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Councilmember Thorne asked whether any other clubs or bars in Pleasanton have a similar occupancy and if the Police Department is confident in its ability to address any situation that could arise with a crowd of 300. Chief Spiller estimated this to be the largest facility, in terms of both size and occupancy, but did feel confident that the Department's resources and mutual aid protocols would be sufficient. Councilmember Thorne questioned the reasoning behind the 30-day period. Mr. Dolan said staff would be open to any timeframe, which would begin following a decision by the Council. Mayor Hosterman opened the public hearing. Gene Havrilenko, Property Manager of Gateway Square Shopping Center, said that the effects of the Commission's decision reach beyond the club's operator to the ownership group. Since reducing the occupancy from 812 to 300 persons, the operator has made no rent payments and indicated that there are not likely to be any forthcoming. Club Neo occupies 10,230 of the center's 87,000 square feet, making this a significant impact on the center's revenue. He asked that the Council reconsider the Commission's recommendation and compromise with occupancy of 500 or 550. George Mull, Diamond Pleasanton Enterprise, Inc., appellant, disagreed with staff's allegations that the club has violated its conditions of approval. The club has operated since September 2010 without issue, until these two isolated incidents in recent months. Club staff has worked with the City and Police Department to mitigate impacts. He attributed the incidents, as well as the City's decision to reduce occupancy, to the significant increase in African American patrons since November 2011. He cautioned the Council that upholding the Commission's decision places both him and the City at risk of violating the Civil Rights Act of 1964. Mayor Hosterman cautioned Mr. Mull to be careful in his characterizations. Mr. Mull said the City's racially motivated attitude is anti-business, and anti-development. The operators' $500,000 investment in the club is at risk, as the club can simply not operate in this size space with such a low occupancy. He asked that they reach some sort of compromise on a larger and more viable occupancy. Mayor Hosterman closed the public hearing. She noted that the appellant has already sued the City and cautioned the Council not to respond to any of Mr. Mull's comments. The Council's duty in this hearing is to respond to what are clearly significant health and safety issues. She moved the staff recommendation, making it clear that the operator is welcome to request a change to the conditions in the future, following a period of positive performance. Councilmember Thorne said he recently rode with the Police Department on a Saturday night and was startled by the amount of activity. He doubted that the City had the resources to address any use with an occupancy of 800. He said he would prefer a minimum review period of 60 days, but could support 30. Councilmember Cook-Kallio said she read the report thoroughly and was struck by the number of incidences (nine or ten) that had occurred over the course of several months. Staff's narrative makes is clear that the business owner and Police Department were aware of the issue. She asked if the operator had ever turned over security footage from the night of the shooting. Chief Spiller did not believe so and cited damage to the operator's surveillance equipment. City Council Minutes Page 4 of 6 April 3,2012