What's Next for City's Bistro Ordinance

, the consensus was simple when it came to discussion of the city’s bistro ordinance: Something has to change.

From concern for the city’s retail community to discussion about changing the approval process, city representatives spent nearly two hours discussing the 2007 ordinance, which has introduced four boutique restaurants to the city’s dining scene with three more on the way.

Not familiar with the bistro ordinance? Here’s what you need to know about its history, what it has done and where it’s going.

The history

The city adopted the Bistro Ordinance, No. 1929, on April 16, 2007. The city defines a bistro as a restaurant with a full-service kitchen, seating for no more than 65 inside and additional space for outdoor dining. According to the bistro ordinance — adopted in 2007 — the city approves only two bistro licenses a year.

The following are the 13 restaurants currently designated as bistros in Birmingham:

• (2010)
• (2007)
• (2011)
• (2010)
• (2007)
• (2007)
• (20o7)
• (2009)
• (2007)
• (2007)
• (2009)
• (2008)
• (2011)

Cosi, Elie's, Papa Joe's and Salvatore Scallopini were the four existing establishments that received a liquor license under the bistro ordinance in 2007. The Cole Street Kitchen project, meanwhile, went defunct earlier this year.

According to a market analysis completed by the Principal Shopping District (PSD) in late 2006 and early 2007, there were 50 food and liquor establishments in the city at the time. Now, there are 43.

At the time, the PSD concluded that, "Overall, we believe that it is advantageous to add restaurants, specialty bars and/or bistros to strengthen the mix and make downtown Birmingham the dominant destination in the trade area for restaurants, bars and entertainment."

A 2007 directional survey by the city of a cross-section of Birmingham businesses found that:

• More than 60 percent of responding businesses owned a retail establishment, while only 12 percent owned and operated restaurants.
• Fifty percent of respondents there were "just enough" restaurants in town. Thirty-three of respondents said there was room for more, while 14 percent said there were too many.
• When asked about the current direction and development of downtown Birmingham, 34 percent of respondents said the city is doing well, while 40 percent noted the city is average and could be doing better.
• In addition, only 37 percent of respondents said there was a good balance between retail and restaurants, while 47 percent there aren't enough retail establishments.

The problems

After weeks of discussing the bistro ordinance at length during study sessions, the Planning Board identified several issues with the ordianance. Board members and commissioners agreed on several problems with the ordinance as is:

First-come, first-served: Currently, the city approves two bistro licenses per year and hears applications in the order they're brought before the commission. As a result, both licenses for 2011 were awarded in January and April. Mayor Pro Tem Mark Nickita noted: "I can easily see this becoming an issue in the future as people rush to the front of the line."

In addition, Nickita said the city needs the "best and brightest" of bistro applicants, not necessarily those with the most money to submit early.

Determining the ideal number of bistros: Several city representatives questioned whether they should determine the ideal number of bistro licenses to preserve competition. As Commissioner Scott Moore said, it comes to down to a question of "social engineering versus the marketplace."

In addition, resident Alice Thim said leaving the door open to bistros could be potentially damaging to the city. "Residents don't want Birmingham to be an entertainment location," she said. "We have an identity in Birmingham. I want to see it enhanced, but I don't want to necessarily see it changed."

Restricting location: With the majority of bistros located in the city's downtown, Planning Board member Bryon Williams suggested restricting the location of potential bistros to less-developed sectors of the city, such as the Triangle and Rail District.

Promoting variety: Planning Board members suggested paying attention to the kind of cuisine — as well as the price points — looking to move into town. The city should be considering young people as well as experienced restaurateurs, board member Bert Koseck said, and not necessarily "another place to buy a $38 steak."

Commissioner Rackeline Hoff said she thought the ordinance was working as expected, though there was room for improvement.

"I happen to think it's worked out pretty well up to this point," Hoff said.

The next step

Nickita said the next step for city staff should be information-gathering, especially considering how much the economy has changed since 2007.

"I don't think we're necessarily prepared to say this or that without some more information," he said.

Some representatives proposed an RFP (request for proposal) process to replace the current first-come, first-served system, such as a plan that would set aside two periods during the year in which the city could consider potential bistros from a pool of applicants.

Commissioners were wary about moving forward on changing anything too soon, especially considering the number of applicants who need to move forward on plans.

"Jana gets people coming in all the time," said Planning Board Chairman Robin Boyle. "If we tell them they have to wait, they might pull out."

In addition, commissioners and board members discussed pushing up the application process to give city staff more time to potentially weed out less-than-desirable applicants.

Attorney Kelly Allen, who has represented several bistro applicants, said moving the application process up was good idea, though she noted that an RFP process could definitely scare people off.

"Landlords don't want to wait for six months," Allen said.

At the end of the night, City Manager Bob Bruner said city staff had more than enough information to consider going forward. All were in agreement that a regular review process, as well as continued analysis of Birmingham's economic scene, was absolutely necessary.

"We need to be aggressive about who are and who want to be on an annual basis," Moore said.

Williams agreed. "If we're going to be successful in the long run, we have to have everyone involved in the process."