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.