I

REPORT TO COUNCIL

VANCOUVER LIQUOR LICENSING COMMISSION

February 25, 1999

THESE RECOMMENDATIONS WILL BE REPORTED TO AND CONSIDERED BY CITY COUNCIL ON MARCH 9, 1999.
FOR ADDITIONAL INFORMATION CONTACT GIL MERVYN AT 873-7274.

A regular meeting of the Vancouver Liquor Licensing Commission was held on Thursday February 25, 1999, at 7:30 p.m., in Committee Room No. 1, Third Floor, City Hall.

PRESENT: Councillor Lynne Kennedy, Chair

Councillor Don Bellamy
Councillor Daniel Lee
Councillor Alan Herbert

CITY MANAGER'S
OFFICE: Brent MacGregor, Deputy City Manager

ALSO PRESENT: Michael Gordon, Central Area Planning

Guy Gusdal, License Coordinator
Inspector Dave Jones, i/c District 1, Police Department
Constable Pam Ruschke, Police Department
Paul Teichroeb, Chief License Inspector

CLERK: Gil Mervyn

ADOPTION OF MINUTES

The minutes of the Vancouver Liquor Licensing Commission regular meeting held January 28, 1999, were adopted as circulated.

RECOMMENDATION

1. Sonar Cabaret Ltd. (dba Club Sonar) - 66 Water Street File: 2614-13

Increase in Seating Capacity - Class `C' Cabaret

The Commission had before it an Administrative Report dated February 4, 1999 (onfile), in which the Chief License Inspector recommended Council not endorse the applicationby Sonar Cabaret Ltd. to increase the seating capacity of the Sonar Cabaret, located at 66 Water Street, from 299 to 500 seats.

Clause No. 1 (cont'd)

Club Sonar (formerly the Town Pump) has one of the few grand fathered Class `B'and Class `C' licenses left in the city that allows the premises to open earlier in the day and operate as a restaurant. The premises have been operating as a cabaret four nights per week and specializes in show casing a variety of bands with appeal to patrons in the age group 25 and under. Since approximately August 1997, the applicant has applied to the Liquor Control and Licensing Branch for a temporary change to the liquor license to allow a maximum capacity of 450 to cover specific events.

The Gastown area at closing time (between 1:30 am and 3:00 am), Monday through Saturday, has often been a problem for neighbourhood residents and the Police Department.

Staff recommend that the existing moratorium on increased seating or new licenses for the Gastown area be reaffirmed and this application not be endorsed. This area has an over abundance of cabaret and pub seats which impact on the increasing residential component of the neighbourhood.

The neighbourhood notification process resulted in nine letters of opposition and eighteen letters in favour of the application .

Guy Gusdal, License Coordinator, briefly reviewed the details of the Administrative report.

Inspector Dave Jones advised the applicant was a member of Barwatch and had a very good record of cooperating with the Police. Police opposition to this application is based on the lack of resources to deal with the number of existing licensed seats in the Gastown area and the difficulties which arise as a result of the number of patrons exiting at closing time, rather than the operation of the Sonar cabaret.

Paul Teichroeb, Chief License Inspector, confirmed the Sonar Cabaret had been receiving special occasion licenses to permit an increase in seating capacity to 450 seats, on an average of three times per week. As a result of renovations completed by the current owners, the maximum seating currently permitted by the Fire Marshall is 520. Staff are currently preparing a report which will recommend the adoption of guidelines for the issuing of special occasion licenses for increased seating in licensed premises. It is anticipated this report will be presented to the Commission during its April or May meeting.

Clause No. 1 (cont'd)

Dennis Coates, Agent to the applicant, distributed a map of the Gastown area and a package of information in support of the application (copies on file). During his presentation Mr Coates emphasized the following points:

·
the Club Sonar, and formerly the Town Pump, have operated at a larger capacity under the provisions of the special event licensing, first introduced by the Liquor Control and licensing Branch in 1987 and as such, this application does not represent an actual increase of the licensed seats which have been historically operating in Gastown;
· the operation of the Club Sonar is dependant upon the larger capacity for it's economic survival;
· the focus of the Club Sonar is more on entertainment and dancing than drinking, resulting in lower per patron revenues, compared with other drinking establishments;
· traffic along Water Street travels in a westerly direction. As the club is located at the western end of Water street, close to parking and the Skytrain station, patrons leaving from the Club Sonar have minimal impact on other businesses and residents in Gastown which are located primarily to the east;
· if approved, the applicant is prepared to enter into a Good Neighbour Agreement and is agreeable to a time limited development permit.

