Theatre Row Liquor Licensing Policy

ITEM NO.2
P&E COMMITTEE AGENDA
JUNE 19, 1997

POLICY REPORT
URBAN STRUCTURE AND LICENSING

Date: May 28, 1997
Dept. File No. NE
C.C. File No.: 2610-1

TO: Standing Committee on Planning and Environment

FROM: Director of Central Area Planning, Chief License Inspector and
Chief of Police, in consultation with Directors of Legal
Services and Social Planning, and General Manager of
Engineering Services

SUBJECT: Theatre Row Liquor Licensing Policy

RECOMMENDATIONS

A. THAT the 700, 800, and 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
amendments to the Downtown Official Development Plan, and
other relevant by-laws and policy documents to encourage a
variety of entertainment uses and activities.

B. THAT allowance be made in-principle for a combined total of up
to 1,000 Class A (Hotel Pub or Lounge), Class C (Cabaret) and
Class D (Neighbourhood Pub) liquor licensed seats on Theatre
Row, consistent with the Theatre Row Policing Strategy and
generally distributed as follows:

1. 700 Block of Granville - 2 cabarets, or 1 cabaret and 2
neighbourhood pubs, or 1 cabaret and 1 hotel pub and/or
lounge and 1 neighbourhood pub.

2. 800 Block of Granville - 2 neighbourhood pubs, or 1 hotel
pub and/or lounge and a neighbourhood pub, or possible
consideration of a cabaret on the west side of Granville
and 1 neighbourhood pub.

3. 900 Block of Granville - 2 cabarets and 2 neighbourhood
pubs, or 1 cabaret and 3 neighbourhood pubs, or 1
cabaret, 2 neighbourhood pubs and one hotel pub/lounge.

C. THAT the following process be initiated to determine which
liquor license applications can be considered for approval on
Theatre Row:

1. An advertisement be placed in the Vancouver Sun, Province
and Georgia Straight newspapers indicating that potential
applicants have 30 days to submit expressions of interest
for locating Class A, C, or D licensed seats on Theatre
Row with no more than 200 seats per building, unless the
applicant clearly demonstrates that more seats are
required for the financial viability of a project which
will provide significant public benefits.

2. After the 30 day expression of interest period staff
review all initial proposals received and recommend which
Council should endorse now, which should be given
additional time to prepare complete applications, and
which should be refused. At least 400 seats should be
reserved to encourage relocations from the residential
area of Downtown South.

3. After the initial proposals are processed, until December
1998, applications for Class A (except small lounges with
up to 125 seats in new or renovated hotels), C and D
seats which do not result in either the relocation of
existing seats out of the residential areas of Downtown
South or the development of a new hotel, should not be
endorsed.

4. Staff, including Police, Licensing, Social Planning, and
Central Area Planning, as well as the LCLB, will monitor
the impacts of licensed establishments on Theatre Row and
elsewhere in Downtown South and report back by December
1998 on the effectiveness of the approved measures for
dealing with problem licensed premises, and whether
further policy changes are required.

D. THAT all applications for new licensed seats in the 700 to
1300 Blocks of Granville Street, including Theatre Row, be
referred to the Chief of Police, General Manager of
Engineering Services, Chief License Inspector and Director of
Central Area Planning to ensure that on an ongoing basis
licensed establishments:

1. meet the location requirements of the Policing Strategy
[see recommendation B];
2. provide a business plan demonstrating financial viability
and sound management experience related to a liquor
licensed establishment;
3. minimize noise and line-up impacts;
4. install non-breakable glass for ground floor storefronts;
5. provide active streetfront daytime retail or services on
Granville for the interest and enjoyment of pedestrians;
6. operate video cameras to provide surveillance of adjacent
sidewalks and lanes;
7. provide adequate lighting in the lanes;
8. provide only servicing and emergency access to and from
the lanes; and
9. work with staff, local merchants and property owners to
improve the cleanliness and reduce the amount of graffiti
and litter on the street, lanes and adjacent properties.

