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Background <br /> 1. Overview of Request: <br /> The City has received a proposal from Bent Brewstillery (Attachment D) to obtain a CUP to <br /> open a brewery and distillery in a 2,500 square foot bay in the B-4 Zoning District at 1160 <br /> Red Fox Road. Bent Brewstillery would like to include a taproom for the consumption of on- <br /> sale beer brewed on site, as well as off-sale sales of growlers and 750 ml. bottles. <br /> This application includes four distinct requests: <br /> 1. Zoning Code Amendment request from applicant to create two new land use definitions; <br /> micro brewery and micro distillery, and allow the new uses in the B-4 District as <br /> Conditional Uses. <br /> 2. Zoning Code Amendment originating from the City to further allow micro breweries and <br /> micro distilleries in the B-2, B-3, GB, I-Flex, and MB Districts as Conditional Uses; and <br /> to create a further new land use definition of Brewpuds, which would be allowed in the <br /> B-2, B-3, B-4, and MB Districts as conditional uses. <br /> 3. City Code Amendment to create two new liquor licenses for on and off-sale sales of <br /> microbrews brewed on site in a micro brewery <br /> 4. Approval of a Conditional Use Permit to allow a micro brewery and micro distillery with <br /> taproom at 1160 Red Fox Road. <br /> 2. Legal Background <br /> In 2011, the State Legislature amended State Law to allow taprooms in microbreweries in <br /> Minnesota. This bill was commonly referred to as the "Surly Bill", and was first proposed by <br /> the owner of Surly Brewery. The law allows microbreweries that produce fewer than <br /> 250,000 barrels of beer a year to have a taproom where they can sell beer for on site <br /> consumption which is brewed on site. The law also allows sampling of beer which is <br /> produced on site. <br /> State law also allows microbreweries which produce fewer than 3,500 barrels of beer a year <br /> to provide off-sale sales of 64 ounce "Growlers" and 750 milliliter bottles; however, off-sale <br /> sales of beer by the bottle, case, or keg is not permitted by State law. <br /> The sale of on and off sale products brewed on site is allowed for microbreweries but not <br /> micro distilleries (manufacturers of spirits). Distilleries are allowed to manufacture spirits by <br /> State Statute, but cannot provide on-sale or off-sale, sales of their products at the location in <br /> which the spirits are produced. The spirits must be distributed to another site for on and off <br /> sale sales. <br /> Municipal ordinances may be more restrictive than State law in terms of the sale of alcohol. <br /> City of Arden Hills <br /> City Council Meeting for October 29, 2012 <br /> Page 2 of 6 <br />