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. * * * * *