         expanding the entertainment function;
    -    near the Central Business District and major hotels;
    -    located centrally with respect to existing and new downtown
         residential communities;
    -    primarily commercial with little housing;
    -    immediately adjacent to streets which are primarily zoned for
         commercial uses;
    -    may be able to accommodate lineups and outdoor seating on wide
         sidewalks;
    -    able to accommodate large outdoor events on the Granville Mall and
         at the privately-owned open space adjacent to Eaton's; 
    -    well served by transit;
    -    near available off-street parking, including Pacific Centre and
         Robson Square;
    -    a strong heritage character area; and
    -    provided with a high level of policing, including a community
         police office. 

    To realize its full potential the area has several challenges:

    -    improving its image;
    -    addressing aggressive panhandling;
    -    fostering a coordinated approach to management and issue
         resolution; and
    -    expanding the variety of activities, day and night.

    The Downtown South Community Plan also suggests that the single most
    important factor in the long-term revitalization of Granville Street is
    to make it the commercial focus of the surrounding residential area. 
    An emerging business plan envisions a variety of entertainment uses
    including restaurants, book stores, music shops, specialty retail, pool
    halls and other enterprises geared to the young people and others
    already drawn to the street's theatres and clubs.  

    A key question concerns the role licensed liquor establishments should
    play in this revitalization.  Such establishments can add to the
    vitality of the downtown and help speed up some new development on
    Granville.  However, too large a concentration of drinking places can
    reduce opportunities for other forms of entertainment and discourage
    people from living nearby, thereby undermining the essential
    underpinnings of the revitalization strategy.

    Relevant Research

    Staff have carried out research in Vancouver and other cities to
    determine how many seats can be accommodated in Theatre Row.  According
    to the Simon Fraser University Criminology Department, there are few
    relevant studies in the academic literature.  It is also not possible
    to readily translate experience in other cities to Vancouver.  Each
    city has a unique set of licensing regulations, types of
    establishments, geographic patterns of residential neighbourhoods and
    commercial districts, and cultural practices with respect to drinking
    in public and private places.  For example, Calgary's Electric Avenue
    was initially seen as a positive example of how a large number of
    establishments - could locate together to create a vibrant
    entertainment district.  
    However, several years ago an over-supply of drinking places led to
    "price wars," impacts on the nearby residential community, and
    difficult policing issues.  The City of Calgary responded with
    increased enforcement measures and new zoning to attempt to bring more
    controls to the area.

    The Vancouver Bar Study carried out by Greg Sayville and Paul Wong, in
    cooperation with City staff, is on file with the City Clerk.  It
    indicates there is an exponential relationship between number of
    licensed seats in an area and calls for police services.  Another study
    on file with the Clerk is by SFU Criminology students.  It describes
    the atmosphere of many drinking places in Downtown South and identifies
    the different kinds of people who go to these establishments, how often
    they go out, where they live and how they travel.  It indicates that
    many people who visit Downtown South's cabarets drive by themselves
    from suburban municipalities.

    Additional Licensed Seats on Theatre Row

    From this research and direct observation, staff have concluded that,
    on balance, there are potential advantages to clustering some
    additional establishments in Theatre Row.  This could enhance the
    vitality of this entertainment district and hopefully attract some
    existing seating away from the residential area.  Given the uncertainty
    of what we know, and the potential risks, staff have concluded that it
    is important to proceed cautiously.  Staff estimate that if the
    enforcement procedures and regulations proposed in the companion report
    are adopted, it should be possible to accommodate about 1,000 more
    licensed seats in Theatre Row.  This would translate into 2 or 3
    cabarets (250-350 seats each) and possibly one or two neighbourhood
    pubs (65 indoor seats plus up to 20 patio seats).  The zoning would
    also continue to permit the development of new hotels and restaurants
    which would likely provide some additional liquor seating.  

    The impacts of these new establishments would be carefully monitored
    and evaluated.  If, as anticipated, the new establishments are helping
    revitalize the street without adversely affecting the community,
    consideration could then be given to permitting more seats or even to
    expanding the size of the entertainment district.

    Staff recommend the following:

    B1.  THAT the 700 to 900 Blocks of Granville Street be designated as
         the Theatre Row Entertainment District and that the Director of
         Central Area Planning, in consultation with the Director of Legal
         Services, report back with appropriate recommendations to amend
         the Downtown Official Development Plan.

