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SR-11-B (31) -. ~ L J CC (} / /" B PRC:JG:SM:bs sr1119.winword Council Meeting 11/26/91 N[W , -, ;;....:i! Santa Monica, California TO: Mayor and city council FROM: Pier Restoration corporation SUBJECT: Recommendation to Adopt the Alcoholic Beverage Service Policy statement for the Santa Monica pier INTRODUCTION This report transmits the pier Restoration Corporation's (PRC) Alcoholic Beverage Service Policy for the Santa Monica pier and recommends that the city council adopt this policy. BACKGROUND On October 9, 1991, the Board of Directors of the Santa Monica pier Restoration Corporation adopted the attached policy establishing requirements for Pier tenants regarding the service of alcoholic beverages. The policy particularly addresses outdoor patio areas and limits the total number of outlets for both full service and limited beer and wine licensing. As part of its review of the Pier's development plans, the PRC Board began examining the issue of alcohol outlets and service in May, 1990. The development guidelines that resulted from the public workshops called for a large number of restaurants, cafes and nightclubs and although the PRC I S development plan did not include as many outlets, the Board felt it was time to examine //-/3 ~,,..,. , hJtf the number, the type, the location and the appropriateness of each. since the PRC was then involved in the beginnings of lease negotiations with the new developers, the timing allowed the results of Board decisions to be included in the leases. In September, 1990, the PRC Board decided to eliminate alcohol sales from any food establishment that utilized common seating with other food establishments. In this way, the anticipated problem of unsupervised patrons carrying alcohol out to public areas would be eliminated. As a result of further deliberations on the issue, the Board banned alcohol sales in the Fun Zone development area on December 5, 1990. It was felt that alcohol is this area was not necessary given the fact that this was a concentrated location of family amusements, and other areas of the Pier would provide the bulk of the food and beverage services. At that same meeting, the Board reviewed recommendations from the Police Department and included each of those recommendations in the policy attached. At the August 14, 1991 Board meeting, a detailed pier alcohol policy was approved by the Board. It contained a list of 15 operations that would be permitted to obtain either full service or beer and wine alcohol licenses. Members determined that the Pier should be evaluated separately from the city-wide alcohol policy. 2 The Pier development plan has existed since the workshops in 1982-83, long before alcohol outlets became an issue in the city. That development plan spent many years being refined, approved by all the necessary governmental agencies and bodies and is now in the process of implementation. Based on this foundation of work and representations, private developers have been selected, have invested funds and have calculated revenue and operational projections. Although the Pier is located in the City of Santa Monica, it has always been viewed as a regional facility. city-wide limits cannot apply to such a facility if it is to be successful. Since hour limits on outdoor alcoholic beverage service was being considered for other areas of the city, the Board added a specific pier statement to that policy. pier facilities with outdoor areas would be permitted to sell alcohol beverages during all hours they were permitted to serve indoors in accordance with their ABC licenses. It was felt that the policy contained sufficient restrictions on the design and service of alcohol in the outdoor areas so that this additional restriction was unnecessary and unreasonable on the Pier. Some existing restaurants already have the ability to serve alcohol in the outdoor areas without city imposed time restrictions and without problems. It was also noted that unlike any other area in the City, the city is the Landlord for all pier establishments and has the ability to go as far a terminating a lease if a tenant 3 violates pier or ABC rules and regulations regarding alcohol sales or service. This issue was discussed a final time at the October 9, 1991 Board meeting. At that time, the Board reduced the number of establishments that would be