POLICY REPORT
URBAN STRUCTURE
Date: July 14, 1997
Dept. File No.: JPC/PJ
CC File No.: 2633-1
TO: Vancouver City Council
FROM: Director of Community Planning on Behalf of Land Use and
Development, in consultation with Chief License Inspector,
Director of Community Services, Social Planning, Director of
Legal Services, City Clerk
SUBJECT: Regulation of Casinos
RECOMMENDATION
A. THAT the Director of Land Use and Development be instructed to
make application to amend the Zoning and Development By-law
and Downtown Official Development Plan, generally in
accordance with Appendix A, to:
(i) (a) define Casino - Class 1 to be a charity casino not
permitted to have slots or player-operated video
lottery terminals (VLTs);
(b) permit Casino - Class 1 in the DD, C-3A, FC-1, IC-3,
I-2, HA-1, HA-1A, and three CD-1 zoning districts
subject to guidelines (Appendix B) to be adopted by
Council;
(ii) (a) define Casino - Class 2 to be a casino permitted to
have slots or player-operated VLTs;
(b) not permit Casino - Class 2 in any zoning district,
thereby prohibiting the use in the City of
Vancouver;
FURTHER THAT the Director of Legal Services be instructed to
prepare the necessary by-laws;
AND FURTHER THAT the application and by-laws be referred to a
Public Hearing, together with the recommendation of the
Director of Land Use and Development to approve the
application subject to Council adoption of guidelines
(Appendix B), and an amendment to the Parking By-law to
establish parking standards for Casino - Class 1, and the
License By-law to establish a fee for casinos, at time of
enactment of the By-law amendments; and
B. (i) THAT the Director of Planning advise applicants that
Council's policies with respect to casinos do not support
amendments to the Zoning and Development By-law or any
official development plan to permit Casino - Class 2; and
(ii) THAT the Director of Planning bring to Council's
attention any application made against this advice.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
- On November 1, 1994, Council passed a resolution opposing gaming
expansion including the introduction of VLTs in charity casinos and
licensed drinking establishments, the expansion of electronic
bingo, and an increase in the number of charity casinos in the City
of Vancouver or in adjacent areas where the City could be impacted,
and furthermore, that the City of Vancouver consider gaming
expansion a matter of determination by the people of British
Columbia through appropriate broad and local involvement in a
meaningful consultation program.
- On March 25, 1997, Council reiterated its demand to the Provincial
Government for a comprehensive Gaming Act before expanded gaming
activity goes forward. Council further advised the Minister of
Municipal Affairs and the Minister of Employment and Investment,
that Vancouver opposes the addition of slot machines as an expanded
gaming option.
- In addition, between January 27, 1987, and April 22, 1997, Council
passed several additional related resolutions expressing concern
that maximum financial benefits accrue directly to the social
service agencies sponsoring casino events; that controls be in
place to discourage or prevent possible negative social
consequences, such as compulsive gambling or criminal activity;
that revenues be made available to mitigate community impacts; that
there be by-law amendments to prohibit electronic gaming devices;
and that Council object to the Provincial Government's approval of
an increase in the betting limits and expansion of gaming hours.
SUMMARY AND PURPOSE
In response to Council's instruction, this report reviews the City's
established process for regulating casinos and recommends amendments to
the Zoning By-laws to limit casino use in the city.
New definitions for casino use are proposed that distinguish casinos
that could have video lottery terminals (VLTs) and slots from those that
could not. The existing five charity casinos in the City, while not
permitted to have VLTs or slots (Class 1), would be able to relocate as
a conditional use in appropriate areas.
Casino use not limited to charities (i.e., government operated) and
where VLTs or slots are permitted would be prohibited.
BACKGROUND
1. Existing Situation
Charitable gaming is composed of casinos, bingo halls and ticket
raffles. In the case of casinos, 50% of the proceeds goes to support
charitable organizations with 40% to the casino management company and
10% to the provincial government. Proceeds for charities in the Province
were $131.6 million in 1995/1996.
Gaming activities are regulated by the Provincial Gaming Commission.
While the Province has overriding authority, the City via its current
zoning powers can regulate casino use and development.
