Liquor License Proposals for Theatre Row

POLICY REPORT
LICENSING
Date: November 21, 1997
Author/Local: N.Edelson/7444
CC File No. 2610
TO: Standing Committee on Planning and Environment
FROM:Chief License Inspector and Director of Central Area Planning, in Consultation with Chief Constable and Director of Community Services
SUBJECT:Liquor License Proposals for the Theatre Row Entertainment District (Granville Street)
RECOMMENDATION
A.THAT Council policy for the distribution of new licensed seats in the 900 Block of Granville Street be amended to allow for up to 2 (130 seat maximum) cabarets and 3 neighbourhood pubs;
B.THAT Council endorse the request from the Cactus Club for 65 indoor and 20 patio Class D neighbourhood pub seats, at 900 Granville Street, subject to a time-limited development permit and other conditions outlined in this report, having considered that the majority of the area residents are in favour of granting the license, as determined through the neighbourhood notification process;
FURTHER THAT the application was considered with regard to the proximity of existing and proposed residential developments, traffic patterns, road and transit access and the availability of parking, possible noise impacts and the overall design and appearance of the building, noting that this proposal is in compliance with the plan for the area which has been designated as the Theatre Row Entertainment District;
C.THAT Council endorse the request from the Cactus Club for 130 Class C cabaret seats at 900 Granville Street, subject to a time-limited development permit and closing hours restricted to midnight from Sunday to Wednesday and 1:00 a.m. on Thursday, Friday and Saturday;
FURTHER THAT the cabaret development permit not be renewed if the Provincial Liquor Licensing Control Branch (LCLB) approves a Class D neighbourhood pub at 900 Granville Street, unless there is an equivalent reduction in the number of Class A or C seats in a nearby residential area, at which time the closing hour may be extended to 2:00 a.m., subject to a registered covenant agreement;
D.THAT Council endorse the request from the Granville Entertainment Group for 65 indoor and 20 patio Class D neighbourhood pub seats, at 952 Granville Street, subject to a time-limited development permit and other conditions outlined in this report, having considered that the majority of the area residents are in favour of granting the license, as determined through the neighbourhood notification process;
FURTHER THAT the application was considered with regard to the proximity of existing and proposed residential developments, traffic patterns, road and transit access and the availability of parking, possible noise impacts and the overall design and appearance of the building, noting that this proposal is in compliance with the plan for the area which has been designated as the Theatre Row Entertainment District;
E.THAT the proposal by the Granville Entertainment Group for a 130-seat cabaret at 952 Granville Street be supported in principle, subject to the conditions outlined in this report, including a time-limited development permit, the provision of a comedy club entertainment format and a reduction of an equivalent number of Class A or C seats from a nearby residential area;
FURTHER THAT closing hours be restricted to midnight from Sunday to Wednesday and 1:00 a.m. on Thursday, Friday and Saturday;
F.THAT the proposal by Tom Lee Music for a 240-seat Class E license for a recital hall at 929 Granville Street be endorsed;
FURTHER THAT these seats not be included as part of the 1,000 licensed Class A, C and D seats identified for the Theatre Row Entertainment District;
G.THAT the proposal by the Theatre Row Management Company (TRM) for 65 indoor and 20 patio Class D neighbourhood pub seats, at 800 Granville Street, be supported in principle, subject to the conditions outlined in this report includingneighbourhood notification, a time-limited development permit, and documentation, to the satisfaction of the Chief License Inspector, that the site has been secured for this purpose;
H.THAT the proposal by Mr. Charles Wertman for 65 indoor and 20 patio Class D neighbourhood pub seats at 950 Granville Street be supported in principle, subject to the conditions outlined in this report including neighbourhood notification, a time-limited development permit, and documentation, to the satisfaction of the Chief License Inspector, that the site has been secured for this purpose and that new buildings at 942 and 950 Granville will be developed at the same time;
I.THAT the applications for the following be refused:
·530·700 GranvillePYH (85 Class D seats);·530
·530·910 GranvillePlanet Pub (85 Class D seats);·530
·530·910 GranvilleNeighbourhood Pub (85 Class D seats);·530
·530·932 Granville Roxy Cabaret (25 Class C seats);·530
·530·957 GranvilleFoghorns Pub (85 Class D seats); and·530
·530·No AddressDie Maschine (200 Class C seats);·530
J.THAT only proposals for Class A, C or D liquor licenses which result in a reduction of seats in the residential areas in or near Downtown South be considered for the Theatre Row Entertainment District until December 1998, except small lounges associated with new hotels and that these small lounges be excluded from the 1,000 seats identified for Theatre Row;
K.THAT staff report back, as part of the 1998 comprehensive review of the Business License Fees, with a fee structure for licensed establishments that will help offset the costs of neighbourhood impacts.