    Issue C:  Mechanisms to permit additional seating on theatre row

    There are four alternative ways identified below by which the
    moratorium could be lifted to accommodate about 1,000 more seats on
    Theatre Row.  These differ by how much emphasis they place on community
    benefits (C1 and C2) getting new establishments quickly (C3), and
    relocating existing cabarets (C1 and C4).

    Staff recommend C1 below: 

    C1:  Proposal Call for up to 1,000 Seats, Limited During the First Year
         to Relocating Existing Seating

    The City would issue a "proposal call" wherein owners of existing
    licensed  establishments in the residential areas of Downtown South off
    Granville Street would be given up to one year to apply to relocate to
    Theatre Row.

    All applications would include design drawings and evidence that the
    property owner is prepared to lease or sell the site to the applicant. 
    All applications would also be evaluated by the Vancouver Liquor
    Licensing Commission, in consultation with staff and the community,
    according to an agreed upon set of guidelines.  Suggested criteria
    include, but are not limited to the following:

    -    contributes to Granville Street vitality;
    -    helps to retain or renovate a heritage building on Granville
         Street;
    -    helps provide social services to deal with the impacts of drinking
         establishments on the surrounding community;
    -    helps provide for low income housing; or
    -    demonstrates evidence of community support, in lieu of formal
         balloting.

    A maximum of 1,000 seats would be considered for approval.  Some of
    these seats could be set aside to help ensure there is diversity, with
    one or two neighbourhood pubs, as well as several larger
    establishments.  This policy would be reviewed after the first set of
    applications was evaluated to determine whether the proposal call would
    be made available to other potential applicants.

    The advantage of this alternative is that it would maximize the chances
    of relocating existing cabarets over a relatively short period of time
    and could result in no net increase of seating.  In addition, if there
    is widespread interest in locating on Granville, it might result in
    public benefits as proponents "bid" for seats.  Its disadvantages are
    that it initially limits competition and could result in several larger
    establishments, rather than a diversity of places.

    The survey indicated 55% supported the proposal call concept.  Of
    those, 70% favoured opening this competition to all potential
    applicants.  Staff recommend C1 wherein initially, only owners of
    existing Downtown South cabarets would be able to submit applications
    before the completion is open to others.  This would help determine
    whether it is possible to relocate seating to Theatre Row, without
    increasing the total seating in the community.

    Should C1 not be approved, staff put forward options C2, C3 and C4 for
    Council's consideration:

    Option C2:   Proposal Call

    This alternative is similar to C1, except the "proposal call" would be
    open to any interested parties.  They would be given a limited period
    of time - approximately six months - to submit applications for new
    establishments or increased seating on Theatre Row.

    These proposals would be evaluated by the Vancouver Liquor Licensing
    Commission.  In addition to the criteria listed in C1, would be whether
    the proposal reduced seating in the residential area of Downtown South.

    The advantage of this approach is that it would enable a wide array of
    applicants to compete for potential seats.  This would likely result in
    good selection of creative entertainment ideas as well as help maximize
    potential community benefits.  The total number of seats available
    could be limited in advance of the proposal call or set after    submissions are reviewed.  Staff suggest that no more than 1,000 seats
    be considered for this area at this time.  Additional seating might be
    considered in several years.  This should only be done after the new
    establishments and enforcement procedures are in place and monitoring
    has indicated additional seating could be accommodated.

                                       OR

    Option C3:   First Come, First Served for up to 1,000 Seats Under
                 Existing Zoning 

    Theatre Row is currently zoned to permit cabarets, hotel pubs,
    neighbourhood pubs and Class 2 restaurants.  Applications are reviewed
    by the Vancouver Liquor Licensing Commission on a case- by-case basis,
    with a formal balloting of the surrounding area generally required for
    each.  If the moratorium is lifted, this process would likely see some
    seating in Theatre Row on a first come/first served basis, until the
    1,000-seat limit is reached.  This process would likely result in a net
    increase of seating in the community.  It also offers no specific
    criteria or incentives to ensure other benefits for the surrounding
    community.

                                       OR

    Option C4:   Relocation of Existing Licenses (no net increase in
                 seating)

    The City would only endorse applications from owners of existing
    cabarets who are willing to relocate from the residential areas of
    Downtown South.  The advantage of this approach is that it would result
    in no net gain of cabaret seating in the community.  
    However, it would give existing owners a monopoly, and it would not
    necessarily maximize potential benefits to the community.  If this
    alternative is adopted, staff recommend it be limited to a two-year
    period, to encourage existing establishments to relocate sooner.  

