City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00595 3/26/2024 Discussion Item 5.
Proposed Limited Entertainment Permit
File ID: 2024-00595
Location: Citywide
Recommendation: Provide directions to the City Manager on amending the Sacramento City Code chapter 5.108 related to Entertainment Establishments to create a Limited Entertainment Permit.
Contact: Tina Lee-Vogt, Nighttime Economy Manager, (916) 808-2679, [email protected], City Manager’s Office of Innovation and Economic Development; Dustin Hollingsworth, Assistant Director (916) 808-5538, [email protected], Convention & Cultural Services
Presenter: Tina Lee-Vogt, Nighttime Economy Manager, (916) 808-2679, [email protected], City Manager’s Office of Innovation and Economic Development Attachments:
1-Description/Analysis
2-Attachment A - Proposed Limited Entertainment Permit
Description/Analysis
Issue Detail: Sacramento has established rich and vibrant nighttime, social and creative economies, offering world-class amenities for visitors and residents. The city’s social venues provide diverse entertainment experiences and unique programming both day and night that appeal to all ages, backgrounds, and interests. While most of the city’s social venues are in downtown and midtown, there are opportunities throughout Sacramento where people can go to play and socialize. Nightlife is a vital part of the city's economy, culture, and identity, supporting jobs and generating revenue. It is an important incubator of cultural movements and provides spaces for connection, creativity, and personal expression.
In 2003, the Sacramento City Council adopted an ordinance to regulate the operation of entertainment establishments for public health, safety, and welfare. Sacramento had issues with out- of-area promoters who failed to properly manage patrons, resulting in excessive noise and violence.
There were also problems with large and unruly crowds at events in warehouses. These problems prompted the need for the ordinance as lack of regulation threatened health and public safety for the
File ID: 2024-00595 3/26/2024 Discussion Item 5.
surrounding business and residential community. The entertainment permit program successfully addressed many of these issues, however, recent studies indicate that reevaluation to support the city’s current nighttime, social and creative economy objectives is needed. One of the shortfalls of the code is that it does not differentiate between different types and sizes of businesses and events.
Business owners, creatives, and others have expressed concerns that this places an undue burden on businesses and events who want to provide entertainment that would have minimal public impact.
The Office of Nighttime Economy contracted with Responsible Hospitality Institute (RHI) and completed a Sociable City Assessment, an in-depth analysis of our social economy that identified our strengths, challenges, and opportunities. This assessment also provided recommendations for next steps. Additionally, the City’s Office of Arts & Culture commissioned Sound Music Cities to conduct the Sacramento Music Census and Regulatory Review, an in-depth analysis of the local music industry and assessment of how its regulatory environment impacts our live music scene. Although these studies had different intentions, both identified several similar recommendations to improve regulating nightlife and social activities. One of those key recommendations was the creation of multiple levels of entertainment permits.
Based on the assessment and census findings, the Office of Nighttime Economy is collaborating with the Office of Arts & Culture to propose amending the City Code to create a new Limited Entertainment Permit (LEP). This new permit would be an alternative for smaller businesses to provide entertainment without the extensive costs, application process, and requirements that nightclubs and larger establishments follow to obtain the traditional entertainment permit. Currently, most entertainment permit venues are in the central City. This new permit type would reduce barriers for venues along our commercial corridors to increase vibrancy citywide. This would also increase opportunities for musicians and other entertainers to perform, a key need identified in the Sacramento Music Census.
Attachment A provides an outline for the proposed LEP. Some of the criteria being considered for the new permit include:
· Occupancy of 299 or less.
· Entertainment acts as a secondary operation (e.g., restaurant featuring live music). · Maximum performance space of 200 square feet.
· Entertainment ends at 10pm on weeknights and 11pm on weekends.
Staff is using San Francisco’s Limited Live Performance (LLP) permit as a model for a tiered licensing approach. This permit supports businesses that want to offer live performances without undergoing the extensive requirements of traditional entertainment permits. Its streamlined approach benefits businesses that want to enhance their ambiance with live performances but do not want to be a full-fledged entertainment venue. The key features of the LLP include limiting the timing of entertainment to address sound concerns and reduced inspections to simplify processes. According
File ID: 2024-00595 3/26/2024 Discussion Item 5.
to staff from the San Francisco Entertainment Commission, part of what makes the LLP so effective is that it is considered an accessory use for planning/zoning purposes, so it doesn’t require any additional land use approvals. It is generally permitted in commercial/mixed-use zoning districts.
They have had a significant increase in LLP permit applications in the last two fiscal years. They currently have 195 active LLP permits and 20 pending. Most of the LLP permit holders are restaurants, but they also permit shared community spaces, bookstores, coffee shops/cafes, cannabis dispensaries, art galleries, and clothing stores.
Policy Considerations: The proposed limited entertainment permit is supporting the City’s commitment to the nighttime economy and is consistent with the findings and recommendations included in the Sacramento Sociable City Assessment to identify priorities to develop and implement a strategic plan for a safe, vibrant, and well managed social economy. Additionally, it aligns with RHI and Sound Music Cities recommendations to create new categories for entertainment licenses.
Finally, it aligns with Goal 3 of the Creative Edge Cultural Plan, which identifies regulatory relief as a key strategy for creative economy growth and development.
Economic Impacts: Nightlife is a vital part of our economy, culture, and identity. Nightlife supports jobs and generates revenue. Cities that thrive have a vibrant nighttime economy. Studies have shown that live music at bars and restaurants provides significant benefits to the businesses including increasing the length of stay per guest and dollars spent per guest.
Environmental Considerations: This action is not a project that is subject to CEQA because it does not have the potential for causing a significant effect on the environment. (CEQA Guidelines §15061 (b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: The Sacramento Arts, Culture & Creative Economy Commission reviewed the findings of the Sound Music Cities Regulatory Review and passed a motion urging the Council to act on the recommendations - one of which was a tiered permitting system.
Rationale for Recommendation: Staff are requesting directions on whether to proceed with a proposed revision to the Sacramento City Code related to creating a limited entertainment permit.
Financial Considerations: Creating a new entertainment permit type will result in a significant increase in permit applications. Additional staffing will be required to process applications and manage new permits.
Local Business Enterprise (LBE): Not applicable.
ATTACHMENT A
1 LIMITED ENTERTAINMENT PERMIT
PROPOSED NEW ENTERTAINMENT PERMIT TYPE
BACKGROUND
The City of Sacramento Entertainment Permit Program was designed for larger entertainment establishments such as nightclubs and larger live music venues. Smaller establishments such as coffee shops, cafés, and art galleries that may provide entertainment as an accessory use must pay the same fees and comply with the same application and operating requirements as larger establishments. This may prohibit smaller businesses from providing entertainment such as live music and karaoke.
OBJECTIVE
Limited Entertainment Permit (LEP) would allow smaller businesses to provide entertainment without complying with the same costs, application process, and requirements as nightclubs and larger establishments. This would also increase opportunities for live music and other performers.
SCOPE
o Criteria for an LEP:
Occupancy of 299 or less
Entertainment acts as a secondary operation (e.g., restaurant featuring live music).
Performance limited to designated area
Entertainment ends at 10pm on weeknights and 11pm on weekends.
ENTERTAINMENT
o Entertainment allowed with an LEP includes but may not be limited to:
Musician
Band
DJ
Dance performance
Comedy show
Karaoke
o Please see SCC 5.108.040 for entertainment definition
DEFINITIONS
o Limited Entertainment Permit: Permit issued by the City of Sacramento for businesses, where live entertainment is secondary to its main operation. o Performance Space: The specific area within a business setup designated for live performances
ATTACHMENT A
2 ELIGIBILITY
o Current City Business Operations Tax certificate
o Land use zoning allows entertainment as an accessory use
APPLICATION AND APPROVAL PROCESS
o All applications are subject to evaluation and approval from the Community Development, Fire, and Police Departments.