SUPPORTS ITEM NO. 2 P&E COMMITTEE AGENDA JANUARY 30, 1997 POLICY REPORT BUILDING AND DEVELOPMENT Date: January 15, 1997 Dept. File No. 96042 - RWW CC File: 5303-1 TO: Standing Committee on Planning and Environment FROM: Director of Land Use and Development SUBJECT: CD-1 Text Amendment to Add Family Entertainment Centre - 750 Burrard Street (Former Public Library) RECOMMENDATION THAT the application by James Cheng, Architect, to amend CD-1 By-law No. 7246 to add the use Family Entertainment Centre be REFUSED. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY At a Public Hearing held on June 25, 1996, in approving a rezoning application by the Director of Planning for 750 Pacific Boulevard which included a Family Sports and Entertainment Centre , Council unanimously resolved: ..... THAT staff be instructed to advise other applicants seeking similar approvals to the Family Sports and Entertainment Centre, that Council is unwilling to consider such applications until an evaluation has been completed on this project after 12 months. PURPOSE AND SUMMARY This report recommends that Council refuse a CD-1 text amendment application for the former Public Library site at 750 Burrard Street which would, if approved, allow a facility similar to the Family Sports and Entertainment Centre under development at the Plaza of Nations. The applicant has been consistently advised by staff that the proposed Virtual Reality E-Zone proposal for the former Library building is sufficiently similar to the Family Sports and Entertainment Centre (at the Plaza of Nations) as to be governed by Council s motion on similar approvals which are to be discouraged until an evaluation has been completed on this project after 12 months (herein after referred to as a moratorium). The applicant disagrees with staff s interpretation of the policy and has submitted this rezoning as a means of broaching the issue with Council. Staff recommend that the text amendment application be refused. BACKGROUND Council considered the Family Sports and Entertainment Centre at the Plaza of Nations (750 Pacific Boulevard) at two Public Hearings, the second of which occurred on June 25, 1996. Two hearings were necessitated by the inability of the owners of the Plaza of Nations to reach agreement with City staff on the provision of a right-of-way for the proposed False Creek streetcar, a condition established at the first Public Hearing. The second Public Hearing narrowed the scope of the CD-1 for the Plaza of Nations, but provided for the Family Sports and Entertainment Centre to proceed, as the operator is only a lessee and not connected to the owners of the Plaza of Nations. The principal issue surrounding both the Plaza of Nations development and the current former Public Library proposal is the sizeable arcade component. Under current City regulations, an arcade (more than three machines) is restricted to individuals 18 years and over. The Family Sports and Entertainment facility at Plaza of Nations can accommodate up to 150 arcade machines and allows for individuals of all ages to attend, except that children under the age of 15 years of age are subject to restrictions laid out in the License By-law (see Appendix A). Hence, the Plaza of Nations project is seen by Council and staff as a pilot to test a possible expansion of the latitude of existing arcade regulations, or alternatively creating a use separate from arcades, such as family entertainment centre. The applicant for the former Public Library proposal indicates that the 100 or so arcade machines are essential to the success of the operation. DISCUSSION The operator of the Family Sports and Entertainment Centre at the Plaza of Nations indicates that opening of that facility is expected by mid-March or early-April of 1997. Some delay was caused in awaiting the outcome of legal action taken against the City s decision on the rezoning which argued the decision contravened the Criminal Code of Canada regarding gambling. A decision was ultimately reached in favour of the City and minor changes were made to the License By-law in October 1996 to clarify the issue related to redemption games. Staff believe that the Plaza of Nations facility and the current proposal for the former Public Library are similar. Each has a major theme component. In the case of the Plaza of Nations centre, simulated sports activities such as baseball, basketball, hockey and golf provide the principal focus. These activities will be required under the City s definitions (see Appendix A) to take up the majority of the floor area. The theme component is augmented with video arcade games (up to 150 arcade machines), food outlets and a retail outlet for the purchase of merchandise. The proposal for the former Public Library (5 023 m2 [54,070 sq. ft.] inclusive of all functions) is focussed on the theme of virtual reality . This theme is demonstrated through games, rides or group activities, which provide the participant with sensory and motion experiences intended to simulate either real (e.g., racing cars or jet planes) or imaginary experiences (e.g, hunting ghosts). As with the Family Sports and Entertainment Centre, the theme component is augmented with a sizeable video arcade game area (at least 100 arcade machines), food outlets and a retail outlet. While the principal themes of these two operations may be different, both operations fall under the definition of family sports and entertainment centre , and both contravene the City s licensing regulations for arcades by seeking to allow persons under 18 on their premises. In addition to the current proposals, staff are aware that a third company, Playdium Entertainment Corporation, is also interested in the Vancouver market. Playdium opened a 4.65 ha (11.6 acre) indoor/outdoor total physical and virtual entertainment centre , including a sizable arcade component, in Mississauga, Ontario in the fall of 1996. The indoor component is 3 066 m2 (33,000 sq. ft.) in size. Playdium representatives have met with City staff and are monitoring the current proposal for the former Public Library with hopes of gaining approval for their own facility this year if this one is approved. The local arcade industry has already indicated its concern with what is perceived by their organization to be a monopoly position which will be held by the Plaza of Nations facility. Representatives did not support the pilot approach and moratorium, with