Item No.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: IRMA HUITRON, DIRECTOR OF COMMUNITY DEVELOPMENT
DATE: APRIL 23, 2024
SUBJECT: DISCUSSION REGARDING POTENTIAL OPTIONS FOR REGULATING
ESTABLISHMENTS BARS/NIGHTCLUBS AND LIVE ENTERTAINMENT
EXECUTIVE SUMMARY
The City Council will discuss potential options for regulating bars and nightclubs, and establishments that have live entertainment. The intent of this report is to introduce the topic for discussion and staff is seeking the City Council’s direction on which option(s) to research further and bring back for further discussion.
RECOMMENDATION
That the City Council:
Discuss options to regulate bars and nightclubs, and establishments that have live entertainment, Citywide, and provide direction to staff on which option(s) to research further and bring back for consideration.
BACKGROUND
At the January 23, 2024 City Council meeting, the City Council asked staff for a report on the distancing requirements for bars, and establishments that have music or live entertainment.
State Authority to Regulate Bars
The regulation of alcohol outlets by local governments is limited by California’s existing regulatory framework. Upon the ratification of the Twenty-First Amendment, states became empowered to regulate alcohol sales and consumption. California gave exclusive jurisdiction to the state over sale, purchase, and possession of alcoholic beverages. In California, this regulatory authority is vested in the Department of Alcoholic Beverage
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Control (Department), commonly referred to as “ABC”. ABC has the dual responsibility for both the issuance of liquor licenses and the regulation of existing licensees.
ABC issues two broad categories of alcohol licenses:
1. On-sale licenses are issued for businesses that sell alcohol for consumption on the premises, such restaurants are typically Type 41 and Type 47 licenses. Type 41 is for sale of beer and wine, and Type 47 is for sale of beer, wine, and spirits. Bars, are required to have a Type 40 (Issued to bars and taverns) or 48 license (Issued to bars and night clubs). A Type 40 is limited to the sale of beer and Type 48 is for beer, wine and spirits.
2. Off-sale licenses are issued for businesses that sell alcohol for consumption off the site, such as grocery stores, liquor stores, and corner markets.
Because local authority to regulate alcohol sales and related activity is largely preempted by ABC, the challenge that cities face is how to properly regulate the ancillary aspects of alcohol sales without regulating in areas of exclusive state authority. Cities’ land use and police powers function as the effective tools in exercising local control over alcohol sales and its secondary effects.
Local Authority to Regulate Bars and Similar Uses such as Nightclubs
Cities have limited authority to regulate alcohol outlets through their land use and police powers. While ABC has exclusive jurisdiction over the licensing and regulation of alcohol sales, cities can regulate the ancillary aspects of alcohol sales without infringing on ABC’s. The CUP process is the typical process a City uses to regulate businesses to ensure that the operation has adequate protocols, provided as “conditions of approval”, to prevent the business from generating a demand for City services such as police assistance and to prevent adverse impacts to surrounding uses such as noise disturbances and crime. One of the key conditions of approval for businesses serving alcohol is the requirement to develop comprehensive security plans vetted by the Police Department.
Background on regulation of establishments that have music or live entertainment
A CUP is always required for a live entertainment including music use when permitted in the zone. The City’s municipal code does have a 100-foot minimum separation requirement for live entertainment to residential uses. Live entertainment is subject to a conditional use permit and is allowed in the zones listed in table 3.
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ANALYSIS
Number of Bars/Nightclubs Operating in the City
There are approximately twelve (12) businesses operating with a Type 40 or 48 ABC license in the City. Table 1 provides a breakdown of the establishments by City Council District. Attachment A, lists bar establishments located throughout the City.
Table 1
Bar in the City of Downey*
City Council District Number in District
District 1 3
District 2 1
District 3 4
District 4 4
TOTAL CITYWIDE 12
Source: State ABC Website: https://www.abc.ca.gov/licensing/licensing-reports/licenses-by-city/ access on April 15, 2023
*List is under review and is subject to further review and finalization Summary: Downey Licenses: Type 48 – 10; Type 40 - 2
Number of Establishments That Have Live Entertainment including Music
There are approximately 15 locations with live entertainment in the City. Live entertainment is generally defined as the following “ Any exhibition, demonstration, or display upon, or by, any person, or any sound, word, speech, song or other utterance, or any dance, posture, act or other movement, or any music or other sound manually produced from any instrument or article, by any person, in the presence of any audience, which agreeably occupies the mind, or pleasantly attracts, diverts or holds the attention, or is for the amusement, of any person in such audience.” Live entertainment will primarily occur in businesses in Downtown such as bars or nightclubs and includes, but is not limited to: dancing, solo or group performances, singing, and DJ services. Uses that exclusively provide TVs in conjunction with an eating establishment for example is not considered live entertainment.
Bars & Nightclubs – Zoning Requirements
In Downey, a business operating as a bar, exclusively cater to sale of alcoholic beverages and is not required to provide food sales and is therefore is not considered an eating establishment. Nightclubs generally provide music entertainment, dancing, and/or alcohol service. Generally, when permitted by the zoning district as a permissible land use, these are required to obtain a Conditional Use Permit prior to starting its operations.
