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Modification to CUP No. 96-30 <br />May 23, 2011 <br />Page 2 <br />Protect Description <br />The Velvet Lounge is an independently operated restaurant and lounge that offers dining and <br />entertainment to its patrons. The operation will offer dining until approximately 9:00 p.m. and then <br />shift to a club/entertainment venue with a more limited menu, as well as entertainment and <br />dancing. Entertainment will include DJ, karaoke, live band, cabaret theatrical performances and <br />vocal impersonator reviews. Dancing anticipated will include public dancing along with employed <br />dancers located throughout the establishment. Any dancing component of the business would be <br />required to comply with Chapter 11 - Dancing of the SAMC. <br />The requested modifications to the existing CUP would allow the applicant to offer entertainment <br />seven days per week, instead of the permitted two (Friday and Saturday), extend the hours of <br />entertainment until 2:00 a.m. to coincide with their hours of operation and expand the restaurant into a <br />basement area of the restaurant. <br />The storage area for the alcoholic beverages will be located on the first floor. A total of 67 square feet <br />will be utilized for alcohol storage as dry, cold and display areas. The overall storage of alcoholic <br />beverage consists of approximately 1.1 percent of the floor area and is less than five percent of the <br />gross floor area of the restaurant as required by the City's policies for gross floor area dedicated to <br />alcohol storage (Exhibit 3). <br />Proiect Backaround <br />The building located at 416 East Fourth Street began its life as the home of an Army Supply Store in <br />1922. Over the years it housed the West Fourth Street Furniture Exchange, the Cotton King & Queen <br />Variety Goods Store, a custom framing store, auction house, and second-hand store before it was <br />almost completely reconstructed in the early 1980's and the lower floor was improved as a restaurant. <br />Since that time it has housed a number of eating establishments, as well as a variety of office tenants <br />on the upper floors. <br />In 1996, the Boardwalk Restaurant was granted a conditional use permit (CUP No. 1996-30) allowing <br />alcohol service within an existing eating establishment. In 2005, the Boardwalk Restaurant was <br />granted an amendment to the conditional use permit changing some conditions of approval allowing <br />for operations until 2:00 am on Fridays and Saturdays; dancing; up to six musicians with amplified <br />instruments; and a wine cellar within the basement. The limitation in hours was approved at the <br />request of the applicant due to the fact that their business model did not include a large entertainment <br />component. Conditions were imposed to ensure that the eating establishment would operate in <br />concert with the surrounding uses. The conditions that were imposed were intended to mitigate <br />potential impacts created by the use and help to ensure the use would not negatively affect the <br />surrounding community. <br />31A-4