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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/16/2018 - FIRST READING OF ORDINANCE NO. 125, 2018, AMENDINGAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY October 16, 2018 City Council STAFF Tyler Marr, Policy and Project Analyst Bronwyn Scurlock, Legal SUBJECT First Reading of Ordinance No. 125, 2018, Amending Chapter 3 of the Code of the City of Fort Collins to Add a New Article IV Regarding Entertainment Districts. EXECUTIVE SUMMARY The purpose of this item is to consider an Ordinance establishing City Code provisions that allow City Council to adopt Entertainment Districts and granting the Liquor Licensing Authority the authority to approve and regulate Promotional Associations and Common Consumption Areas within Entertainment Districts. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION This Ordinance authorizes and establishes 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. City Council first discussed this issue in the fall 2016 and staff has incorporated that feedback into this Ordinance and associated process. Additionally, it will grant the Liquor Licensing 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. Further, the Ordinance must grant the Authority the power to certify and decertify promotional associations, those associations that organize and promote entertainment activities within common consumption areas. After Council’s adoption of such an Ordinance, Council would then have 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.) Agenda Item 6 Item # 6 Page 2 Alcoholic beverages can only be purchased at one of the establishments; patrons cannot bring in their own alcohol. Council Control City Council will consider, approve or deny, and place operating restrictions (such as hours of operation) on each potential entertainment district within the City subsequent to establishing the process and application as presented in this Ordinance. Staff is aware that things such as safety, neighborhood noise, and consumption of alcohol by minors are serious concerns for Council and the processes for both the entertainment districts and the common consumption areas have taken this into consideration. Applicants will be required to submit two applications simultaneously, one for the entertainment district and one for the common consumption area. Council will consider the entertainment district application in conjunction with a staff recommendation, which will identify the size of the entertainment district, requested hours of operation, types and estimated numbers of planned events. For public outreach, staff will require a notice to be sent to nearby property owners and a neighborhood meeting to be held. Council can impose restrictions on the size and hours of operation of each entertainment district as it sees fit. Subsequent to Council approving an entertainment district, the Authority would consider the application for the common consumption area, which would include specific details on the backgrounds of each liquor license holder within the entertainment district, detailed plans that have been reviewed by Police Services on ingress and egress, plans to keep alcohol from minors, and a needs and desires assessment garnered through additional public outreach of the surrounding neighborhood as is currently done for other liquor licenses. This process would include the posting of notifications that there is a pending application for a promotional association and common consumption area and it would be expected that the applicant petition the neighborhood to establish needs and desires of the neighborhood. Neighbors within a one-mile radius and parties-in-interest are also able to attend the hearing to make their case if they disagree or support the approval of the common consumption area or certification of the promotional association. Upon decision, the Authority would have the ability to consult with Police Services during the hearing to determine if the common consumption area should be approved and if the promotional association of the various owners should be certified. Unless both the entertainment district were approved by Council and the common consumption area/certification of the promotional association were approved by the Authority, there could not be consumption of alcohol in any public spaces within these areas. Once certified and operational, the promotional association would be responsible for what occurs within the common consumption area that is separate from individual liquor-licensed-establishments. The promotional association would need to be recertified each year by the Authority. If there is a liquor violation, there would be a show cause motion and/or hearing to determine liability. Agenda Item 6 Item # 6 Page 3 CITY FINANCIAL IMPACTS There are no expected financial impacts to the City organization. 