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.







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