E. THAT applications for Class 'A', 'C', or 'D' seats on Theatre
Row that meet the requirements outlined in Recommendation 'D'
above be evaluated according to the following criteria:

1. reducing the number of licensed seats in the residential
areas of Downtown South;

2. contributing to the retention or provision of low-income
housing;

3. helping preserve a heritage building;

4. resulting in the development of a new building, designed
to enhance Theatre Row's historic character;

5. adding to the variety of entertainment opportunities
needed to ensure the success and vitality of Theatre Row
as an entertainment district;

6. creating employment and training opportunities for
low-income residents of the downtown;

7. providing other significant public benefit; and

8. maximizing distance from other class 'A', 'C' or 'D'
licensed establishments.

F. THAT the following incentives be offered, if requested by
applicants, to help attract applications to Theatre Row,
especially those which would relocate existing seats from the
residential areas of Downtown South:

1. using the response to a neighbourhood notification as an
alternative to formal polling in order to determine
public support;

2. relaxing the distancing requirement to permit one or more
neighbourhood pubs;

3. allowing pay-in-lieu parking;

4. minimizing the number of people exiting out onto the
street at the same time, on a trial basis, by extending
the closing time of cabarets to 3:00 a.m., with no
alcoholic beverages sold after 2:00 a.m.; and

5. considering other proposals which result in a net public
benefit for the community.

G. THAT Council not endorse any applications in the Theatre Row
Entertainment District for new Class 'A', 'C', or 'D' licensed
establishments, or for extensions of hours of operation and/or
expansion of seating capacity for existing licensed
establishments, until the Directors of Central Area Planning
and Legal Services, in consultation with the Liquor Control
and Licensing Branch and the Chief License Inspector and Chief
of Police, report back on the legal implications, costs and
fees for issuing such establishments temporary development
permits, subject to performance standards to minimize
neighbourhood impacts;

FURTHER THAT the report on temporary development permits come
forward at the same time as the report from staff on new
liquor license proposals for Theatre Row. [see Recommendation
C.2]

H. THAT the Director of 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 a local shopping area
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:

1. deleting neighbourhood pubs and cabarets as permitted
uses;

2. limiting the number of Class A (pub plus lounge) seats to
a maximum of 125 endorsed for each new hotel;

3. 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

4. permitting Class 2 restaurants on the 1000 Block of
Granville Street.

I. THAT staff continue to work with Theatre Row business people,
Barwatch 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, including the possible need for additional
services for low-income residents.

J. THAT Council give favourable consideration to endorsing
applications for extensions of hours of operation or increased
seating capacities in existing licensed establishments
throughout the City, subject to neighbourhood consultation and
legal agreements that deal with neighbourhood impacts and
secure the affordability and upgrading of low-income housing,
or which provide other significant public benefits.

K. THAT staff continue to work with the LCLB to better coordinate
enforcement efforts concerning problem premises and to share
information related to applications for liquor licenses.

GENERAL MANAGER'S COMMENTS

The General Manager of Community Services RECOMMENDS approval of
the foregoing.

COUNCIL POLICY

- On May 28, 1992, Council placed a moratorium on endorsing new
liquor licenses in Downtown South, subject to development of a
liquor licensing policy for the downtown.

- On January 7, 1993, Council approved the Terms of Reference for a
Task Force to:

1. Recommend measures to minimize the impacts of liquor-licensed
establishments on existing and future residential uses
(including consideration of such factors as use separations,
hours of operation, enforcement arrangements, noise
mitigation, etc.).

2. Recommend one or several areas where the moratorium could be
lifted in the interests of establishing a successful
entertainment focus in Downtown South, probably on Granville
Street, but also giving consideration to Robson Street, Davie
Street and the Yaletown Heritage District.

3. Recommend measures to upgrade or transform some existing hotel
pubs while protecting SRO housing units.

4. Consider ways to relocate existing cabarets from the
residential area east of Granville Street (New Yaletown) into
appropriate commercial district(s).

5. Review the locational requirements of neighbourhood pubs in
regard to the demand for such facilities in Downtown South.

- On July 29, 1993, Council received the report of the Downtown South
Liquor Licensing Task Force and approved in principle the creation
of an entertainment district on the 700 to 900 Blocks of Granville
Street and a local shopping district and transition area on the
1000 to 1300 Blocks.

