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Public Safety & Quality of Life

PRANA HOSPITALITY INC. D/B/A "PRANNA", 79 MADISON AVENUE ), APPLICATION FOR ALTERATION TO AN EXISTING ON PREMISES LIQUOR LICENSE; and ZIYA RESTAURANT INC. D/B/A "ZIYAA", 79 MADISON AVENUE APPLICATION FOR A NEW ON PREMISES LIQUOR LICENSE

WHEREAS, PAYAL SHARMA, on behalf of PRANNA HOSPITALITY INC. (the "Prana Applicant"), has notified Community Board Five of its intention to alter their existing liquor license (the "Alteration Application") for Pranna Restaurant, located at 79 Madison Avenue, New York, New York (the "Pranna Premises"); and

WHEREAS, PAYAL SHARMA, on behalf of ZIYA RESTAURANT INC. (the "Ziya Applicant"), has notified Community Board Five of its intention to apply for a new on-premises liquor license (the "New License Application") for Ziyaa Restaurant, located at 79 Madison Avenue, New York, New York, (the "Ziyaa Premises"); and

WHEREAS, The Prana Applicant and the Ziya Applicant are hereinafter collectively referred to as the "Applicant" and the Pranna Premises and the Ziyaa Premises are hereinafter collectively referred to as the "Premises"; and

WHEREAS, A portion of the Pranna Premises will be subdivided and added to newly acquired adjacent space to form the Ziyaa Premises; and

WHEREAS, The remaining portion of the Pranna Premises will operate as Pranna in accordance with the September 2014 stipulations attached hereto as Exhibit A (the "Existing Pranna Stipulations") until no later than Jan 5, 2016, at which time the Prana Applicant will surrender its liquor licenses to the NY State Liquor Authority and cease operating as Pranna Restaurant; and

WHEREAS, Applicant has executed and delivered the affidavit attached hereto as Exhibit B, which affidavit includes an irrevocable escrow agreement by Prana Applicant attached thereto  (the "Surrender Agreement"), by which agreement the Pranna liquor licenses will be surrendered in accordance with the terms thereof; and

WHEREAS, The newly created Ziyaa Premises will consist of a ground floor and mezzanine (approximately 2,140 square feet on the ground floor (not including the kitchen), and approximately 1,033 square feet on the mezzanine) and a basement; and

WHEREAS, The basement of the Ziyaa Premises will be back of house and storage only, and will not be used for patron use; and

WHEREAS, The maximum occupancy for the Ziyaa Premises is 272 with 186 being the maximum occupancy for the ground floor and 86 on the mezzanine; and

WHEREAS, The Ziyaa Premises will have 80 tables, 261 chairs, 1 service bar, and 11 bar stools on the ground floor; there will be no stand-up bar on the main floor; and

WHEREAS, The Ziyaa Premises will have only one stand-up bar on the mezzanine and 11 bar stools; and

WHEREAS, Applicant has agreed that Applicant shall:

a)      Operate the Pranna Premises in compliance with the Existing Pranna Stipulations, as supervised and enforced by an independent monitor reasonably satisfactory to CB5 (it is hereby stipulated that John Dabrowski is acceptable) until no later than January 5, 2016 or earlier as provided in the Surrender Agreement;

b)      Operate the Ziyaa Premises as an upscale Indian restaurant.  The kitchen will be in the charge of a chef, initially intended to be Chef Ajay Chopra, or another similarly qualified chef with an upscale, fine-dining background. The menu, wine list and service proposition will all be aligned to present Ziyaa as a premier dining destination in the neighborhood and in New York City. As part of this new beginning, all bartenders and servers will be new hires and not former employees of Pranna Restaurant;

c)      Use a sound engineer and follow all recommendation in the sound engineering report to ensure sound in the Ziyaa Premises cannot be heard on the street at any time and such sound shall be limited to "background music" levels. Furthermore, level controls shall be located in a facility accessible only to management and shall not be capable of being changed by any DJ or performer;

d)      Install an electronic limiter in the Ziyaa Premises to ensure that no volume louder than "background music" level (other than private events) which shall be defined as a level that would allow for conversation without strain;

e)      Not serve "bottomless or unlimited drinks" in the Ziyaa Premises, to be defined as unlimited amounts of any alcoholic beverage in a given time period, and will provide CB5 with a written policy on how the staff plans to stop the over-serving of patrons (however private events can include unlimited liquor service);

