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Public Safety & Quality of Life

229 West 28th Street, 28 SG Hospitality Group LLC, dba: Flash Factory. Application for a new cabaret license.

WHEREAS, Michael Satsky, on behalf of SG Hospitality Group LLC ("Applicant"), has notified Community Board Five of its intention to file for a new cabaret license for the nightclub located at 229 East 28th Street, New York, New York (the "Premises"); and

WHEREAS, The Premises consists of approximately 8000 square feet of indoor space on the ground floor and mezzanine; and

WHEREAS, The Premises includes no outdoor space; and

WHEREAS, The Premises is operated as a nightclub and private event space, with a total of 20 tables, 94 seats and 27 bar stools; with operating hours of Thursday through Saturday nights 10:00PM to 4:00AM and occasionally Sunday through Wednesday nights from 10:00PM to 4:00AM; and

WHEREAS, The total capacity of the Premises is 525 as limited by the Public Assembly Permit and valid Certificate of Occupancy; and

WHEREAS, The Premises includes 2 patron bars, no service bar, and no kitchen; and

WHEREAS, The liquor license for the Premises was approved by CB5 in March 2013 subject to certain conditions and restrictions agreed to by Applicant, which conditions and restrictions are hereby amended and restated; and

WHEREAS, In order to obtain a cabaret license, the Applicant must apply for an alteration to the existing method of operation with the State Liquor Authority; and

WHEREAS, Applicant has agreed that Applicant shall:

  1. operate the premises as a Nightclub / Event Space with seating and standing areas;
  2. forgo the use of promoters and (i) at all times be responsible for, and in complete control of the premises and patrons and (ii) and all material positions of operating shall be the employees of the Licensee at all times;
  3. maintain adequate security at the Premises at all times in the proportion of one security personnel for every 50 patrons, thus requiring ten security personnel for the expected occupancy, to (i) maintain order both inside and outside of the Premises; (ii) ensure that patrons enter and leave the Premises in a peaceful, quiet and respectful manner; (iii) discourage patrons from congregating outside the Premises, and (iv) use best efforts to clear the area outside the Premises of all patrons immediately after closing;
  4. allow exterior queuing only for purposes of maintaining legal capacity and only so long as Applicant has an employee responsible for maintaining the orderliness of patrons;
  5. maintain an outdoor smoking area in front of the Premises, provided it is permitted by all applicable zoning, building, fire and other codes, rules and regulations, and will encourage its customers to use that area for smoking and cell phone use and shall discourage customers from loitering outside the Premises in the vicinity of any residential buildings; with smoking area to be monitored by a security presence;
  6. agree to install used-cigarette receptacles in front of Premises, if in compliance with the law, and use best efforts to maintain cleanliness of sidewalk in front of Premises;
  7. arrange for private garbage pickup and its garbage will be stored in a manner so as not to cause a disturbance or annoyance to neighbors; 
  8. discourage the idling of cabs, limousines, and other vehicles on the street in front of the Premises;
  9. provide a 24-hour hotline to a live manager or owner to immediately address any complaints from the community, and agree to meet with neighbors and CB5 if requested;
  10. provide 72 hours' notice, and as much notice as possible in extenuating circumstances,, to all residential and business neighbors located on 28th Street between 7th and 8th avenues, of any special events that will require extended queuing that will results in the partial or complete blockage of the sidewalk directly in front of Premises; 

  11. strictly comply with and adhere to the plans for the operation of the business, as set forth herein; 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 Michael Satsky ever contemplate a transfer of his interest in Applicant so that he 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 SG Hospitality Group LLC ("Applicant"), has notified Community Board Five of its intention to file for a new cabaret license for the nightclub located at 229 East 28th Street, New York, New York, unless the above conditions are adhered to and are incorporated into the method of operation of the State Liquor Authority alteration application.

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