- On July 11, 1996, Council adopted a Downtown Liquor Licensing
Policy and endorsed, as a policy direction, the designation of
Theatre Row as an Entertainment District, subject to securing
adequate enforcement measures and policing strategy. It also
confirmed that cabaret should not be a permitted use in the
residential areas of Downtown South [see Appendix A].

SUMMARY

In 1992, Council placed a moratorium on new liquor licensed seats in
Downtown South to help encourage the creation of a new residential
community. Council subsequently approved in principle a Downtown Liquor
Licensing Policy, which identified Theatre Row (700 to 900 Blocks of
Granville) as an "entertainment district". This is one of many
components in a strategy to help revitalize Granville Street. It was
adopted subject to securing adequate measures to reduce the impacts of
existing and new licensed establishments. This report outlines the
progress which has been made on the following measures and recommends
policies to replace the moratorium:

- creating a City Licensing Coordinator staff position and
funding additional property use inspections and legal staff;
- improving coordination of City and Provincial enforcement
resources;
- identifying issues which may require changes to Provincial
legislation; and
- proposing interim mechanisms to regulate seating capacity and
hours of operation for new and expanding establishments
through issuing temporary development permits.

In addition, an overall Policing Strategy has been developed for Theatre
Row to:

- limit the number of licensed premises and seats on each block
in order to avoid unmanageable concentrations of crowds and
liquor-related problems;
- establish a limit of a combined total of about 200 licensed
cabaret and pub seats per building, unless the applicant
clearly demonstrates that more seats are required for the
financial viability of a project which will provide
significant public benefits;
- encourage a variety in the type and size of new premises;
- minimize the number of on-street lineups and require improved
lineup management; and
- work cooperatively with local businesses and residents to help
improve the image of the area and reduce crime.

Given these enforcement measures, staff recommend Council establish a
procedure for endorsing a combined total of up to 1,000 additional Class
"A" (hotel pub or lounge), Class 'C' (cabaret), and Class 'D'
(neighbourhood pub) seats on Theatre Row. This procedure would offer
incentives to help maximize the potential public benefits of any new or
relocated establishments, and minimize their potential negative impacts.
It would allow applicants to submit proposals for consideration over the
next 30 days. It is suggested that a minimum of 400 of the seats be
reserved until at least the end of 1998 to encourage several existing
cabarets to relocate from the residential areas of Downtown South.

PURPOSE This report recommends licensing and land use policies and reviews a
policing strategy to replace the existing moratorium on new licensed
establishments in Downtown South, by permitting up to a combined total
of 1,000 additional Class A (hotel pub or lounge), Class C (cabaret),
and Class D (neighbourhood pub) seats on Theatre Row, and by deleting
"Neighbourhood Public House" and "Cabaret" as permitted uses in the 1000
to 1300 Blocks of Granville Street. No new Class A or Class C seats
would be permitted in the residential areas of Downtown South.

Future reports will address implementing Council's liquor licensing
policy in other areas of the downtown.

BACKGROUND

In 1992, Council placed a moratorium on new pubs and cabarets in
Downtown South to help create a livable residential community. In 1993
it appointed a task force to propose measures to reduce the impacts of
existing establishments and to identify alternative locations for
different types of drinking places. In 1996, Council adopted a Downtown
Liquor Licensing Policy and instructed staff to report back on
enforcement and policing measures to help ensure that up to 1,000
additional licensed seats could be safely accommodated on Theatre Row
(i.e., the 700 to 900 Blocks of Granville Street).

Since the policy was adopted:

- the Mayor and the Chair of the Vancouver Liquor Licensing
Commission (VLLC) have met with the Attorney General to review
overall policy directions;

- the VLLC has made a submission to the recent Provincial Liquor
Licensing Review (see Appendix B); and

- staff from the City and the Provincial Liquor Control and Licensing
Branch (LCLB) have met several times to explore ways of improving
enforcement within existing mandates and to identify areas which
may require new legislative authority.

Since the moratorium was initiated, staff have received more than
fifteen inquiries for new licensed premises on Granville Street. Four of
these have resulted in formal applications on the 900 Blocks of
Granville (see map in Appendix C). The remainder chose to not submit
formal applications until Council had an opportunity to establish its
policy. One of the four applicants indicated he may be petitioning the
Court to order Council to approve a new cabaret at 950 Granville, or to
consider the application on its merits.

