ADMINISTRATIVE REPORT Date: October 2, 1996 Dept. File No.2200IC.COV C.C. File: 2613-1 TO: Vancouver Liquor Licensing Commission FROM: Deputy Chief License Inspector SUBJECT: 15 Water Street - Purple Onion Cabaret Inc. Increase in Seating Capacity - Class 'C' Cabaret RECOMMENDATION THAT the Vancouver Liquor Licensing Commission advise the Liquor Control and Licensing Branch it does not endorse the application by the Purple Onion Cabaret Inc., to increase seating capacity by 38 seats in the 'C' Cabaret at 15 Water Street. GENERAL MANAGER'S COMMENTS The General Manager of Community Services RECOMMENDS approval of the foregoing. COUNCIL POLICY On November 6, 1993, Council approved a recommendation that no new liquor licenses or amendments to existing licenses to increase seating capacity or extend hours of sale (except restaurant Class 'B-1' license) be permitted in the Downtown Eastside or Gastown areas. PURPOSE The Purple Onion Cabaret Inc., is requesting a Council resolution endorsing its request to increase seating capacity by 38 seats, making a total of 350, in the Class 'C' Cabaret at 15 Water Street. BACKGROUND The subject premises are located in the Gastown area, which is zoned HA-2 (Appendix A). This neighbourhood is a mixture of retail, office and residential. There are 365 low-income housing units within a 300 foot radius. There is also a day care centre, the Downtown Eastside Women's Centre and a detox centre located within the survey area, along with 11 Class 'A' Pubs (1635 seats), three Class 'A' Lounges (235 seats), 11 Class 'C' Cabarets (1865 seats), and 35 licensed restaurants. DISCUSSION The Purple Onion Cabaret, which was formerly Punchlines Comedy Club, was purchased by the applicant in 1995, and the type of entertainment changed to jazz and dance. As a result of renovations undertaken in September 1995, the seating capacity of the club was reduced from the permitted 337 to 312. Due to the success of the club, the applicants feel there is now a need to increase the capacity to 350. The hours of operation will remain the same at Monday to Saturday 7:00 p.m. to 2:00 a.m. and Sunday from 7:00 p.m. to 12 midnight. The applicants state that at the time of the purchase they were not aware of the moratorium in the Gastown area, and are requesting an exemption from the policy. COMMENTS The Police Department is opposed. The Department is concerned that if this amendment is granted, it will encourage other establishments in the neighbourhood to apply for an increase in seating capacity. Even with the present capacity, residents in the nearby single room occupancy hotels have been complaining about the noise from the Purple Onion, particularly at weekends. Windows have been left open allowing the music from the live bands to emanate throughout the streets, and patrons lining up outside have created disturbances. It is felt that the residents in this changing area will not tolerate disturbances, and an example would be the problems experienced between Club NRG and residents. The Environmental Health Department has no comments. The Planning and Social Planning Departments recommend the moratorium on new liquor seating in the Gastown area be continued. The Housing Centre does not support this application because of the moratorium and the close proximity to several low-income housing units. CONCLUSION Staff recommend that the existing moratorium on increased seating or new licenses for the Gastown area be reaffirmed and this application not be endorsed by Council. This area already has an over-abundance of cabaret and pub seats which impact on the increasing residential component of the neighbourhood. It is anticipated that a number of similar applications will be filed by other establishments if this application is endorsed. * * *