In Downey, there may be locations that operate as “legal non-conforming” uses that
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commenced operations prior to the City establishing a land requirement to obtain a CUP.
The table below provides a list of various zones in the City, which permit bars and nightclubs. All these zones, require a CUP, when permitted. The locations in Downey are listed in Attachment A.
Table 2
Zoning District – Bar & Nightclub Land Use
Zones C-P C-1 C-2 C-3 C-M H-M DDSP1 DLSP
Land Use: Bars,
taverns, pubs,
micro-breweries
w/food and drink;
Nightclubs
NP NP C C C NP C C2
Notes:
NP – Not permitted
C – Conditional Use Permit
1. Downtown Core, Firestone Blvd Gateway, Paramount Blvd Professional Districts only
2. Downey Promenade side only
Establishments That Have Music or Live Entertainment - Zoning Requirements
A CUP is always required for a live entertainment use, when permitted in the zone. The locations in Downey are listed in Attachment B.
Table 3
Live Entertainment Zones in Downey
Zones C-P C-2 C-3 C-M DDSP DLSP
Restaurants, cafe, coffee
establishments with live
entertainment
C1 C C C
Bar/ Night Club, Live
entertainment C2 C4
1. The Building housing a restaurant shall be a minimum of 100 ft. from the nearest residentially -zoned property
2. Downtown Downey Specific Plan, Districts: Downtown Core, Firestone Boulevard Gateway, Paramount Boulevard Professional
3. Rancho Los Amigos Specific Plan, Sub-districts: Flextech/ Bio-medical, Regional Public Facility, Transit- oriented Development and Community Serving Uses.
4. Downey Landing District: Tierra Luna Market Place
Overview and Community Benefits of the City’s CUP Process
The City CUP process typical takes approximately eight (8) weeks to complete from deeming an application complete. The State ABC process takes approximately ten (10) to twelve (12) weeks, depending on whether the ABC license is a transfer from another business or a new license. ABC advises applicants on their website that certain circumstances often result in a longer waiting period. The State’s and City’s processes can take place concurrently, and the timeline for obtaining a license issued to allow
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operations is dependent upon when the applicant submits to both agencies. The State ABC office will not issue an alcohol license until receiving confirmation that City has provided approvals (i.e. confirmed use is permitted by-right, or obtained a CUP).
One of the key community benefits of a CUP is that in granting a CUP, the Planning Commission may establish conditions that the Commission may consider necessary to ensure that any negative impacts related to a business’ service of alcohol do not impact adjacent properties, or so that the use is not detrimental to the welfare of the community.
The CUP process requires a public hearing before the Planning Commission pursuant to DMC Section 9824, with a minimum 10-day public notice mailed by the City to surrounding properties within a 500-foot radius of the proposed business location. The CUP process also provides the City a mechanism to hold the business accountable for any adverse impacts to the surrounding properties and for any abnormal demand for police services.
For example, DMC 9828 provides a procedure for the orderly and lawful revocation and/or modification of a CUP when the use is being operated in a manner that is detrimental to the public health, safety, welfare, and public convenience or is a public nuisance. The revocation or modification of a CUP would occur at a noticed public hearing per DMC 9804. The City application cost for a CUP is currently: $3,675. As previously mentioned, the CUP process, pursuant to DMC 9824, currently applies to all other businesses located outside of the DDSP and DLSP areas.
Below are options for City Council consideration regarding the regulation for businesses operating as a bar, focused on exclusively on the sale of alcoholic beverages and not operating under the umbrella of an eating establishment, and establishments that have music or live entertainment.
Existing Bars & Nightclubs and Live Entertainment
Option 1. Continue to require a CUP to operate a “bar”, which is generally associated with a Type 40 (On-Sale Beer / Issued to bars and taverns) or Type 48 (On-Sale General, Public Premise / Issued to bars and nightclubs) ABC license and for nightclubs and live entertainment. No change required in the zoning code.
Establish Buffer Zones
Option 2. Establish an Ordinance to create “Buffer Zones” for a business that operate as a bar, focusing on the exclusive sales of alcohol beverages, nightclubs and live entertainment uses.
This is a method of regulating uses from locating near sensitive uses and to prevent an overconcentration in one vicinity. The City’s municipal code does have a separate requirement for live entertainment and adult oriented uses to residential uses, 100-feet and 500-feet respectively. The City could also create "buffer zones", prohibiting these uses from being within a specified distance of schools,
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day cares, and other bars and also a separation distance from one bar to another.
These buffer zones can range from 250-feet to 1,500-feet from sensitive uses and other bar locations.
Staff recently surveyed other City’s with commercial business districts, to understand how other cities may approach a buffer zone for bars. The following provide a summary of the survey. If buffer zones are a preferred option then staff can continue to research and survey other buffer distances that may be appropriate for nightclubs and live entertainment.