DISCUSSION

As indicated in the following table, there are more than 5,500 licensed
seats in the moratorium area of Downtown South. This is about 32% of
cabaret and 15% of the hotel pub seats in the city. Appendix D lists the
location of those seats in Downtown South.

Number of Licensed Seats
(number of establishments in parentheses)

Class A Class A Class C
Hotels Hotel Lounge Cabarets Total

Theatre Row - - 1,095(2) 1,095(2)
(700-900 Blocks)

Granville Street 246(3) 1,710(7) 325(2) 2,281(12)
(1000-1300 Blocks)
Downtown South 352(4) - 1,774(7) 2,126(11)
Residential

Total 598(7) 1,710(7) 3,194(11) 5,502(25)

Two of the most important objectives of the Downtown Liquor Licensing
Policy are to reduce the impacts of the 2,126 seats in licensed
premises, chiefly cabarets, in the residential areas of Downtown South,
and to consider providing opportunities for some additional licensed
entertainment venues on Theatre Row.

It is expected that some of the cabarets in the residential areas will
disappear over time as the sites on which they are located are
redeveloped for housing. However, this will likely be a slow process. As
Downtown South continues to develop into a primarily residential
neighbourhood, staff anticipate increasing numbers of complaints about
the remaining licensed premises.

Issue #1. Strengthening Enforcement

The Downtown Liquor Licensing Policy Report made the following
recommendations to help improve the effectiveness of enforcement actions
against problem premises. Beneath each recommendation is an update on
what has been done thus far:

- Create a City Liquor Licensing Coordinator staff position and
fund evening and weekend property use inspections

Council has approved funding for a Licensing Coordinator, more
inspections, support staff and a lawyer to deal with problem
premises more efficiently, with cost offsetting licensing fee
increases. Job classifications have been completed by the GVRD, and
the positions will be posted and filled during the second quarter
of 1997.

- Add more Provincial inspectors

The LCLB has reorganized its inspection team and is working more
closely with City staff to better coordinate and focus enforcement
efforts, and to align inspection areas with police district
boundaries. Staff believe this could have the same effect as
additional inspectors.

- Deal more quickly with problem premises

Staff have established an inter-departmental team to review
applications for new premises, and improved reporting processes
have been introduced to track complaints and enforcement actions.
Integrated Services Teams are playing an important role in
assisting with and coordinating enforcement efforts.

The LCLB will consider requests from the City to require a
probationary period for any expansions of seating capacity or
extensions of hours of operation, on a case by case basis.

- Form an inter-governmental task force on enforcement issues.

LCLB staff have expressed support for developing an
inter-governmental task force on enforcement issues. This would
likely have representation from the Province, the Union of BC
Municipalities, the City and other interested municipalities.

The improved coordination between City and Provincial inspectors has
increased our ability to deal with problem premises. Further
improvements in response time and effectiveness are anticipated with the
approved addition to the City s legal and licensing staff.

Even with more coordination and staffing, the LCLB has indicated that
under existing Provincial legislation it is very difficult to close
problem premises quickly. This is because premises are generally able to
remain open until their owners have exhausted their appeal rights.
Revising the structure of the appeal process will require a long-term
effort which will have to be addressed by an inter-governmental task
force.

However, under current legislation, staff are exploring possible ways to
roll back hours or seating capacity more quickly if they are approved on
a temporary basis by the Province and/or by the City. This could apply
to:

(a) existing premises which request an increase in seating or hours; or

(b) new establishments which, in exchange for City endorsement, first
agree to accept shorter hours and/or a lower seating capacity than
the maximum permitted, and then request temporary approval for an
increase in capacity.

If the Province was to issue a temporary increase which creates negative
impacts, it might be possible for the LCLB to roll back the licensed
capacity. However, the owner would still have the right to appeal any
LCLB decision to the Liquor Appeal Board. Staff are also examining the
possibility that the Appeal Board could make the "temporary" capacity
permanent, if there are no complaints about the establishment.

