Memorandum

City of Lawrence

TO:	City Manager Mike Wildgen
FROM:	David L. Corliss, Assistant City Manager & Director of Legal                                                    Services
CC:	Frank Reeb,  Linda Finger
Date:	March 24 , 2005
RE:	Sidewalk Dining Issue

This memorandum follows up City Commission discussion of sidewalk dining and drinking establishment issues for the downtown area from the March 8, 2005 meeting.

Historic Resources Commission Review

The City’s Historic Resources Administrator has indicated that the Historic Resources Commission (HRC) is going to request a moratorium on the issuance of sidewalk dining licenses and site plan approval until the HRC submits a new proposed set of guidelines for downtown.  A letter from the HRC is expected on this issue.

Food Sales Requirement – Existing Establishments that meet food sales requirements

The City’s zoning code (Section 20-1453) establishes a requirement that licensed premises uses in the C-3 (Downtown) zoning district have food sales of at least 55%.  Several licensed premises existed at the time of enactment continue in operation today.  Staff has identified eight (8) licensed premises that existed at the time of enactment and still likely meet the food sales requirement:  Free State Brewery, Mad Greek, Quinton’s, Mass Street Deli, Teller’s, Rudy’s, Pizza Hut (CMB only), and Vermont Street BBQ (successor to Paradise Café). (La Familia and Buffalo Bob’s have changed use from CMB to Drinking Establishment are now subject to the food sales requirement).  Other licensed premises in the C-3 district at the time of enactment don’t appear to meet the food sales requirement, while other licensed premises established since enactment are required to meet the food sales requirement.

Commission discussion has included altering the zoning code to ensure that the existing “grandfathered” licensed premises meeting the food sales requirement can not go below the 55% food sales requirement.

Commission initiation of a text amendment proposal to the Planning Commission to accomplish this zoning code change would be the first step to formal consideration of this item.

Sidewalk Dining Ordinance Amendments

In response to discussion on amending the existing sidewalk dining ordinance, staff initially provided the following conceptual outline of possible amendments:

Allow any drinking establishment in the downtown area in existence on July 1, 2004, which otherwise qualifies for a sidewalk dining license, to obtain a license without a food sales requirement (or a food sales requirement reduced from the current 70%) if the construction of an outdoor patio/smoking area is not feasible.  Feasibility could be determined by the Commission based on cost or architectural/historic preservation concerns. Under the sidewalk dining law the City is acting as property owner (of the public right-of-way) and can establish reasonable criteria for distinguishing between businesses that seek the use of the right-of-way.  The City can also revoke the license if it determines that such revocation is appropriate. The justification for the 7/1/2004 date is that businesses obtaining licenses after the smoking ban effectiveness could plan and determine the best method, if any, of allowing smoking in an outdoor environment prior to business commencement.   Obviously this proposal can be modified in a number of ways.  Staff does recommend the outdoor smoking be tied to either a drinking establishment license and/or food sales license to continue the prohibition of use of the right-of-way for retail, office, etc. uses.

Staff recommends that additional discussion with interested individuals/property owners takes place to further refine this proposed amendment, including Downtown Lawrence, Inc., interested licensed premises, HRC representation, etc.    Commission direction on the elements of the ordinance amendments will be needed.