On June 5, 2019, at the request of Commissioner Michael Gongora, the City Commission referred the subject item to the Land Use and Development Committee for discussion (item C4S). The item was placed on the July 24, 2019 Land Use and Development Committee (LUDC) agenda and deferred to September 18, 2019.

On September 18, 2019, the item was deferred to the December 3, 2019 LUDC meeting.  The December 3, 2019 LUDC was cancelled, and the item was moved to the January 21, 2020 agenda of the newly created Land Use and Sustainability Committee (LUSC).  On January 21, 2020 the item was deferred to the February 18, 2020 LUSC meeting.

On February 18, 2020, the item was briefly discussed and continued to the May 26, 2020 LUSC meeting.  On May 26, 2020 the item was deferred to June 30, 2020.

BACKGROUND
We Work Offices, which have two locations in the City, seek to provide free beer and wine for their office tenants; each of these locations have an occupant content that exceeds 300 persons. Additionally, by serving beer and wine, this office use also meets the technical definition of an alcoholic beverage establishment.

Under section 142-1361 of the city code, an alcoholic beverage establishment that has an occupant content exceeding 300 persons is considered a neighborhood impact establishment (NIE). Establishments meeting NIE thresholds require Planning Board approval for a CUP.

PLANNING ANALYSIS
The NIE regulations in section 142-1361 were designed to address alcohol uses such as destination restaurants, bars, nightclubs and entertainment establishments. These regulations were not intended to apply to office uses that provide free beer and wine to tenants on occasion.

The following is a potential amendment to Chapter 142, Article V, Divisions 6 of the LDR’s, to create an exception from the definition of an NIE, for office uses only, which are not operating as an entertainment establishment or dance hall, from the definition of neighborhood impact establishment (NIE):

DIVISION 6. – ALCOHOLIC BEVERAGE AND ENTERTAINMENT ESTABLISHMENTS

Sec. 142-1361. - Definitions.
For the purpose of this division, the following terms, phrases and words shall have the meaning given in this section:

After-hours dance hall means a commercial establishment where dancing by patrons is allowed, including, but not limited to, restaurants and entertainment establishments, which by its nature as an establishment not licensed or operating as an alcoholic beverage establishment, is not subject to the regulations on hours of sale for alcoholic beverage establishments contained in section 6-3 of this Code.

Entertainment means any live show or live performance or music amplified or nonamplified. Exceptions: Indoor movie theater; big screen television and/or background music, amplified or nonamplified, played at a volume that does not interfere with normal conversation.

Neighborhood impact establishment means:
(1) An alcoholic beverage establishment or restaurant, not also operating as an entertainment establishment or dance hall (as defined in section 114-1), with an occupant content of 300 or more persons as determined by the chief fire marshal; or
(2) An alcoholic beverage establishment or restaurant, which is also operating as an entertainment establishment or dance hall (as defined in section 114-1), with an occupant content of 200 or more persons as determined by the chief fire marshal.
Notwithstanding the above, an office use, not also operating as an entertainment establishment, where the self-service of beer and/or wine is offered for consumption on the premises only, and only for office employees and office clients, shall not be considered a neighborhood impact establishment, regardless of occupant content.

Open air entertainment establishment means a commercial establishment which provides entertainment, as defined in this section, indoors or in an enclosed courtyard or area which by its design is open to the outside, thereby enabling the entertainment to be audible outdoors.

Outdoor entertainment establishment means a commercial establishment which provides outdoor entertainment as defined in this section.

The aforementioned modification is not expected to have an adverse impact on surrounding properties, as large offices are primarily located in commercial districts. Additionally, the serving of alcohol would be limited to existing office occupants only.