a preference to simply extending the family sports and entertainment centre regulations to all. Staff note that the City s past experiences with arcades, particularly on Granville Street, form the basis for Council s cautious attitude, and the City should carefully measure the impact of this new use after a year of operation at the Plaza of Nations. Consequently, staff believe that Council should send the appropriate message to the industry that large-scale family entertainment facilities with an arcade component will be refused in accordance with the moratorium. If Council wishes to reconsider the moratorium by concluding that this application should be processed in the normal manner, then staff will undertake a full analysis of the proposal as well as meet with representatives of the arcade industry and representatives of Playdium and other companies who may be interested in developing theme entertainment centres. Existing operations in other North American cities (e.g., Mississauga, Seattle) would be analysed as well. CONCLUSION Staff recommend that the application to amend the text of the CD-1 for the former Public Library be refused, as the proposal falls within the intent of Council s moratorium. The rezoning application may be re-submitted for analysis subsequent to staff s evaluation and a favourable Council decision in early 1988 related to experience with the Plaza of Nations Family Sports and Entertainment Centre . * * * * * APPENDIX A Page 1 of 3 RELEVANT BY-LAW EXTRACTS FAMILY SPORTS AND ENTERTAINMENT CENTRE CD-1 BY-LAW NO. 7592 Family Sports and Entertainment Centre, which means premises where simulated sports and associated circulation space occupy the majority of floor area . LICENSE BY-LAW NO. 4450 [DEFINITION - Section 2] Arcade means any premises containing four or more machines on which mechanical, electrical, automatic or computerized games are played for amusement or entertainment and for which a coin or token must be inserted or a fee is charged for use. Family Sports and Entertainment Centre means premises where a minimum of 55 percent of the total floor area is used for simulated sports and associated circulation space, and the balance is used for the administration of the centre, the sale of food and retail products, and the provision of vending machines offering games for amusement or entertainment but not including games where the outcome cannot be affected by the skill and ability of the player. Simulated Sports means games or activities involving the use of baseball batting cages, basketball courts, hockey rinks, golf simulators, miniature golf, climbing walls and similar sports related games and activities. Prize Game means a game or automatic machine, the successful playing of which entitles the player to money, goods, wares or merchandise and the player pays money or other valuable consideration to play the game. APPENDIX A Page 2 of 3 [DUTIES AND RESPONSIBILITIES] Arcade and Shooting Gallery 10.3 No person carrying on the business of an arcade or shooting gallery shall permit any machine on which mechanical, electrical, automatic or computerized games are played and for which a coin or token must be inserted or a fee is charged for use to be operated, or any customer, person or onlooker to remain in such arcade or shooting gallery, or any place where such a machine as aforesaid is operated, between the hours of 1:00 a.m. and 6:00 a.m.; and no such person shall permit any person under the age of eighteen years to enter or remain at any time in any room in which any such machine is kept. Family Sports and Entertainment Centre Section 15.2 (1) The provisions of this Section apply to all persons carrying on the business of operating a family sports and entertainment centre. (2) No operator of a family sports and entertainment centre shall install, allow to be installed or otherwise provide for use on the premises less than 4 or more than 150 vending machines offering games for amusement or entertainment. (3)a) No operator of a family sports and entertainment centre shall install, allow to be installed or otherwise provide for use on the premises any machine if it, or the operator, redeems successful play with money or with prices which can be redeemed for money on the premises. b) No operator of a family sports and entertainment centre shall install, provide or conduct prize games if the outcome of such game is determined by chance or mixed chance and skill. (4) No operator of a family sports and entertainment centre shall permit any customer, person or onlooker to enter or remain on the premises between the hours of 1:00 a.m. and 8:00 a.m. except that in the case of a person under the age of fifteen years no operator shall permit that person to enter or remain on the premises between the hours of 10:00 p.m. and 8:00 a.m. An operator of a family sports and entertainment centre shall be deemed to permit such play, operation or use if it occurs while the operator or an employee of the operator is present on the premises. APPENDIX A Page 3 of 3 (5) No operator of a family sports and entertainment centre shall permit any person apparently or actually under the age of fifteen years to enter or remain on the premises between the hours of 8:00 a.m. and 3:00 p.m. on Mondays to Fridays, inclusive, unless the day is a school holiday or unless the underage person is accompanied at all times by the person s parent, legal guardian or school teacher. (6) Where reasonable doubt exists as to the age of a person desiring to enter or remain in a family sports and entertainment centre the operator shall not permit the person to enter or remain on the premises if the person is unable to provide documented proof of age. (7) No operator of a family sports and entertainment centre shall allow any intoxicated person on the premises or allow any person on the premises to drink alcoholic beverages or take drugs or take in any gambling. (8) Every operator of a family sports and entertainment centre shall keep the premises clean, shall not cover up any windows in a manner so as to prevent a clear view of the interior of the premises, and shall not enclose individual activity areas in a manner which prevents views into the activity area. (9) Every operator of a family sports and entertainment centre shall post in a conspicuous place a summary of the rules of conduct for customers, including the rules contained in this section 15.2.