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HomeMy WebLinkAboutCAO-15-016 - Food Truck Follow Up Staff Report K jT(HF,-Ni., CA0 Office www.kitchener ca REPORT TO: Finance & Corporate Services Committee DATE OF MEETING: May 4, 2015 SUBMITTED BY: Rod Regier, Executive Director of Economic Development 519-741-2200 ext. 7506 PREPARED BY: Cory Bluhm, Manager of Downtown Development 519-741-2200 ext. 7065 WARD (S) INVOLVED: Ward 1 & 10 DATE OF REPORT: April 23, 2015 REPORT NO.: CAO-15-16 SUBJECT: Food Truck Follow Up Report RECOMMENDATION: That Bylaw 2014-056 be amended as shown in the "Proposed Bylaw" to permit weekly or monthly food truck locations within the Downtown Kitchener BIA boundary, subject to the requirements contained therein; That in 2015, the City shall not offer weekly food truck programming at Carl Zehr Square unless it is associated with a festival or event; That food trucks not be permitted on Breithaupt Street unless authorized through a special event license; and, That Council reconsider permitting food trucks on Breithaupt Street once ION construction has been completed. BACKGROUND: In January of 2015, City Council approved modifications to the City's Food Truck Bylaw. Council also directed staff to work with Downtown restaurant owners and food truck operators to determine if mutually agreeable food truck programming/locations could be developed. Council also directed staff to consult with restaurants near the Breithaupt Block and report back on the viability of allowing food trucks on Breithaupt Street. Council also asked staff to report back on which industrial zones permit restaurants and would also allow a food truck. ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 6 - 1 REPORT: Downtown Restaurant Owners & Food Truck Operators City staff facilitated a series of meetings between downtown restaurant owners and food truck operators. All downtown restaurants and active food truck operators were invited to participate. In total, 7 restaurants and 8 food trucks participated. In general, all in attendance agreed that: • Lunch time restaurant traffic downtown is healthy, while evening and weekend restaurant traffic needs a boost; • Restaurant traffic is stronger in warmer months than colder months; • King Street receives significantly more foot traffic than side streets; and, • Lunch time traffic downtown generally supports quick serve restaurants while sit down restaurants tend to be slower during the lunch hour. More importantly, all parties generally agreed on the desire to see Downtown Kitchener flourish as a food and restaurant destination, where food truck locations and programs would support both food trucks and restaurants. In particular, attendees agreed to try to develop food truck locations off of King Street, where food truck operators and restaurant owners can potentially work together, to drive new foot traffic to side streets, past existing restaurants or to clusters of existing restaurants. As such, it was agreed Carl Zehr Square would not be programmed with food trucks in 2015, on a weekly basis, in favour of the following locations: • Wednesdays and Fridays, between 11am-3pm, on the City's Gaukel Street Parking Lot, with two food trucks per lunch, as programmed by local food truck operators; and, • Wednesdays, after 4pm, on the Duke Food Block (with up to three food trucks located on private property), as programmed by a downtown restaurant owner. Staff, including the Parking Enterprise, support the above listed locations and will work with those involved and the BIA to assist in the execution of these locations. Bylaw Changes — Permission of Weekly Locations To enable the proposed locations, and to provide a basis for any future locations, modifications to the Food Truck Bylaw are proposed. In essence, the changes enable the City, BIA, a restaurant owner or a food truck operator to initiate a weekly or monthly program/location, subject to the following: • The program/location will be utilized by more than one participating food truck; • Participating food trucks operate on a rotating basis and are licensed by the City; • The location is not on properties fronting King Street and is in a location that is satisfactory to the City's Director of Transportation Services and Chief Building Official; • The location is endorsed by the Board of the Downtown Kitchener BIA; and, • Locations will be approved annually by the City's Manager of Downtown Development. 