Chairman Rosen Improves the Liquor License Process

By

Gamal Hennessy

The New York State Liquor Authority (SLA) has faced considerable problems in recent years. A new chairman was brought in over the summer to improve the organization on several different levels. Less than 6 months into his term and operators have seen a noticeable improvement in the license application process. It is a rare piece of good news coming from Albany.

The SLA provides licenses to businesses across the state sell alcohol. It is one of the main offices of government that nightlife venues have to interact with in order to stay in business. In recent years, it has become increasingly difficult to obtain a license in a timely manner and operators have lost considerable amounts of money waiting for an SLA decision. The situation became so detrimental that some SLA employees were accused of taking bribes to process applications in a timely manner. The current backlog of outstanding applications is more than 1,200. This prevents businesses from opening, operators from working and patrons from enjoying venues that may never get to open.

Denis Rosen, a former NY State assistant attorney general, took over the SLA in August of this year with a mandate to root out corruption, eliminate waste and streamline the licensing process. A recent New York Times article found that Mr. Rosen is wasting no time making changes to the agency. By hiring more license examiners and creating a system where the attorneys for operators can verify key information in the license application, the SLA has been approving license applications in 2-4 weeks instead of 6-8 months. Attorney’s for nightlife operators confirm that while the new process puts more responsibility on the attorney filling out the application, it can literally shave months off a license application.

There are still many more steps that Mr. Rosen needs to take to improve the SLA. There is still a backlog of more than 1,000 applications that need to be reviewed with the new streamlined process. The Beverage Control Law itself hasn’t been overhauled since Prohibition and needs major revisions. Local community boards and anti-nightlife politicians have already begun their assault on the agency. But the new process is a positive step. Hopefully, Mr. Rosen can continue to take actions that will support a vital aspect of business and culture in New York City.

Have fun.
Gamal

Has Senator Squadron Started His Anti-Nightlife Campaign?

By Gamal Hennessy

When Daniel Squadron ran for the New York State Senate last year, nightlife control was a pillar of his campaign. Now that the State Liquor Authority has new leadership, Mr. Squadron has initiated a dialogue aimed at "improving" that agency. Left unchecked Mr. Squadron’s "solutions" will prove detrimental to the nightlife industry and harmful to the entire city.

According the Senator Squadron’s website, he hosted a meeting last week that included
State Liquor Authority (SLA) Chairman Dennis Rosen, SLA CEO Trina Mead, SLA Deputy Commissioner of Licensing Kerri O’Brien, SLA Deputy CEO for New York City Michael Jones, Councilmember Rosie Mendez, Margaret Chin, representatives from the offices of Assembly Members Silver, Kavanagh, and Glick, and leaders from district community boards. The agenda of the meeting was to discuss nightlife concerns and according to the press release "to start a dialogue to foster informed licensing decisions, intelligent enforcement actions, and safer communities."

While nightlife is certainly an issue that deserves discussion, a deeper look at the attendance of the meeting and the underlying agenda of the host is disconcerting. The major issue is who was not invited to the meeting. Based on the wording of the press release and inquiries that I have made, members of the nightlife community and members of the New York City Police Department were not invited to the participate. It is hard to imagine any discussion about nightlife concerns or safer communities being productive when the industry itself and the people charged with keeping the community safe aren’t involved in the discussion.

The situation becomes easier to understand when you look at the background of the players involved. Senator Squadron ran on an anti-nightlife platform in 2008. The former operator called for a stronger voice for community boards (CBs) when it comes to liquor licenses. He feels that the CBs role should shift from an advisory role in relation to the SLA to something more binding. Greater community participation in the democratic process is a lofty goal, but that does not mean that the CBs should have more control over New York liquor licenses. CBs don’t take needs of nightlife or economic impact of nightlife on the city into account when they make their determinations. A CB isn’t always representative of the actual community since a small minority of NIMBY (not in my backyard) elements often have stronger voice in the CBs than the silent majority that lives in the area. Giving a greater voice to the CBs while excluding operators from the discussion indicates the Senator might be taking an imbalanced approach to the issue.