f)       Not provide "bottle service" (other than wines or champagne) in the Ziyaa Premises during any part of service;

g)      Honor the cabaret law and will ensure that no one in the Ziyaa Premises is dancing at any time when the premises are open to the public;

h)      Not have more than three private events per month in the Ziyaa Premises, not including private events within regular operating hours and when no DJ is used. A private event for the purposes of these stipulations will consist of a full or partial buyout of the premises;

i)        Only use background recorded music only in the Ziyaa Premises. There will be no live music or DJ, except during the three private events allowed each month to include a DJ or live music, which music during private events may be at a volume above background level;

j)        At no time during operations of the Ziyaa Premises, whether open to the public or for a private event use a third party promoter at any time;

k)      Permanently waive any right to apply for a cabaret license for the Ziyaa Premises;

l)        Not make any physical alteration to the Ziyaa Premises (other than minor alterations as defined by the Alcoholic Beverage Control Law) or change in method of operation as described herein without prior written approval of Community Board 5;

m)    Meet with neighbors and appear before the Public Safety and Quality of Life committee of Community Board 5 as requested from time to time;

n)      Distribute the direct contact number for operating management of the Ziyaa Premises to members of the community so that a person with authority can be reached during all hours of operation;

p)      At all times remain responsible for and in complete control of the Ziyaa Premises and its patrons;

q)      Operate the Ziyaa Premises under the following hours:

  1. Monday – Thursday 12pm to no later than 12am;
  2. Friday and Saturday 12pm to no later than 1am;
  3. Exception to stay open on Friday and Saturday not later than 2am for one of three approved monthly private events;
  4. Sunday 12pm to not later than 11pm; and
  5. Until no later than 4am on New Year's Eve;

r)       Strictly comply with and adhere to the plans for the operation of the Ziyaa Premises, as set forth herein;

s)       Ensure that all Ziyaa bartenders and servers are TIPS trained;

t)        Not utilize an exterior "velvet rope" door policy or allow any form of exterior queuing at the Ziyaa Premises;

u)      Provided it is permitted by all applicable zoning, building, fire and other codes, rules and regulations, Applicant will encourage customers of the Ziyaa Premises to use an outdoor area on the side of the Premises for smoking and shall discourage customers from loitering outside the Premises on 28th Street;

v)      Not change the method of operation of the Ziyaa Premises or engage in a change of control of the Ziya Applicant unless and until prior approval is granted by Community Board 5 in writing, and approval is obtained by the New York State Liquor Authority as required by law; and

w)    Not use DJs for any part of the operation of the Ziyaa Premises for private events or otherwise, for a period of three months from the first day of operation at Ziyaa Restaurant; and

WHEREAS, Should Applicant ever contemplate a transfer of its interest in the operation at the Premises ("transfer" being deemed to include a change in control of an entity or the transfer of a majority interest in an entity), Applicant shall notify CB5 before such transfer is made and shall require any transferee to agree to the conditions and stipulations contained herein; and

WHEREAS, Should Payal Sharma ever contemplate a transfer of her interest in Applicant so that she does not have a controlling management interest in Applicant ("transfer" being deemed to include a change in control of an entity or the transfer of a majority interest in an entity), notice shall be given to CB5 before such transfer is made and any transferee shall be required to agree to the conditions and stipulations contained herein; and

WHEREAS, Members of the public appeared and commented regarding this application and the comments and concerns of the community were taken into consideration in negotiating these conditions and stipulations; and

WHEREAS, These agreements, stipulations and conditions will be incorporated into the Method of Operation as part of the liquor license renewal application submitted by Applicant to the New York State Liquor Authority, a copy of which shall be simultaneously submitted to CB5; therefore be it

RESOLVED, Community Board Five recommends denial of the application by PRANA HOSPITALITY INC. to alter their existing liquor license for Pranna restaurant, bar, and lounge located at 79 Madison Avenue (between 28th and 29th Streets), New York, New York unless the above conditions are adhered to and are incorporated into the method of operation of the State Liquor Authority application; and be it further

RESOLVED, Community Board Five recommends denial of the application by ZIYA RESTAURANT INC. for a new liquor license for Ziyaa Restaurant located at 79 Madison Avenue (between 28th and 29th Streets), New York, New York unless the above conditions are adhered to and are incorporated into the method of operation of the State Liquor Authority application.

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