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Possible impacts of later hours <br />In rare cases, specific hours of service were set as a condition of the CUP, but the vast <br />majority of CUPs do not have conditional hours. This is of particular concern for <br />establishments near single-family areas, as well as in areas where the effect of the later <br />hours cannot be foreseen. <br />Impact in CBA <br />There are currently five Restricted CUPs downtown. A condition of this permit is that <br />alcohol sales make up no more than 50% of total gross receipts. Meeting this <br />requirement has been a challenge for a number of these establishments, and with <br />extended hours where more alcohol is likely to be sold than food, it is likely to be even <br />more difficult. <br />Live Music <br />CUPs for alcohol consumption commonly provide the City a way to regulate amplified live <br />music. The more recent requests typically have conditions that regulate hours. With the <br />extended hours, live music could potentially be played later. <br />The City Attorney noted that CUPs are currently tracked on a rolling 9-month period so if <br />the business goes over the 50% requirement for one month, it should not be considered <br />a violation. The way the CUP requirements are currently written allow for a six-month <br />review period without penalty. <br />Businesses that currently have CUPs which allow on-premise consumption of alcohol, do <br />not have to amend their CUPs to stay open until 2 a.m. as long as the business obtains a <br />revised TABC permit for extended hours. The way the ordinance is written, it is clear that <br />anyone who invests in 2 a.m. closing will know ahead of time that the ordinance can be <br />repealed at any time. Section 4 of the proposed ordinance changes will allow businesses <br />to operate as stipulated under their approved variance or CUP in regard to hours they are <br />allowed to operate. <br />Recommendation: The Task Force agrees that active CUPs should remain for now and <br />recommends that the City Council review in 6 months. The Committee also agrees that <br />changes to the number of bars allowed to locate in the Downtown area is a policy issue <br />which requires City Council direction. <br />TABC Application Process <br />The Area Sergeant from TABC explained that the local TABC office will not process <br />applications for revised service hour permits on a first come, first served basis. Rather, <br />when applications are received, they will be held until a number of them are received, at <br />which time the group of applications will be sent to TABC headquarters for processing. <br />This should take approximately one to two months. <br />TABC now issues permits for 2 years but if the ordinance was repealed, the permit would <br />then be considered null and void.