There are five charitable casinos in the city, located in the Downtown
(DD) and HA-1A districts and in three CD-1 comprehensive development
districts. Details, including the size of gaming area and possible
expansions, are included in Appendix C.
The current permitting procedure for casinos is as follows:
"casino" is considered as a conditional use, "similar to hall";
assuming that the site is located in a district which allows the
above use, staff require the applicant to furnish the City with a
letter from the Provincial Gaming Commission which indicates the
Commission has carried out a "preliminary" review, and that it is
prepared to consider a casino at that site;
extensive neighbourhood notification [within 305 m (1,000 ft.)
Downtown and within 610 m (2,000 ft.) outside of Downtown] is
carried out, including a yes/no ballot;
assessment criteria include proximity to residential development
and other sensitive uses; size, hours of operation, traffic and
parking impacts; and Police Department and other staff comments;
and
the assessment is reported to Council, through the Planning and
Development Committee for advice prior to final decision.
Overall, the process has been reasonably effective and current casino
locations have led to few complaints. This process also provides for
extensive public input. However, the balloting is carried out at the
City's expense and casino operators have already submitted detailed
plans as part of the development application before it is determined
whether the site is suitable for casino use.
2. Recent Provincial Changes to Gaming
In March 1997, the Provincial Government announced the expansion of
gaming activities including the introduction of:
higher betting limits (up to $500 for most games) and longer hours
of operation (noon to 2:00 a.m.) for charity casinos;
300 slot machines per charity casino; and
new "destination" style casinos with revenues to flow to the
government, not charities. The Province has indicated that
municipalities will have "veto" power over destination casinos.
These changes, particularly the introduction of slots, will result in
substantial increases in gaming activity and revenue. The Province
projects annual revenue increases of 53% for charities ($112 million to
$172 million); 383% for owners/operators ($73 million to $284 million);
and 2,547% for the government ($14 million to $344 million).
3. Pressure to Expand
The Provincial intent to introduce up to 300 slots per charity casino
site has resulted in a dramatic potential increase in casino revenues
and considerable pressure for larger casinos; the introduction of slots
may also displace space available for existing gaming tables.
Present Provincial guidelines allow up to 30 tables in each casino. In
ball-park terms, this requires some 650 m2 (7,000 sq. ft.) of gaming
area. None contain slot machines at the present time.
Slots require significant floor area. Again, in ball-park terms, each
machine requires some 4.6 m2 (50 sq. ft.), including support services
area. [Three hundred (300) machines would therefore require about
1 400 m2 (15,000 sq. ft.) gross floor area, of which about two-thirds
would be gaming area.]
Vancouver's existing five charity casinos vary from approximately 836 m2
(9,000 sq. ft) to 1 478 m2 (15,900 sq. ft.) of total floor area. Staff
have received one development application and numerous inquiries
regarding the possibility of expansion and/or relocation. Staff believe
these are related to the desire to accommodate slots. The development
application is the subject of a separate report to Council being
prepared concurrently with this report.
4. Land Use and Social Impacts
The present expansion, specifically the introduction of slots, is a
serious concern because of negative land use and social impacts. The
introduction of slots changes the character of casinos due to the
expected increased size, number and type of patrons and parking
requirements. In addition, the expanded hours of operation, combined
with the larger premises, will create additional neighbourhood impacts.
Ever since the 1994 Casino Review, staff have consistently expressed
concerns about the significant negative social effects of the gambling
industry. These are outlined in detail in Appendix D.
The Vancouver Police Department advise that the five charitable casinos
operating in Vancouver are well run and have been of little problem to
the Police. However, the atmosphere and conditions any casino operates
in create vast opportunities for crime, including robbery, theft from
autos and gang activity. This will increase with an expanded casino
operation and could create unacceptable activity in neighbourhoods.
A representative of the Vice/Gambling Squad is scheduled to make a
presentation to the Police Board on gambling in Vancouver on July 23,
1997.
5. Policy Direction
Council has supported the basic principle that maximum financial benefit
from existing gaming activities accrue directly to the sponsoring
charity. However, based on public input, Council has expressed a clear
policy direction opposed to an increase in the number of casinos in the
City, and the expansion of casino use to include player-operated VLTs
and slot machines. Council has control of land use and development
through its zoning powers. Staff have therefore pursued amendments to
the Zoning and Development By-law that restrict casinos to the existing
number and type while allowing for relocation.
