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.

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