permitted to obtain an ABC license from fifteen to eleven. This was done in an effort to be responsive to community concerns and it represents the smallest number of outlets possible in the Pier development if it is to be successful. BUDGET/FINANCIAL IMPACT The recommended action has no budgetary or financial impact. RECOMMENDATION Pier Restoration Corporation respectfully recommends that the City Council adopt the Alcoholic Beverage Service Policy statement for the Santa Monica Pier. Attachments A: Alcoholic Beverage Service Policy statement for the Santa Monica pier B: Pier Lessee Letter 4 Attachment "A n ALCOHOLIC BEVERAGE SERVICE POLICY FOR THE SANTA MONICA PII(I( ADOPI'ED BY THE SA..."ITA MONICA PIER RESTORATION CORPORATION BOARD OF DIRECTORS OCTOBER 9, 1991 The following alcoholic beverage servIce policy for the Pier includes certam rules and regulations for Pier tenants and a detenmnation of the number and type of alcoholic beverage licenses to be permitted on the PIer: 1. No "off-sale" license shall be permitted. 2. Future tenant lease agreements shall allow no alcoholic service of any land for food or other operatIOns With only counter pick-up service or common area seating for food and beverage consumption. (Current lease agreements that allow counter beer and wme service WIll be phased out as tenants are either ll1corporated into future facuitIes or are discontInued.) 3. Outdoor dll1ll1g patios that Include alcoholic beverage service shall only be allowed at full service restaurant locations. AlcoholIc beverage sefV1ce at these outdoor patios shall only be allowed during hours of operatIon when food service is provided. 4. Patlos must be adequately secured to prohibit contact with non-patrons, and door secunty must be prOVided at all times dunng hours when alcoholic beverages are bemg served. Specifically the design of outdoor patIo enclosures shall be no less than five foot in height and constructed in a manner that does not allow access other than by controlled doorways. No standing, counter or stool seatlng shall be allowed. Table sefV1ce only. 5. Establishments must post and StrIctly enforce capacity limits ill all areas serving alcoholic beverages. 6. Establishments must proVide sufficient personnel to check the age LD. of every person, and staff must be schooled in a designated driver program. 7. Establishments must conduct formal staff trainmg sessions in the proper sales and service of alcohohc beverages at least once every SIX months. - 1 - 8. Establishments must abide by all the rules and regulations of the State Alcoholic Beverages Control Board including but not limited to hours of operation. 9. In establishments where beer and wine are sold, non-alcoholic beer and wine selections must be available. ' 10. Food and non-alcohol1c beverages must be applied towards any minimum purchase requirement. - 2 - CURREt'ff & PROPOSED PIER FACILITIES TO SERVE ALCOHOUC BEVERAGES EXISTING FACILITIES Full Service: (47 license) Boathouse Restaurant Crown and Anchor Santa Monica Pier Cafe (January 1992) Beer & Wine Only: (41license) SeaVlew Seafood * Amencan Grill *Jacks *Surf View FACILITIES IN NEGOTIA nON Full ServIce: Ashgrove (Fall 1992) Sinbads (Winter 1993) Phase I only Fl)TURE FACILITIES Central PIa 7~ ~ Full Service: Entertainment Club Restaurant Beer & Wine Onlv: Family Restaurant P]~7~ Cafe Food Pavilion Cafes (2) *UntII Central Plaza Development Sauare Foota~e SeatIn~ - - Total In Out Total In Out 5.790 4.224 1.566 332 226 106 3.925 3,238 960 144 96 48 6.788 3,415 3,373 318 92 226 3.300 2,510 790 115 77 38 1.813 inside only 36 mside only 1.000 outsIde only 58 outside only 2.192 1,278 914 80 32 48 6.350 5,820 10,502 8,500 530 672 415 660 415 260 245 5.300 4.550 5.300 2.100 5.000 - 3 - .J... November 1, 1991 Santa Mon~ca City Counc~l Santa Mon~ca Planning Cornrn~ss~on Cl. ty Hall Santa Mon~ca, CA 90401 Dear Counc~l and Comrn~ss10n Members: We understand that the Cl.ty Counc~l and Plannlng Cornm~ss~on are currently engaged l.n the development of a comprehensive C1ty-w1de l~quor policy and, w1th~n that overall framework, a specif~c l~quor poll.cy for the Santa Mon~ca Pl.er. Sl.nce every business on the Pler w~ll be mater~ally affected by such poll.cl.es, we want to aSSl.st you by any means poss~ble In the effort. Hav~ng been on the Pier for many years and looklng forward to many more years on the Pler, we are naturally