The Senator’s path to a weaker nightlife industry goes directly through the SLA. Dennis Rosen was brought in to clean up an agency rife with problems including lack of staff, waste, and possible corruption. Based on the press release, Squadron made it clear that he would push for more community involvement in liquor licensing when he voted for Rosen’s appointment. To Mr. Rosen’s credit, he appears to be tackling problems quickly, adding staff to deal with the licensing backlog and corruption issues. But SLA Chairman is a political appointment. Mr. Rosen has to work within the framework of state politics and that means dealing with the politicians who can vote him in or out. The meeting could be the first step Squadron takes to make his nightlife agenda a reality.

Again, the problem is not that a meeting was held between politicians, CBs and the SLA about nightlife. The problem is that a constructive dialogue would have included more voices at the table. If the police and nightlife are not part of the discussion from the beginning, realistic solutions outcomes are unlikely. Operators are the ones who get the liquor licenses and have to work with the community boards. They can address concerns about their industry and offer solutions if they are invited to the meeting. The police are the only ones that can regulate noise, pollution and other quality of life issues on the streets. Operators have little or no legal control outside the four walls of their venue. If they are not part of the discussion, then the problem can’t be solved. It’s not as if nightlife doesn’t have representatives that could have attended the meeting. Operators have the New York Nightlife Association. Patrons have the Nightlife Preservation Community. There are also think tanks including the Responsible Hospitality Institute. Each one could have brought a unique perspective to a meeting about nightlife concerns if they were actually invited to the meeting.

If Senator Squadron plans to meet with operators and police separately, the question is why not have everyone meet at once, and on an ongoing basis, until a framework for understanding is developed? If Squadron simply plans to continue SLA policies and stifle nightlife growth in New York City, all he needs to do is give more power to the CBs and leave nightlife out of the discussion, which is what it appears he is doing.

If patrons and operators want to see the further decline of nightlife in New York, then they should ignore Squadron’s actions and see how far it goes. If they want to enhance and enjoy an important part of New York living, then we need to get more involved in the community board process to ensure that Squadron can’t use them as a weapon against clubs when he gives the CBs more power over the licensing process.

Have fun
Gamal

Can Rosen Get the Liquor Flowing in New York?

By Gamal Hennessy

Late last week a new chairman was selected to head the New York State Liquor Authority. The new appointment comes at a time when the agency is facing scandals and being criticism both inside and outside of government. Can the new Chairman turn the agency around or should the SLA be abolished altogether?

The State Liquor Authority regulates who gets to sell liquor in within the state. Every legal operator needs to obtain a license from the SLA before they can sell liquor to the public. However, many of the laws regulating liquor haven’t been changed since the 1920’s when Prohibition was part of the fabric of American society. To make matters worse, there is a severe backlog of pending applications. Operators waiting for a liquor license can wait up to 11 months to have their application processed, which means that they can lose money for most of they year waiting for a response from this agency.

The problems surrounding the SLA evolved into a scandal. Several individuals working in the New York Office of the SLA were charged with taking bribes to expedite certain applications. The fallout from this investigation led to Governor Paterson naming Dennis Rosen, a former New York State District Attorney, to head the SLA.

Mr. Rosen’s new job will not have a long honeymoon period. During his confirmation hearing, several state senators complained that the licensing process takes too long and hurts the state’s economy. One senator suggested that the SLA can’t be fixed and might need to be abolished. At the same time, Governor Paterson has signed an executive order calling for several agencies to review and modify “antiquated and burdensome regulations on businesses”. The SLA was one of the agencies named in that executive order. It appears that Mr. Rosen will be called upon to modify the Prohibition Era laws that govern the SLA and clear the backlog of applications or the whole agency might go down with him.

It is unclear at this stage how much change Mr. Rosen can bring to the SLA. It is a step in the right direction to give the new chairman a mandate to assist operators instead of hindering them. It is a step in the right direction to recognize that the Beverage Control Law needs to be brought into the 21st century. But, Governor Paterson is facing political struggles of his own and anti-nightlife factions haven’t openly commented to Rosen on their position. As members of the nightlife community we have both the ability and the right to support change in the SLA that matches the interests and needs of our culture.

