City of Lawrence, Kansas

Memo

To:      Mike Wildgen, City Manager; Debbie Van Saun, Assistant City Manager; Dave Corliss, Assistant City Manager

From: Brad Hoff, Management Assistant

Date:  1/15/2004

Re:      Downtown Lawrence drinking establishments

At the request of the City Commission, the following memo examines the history of the 55% food sales requirement in the C-3 zoning area and includes information on what selected cities with a major university are doing to regulate drinking establishments in their downtown area.  Finally, this memo includes data on the number of drinking establishments in the C-3 zoning area, and how many of these are “grandfathered,” which exempts them from meeting the 55% food sales requirement.

History

On December 7, 1993, the Lawrence City Commission initiated a zoning text amendment focused on a food sales requirement for those establishments that serve alcohol in the C-3 zoning area.  At this meeting, the Lawrence City Commission stated that it would be the goal of the zoning ordinance to prohibit the downtown area from having a substantial amount of businesses devoted solely to liquor sales.  After receiving comment from the Planning Commission, the Lawrence City Commission, on March 29, 1994, directed staff to prepare an ordinance establishing limits on drinking establishments in the C-3 zoning area with a 55% food sales requirement.

Ordinance 6527, passed on April 12, 1994, requires alcohol licensed establishments to have food sales not less than 55% of all gross receipts for a calendar year from sales of food and beverages on the premises.  Ordinance 6527 has been interpreted to apply to future establishments in the C-3 zoning area, while existing bars and restaurants would be “grandfathered,” and not required to meet the 55% food sales rule.  For purposes of this ordinance, the term "grandfathered" includes any licensed premises that existed on the effective date of the ordinance (April 1994) (e.g., Louise's, Harbour Lights, Mass. Street Deli).  The term also includes a drinking establishment or a cereal malt beverage retailer that received its license after the effective date of the ordinance for sales at the same location of an establishment that was “grandfathered” on the effective date of the ordinance (e.g., Its Brothers, Eight One Five), provided this newer establishment began operations within six months of the closing of the previously “grandfathered” establishment.   

Research of Selected Cities

Selected cities with a major university were contacted and asked if they have any policies to help limit the number of drinking establishments in their downtown area.

The City of Norman, Oklahoma (University of Oklahoma) currently allows any legitimate restaurant (defined as receiving more than 50 percent of its gross receipts from the sale of food items) to obtain a liquor license.  If the establishment is not a restaurant or is unable to meet the 50% requirement, it is defined as a bar or nightclub, and must be approved by the Council as a special use.  In doing so, this approval process does give the Council the opportunity to examine compatibility and uses in the area.

The City of Lincoln, Nebraska (University of Nebraska) does not have any requirements to limit the number of drinking establishments downtown.  There is a state law in Nebraska that prevents an establishment serving alcohol from locating within 300 feet of university property.

The City of Austin, Texas (University of Texas) requires establishments who wish to serve alcohol to obtain a conditional use permit.  This, however, does not limit the number of drinking establishments in the central business district zoning area.  City officials did state that a drinking establishment is prohibited from being located within 300 feet of a church, public school, or public hospital unless a waiver is granted.

The City of Manhattan, Kansas (Kansas State University) does not have any regulations to limit the number of bars, only their distance from a school.  In Manhattan, there is a separate commercial district, Aggieville, which houses numerous drinking establishments.  In addition, it was stated that downtown Manhattan has a few drinking establishments, but nothing that would constitute a proliferation.    

The City of Madison, Wisconsin (University of Wisconsin) developed a Work Group on Downtown Alcohol Issues that was formed to study and address issues related to the over-consumption and abuse of alcohol, along with the proliferation of drinking establishments in the downtown/Isthmus area.  The Work Group forwarded numerous recommendations to the Mayor, Common Council, and Alcohol License Review Committee.  At present time, the City of Madison is sending the Work Group’s full report and recommendations via postal mail to the City of Lawrence, and attempts are being made to gather additional information relating to what, if any, recommendations have been enacted.

Downtown Lawrence Drinking Establishments

As of January 15, 2004, there are 46 establishments with a license to sell alcohol located in the downtown Lawrence C-3 zoning area.  Two have caterer’s license, which allows them to sell alcohol off their premises.  This leaves 44 establishments that have a drinking establishment license or a cereal malt beverage license.  Below is a table that shows how these establishments are classified.

Table 1: Number of Drinking Establishments by Classification

 

 

 

Classification
   Number

Percentage

"Grandfathered" Drinking Establishment License

    27

61.4%

Drinking Establishment License

    14

31.8%

"Grandfathered" Cereal Malt Beverage License

      2

4.5%

Cereal Malt Beverage License

      1

2.3%

Total Number of Alcohol Licensed Establishments

     44

100.0%

 

 

 

 

 

 

 

As the data shows, there are a total of 29 (66%) drinking establishments that are “grandfathered” and do not need to meet the 55% food sales requirement. 

Attached to this memo is a timeline showing when each establishment, currently located in the C-3 zoning area, first received a license to sell alcohol under their present name.  In addition, there is a directory listing the Downtown Lawrence drinking establishments and their addresses, along with a C-3 zoning map that plots their location.  Please note that the map does show three locations that are classified as pending.    PepperJax Grill at 947 New Hampshire, Masonic Lodge Building at 1001 Massachusetts, and Qdoba’s at 947 Massachusetts, have each indicated that they would be applying for a drinking establishment license.

Please let me know if any additional information is needed.

 

 

 

 

 

 

 

Attachments:

A) Timeline

B) Directory of C-3 Zoning Drinking Establishments with Map

C) Minutes of December 7,1993 City Commission Meeting

D) Minutes of January 26, 1994 Planning Commission Meeting

E) Minutes of March 29, 1994 City Commission Meeting

F) Ordinance 6527 (adopted April 12, 1994)