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 This Ordinance establishes a process that will rely on public outreach to make decisions of approval for both entertainment districts and common consumption areas. ATTACHMENTS 1. Work Session Summary, August 30, 2016 (PDF) ATTACHMENT 1 -1- ORDINANCE NO. 125, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 3 OF THE CODE OF THE CITY OF FORT COLLINS TO ADD A NEW ARTICLE IV REGARDING ENTERTAINMENT DISTRICTS WHEREAS, under Article 3 of Title 44, C.R.S. (“the liquor law”), an entertainment district is an area comprised of no more than one hundred acres containing at least twenty thousand square feet of existing liquor licensed premises; and WHEREAS, pursuant to the liquor law, in order to allow entertainment districts to exist in the City, the City Council must adopt a local ordinance; and WHEREAS, the City Council can impose stricter limits than required by the liquor law on the size, security, or hours of operation on the common consumption area within an entertainment district; and WHEREAS, the liquor law requires that a certified promotional association operate a common consumption area within an entertainment district and authorizes the attachment of liquor licensed premises to the common consumption area; and WHEREAS, the liquor law also requires that, to qualify for certification, the promotional association must have a board of directors, follow a specific set of statutory guidelines, and be approved by the local Liquor Licensing Authority (the “Authority”); and WHEREAS, the Authority may refuse to certify or may decertify a promotional association within a common consumption area for specific reasons as set forth in the liquor law; and WHEREAS, the Authority may also similarly deauthorize or refuse to authorize or reauthorize a licensee’s attachment to a common consumption area for specific reasons as set forth in state statute; and WHEREAS, this Ordinance establishes City Code provisions that set out the entertainment district process and requirements and grants the Authority the ability to approve common consumption areas, to authorize, refuse to authorize or reauthorize the attachment of licensed premises to common consumption areas, to certify and decertify promotional associations, and to designate the location, size, hours of operation and security of common consumption areas; and WHEREAS, the Authority will be bound by the restrictions as set forth in this Ordinance; and WHEREAS, City staff recommends that the City Code be amended as described in this Ordinance; and -2- WHEREAS, the City Council has determined that the proposed City Code amendments are in the best interest 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. Section 2. That Chapter 3 of the City Code is hereby amended by adding a new Article IV to read as follows: Article IV. Entertainment District. Sec. 3-101. Purpose. The purpose of this Article is to recognize the City Council’s authority to create entertainment districts in the City and to allow the Authority to approve and regulate promotional associations and common consumption areas within entertainment districts. Sec. 3-102. Incorporation of state law. The provisions of Article 3 of Title 44, C.R.S., and any rules and regulations promulgated thereunder are incorporated herein by reference except to the extent that more restrictive or additional regulations are set forth in this Article. Sec. 3-103. Definitions. Common consumption area shall mean an area designated as a common area in an entertainment district approved by the Authority that uses physical barriers to close the area to motor vehicle traffic and limit pedestrian access. Promotional association shall mean an association that is incorporated in the State of Colorado to organize and promote entertainment activities within a common consumption area, and is organized or authorized by two (2) or more people who own or lease property within said entertainment district. Sec. 3-104. Creation of entertainment districts. (a) The City Council may, by ordinance, create individual entertainment districts in the City. (b) City Council may impose stricter limits than required by state law on the size, security or hours of operation of any common consumption area within an entertainment district. -3- (c) City Council may, by ordinance, modify the limits imposed by Council on an entertainment district. Sec. 3-105. Liquor Licensing Authority. (a) The Authority shall be authorized to certify and decertify promotional associations, allow the attachment of licensed premises to common consumption areas, and impose reasonable restrictions on promotional associations and common consumption areas as authorized by state law. (b) The Authority will notify the City Council upon decertification of a promotional association if there is no new promotional association application filed with the City Clerk in accordance with the Authority’s rules and regulations, or upon entry of an order that effectively eliminates the common consumption area. (c) The City Council may, by ordinance, eliminate an entertainment district if the Authority decertifies the promotional association or enters an order that effectively eliminates the common consumption area. Sec. 3-106. Application. All applications for a common consumption area, certification and recertification of a promotional association, and attachment by a liquor license to a common consumption area of a certified promotional association shall be filed with the City Clerk. All forms must be complete, including all exhibits that may be required to be attached in accordance with local requirements. Incomplete or erroneous applications will be rejected. Sec. 3-107. Administrative procedural regulations. The Authority is authorized to promulgate such procedural rules and regulations as are necessary to effectuate the implementation, administration and enforcement of this Article, subject to any conditions or limitations imposed by Council, as provided in § 3- 104(b). -4- Introduced, considered favorably on first reading, and ordered published this 16th day of October, A.D. 2018, and to be presented for final passage on the 6th day of November, A.D. 2017. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 6th day of November, A.D. 2018. __________________________________ Mayor ATTEST: _____________________________ City Clerk