Have fun.
Gamal

A New Fight Over New Bars

By Gamal Hennessy

Hidden away from the major media outlets, a struggle is brewing over the nightlife industry in New York. The fight revolves around the laws that govern bars and the way nightlife is perceived. The latest battle in this conflict concerns the Beverage Control Law and how it is interpreted. Anti nightlife groups are planning to change current SLA law to serve their own interests and if their influence isn’t counterbalanced nightlife will suffer.

The current law requires a public hearing for any potential liquor license opening up within 500 feet of two other licenses. If you consider how dense New York is, you’ll quickly realize that almost every new venue requires a 500 foot hearing. Residents who oppose nightlife venues in general often use the 500 foot rule to protest the opening of new venues.

A judge in a recent court case involving Hudson Terrace held that a 500 foot hearing is only necessary for establishments of the same type, not for any liquor license. For example if a bar wants to open up within 500 feet of three other bars, then a hearing is required. But if a bar wants to open up within 500 feet of three clubs, or two clubs and a restaurant, or a club a restaurant and a cabaret, then no hearing is required.

Anti-nightlife elements within the city don’t plan to lose their main weapon without a fight. Daniel Squadron, a new State Senator who turned his back on nightlife before he was even elected, plans to re-write the law to tighten the restrictions and circumvent the judges ruling. He claims that “the decision undermines the spirit of the law”, so the law needs to be fixed.

There are at least three unspoken concepts that are flawed when it comes to the way anti nightlife elements deal with the 500 foot hearing process. First, they assume that more venues are automatically a problem. However, it is just as likely that more venues could reduce crowding and increase revenue for the city and the state. Second, there is an assumption that the community board is the best forum for making decisions about additional nightlife venues. But that body does not and cannot take in to account the cultural and financial impact of the venue on the city. Third, that the BCL needs to be changed to inhibit and restrict nightlife growth when in fact much of the law dates back to Prohibition and needs to be revised not to inhibit nightlife but to bring the law in line with the realities and needs of nightlife in the 21st century.

The BCL does need to be revised and the 500 foot rule needs to be examined but pro-nightlife and anti-nightlife groups need to weigh in on the subject. People concerned with the character of the individual neighborhoods and the viability of the city overall need to be heard. Hopefully organizations like the NYNA and the NPC will get involved with this issue and prevent further erosion of nightlife in New York.

Have fun.
Gamal

Changing of the Guard at the State Liquor Authority

By Gamal Hennessy

In recent months, the New York State Liquor Authority has gone through turmoil. Political pressure from the outside and illegal activity on the inside has left the agency vulnerable to criticism. While Governor Paterson tries to clean house by appointing a new Chairman, the question is can this new appointee reshape the agency into something more relevant and beneficial to New York nightlife.

The SLA has faced several problems under the leadership of its former Chairman, Daniel Boyle. Carl Andrews, an aide to Governor Paterson, was forced to resign after he allegedly tried to force Boyle to renew the liquor license for Cipriani when the iconic restaurateur’s license was in trouble last year. Just last month, the New York offices of the SLA were raided as part of a corruption investigation. Other SLA officials have recently resigned under a cloud. It was only a matter of time before Boyle had to pay a political price for all of this. His appointment was not renewed after the term expired in February.

Boyle’s successor is Dennis Rosen, a graduate of Harvard Law School who has been with the NYS District Attorney’s office since 1982. During his tenure, Rosen has prosecuted civil and legal cases against attorneys, stockbrokers, insurance agents, telemarketers and construction contractors. His most relevant investigation involved going after infractions regarding the SLA. After his nomination is confirmed, the agency he inspected will be the one he has to lead.

The agency that Mr. Rosen inherits has a number of problems that need to be addressed. It was the agency’s chronic lack of inspectors that created the circumstances for corruption to occur in the first place. The overall number of licenses granted is down, limiting the industry’s ability to be a viable economic force in the state. There is a backlog of about 2,400 outstanding license applications due to both the lack of inspectors and the conservative stance of Mr. Boyle. On top of all of that, the SLA is governed by a set of laws that haven’t been changed in any meaningful way since Prohibition.