The City's Corporation Counsel advises that as an interim measure,
until Provincial regulations are amended, it is possible for the City to
issue temporary development permits for new licensed establishments. The
City could also require that existing establishments requesting
extensions in hours or expansion of seating be required to extinguish
their development permit and apply for a temporary permit that allows
the adjusted hours or seating. The temporary permit would be issued
subject to a legal agreement that addresses potential neighbourhood
impacts. Should the establishment adversely affect the neighbourhood,
the Director of Land Use and Development could be asked to not re-issue
the temporary development permit. At that point the business would have
to close.

Another possibility for existing establishments would see their current
development permits continued, and a second, temporary permit issued
which allows the extended hours or expanded seating. If it became
necessary to not renew the temporary permit, the operator would still be
able to continue under the original permit's more limited hours or
seating.

Some further work must be carried out by staff, in consultation with the
LCLB and the industry, to determine the costs and other implications of
issuing such temporary permits.

Although the City has not secured all the enforcement resources
suggested in the Downtown Liquor Policy, staff believe that enough
progress has been made to warrant permitting some additional licensed
seats on Theatre Row. Staff will advise Council on the option of issuing
temporary permits before Council decides on endorsing any specific
liquor license proposals for Theatre Row. This is seen as an interim
measure which may be needed until the longer term Provincial Policy work
is completed.

Issue #2. Licensed Capacity for Theatre Row

Theatre Row was identified as a potential "entertainment district"
because it is adjacent to the Central Business District, is well served
by transit, does not contain a large amount of housing and already has a
strong entertainment focus. The area contains many cinemas, restaurants,
and entertainment-related retail stores, as well as the Orpheum and
Vogue Theatres, and the Commodore and Roxy cabarets. Strengthening this
focus by permitting several new licensed establishments is suggested as
one of many components in a strategy to revitalize Granville Street.

After reviewing the experiences of entertainment areas in Vancouver and
other comparable cities, staff have concluded that an unlimited increase
in seats is not appropriate, but that a combination of approximately
1,000 hotel pub or lounge, cabaret and neighbourhood pub seats could be
accommodated on Theatre Row, without creating significant negative
impacts. This estimate is based on: improved coordination between the
City's inspection and enforcement agencies described in this report, the
likelihood of some additional regulatory resources, the proposed
Policing Strategy, the positive experience we have had over the last few
years with club owners through Barwatch, and the positive effect
additional entertainment venues would have on sustaining recent progress
in revitalizing Theatre Row. It is recognized that any increase in seats
carries some risk of impacts on a community which already contains a
high concentration of drinking venues.

Issue #3. Policing Strategy

The proposed Policing Strategy contains a wide range of possible
initiatives aimed at ensuring public safety and keeping the street
lively and attractive. The Strategy also includes several key proposals
representing the conditions under which the Police Department would
support additional seating capacity on Granville. These include:

establish a limit on the number and size of new cabarets;
encourage variety in the type and size of new licensed
premises;
limit the number of licensed premises and the number of seats
on each block in order to avoid unmanageable concentrations of
crowds and liquor-related problems; and
minimize the number of on-street line-ups and require improved
line-up management.

Staff endorse the Policing Strategy's recommendations on the number,
variety and "density" of new establishments, as well as the principle of
improving line-up management. Consequently, staff propose that the
capacity for 1,000 additional licensed seats on Theatre Row be limited
and distributed on a block-by-block basis according to the following:

generally no more than a total of about 200 licensed seats per
building, unless the applicant clearly demonstrates that more
seats are required for the financial viability of a project
and that the project will provide clear public benefits;
minimize the number of people exiting at the same time, on a
trial basis, by extending the closing time of cabarets to 3:00
a.m., with no alcoholic beverages sold after 2:00 a.m;
result in no more than two outside line-ups for licensed
establishments per block;
discourage mixing of line-ups for licensed establishments and
other uses such as theatres or cinemas;
add to the variety of entertainment opportunities needed to
ensure the success and vitality of Theatre Row as an
entertainment district; and
- provide active streetfront, daytime retail or service uses on
Granville.