6. Other Municipalities
Council is not alone regarding the concern about the costs of expanded
gaming. Appendix E briefly outlines measures taken by other Lower
Mainland municipalities. In summary, Delta and the City and District of
North Vancouver permit temporary charitable casinos only; casinos are
not a permitted use in any zone in Richmond and require comprehensive
development rezoning similar to Burnaby.
DISCUSSION
Assuming Council wishes to allow the five existing charity casinos to
continue to operate in the city, but does not support any increase in
that number, nor the introduction of slot machines, player-operated VLTs
or destination casinos, staff recommend a number of amendments to the
Zoning and Development By-law.
1. Definition of Casino Use
Staff recommend that casino be listed and defined as a separate use in
the By-law (Recommendation A). At present, casinos are approved as
"similar to hall", which allows development applications to be filed for
any type of casino in most commercial, industrial and historic areas of
the city. Staff recommend that casinos be split into two types to
distinguish those that Council supports from those that Council does not
support:
Casino - Class 1: would be limited to charity casinos, would not
allow slots and player-operated VLTs, and would be allowed as a
conditional use in some zoning districts (discussed below); and
Casino - Class 2: would not be limited to charity casinos, would
allow slots and player-operated VLTs, but would not be allowed as a
permitted use in any zoning district.
The reason for defining Casino - Class 2 but not permitting it in any
district is to make it absolutely clear that this type of casino is not
permitted in the city based on its negative neighbourhood and social
impacts. (Listing it as a use in the By-law would prevent applications
being filed for this type of casino using the "similar to" clauses of
the By-law.) Anyone seeking approval for Casino - Class 2 would be
required to file a rezoning application. Staff recommend that Council
adopt a motion (Recommendation B) stating its non-support of such an
application.
2. Relocation and Expansion of Casinos
It is staff's understanding that Council is not opposed to the
relocation and modest expansion of the existing number (five) of charity
casinos in the city. Staff, therefore, recommend the following:
that Casino - Class 1 be permitted as a conditional use in the
C-3A, FC-1, IC-3, I-2, HA-1 and HA-1A districts, as well as three
CD-1 and most of the DD zoning district;
that Council adopt guidelines at time of enactment of the zoning
amendment which limit the number of Casinos - Class 1 in the city
to five, restrict the location of casinos in the I-2 and FC-1
districts to portions of the Grandview Highway, Marine Drive and
Terminal Avenue, and limit the size to 1 500 m2 (16,150 sq. ft.).
In assessing which zoning districts Casino - Class 1 should be
permitted, staff have considered the appropriateness of the use given
other permitted uses in the district. Staff feel that Casino - Class 1
is an appropriate use in the zoning districts in which the five existing
casinos are located (DD, HA-1A, and the Plaza of Nations, Airport
Quality Inn and Holiday Inn CD-1 districts), with the exception of the
Downtown South residential sub-areas and the 1100 to 1300 blocks of
Granville Street which have a local-serving role similar to Davie,
Denman and Robson Streets. Staff also recommend that the use be
permitted in the C-3A (Central Broadway), IC-3 (Brewery Creek) and HA-1
(Chinatown) Districts as well as the Terminal Avenue frontage of FC-1
(East False Creek) and the "let-go" Grandview Highway, Marine Drive, and
Terminal Avenue frontages of the I-2 District. These locational
restrictions are included in the guidelines in Appendix B.
Staff do not recommend permitting the use in local-serving commercial
zoning districts, nor in commercial zoning districts which abut
low-density residential districts, because casinos are not a
local-serving use, drawing their clientele from the broader community.
Applications to locate a Casino - Class 1 in these districts would
require an amendment to the Zoning By-law.
In order to limit expansion of the existing casinos, staff recommend
that the guidelines restrict the size of casinos to 1 500 m2 (16,150 sq.
ft.). Based on discussions with casino operators, staff feel this
maximum would accommodate the size needed for the present limit of 30
gaming tables along with amenity and support areas. Staff are investigating with the Director of Legal Services means to
ensure that, in the case of relocation, the former premises cannot have
casino as a continued use. As a condition of approval, staff are looking
into placing a restrictive covenant on the site prohibiting use of the
new premises for player-operated VLTs or slots.