John Teti, owner, provided a brief history of the operation of the club, noting he had originally purchased and renovated the club on the understanding the ability to operate at an increased capacity, provided by the special event licensing, would be maintained. Local approval has only been required since the summer of 1998. The club has been very successful in providing a venue for local and international performers, many of whom have gone on to greater successes. Mr Teti emphasized it would not be economically feasible to continue to operate the club with only the 299 seats as approved by the current liquor license.

Gordon Knights, General Manager, reviewed the current operations and security systems in place at the club, noting the club had established and maintained an excellent working relationship with the Police. Club Sonar is a member of Barwatch and participates in the police "bartalk" program.

Luke McKeeham, Managing Partner, emphasized the club's efforts in trying to create business both locally and internationally, with a focus on entertainment, rather than alcohol.

Clause No. 1 (cont'd)

Alison Cameron, area resident, spoke in opposition to the application, as she felt it would not be possible for the club operators to adequately control the larger crowd resulting from the larger capacity.

The following spoke supporting the application, noting Club Sonar was professionally operated and provided a popular, safe venue for quality entertainment in Gastown:

· Vance Campbell, Barwatch
· Dana Baird, employee of Club Sonar
· Don Vincent, retailer
· Neil Uchida, cabaret operator in the Gastown area

Bert Hick, former General Manager of the Liquor Control and Licensing Branch, provided background information related to the introduction of the special event license by the Branch in 1987, noting the intention was to reward cabarets which were well-managed and encourage the provision of quality entertainment.

During discussion, Commission members noted it would be premature to consider this application given the current Provincial review of liquor licensing regulations and the pending staff report on special event license guidelines.

In response to a query, Paul Teichroeb advised, if this application were deferred pending the staff report on special event licensing, there would be no change to the current practise of issuing special event licenses for increased capacity for the Club Sonar during the interim period.

The following motion by Councillor Herbert was put and carried. Therefore, the Commission

RECOMMENDED

THAT consideration of the application by Sonar Cabaret Ltd., to increase seating capacity to 500 from 299, at the Sonar Cabaret, 66 Water Street, be deferred pending the report from staff on the proposed guidelines for special event liquor license increased seating applications.

- CARRIED UNANIMOUSLY

2. Licensed Premises - Extension of Tolerance Period File: 2611

The Commission had before it an Administrative Report dated November 28 (on file), in which the Chief License Inspector recommends Council advise the Liquor Control and Licensing Branch it supports a two-phased approach to provide for extension of the closing tolerance period, from 30 minutes to 60 minutes, for all Class `C' Cabaret liquor licenses located in the Downtown Peninsula, in order to minimize the number of people exiting cabarets into the neighbouring residential community at one time.

Phase One of the implementation plan would be limited to the area bounded on the north by West Georgia Street, the west by Thurlow Street and the south and east by False Creek. There are presently 18 cabarets operating in this area and three cabarets which have been approved or approved in principal in the Theatre Row Entertainment District. Staff propose that Phase One be operational for approximately 12 months, before consideration is given to expanding the policy into the Phase Two area, (defined as the remainder of the Downtown Peninsula not included in Phase One). There are approximately ten cabarets located in the Phase Two area. A public process would be required prior to implementation in the second area, as there is a significant nearby residential component, particularly in Gastown and the West End.

Staff support the extension of the tolerance period on a limited basis. Allowing an additional thirty minutes for customers to disperse from cabarets, once alcohol service has ceased, will result in fewer people emptying onto the streets at the same time and likely a reduction in public disturbances.

Guy Gusdal, License Coordinator, briefly reviewed the details of the Administrative report.

Vance Campbell, Barwatch, spoke in favour of the proposed extension of closing tolerance period but asked the Commission to reconsider the proposed time frame for expansion to other areas. Mr Campbell suggested a public process for the Phase Two area be initiated immediately, with the objective of implementing the Phase Two area within 90 days of the Phase One implementation.