It is an open question whether Mr. Rosen will be willing or able to bring in more inspectors, clear the backlog, and revise the laws to bring them in line with the economic and social realities of the 21st century while at the same time dealing with state politics, local government and community boards. The nightlife advocates I spoke to last week didn’t have any preconceived opinion of Mr. Rosen, but they are hoping for more balanced treatment than the previous administration.

Have fun.
Gamal

The Liquor Authority Gets a Wake Up Call

By Gamal Hennessy

Last week the Inspector General raided the offices of the State Liquor Authority. Former SLA employees are being accused of bribing employees to manipulate the system. While the investigation focuses on the gift cards and other petty items offered in exchange for “preferred” treatment, officials need to focus on the underlying situation that created the fraud and clean up the liquor licensing system.

The New York State Alcohol Beverage Control Law (ABC) states that an application for a liquor license should get an initial review within 30 days. Nightlife operators have complained for years that the review often took 2-3 months because of a lack of inspectors among other issues. Recently, nightlife opponents in the outgoing administration managed to drag out that period to 6-8 months.

Operators became increasingly frustrated with the process, since the investment in a bar or club can’t start to make money until they can sell liquor and they can’t sell liquor without a license. That’s where the “handlers” would come in. For a fee, these former SLA employees would offer ‘expedited service’ for an application. The IG claims that the service they performed was calling up their friends who still worked in the SLA, and asking for the applications to get moved to the top of the pile. In return, the handlers would give their friends gift cards and, ironically, bottles of liquor. The IG alleges that some applicants got their forms processed in as little as 11 days instead of waiting half a year or more.

It is regrettable that people in positions of authority, however minor, are willing to manipulate the bureaucracy for their own personal advantage. But the larger issue revolves around the system itself. Robert Bookman, attorney for the New York Nightlife Association, sees this raid as the result of a dysfunctional system:

“It takes 8 months to get a liquor license when the law requires it be done in 30 days. Huge investments are sitting and waiting for a license that is long overdue. Is it any wonder that people will get desperate and will do whatever they have to just to get an honest review of their application? That is the real scandal here. Notice there are no allegations that anyone got a license that they were not entitled to. The crime is that the applications were reviewed quickly…the way they are supposed to be reviewed. I am not condoning illegal activity, but no one has been listening about this unlawful, unacceptable wait for liquor licenses before now.”

If the leaders of the SLA essentially broke the law and created a situation where potential operators have to wait 6-8 months for a license, and refused to hire more examiners, then they created the atmosphere for corrupt practices in the Harlem office. The responsibility for this corruption needs to go a lot higher than the clerks who took Applebee’s gift cards. It needs to lead to a revamping of the whole process. Governor Paterson said he supported “the actions of the I.G.’s office to uncover any wrongdoing that may have occurred within the S.L.A. and is working with the S.L.A. to rebuild the organization.” Hopefully this raid can be the beginning of an overhaul that helps bring jobs and revenue to the state while cleaning up a government agency at the same time.

Have fun.
Gamal

The World's Loudest Cigarette: Six Years of the Smoking Ban

Six years ago this week, a smoking ban was imposed on bars, restaurants and other venues in New York City. While the atmosphere inside bars has improved and there are studies that suggest that there has been a significant improvement in the health of nightlife operators and patrons, there have also been secondary effects that threaten the health of the nightlife industry in general. The city has unintentionally (or perhaps unintentionally) created a situation that puts clubs at odds with local residents and ultimately threatens liquor licenses.