Table 4
Survey of Other Cities Separation Requirement for Alcohol Uses City Separation Requirement
Fullerton No separation distance requirement
Seal Beach 100-foot separation requirement to sensitive uses Santa Ana 1,000-foot separation requirement to sensitive uses Alhambra No separation distance requirement
Whittier 300-feet from a commercial recreation use; and 150- feet to a residential zone
Bellflower No separation distance requirement
Orange No separation distance requirement
Source: City Staff Phone/On-line Survey in April 2024
Possible Discussion Topics:
• Buffer zones applicable to “bars, nightclubs, and live entertainment” in future mixed-use developments
Existing bars, nightclub, and live entertainment uses not meeting any new criteria established could be to allowed to operate under a “legal, non-confirming” land use per regulations set forth in DMC 9410, which would allow the use to continue until the use has ceased for a period of 180 days, and/or other terminating factors set forth in the code.
If this option is selected, City staff will prepare an Ordinance, specifying requirements for bars within and without live entertainment. The Ordinance requires review and a recommendation by the Planning Commission which would be forwarded to the City Council for final consideration.
Prepare Specific Operational Regulations Pertaining to Bars, Nightclubs and Live Entertainment
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Option 3. City staff can research and provide recommendations for developing “best practices” that provide operational and performance requirements and guidelines in order to streamline the review processes. Examples of these topic areas would be: hours of operation, lighting, security measures, sound attenuation, noise monitoring services, to name a few.
Option 4 – Modify Zoning Regulations
Explore zoning regulations that would limit the zoning districts in which the zone in which “bars, nightclubs and live entertainment” uses are allowed. City staff would research zoning districts and options for limiting the use in one or more zones.
If this option is selected, City staff will research and prepare its findings to the Planning Commission for review and the Commission’s recommendation will be forwarded to the City Council for final consideration.
Option 5 – No Changes
Bars, nightclubs and live entertainment uses when allowed by the zone, would continue to require a CUP as specified by the zone; no separation or buffer zones required, no operation or performance standards required. No changes to the municipal code, no new Ordinances, no buffer zones, no changes to zoning districts. State law still applies which prohibits the sale of flavored tobacco.
Timeline for Option 2, 3 and 4
The research and Ordinance preparation and review process would take approximately six to twelve months.
CITY COUNCIL PRIORITIES
Quality of Life, Safety & Infrastructure
Efficiency & Adaptability
Public Engagement
FISCAL IMPACT
There is no fiscal impact.
ATTACHMENTS
Attachment A: List – Bars/Nightclubs
Attachment B: List – Live Entertainment
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Attachment A
The following is a list of each location, address, City Council district and corresponding zoning district designation.
Bars/Nightclubs Operating in the City of Downey*
by City Council and Zoning District
Name of Business Address Council
District
Zoning
District
1 STARDUST CLUB 7643 FIRESTONE BLVD 3 C-2
2 ANARCHY LIBRARY 13250 WOODRUFF AVE 1 C-1
3 GLEN THE 7356-58 STEWART & GRAY RD 2 C-1
4 CLUB DB LOUNGE
(TYPE 48) 8206 8210 8212 FIRESTONE BLVD 3 DDSP- Firestone Gateway
5 J C TAVERN 9106 TELEGRAPH RD 4 C-2
6 GUARDSMAN
LOUNGE 7850 FLORENCE AVE 3 C-1
7 SAME OL' SALOON 9560 FIRESTONE BLVD 4 C-2
8 BELLA LOUNGE 11002 DOWNEY AVE 4
DDSP-
Downtown Core
9 LOVEFOOL BAR 9067 IMPERIAL HWY 1 C-2
10 KELLEY'S 8148 FIRESTONE BLVD 3 DDSP- Firestone
Gateway
11 CASA BLANCA BAR 8744 IMPERIAL HWY 1 C-2
12 JUNCTION/HOPS,
THE 9370 TELEGRAPH RD 4 C-2
CITYWIDE TOTAL * 12
Source: State ABC Website: https://www.abc.ca.gov/licensing/licensing-reports/licenses-by-city/ access on April 15, 2023 *List is under review and is subject to further review and finalization
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Attachment B
The following is a list of each location with live entertainment.
LOCATION NAME Council
District
1 9106 Telegraph Rd J C Tavern 4
2 11032 Downey Ave Joseph's Bar & Grill 4
3 11010 Paramount Blvd La Barca Grill & Cantina 3
4 8148 Firestone Blvd Latin X Ent Dba Kelley's 3
5 11018 Downey Ave Mambo Grill 4
6 8104 Firestone Blvd Mariscos Choix 3
7 7356 Stewart & Gray Rd The Glen 2
8 9370 Telegraph Rd The Junction Bar 4
9 9067 Imperial Hwy The Shuttle 1
10 7643 Firestone Blvd. Star Dust Club 3
11 7639 Firestone Blvd El Salto Del Fraile 3
12 9560 Firestone Blvd. Same Ol’ Saloon 4
13 8060 Florence Las Palmas Coco Bongo 3
14 8860 Apollo Way Bar Louie 1
15 8350 Firestone Blvd Ojos Locos 4
CITYWIDE TOTAL * 15
*List is under review and is subject to further review and finalization
Summary:
District 1 – 2; District 2 – 1; District 3 – 6; District 4 - 6