SUPPORTS ITEM NO. 4 VLLC AGENDA JULY 13,1995 ADMINISTRATIVE REPORT Date: July 4, 1995 Dept. File.2157AIC.COV TO: Vancouver Liquor Licensing Commission FROM: Deputy Chief License Inspector SUBJECT: 932 Granville Street - The Roxy Cabaret Ltd. Increase in Seating Capacity CONSIDERATION A. THAT the Vancouver Liquor Licensing Commission endorse the application by The Roxy Cabaret Ltd., to increase the seating capacity to 275 seats in the Class 'C' Cabaret at 932 Granville Street, subject to a 10-year housing agreement to the satisfaction of the Manager of the Housing Centre and the Director of Legal Services and the sound separation on the ceiling of the cabaret being acceptable to the Director of Environmental Health; and B. THAT the City Clerk be instructed to not forward this endorsement to the Liquor Control and Licensing Branch until these conditions have been met. GENERAL MANAGER'S COMMENTS The General Manager of Community Services submits the foregoing for CONSIDERATION. COUNCIL POLICY Council Policy is that on an interim basis, no new liquor licenses or amendments to existing liquor licenses to increase seating capacity or extend hours of sale be permitted in Downtown South. PURPOSE The Roxy Cabaret Ltd., is requesting a Council resolution endorsing its application for an increase in seating capacity in the Class 'C' Cabaret from 195 to 275 seats. BACKGROUND The applicant originally applied for an increase in seating from 195 seats to a maximum of 325. This application was originally scheduled for the June VLLC meeting and was not supported by staff. Prior to the VLLC meeting, staff met with the applicant who agreed to defer the application, pending further review. The Granville South liquor license moratorium was established on May 28, 1992. Prior to this moratorium, the issue of increased seating and noise problems related to the Roxy Cabaret, and poor living conditions in the Siesta Hotel were raised and discussed at the Commission. Acoustical consulting engineers reviewed the building, and staff worked with the Roxy Cabaret and the building owner to try to alleviate the unacceptable noise levels in the rooms directly above the cabaret. The owner did not proceed with this work and the Roxy was caught between the complaints of the tenants of the rooms and the owner's unwillingness to upgrade the building. The applicant also notes that an error was made in 1989 when the Fire Commissioner calculated the maximum occupant load of the cabaret at 214. This error was corrected and the occupant load was recalculated at 287, after the establishment of the liquor license seats at 195. Subsequently, the owner of the Roxy Cabaret purchased the building early in 1995. As owner of the cabaret and the building, he has proceeded with some room improvements, and now wishes to complete the sound separation work to improve the livability of the SRO units. The owner proposes to off-set the upgrading costs by an increase in seating, and feels this building should be exempted from the moratorium because of the earlier discussions. It is also noted that the owner intends to further upgrade the building in the future, which may result in another increase in seating application. Staff from Planning, Permits & Licenses, Social Planning, Environmental Health and the Manager of the Housing Centre have been meeting with the applicant and negotiating a suitable agreement. The applicant has offered to provide a legally binding guarantee that for a 10-year period, the hotel rooms in the Siesta Hotel, above the Roxy Cabaret, would be rented on a monthly basis at a rent affordable for people on social assistance. The shelter portion of welfare is currently $325. The applicant has also proposed the provision of a sound separation between the cabaret and residential units to mitigate noise levels and ensure the rooms are suitable for occupancy. This proposal is consistent with Council policy to encourage the upgrade, retention and eventual replacement of SRO units in the Downtown South. AREA DESCRIPTION The subject premises are located on the Granville Mall, and are in the DD Downtown District (Appendix A). The adjacent portion of Granville Mall is developed with entertainment uses, such as theatres, arcades, retail stores and restaurants. There are also several residential hotels in the block, including the Siesta Hotel located directly above this cabaret. The area to the south and east of the subject premises is undergoing redevelopment to permit high density residential uses. Within the survey area is the New Continental Hotel, Brookland Court, Helmcken House and the Gresham Hotel, all subsidized residential facilities. The closest B.C. government liquor store is located at 1120 Alberni Street. Also within the survey area are three Class 'A' Pubs (699 seats), eight Class 'A' Lounges (797 seats), nine Class 'C' Cabarets (2471 seats) and approximately 28 licensed restaurants. COMMENTS The Police Department has reviewed the application, examined the interior of the premises and found that there is sufficient rationale to support the increased seating. The Environmental Health Division notes that sound from the club is expected to remain audible in the second floor rooms after the sound separation is complete. Source music levels may have to be controlled in order to maximize effectiveness. Sound levels on the third floor will be minimized and the sound isolation will be much better on the second floor, which will be more liveable than it is at present. The Planning Department supports this application based on the retention of the SRO units, the upgrading of the sound separation and the fact that this issue was being considered prior to the liquor license moratorium in Granville South. The Social Planning Department is in support of this application. The Manager of the Housing Centre supports this application in that the applicant has agreed to secure the rooms in the Siesta Hotel as SRO rooms, renting for the shelter portion of welfare for a 10-year period. The proposal is innovative in that it indicates how a private owner and the City can work together to implement Council policy on upgrading and retaining SRO units. The arrangement that the housing would be both secure and affordable would be a benefit to the residents and the neighbourhood. The Downtown Granville Tenants Association has surveyed the tenants of the Siesta Hotel who have noted an improvement in the condition of the hotel under the new ownership. The Association supports this application for additional seating based on further improvements to the hotel. Staff recommend that a Housing Agreement, which would be registered on title, be used and that the details of the Agreement be to the satisfaction of the Manager of the Housing Centre and the Director of Legal Services. The intent is to ensure that almost all the rooms be covered by the Housing Agreement and be rented to people on income assistance. About three to five rooms would be available to the owner to rent to his staff. The owner has indicated that he would like to improve some of the larger rooms to housekeeping units and rent these at a higher rate such as $375 per month. The Manager of Real Estate Services advises that the value of the additional seats is approximately equal to the value of securing the rooms for 10 years. CONCLUSION Staff generally support this application for increased seating, based on the retention of the SRO units and the soundproofing between the residential units and the cabaret. Exempting this application from the moratorium can be justified by the fact that an extension of seating and the soundproofing issue were discussed prior to the implementation of the Granville South liquor license moratorium. * * * * *