History

Before the election of Michael Bloomberg as mayor of New York City, bars and clubs were bastions of smoking. Federal studies found that 61% of heavy alcohol users also smoked, often performing both acts simultaneously. The image entering a smoky bar and approaching a sexual interest by asking for a light were common in many venues in the city. Anyone who went into or worked in a bar accepted the concept that smokers would be there and that they would be able to smell the smoke on their clothes and in their hair long after they left the venue, whether they smoked or not. Back when the world was young and I worked in Webster Hall, I had to sneak outside several times a night for the chance to breathe fresh air. Cigarette smoke triggers my asthma, so for me working in the basement was like working in a burning building. It wasn’t the smartest thing I ever did, but a

hustler does what he has to do, especially when he’s starting out.

In 2002 after Bloomberg became mayor, one of the first things he pushed for was a ban on smoking in restaurants, bars and clubs. The debate leading up to the passage of the law was hotly contested on both sides. Groups that advocated the ban claimed that operators inside the clubs were the most vulnerable to the dangers of second hand smoke because they were exposed to it several hours a night for several nights per week. They claimed a ban would both improve the long term health of operators and improve nightlife business because it would attract people who didn’t smoke into the environment to spend money. Groups that came out against the ban did not deny the health benefits, but they did argue that there would be economic and social effects that the law did not take into account. They also claimed that there would be increased friction from the community because of the noise generated from patrons standing outside to smoke from 5 PM to 4 AM.

The Sound of Smoking

Some people think that a few people standing outside a venue will not substantially increase the level of street noise. But that concept only considers the smokers themselves. They don’t see that smokers, especially female smokers, provide a powerful incentive for groups of fanatics to hang out in front of a club, especially the ones who didn’t get into or got thrown out. In a twisted effort to get noticed and prove their superiority, these individuals will shout, get into fights, honk their horns if they are in their cars, or try to talk to girls from their cars and back up traffic behind them which causes other cars to blow their horns. This sad mating ritual cacophony will die down when the girls finish smoking and go back inside, but it will begin again when the next group of girls comes out of the club to take their place.

The relationship between street noise and smoking outside should not have come as a surprise to anyone involved in the development of the smoking ban since the NYNA informed city that the smoking ban would lead to noise complaints. But when operators requested the ability to hire Paid Detail officers to deal with the inevitable noise the result was the worst of all options. The smoking ban was put in place and the request for Paid Detail was rejected, allowing the smoking ban to become a major contributor of street noise. When street noise increases, 311 complaints from local residents increase. When complaints increase, local community boards can use those complaints to have a venue’s liquor license revoked. Without a liquor license, a bar or a club can’t compete in the market and is forced to close. There is a direct relationship between the smoking ban and the increase in noise complaints against clubs. As the ban enters its 6th year operators need to find a way to keep patrons healthy and stay opened.

Coping Strategies

Different venues use different tactics to deal with the ban. Any venue that has been built or renovated since 2003 could factor the law into their design. The ones that could afford it added heated courtyard lounges like Cielo, rooftop access like Above Allen or fire escape access like APT to give smokers access to the open air without putting them out on the street. Venues that don’t have that option rope off areas in front of the venue to separate the smokers who already made it past the velvet rope from the throngs still trying to get inside.

There are also growing instances of venues that do not rope off areas out front, or create special sections for them. Some operators have come to the conclusion openly or privately that it is easier and more cost effective to simply break the law. Smoking in clubs reported to be on the rise in New York City, either because enforcement has dropped off, or because the fines are low enough that paying them costs less than complying with the law or getting noise complaints. While this minority of operators might not openly reject the law, they have come to the conclusion that the cost of paying the fine is less than the cost of erecting smoking areas or subjecting their liquor licenses to revocation based on noise complaints from smokers standing outside. Some solutions have worked better than others, but one thing the clubs won’t do is discourage smoking by their clientele since by some operator estimates, smokers account for 40% of patrons.

A More Viable Solution

There is an alternative that protects the health of patrons and operators, keeps noise levels down outside of venues and allows patrons to smoke all at the same time. There are air filtration systems on the market that have been approved by the Department of Health and are currently used by infectious disease wards in hospitals to clean the air. These systems reportedly are the size of a humidifier and one of them can keep 1,250 square feet of interior air cleaner than the air in Central Park, even if 60% of the people are smoking inside. The NYNA proposed that if a venue was primarily a bar, lounge or club and not a restaurant then they could have one filter installed for every 1,250 square feet of interior space and become exempt from the ban. This request was not included in the final version of the law.

