Memorandum

City of Lawrence

Legal Services Department

TO:	David Corliss,  City Manager
FROM:	John Jay Miller, Staff Attorney
CC:	Debbie Van Saun, Assistant City Manager Toni Wheeler, Director of Legal Services Frank Reeb, Administrative Services Director
Date:	March 8, 2007
RE:	Special Use Permits for Establishments with Cereal Malt Beverage or Alcoholic Liquor Licenses

Staff is exploring the viability of creating special use permits for establishments that sell or allow the consumption of cereal malt beverages or alcoholic liquor on their premises. In general, the city has special use permit authority pursuant to K.S.A. 12-755(a) (5).  Special use permits are granted for uses allowed in zoning districts where the use conforms to conditions and standards designed to protect the interests of adjoining property owners and the public. 

While the City has not adopted a special use permit provision specifically related to alcoholic liquor, in 1994 it used its zoning authority to adopt the 55% food sales requirement in the C-3 zoning areas to address concerns regarding the number of businesses in the downtown area devoted to the sale of cereal malt beverages and alcoholic liquor.

Overland Park currently has a special use permit requirement for clubs and drinking establishments that are within 200 feet of residentially owned property.  They have indicated that it is an effective land-use regulation for those areas.  Staff is not aware of any successful legal challenges to the Overland Park code.   Staff is researching whether other cities in the state have similar special use provisions.

At the direction of the City Commission, staff can pursue several alternatives for requiring special use permits for establishments serving cereal malt beverages and/or alcoholic liquor:

· Require special use permits in all zoning districts.

· Require special use permits in specific zoning districts.

· Require special use permits within a certain distance of specific zoning districts (Overland Park model). 

One concern in requiring special use permits would be its application to existing business and legal non-conforming use issues.  Staff is researching the non-conforming issue in conjunction with the ability to issue liquor licenses.

Staff would recommend special use permits as a land-use tool for establishments that sell or allow the consumption of alcoholic liquor or cereal malt beverages.   Upon the direction of the City Commission, staff will present the proposal to the Planning Commission to initiate amendments to the Land Development Code.