GENERAL MANAGER'S COMMENTS
The General Manager of Community Services RECOMMENDS approval of A through K.
COUNCIL POLICY
On June 19, 1997, the following policies were approved for liquor licensing in the Theatre Row Entertainment District:
-the 700, 800 and 900 blocks of Granville street be designated the Theatre Row Entertainment District;
-allowance be made in principle for a combined total of up to 1,000 Class A (Hotel Pub or Lounge), Class C (Cabaret) and Class D (Neighbourhood Pub) liquor licensed seats on Theatre Row;
-a Proposal Call Program be initiated to determine which liquor license applications will be considered for approval on Theatre Row; and
-at least 400 liquor licensed seats be reserved to encourage the relocation of licensed facilities from the residential areas of Downtown South.
PURPOSE
This report evaluates 13 proposals for new licensed premises on Theatre Row, in keeping with the Downtown Liquor Licensing Policy.
SUMMARY
In June, Council adopted a liquor licensing strategy for the Theatre Row Entertainment District - the 700 to 900 Blocks of Granville Street. The strategy allows up to 1,000 new Class A (hotel pub), Class C (cabaret) or Class D (neighbourhood pub) seats in the district. It includes a Proposal Call Program to determine which, if any, liquor license applications should be considered for approval. In response to the program, fourteen proposals have been received.
This report suggests that six licenses containing a total of 600 of the 1,000 seats may be supportable. It recommends Council formally endorse that the Provincial Liquor Control and Licensing Branch (LCLB) approve two 85-seat neighbourhood pubs (Cactus Club at 900 Granville and Gilligan’s at 952 Granville) and one 130-seat cabaret (Cactus Cabaret, on an interim basis). It also recommends supporting in principle two 85-seat neighbourhood pubs (Charles’ Place at 950 Granville and Scruffy Murphy’s at 800 Granville) and one 130-seat cabaret (Gilligan’s) in the area, subject to specific conditions.
In addition, staff recommend that 240 Class E seats be endorsed for the Tom Lee Music Hall at 929 Granville. A companion report proposes legal mechanisms to ensure the hours of operation and seating within these premises can be rolled back in a timely manner should there be significant negative impacts on the neighbourhood. A future report will propose a license fee structure to cover any increased needs for policing or social services.
BACKGROUND
In 1992, Council placed a moratorium on new liquor licensed seats in Downtown South to help encourage the creation of a new residential community. Between 1993 and 1996 Council appointed a task force which reviewed the issues and opportunities related to liquor licensing in the downtown. In response Council approved:
-measures to minimize the impacts of liquor licensed establishments on existing and future residential uses;
-several areas where licensed venues could be encouraged;
-ways to encourage the relocation of existing cabarets from residential to commercial areas; and
-ways to offset the neighbourhood impacts of licensed establishments by contributing to the provision of policing, social services and low cost housing.
In particular, Council endorsed:
·530·the designation of Theatre Row as an entertainment district, subject to securing adequate enforcement measures;·530
·530·the use of development permits, limited in time, to help ensure late-night licensed establishments minimize neighbourhood impacts; and·530
·530·a procedure for considering a combined total of up to 1,000 Class A, C or D seats on Theatre Row (see Appendix A for details of Council policy - on file in City Clerk's Office).·530
DISCUSSION
Number and Type of Applications
In keeping with the Council-approved procedure, on July 4, 1997, staff placed an advertisement in the local papers, indicating that for 30 days the City would accept expressions of interest for new licensed establishments on Theatre Row.
As of the August 18, 1997 deadline, the City received 13 proposals which are on file with the City Clerk. Of the 13 proposals, 10 were concentrated in the 900 block of Granville Street betweenSmithe and Nelson Streets. One proposal was for the 700 block, one for the 800 block and one proposal did not reference a specific block. Four proposals were for Class C cabarets, nine were for Class D neighbourhood pubs and one was for a Class E concert hall license.