    Issue D:  Special incentives may be needed to attract licensed
              establishments to Theatre Row 

    More than a dozen potential applicants have expressed interest in
    developing licensed establishments on Theatre Row over the last two
    years.  However, it may be necessary to consider some special
    incentives in order to maximize potential public benefits.  For
    instance, if Theatre Row is formally designated as an entertainment
    district, alternatives to the formal referendum process could be used
    to ascertain public support for individual applications for new
    licenses.

    Two points should be noted.  First, owners of existing licensed
    establishments elsewhere in the Central Area have expressed concerns
    about special incentives which might give new establishments on Theatre
    Row an unfair competitive advantage.  Second, even with competitive
    advantage, the proposed incentives would not likely attract existing
    cabarets from the residential area of Downtown South, if the zoning is
    changed to make them conforming.

    Staff recommend the following:

    D1.  THAT special incentives, including the following, be considered,
         if requested by applicants, to attract new licensed establishments
         to Theatre Row:

         -    not requiring each applicant to go through the formal polling
              process;
         -    asking the Province to allow earlier (5:00 p.m.) opening
              hours for cabarets or to allow premises to have dual licenses
              for cabarets and restaurants;
         -    permitting one or more neighbourhood pubs;
         -    as part of the overall review of the Building By-law,
              examining ways of phasing in Building Code upgrading of code
              requirements to accommodate entertainment uses in existing
              buildings; and
         -    other incentives which result in a net benefit for the
              community.

    D2.  THAT the Vancouver Liquor Licensing Commission consider endorsing
         applications for liquor licenses proposed on Theatre Row based on
         the response to a neighbourhood notification as an alternative to
         formal polling.

    Issue E:  Housing in theatre row is incompatible with its entertainment
              function 

    Currently there are only 108 residential units on the 700 to 900 Blocks
    of Granville Street.  These are Single Room Occupancy units (SRO's) in
    the Siesta and Gresham Hotels.  No housing is located on adjacent
    blocks at this time.  However, the zoning permits up to 3 FSR for
    dwelling uses on Granville Street and a rezoning application has been
    submitted for a major residential development across the lane in the
    900 Block Seymour.  This is part of a project to save the Dominion
    Motors Building, which is listed on the Vancouver Heritage Registry. 
    Further, a development application which includes a residential
    component is proposed for the southeast corner of Howe and Robson

    Staff recommend the following:    

    E1.  THAT the Director of Central Area Planning, in consultation with
         the Director of Legal Services, report back with zoning amendments
         to:

         a)   delete housing as a permitted use on the 700 to 900 Blocks of
              Granville Street; and

         b)   permit SRO residential hotel units in the Gresham and Siesta
              Hotels as conforming uses, until these buildings are
              redeveloped for other uses.

    E2.  THAT the Director of Land Use and Development ensure that any
         housing developed immediately adjacent to Theatre Row is designed
         to minimize noise and other impacts of licensed entertainment
         uses.

    E3.  THAT the Director of Central Area planning, in consultation with
         the Director of Legal Services and the Real Estate Board of
         Greater Vancouver, report back on mechanisms to inform people
         interested in purchasing or residing on sites adjacent to Theatre
         Row that the area is near an entertainment district and they can
         expect some increased noise and other impacts.

    AREA 2B:   REMAINDER OF GRANVILLE STREET

    Issue F.  Upgrading existing hotel pubs and integrating them with
              housing and local shopping on the remainder of Granville
              Street.

    There are 10 hotels on the 1000 to 1300 Blocks of Granville Street. 
    They contain 1,956 pub/lounge seats and 1,420 cabaret seats.  This is
    12% of the city's total.  However, this area also provides over 1,000
    residential single room occupancy hotel rooms (SROs) and has the
    development potential to provide a considerable number of
    self-contained dwelling units.

    It is clear that with its many licensed seats, this part of Granville
    will continue to be a significant regional entertainment focus.  Years
    ago these seats were located in some of the city's most notorious pubs. 
    Over the last decade, there have been considerably fewer incidents
    involving the police.  On many evenings many of the pubs have been
    relatively quiet - primarily functioning as "living rooms," serving
    local low-income residents.  More recently, most of the pubs have been
    renovated or have changed their entertainment formats.  The Yale and
    Hotel California are now blues and jazz bars.  The Royal is an
    important centre for the downtown gay community.  The strip bars at the
    Nelson Place Hotel and the Austin Hotel have been transformed to other
    entertainment.