As a consequence of these criteria, staff recommend the following
possible mixes of new establishments as the maximums to be considered
for each block:

(a) 700 Block of Granville

This block currently contains Pacific Centre on the west side of
Granville, with Vancouver Centre Cinema, retail stores and a large
vacant lot on the east side. Since this block contains no licensed
establishments and Pacific Centre is unlikely to propose one, staff
suggest consideration of adding a maximum of:

2 cabarets, or
1 cabaret and 2 neighbourhood pubs, or
1 cabaret and 1 hotel pub/lounge and 1 neighbourhood pub.

(b) 800 Block of Granville

This block currently contains The Commodore, The Orpheum Theatre,
and the Capital Six, Granville, Caprice and Plaza Cinemas, along
with several retail stores and restaurants. The presence of the
900 seat Commodore Ballroom precludes a second late-night cabaret
on the east side of Granville at this time. Staff therefore
recommend consideration of adding a maximum of:

2 neighbourhood pubs, or
1 hotel pub/lounge and a neighbourhood pub
- possible consideration of 1 cabaret on the west side of
Granville and 1 neighbourhood pub.

This block currently contains the 195 seat Roxy Cabaret, the Vogue
Theatre, Paradise Cinema and several restaurants, retail stores and
vacant sites. The presence of the Roxy should preclude more than
one additional cabaret which fronts on Granville, as this would add
a second large line-up on the street. However, a corner building
such as the former Food Fair building at 900 Granville could
contain a cabaret if the line-ups are located on Smithe and
controlled to not spill over onto Granville. For this block, staff
suggest consideration of adding a maximum of:

2 cabarets and 2 neighbourhood pubs, or
1 cabaret and 3 neighbourhood pubs, or
1 cabaret, 2 neighbourhood pubs and one hotel pub/lounge

Issue #4. Criteria for Endorsing New Establishments

There are over 5,500 licensed seats in twenty-five establishments in the
moratorium area of Downtown South. Most of these establishments are well
run. However, the large numbers of people lining-up for admission and
leaving late at night creates greater potential for increased levels of
noise, vandalism, fighting, drunk driving, and other negative impacts on
the community. There is no simple relationship between the number of
licensed seats and alcohol related problems, but it has been found that
the propensity to drink and the consequential impacts generally increase
with availability. Furthermore, as more people have been moving into the
area, there has been an increase in calls for policing and other costly
public services.

In addition to playing a role in revitalizing Granville Street, the
Theatre Row Liquor Licensing Policy is intended to help reduce the
impacts of existing establishments by encouraging applications which
would result in a reduction of seats in the residential areas of
Downtown South. Other possible public benefits which should be considered in evaluating proposals, in addition to the criteria outlined
in Issue #3, include the following which are listed in order of
priority:

- contributing to the retention or provision of low income housing;
- helping to preserve an existing heritage building;
- resulting in the development of a new building designed to enhance
Theatre Row's historic character;
- creating employment and training opportunities for local residents;
and
- other significant public benefits.

Issue #5. Incentives for Relocating Establishments to Theatre Row

A variety of incentives should be offered, if requested by applicants,
to help attract applications to Theatre Row, especially those which
would relocate existing seats from the residential areas of Downtown
South. These include:

- using the response to a neighbourhood notification as an
alternative to formal polling to determine public support;
- permitting one or more neighbourhood pubs;
- allowing pay-in-lieu parking; and
- other proposals which result in a net public benefit for the
community.

Issue #6. City and Provincial Roles in the Approval Process

The General Manager of the LCLB has the decision-making authority
concerning which, if any, applications for licensed seats will be
approved, subject to review by the Liquor Appeal Board. According to
Provincial policy, each application is evaluated by the LCLB on its own
merits and in the order in which it is received as a complete
application. Generally an application is not considered "complete" until
the municipality has included its comments.

The City has two significant ways in which it can influence the General
Manager s evaluation:

- by amending zoning and issuing or refusing to issue development
permits for specific premises; and

- by recommending that the General Manager approve or refuse specific
applications.

The Corporation Counsel advises that Council can help ensure that the
proposals it believes would best enhance the community are approved by
the LCLB, by:

- adjusting the order in which the LCLB receives "complete
applications" by instructing staff to provide advice to the LCLB on
the applications in an appropriate order; and

- advising the Director of Land Use and Development that a
development permit not be issued for proposals for licensed
establishments it does not favour endorsing.

