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07-1172council File # 07 ?a Green Sheet # 3047054 �� Presented by OF S?�iNT PAUL, MINNESOTA WHEREAS, thY�t,egislative Hearing Officer recommends that a request to add (ID # 20060000425) Cabaret — Class A license to the existing Restaurant (B) — more than 12 seats and Sidewalk Cafe licenses for Gladstone Stenson, President, Davanni's Inc., doing business as Coffee Bene at 53 Cleveland Avenue South be approved with the following conditions: 1. Entertainment shall be discontinued no later than 930 p.m. on Sunday through Thursday and 11:00 p.m. on Friday and Saturday. 2. The number of entertainment performances shall not exceed twelve (12) in any calendaz month. THEREFORE, BE IT RESOLVED that the Council of the City of Saint Paul hereby approves this license application. Yeas Nays Absent Benanav � Bostrom ,/ Harris f Helgen ,/ Lantry � Montgomery ,/ Thune ,/- 7 Li Adopted by Council: Date j �//.��' /��/�7 Adoption Certified by Council Secretary BY� // /,/�! �%/l_S�v7 Approvedb yor: Date 'L" g � � Requested by Department oE � Form Approved by CiTy Attorney � Approved by Mayor for Submission to Council � � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � � ���� 7a' co �o��>> ConWct Person 8 Phone: Marcia Mcertnond 266-8570 Must Be on Council Agentla by (Date) 12-DEC-07 Doc.Type: RESOLUTION E-DOCUment Required: Y Document Contact Jean Biricholz Contact Phone: 266-8673 04-DEC-07 � Assign Number For Routing Order Total # of Signature Pages _(qip All Locations for Signature) Green Sheet NO: 3047054 0 ouncH 1 onncil De arhnen[ D'uector 2 ' Clerk Ci C1erk 3 4 5 Approving the license application wi[h conditions per the Legislative Heuing Officer for a Cabaret - Class A license for Gladstone Stenson, President, Davanni's Inc., doing business as Coffee Bene, 53 Cleveland Avenue South. Planning Commission 1. Has this person/firm ever worked under a contract for this department? CIB Committee Yes No Civit Service Commission 2. Has this person/flrm ever been a ciry empioyee? Yes No 3. Does this person/firm possess a skill not normally possessed by any current city employee? Yes No F�cplain ali yes answers on separate sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Advantages If Approved: Disadvantages If Approved: Disadvantages If Not Approved: TransaMion: Funding Source: Financial Information: (Explain) Activity Number. CosURevenue Budgeted: December 4, 2007 3:52 PM Page 1 LICENSEHEARiNGMINUTES D������- Coffee Bene at 53 Cleveland Avenue South Thursday, November 15, 2007, 2:00 p.m. Room 330 City Hall, 15 Kellogg Boulevazd West Marcia Moermond, Legislative Hearing Officer The hearing was called to order at 2:07 p.m. Staff Present: Jeff Fischbach, Department of Safety and Inspections (DSI); and Jean Birkholz, Council Research Others Present: John Barrett, vice president of operations, Davanni's Inc; Molly Krueger, manager, Coffee Bene; and Jim Nuessle, neighbor Coffee Bene: Add Cabaret -Class A license to the exisring Restaurant (B)-more that 12 seats and Sidewalk Cafe licenses Ms. Moermond stated that this license application is for a Class N License which requires neighborhood notification. Other Class N Licenses include: entertainment, liquor, auto sales, etc.—things that have an immediate impact on their neighbors. The City received one letter of concern to the issuance of this license which means that a Legislative Hearing was necessary. Ms. Moermond stated that there are three (3) possible outcomes from today's hearing: 1) she could recommend to the City Council that they issue this business license without any conditions; 2) she could recommend to the City Council that they issue this license with conditions; and 3) she couid recommend to the City Council that they send this matter to an administrative law judge. That option would be used in the event that there aze conditions that she thinks are necessary that the applicant won't agree to or that she thinks that no matter what conditions are attached, this license will not work out at this location. Ms. Moermond will begin with a staff report. Staff will be asked to explain their review of the application and will also explain their recommendation. Then, she will ask the applicant to talk about the business plan. Next, she will address the concerns raised in the letter of concern. Finally, Ms. Moermond will make a recommendation which will be presented to the Ciry Council. Jeff Fischbach, Department of Safety and Inspections (DSI), reported that no correspondence was received from the district council. Licensing and zoning have recommended approval; there are no other inspection requirements. DSI recommends approval of this application with no conditions. Mr. Barrett stated that Davanni's Pizza and Hot Hoagies has been on the corner for 32 years. About two (2) yeazs ago, Davanni's Inc. purchased the commercial property, including the space with Play It Again Sports. When Play It Again Sports decided to move on, Davanni's decided to expand and redecorate the restaurant, but didn't need all the extra space. The space that was left was ideal for a coffee shop and it has proven to be the case. The coffee shop has been in operation since February, 2006. Ms. Moermond asked Mr. Barrett how they would use the cabaret license. Mr. Barrett responded that they have already had occasional