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

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Modification to CUP No. 1996-30 August 1, 2011 Page 4 inconsistent with what the City has approved for other businesses in a similar situation. For these reasons, staff recommends that the 1:00 a.m. operating hours for this outdoor patio be left as is. If noise impacts from these businesses become problematic in the future, staff believes the City should then initiate efforts to change the hours consistently for all businesses. Staff notes that changing provisions of CUPs retroactively can be challenging in that these provisions (i.e., the current patio hours) constitute a property right that runs with each CUP. But staff is confident that the City still has adequate tools to affect this change if and when warranted. Finally, a public hearing would be required should the City Council instead prefer to change the outdoor patio hours for this individual business. • Discussed the use of the basement and possible restriction allowing only dining and/or drinks, but with no entertainment. Applicant and PD noted that some servers would be dressed in drag and are, therefore, part of the entertainment. Such a condition would be difficult to abide by, they explained. The Public Safety Committee indicated that this issue may be addressed by the City Council. o Staff Follow-up Response: A public hearing would be required should the City Council wish to add or change this or any other condition of approval. • Discussed electronic identification scanner systems, such as those used at Proof. Also discussed ensuring that patrons younger than 18 needing to exit the establishment by 10:00 P.M. PLANNING COMMISSION ACTION On May 23, 2011, the Planning Commission adopted a resolution approving Conditional Use Permit No. 1996-30 as conditioned by a vote of 7:0 to allow expansion into the basement level and allowing entertainment seven days a week between the hours of 7:00 a.m. to 2:00 a.m. for the Velvet Lounge located at 416 West Fourth Street in the Specific Development No. 84/Transit Zoning Code-Downtown (SD84/Transit Zoning Code-Downtown) zoning district. The Planning Commission added a condition limiting entrance into the establishment after 10:00 p.m. to those persons 18 years of age and older, as outlined in the attached staff report (Exhibit E). 31 B-4