especlally concerned wlth the P~er POllCY, and, we bel~eveT possessed of particular knowledge and experience wh~ch can be useful 1n your deliberations. That 1S to say, we know the Pler and lts V1Sl.tors 1ntimately and want only the best for both. We understand that any Pl.er llquor policy must be compatlble and conslstent wlth the broader City policy, but, at the same time, l.t must reflect the unl.que character of the Pl.er and respond to the unique needs of its patrons. We are also very senSl.t~ve to both the health and publ~c safety issues and would not favor any measures which would, even inadvertantly, threaten elther. At the same time, we are realists. Many people enJoy beer, Wlne and/or liquor with their food -- whether a hamburger or a full-course meal, and expect It to be aval1able -- especially ln recreatlonal/entertainment facillt~es. Most such people drink In moderation and cause no trouble for themselves or others. We trust that neither the Clty nor the pier 11quor POllCY wl.ll work to deprlve the moderate maJority ln order to control the lmmoderate minorlty. We bel~eve that the pier Restoration Corporation's liquor serv~ce POllCY addresses the varlOUS lssues lntelllgently. We agree that there should be no "off-sale" ll.censes issued on the Pler and no alcohollC beverages served l.n or consumed In commons areas. Alcohollc beverage serV2ce should be comblned wlth food serV1ce. Outdoor patios should be secured. Capaclty llmlts should be strlctly observed and, of course, ID checks should be mandatory. Deslgnated driver, sales and serVlce tralnlng for staffs In restaurants and cafes WhlCh SANTA MONICA PIER LESSEES ASSOCIATION 201 Santa MOnica Pier Santa MOnica, CA 90401 (213) 395-4141 page two sell alcoholic beverages is certainly reasonable. We know of no restaurant anywhere WhlCh currently lnsists that mln~mum purchases conslst wholly of alcoholic beverages and would not approve any such demand on the Pler. We would also cooperate in any effort to reduce or eliminate problems of alcohol abuse on the Pler and throughout the C~ty. We would hope for a concurrent effort ~n the rest 0= the C~ty because, at the moment, we have more trouble w~th patrons who brlng alcohol~c beverages they've purchased elsewhere onto the Pler and/or people who arrlve on the Pler In varlOUS stages of lntoxlcatlon than we do wlth patrons of restaurants and cafes whlch serve beer, Wlne and/or llquor on the Pler. As tenants of the Clty, members of the Pler comrnunlty and hosts and hostesses, as it were, to everyone who comes to the Pier, Pler restaurant and cafe operators understand that thelr prlmary responslbllity ~s to see that everyone who comes to the Pier has a good tlme and that no one abuses hlS own health or the health and safety of others. We are not merely concerned w1th the lmage of the Pler but w1th the reallty. If lt 1S not a happy, healthy place, we wlll all ult1mately fall. The Pler is the City1s leadlng landmark, primary attraction and, as been sald by some of you, "the soul of Santa Monlca." It lS also the reg~on's last pleasure pler and one of the few sltes where people of modest means can enJoy themselves. It has been here longer than most, if not all of us, and, chances are lt wll1 still be here when all of us are gone. Almost everyone has a speclal memory of the Pler and almost everyone In the Clty has a speclal stake 1n it. When the Clty Counc1l voted to demolish lt in 1973, the people of Santa Mon2ca moved 2mmed2ately to preserve It for all time, and when storms destroyed much of it in 1983, the people of Sa~ta Monica restated thelr commltment to preserve It and to restore it. It 15, In all ways, unique, and any Pier POllCY, includlng a llquor pol~cy, must recogn~ze ltS UTI1queness, taklng pains not to dlmlnlsh or alter it in anyway. As important, the Pler should not be punished or made the scapegoat for problems In other parts of the Clty. We have read much ~n the medla recently about the number of liquor outlets in the City as a whole, and In the Bayslde Distrlct in partlcular. Accordlng to the medla, 216 llquor perrnlts have been granted In the Clty ln the last six years. A recent survey showed that there are 66 11quor outlets with~n the Bays~de Dlstrlct, or 8,599 seats, some not even open for business yet. Accordlng to thlS same survey, there are 585 seats In flve outlets in Santa Monlca Place alone. The Pler story, llke the Pler