Draft Minutes - 10-29-12 Regular

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ARDEN HILLS CITY COUNCIL—OCTOBER 29, 2012 6 as a distillery, the applicant can manufacture spirits, but he cannot provide on-sale or off-sale sales of those products at the location in which they were brewed. Discussion ensued regarding the difference between a microbrewery, microdistillery, and brewpub. Bartley Blume, 3287 Owasso Heights Road, Shoreview, spoke about his plans for a microbrewery/distillery. He will serve regular and seasonal beers, and his establishment will be a taproom; not a bar or a restaurant. Mayor Grant stated that he has never been to a taproom. He inquired if the off-sale sales of growlers and bombers were the primary focus of the business. Mr. Blume stated that 50% of the business revenue will come from on-sale sales of craft beers brewed in the taproom. Mayor Grant questioned how many barrels of malt liquor Mr. Blume expects to brew. Mr. Blume said that he anticipates brewing somewhere between 300 and 400 barrels per year. He expects that he will sell about 80% of the beer he brews on-site at the taproom. Councilmember Holmes stated that at the Planning Commission meeting, Mr. Blume mentioned that he had been contacted by the Blue Fox over concerns regarding competing for business. She asked if Mr. Blume could tell the Council about that conversation. Mr. Blume noted that as he has not had a conversation with anyone at the Blue Fox yet, but he does not see the opening of his taproom to create competition for the Blue Fox since the types of business are so different. His business will only sell products that have been brewed on-site, so the product is very limited. The Blue Fox offers food, live bands, longer hours of operation, and serves many more beers and other products. He hopes to have a good working relationship with the area businesses, and he hopes that they will be interested in carrying some of his products. Councilmember Holden asked Mr. Blume about potential offensive odors caused by brewing beer. Mr. Blume stated that brewing beer in a small, confined space (i.e. brewing beer at home), can produce odors. He stated that with the taproom business, odors will be captured within the building. The steam generated will go up to the ceiling and will be recycled through the HVAC system, so there will not be an odor problem emanating from his business. Councilmember Holmes stated that there is nothing in the liquor ordinance referring to wine. Community Development Director Hutmacher noted that the definition in the Zoning Ordinance does include wine. The Zoning Ordinance was taken out of state statute, and it is how the state defines a microbrewery. She mentioned that the term "bombers" indicates 750 ml bottles, which is a standard wine bottle size. She agreed that the language included in the liquor ordinance is geared toward beer.