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November 26, 2008 Summary Table of TABC Conditional Use Permit Reform Options for Downtown Option Description Positive Ne ative Option 0 Status quo. Maximum control maintained. More May limit risk-averse redevelopment space remains/becomes available when county moves (along with law for retail rather than non-retail. offices). Existing restaurants may choose to relocate or face CUP revocation. Growing potential for lawsuit against cap as being arbitrary. Continued difficultly administering requirements and maintaining a "wait list". Option 1 Increase percentage of Acknowledges market forces and Existing Unrestricted permit holders alcohol allowed for "bona- grants flexibility to restaurants upset about perceived competition. fide restaurants". while maintaining some control. Has Continued difficulty administering been suggested by some restaurant financial reporting requirements. owners. Would make downtown less Fails to address concern over risky for a restaurant wishing to arbitrary cap of 12 Unrestricted serve alcohol. TABC CUPS and difficulty administering wait list. Option 2 Shift restaurant financial Reduces administration of financial Same as status quo, except for slight reporting to quarterly. tracking. Reduces CPA cost to relief in tracking financial reports. restaurant owners. Option 3 Eliminate the wait list for Eliminates administration of wait Same as status quo, except burden Unrestricted TABC CUPs. list. of maintaining a wait list is Use first come, first served eliminated. Those on the wait list instead. still interested may be upset that advantage is lost Option 4 Increase the cap on Greater acknowledgement of Substantially reduced control with Unrestricted TABC CUPS. market forces. Greater more reliance on underused penalty redevelopment potential for point system to eliminate problem downtown. Reduced likelihood of businesses. May not address legal challenge. Increased rent fundamental issue with restaurants. potential results in higher quality Potential for fewer streetfronts with redevelopment. Downtown gains daytime activity conducive to retail. stronger reputation in region as an The cap, unless it is based on some entertainment destination. acknowledged research, may still be perceived as arbitrary. Increased rents downtown may drive out other local retail/service businesses. Existing Unrestricted permit holders upset with competition. Policing concerns. Downtown may be less appealing for residential. Option 5 Eliminate the cap and Potential challenge for arbitrary cap Substantially reduced control with convert Restricted TABC eliminated. Peak acknowledgement full reliance on underused penalty CUPS to Unrestricted. of market forces. Greater point system to eliminate problem redevelopment potential for businesses. Potential for fewer downtown. Increased rent potential streetfronts with daytime activity results in higher quality conducive to retail. Increased rents redevelopment. Downtown San downtown may drive out other local Marcos becomes a major known retail/service businesses. Existing entertainment destination in the Unrestricted permit holders upset region. Potential to become with competition. Potential to another W. 6 h Street like in Austin. become another W. 6"' Street like in Much smaller administrative burden Austin. Policing concerns. Downtown to staff. may be less appealing for residential use. 0 Page 2