2D, Concept Review - Brewery Taproom Discussion

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St. Louis Park Meeting Date: August 6,2012 Iff Agenda Item #: 6b MINNESOTA Regular Meeting ® Public Hearing ®Action Item ❑ Consent Item ❑ Resolution ® Ordinance ❑ Presentation ❑ Other: EDA Meeting ❑ Action Item ❑ Resolution ❑ Other: Study Session ❑ Discussion Item ❑Written Report ❑ Other: TITLE: First Reading of Liquor Ordinance Amendment—Brewer Taproom Licensing RECOMMENDED ACTION: Mayor to close public hearing. Motion to Adopt First Reading of Ordinance amendment to Chapter 3 of City Code concerning Brewer Taproom on-sale malt liquor licensing and to set second reading for August 20, 2012. POLICY CONSIDERATION: Does the Council wish to make changes to the City Code to allow brewer taproom licensing as proposed by staff and city attorney? BACKGROUND: MN Statutes were recently amended to allow municipalities to issue a taproom license to a state licensed brewer. The State Statute allows cities to issue a brewer taproom license that allows the on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. The City has been approached by Steel Toe Brewing, 4848 35th Street, who receives several requests monthly for tours, meets the criteria, and would like to add a taproom for those people visiting its facility. To allow a licensed brewer taproom in St. Louis Park, the city would have to amend its liquor and zoning ordinances. Microbreweries are becoming very popular in Minnesota and New Ulm, Stillwater, St. Paul, Minneapolis, and Walker have recently passed Taproom license ordinances as allowed by state statute. The only alcoholic beverages sold or consumed on the premises of a taproom are the malt liquor produced by the brewer upon the brewery premises. According to these cities' ordinances, the brewer taproom licenses are very different and therefore were considered exempt from maintaining minimum food service requirements because they do not qualify as a restaurant, and are considered a separate classification (not an on-sale intoxicating liquor license or wine license requiring a food/liquor sales percentage ratio). The cities fees for this taproom license ranged from $200 to $5,000. All Brewer Tap Room liquor licenses require approval by the Alcohol and Gambling Enforcement Division prior to becoming effective. The City Council discussed the taproom option at its May 21, 2012 and June 25, 2012 Study Sessions and directed staff to prepare amendments to the Liquor License and Zoning Ordinances to allow taprooms. The draft ordinance has been reviewed by the City Attorney, and determined to be consistent with State Law and existing City Ordinances. A public hearing is required for ordinance amendments to the City Code Chapter 3 regarding Alcoholic Beverages. The Zoning Ordinance amendments will be presented to council as an action item following the public hearing. A summary of the liquor ordinance amendment is as follows: