Title
Conduct a Public Hearing to Consider/Discuss/Act on the Apparent Noncompliance with an Approved Specific Use Permit for a Private Club (Dawgs N Hawgs), Approximately 0.11 Acres, Located on the South Side of Louisiana Street and Approximately 100 Feet West of McDonald Street.
Summary
MEETING DATE: October 18, 2011
DEPARTMENT: Development Services - Planning
CONTACT: Jennifer Cox, AICP, Director of Planning
RECOMMENDED CITY COUNCIL ACTION:
· Staff recommends City Council conduct a public hearing and determine compliance or noncompliance with Dawgs N Hawgs' special use permit (SUP) for a private club during the 2010 audit year.
· In accordance with Section 138-25(b) of the Code of Ordinances, should the City Council determine noncompliance for the audit year, the City Council must prescribe one of the following actions:
o Immediate suspension of the permittee's operation of the private club and immediate implementation of procedures to revoke and delete the SUP for a private club designation from the zoning of the permittee's property; or
o Establishment of a six month probationary period during which the permittee may continue to operate under its SUP for a private club. The purpose of this probationary period is to allow the permittee to come into compliance with the requirements that were found to be noncompliant as a result of the public hearing. If Council decides to allow the permittee a probationary period, Council may grant a probationary alcohol permit during that time to allow the holder to come into compliance.
ITEM SUMMARY:
· On June 1, 2010, City Council approved Ordinance No. 2010-06-015 providing for a SUP for a private club for Dawgs N Hawgs. In addition to obtaining the SUP, the applicant also obtained the necessary alcohol permits from the Texas Alcoholic Beverage Commission (TABC) and the City in order to sell alcohol on the premises.
· Ordinance 2010-06-015 provides that as a private club, the club shall be operated in accordance with Section 146-46 of the City's Code of Ordinances. Section 146-46(84)(d) provides that a private club special use permit holder is subject to the terms and conditions of Chapter 138, Article II. Therefore, as the holder of a SUP operating a private club, the club must comply with Section 138-22, which provides that "[n]ot less than 35 percent of the gross receipts of such establishment shall be derived from the sale of food consumed on the premises." Section 138-22 further provides that "[t]he holder of such permit shall provide audits at its expense".
· On September 20, 2011, the City received the club's 2010 financial report from its accountant stating that the club had food sales of $14,725 and alcohol sales of $91,416. This represents less than 14 percent of their 2010 total sales from food.
· Based upon the finance report provided by the club, the City has determined that the club is not in compliance with Section 138-22 and the Alcohol Permit for the club was revoked effective October 8, 2011, however the City Council must still conduct a public hearing and determine compliance or noncompliance with Dawgs N Hawgs' SUP for a private club during the 2010 audit year.
BACKGROUND INFORMATION:
· A Specific Use Permit for a private club allows a larger percentage (65%) of the sales receipts from the sale of alcohol than a typical Mixed Beverage Permit (which allows 50%).
BOARD OR COMMISSION RECOMMENDATION:
· N/A