06
Dec
2005
Municipalities enjoying growth tend toward comprehensive, pro-active land-use planning that prioritizes sustainability, capitalizing on geographic strengths and uniqueness, and employing land-use policies and ordinances that advocate harmony of use for a strong sense of place.
Leadership must be sensitive to particular issues associated with the variety of neighborhoods that comprise a community when considering development projects, especially because ordinances cannot cover all contingencies.
A community's mix of ordinances, policy, climate, and commitment to its comprehensive land-use plan is ultimately the key to its success or failure.
Davenport has zero population growth, so it faces a different set of challenges to promote an economically healthy community. New development draws from the same audience as existing development does, resulting in a potential redistribution of resources to one area at the expense of another because both cannot be sustained. Leadership must acknowledge that not all development is good development for a community, and proceed accordingly.
The recent conflict between the Village of East Davenport and Ebiza, a new nightclub venture proposed for the old Turner Hall, located in the heart of the Village, is a good illustration of this dilemma. The issue boils down to appropriate land-use.
The Turnerverein Society (a fraternal organization established to promote German culture and traditions, with an emphasis on physical fitness) occupied the approximately 8,000 square-foot building until 1999. The first floor of Turner Hall was a gymnasium. While the basement was used for social events and meetings, it operated mostly as a clubroom for members, complete with a bar and kitchen facility.
Turner Hall was erected before the establishment of zoning ordinances that require a certain amount of parking to accompany every 100 square-feet of a commercial building. Hence, the Hall has none of its own parking, relying on public parking for its visitors.
Next to Turner Hall are Lindsay Park's baseball diamonds and basketball courts. A city-owned parking lot located immediately south of the Hall has 52 parking places to accommodate the park's visitors during park events throughout the year. The lot also provides public parking for the adjacent Market Building, as it did for Turner Hall guests when necessary. The lot also absorbs the overflow parking for businesses along Mound and Eleventh Streets in the Village, even though most of these enterprises have their own off-street parking.
The last 20 years of the Turners' occupancy of the Hall was as a gym facility for exercise classes on the first floor. The basement was used for occasional receptions, meetings, special events, and as a neighborhood tavern for a handful of remaining fraternity members. Therefore, parking for events at the Turner Hall did not regularly consume available public parking, allowing the surrounding village shops, restaurants, neighborhood taverns, and professional offices to grow and thrive because ample convenient parking was normally available to its patrons.
Over the years property owners organized as the Village of East Davenport and collaborated to create a unique destination by agreeing to conform to an overall historical theme. The result has been a successful economic district with a distinct sense of place unrivalled in Eastern Iowa.
In 1999, Turner Hall was purchased by Ron Schiltz, who did not appear to significantly alter its use. However, there is no evidence that Schiltz ever applied for a business or liquor license for the Hall, so its actual use is not officially documented.
On September 19, 2005, Roberto Orozco applied for a liquor license to open the Ebiza nightclub inside the Turner Hall. The original business plan called for operation of both floors (8,360 sq. ft.) as a bar, dance floor, etc., but was later revised to include only the first floor in order to accommodate building codes and licensing requirements. Ebiza would be open Wednesday through Saturday, from 10pm to 2am. Capacity for the club, according to Orozco, is 292 people.
At issue is whether the parking required to accommodate this volume of customers would substantially impact the Village's available public parking inventory. Villagers are adamant that it would put an unreasonable strain on parking availability, risking the loss of business for surrounding Villagers.
In addition, there is concern community-wide that the peaceful Village would be negatively impacted by Ebiza, considering the poor track record of Niteclub Las Bananas, located on East Kimberly in Davenport, of which Orozco had been a 50 percent owner until July 2004. Since the opening in January 2002, there have been 510 documented disturbances at Las Bananas requiring police interference, ranging from assaults to brawls that included a stabbing to gunshots fired.
"We want to get away from all that," explained Heather Orozco. "Our plan is to open a dance club that has a good clientele that would add to the business success of the Village. We don't want a place where there are a lot of problems because then we would have to shut down."
