AGENDA ITEM SUMMARY February 19, 2019 City Council

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1 Agenda Item 20 AGENDA ITEM SUMMARY February 19, 2019 City Council STAFF Tyler Marr, Senior Project Manager Delynn Coldiron, City Clerk Bronwyn Scurlock, Legal SUBJECT First Reading of Ordinance No. 032, 2019, Amending Article IV of Chapter 3 of the Code of the City of Fort Collins to Create Entertainment District No. 1 EXECUTIVE SUMMARY The purpose of this item is to establish Entertainment District No. 1, located along North College between Jefferson and Pine Street, and along Jefferson Street between College and Linden Street. An entertainment district is a defined area containing no more than 100 acres and at least 20,000 square feet of existing liquor licensed premises. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Entertainment districts define a geographic area wherein liquor licensed establishments may allow patrons to consume alcohol not only within their own premises, but also within additional areas shared in common between the liquor licensed establishments, referred to as common consumption areas. At the November 6, 2018, meeting, Council adopted Ordinance No. 125, 2018 (Attachment 1), which authorized and established a process, application, and broad guidelines for entertainment districts within Fort Collins. An entertainment district is a defined area containing at least 20,000 square feet of existing liquor licensed premises. The City has received its first request to establish an entertainment district. The application is provided as Attachment 2. The location of the proposed Entertainment District No. 1 ( ED1 ) is as follows: Along North College, between Jefferson and Pine Street and along Jefferson Street between College and Linden Street. The proposed Common Consumption and Promotional Association area is limited to the plaza area at 234 North College Avenue and the adjacent tenants to the North and South buildings, commonly known as The Exchange. A map showing both areas is attached (Attachment 3). The liquor licensed premises that make up the proposed ED1 include: Item # 20 Page 1

2 Agenda Item 20 Member Name Address Square Footage of Licensed Premise The Pizza Press The Exchange 214 N. College Avenue #1205 3,790 Vatos Tacos The Exchange 234 N. College Avenue #A2 1,020 Coppermuse The Exchange 244 N. College Avenue #105 3,534 Crooked Stave 216 N. College Avenue # Rodizio Grill 200 Jefferson Street 4,700 Union Bar and Soda Fountain 250 Jefferson Street 8,000 Total Square Footage 24, 311 A notice was sent to property owners within 1,000 feet of the proposed ED1 on February 1. (Attachment 4) The neighborhood meeting was held on February 11, A summary of participant comments is provided as Attachment 5. An earlier neighborhood meeting was held on July 25, 2016 as part of the initial development review of the site, where the concept of an entertainment district was discussed. (Attachment 6) Ordinance No. 125, 2018, also granted the Liquor Licensing Authority (the Authority) the ability to approve a common consumption area, which is an area within an entertainment district that uses physical barriers to close the area to motor vehicle traffic and limit pedestrian access. The Ordinance further granted the Authority the power to certify and decertify promotional associations: those associations that organize and promote entertainment activities within common consumption areas. The liquor licensed premises that are intended to make up the promotional association/common consumption area include: Member Name Address Square Footage of Licensed Premise The Pizza Press The Exchange 214 N. College Avenue #1205 3,790 Vatos Tacos The Exchange 234 N. College Avenue #A2 1,020 Coppermuse The Exchange 244 N. College Avenue #105 3,534 Crooked Stave 214 N. College Avenue #1305 3,267 The Infinite Monkey Theorem 234 N. College Avenue #A3 1,290 Old Town Putt Putt 244 N. College Avenue #105 4,488 Total Square Footage 17,389 There are no square footage requirements for the common consumption area. This information is included for reference. The Crooked Stave, The Infinite Monkey Theorem and Old Town Putt-Putt were not included in the square footage calculation for the entertainment district because they have not yet received a liquor license. An application for the proposed promotional association/common consumption area has been received and includes: Promotional association members; Possible days/hours of operation (currently listed as 7:00 a.m. to 12:00 a.m. daily); Site plan items (security gates, entrances, exits, the common consumption area and the location of promotional association members); and Security plan items (physical security, personnel security and legal safeguards). A copy of the related Security Plan is provided as Attachment 7. The applicant has worked closely with Police Services from District 1 in designing the space proposed for a common consumption area to mitigate potential Item # 20 Page 2