Evaluation of the Proposals
Staff evaluated the 13 proposals using, in addition to meeting the requirements of the policing strategy, the following criteria identified by Council:
·530·reducing licensed seats in Downtown South;·530
·530·providing low-income housing;·530
·530·retaining heritage;·530
·530·introducing new character buildings;·530
·530·increasing the variety of entertainment and vitality of Theatre Row;·530
·530·creating employment and training opportunities for low income residents of the Downtown;·530
·530·maximizing the distance from other Class ‘A’, ‘C’ and ‘D’ licensed establishments; and·530
·530·providing other public benefits.·530
Cactus Club and Gilligan’s Neighbourhood Pubs - Endorse Now
Staff recommend that the following two proposals for neighbourhood pubs be endorsed now to assist in the revitalization of Granville Street by increasing the variety of entertainment and vitality of Theatre Row and by reopening vacant buildings. Both are complete applications with secured sites, detailed descriptions of their operation, including floor plans, types of entertainment, management capabilities, menus, employment and policing strategies:
·530·900 Granville: Cactus Club Brew Pub - (65 Class D seats plus a 20-seat patio; applicant: Cactus Restaurants Ltd.) (rationale: enhances the variety of entertainment on Granville by introducing a brew pub, a restaurant, and possibly a cabaret, by a well-known restaurant chain; provides live entertainment; revitalizes a prominent 3- storey building which is currently vacant);·530
·530·952 Granville: Gilligan’s Pub - (65 Class D seats plus a 20-seat patio; applicant: Granville Entertainment Group) (rationale: introduces variety of entertainment on Granville with a comedy theme pub and restaurant or possibly cabaret, featuring live entertainment; will be managed by a group which has successfully operated several licensed premises in the area and elsewhere; renovates an existing building which has been vacant for several years and is in poor condition).·530
Both are seen as good proposals, with the Cactus Club favoured because it is in a more prominent location, adds a larger investment through the restaurant and brew pub and brings a well-knownVancouver business to Theatre Row.
However, neither of these proposals would directly result in a reduction of existing licensed seats in nearby residential areas. Staff are supporting them to help "kickstart" Theatre Row as an entertainment district. It is anticipated that if these establishments are successful, other clubs may become interested in relocating. In addition, these pubs will likely not create significant negative impacts on the surrounding community since they are small and have relatively early closing times.
It is important to note that the LCLB generally does not license neighbourhood pubs within a mile of one another. Since both proposals are within a mile of one another and the Yaletown Brew Pub, permitting either of them would require a relaxation of this distancing guideline. Thus, even with City endorsement, neither pub proposal is automatically assured of Provincial approval.
Cactus Club Cabaret - Endorse Now on an Interim Basis
In addition to the neighbourhood pub, Cactus Restaurants has requested a 130-seat cabaret as part of its ultimate plans. This cabaret is supportable in that it is considerably smaller than typical 350-seat venues and is integrated with compatible mixed uses. However, it will have some impacts in a neighbourhood which already contains a large number of late-night establishments. Thus staff recommend against permitting this cabaret on a permanent basis, until there has been an equivalent reduction in seats nearby.
In evaluating this proposal, staff note that the LCLB review of neighbourhood pubs is a more lengthy process than its review of cabarets. Thus it will likely be at least several months, and could be up to one year, before the LCLB completes its review of the Cactus Club Neighbourhood Pub application. To help give the applicant enough assurance to begin renovations for the restaurant complex, staff recommend that as an interim measure, Council endorse the 130-seat cabaret under the following conditions:
·530·restricting the closing hours to the same proposed for the neighbourhood pub - midnight from Sunday to Wednesday and 1:00 a.m. on Thursday, Friday and Saturday; and·530
·530·issuing a temporary development permit which will not be renewed if the LCLB approves a neighbourhood pub license on that site, unless there has been an equivalent reduction of seats from a nearby residential area.·530
Gilligan’s Cabaret - Support in Principle
In addition to the neighbourhood pub, Gilligan’s has requested a 130-seat cabaret as part of its plan for a comedy club. If this is not approved, the space will be used for a restaurant. A small cabaret is supportable in principle, because more people are likely to come to the comedy club after havinghad dinner elsewhere. It would also be smaller and close earlier than typical late-night cabarets. However, since the LCLB review of Gilligan’s Neighbourhood Pub application is well underway, there is no strong rationale to formally endorse the cabaret proposal until there has been an equivalent reduction of seats from a nearby residential area.
Tom Lee Concert Hall - Endorse Now
Staff recommend that 240 Class E (concert hall) seats be endorsed for the Tom Lee Music Hall at 929 Granville Street. This will allow for the serving of alcoholic beverages during events in the existing recital hall. It will also add to the variety of venues in the district and help in the retention of an important heritage building. This proposal should not be included in the 1,000 seats identified by Council for Granville Street because its impacts will be significantly less than those of cabarets or pubs.
