8A, Planning Case 12-015 - Zoning Code Amendment and CUP Application at 1260 Red Fox Road to Allow a Microbrewery with Taproom

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At the August 20, 2012 City Council work session, Staff were directed to research amending the zoning code to allow microbreweries and micro distilleries as conditional uses to the maximum extent allowable under state law. These recommendations were brought to the September 5, 2012 planning commission work session where it was recommended to staff that brewpubs also be included as a new, and separate, land use from micro breweries and micro distilleries. Brewpubs are microbreweries that have a restaurant component with on- sale sales of products brewed on site, and can also serve alcoholic products other than those brewed on site. The Planning Commission also discussed allowed prepackaged food to be served on site within a taproom, as opposed to food that is prepared on site. The distinction is important because establishments that have food prepared on site would be considered brewpubs rather than taprooms, and have different legal requirements within State Statute. Currently, Arden Hills' Zoning Code allows breweries and distilleries, as well as distributors of alcohol, in zoning districts that allow manufacturing and processing. Since amendments to State Statute in 2011, microbreweries with taprooms have become more common in the metro area. Currently, New Ulm, Stillwater, St. Louis Park, Excelsior, Lino Lakes and Roseville allow taprooms. Staff has prepared proposed Code amendments (Attachments B and C) that reflect work session discussions with the Planning Commission and City Council. The proposed amendments create new land uses for microbreweries, micro distilleries and brewpubs. Microbrewery and micro distillery land uses would allow the manufacture and distribution of intoxicating alcohol, as currently allowed by State Statute, in the assigned zoning districts. Microbreweries would also be permitted to have a retail component. A land use for brewpubs has been created to differentiate microbreweries that do not have a food component and brewpubs that do have a food service component. Applications for micro breweries, micro distilleries and brewpubs would be approved through the conditional use permit process. The applicant has submitted information addressing their request for a Zoning Code Amendment and CUP (Attachment D) Conditional Use Permit Evaluation Criteria—Section 1355.04 Subd 3 If the Zoning Code Amendments are approved the following CUP criteria would apply to micro breweries and micro distilleries in the B-4 District: Section 1355.04 Subd 3 of the Arden Hills Zoning Code lists the criteria for evaluating a Conditional Use Permit Amendment. The Planning Commission and City Council should consider the effect of the proposed use upon the health, safety, convenience and general City of Arden Hills City Council Meeting for October 29, 2012 Page 3 of 6