ADMINISTRATIVE REPORT

Date: February 4, 1999
Author/Local: Guy Gusdal (6461)
RTS No. 414

CC File No. 2614-13

TO:	Vancouver Liquor Licensing Commission
FROM:	Chief License Inspector
SUBJECT:	66 Water Street - Sonar Cabaret Increase in Seating Capacity - Class `C' Cabaret

RECOMMENDATION

THAT Council advise the Liquor Control and Licensing Branch it does not endorse the application by Sonar Cabaret Ltd., to increase seating capacity to 500 from 299 at the Sonar Cabaret, 66 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 1 license) be permitted in the Downtown Eastside or Gastown areas.

PURPOSE

Sonar Cabaret Ltd., is requesting a Council resolution endorsing its request to increase seating capacity to 500 from 299 in the Class `C' Cabaret at 66 Water Street.

BACKGROUND

Club Sonar (formerly the Town Pump) has one of the few grandfathered Class `B' and Class `C' licenses left in the city that allows the premises to open earlier in the day and operate as a restaurant.

The principals of the Sonar Cabaret are aware that the maximum seats allowed by the Liquor Control and Licensing Branch in a Class `C' Cabaret is 350. They are also aware of the moratorium on new liquor licenses and increase in seating in the Downtown Eastside and Gastown area.

The cabaret has been operating four nights of the week and specializes in showcasing a variety of bands with appeal to patrons in the age group 25 and under. The applicant points out that patrons are attracted by the type of entertainment provided and are not large consumers of alcohol. Since approximately August 1997, the applicant has applied to the Liquor Control and Licensing Branch for a temporary change to the liquor license to allow a maximum capacity of 450 to cover specific dates and events.

On March 25, 1997, Council refused a request from the Purple Onion Cabaret Inc., for a 38-seat increase to their seating capacity from 312 seats to 350 seats. The Commission cited the concerns raised by staff of possible precedent for other clubs and the potential impacts on the residential neighbourhood prior to its recommendation not to endorse the application.

The Gastown area at closing time (between 1:30 a.m. and 3:00 a.m.) Monday through Saturday has often been a problem for neighbourhood residents and the Police Department. During the period from June 1, 1998 to November 24, 1998, police officers responded to 71 calls for service at only seven of the 21 hotel pubs/lounges or cabarets in the survey area. Ten of these calls were to Club Sonar, and one incident in particular is worth further comment. On this occasion, police resources were stretched extremely thin, anticipating the need to cover overcrowding in the Gastown area at closing time and the Oktoberfest event at the P.N.E. A large fight broke out between patrons waiting in the lineup to enter Club Sonar. A staff member situated at the door was pepper sprayed and the spray entered the cabaret. This resulted in about 200 patrons spilling onto the street at approximately 1:30 a.m., creating additional problems for on duty police. While the police officers did not sustain any injuries, they were at considerable risk.

The subject premises are located in the HA-2 Gastown area. This neighbourhood is a mixture of retail, office, restaurant, cabaret, pub, hotel and residential uses. The nearest occupied residential development is located equally a block west and east on Water Street.
A residential development of approximately 90 dwelling units, located directly across Water Street from the cabaret, is in the development permit application stage.

There are eight Class `C' Cabarets (1522 seats), 12 Class `A' Pubs (1757 seats), one Class `A' Lounge (45 seats) and 28 licensed restaurants in the survey area, not including the subject site. The closest provincial government liquor store is located at Harbour Centre 555 West Hastings Street.

DISCUSSION

Approved plans for the Class `C' Cabaret at 66 Water Street shows the fire capacity for the premises as 520 seats. The applicant states that enforcement of the existing liquor license capacity would make the cabaret and many other cabarets uneconomical in the current market, and that they are simply requesting a formalization of what has been allowed under a different process for a number of years.

Staff feels that this analysis is not valid. The process referred to, which is the temporary seating capacity increase for special events, is intended for special events and not a process to increase seating on a regular basis.

Staff will be reporting back to Council in the next few months on proposed guidelines for special event liquor license increased seating applications.

It should also be noted that the applicant is also requesting a seating capacity well in excess of the Liquor Control and Licensing Branch policy of 350 maximum for cabarets, although the General Manager does have the authority to allow seating capacities over 350 for cabarets.

COMMENTS

The Police Department is opposed to the application given the limited amount of late night police resources and the complaints from area residents.

The Planning Department advises that the structure on this site is a Provincially Designated Heritage building and is currently approved for Office, Restaurant-Class 1 and Cabaret uses.

In accordance with the Cabaret and Restaurant Guidelines, amended by City Council on June 19, 1997, in cases where an increase in seating capacity of existing cabarets is supported (only where it is determined that the existing cabaret is not close to and has no impact on any residential use), such an increase would be limited to a maximum of 350 seats.

The guidelines also state that: "In the Downtown Eastside and Gastown areas, new liquor licenses for Cabaret or Restaurant-Class 2 or amendments to existing licenses to increase seating capacity or extend hours of sale will not be permitted."

As a result, the Planning Department is not able to support an increase in seating capacity for this existing cabaret.

The Environmental Health Division of the Vancouver-Richmond Health Board advises that the premises have been recently renovated and the public washroom facilities were upgraded for a suitable maximum of 500 seats.

In the past, there have been complaints about excessive noise from the amplified music system. There was some sound proofing done with the recent renovations and there have been no recent noise complaints.

The Social Planning Department does not support the application.

The Housing Centre does not support this application. It is contrary to Council policy to not increase liquor seats in the Downtown Eastside and Gastown. More seats could increase the problems already experienced by nearby residents.

CONCLUSION

Staff recommends that the existing moratorium on increased seating or new licenses for the Gastown area be reaffirmed and this application not be endorsed. This area 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 would be filed by other establishments if this application is endorsed.

ATTACHMENTS TO THIS DOCUMENT THAT DO NOT HAVE ELECTRONIC COPY ARE AVAILABLE ON FILE IN THE CITY CLERK'S OFFICE

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