Scruffy Murphy’s - Support in Principle
The Theatre Row Management Company (TRM) has proposed Scruffy Murphy’s Neighbourhood Pub at 800 Granville. It would contain 65 Class D seats, plus a 20-seat patio. This application would enliven the north end of the 800 block of Granville Street which is some distance from existing licensed outlets. Although it would be replacing an existing clothing retail outlet, the pub would enhance the vitality and variety of entertainment on Theatre Row by introducing an Irish theme pub with live entertainment in a facility at a prominent location. The application is supportable in principle subject to provision of:
·530·neighbourhood notification;·530
·530·an entrance or significant pedestrian interest on the Granville frontage, not just on Robson as proposed; and·530
·530·documentation, to the satisfaction of the Chief License Inspector that the site has been secured.·530
Charles’ Place - Support in Principle
Mr. Charles Wertman has applied for Charles’ Place Neighbourhood Pub at 950 Granville, containing 65 Class D seats, plus a 20 seat patio. The pub would enhance the vitality and variety of entertainment on Theatre Row with a home-like atmosphere and live music on the weekends. It would also replace an older, partially vacant building, which is in poor condition with two new buildings in keeping with the historic character of Granville Street. This proposal is supportable in principle, subject to provision of:
·530·neighbourhood notification;·530
·530·a complete management plan, including managers experienced in running successful licensed establishments;·530
·530·a policing strategy to the satisfaction of the Chief Constable;·530
·530·formal commitment, to the satisfaction of the Director of Planning, that both lots will be redeveloped with new buildings; and·530
·530·documentation, to the satisfaction of the Chief License Inspector, that the site has been secured.·530
Proposals Recommended for Refusal
The proposals listed below are not endorsed because they did not significantly achieve Council’s criteria. All will add licensed seats without offsetting reductions in nearby residential areas. None will involve the development of new buildings, heritage retention or the provision of low-cost housing. Several are sites currently occupied by existing businesses.
·530·700 Granville PYH (85 Class D seats);·530
·530·910 Granville Planet Pub (85 Class D seats);·530
·530·910 Granville Neighbourhood Pub (85 Class D seats);·530
·530·932 Granville Roxy Cabaret (25 Class C seats);·530
·530·957 Granville Foghorns Pub (85 Class D seats); and·530
·530·No Address Die Maschine (200 Class C seats).·530
Adjusting Council Policy for the 900 Block of Granville
Council’s current policy would allow the following combinations of new licenses in the 900 Block of Granville Street:
·530·2 cabarets and 2 neighbourhood pubs, or·530
·530·1 cabaret and 3 neighbourhood pubs, or·530
·530·1 cabaret, 2 neighbourhood pubs and one hotel pub/lounge.·530
Each of these cabarets could have up to 350 seats and be open until 2:00 a.m. To accommodate the proposals recommended in this report, this policy would have to be adjusted to include up to:
·530·2 (130-seat maximum) cabarets and 3 neighbourhood pubs.·530
Alternatives to Reductions in Licensed Seats
An important objective of the Theatre Row strategy is to encourage a reduction in the number of late-night cabaret seats in the residential areas of Downtown South. This could be done in a number ofways, including an applicant purchasing an existing establishment, closing it and in effect relocating the seats to Granville Street. Several applicants have indicated that it has not been possible for them to purchase existing cabarets at this time. As an alternative, they have suggested that the City consider receiving a voluntary contribution of an amount of money equivalent to the value of the seats. This would enable the City to accumulate funds to purchase and redevelop sites containing cabarets.
Staff have concluded that this proposal is premature. There may be more creative financial arrangements private firms can make with one another to help secure seats. In addition, as Downtown South continues to grow, sites containing cabarets will likely be redeveloped. As Theatre Row becomes more successful, existing establishments will also likely be more willing to move. Should seats not be reduced in a timely manner, it may be concluded that a voluntary contribution alternative is worth exploring. However, considerable work will have to be undertaken to determine the value of existing seats to develop appropriate administrative procedures and to analyse the implications of such a program.
License Fees
Staff recommend a report back on a new schedule of fees for facilities with liquor licenses to help cover the costs of impacts, including extra policing and other social services. This would be done, in consultation with representatives of the industry, as part of the 1998 comprehensive review of Business License Fees.
SOCIAL IMPLICATIONS
Increasing the number of licensed seats in the Theatre Row area of Downtown South may result in the increased consumption of alcohol and possibly violence and noise, particularly during the late night and early morning hours. For this reason, the continued implementation of the policing strategy and the support of area social facilities such as the Youth Drop-In Centre, currently in the Comox Building (St. Paul’s Hospital) are recommended.
CONCLUSION
Staff recommend that several applications for licensed venues on Theatre Row be endorsed now or supported in principle to help "kickstart" the revitalization of Granville Street. As these establishments become successful, it is expected that other businesses, including several cabarets from nearby residential areas, will be attracted to relocate to Theatre Row.
* * * * *

Comments or questions? You can send us email.