3 Agenda Item 20 problems with ingress, egress, people leaving the area with alcoholic beverages, or distribution to minors. A memo from Police Services supporting both ED1 and the common consumption area is provided as Attachment 8. No impacts to Police Services, beyond what would occur by adding another liquor licensed premise to the City, are anticipated by either ED1 or the common consumption area. Council has the authority to approve or deny each new proposed entertainment district applied for within the City. In the example diagram shown below, the red outline represents the boundaries of an entertainment district, encompassing all of the liquor licensed establishments wishing to form an association. The green rectangle in the middle would be the common consumption area, where alcoholic beverages from any of the establishments could be consumed and most likely some form of entertainment would be delivered (concert, art show, etc.) Alcoholic beverages can only be purchased at one of the establishments; patrons cannot bring in their own alcohol. Although the proposed ED1 requests the inclusion of the Rodizio Grill and The Union, these restaurants will not be part of the proposed common consumption area. They are included to help ensure that The Exchange can meet the required 20,000 square feet of licensed liquor premises. The owner of Rodizio Grill and The Union has provided a letter indicating his support (Attachment 9). This is a way to help ensure the success of The Exchange while benefitting the downtown by providing a new experience that is anticipated to enhance activity and vibrancy of the area. It is possible that a second common consumption area within ED1 could be proposed at a later date that would include Rodizio Grill and The Union; however, nothing is being proposed at this time and those premises were not built with a Common Consumption Area in mind. As currently proposed, no one would be allowed to buy alcohol from Rodizio Grill or The Union and consume it in public spaces outside of those restaurants or within the requested common consumption area. City Council will consider, approve or deny, and place operating restrictions (such as hours of operation) on this potential entertainment district. If Council approves ED1, the Authority will consider the application for the promotional association and common consumption area, and after a hearing, determine whether to certify both. Unless both ED1 is approved by Council and the common consumption area/certification of the promotional association is approved by the Authority, there cannot be consumption of alcohol in any public spaces within these areas. CITY FINANCIAL IMPACTS There are no expected financial impacts to the City organization. Item # 20 Page 3

4 Agenda Item 20 BOARD / COMMISSION RECOMMENDATION In November 2016, staff presented the general concept of entertainment districts to a Super Issues meeting. While no formal recommendation was asked for, there was no serious concern or support voiced at the meeting. PUBLIC OUTREACH A Neighborhood Meeting was held on February 11, (Attachment 5) A Neighborhood Meeting was held July 25, 2016 as part of the Conceptual Review process. (Attachment 7) Staff has also received letters from the Silver Grill and the Greeley Downtown Development Authority in support of these efforts (Attachment 10). Staff has also received s from residents regarding this item (Attachment 11). ATTACHMENTS 1. Ordinance No. 125, 2018 (PDF) 2. Entertainment District Application (PDF) 3. Entertainment District Map (PDF) 4. Neighborhood Meeting Invitation Letter (PDF) 5. Neighborhood Meeting Notes, February 11, 2019 (PDF) 6. Neighborhood Meeting Notes, July 25, 2016 (PDF) 7. Common Consumption Security Plan (PDF) 8. Police Comments regarding The Exchange (PDF) 9. Ryan Houdek Letter of Support (PDF) 10. Greeley DDA and Silver Grill Letters of Support (PDF) 11. s from Residents (PDF) 12. Powerpoint presentation (PDF) Item # 20 Page 4

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16 ATTACHMENT 5 Neighborhood Meeting Notes Entertainment District at The Exchange February 11, 2019 Presentation by City Clerk and Kevin Brinkman, developer of the project. Described what comprises an entertainment district, common consumption area and promotional association. Mr. Brinkman detailed the reasons for requesting the entertainment district. Five neighbors attended the meeting. One neighbor asked why a common consumption area is needed and if there would be a limit to the number of establishments that are liquor licensed in the area. He questioned why Rodizio Grill and Union were included in the District. He did not want people to be able to cross Jefferson (a major highway), with drinks in their hands. Mr. Brinkman noted Rodizio Grill and Union were included in the District to ensure the required 20,000 square feet of liquor licensed properties were in the District. He made it clear people cannot leave the common consumption area with a drink, so no one would be crossing Jefferson with an alcoholic drink. He asked how many entertainment districts exist in Colorado? Mr. Brinkman stated he believed there were five or six. Greeley has a very successful entertainment district and there are two others in Denver. Mr. Brinkman noted he is trying to create something unique to Fort Collins that will attract people to the North College area and help businesses located there. A resident of the condos to the east of The Exchange stated his concern about noise from the common consumption area and asked if amplified music would be allowed? He noted events can create much loud noise. He requested no bands be booked for the area. Mr. Brinkman noted they would comply with all requirements of the City s sound ordinance. Ryan Houdek, owner of Rodizio Grill and Union, stated he allowed his properties to be included in the entertainment district because he wanted to support downtown businesses and he saw this as a positive draw for customers to the North College area. He described the common consumption area as a patio for the abutting restaurants. Meeting ended at 7:35 pm.

