ADMINISTRATIVE REPORT

Date: May 27, 1998

Author/Local: Guy Gusdal /6461

CC File No. 2615-11

TO:	Vancouver Liquor Licensing Commission
FROM:	Chief License Inspector
SUBJECT:	99 Powell Street - 561109 B.C. Ltd. Class ‘D’ Neighbourhood Pub

CONSIDERATION

A.THAT City Council having considered the opinion of residents and business operators of the community as determined by neighbourhood notification endorse the application by 561109 B.C. Ltd., for an 85-seat (includes 20-seat patio) Class ‘D’ Neighbourhood Pub with a restaurant at 99 Powell Street;

FURTHER THAT this application be subject to the following conditions:

i.The development permit be restricted to a renewable four-month time limit.

ii.No off-site sales be permitted.

iii.The patio closes at 10:00 p.m.

iv.Before the issuance of the business license the applicant sign a "good neighbour" agreement with the City.

v.A legal agreement with the property owner, the cabaret owner (Club Elite), the City of Vancouver and the applicant to ensure the closure of the existing cabaret to the satisfaction of the Chief License Inspector, Director of Central Area Planning and Director of Legal Services.

vi.A letter of undertaking, signed by the property owner and the applicant, submitted in conjunction with the development permit application and to form part of the development permit, ensuring that adequate soundproofing measures are implemented in the building to the satisfaction of the Director of Planning and Director of Environmental Health.

OR

B.THAT City Council direct that consideration of the request by 561109 B.C. Ltd., for a Class ‘D’ Neighbourhood Pub with a restaurant at 99 Powell Street be subject to the results of a referendum conducted in accordance with existing City guidelines;

FURTHER THAT this application be subject to the following conditions:

i.The development permit be restricted to a renewable four-month time limit.

ii.No off-site sales be permitted.

iii.The patio closes at 10:00 p.m.

iv.Before the issuance of the business license the applicant sign a "good neighbour" agreement with the City.

v.A legal agreement with the property owner, the cabaret owner (Club Elite), the City of Vancouver and the applicant to ensure the closure of the existing cabaret to the satisfaction of the Chief License Inspector, Director of Central Area Planning and Director of Legal Services.

vi.A letter of undertaking, signed by the property owner and the applicant, submitted in conjunction with the development permit application and to form part of the development permit, ensuring that adequate soundproofing measures are implemented in the building to the satisfaction of the Director of Planning and Director of Environmental Health.

OR

C.THAT City Council advise the Liquor Control and Licensing Branch it does not support the application by 561109 B.C. Ltd., for a Class ‘D’ Neighbourhood Pub with a restaurant at 99 Powell Street.

GENERAL MANAGER’S COMMENTS

The General Manager of Community Services submits the choice of A, B or C for CONSIDERATION.

COUNCIL POLICY

Council policy requires that new liquor license applications and amendments to existing licenses be subject to a referendum if the premises are located in close proximity to residential accommodation.

PURPOSE

561109 B.C. Ltd., is requesting a Council resolution endorsing its application for a Class ‘D’ Neighbourhood Pub with a restaurant at 99 Powell Street.

BACKGROUND

Between 1993 and 1996, Council appointed a task force which reviewed the issues and opportunities related to liquor licensing in the Downtown. One of the initiatives Council approved were ways to encourage the relocation of existing cabarets from residential to commercial areas of Downtown South. Staff have also been looking at possible ways of reducing or changing liquor licenses in Gastown and the Downtown Eastside.

Club Elite at 99 Powell Street, currently operates as a 225-seat Class ‘C’ Cabaret in Gastown. As this area has changed to a residential neighbourhood, the impacts of Club Elite have been an ongoing source of problems. The operator of Club Elite will be applying to transfer this existing Class ‘C’ Cabaret license to 646 Seymour Street and, upon approval, will be vacating the premises. This relocation application is addressed in a companion report dated May 28, 1998.