    Thus the existing hotels appear to be responding to the emerging
    community without any special City initiatives.  Seats that were once
    empty are now filled; many now serve customers of a higher income.

    Staff recommend the following:

    F1.  THAT the Director of Central Area Planning, in consultation with
         the Director of Legal Services, report back on amendments to the
         Downtown Official Development Plan to help establish the 1100 to
         1300 Blocks of Granville Street as the local shopping core for the
         surrounding residential community and to help establish the 1000
         Block of Granville Street as a transition area with some
         entertainment and some local shopping by:

         a.   deleting neighbourhood pubs, cabarets and new hotels as
              permitted uses;

         b.   grandfathering existing hotels, including their pubs and
              lounges, as conforming uses; 

         c.   deleting Class 2 restaurants (which require food be served
              with alcoholic beverages, and can provide live entertainment
              and dancing) as a permitted use on the 1100 to 1300 Blocks of
              Granville Street; and

         d.   permitting Class 2 restaurants on the 1000 Block of Granville
              Street.

    F2.  THAT staff continue to work with the Entertainment District 
         (formerly Theatre Row) Business Association and other groups in
         the area to revitalize Granville Street, monitor the balance of
         entertainment and shopping requirements of the community, and
         report back if policy changes are needed, especially with respect
         to neighbourhood pubs as well as the possible need for inexpensive
         "living room" establishments for low-income residents.

    F3.  THAT the Manager of the Housing Centre continue efforts to secure
         the affordability and to upgrade or replace existing low-cost SRO
         housing on the 800 to 1300 blocks of Granville Street through a
         variety of mechanisms, including purchasing, management and/or
         leasing agreements, bonusing and development of new low-income
         housing.

    F4.  THAT Council give favourable consideration to endorsing
         applications for increased seating capacities in existing licensed
         establishments, subject to legal agreements to secure the
         affordability and to upgrade low-income housing.

    AREA 3:   YALETOWN

    Yaletown contains a variety of entertainment uses including
    restaurants, coffee bars, billiard parlours, as well as the Bar None
    Cabaret and the Yaletown Brewing Company Neighbourhood Pub.  The owners
    of  billiard parlours have requested liquor licenses. The Province has
    responded by enabling them to have a licensed restaurant area in part
    of their premises.  However, customers cannot drink while they play
    billiards.  Other potential applicants have expressed interest in
    neighbourhood pubs with enough space to offer simulated basketball,
    golf and other sports activities.

    Yaletown also has an increasing residential component, with more than
    200 units currently located in the heritage district itself and 1200
    more in adjacent Yaletown Edge and Pacific Point.  Of particular
    concern are the noise impacts of loud, late-night music and crowds on
    this housing.  In addition, owners of design firms have expressed
    concern about the impacts of licensed establishments, including
    vandalism and increased rents in commercial space.  Limited parking has
    also been identified as an issue by residents and business people.

    Sixty-five percent of those responding to the public survey agreed
    Yaletown should be identified as an entertainment area.    Yet 80% of
    the 17 Yaletown residents who responded opposed additional
    neighbourhood pubs as well as special licensing for billiard parlours. 
    The Task Force has recommended that Class 2 restaurants continue to be
    permitted in the zoning to add to the mix of entertainment uses.  Staff
    are concerned that, under current regulations, these tend to be large
    and can have amplified music and dancing until midnight.

    Staff recommend the following:

    G1.  THAT favourable consideration be given to endorsing applications
         for neighbourhood pubs and that the minimum distancing requirement
         be waived in Yaletown on a case-by-case basis, subject to polling
         nearby residents and property owners.

    G2.  THAT favourable consideration be given to endorsing applications
         for Class 2 restaurants limited to 125 seats on a case-by-case
         basis, subject to polling nearby residents and property owners. 

    G3.  THAT the Director of Central Area Planning, in consultation with
         the Director of Legal Services, report back on deleting cabaret as
         a permitted use and that the Vancouver Liquor Licensing Commission
         give favourable consideration to endorsing possible proposals to
         transform the Bar None Cabaret into one or more establishments
         which have earlier closing hours.