The best options available for the industry are to continue to lobby officials on the state or and local level that patrons can smoke inside without health risks, through the use of technology like filtration units. They can also try and work with local community leaders and law enforcement to gain the power to control or reduce noise outside the venues through Paid Detail. Finally, they could work to sever the links between street noise and liquor licenses so that loud patrons don’t lead to closed venues. Whatever tactic operators decide to use they need to insure that the smoking ban isn’t harmful to nightlife health.

Have fun.
Gamal

Sin Taxes, Playing Together and Notorious Crimes

Nightlife News for January 21st, 2009

By Gamal Hennessy

Time for a New Sin Tax
David Kesmodel of the Wall Street Journal reported on the growing trend of lawmakers across the country to increase taxes on liquor to lower state budget deficits. While sin taxes have been used in the past for governments to get through lean economic times, New York might want to couple that tax increase with an increase in liquor licenses so that more jobs and more taxes are created at the same time.

Playing Well Together
Heather Murray of Chelsea Now found a positive story in the residents vs. nightlife situation. Cafeteria in Chelsea has been working with neighbors to install sound proof windows, police the area around the building for noise and amateur behavior and early waste removal. The situation offers good ideas to operators trying to peacefully coexist with people living near their venues.

Notorious Crimes Taint Movie Opening
The Gothamist reported that four people were stabbed at a party thrown to celebrate the hip hop film Notorious. In a separate incident, the Times reported that a teenage girl was shot and killed at a teen only party in the same weekend. If the film was supposed to be a cautionary tale about the connection between hip hop, crime and violence the message didn’t get through to every one.

What do you think? Should we support more liquor taxes? What else can venues do to work with communities? What will it take to separate hip hop from violence? Add a comment and let us know.

Have fun.
Gamal

Squadron Watch, SLA Inspectors and Smokeasies

Nightlife News for January 13th, 2009

By Gamal Hennessy

Is Squadron in a position to carry out his plans?
Roy Edroso of the Village Voice reports that new Democratic State Senator Daniel Squadron has been chosen to head the cites committee of the New York State Senate. Given his anti-nightlife position during the election, the question is will the new position but Mr. Squadron is a position to carry out his Nightlife Control Plan?

Club security guard sentenced for kidnapping charge
Darryl Littlejohn got 25 years for stuffing Shanai Woodward into a van. He still claims he’s innocent and that his trial was unfair because his name was also linked to the Imette St. Guillen kidnapping, rape and murder. Newsday.com didn’t specify when the St. Guillen case will be tried, but Littlejohn will continue to be a bad example of security the industry will have to deal with

Does the SLA need more inspectors?
A TV station in New York might have found the reason why liquor licenses are so hard to get. According to a spokesman for the SLA, there are only 21 SLA examiners in the whole state, and they process over 6,500 applications per year. But if New York needs to create jobs in a recession, and liquor licenses can create more jobs, why not hire more inspectors?

Watch out for the DOH before you light up
Grub Street has confirmed that the Department of Health has been conducting more raids and handing out more fines for venues that violate the smoking ban. The raids might be in response to more venues turning a blind eye to smoking in 2008, so smoking might become a contentious nightlife issue again six years into the ban.

What do you think? Should we worry about Squadron? What will it take to get more SLA inspectors? Will the DOH crackdown lead to club closings? Add a comment and let us know.

Have fun.
Gamal

Did New York Nightlife Lose the Election?

By Gamal Hennessy

Clubs were full last Tuesday night celebrating the historic victory of this country’s first black president and began counting down the final days of our worst president. While the tears and champagne were flowing, few people realized that a new player is also coming to Brooklyn, one with a distinct anti-nightlife platform and powerful supporters. Did the election we celebrated give rise to a new enemy to nightlife?