Should Council recommend refusal of a specific application and the
Development Permit Board refuse to issue a permit based on the
evaluation criteria of the Theatre Row Liquor Licensing Policy, the
General Manager can refuse to consider other applications in the area
for up to one year.

Issue #7. Existing Applications

Staff have received about fifteen inquiries for new establishments on
Theatre Row. Most have chosen to wait until Council has had an
opportunity to adopt a liquor licensing policy for the area. The
following four have resulted in formal applications.

1. Address: 932 Granville
Applicant: Granville Entertainment Corp
Proposal: Council has conditionally endorsed an increase in
capacity for the Roxy Cabaret by 80 seats to 275, in exchange for
sound proofing and retaining the rooms in the Siesta Hotel for ten
years at the shelter portion of social assistance.

2. Address: 952 Granville
Applicant: Granville Entertainment Corp
Proposal: renovated building containing a 65 seat neighbourhood pub
(Gilligans) and 140 seat cabaret (seats relocated from Nelson Place
Hotel at 1006 Granville).

3. Address: 900 Granville
Applicants: Cactus Restaurants Ltd. and Granville Entertainment
Corp.
Proposal: renovation of building at corner of Smythe and Granville
containing a 65 seat brew pub, a 185 seat lounge-style cabaret, a
billiard room, Cactus Club Cafe (185 seat restaurant) and a patio
cafe (125 seat restaurant).

4. Address: 950 Granville
Applicant: Charles Wertman
Proposal: new building containing a 350 seat cabaret, a restaurant
and a caf�.

These four proposals include a total of 892 Class C and D seats (762
cabaret and 130 neighbourhood pub), in addition to the proposed Class B
restaurant space. The negotiations for the additional Roxy seats have
been underway for a considerable period of time and are about to be
concluded. It would bring the Roxy toward its maximum fire capacity
size. This proposal is considered a special case, as it involves
retention and upgrading of 64 affordable housing units in the Siesta
Hotel.

None of the remaining proposals are currently consistent with the
Policing Strategy, in that each is requesting more than 200 seats per
building. In addition, it would not be advisable to approve cabarets at
both 950 and next door at 952 Granville, because it would result in
three cabaret line-ups on the same side of a block. However, the
line-ups associated with the 900 Granville proposal could be
accommodated along Smithe Street. Staff have met with the applicants and
expect that several of the proposals will be revised to address these
concerns.

Issue #8. Process for Reviewing Applications

The process for reviewing applications should take into account:

- limiting the total number of additional seats on Theatre Row to
1,000, to be followed by a period of monitoring and a report back
no later than December 1998;

- distributing the seats in the 3 blocks of Theatre Row generally in
keeping with the Policing Strategy;

- balancing the objective of helping to revitalize Granville Street
with that of relocating seats from the residential areas of
Downtown South, and reserving at least 400 seats for the latter
purpose;

- the Provincial policies under which the LCLB will consider
applications, especially those applications which are now before
it; and

- due consideration of proposals from other potential applicants who
agreed not to submit formal applications until Council had an
opportunity to adopt a Theatre Row Liquor Licensing Policy.

Staff recommend the following procedure be used to determine which
applications can be considered for approval:

1. An advertisement be placed in the Vancouver Sun, Province and
Georgia Straight newspapers indicating that potential applicants
have 30 days to submit expressions of interest for locating Class
A, C, or D licensed seats on Theatre Row, with no more than 200
seats per building, unless the applicant clearly demonstrates that
more seats are required for the financial viability of a project
which will provide significant public benefits.

3. After the initial proposals are reviewed, until December 1998,
applications for Class A (except small lounges with up to 125 seats
in new or renovated hotels), C and D seats which do not result in
either the relocation of existing seats out of the residential
areas of Downtown South or the development of a new hotel, should
not be endorsed.

4. Staff will monitor the impacts of licensed establishments on
Theatre Row and elsewhere in Downtown South and report back by
December 1998 on the effectiveness of the Policing Strategy and
other approved measures for dealing with problem licensed premises,
and whether further policy changes are required.