    AREA 4:   ROBSON STREET (HOWE TO HOMER) 

    The frontages along Robson Street, between Robson Square and the new
    library, have several significant advantages as a potential late-night
    entertainment district:

    -    adjacent to the CBD, Ford Theatre and Theatre Row;
    -    near Robson Street shopping district, Vancouver Public Library,
         Q.E. Theatre, B.C. Place Stadium and General Motors Place;
    -    good transit access, including rapid transit; 
    -    zoned for offices, hotels and cultural uses; and
    -    currently contains no housing, although development applications
         with housing components are proposed for the southeast corners of
         Robson at Howe and at Homer.

    However, this area has several potential disadvantages:

    -    zoned to permit up to 3.0 FSR housing;
    -    high density housing is permitted and has been developed nearby;
         and
    -    no intervening lane to establish a clear boundary to the south
         where additional housing could be developed. 

    This part of Robson Street is at the crossroads of several major
    downtown functions - the Downtown South residential community to the
    south, the Central Business District to the north, the sports
    facilities and cultural precinct to the east and Theatre Row and the
    West End Robson Street shopping district to the west.  It currently
    contains no housing, so it has potential to accommodate virtually any
    of these adjacent uses or to become an ongoing area of transition.

    Some members of the public and the industry have argued that housing
    should be deleted or limited in this area and that it could be a
    natural extension of the Theatre Row Entertainment District.

    Others, including some nearby residents, have argued that this could
    create too large an entertainment district and the "crossroads" could
    bring together a mix of different types of crowds that in some cities
    have created significant policing issues.  Still others argue that its
    character is fundamentally different than Granville, and that if
    Theatre Row is to expand, it should do so to the north, along the mall.

    Staff are concerned that the City does not currently have the
    enforcement powers to minimize the impacts of a larger entertainment
    district, especially if there are potentially conflicting functions. 
    The best use of this area will likely not be known until Theatre Row,
    the Cultural Precinct near the Library and the Downtown South
    residential community are further developed and a detailed analysis is
    carried out in consultation with local interests.

    Staff recommend the following:

    H1.  THAT favourable consideration be given to endorsing applications
         for hotel pubs and lounges, Class 2 Restaurants and neighbourhood
         pubs on a case-by-case basis along Robson Street (Howe to Homer),
         subject to polling of nearby residents and property owners.

    H2.  THAT any new housing in or immediately adjacent to this area be
         designed to accommodate the impacts of licensed establishments and
         that a mechanism be established to inform people interested in
         purchasing sites or residing in or near this area that
         entertainment uses are permitted and that they can expect some
         impacts.

    H3.  THAT the Director of Central Area Planning, in consultation with
         the Manager of the Housing Centre, local residents, property
         owners and organizations, report back with a detailed analysis of
         the mix of entertainment and housing uses most appropriate for
         Robson Street (Howe to Homer) and that until this study is
         completed, no applications for cabarets be approved.

    AREA 5:   PLAZA OF NATIONS

    The Plaza of Nations contains two licensed cabarets.  It is well
    located to provide entertainment for residents nearby in False Creek
    North and for people who attend events at the Stadium and GM Place.  It
    also is served by rapid transit.  Existing policy encourages continued
    use of the outdoor plaza and exhibition areas for public events, and
    the City is seeking a right-of-way agreement to legally secure this
    function.

    Staff recommend the following:    I1.  THAT consideration be given to endorsing new cabarets on a
         case-by-case basis, subject to the neighbourhood referendum
         process and completion of appropriate zoning.

    I2.  THAT consideration be given to a pub or lounge if proposed in
         conjunction with a new hotel, which will require rezoning, and be
         subject to evidence demonstrating support by nearby residents and
         property owners.

    I3.  THAT the Director of Central Area Planning, in consultation with
         appropriate staff and the public report back on designating the
         Plaza of Nation as an entertainment district in the Zoning and
         Development By-law.

    AREA 6:  CENTRAL BUSINESS DISTRICT

    The Central Business District currently contains 35 establishments with
    a total of over 5,800 pub, lounge and cabaret seats in addition to
    Class 2 restaurants.  This area is well suited to provide additional
    late-night entertainment since it contains:

    -    many hotels, restaurants and entertainment facilities;
    -    good transit access;
    -    a great deal of off-street parking available at night; and
    -    little existing housing and limited zoned housing capacity. 

    The main disadvantages are:

    -    high rents;
    -    perception that cabarets may not be compatible with the prestige
         image of major office buildings; and
    -    current lack of late-night activity and "eyes on the street."

