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. * * *