3. Approval Process
Charity casino operators have noted that the current notification yes/no
ballot procedure happens late in the process after they have submitted
all the required material for a development application. Further, the
cost of this ballot is currently absorbed by the City. Staff suggest
replacing this with a pre-site clearance procedure, prior to development
permit application, similar to that carried out for liquor licensed
establishments, cabarets and restaurants with entertainment. This is a
two-stage process. The first stage would involve neighbourhood
notification, with an invitation to write or call the City. Staff also
do a visual survey of the site. Results would be reported to Council, at
which time concerned residents could speak to Council. Based on
neighbourhood response and staff comments about the area, Council has
the option of requesting a referendum. The results of the referendum
would be reported to Council for advice on whether to accept an
application. The fee for this procedure is $1,550.00.
4. More Restrictive Options
Staff considered more restrictive options that would not allow the
existing casinos to relocate or expand, including:
not listing Casino - Class 1 as a permitted conditional use in any
district, thereby rendering the existing casinos as non-conforming
uses and freezing them basically as is; or
listing Casino - Class 1 as a permitted conditional use only in the
zoning districts where they are presently located, and including a
restrictive clause that limits casinos to those operating as of
date of enactment of the zoning amendments. (This option would not
allow relocation but could allow for some expansion depending on
the size limits that Council adopts in the recommended guidelines.)
Both of the above options mean that any relocation of an existing
charitable casino would require rezoning, most likely to a site-specific
CD-1. Staff have not recommended these options at this time as they
involve an unnecessarily extensive and lengthy process, in staff's
opinion, given the few problems caused by the existing charitable
casinos as they currently operate.
5. Amendments to the Parking and License By-law
A draft of the recommended by-law amendments is included in Appendix A.
Amendments to the Parking By-law will also be needed to include parking
standards for Casino - Class 1. Whether the existing parking standard
for hall (which has been applied to the existing casinos) should be
adopted, or a new higher standard based on demand, will be determined
prior to the Public Hearing.
Staff also recommend an amendment to the License By-law Fee Schedule to
establish a specific fee for casinos. Given that the current operations
are charity casinos, staff recommend a license fee of $172.00. This fee
is the same as that charged for dance hall (the only specifically listed
fee for hall use currently included in the By-law).
CONCLUSION
Council has a number of concerns about the expansion of gaming in the
city and its serious social impacts. In order to limit the expansion of
gaming, staff are proposing regulatory changes which will allow present
charity gaming activities to continue, but will limit additional
casinos, provide for public input in any relocation of existing casinos,
and limit casino use to gaming activities which do not include video
lottery terminals and slots.
* * * * *
APPENDIX A
PROPOSED ZONING AND PARKING BY-LAW AMENDMENTS (TO PERMIT CASINO - CLASS
1 AND NOT PERMIT CASINO - CLASS 2)
Section 2 (Definitions)
Casino - Class 1, which means the use of premises for the purpose of
playing or operating games of chance or mixed chance and skill on which
money may be wagered, for which a licence has been issued by the Gaming
Commission of the Province of British Columbia to a charitable or
religious organization as a licensee, but does not include
player-operated video lottery terminals, slot machines, bingo,
electronic bingo, pari-mutual betting, non-player-operated lotteries or
Casino - Class 2.
Casino - Class 2, which means the use of premises for the purpose of
playing or operating games of chance or mixed chance and skill on which
money may be wagered, for which a licence has been issued by the Gaming
Commission of the Province of British Columbia, and may include
player-operated video lottery terminals or slot machines, but does not
include bingo, electronic bingo, pari-mutual betting, and
non-player-operated video lottery terminals.
Section 3 of Various District Schedules (Conditional Approval Uses),
Section 3 of Downtown Official Development Plan (ODP) and CD-1 By-laws
21 and 349
Include "Casino - Class 1" as a conditional Cultural and Recreational
use in the C-3A, FC-1, IC-3, I-2, HA-1 and HA-1A schedules:
Include "Casino - Class 1" as a permitted use in all sub-areas of the
Downtown District ODP, except L, M and N (Downtown South) and K3
(local-serving portion of Granville Street).
