Plans for Pacific Beach rooftop bar stirs controversy

PACIFIC BEACH – The question of whether Pacific Beach has too many bars and alcohol licenses, contributing to crime, has resurfaced.

This time, the controversy centers around the Waterbar at 4325 Ocean Blvd., which started the permitting process to expand and take advantage of more usable space on its rooftop, offering ocean views.

On the other side is longtime PB resident Scott Chipman, an environmental designer, local planner, and community activist. For years, he has fought against the issuance of any more alcohol licenses in the beach community. PB is known historically for its youthful crowds and high alcohol-related crime rates.

But Waterbar co-owner Todd Brown pointed out that times have changed. Young people’s tastes have changed. He noted they’re going out and drinking less, and this has created new challenges for PB restaurateurs struggling to survive.

“Although there are several third-story rooftop eateries in La Jolla, we are not aware of one that is truly oceanfront,” said Brown. “This project would provide Pacific Beach with a very unique opportunity for residents, hotels, and beachgoers.

“With the tremendous operational cost increases that have occurred since COVID, our industry, like many other small businesses, has had a difficult time keeping up. Labor, insurance, and overall inflation have made operational margins thinner than ever in the last 35 years.”  

“Unfortunately, going out to dinner is one of the first things to get cut out or scaled back in the budget,” Brown added. “Just go to the grocery store and look at the prices and how they have increased in just the last year.

“There are fewer restaurants and bars in Pacific Beach now, after many closures, than I can remember. This winter looks to be a very challenging time as well. Waterbar and Pacific Beach need more truly special attractions to get on the radar when people decide on a night out,” Brown said.

Chipman, for his part, was unconvinced. “Why has the Pacific Beach business district made the community the second-highest violent crime community in the city for decades?” he asked.

“Because many family-oriented restaurants have become bars and sports bars masquerading as restaurants or operating like a restaurant until dinner time is over, then operating as a nightclub for the rest of the night, or until 2 a.m.”

Chipman pointed out that Waterbar “has two bars now, and the owners are asking approval for a third bar on the roof. A ‘bar,’ by definition, is a business that serves alcoholic beverages, and sometimes food, to the public.

“The ABC license type is a 47, also known as an ‘On-Sale General – Eating Place’ license, allowing a restaurant or eating establishment to sell beer, wine, and distilled spirits for consumption on the premises. A key requirement is that the business must operate as a ‘bona fide eating place,’ meaning at least 50% of its gross sales must come from food,” Chipman said.

Therein lies the problem, he contends. “There are no forensic audits to determine if food sales are exceeding alcohol sales,” he said. “And with three bars, common sense would say this ‘restaurant’ will not be in compliance.”

This is just the same argument that has been going on for decades, Brown said.

“The people opposing this project are the same people who have opposed anything to do with alcohol and the hospitality industry in Pacific Beach for the last 25 years,” Brown said.

“They have always been very good at utilizing local media to make it seem as though they represent a much larger segment of Pacific Beach residents than they actually do or ever have. Instead of trying to work with the hospitality industry to mitigate concerns and encourage responsible alcohol practices, they have chosen to attack local businesses.

“How creating an open-air, ocean-front eatery with amazing views will bring crime to Pacific Beach is unexplainable and unrealistic,” Brown said.

“As people who live in PB, currently own property in PB, employ thousands of San Diegans who are good, hard-working people invested in the community, we take both community feedback and our responsibilities to PB very seriously and look forward to contributing towards the betterment of PB.”

Chipman contends that an oversaturation of alcohol licenses in PB has tainted the community’s public image. “The people of PB and the city at large now often refer to the ‘bar district of PB,’” he said. “Not ‘The restaurants that serve alcoholic drinks with meals district.’”

Chipman added: “There is no ‘bar district,’ nor ‘entertainment district.’ This is a neighborhood business district, and the direction businesses have been going is driving away the community and elevating crime levels. PB business district crime and alcohol-related problems have grown one decision at a time.

“You have to consider the cumulative impacts of each of these decisions. In order not to contribute to the already high alcohol-fueled crime, we suggest a condition of no alcohol service upstairs, and on-site security to monitor over-serving and consumption.

“Does Development Services or Alcohol Beverage Control see that they have a responsibility to protect public health, safety, and quality of life of the residents in the communities that are over-concentrated with alcohol licenses?”