On Monday I got an email from a nightlife operator with a link to Daniel Squadron’s Nightlife Control Plan. I didn’t know who Mr. Squadron was, but I read his plan and I didn’t like what he had to say. No one involved in nightlife, who has seen the rise in power of the community boards, or understands the arbitrary way some boards operate would take the position that CB’s need to have more power without accountability or capriciously decide that any area has “too many bars” and essentially cripple on of the few industries that can continue to bring revenue into the city during an economic downturn. I came to the conclusion that I didn’t support Mr. Squadron. I also quickly understood that my support didn’t matter all that much. I didn’t live in his district and I only found out about him a day before the election. There was no time to get the word out and mobilize support against his election.

So spent the next few days following Sun Tzu’s advice and started to find out more about the new state senator.

It appears that Daniel Squadron is the son of influential attorney Howard Squadron and the former aide to U.S. Senator Charles Schumer. His campaign against the 30 year incumbent Martin Connor received endorsements both from political heavyweights like Schumer and Mayor Bloomberg and from local community groups seeking change. The following is a comment taken from The Brooklyn Paper

Daniel Squadron has the endorsement of almost all the Williamsburg leaders and newspapers this week. Folks, we need fresh blood. The coming years will see budget cuts because of lower government incomes. We need young fresh faces that have no old liabilities to fight for our rights...Lets all come out en mass and vote Daniel Squadron

It also appears that Mr. Squadron has links to nightlife that pre-date his Nightlife Control Plan. Based on his account given in July of this year, he once owned a nightlife establishment in the city. This should give him an idea of the pressures and difficulties in owning a New York bar. It should also help him understand the perspective on the community boards and police in relation to the clubs.

But if he does understand what nightlife operators are going through, where does the Nightlife Control Plan come from? Why is it worded to help the community boards restrain bars, but doesn’t openly mention actual standards of proof for them? Does his plan offer the venues protection and support, recognize them for the cultural and financial impact they have on the city? Will his plan build on the strides made by police and operators to keep the city safe or will it drive a deeper wedge between the two sides?

Since Daniel Squadron is the elected senator in Lower Manhattan and he does have substantial political allies, it is not inconceivable that his Nightlife Control Plan will evolve into a law. We can hope that the state senate understands the benefits of New York clubs and reject overly stringent controls. We can hope that lobbyist from the nightlife industry deliver the message that nightlife needs support as well as control. And all of us, especially me, can keep a closer eye on the people who claim to speak for our best interests.

Have fun.
Gamal

What’s Going on Inside the Box?

By Gamal Hennessy

The future looks uncertain for the downtown cabaret known as The Box. Once seen as a symbol of a new era in nightlife, it quickly became known for celebrity bottle service and risqué burlesque shows. Now it is under attack from local residents and its own staff. Will it weather the current storm? Do we want it to?

Originally conceived as dinner theater and not a club, The Box opened in offering high priced sexually charged performances like “Twincest” from the Porcelain Twinz and other members of the Hammerstein Beauties. It quickly became a magnet for celebrities and celebrity watchers.

But less than two years after its opening, the club (or if you prefer dinner theater) is under siege. From the outside, community board 3 has made threats against its liquor license, claiming that the traffic problems and noise that the Box generates make it undesirable. From the inside, there are threats of a lawsuit from the Twinz who claim the Box has “…unsafe working conditions, prostitutes on staff, in house drug dealing, open drug use throughout the club, and coerced sex with management as a condition of continued employment…”

The owners of the Box have issued a public defense of what they describe as their creative practices, and they are working with the community board to resolve the outstanding issues before their application goes back before the board in October. While a member of the board has stated that the possible employment suit is brought to the attention of the State Liquor Authority, it is not brought before the board in relation to the license.

Is the Box a victim of disgruntled workers and anti-social residents? Or is it an abusive pit of sex and drugs? Or is it both? The problem with cases like the Box is that the truth is often at the mercy of personal perception and it might be impossible to find out. New York Nights is an advocate of the nightlife industry, but we only support venues that add to the quality of nightlife in the city. Clubs that leave our nightlife open to public attack need to close. Anti-nightlife advocates create their own reasons for wanting clubs closed. We don’t have to help them by playing into their stereotypes.