561109 B.C. Ltd., wish to open a Class ‘D’ Neighbourhood Pub and restaurant with 65 inside seats and 20 seats on a 400 sq.ft. patio in the existing cabaret location. The total size of the premises is 9,000 sq.ft., which includes a restaurant. The hours of operation requested for the pub are 11:00 a.m. to 12:00 midnight Monday to Thursday and Sunday, and 11:00 a.m. to 1:00 a.m. on Friday and Saturday. Standard neighbourhood pub food and entertainment, in the form of a games room, television and recorded music, will be provided.

The premises are located in the HA-2 (Gastown) zoning district. The surrounding area consists of residential, hotel, Class ‘A’ Lounge/Pub, cabaret, retail, office and institutional uses. The nearest Provincial Government liquor store is located at 627 Main Street (Appendix A).

There is one Class ‘A’ Lounge (120 seats), 12 Class ‘A’ Pubs (2,085 seats), seven Class ‘C’ Cabarets (1,390) and approximately 19 licensed restaurants.

DISCUSSION

The cabaret at 99 Powell Street has been the source of serious concerns and problems for a number of years. This application, in conjunction with the application for the cabaret’s relocation to 646 Seymour Street, should significantly reduce complaints associated to the operation at 99 Powell Street. It should be noted the existing limitation put in place by the Liquor Control and Licensing Branch that the cabaret can be open only on Thursday, Friday and Saturday, makes it difficult for the owner to operate the business legitimately and remain viable.

The current license holder has operated the cabaret reasonably well, and problems appear to be reduced. However, there is no guarantee that this grace period will continue with this owner or any future owner. It is possible that a new operator will not be bound by the existing conditions and problems could again escalate.

To help facilitate this change, staff intend to hold a public meeting in the neighbourhood in addition to the area notification, as a possible alternative to the referendum, given the fact that there is an existing cabaret license and there is a significant reduction in seating. However, if reaction to the notification and the public meeting is negative, the referendum would be required following City guidelines. Central Area Planning staff, in conjunction with the Permits and Licenses Department, will coordinate the public meeting. The results will be reported to the Commission.

COMMENTS

The Police Department supports this application with the condition that the patio close earlier than 1:00 a.m. to avoid neighbourhood noise issues. The department has had many problems with the present cabaret operation.

The Environmental Health Division of the Vancouver/Richmond Health Board has no objection to the proposal and feels that the change from a cabaret to a neighbourhood pub would be welcome. However, it is emphasized that the patio should close no later than 10:00 p.m., since operation beyond that time would only replace the very contentious issue of noise in the area.

The Planning Department advises that a neighbourhood pub is listed as a "conditional" approval use in the HA-2 District Schedule. Any proposal to change the use would require a development application.

As part of the review process, staff would include an assessment of the anticipated impacts on nearby sites, and particularly any residential uses. An application of this type would also be reviewed in accordance with the provisions of the Neighbourhood or Marine Public House Guidelines adopted by City Council on August 9, 1988.

Central Area Planning policy is to entertain proposals which reduce the impact of licensed establishments in residential areas. If the applicant was to upgrade (including heritage features), and soundproof the building, sign a "good-neighbour" agreement, including dealing with noise from customers leaving the pub, this proposal would work from the perspective of Gastown. Consideration should be given to public notification and a neighbourhood public meeting in lieu of a referendum. However, if the result of this meeting is negative, then a full referendum will be required.

It is also felt that an assessment of the value of the relocated cabaret seats is needed.

The Social Planning Department has no comments.

The Housing Centre supports the application on condition that the outdoor patio is not approved and noise-proofing is implemented. If the patio was open until 1:00 a.m., this could cause just as many noise problems as the existing cabaret.

CONCLUSION

Staff recommend approval of this application as a long-term solution to the neighbourhood impacts of the cabaret, and that consideration be given to a public meeting and notification in lieu of a full referendum due to the existing license and the reduction in seating capacity, unless the results indicate neighbourhood opposition to this proposal.

Staff also recommend off-site liquor sales not be permitted.

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(c) 1998 City of Vancouver