Permit "Casino - Class 1" in CD-1 (21) (Airport Quality Inn), CD-1 (349)
(Plaza of Nations) and CD-1 (358) (Holiday Inn).
Section 10 (General Regulation)
10.31 Casinos
10.31.1 Wherever the words "commercial", "commercial uses", "social,
recreational and cultural", and "cultural and recreational
uses" appear in this By-law or any other by-law passed
pursuant to this By-law, such permitted use shall not, unless
otherwise specifically provided by this By-law or any other
by-law passed pursuant to this By-law, include a Casino -
Class 1 as defined in section 2 of this By-law.
10.31.2 No person shall use or occupy land and no development permit
shall be issued for a Casino - Class 2.
Parking By-law
Include Casino - Class 1 as a building classification in Sub-Section
4.2.4 (Cultural and Recreational) and require a minimum of one space for
every 9.3 m2 (100 sq. ft.) of floor area used for assembly purposes
(same as Theatre, Auditorium, Hall or Club), or develop new standard for
casino use based on demand.
License By-law
Establish a license fee of $172.00 for casinos.
APPENDIX B
DRAFT CASINO - CLASS 1 GUIDELINES
These guidelines are to be used in conjunction with the C-3A, FC-1,
IC-3, I-2 or HA-1A district schedules of the Zoning and Development
By-law, the Downtown Official Development Plan, or CD-1 By-laws Nos. 21,
349 and 358 for development permit applications for a Casino - Class 1.
Number
The number of Casino - Class 1 establishments in the city should not
exceed five.
Location Restrictions - I-2 and FC-1 Districts
Development applications should only be considered on the north side of
Grandview Highway between Renfrew Street and Boundary Road, the south
side of Marine Drive between Laurel and Chester Streets, and on Terminal
Avenue between Quebec Street and Glen Drive (excluding Thornton Park).
Size
The gross floor area, including accessory uses, should not exceed 1 500
m2 (16,150 sq. ft.). The gaming area should be shown on submitted plans.
Note: Council's current procedures and criteria for approving casinos
described in the "Background" section of the report would remain in
effect except that the yes/no ballot notification would be conducted as
part of the recommended site pre-clearance process.
APPENDIX C
EXISTING AND PROPOSED CHARITY CASINOS
1. 2477 Heather Street (Great Canadian Casino Co. Ltd.) -
Comprehensive Development District
existing 650 m2 (7,000 sq. ft.) approximate gaming area within
a 1 394 m2 (15,000 sq. ft.) premise.
proposed expansion to 1 115 m2 (12,000 sq. ft.) approximate
gaming area within an 1 672 m2 (18,000 sq. ft.) premise.
2. 1133 West Hastings Street (Great Canadian Casino Co. Ltd.) Downtown
District
existing 715 m2 (7,700 sq. ft.) gaming area within an
approximate 836 m2 (9,000 sq. ft.) premise. 30 tables.
proposed (exact gaming area not known) 1 672 to 2 044 m2
(18,000 to 22,000 sq. ft.) premise to be relocated to 768
Robson Street.
3. 725 S.E. Marine Drive (Grand Casino) - Comprehensive Development
District
existing 557 m2 (6,000 sq. ft.) within an approximate 1 115 m2
(12,000 sq. ft.) premise. 30 tables.
desire to expand and consolidate into 1 858 to 2 323 m2
(20,000 to 25,000 sq. ft.) premise, including slots.
4. 106B - 750 Pacific Boulevard (Royal Diamond Casinos Inc.) -
Comprehensive Development District Interim Use
520 m2 (5,600 sq. ft.) approximate gaming area, within a 930
m2 (10,000 sq. ft.) premise.
lease expires shortly.
5. 611 Main Street (Gateway Casino)
existing 557 m2 (6,000 sq. ft.) approximate gaming area,
within a 1 478 m2 (15,900 sq. ft.) premise.
no inquiries or proposals at this time.
APPENDICES D AND E ON FILE IN THE CITY CLERK'S OFFICE