ltself, lS qU1te different. Before the storms of 1983, there were ten restaurants and cafes on the Pler. Some were lost 1n the storms. Somer such as Moby's Doc~ closed after the storms. Today, there are two full serVlce restaurants, servlng beer, Wl~e and llquor, four cafes servlng beer and Wlne, and one ca=e WhlCh serves no page three alcohollC beverages at all, or a total of six places serving alcohol. One addltlonal full serVlce restaurant, the Santa Monlca pier Cafe, w1lI open soon. Two addltional full service restaurants -- the Ash Grove and Slnbads -- are in lease negotlat1ons with the C1ty. In other words, the number of eXlstlng llquor outlets on the Pler has remalned more or less statlc _6. even .as other areas of the Clty have seen a quantum leap 1n number of outlets. As slgnlflcant, sald outlets on the P1er have not materlally increased, but the number of P1er vis1tors has escalated dramatlcally 1n the last couple of years. In 1989, an estlmated 1.9 mllllon people came to the Pler. Last year, that number rose to an estimated 2.5 million. In the flrst ten months of this year, we've had an est1mated 2,885,000 Vlsltors -- lnsplte of an unusually cool summer and the receSS1on. In order to serve 1tS addltlonal visitors, the Pier must be permltted to add these addltlonal facllltles, as they complete thelr lease negotlatlons, and to maintaln eX1sting facilities. We are not suggestlng a radlcal lncrease in llquor outlets, much less a relaxatlon of current policYI but rather that the resto~atlonl as descrlbed countless tlmesl be permitted to proceed w1thout undue encumberances, but wlth perhaps one slgnlflcant alteratlon. The orlglnal redevelopment plan lncluded a Central Plaza w~th two large full-serVlce res- taurants anG four large beer & w~ne cafes anu restaurants. The Env~ronmental Impact Report suggests that the Plaza 1S too large and would generate too much traff~c for area lntersectlons. Thenl tOOl some residents feel it 1S Just too much. Though we understand alterna~EIRs are being con- sideredl if the Central Plaza 1S ultimately el1m1nated, 4 current Pier tenants w1ll be left in limbo. The operators of Clara's, Jack'sl Surfview and the Ame~lcan Grill were all to be glven an opportun1ty to apply for space ln the Central Plaza. Now, we fear, they may be lost 1n the shuffle and that would be unfortunate for them and the P~er. All four are small. They have a total of less than 200 seats. Three of the four sell beer and w~ne. All serve such things as hamburgersl cotton candy, smooth1es, home-made potato ChlpS -- Pler food, 1n other words -- cafeteria style. All four operators are devoted to the P1er and have been here fo~ some tlme. All serve Pler vis~tors who can't afford the full-service restaurants or who simply want to grab a snack. We would urge that every effort be made not to lose them ln the shuffle, but rather that the need for them and thelr fare be reflected ln any P1er llquor policy -- especlally S1nce the Central Plaza may be modlfled or eliminated. These llttle cafes w~th the~r Pler food are a vital part of the whole P1er scene, popular with Pler V1sltors and of a plece w1th the Pler ltself. Just as the P~er needs full- serVlce restaurants, It needs these small, informal burger and cotton candy cafes, too. page four It isn't reasonable or even logical for people to cla~m that the number of alcoholic beve~age outlets on the P~er actual and in the works -- exceeds "the needs of the ne1ghborhood." In actual1ty, the Pier "ne1ghborhood" 1ncludes v1rtually the ent1re Los Angeles bas1n, and always has. Charles I.D. Loof! who was awarded a franch1se by the C1ty 1n 1916 to bu~ld the pleasure pier, wrote at the t1me, expla1ning h1S choice of Santa Mon~ca, "An amuse- ment p1er at thls locat1on would attract the most profltable crowd of pleasure seekers," and went on to note its acceSS1- blllty from all parts of Los Angeles. In 1983, the P1er Task Force, WhlCh was comprised of residents, echoed Looff's sent1ments: "The P1er 11terally has someth1ng for everyone of all ages, lncomes, races, 1deologles: the 'natlve' In bathlng suit and thongs, the family group from South Central or East Los Angeles, the camera laden tourist, the business- sUlted Rand Corporat1on executlve at lunch." There are, then, at last count, 2.8 m1ll1on people in the Pler "nelghborhood," and two full-service restaurants and four beer and Wlne cafes in that