Paul Teichroeb, Chief License Inspector, advised the timing of the implementation for the Phase Two area could be flexible, but emphasized the need to gain some experience in Phase One, before initiating a public process for the Phase Two area. It would be preferable to gain experience in the Phase One over the summer months.

Clause No. 2 (cont'd)

Gary Penny, Denman Station Cabaret, spoke in support for the proposed extension of closing tolerance period, but expressed concern regarding the Phase One and Phase Two boundaries. As proposed, the Denman Station Cabaret would be the only Class `C' cabaret west of Thurlow and south of Georgia Street not included in the Phase One implementation area. His cabaret would be the only gay club in the West End without the benefit of the extended closing tolerance period, resulting in unfair competition from the other bars who cater to the same clientele. Mr. Penny asked that the west boundary of the Phase One area be moved from Thurlow to Denman Street in order to include the Denman Station Cabaret (letter distributed and on file).

(At this point in the meeting Councillor Kennedy left and Councillor Bellamy assumed the Chair.)

John Teti, Sonar Cabaret, also spoke in favour of the proposed extension of the closing tolerance period, but suggested consideration be given to including two additional cabarets in the Phase One area, which are currently members of Barwatch ( i.e. the Club Sonar and Purple Onion). This would result in a staggered dispersal time initially in the Phase Two area , as well as provide encouragement for other cabaret operators to join Barwatch.

Commission members agreed with the request to include the Denman Station Cabaret in the Phase One area, as it was an isolated case, being the only other cabaret located in the West End. The Commission did not, however, support the inclusion of any cabarets from the Phase Two area, as it is important to ensure a public process is carried out before any implementation occurs in the Phase Two area.

The following motion by Councillor Herbert was put and carried. Therefore the Commission:

RECOMMENDED

A. THAT Council advise the Liquor Control and Licensing Branch it supports a two-phased approach to provide for extension of the closing tolerance period from 30 minutes to 60 minutes for all Class `C' Cabaret liquor licenses located in the defined Phase One and Phase Two areas subject to conditions and an implementation schedule set by Council.

Clause No. 2 (cont'd)

B. THAT Council advise the Liquor Control and Licensing Branch it supports immediate implementation of the extension of the closing tolerance period from 30 to 60 minutes for all Class `C' Cabaret liquor licenses in the Phase One Area ("South Downtown" including the Theatre Row Entertainment District) as defined by the following boundaries; south of West Georgia Street to False Creek and East of Denman Street to Pacific Boulevard, subject to:

i) a signed Good Neighbour Agreement by all business licensees wishing to implement this privilege, and

ii) an understanding that the Liquor Control and License Branch would roll back this privilege for cabaret operators that have demonstrated consistent noncompliance with Liquor Licensing Regulations.

C. THAT staff report back on the feasibility of implementing the extension of the closing tolerance period from 30 to 60 minutes in the Phase Two Area which is defined as the remainder of the Downtown Peninsula not included in Phase One, within 90 days of the implementation of the Phase One area..

- CARRIED UNANIMOUSLY

3. Impacts of Inspections by the Provincial Liquor Control File: 2611

and Licensing Branch

During the Commission meeting held November 26, 1996, staff were requested to report back on the impacts and consequences of the additional inspections being carried out by the Liquor Control and Licensing Branch pertaining to overcrowding in cabarets.

Accordingly, the Commission had previously received a memo from Inspector Dave Jones, i/c District One (on file), providing information regarding the details and impacts of this inspection program.

Inspector Jones reviewed the contents of the report. In responding to questions Inspector Jones clarified the current license inspection program had actually started in September, 1998 (not 1997, as indicated in the report).

Commission members noted many of the concerns related to this issue had been addressed by the City's response to the current Provincial liquor policy review and other recent City staff initiatives.

The following motion by Councillor Herbert was put and carried. Therefore the Commission:

RECOMMENDED

THAT the report by Inspector Dave Jones regarding the impacts of license establishment enforcement be received for information.

- CARRIED UNANIMOUSLY

The Commission adjourned at 9:50 p.m.

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(c) 1998 City of Vancouver