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34 ATTACHMENT 11 From: To: Subject: Date: Attachments: Corey Seitz Delynn Coldiron Entertainment District Meeting Monday, February 11, :19:42 AM SKM_224e pdf Hi Delynn, I am an Old Town property and business owner at 123 N College Ave. I will not be able to be at the meeting for the attached Entertainment District. Will you please forward this to the appropriate party and let them know we would encourage and support adding the Entertainment District? Thanks, Corey Seitz Excel Financial Group, LLC From: Excel Scanner <printer@excelfg.com> Sent: Monday, February 11, :15 AM To: Corey Seitz <corey_seitz@excelfg.com> Subject: Message from KM_224e

35 From: To: Cc: Subject: Date: The Welsh Rabbit Delynn Coldiron Nate Wyche Proposed Entertainment District Friday, February 8, :46:19 AM Dear Delynn, I hope this note finds you well and enjoying the cold and snow...finally here! I'm running very fast these days with a number of issues (both good and challenging) running The Welsh Rabbit empire (ha! Cheese Shop and Bistro), but I did want to shoot a quick response back to you and the City Council. First I'll admit that I've never been exposed to the inner workings of this type of districting, so I'm needing to learn a few things. Why the Entertainment District is different from the Common Consumption area? I'm honestly of two minds regarding this request from The Exchange for a common consumption area. On the one hand, I thought that this was a closed matter and earlier requests had been declined? Also, having experienced a few such areas, I've seen the enjoyable side but also the unseemly side as well. On the other hand, if we are indeed seriously considering this, I am concerned that so few stakeholders, namely the owners of The Exchange (and the businesses contained w/in), Rodizio, and Union (which is included in the green outline, but not named). Why not extend the Entertainment District so that others benefit as well? We've historically held a beer and wine license on Pine Street, we have one on Walnut Street (as does John/Silver Grill next door), Jennifer of Scrumpy's across the street from the Exchange (and of course the Colorado-original Beau Jo's)...just to name a few. The partnership between the City, Developers, and Small Business Owners has elevated Old Town so far beyond since when I was a college kid here in 1986! I am grateful for the considered approach to new issues such as this. I hope to be at the Council Meeting, however, I think it is unlikely I will be able to pull away, so I'm hoping this note will serve in my absence. Let me know if you can clarify anything for me, or if I can be of service to you. Kind Regards, Dean

36 H Dean Hines Jr. The Welsh Rabbit Cheese Shop (970) The Welsh Rabbit Cheese Bistro (970) Old Town, Fort Collins, Colorado TheWelshRabbit.com Locally Owned and Operated by 2 Brothers & a Wife since 2011

37 ATTACHMENT 12 February 19, 2019 Entertainment District for The Exchange

38 Purpose Consider approving an Entertainment District for the Exchange Set operating hours, broad guidelines 2

39 ENTERTAINMENT DISTRICT (ED) An designated area of the city that contains at least 20,000 sq. ft. of licensed liquor premises. Each ED must be approved by City Council. COMMON CONSUMPTION AREA (CCA) A designated area where patrons (21) can purchase and consume alcohol from existing licensed liquor premises. Each CCA must be located within an ED. Terminology PROMOTIONAL ASSOCIATION A group of at least two licensed liquor premises who come together for the purpose of applying for a CCA license. CCAs must be certified before they can be licensed. 3

40 Proposed District and Consumption Area 4

41 Additional Information Neighborhood meeting held on 2/11 Notice sent to all tenants within 1000 feet of the Exchange Developer worked closely with District 1 and Liquor Enforcement Team D1 has indicated they have no concerns with this ED application Project was designed with a common consumption area in mind Additional letters/information was included in Council s materials 5

42 Next Steps Licensing Authority April 4, Consider Promotional Association and Common Consumption Area 6

43 Backup Slides 7

44 Security Plans and Measures Security 6 foot security fence Designated entrance and exit gates (automatically locked) Surveillance Hired Code 4 for regular patrols Additional Requirements of Promotional Association Alcohol sold to be consumed outside must be in a disposable cup with establishment name Must ID every alcohol purchaser and provide a wristband Enforce regulations established to customers Remove all beverages from the common area after hours of operation 8

