Sacramento Restaurants Pay Less After Entertainment Permit Changes

For Sacramento brewery co-owner
Katie Cooper, live entertainment isn’t just fun; it’s essential
for her business. Mattie Groves Brewery
in Midtown regularly hosts events
that draw in customers, but some require an entertainment permit
from the city. Operating without one could lead to warnings and
fines from $250 to $25,000 for each day until the code violation
is resolved. The Sacramento Code Compliance Division generally
operates on complaints, so Cooper took a calculated risk. She
isn’t the only one.

“We’ve been aware since we opened
that a lot of places do this, and so it’s generally okay, but
technically is not permitted by city rules and regulations,”
Cooper says. “That’s always been stressful. And obviously, we
want to be compliant, but the entertainment licensing and
permitting as it was previously was very expensive and onerous,
and it was just not realistic for a business at our
scale.”

For over two decades, businesses
both big and small in Sacramento had to pay thousands and undergo
a rigorous permit application process if they wanted to host a
concert or show. But over the summer a new ordinance created a
three-tiered system, making it faster and cheaper for
restaurants, bars and cafes to get live entertainment
permits.

The city instituted its previous
entertainment permit in 2003. As of last year, it cost $1,722 to
obtain and $1,331 to renew a permit, along with other associated
fees. Permits initially last two years; after one two-year
extension, qualified permit holders could apply for another
two-year extension at no cost. There were typically around 70
permit holders at any given time, say city officials. The costs
and strict review process deterred some would-be applicants.
“This one-size-fits-all kind of approach to entertainment was,
quite frankly, being too restrictive on some businesses,” says
Dustin Hollingsworth, assistant director of the city’s Convention
and Cultural Services, which oversees the entertainment
permits.

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In March, the city council
approved an ordinance that created a new entertainment permit
system. At that time, program management was transferred from the
Office of Nighttime Economy to the recently created Entertainment
Services Division, both under CCS. In May, the fees

for the three
tiers were set: $2,230
for a general permit, $1,820 for a temporary permit (for one-time
events) and $750 for a limited permit, which are for venues where
entertainment is a secondary operation and the maximum occupancy
is under 300. With the limited permit, shows must end at 10 p.m.
weekdays, 11 p.m. weekends. The application review process is
more relaxed compared to those for the general and temporary
permits.

Permit applications

opened at the end of
July. Once the
previous one-size-fits-all permits expire, businesses will have
to apply for the general or limited permits. Both permit types
last two years. The renewal fee is $1,720 for general and $650
for limited. As with the previous permits, renewals for the new
permits last two years and can be extended to four years at no
charge.

Even quieter showcases of talent
like comedians, dancers, hypnotists, magicians, mimes and
theatrical performances require a limited permit. However,
the
March ordinance
created plenty of exemptions.
Recorded music played in the background over the radio, a jukebox
or any kind of electronic device is free. But if there’s a DJ
present, that requires a permit. Live musicians playing in the
background are also free, so long as the sound isn’t amplified
and doesn’t require a ticket to experience. Spoken word events
including book signings/readings, poetry recitations and trivia
contests are also exempt.

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The city intends for the more
accessible limited permit to draw in new applicants, eventually
growing to around 30 to 50 holders in total. But four months
after launch, only three businesses have applied. Officials
attribute this to a lack of public awareness in spite of media
coverage and public announcements. “We’d like to see a better
public response,” Hollingsworth says. “Everybody seems excited
about it, but the applications that are coming in aren’t a
complete reflection of that.” The city will launch an
informational campaign sometime next year.

Documents obtained via public
records requests show the three limited permit applicants are
Uncle Vito’s Slice of NY, the Brazilian cafe Tupi and the
ax-throwing lounge ForePlay. The owners of the pizzeria did not
respond to interview requests, but owners of the other two said
they applied only after discussions with the city.

Back in September,
ForePlay owner Doug Link was hosting a DJ for a
private event when code enforcement stopped by. DJs have
occasionally performed at the K Street bar in recent years, but
this was the first time Link received a citation for having
entertainment without a permit. He was surprised, calling it “a
kick in the ass.” Link quickly got to work remedying the issue
but struggled. He said the old entertainment permit didn’t seem
worth the effort and was “outrageously expensive.” But then
someone told him about the new limited permit, and his
application was approved within six weeks of submission.

“It
definitely opens the door for when I have private parties for
them to be able to have a DJ in there, and I don’t feel like I’m
breaking any rules. I like doing things the right way. I don’t
want there to be issues,” Link says.

As for the Entertainment Services
Division, Link emphasized, “they were all a pleasure to work
with, and they more than met their deadlines. And I’m very
pleased, and I don’t get the chance to say that a lot with the
city of Sacramento, so I would like to say it here.”

Eduardo Faustino, owner of Tupi,
also had a positive experience with the city. He has hosted live
music on Tupi’s rooftop bar without a permit for over a year,
which he says the city was aware of. In September, when the city
reached out to inform him of the limited entertainment permit, he
applied to ensure his business was aboveboard. Faustino said he
wishes the fees were cheaper, but for him it’s worth the
money.

Related article: Neighborhood
Favorite: Tupi Coffee

“Having entertainment, it’s
something that helps the rooftop get business,” Faustino says.
“And for us, it’s very necessary to have that kind of freedom. I
just want to make sure that we are compliant with the city
code.”

With the limited permit, Faustino
plans to host more live music, especially DJs and bossa nova and
jazz bands. He said entertainment helps draw in customers and
supports local talent. “For us, it’s always a win to have live
music.” Over time he hopes to establish Tupi as a place known for
“good music, good food, chill vibes.”

A year
ago, the Crest Theatre expressed interest in getting a limited
permit to possibly host a guitarist or pianist at its Empress
Tavern once a week. The idea was put on hold for the time being.
Owner Robert Emerick in an email said his management team could
change their mind someday, but even so, they’ll ensure the
exemption requirements for background performance will be met,
making a permit unnecessary.

As for Cooper and her brewery,
each week they currently host a game night, a trivia night (both
exempt from the permit) and an open-mic night, which does require
a permit. Unlike the old system, Cooper said the limited permit
seems “attainable,” and she plans to apply before the new year.
Maybe someday the brewery could host concerts or ticketed shows.
For now, Cooper needs to save up to cover the application
fees.

“I know it doesn’t sound like a
lot, but dishing out $750 is something that just takes some
planning and some coordination,” Cooper says. “For us, we’re
running a tight ship, so we just need to save up a little
bit.”

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