    Staff recommend the following:

    J1.  THAT favourable consideration be given to proposals for
         entertainment uses in the Central Business District. 

    J2.  THAT the Director of Central Area Planning, in consultation with
         appropriate staff, local property owners, merchants, business
         organizations and the public, review and report back on the
         entertainment uses in the Central Business District, with special
         emphasis on an analysis of the suitability of the area to the
         south of Canada Place near Hastings, Pender and Hornby Streets,
         and the "Cultural Precinct" near Homer, Beatty, Robson and
         Dunsmuir Streets.

    AREA 7: VICTORY SQUARE

    Victory Square contains 7 establishments with a total of over 600 pub
    and 550 cabaret seats.  It is immediately adjacent to the boundaries of
    the Downtown Eastside/Gastown moratorium on new and amendments to
    existing liquor licenses.  Currently, about 1000 people live in the
    area, primarily in older residential hotels.  The draft Victory Square
    Concept Plan calls for retaining many of the heritage buildings and for
    accommodating about 1500 more people.  The area's housing, historic
    character and location near the Central Business District and
    educational institutions indicate that it will likely have a mix of
    entertainment and shopping uses, including galleries, book stores,
    coffee shops and billiard parlours.  As has proven true in Yaletown, it
    is unlikely that late-night cabarets would be appropriate.  However,
    the area is experiencing changes to its existing hotel pubs and may be
    able to accommodate some additional smaller licensed restaurants and
    other types of establishments.

    Staff recommend the following:

    K1.  THAT the Director of Central Area Planning, in consultation with
         appropriate staff, local residents and business people, report
         back on policies to create an appropriate mix of licensed liquor
         establishments after Council considers the draft Victory Square
         Concept Plan.

    AREA 8:  GASTOWN

    Gastown currently has 10 licensed hotels, containing 1,288 pub seats
    and 9 cabarets with 1,865 seats.  This is a well established
    entertainment area serving tourists and residents from throughout the
    region.  Because of the large number of existing seats, growing
    residential population (which is now approximately 3,500 people) and
    enforcement issues with several establishments, on October 25, 1990,
    Council placed a moratorium on new seats in Gastown.  The only
    exception has been a May 27, 1994, endorsement of the Steamworks
    Neighbourhood Pub at 375 Water Street.

    As a result of the moratorium, Gastown was not considered by the
    Downtown South Liquor Licensing Task Force.  However, the Gastown
    Historic Area Planning Committee has reviewed the July 1993 report. 
    The Gastown Committee recommends that enforcement procedures be
    strengthened to quickly and firmly deal with establishments which
    create public nuisance impacts, especially on the residential uses in
    the area.  It also recommends that the moratorium be adjusted to
    consider applications for new drinking establishments, like Steamworks,
    or improvements to existing beer parlours and restaurants to enable
    them to better cater to local business people, tourists and others. 
    These applications would be reviewed on a case-by-case basis, subject
    to consultation with nearby residents and property owners.  Generally
    the Committee believes that competition rather than regulation will
    result in a better mix of entertainment uses. 

    Staff recommend the following:

    L1.  THAT because of the large number of existing licensed seats, the
         moratorium on new licensed establishments in Gastown remain in
         place and be reviewed, in consultation with local residents and
         property owners, once Council indicates adequate enforcement
         measures are in place to deal with the negative impacts of
         drinking establishments in areas with housing.

    As an alternative to the staff recommendation in L1, the Gastown
    Historic Area Planning Advisory Committee recommends:

    L2.  THAT the moratorium be adjusted as soon as possible to permit new
         drinking establishments and improvements to existing ones on a
         case-by-case basis, subject to consultation with nearby residents
         and property owners.

    CONCLUSION

    Historically, many of the city's pubs and cabarets have been in areas
    of the downtown where they have affected a relatively small number of
    people.  The population of these areas has been growing rapidly and is
    expected to double over the next two decades.  This report proposes a
    strategy to reduce the impacts of existing licensed establishments and
    to identify where new ones should locate.  The strategy is, in part,
    built on the belief that the City should proceed cautiously, as there
    is much we will learn as we work with local residents and business
    people to achieve what are sometimes conflicting objectives.  It also
    assumes that the downtown cannot accommodate all of the region's
    growing demand for licensed establishments, and that other areas should
    provide opportunities for appropriate forms of entertainment as part of
    their planning processes.


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