SUPPORTS ITEM NO. 3
                                                VLLC AGENDA
                                                NOVEMBER 9, 1995   



                             ADMINISTRATIVE REPORT

                                                November 3, 1995


   TO:       Vancouver Liquor Licensing Commission

   FROM:     The  Chief License  Inspector, in  consultation with  the City
             Clerk, as  Coordinator of the CCST,  Director of Environmental
             Health and the Chief Constable.

   SUBJECT:  99 Powell Street, Senorita Frogs
             (also known as Club NRG)


   RECOMMENDATION

        THAT the Vancouver Liquor Licensing Commission recommend    Council
        hold a Show Cause Hearing regarding the business license to operate
        a cabaret at 99 Powell Street.


   CITY MANAGER'S COMMENTS

        The City Manager RECOMMENDS approval of the foregoing.

   COUNCIL POLICY

   Section 278 of the Vancouver Charter states:

        "The Chief License Inspector may, in any case, recommend to Council
        in  writing the suspension or revocation of any license setting out
        the reasons for such recommendation.  The Council shall not suspend
        or revoke the license without previous notice and an opportunity to
        be  heard being  given  to  the  holder  thereof,  except  when  by
        reasonable efforts the holder cannot be found."


   PURPOSE

   This report provides the  Commission with information on the  cabaret at
   99  Powell  Street and  identifies  concerns related  to  the management
   practices of the cabaret's owners, who operate and manage the business.
   BACKGROUND

   The current owner, Big  Star Investments Inc., represented by  Mr. Jinah
   and Mr.  Jhajj, purchased the club  and began operations under  the name
   Senorita  Frogs,  in mid-1994.    Shortly thereafter,  residents  in the
   neighbourhood, especially residents of the apartments above and adjacent
   to the club,  started complaining  to the Police  Department about  loud
   music coming from  the club, large numbers  of patrons arriving  by bus,
   drinking and drug activity by patrons outside the premises.  Also, there
   were  complaints that club  bouncers were not  properly handling problem
   patrons and were becoming involved in disturbances.   

   This issue  was first brought to  the attention of  the Vancouver Liquor
   Licensing  Commission at  its November  3, 1994  meeting.   Having heard
   representations  from the owners of the  cabaret, residents and business
   representatives from the area and staff, the Commission instructed staff

   to monitor the management practices.

   The Chief  License  Inspector  met  with  the  club  owners/managers  on
   December 6, 1994, and outlined the  City's concerns.  The owner's agreed
   to operate the club  within a set of written guidelines,  which included
   proper control  of patrons, no  overcrowding, and use of  the rear entry
   door for emergencies only (Appendix A attached).

   The Chief Constable and  the Director of Permits  & Licenses provided  a
   status  report  to  the  Commission  in  December.    In  response,  the
   Commission resolved  to  advise the  operator of  the club  that if  the
   management did  not  improve within  two  months, the  Commission  would
   recommend  that Council hold a Show Cause Hearing.  Staff were requested
   to continue monitoring the operation.

   On January  12, 1995, the club  was placed on two  months' probation and
   staff  were asked to continue monitoring  the operation.  There was some
   improvement in the operation of the club during this period.

   During March and April  1995, the Assistant City Manager, at the request
   of the Commission, met with  the owner of the club, the  building owner,
   the neighbours and City staff  on two occasions to explore a  resolution
   to  concerns  around management  of the  club,  as complaints  had again
   increased.   The outcome was  the owners agreed  to certain actions  and
   conditions (Appendix B attached).
   DISCUSSION

   Members  of the Commission and staff continue to receive complaints from
   neighbours.   In an  effort to resolve  the situation, on  September 14,
   1995,  the Police  convened a  meeting between  the  owner of  99 Powell
   Street,  the owner  of the  cabaret, Liquor  Control &  Licensing Branch
   inspectors, health inspectors  and residents of the area.   The owner of
   the   cabaret  was  advised   management  of   the  club   must  improve
   significantly (Appendix C attached).  Also, in an effort to mitigate the
   negative impact of  the noise  on the residents,  the health  inspectors
   offered to work with the licensee.

   Following the meeting, staff continued to receive calls  from neighbours
   complaining of the continuance, and at times, escalation of the negative
   impacts  from this operation.   The Chair  of the Commission  received a
   number of phone calls and letters  requesting the City to take action in
   this matter.

   As a result, the following actions were taken:

   -    The health inspector continued his work  with the club's management
        to resolve the problem of the negative impact of music noise on the
        residents  of  Alexandra  Lodge  directly  above  (see  Appendix  D
        attached).

   -    The Police Duty Officer observed the activities at the Club on  the
        weekend of October 27-30, 1995 (Appendix E attached).

   A  meeting of  the CCST  was held  on November  2, 1995,  to  review the
   situation.  At  that meeting,  the health inspector  submitted a  report
   advising recent noise  level readings  lead to the  conclusion the  club
   management  has not made any noticeable effort to correct the problem as
   outlined in Appendix B.

   A Police representative confirmed the  information provided by the  Duty
   Officer and  advised the behaviour  of the club's  patrons and  the poor
   management of  the club continue to  be a drain on  police resources (36
   calls between September  14 - October  31).  On  the October 27 and  28,
   1995 weekend,  Police observed  over 450  patrons in  the cabaret.   The
   doorman stated  there were approximately  375 patrons,  even though  the
   permitted capacity is 225.

   A  LC/LB  inspector present  at the  meeting  advised he  was addressing
   problems  his agency has with the  management, including an unauthorized
   change of name to NRG.
   CONCLUSION

   Despite the  Commission's  and staffs  efforts  persuade the  owners  to
   improve the management of the club, the problems continue.  Management's
   failure  to address problems with  the resultant negative  impact on the
   neighbours  has led staff to recommend the Commission request Council to
   hold  a Show Cause Hearing on the  business license to operate a cabaret
   at 99 Powell Street.

                                     * * *