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ARDEN HILLS PLANNING COMMISSION – October 3, 2012 2 City Planner Meagan Beekman stated the City has received a proposal from Bent Brewstillery to obtain a CUP to open a brewery and distillery in a 2,500 square foot bay in the B-4 Zoning District at 1160 Red Fox Road. Bent Brewstillery would like to include a taproom for the consumption of on-sale beer brewed on site, as well as off-sale sales of growlers and 750 ml bottles. The applicant proposes the large retail space and tap room will serve the following purposes: 1. Sell beer growlers (64-oz bottles) and bombers (22-oz bottles) for off-premise consumption as allowed by Minnesota law, 2. Sell pints for on-premise consumption in accordance with the Minnesota Pint Law, 3. Sell spirits for on-premise consumption (when legal) in accordance with Minnesota Law, 4. Sell company swag, 5. Provide free beer (and bourbon when legal) samples, 6. Start and end point for Brewstillery tours, 7. Serve as a gathering spot to discuss beer, bourbon, and other poignant topics of the day. This application includes three distinct requests: 1. Zoning Code Amendment to create three new land uses; micro brewery, micro distillery, and brewpub; and allow the new uses in the B-4 District as Conditional Uses. 2. City Code Amendment to create two new liquor licenses for on and off-sale sales of microbrews brewed on site in a micro brewery. 3. Approval of a Conditional Use Permit to allow a micro brewery and micro distillery with taproom at 1160 Red Fox Road City Planner Meagan Beekman presented the legal background stating in 2011, the State Legislature amended State Law to allow taprooms in microbreweries in Minnesota. This bill was commonly referred to as the “Surly Bill” and was first proposed by the owner of Surly Brewery. The law allows microbreweries that produce fewer than 250,000 barrels of beer in a year to have a taproom where they can sell beer for on site consumption, which is brewed on site. The law also allows sampling of beer, which is produced on site. State law also allows microbreweries which produce fewer than 3,500 barrels of beer a year to provide off-sale sales of 64 ounce “Growlers” and 750 milliliter bottles; however, off-sale sales of beer by the bottle, case or keg is not permitted by State law. The sale of on and off sale products brewed on site is allowed for microbreweries but not micro distilleries (manufacturers of spirits). Distilleries are allowed by State Statute, but cannot provide on-sale, off-sale, and sales of their products at the location in which the spirits are produced. The spirits must be distributed to another site for on and off sale sales.