CONCLUSION

The moratorium on new licensed seats has helped create a viable
residential community in Downtown South. However, it has held back some
redevelopment on part of Granville Street. While it would be ideal to
have all the enforcement resources outlined in the Downtown Liquor
Licensing Policy Report in place, enough progress has been made to drop
the moratorium in favour of specific zoning and approval policies.

Consideration of up to 1,000 licensed seats on Theatre Row can now help
revitalize Granville Street and possibly help relocate some cabaret
seats from the residential areas of Downtown South. This can be safely
managed if done in keeping with the proposed Policing Strategy, and
through cooperative arrangements between the City, the LCLB and local
businesses.

* * * * *

The following is a point form summary of City Council s decisions of
July 11, 1996. The two reports on Downtown Liquor Licensing Policy
considered were:

(a) Enforcement Issues and New Types of Establishments; and

(b) Proposal for Theatre Row, Yaletown and Other Areas.

For specific wording, refer to Council minutes of July 11, 1996.

Report (a)
ENFORCEMENT ISSUES AND NEW TYPES OF ESTABLISHMENTS

REPORT BACK

A. Meet with Provincial elected officials on:

1. Co-ordination of enforcement resources:
a) Additional Provincial inspectors
b) hours or seating reduction for problem premises

2. Task Force on existing regulations & appeal procedures

3. Extension of hours or seats for probationary period

4. Restriction on special event licenses

5. Cancellation of non-conforming uses

6. Later cabaret closing (no extension of serving)

7. Reduction of 1 mile limit for Class D licenses

8. New types of licenses

9. Licensing one larger cabaret

PROCEED NOW

B. Existing laws, regulations, policies

1. Enforcement Resources
a) City Liquor Coordinator
b) additional funding for extended hours of existing
inspectors

2. Continue to work with Barwatch

3. Endorse cooperative relationship

4. Downtown IST to review line-up issues

5. Review late night transit

6. Health Board review services for alcoholism

7. Police review of patron behaviour after midnight

8. Encourage alterations to minimize residential impacts

9. Non-support for additional billiard tables

10. On-support for sports-bars ;

11. Review restaurant seating capacities

12. Review dance halls and restaurant restrictions

DEFER

C. After discussions with Province

1. Local pub impacts

2. Work program issues

D. After Noise Task Force Report

1. Decibel levels within building

2. Altered decibel levels

3. Noise Protection Guidelines

4. Approvals based on noise levels

5. Increased fines for noise

Report (b)
PROPOSALS FOR THEATRE ROW, YALETOWN & OTHER AREAS

REPORT BACK

A. Meet with Provincial officials

1. Special incentives for Theatre Row

PROCEED NOW

B. Downtown South & Robson Street

1. Cabarets remain non-conforming in residential areas

2. Reduction of impacts of existing cabarets

3. Delete residential in Theatre Row & grandfather Siesta &
Gresham

4. Residential aware of entertainment district

5. Buyers aware of #4 above

6. Policing strategy for Theatre Row

7. Delete cabaret as use in Yaletown

8. Robson Street buyers aware of entertainment uses

9. Report back on Robson (no new cabarets in interim)

10. Moratorium on Victory Square cabarets

11. Alter Gastown moratorium to reduce impacts of existing
licenses

REPORT BACK

C. Policy direction;

1. Theatre Row as entertainment district

2. 1100-1300 blocks of Granville
a) local serving commercial
b) work with TED on Granville revitalization
c) SRO upgrades or replacement d) increased seating to achieve (c) above

3. Yaletown
a) additional neighbourhood pubs
b) additional restaurants

4. Robson Street new licenses subject to polling

5. Plaza of Nations new licenses subject to polling

6. Plaza of Nations hotel

7. Plaza of Nations entertainment district

8. Central Business District entertainment uses

9. Central Business District specialized precincts

DEFER

D. Theatre Row Entertainment District

1. Proposal call for 1,000 seats

a) 1,000 seats on Theatre Row restricted
or
b) 1,000 seats open to all
or
c) 1,000 seats first come
or
d) 1,000 seats relocated only

2. Special incentives

a) no polling
b) neighbourhood pubs
c) building code relaxations
d) other incentives beneficial to community

3. Theatre Row notification as alternative to polling