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HomeMy WebLinkAboutFCS-12-160 - Liquor Licensing Review Committee ReviewREPORT TO:Finance and Corporate Services Committee DATE OF MEETING: September 24, 2012 SUBMITTED BY: Liquor Licensing Review Committee PREPARED BY: Patricia Harris, Manager of Licensing, 2854 WARD(S) INVOLVED: 9 & 10 DATE OF REPORT: September 17, 2012 REPORT NO.: FCS – 12-160 SUBJECT: LIQUOR LICENSING REVIEW COMMITTEE REVIEW RECOMMENDATION: For information purposes. BACKGROUND: On January 16, 2012 Council requested that a report be provided reviewing the Liquor Licensing Review Committee (LLARC) process and why it was established as well as the best practices of other municipalities that have thriving downtown entertainment districts. It was requested that the report also contain information on the proposed number of licensed seats in downtown Kitchener and the ideal means by which those seats should be distributed per location. REPORT: The Liquor Licensing Review Committee was established in 1999 to give Council the opportunity to formally make comments to the Alcohol and Gaming Commission regarding new applications for liquor licences in the downtown core. The Committee is comprised of four city staff and a member of the Downtown Business Improvement Association. In the mid to late 1990’s downtown Kitchener had an overabundance of bars and nightclubs. As the liquor license capacity increased so did the negative perception of the downtown. In 1999 there were approximately 17,000 bar seats in the downtown core. Nightclubs and bars made up approximately 60% of this number and all seats were concentrated within a 10 block radius. There were numerous fights and substantial damage to property on a continuous basis. City staff and the Downtown Business Association at the time had reached out to the bar and club owners but had received little or no co-operation from them. When searching for a solution, staff determined that it would be very difficult to use the City’s zoning by-law as it is difficult to fine tune zoning definitions to distinguish bars and nightclubs from other commercial uses in the downtown. It was determined at that time that the Liquor Licence Act and its regulations would be the best avenue to approach the issue. Section 6(2)(h) of the Liquor Licence Act states that a licence can be refused if the licence is not in the public interest having regards to the needs and wishes of the residents of the municipality in which the premises are located. Ontario Regulation 719 of the Liquor Licence Act further ïï ó ï states “In the absence of evidence to the contrary, the Registrar shall consider a resolution of the council of the municipality, in which are located the premises for which a person makes an application to sell liquor or holds a licence to sell liquor, as proof of the needs and wishes of the residents of the municipality for the purposes of clause 6(2)(h) of the Act”. In April of 1999 Council approved what is currently the process and the criteria for dealing with liquor licence applications in the downtown core. The process has remained relatively unchanged since that time. In 1999 there were approximately 17,000 licensed seats in the downtown core. Since the process has been implemented the number of licensed seats has dropped significantly to approximately 10,000 licensed seats. The Alcohol and Gaming Commission (AGCO) takes Council’s recommendations very seriously and in most cases has added the recommended conditions to an establishment’s liquor licence. A business that wishes to obtain a liquor licence is requested to complete a Request for Information form. The information provided on the form is then forwarded to the Liquor Licensing Review Committee and reviewed based on the following criteria which was approved by Council: 1. The owner’s and/or operator’s performance record, including by-law violations, building/fire/health code infractions and liquor licence offences. 2. The proximity of the premises to other licensed establishments 3. The proximity of the premises to other uses such as existing dwelling units 4. The size of the premises – occupant load and floor area 5. The ratio of liquor sales to gross sales 6. The proportion of the premises dedicated to ancillary entertainment 7. The hours of operation 8. Any other relevant factors A recommendation is then provided to Council for its consideration. If a business owner does not provide the information to the City, the Liquor Licensing Review Committee will review as much information as they can gather and make a recommendation to either oppose or not oppose the liquor licence. It is to the business owners’ advantage to provide the information to the Committee so that an informed recommendation can be made. The City has been a leader with regards to this process and many municipalities have requested input and implemented criteria from the City’s process. The Alcohol and Gaming Commission has also recommended our process to other municipalities. City staff contacted the municipalities of Hamilton, Guelph and London to gather input on their process regarding liquor licensing in their municipality. Guelph and London did not have a process in place where Council could comment on liquor licence applications. The City of Hamilton is in the process of implementing a process that is very similar to Kitchener’s with respect to the criteria that they are using to provide recommendations to Council. It is their intent to implement this process city-wide and charge a substantial fee as well as to add an additional full time employee to administer the program. The Business Improvement Association contacted several municipalities across the Province to determine if any municipalities limit the number of licensed seats in the Downtown. The consensus of several municipalities across the Province was that this could be considered discriminatory and could create an unfair competitive advantage. ïï ó î Staff also met with the Downtown Safety Committee to receive input. Their greatest concern is to maintain a safe environment in the downtown that creates a positive overall city image. Both Waterloo Regional Police and By-law Enforcement requested that they be circulated on all new applications for liquor licenses in the downtown core. This process change has been implemented. Their comments are reviewed by the Committee and taken into consideration when making recommendations to Council. The Liquor Licensing Review Committee was put in place to allow Council to be able to provide comments to the AGCO and request that certain conditions be added to the liquor licence as was deemed necessary. The AGCO has been extremely co-operative with the City in supporting our process and has usually added any conditions that Council has requested to the liquor licence. The final decision regarding any conditions placed on a liquor licence is at the discretion of the AGCO but to date they have been amenable to the City’s recommendations. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Community Priority – Dynamic Downtown The Liquor Licence Review Committee is in place to review all establishments that propose to sell liquor in the Downtown Core. This allows Council to then review and provide comments regarding the establishment to the Alcohol and Gaming Commission of Ontario (AGCO) in order to continue to provide a safe and dynamic downtown core. FINANCIAL IMPLICATIONS: None. COMMUNITY ENGAGEMENT: Not Applicable ACKNOWLEDGED BY: L. MacDonald, City Solicitor ïï ó í ïï ó ì ïï ó ë