No retailer’s license shall be issued for, or transferred to, a business operated in a residential-use district as defined in the zoning regulations and shown in the official atlases of the Zoning Commission for the District, except for a restaurant or tavern operated in a hotel or apartment house, if the entrance to the restaurant or tavern is entirely inside the hotel or apartment house and no sign or display is visible from the outside of the building. A nightclub license may be issued on the premises of a hotel that was legally located in a residential-use district and was operating a nightclub on the licensed premises on September 30, 1986. Subsection (a) of this section shall not apply if, at the time the application for a new license is submitted to the Board, a license of the same type and class is operating an establishment within 400 feet of the applicant. The provisions of this section shall not apply to: A restaurant which has received a valid certificate of occupancy as of January 1, 2000 for a restaurant operation in a residential-use district; or A club which is operated under a license issued by the Board as of January 1, 2000 for operation in a residential-use district. For the purposes of this subsection, the term “ANC 3/4G” means the single member district area partly in Ward 3 and partly in Ward 4, established under § 1-309.03 . Notwithstanding the restriction in subsection (a) of this section, a full service grocery store in a residential-use district in ANC 3/4G with a certificate of occupancy issued prior to [March 21, 2009], may apply for a retailer Class B license. The Mayor, pursuant to [ subchapter I of Chapter 5 of Title 2 ], may issue rules to implement the provisions of this subsection. The proposed rules shall be submitted to the Council for a 30-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve or disapprove the proposed rules, in whole or in part, by resolution, within this 30-day review period, the proposed rules shall be deemed approved. Notwithstanding the restriction in subsection (a) of this section, an off-premises retailer’s license may be applied for and approved by the Board in a residential-use district if an off-premises retailer’s license previously existed at the same location within the previous 2 years.
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