entertainment. They aze allowed up to a dozen within a year and are interested in expanding it to include more nights; primarily, Friday nights until 11 p.m. and some Saturdays until 8 pm. Ms. Krueger explained that they have mostly acoustic entertainment: vocal and guitar, small vocal groups, single instruxnentalists, etc. Their rule for loudness is that if they can't hear themselves talk to a customer at the counter, the music is too loud; very mellow but a lot of fun. 0 �-1/7a�-- Mr. Fischbach reported that with this license, they cannot move the entertainment to the outside cafe. Mr. Barrett stated that the outside cafe is on Cleveland, with some tables also out back, adjacent to the pazking lot. Ms. Moermond asked if they planned to offer entertainment in the other portion of their space. Mr. Barrett responded that they plan entertainment only for the coffee shop. Mr. Fischbach reported that this license is limited to Coffee Bene. Mr. Jim Nuessle had written a letter of complaint and testified that he and his wife think that Davanni's and Coffee Bene has been a great neighbor. They have also put a lot of money into the property, making it look 100 times better than it had in the past. They have also enjoyed the entertainment at Coffee Bene. He and his wife are concerned that the entertainment may be expanded too much in the future. They think that perhaps there should be restrictions on the size of the groups, type of groups, instrumental just vocal, days of the week and hours of the day. He stated that he called DSI and spoke with Reid Soley, who said that currently, there would be no restrictions; there would be nothing to stop Coffee Bene from being open 24 hours a day and even having entertainment 24 hours a day. Currently, he and his wife maintain three (3) residential parking permits to help secure a spot in front of their own home. They know those spots won't be available if entertainment is permitted every night of the week. The City is very good about ticketing; however, there are different people each night. Mr. and Ms. Nuessle are also concerned about the additional traffic this might create and also about drunks wming to Coffee Bene to sober up. Ms. Moermond asked the hours of Davanni's operation. Mr. Barrett answered that the restaurant is open until midnight Sunday through Thursday; 1 a.m. on Fridays and Saturdays. It opens at 10:30 a.m. Ms. Krueger responded that Coffee Bene is open until 10 p.m. Sunday through Thursday; until 11 p.m. on Fridays; and 9 p.m. on Saturdays. Ms. Moermond asked how many entertainment events they envision for the future. Mr. Barrett responded that when they first opened, they envisioned a different model of a coffee shop, but their business has expanded into the night. They offer WiFi and frequently have students work at their laptops. They have had entertainment only on Friday and Saturday evenings, which had been slower nights for the coffee shop. It has helped to bring in customers. He does not envision expanding more nights of the week or later hours. Ms. Moermond asked Mr. Nuessle if Friday and Saturday parking has been an issue for the neighbors. Mr. Nuessle repiied that there are always some issues, but they haven't been noticeably different from any other day. The ticket writer for Saint Paul is there every night writing tickets on Lincoln. Ms. Moermond noted a couple of her thoughts on conditions for the license. She would like to restrict the end time for entertainment but she would like to plan some buffer to a11ow room for expansion that may occur at a later date. She feels that 11 p.m. is quite reasonable for a Friday night. 5he is trying to provide conditions that don't restrict their current activities which have been successful and aze not causing problems. She wants to take in account Coffee Bene's future and at the same time, provide assurance to the neighbors that this will not be a 24 / 7 thing — that it won't prevent the neighbors from sleeping well. d� Ms. Moermond asked how many off=street pazking spaces there were in the back. Mr. Barrett responded that there aze approximately 24 spaces. Ms. Moermond noted that she hates to regulate entertainment when it is a coffee shop environment and when they haven't had a history of performing badly on this, and they would be subject to the noise ordinance if they did perform badly. The Saint Paul Police would come and investigate a noise violation and deal with that. Mr. Fischbach added that if noise became a repetitive problem with the police going there on a noise violation and they found a violation, DSI would be dealing with that. In the case of bazs and restaurants, DSI works hand in hand with the police. Ms. Moermond asked how many nights do they plan to have entertainment. Mr. Barrett replied that currently, they plan on only rivo (2). They aze drawing a safe and welcomed clientele that enjoys a cup of coffee and a non-baz atmosphere. That has been a surprising success. It doesn't lend itself to loud, driving music. ThaYs not their gig, nor do they wish it to be. Ms. Moermond recommended approval with the following conditions: l. Entertainment shall be discontinued no later than 930 p.m. on Sunday thru Thursday, and 1 I:00 p.m. on Friday and Saturday. 2. The number of entertainment performances shall not exceed 12 in any calendar month. The hearing was adjourned at 2:53 p.m. /jab