Have fun.
Gamal

Source: Allen Salkin: New York Times

Give us your opinion on what’s going on. Use the comments space below to tell people what you think.

Housing Slump Could Help New York Clubs

By Gamal Hennessy

There are several new buildings going up in areas that were once very hospitable for nightlife. From the Lower East Side to the Meatpacking District to Grammercy Park to West Chelsea, new buildings are rising every month. Even though the prices for New York real estate are extreme, we’ve largely been spared from the effects of the national housing slump up to now. Some have tied the increase in luxury residences to increased conflict between residents and certain clubs. But the money for condos and co-ops is starting to dry up. Does this mean that there will be fewer calls for nightclub closures and more opportunity for nightlife real estate?

Background

The amount of residential real estate in New York has risen steadily since 2001 when commercial firms moved out of the city following the terrorist attacks. More demand led to increase desire for space. The weakening of the national housing market as a result of the sub prime crisis did little to decrease demand in New York, primarily because financial professionals and foreign buyers taking advantage of the weak dollar continued to buy. As real estate developers looked for more space to build, nightlife venues became attractive targets and the nightlife community became an obstacle to their growth. Some nightlife professionals have suggested that the influx of upscale residents has created an oppressive atmosphere for clubs.

The struggle between residents and nightlife wasn’t created by the housing boom. Clubs can contribute to traffic, noise and incidents requiring a police presence. Previous residents have been vocal about their needs in the past. The difference between the previous situation and the current one is that some luxury residents actively attempt to change the nature of the neighborhoods that they have paid so much to live in. Using the liquor licensing process as a tool, nightclubs and bars have been closed, forced to operate with reduced hours, or they haven’t been able to open at all.

New Situation

But the residential real estate market in New York might be following the rest of the country. Sales to foreign buyers, which recently accounted for up to 33% of new condo sales, is falling. Hedge fund managers and other financial professionals aren’t getting the bonuses that traditionally spurred purchasing. This means that many of the buildings going up today might not have a long list of buyers when they are finished.

What does this mean for New York nightlife? The results might not be immediately apparent. Clubs will still have to work with community boards and current residents who have moved into club neighborhoods. The rents that bars and clubs have to pay will continue to eat up a significant chunk of revenue, which means bottle service and other things we pay for will reflect those prices. But it could mean that there is less desire to convert club spaces into condos and an increased recognition of the continuing economic strength of clubs. Unlike most other types of commercial activity, New York nightlife attracts visitors and money from all over the world and will continue to do so even as the housing market dries up.

Have fun.
Gamal

Roxy Reloaded? The Latest Nightlife Battle

A new chapter is developing in the ongoing conflict between nightlife and local community boards. The Roxy, one of the last major clubs of the 80’s and 90’s is trying to reopen. This week an initial meeting was held to secure the all important liquor license. Later this month, community board 4 will meet to vote on their recommendation to the State Liquor Authority. Will this vote mark a turning point in the nightlife landscape or will the industry be dealt another tough blow?

Roxy was one of the premier clubs in the city, mentioned in the same breath as Limelight, Palladium and Studio 54. Unlike most of those venues, it managed to stay open until 2007 even though it was a magnet for local complaints. When the club closed, industry insiders expected the space to be sold to real estate developers who would turn the space into condos and office space. That doesn’t seem to be happening. Either the real estate deal fell through or the owners saw another good reason to try and reopen the club. The question now is whether the local community board will agree.

Residential real estate developments have been encroaching on areas traditionally occupied by nightlife. You only have to look at the condos going up in the Lower East Side, The Meatpacking District and Chelsea to see evidence of the condos replacing the clubs. There are fewer spaces for large clubs and more demands to curtail nightlife for the sake of new affluent residents. We think New York needs clubs like the Roxy, if only for the roller skating parties. This might be the time for us to contact the SLA and tell them what we think.

The Cops Chase Weed. The SLA Holds Back.

Nightlife News for May 6, 2008

Crime: Cops Hooked on Pot
Government: SLA Holding Business Down