31B - CUP - VELVET LOUNGE - 416 W FOURTH ST

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Modification to CUP No. 96-30 May 23, 2011 Page 2 Project Description The Velvet Lounge is an independently operated restaurant and lounge that offers dining and entertainment to its patrons. The operation will offer dining until approximately 9:00 p.m. and then shift to a club/entertainment venue with a more limited menu, as well as entertainment and dancing. Entertainment will include DJ, karaoke, live band, cabaret theatrical performances and vocal impersonator reviews. Dancing anticipated will include public dancing along with employed dancers located throughout the establishment. Any dancing component of the business would be required to comply with Chapter 11 - Dancing of the SAMC. The requested modifications to the existing CUP would allow the applicant to offer entertainment seven days per week, instead of the permitted two (Friday and Saturday), extend the hours of entertainment until 2:00 a.m. to coincide with their hours of operation and expand the restaurant into a basement area of the restaurant. The storage area for the alcoholic beverages will be located on the first floor. A total of 67 square feet will be utilized for alcohol storage as dry, cold and display areas. The overall storage of alcoholic beverage consists of approximately 1.1 percent of the floor area and is less than five percent of the gross floor area of the restaurant as required by the City's policies for gross floor area dedicated to alcohol storage (Exhibit 3). Project Background The building located at 416 East Fourth Street began its life as the home of an Army Supply Store in 1922. Over the years it housed the West Fourth Street Furniture Exchange, the Cotton King & Queen Variety Goods Store, a custom framing store, auction house, and second-hand store before it was almost completely reconstructed in the early 1980's and the lower floor was improved as a restaurant. Since that time it has housed a number of eating establishments, as well as a variety of office tenants on the upper floors. In 1996, the Boardwalk Restaurant was granted a conditional use permit (CUP No. 1996-30) allowing alcohol service within an existing eating establishment. In 2005, the Boardwalk Restaurant was granted an amendment to the conditional use permit changing some conditions of approval allowing for operations until 2:00 am on Fridays and Saturdays; dancing; up to six musicians with amplified instruments; and a wine cellar within the basement. The limitation in hours was approved at the request of the applicant due to the fact that their business model did not include a large entertainment component. Conditions were imposed to ensure that the eating establishment would operate in concert with the surrounding uses. The conditions that were imposed were intended to mitigate potential impacts created by the use and help to ensure the use would not negatively affect the surrounding community. 31 B-16