The past decade has revealed numerous problems and complaints attributed to certain establishments that carried liquor licenses. Examples include Thumpers, Stars and Stripes, and Third Street Mart. The ordinance governing liquor licenses needed strengthening, so in February 2005, the city council amended it (17.48.020.B.3) to include more city oversight and additional accountability for applicants.
One of the new requirements is for applicants to obtain a special use permit, which is governed by the Zoning Board of Adjustments (ZBA). Applicants who qualify for the permit must conform to a set of criteria, including 50 percent or more of sales for liquor; the business will not create parking congestion on the streets; is sufficiently separated from residents, etc.
Upon review of the liquor license application for Ebiza, the ZBA denied the Special Use Permit on the grounds that due to its size, the business would "increase congestion on the surrounding streets," and "would not be in keeping with the surrounding commercial uses."
Orozco is appealing the ZBA's decision to District Court, claiming that city staff approved the application, grandfathering the club because of the building's "history of comparable uses," according to an October 18, 2005, memo from Clayton Lloyd, Director of Davenport's Community Economic Development Department. This would exempt Ebiza from the parking requirement because, according to staff, the building's use would not be substantially changed from prior uses.
As stated above, the issue has boiled down to interpretation of use. City staff maintains a nightclub is a similar use to that of a fraternal hall and basement bar, while the ZBA has determined that, as a nightclub, the use is not compatible and will overburden parking resources.
Pinkeys Rec. & Marco Ent., installers of the DJ booth, lights and sound system for Ebiza claim, "Ebiza will have the hottest light show from here to Chicago," according to the website (http://www.tenjuna.com). It is also noted, "The village features several classy 'bars' but there are no clubs...there is a distinct difference!"
The Planning & Zoning staff recommendation approving the nightclub had several inconsistencies, including a statement that no residents existed within 400 feet of the Turner Hall. In fact, there are apartments less than 100 feet away, according to Villagers.
Director Lloyd publicly told the city council that Orozco had no affiliation with Las Bananas, a statement contradicted by Orozco's signature on previous years' liquor license applications.
Upon his attorney's advice, Orozco also omitted an arrest in 2005 that required disclosure on the application, even though the charge had been dismissed.
Regardless of these inaccuracies and omissions, every city department involved in the approval process, including the police department, signed off on the liquor license application.
Meanwhile, because Ebiza could not meet the Special Use Permit requirement to obtain a liquor license until the appeal was decided, Orozco applied for a General Business License for a Public Dance Hall, submitting that Ebiza would instead operate as a teen club for ages nineteen and under, serving no alcohol. While not as profitable, Orozco felt compelled to "find a means to open his business because of financial obligations Ebiza has already generated."
Mayor Charlie Brooke denied the license last week on the grounds that the club would likely incur violations of ordinances related to breach of peace, and that Orozco was misleading on his licensing application. Under Ordinance 5.02.090, the mayor has the authority to forbid the issuance of a license if he judges any business to be "detrimental to the public health or morals or is liable to lead to the violation of ordinance or law or provoke a breach of the peace or if any such license or any of his agents males any false or misleading statements or representations in the furtherance of the business conducted of said license or violates any ordinance or law in the conduct of the business for which said license is issued."
However the same ordinance (5.02.100) provides the applicant with a hearing in a timely manner "at which the applicant...may show cause and be heard on behalf of the granting..."
So where does this leave things? Alderman-at-Large Jamie Howard advocated the proposed nightclub by setting up a meeting with Orozco, city staff, and Villager Jack Bruckman, to facilitate the process at City Hall.
According to Orozco and his wife, Heather, city staff told them it was all right to move forward with the lease agreement and improvements because the zoning and licensing was in order and would be approved. They believed they were given a green light, and said that they were never told that staff's recommendation was not the final authority on approval of the proposed nightclub because of the new ordinance giving governance of special use permits for liquor licenses to the ZBA. By the time they learned that the ZBA would have to review their application and issue a special use permit for a liquor license, they had already made substantial improvements.
Once city staff had issued its recommendation approving Ebiza, the Orozcos began renovations, installing expensive equipment and décor to provide customers with a vibrant experience, entering into agreements with vendors, resulting in no turning back due to a substantial financial investment now in place, believing, albeit incorrectly, that they had city approval. For a young couple with two small children, the prospect of not opening Ebiza is "devastating" for them.
This predicament revealed several critical disconnects in opening an entertainment business in Davenport. First, the ordinances are not specific enough in some cases, inconsistent, outdated, or inadequate in scope, leaving gaps that necessitate interpretation that can often result in confusion and conflict. Second, the process does not engage neighboring property owners and stakeholders in a timely manner. Village property owners were given less than a week's notice about the ZBA hearing that would decide this hugely important matter. If Orozco had applied for a general business license instead, no notice would have been given at all. It is quite possible that the neighbors would have had no opportunity to weigh in. Third, problem resolution when necessary, such as mediation, facilitated negotiation, or informal discussion meetings involving all stakeholders, is not part of the formal process.
The Orozcos wonder what they can do to mitigate Villagers' fears about Ebiza and how it will be run. Unfortunately, Las Bananas is an albatross for the Orozcos because regardless of all the disturbances and police interference, it has never been shut down, and its liquor license has been consistently renewed. Las Bananas' problems have met with few, if any, consequences to the owners. Villagers have no reason to trust that it would be any different at this location. There is little incentive for owners to run things differently. More importantly, the leadership at City Hall, including the Police Department, appears to be unable to curtail the frequent disruptive activity.
In conclusion, there is still a chance for Ebiza to open: if Orozco wins his appeal in District Court over the ZBA's denial of a special permit (note: the city council would still need to approve a liquor license for Ebiza), or he prevails at the hearing to appeal the Mayor's denial of a Business License for a Public Dance Hall.
It is likely that the ZBA will appeal a reversal of their decision to the Iowa Court of Appeals, adding more expense to all parties, including taxpayers. Should District Court uphold the ZBA's ruling, it is possible that the Orozcos will also take it on to the Iowa Court of Appeals. The irony is that now the city staff will have to defend the lawsuit brought against the ZBA.
"We have to fight this all the way because of our investment there," say the Orozcos. "But if the City is willing to reimburse us for our expenditures, then we would be willing to relocate."
Leadership must be sensitive to particular issues associated with the variety of neighborhoods that comprise a community when considering development projects, especially because ordinances cannot cover all contingencies.
A community's mix of ordinances, policy, climate, and commitment to its comprehensive land-use plan is ultimately the key to its success or failure.
Davenport has zero population growth, so it faces a different set of challenges to promote an economically healthy community. New development draws from the same audience as existing development does, resulting in a potential redistribution of resources to one area at the expense of another because both cannot be sustained. Leadership must acknowledge that not all development is good development for a community, and proceed accordingly.
The recent conflict between the Village of East Davenport and Ebiza, a new nightclub venture proposed for the old Turner Hall, located in the heart of the Village, is a good illustration of this dilemma. The issue boils down to appropriate land-use.
The Turnerverein Society (a fraternal organization established to promote German culture and traditions, with an emphasis on physical fitness) occupied the approximately 8,000 square-foot building until 1999. The first floor of Turner Hall was a gymnasium. While the basement was used for social events and meetings, it operated mostly as a clubroom for members, complete with a bar and kitchen facility.
Turner Hall was erected before the establishment of zoning ordinances that require a certain amount of parking to accompany every 100 square-feet of a commercial building. Hence, the Hall has none of its own parking, relying on public parking for its visitors.
Next to Turner Hall are Lindsay Park's baseball diamonds and basketball courts. A city-owned parking lot located immediately south of the Hall has 52 parking places to accommodate the park's visitors during park events throughout the year. The lot also provides public parking for the adjacent Market Building, as it did for Turner Hall guests when necessary. The lot also absorbs the overflow parking for businesses along Mound and Eleventh Streets in the Village, even though most of these enterprises have their own off-street parking.
The last 20 years of the Turners' occupancy of the Hall was as a gym facility for exercise classes on the first floor. The basement was used for occasional receptions, meetings, special events, and as a neighborhood tavern for a handful of remaining fraternity members. Therefore, parking for events at the Turner Hall did not regularly consume available public parking, allowing the surrounding village shops, restaurants, neighborhood taverns, and professional offices to grow and thrive because ample convenient parking was normally available to its patrons.
Over the years property owners organized as the Village of East Davenport and collaborated to create a unique destination by agreeing to conform to an overall historical theme. The result has been a successful economic district with a distinct sense of place unrivalled in Eastern Iowa.
In 1999, Turner Hall was purchased by Ron Schiltz, who did not appear to significantly alter its use. However, there is no evidence that Schiltz ever applied for a business or liquor license for the Hall, so its actual use is not officially documented.
On September 19, 2005, Roberto Orozco applied for a liquor license to open the Ebiza nightclub inside the Turner Hall. The original business plan called for operation of both floors (8,360 sq. ft.) as a bar, dance floor, etc., but was later revised to include only the first floor in order to accommodate building codes and licensing requirements. Ebiza would be open Wednesday through Saturday, from 10pm to 2am. Capacity for the club, according to Orozco, is 292 people.
At issue is whether the parking required to accommodate this volume of customers would substantially impact the Village's available public parking inventory. Villagers are adamant that it would put an unreasonable strain on parking availability, risking the loss of business for surrounding Villagers.
In addition, there is concern community-wide that the peaceful Village would be negatively impacted by Ebiza, considering the poor track record of Niteclub Las Bananas, located on East Kimberly in Davenport, of which Orozco had been a 50 percent owner until July 2004. Since the opening in January 2002, there have been 510 documented disturbances at Las Bananas requiring police interference, ranging from assaults to brawls that included a stabbing to gunshots fired.
"We want to get away from all that," explained Heather Orozco. "Our plan is to open a dance club that has a good clientele that would add to the business success of the Village. We don't want a place where there are a lot of problems because then we would have to shut down."
The past decade has revealed numerous problems and complaints attributed to certain establishments that carried liquor licenses. Examples include Thumpers, Stars and Stripes, and Third Street Mart. The ordinance governing liquor licenses needed strengthening, so in February 2005, the city council amended it (17.48.020.B.3) to include more city oversight and additional accountability for applicants.
One of the new requirements is for applicants to obtain a special use permit, which is governed by the Zoning Board of Adjustments (ZBA). Applicants who qualify for the permit must conform to a set of criteria, including 50 percent or more of sales for liquor; the business will not create parking congestion on the streets; is sufficiently separated from residents, etc.
Upon review of the liquor license application for Ebiza, the ZBA denied the Special Use Permit on the grounds that due to its size, the business would "increase congestion on the surrounding streets," and "would not be in keeping with the surrounding commercial uses."
Orozco is appealing the ZBA's decision to District Court, claiming that city staff approved the application, grandfathering the club because of the building's "history of comparable uses," according to an October 18, 2005, memo from Clayton Lloyd, Director of Davenport's Community Economic Development Department. This would exempt Ebiza from the parking requirement because, according to staff, the building's use would not be substantially changed from prior uses.
As stated above, the issue has boiled down to interpretation of use. City staff maintains a nightclub is a similar use to that of a fraternal hall and basement bar, while the ZBA has determined that, as a nightclub, the use is not compatible and will overburden parking resources.
Pinkeys Rec. & Marco Ent., installers of the DJ booth, lights and sound system for Ebiza claim, "Ebiza will have the hottest light show from here to Chicago," according to the website (http://www.tenjuna.com). It is also noted, "The village features several classy 'bars' but there are no clubs...there is a distinct difference!"
The Planning & Zoning staff recommendation approving the nightclub had several inconsistencies, including a statement that no residents existed within 400 feet of the Turner Hall. In fact, there are apartments less than 100 feet away, according to Villagers.
Director Lloyd publicly told the city council that Orozco had no affiliation with Las Bananas, a statement contradicted by Orozco's signature on previous years' liquor license applications.
Upon his attorney's advice, Orozco also omitted an arrest in 2005 that required disclosure on the application, even though the charge had been dismissed.