6 - 2 The bylaw changes encourage multiple food truck operators and restaurant owners to collaborate on creating food destinations, while preventing a singular food truck from creating a location specific to their own needs, circumventing the other provisions of the bylaw. Food Trucks on Breithaupt Street The City's Transportation Services staff have no concerns with a food truck operating in a parking bay along Breithaupt Street. City staff did, however, consult with the three adjacent restaurant operators. One operator responded. They have experienced a significant loss in customer traffic since the start of ION construction and were not supportive of a food truck operating on Breithaupt Street. As such, City staff recommend deferring any decision on Breithaupt Street until after ION construction has been completed. Food Trucks in Industrial Areas Food trucks are permitted in the industrial zones where restaurants are permitted. This includes B3, B4 and M3 zones. The one exception is the Huron Business Park, where food trucks may operate on private property regardless of the zone. This was established in 2014, based on the significant employment base in the business park and relative scarcity of food offerings available. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: Dynamic Downtown — the proposed amendments facilitate "Push the Boundaries" by encouraging people activity on streets other than King Street. FINANCIAL IMPLICATIONS: The 2015 Licensing Fee for food trucks has already been set by Council. Participation in the proposed locations/programs would be included in the base license fee. Transportation Planning staff do not believe the food truck programming on the Gaukel Street Parking Lot in 2015 will lead to lost revenue, and as such are willing to provide the space on a test-pilot basis. However, should this location continue in 2016 and beyond, Transportation Services suggest considering an increase to the annual licensing fee to compensate the Parking Enterprise for the parking rates the food truck operators would otherwise be required to pay for use of the parking spaces. COMMUNITY ENGAGEMENT: COLLABORATE — The City facilitated discussions between Downtown restaurant owners and food truck operators which ultimately lead to the proposed changes. The City will consult with the Board of the BIA prior to the Committee Meeting. Copies of this staff report will be provided to all who participated in the discussions. ACKNOWLEDGED BY: Dan Chapman, Deputy CAO Finance & Corporate Service ATTACHMENTS: Draft By-law 6 - 3 BY-LAW NUMBER of the CITY OF KITCHENER (Being a by-law to amend By-law 2014-056 of The Corporation of the City of Kitchener, being a by-law to licence Food Trucks) WHEREAS it is deemed expedient to amend By-law Number 2014-056 of The Corporation of the City of Kitchener; NOW THEREFORE the Council of the Corporation of the City of Kitchener enacts as follows: 1. Section 18 of By-law 2014-056 is hereby deleted in its entirety and replaced with the following: A Food Truck may only be operated within the DKBIA Boundary: (a) at Carl Zehr Square as programmed and organized by the City; (b) as part of City-approved festivals and events where the appropriate Food Truck Special Event License has been obtained; (c) as part of a one-time promotional event between restaurant(s) and Food Truck(s) for a maximum period of four hours provided written consent of all neighbouring restaurants has been provided to and approved by the Manager of Licensing in advance; (d) as part of a plan to operate on a property on a consistent basis, as approved by the Manager of Downtown Community Development. The Manager of Downtown Community Development shall only approve plans which satisfy the following- (i) the plan is organized by either the City of Kitchener, the Downtown Kitchener BIA, a food truck operator or a downtown restaurant owner; 6 - 4 (ii) the organizer identifies the location, the days and times food trucks would operator and the maximum number of food trucks who would be operating during said times; (iii) where food trucks will operate on a weekly or monthly basis; (iv) the plan includes more than one participating food truck; (v) all participating food trucks are licensed by the City of Kitchener; (vi) the participating food trucks operate on a rotating basis; (vii) the proposed property does not front on to King Street; (viii) the location is satisfactory to the City's Director of Transportation Services and Chief Building Official; (ix) the landowner of the property upon which the food trucks will operate has provided authorization; (x) the plan is endorsed by the Downtown Kitchener BIA; and, (xi) where the location resides on City owned land, the organizer agrees to terminate the use of the property if the City determines that the site in question has been damaged, litter or refuse is left behind, or if the operation of the food trucks negatively interferes with the normal use and operation of the property. All plans will be approved on an annual basis, and only within the approved calendar year. The Manager of Downtown Community Development may limit the number of plans approved in any given year. (e) where specifically permitted by a Food Truck Special Event permit. 6 - 5 2. This by-law comes into effect immediately upon its passing. PASSED at the Council Chambers in the City of Kitchener this day of A.D. 2015. Mayor Clerk 6 - 6