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Extended Alcohol Service Hours and CUPS <br />The following is an overview of potential problems with TABC CUPs resulting from extended hours of <br />alcohol sales. The main points are outlined below, followed by a more in -depth discussion of each point. <br />• Is amendment necessary for all CUPS? <br />• All approved CUPS to this point were evaluated with the current hours. Effect of later hours? <br />• Further difficulty for Restricted CUPS to meet the "50% rule" as more drinks are sold <br />• Dissatisfaction with CBA restrictions (see memo from Chance) <br />• Live music later than originally intended (Bar 141, Cheatham St, Tantra, etc) <br />• Revocation procedure is questionable. Should problems arise, the city may be unable to revoke a CUP. <br />Amending existing CUPS <br />There are a number of issues that extended hours of alcohol service could present for existing CUPS. <br />First, it is possible that existing CUPS would need to be amended to reflect the extended hours. <br />According to the LDC, 4.3.4.2(a) (2), CUPs may continue to operate until, "...There is a significant change <br />in the name of the establishment, or any physical or operational change in the business that <br />increases off-site impacts to surrounding properties." There are several possible ways to <br />interpret this- <br />1. The change in hours increases off-site impacts city-wide (all CUPS must be amended) <br />2. The change in hours increases off-site impacts only in a certain area, i.e. outside the CBA <br />(CUPS outside the CBA must be amended) <br />3. The change in hours does not increase off-site impacts (no CUP amendments required) <br />Each of these interpretations has its own strengths and challenges <br />1. Maximum control of impact of hours, but massive workload for staff and commission and <br />likely unpopular among permit holders <br />2. Some control over impacts, and reduced workload, but will be difficult to assign a <br />non-arbitrary area where amendment is required. Legal should be actively involved. <br />3. This option is the simplest, but there would be little opportunity to manage the impact of <br />extended hours. <br />Possible impacts of later hours <br />In rare cases, such as Pappa's Pasta, specific hours of service were set as a condition of the CUP, but the <br />vast majority of CUPS do not have conditional hours. However, staff and P&Z have evaluated each case <br />using the hours allowed at the time, not the new hours. This is of particular concern for establishments <br />near single-family areas, as well as in areas where the effect of the later hours cannot be foreseen. <br />Impact in CBA <br />There are currently five Restricted CUPS downtown. A condition of this permit is that alcohol sales <br />make up no more than 50% of total gross receipts. Meeting this requirement has been a challenge for a <br />number of these establishments, and with extended hours where more alcohol is likely to be sold than <br />food, it is likely to be even more difficult. There has been dissatisfaction from numerous parties <br />regarding the regulations in the CBA, and staff expects this to continue with the extended hours. <br />Chance Sparks (See attached) prepared a memo with options to consider that would remedy this <br />situation.