context can hardly been seen as exceSSlve. From Looff's t1ffie onward, alcoholic beverages have always been seen as part of the Pler plcture. In fact, the 250 people who attended the pier Taskforce workshops lD 1982 concluded that the eXlstlng ten restaurants and cafe should be augmented by the renovatlon and transformat1on of Slnbads into a cabaret-n1ghtclub, an enlargement of the Port Cafe, and an addltional three new restaurants, plus pushcarts. Then the storms carne and now ten years later if we retaln what 1S here now and add only what 1S already in the works, exclud1ng the apparently doomed Central Plaza, we w111 st1ll remaln well below the recommendat1ons of those C1tJ..Zens. It has been clear from the beginn1ng that food and drink are lntegral to the Pler's character and success. It is, after all, a pleasure pier and food and drink are as central as amusements, rides, games and 1ts spectacular setting to P1er vlsitors' pleasure. In FY 1989-90, the last year for whlch we have complete numbers, total P1er sales were $5,133,017. Of that sum $2.6 m1llJ..on derived from sales of food and drink. The Pler's only purpose 1S pleasure and It has always offered 1ts patrons a dJ..verse m1X of pleasures -- pastoral, recreatlonal and social, whlch 15 why J..t attracts such a d~ver5e m1X of people -- Joggers, fJ..sher~en, strollers, cyclists, ch1ldren, teen-agers, famll1es and older people, merry-go-round and bumper car rlders, game players, beach people, tour1sts from around the world, student photographers and film makers and sun- set aff1c1andoes, among others. And many of those people enJoy eat1ng and dr1nklng when they're here. Some enJoy cotton candy or churros or a soft drink. Others enJoy fresh seafood. Others enJoy W1ne or dr1nks and a full meal. The P1er has always of=ered lts patrons a full range of food and dr1nk and If 1t 1S to co~t1nue to serve 1tS patrons I page f.1.ve .1.t must continue to offer a full range. We recogn.1.ze that the P.1.er ~s, f~rst and foremost, a recreat.1.onal fac~l.1.ty for all ages and we see the sales of alcohol.1.c beverages as only one element in the full recreational spectrum. At the same t~me, we bel~eve that a respons.1.ble, responsive a~c workable P.1.er l~quor policy must acknowledge the needs and w.1.shes of both Pier patrons and cafe/restaurant operators. Wh.1.le the ma]or.1.ty of P~er patrons does not consume alcohol.1.c beverages, a substantial ffi.1.nOrlty does, and so alcohol1c beverages should be available to them In attractive, relaxed and varied settings from a simple cafe patlo to a strlk.1.ng restaurant inter.1.or. We have no deSlre to catch up, as It were to Bays~de, but we do want to malntaln a reasonable level of well-run l.1.quor outlets and a varlety of settlngs and prlce ranges to meet the tastes and needs of all P~er patrons. Any dim.1.nut.1.on of outlets or related restrict~ons would dlm.1.nish our abil.1.ty to satlsfy our patrons. Perhaps, In a perfect world, no one would want to dr.1.nk any- thing stronger than water, but our world .1.S anythlng but perfect and people do dr.1.nk beer, Wlne and llquor and f.1.nd it pleasurable and the buslness of the Pler .1.5 pleasure, and therefore there wlll always be Pler patrons who not only want but expect Wlne, beer and llquor wlth thelr food. The problems of eXCeS5.1.Ve llquor outlets In other parts of the C.1.ty, as outllned .1.n the med.1.a and at var~ous meet.1.ngs, do not exist on the Pler and therefore should not lead to suddenly restrlct.1.Ve pol.1.cles on the Pler. As operators of bus~nesses on the City's most cherlshed landmark, we have very special respons.1.b~lities to the Pler, the people of Santa Monica and Pler patrons. Having suffered through the hard t~mes, the '83 storms and the restoratlon process, each of us has or is ln the process of maklng a sign.1.f.1.cant .1.nvestment in the Pier's future. The Pier ~sn't Just a business to us, it's a way of 11fe. We love the P~er and bel~eve ln lt and lts mag~c. That rnag.1.c can't be planned or leg.1.slated, it can only be recogn~zed, respected, enJoyed and preserved. We urge you to do everythlng ~n your power to preserve it. Wine, beer and l.1.quor aren't the baS1S for the maglc, but they have certa.1.nly been lntegral to the Pier's long, proud past and ~ts promlslng present -- whether you bel~eve ln magic or money. Slncerely yours, _<2: -.~~ R"SJ. - Ronald R.1.sch, Pres~dent