Regardless of these inaccuracies and omissions, every city department involved in the approval process, including the police department, signed off on the liquor license application.
Meanwhile, because Ebiza could not meet the Special Use Permit requirement to obtain a liquor license until the appeal was decided, Orozco applied for a General Business License for a Public Dance Hall, submitting that Ebiza would instead operate as a teen club for ages nineteen and under, serving no alcohol. While not as profitable, Orozco felt compelled to "find a means to open his business because of financial obligations Ebiza has already generated."
Mayor Charlie Brooke denied the license last week on the grounds that the club would likely incur violations of ordinances related to breach of peace, and that Orozco was misleading on his licensing application. Under Ordinance 5.02.090, the mayor has the authority to forbid the issuance of a license if he judges any business to be "detrimental to the public health or morals or is liable to lead to the violation of ordinance or law or provoke a breach of the peace or if any such license or any of his agents males any false or misleading statements or representations in the furtherance of the business conducted of said license or violates any ordinance or law in the conduct of the business for which said license is issued."
However the same ordinance (5.02.100) provides the applicant with a hearing in a timely manner "at which the applicant...may show cause and be heard on behalf of the granting..."
So where does this leave things? Alderman-at-Large Jamie Howard advocated the proposed nightclub by setting up a meeting with Orozco, city staff, and Villager Jack Bruckman, to facilitate the process at City Hall.
According to Orozco and his wife, Heather, city staff told them it was all right to move forward with the lease agreement and improvements because the zoning and licensing was in order and would be approved. They believed they were given a green light, and said that they were never told that staff's recommendation was not the final authority on approval of the proposed nightclub because of the new ordinance giving governance of special use permits for liquor licenses to the ZBA. By the time they learned that the ZBA would have to review their application and issue a special use permit for a liquor license, they had already made substantial improvements.
Once city staff had issued its recommendation approving Ebiza, the Orozcos began renovations, installing expensive equipment and décor to provide customers with a vibrant experience, entering into agreements with vendors, resulting in no turning back due to a substantial financial investment now in place, believing, albeit incorrectly, that they had city approval. For a young couple with two small children, the prospect of not opening Ebiza is "devastating" for them.
This predicament revealed several critical disconnects in opening an entertainment business in Davenport. First, the ordinances are not specific enough in some cases, inconsistent, outdated, or inadequate in scope, leaving gaps that necessitate interpretation that can often result in confusion and conflict. Second, the process does not engage neighboring property owners and stakeholders in a timely manner. Village property owners were given less than a week's notice about the ZBA hearing that would decide this hugely important matter. If Orozco had applied for a general business license instead, no notice would have been given at all. It is quite possible that the neighbors would have had no opportunity to weigh in. Third, problem resolution when necessary, such as mediation, facilitated negotiation, or informal discussion meetings involving all stakeholders, is not part of the formal process.
The Orozcos wonder what they can do to mitigate Villagers' fears about Ebiza and how it will be run. Unfortunately, Las Bananas is an albatross for the Orozcos because regardless of all the disturbances and police interference, it has never been shut down, and its liquor license has been consistently renewed. Las Bananas' problems have met with few, if any, consequences to the owners. Villagers have no reason to trust that it would be any different at this location. There is little incentive for owners to run things differently. More importantly, the leadership at City Hall, including the Police Department, appears to be unable to curtail the frequent disruptive activity.
In conclusion, there is still a chance for Ebiza to open: if Orozco wins his appeal in District Court over the ZBA's denial of a special permit (note: the city council would still need to approve a liquor license for Ebiza), or he prevails at the hearing to appeal the Mayor's denial of a Business License for a Public Dance Hall.
It is likely that the ZBA will appeal a reversal of their decision to the Iowa Court of Appeals, adding more expense to all parties, including taxpayers. Should District Court uphold the ZBA's ruling, it is possible that the Orozcos will also take it on to the Iowa Court of Appeals. The irony is that now the city staff will have to defend the lawsuit brought against the ZBA.
"We have to fight this all the way because of our investment there," say the Orozcos. "But if the City is willing to reimburse us for our expenditures, then we would be willing to relocate."