45 Front Entrance Gate & Fencing Security Camera Back Exit Only Gate Back Entrance Gate & Fencing

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47 ED Liquor Licensed Establishments Entertainment District No. 1 Liquor Licensed Establishments Establishment Name Associated Liquor License Establishment Square Footage of Licensed Premises The Pizza Press 214 N. College Suite ,790 Vatos Tacos 234 N. College Suite A2 1,020 Coppermuse 244 N. College Suite 105 3,534 Crooked Stave 216 N. College Suite 130 3,267 Rodizio Grill 200 Jefferson Street 4,700 Union Bar & Soda Fountain 250 Jefferson Street 8,000 Total Square Footage 24,311 11

48 ORDINANCE NO. 032, 2019 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE IV OF CHAPTER 3 OF THE CODE OF THE CITY OF FORT COLLINS TO CREATE ENTERTAINMENT DISTRICT NO. 1 WHEREAS, under Article 3 of Title 44, Colorado Revised Statutes (the Liquor Law ), City Council has the authority, by ordinance, to create individual entertainment districts in the City; and WHEREAS, on November 6, 2018, City Council adopted Ordinance 125, 2018, amending Chapter 3 of the City Code to add a new article allowing entertainment districts; and WHEREAS, an application has been submitted for the creation and approval of Entertainment District No. 1; and WHEREAS, the area comprising Entertainment District No. 1 is more particularly described on Exhibit A attached hereto and incorporated herein by reference; and WHEREAS, as required by the Liquor Law, Entertainment District No. 1 comprises no more than one hundred acres, contains at least twenty thousand square feet of existing liquor licensed premises, and meets all state statutory requirements; and WHEREAS, City Council can impose stricter limits than required by the Liquor Law on the size, security, or hours of operation of the area designated as a common area within Entertainment District No. 1, which is referred to as the common consumption area; and WHEREAS, the City Council believes it is in the best interest of the City to create Entertainment District No. 1, and to impose stricter limits than required by the state law on the hours of operation of any common consumption area within Entertainment District No. 1; and WHEREAS, the Fort Collins Liquor Licensing Authority will be bound by the restrictions as set forth in this Ordinance; and WHEREAS, City staff recommends that the City Code be amended to codify the approval of Entertainment District No. 1 as set forth in this Ordinance; and WHEREAS, the City Council has determined that the proposed City Code amendments that specifically define the location where alcohol consumption may occur and limit the hours of operation for Entertainment District No. 1 will further public health and safety and are in the best interests of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. -1-

49 Section 2. That Sections through in Article IV of Chapter 3 of the Code of the City of Fort Collins shall be designated as Division 1 - General. Section 3. That Chapter 3 of the Code of the City of Fort Collins is hereby amended by the addition of a Division 2 of Article IV, to read in its entirety as follows: Division 2 Approved Entertainment Districts Sec Entertainment District No. 1. (a) There is hereby created Entertainment District No. 1, comprised of approximately 4.68 acres of property located east of College Avenue, northwest of Pine Street, northeast of Jefferson Street, northwest of Linden Street and southwest of the Union Pacific railroad tracks, Larimer County, State of Colorado. A map showing the location of Entertainment District No. 1 is on file in the office of the City Clerk and shall be available for public inspection. (b) No promotional association, nor any agent, manager or employee thereof, may serve, sell or consume any alcoholic beverage within Entertainment District No. 1 between the hours of 2 a.m. and 7 a.m. Introduced, considered favorably on first reading, and ordered published this 19th day of February, A.D. 2019, and to be presented for final passage on the 5th day of March, A.D ATTEST: Mayor City Clerk Passed and adopted on final reading on the 5th day of March, A.D ATTEST: Mayor City Clerk -2-

50 EXHIBIT A PROPERTIES COMPRISING ENTERTAINMENT DISTRICT NO. 1 A parcel of land being a portion of Blocks 6 and 7, and a portion of vacated Pine and Jefferson street, in the City of Fort Collins, as more particularly described in a Special Warranty Deed recorded in the records of the Larimer County Clerk and Recorder on January 5, 2015, at Reception No AND A parcel of land being a portion of Block 7 and a portion of vacated Jefferson Street, in the City of Fort Collins, as more particularly described in a Special Warranty Deed recorded in the records of the Larimer County Clerk and Recorder on June 28, 2016, at Reception No AND Seven parcels of land being portions of Block 14 in the City of Fort Collins, as more particularly described in a Special Warranty Deed recorded in the records of the Larimer County Clerk and Recorder on July 8, 2015 at Reception No

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