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HomeMy WebLinkAbout2D, Concept Review - Brewery Taproom Discussion ,-A EN HILLS Request for Council Action 2D Prepared By: Meagan Beekman, City Planner Council Meeting Date: August 20,2012 Concept Review—Brewery Taproom Discussion Budgeted Amount: Actual Amount: Funding Source: NA NA NA Requested Action: Review proposal submitted by Bartley Blume and Bent Brewstillery, provide feedback on concept, and direct Staff on how best to proceed Supporting Documents: 1. Memo, dated August 20, 2012, from Meagan Beekman 2. Bent Brewstillery Executive Summary and Business Plan 3. August 6, 2012, City of St. Louis Park, Memo to Council on Taproom Brewery License and Zoning Code Amendment ,.It -- REN HILLS MEMORANDUM DATE: August 20, 2012 TO: Honorable Mayor or City Councilmembers Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Concept Review—Brewery Taproom Discussion Requested Action Review proposal submitted by Bartley Blume and Bent Brewstillery, provide feedback on concept, and direct Staff on how best to proceed Background 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 a year to have a taproom where they can sell beer 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. This law applies to microbreweries but not micro distilleries (manufacturers of spirits). Distilleries are allowed by State Statute, but cannot provide on-sale, off-sale, or sampling of their products at the location in which the spirits are produced. Municipal ordinances may be more restrictive than State law in terms of the sale of alcohol. City of Arden Hills City Council Work Session for August 20, 2012 P:WlanningWlanning Cases120121Concept Review-Brewery Taproom LicenseW-20-12- CC Memo-Brewery Taproom Discussion.doc Page 1 of 3 Discussion Currently, Arden Hills' Zoning Code allows breweries and distilleries, as well as distributors of alcohol, in zoning districts that allow manufacturing and processing. Chapter 5 of the Arden Hills City Code regulates the sale of alcoholic beverages. Currently, the City has on-sale liquor licenses which are allowed to be issued to restaurants and hotels only. Further, off-sale liquor licenses are allowed to be issued to exclusive liquor stores only. The City has received a proposal from Bent Brewstillery 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 also 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. (Attachment A). At this time food would not be served,though may be added in the future. Since the 2011, amendments to State Statute, microbreweries with taprooms are becoming more common in the metro area. Currently, New Ulm, Stillwater, St. Louis Park, Excelsior, Lino Lakes and Roseville allow taprooms. Attached is a memo that was presented to the St. Louis Park City Council on August 6, 2012, to amend their liquor ordinance and zoning code to allow taprooms (Attachment B). If the City Council is favorable to Bent Brewstillery's proposal, amendments similar to St. Louis Park's would be required in the Arden Hills City Code. Further, Manufacturing and Processing is permitted as an accessory use in the B-4 Zoning District, as manufacturing and processing is a key component to the business, an amendment to the Zoning Code would be required to allow the use at this particular location. If the Council wishes to move forward, Staff's recommendation would be to create a new land use category and definition for microbrewery and microdistillery and make them conditionally permitted uses in the B-4 District. From Staff's perspective the selected location for the use is appropriate, given the proximity to other manufacturing and processing uses, as well as other retail establishments. There are no residential uses nearby. Next Steps Staff is seeking direction from the Council on how to proceed with this request. If the Council directs Staff to continue to work with the applicant, Staff would begin drafting code amendments which would require a public hearing and review before the Planning Commission and City Council. City of Arden Hills City Council Work Session for August 20, 2012 P:IPlanninglPlanning Cases120MConcept Review-Brewery Taproom License M-20-12- CC Memo-Brewery Taproom Discussion.doc Page 2 of 3 Requested Action Review proposal submitted by Bartley Blume and Bent Brewstillery, provide feedback on concept, and direct Staff on how best to proceed Attachments A. Bent Brewstillery Executive Summary and Business Plan B. August 6, 2012, City of St. Louis Park, Memo to Council on Taproom Brewery License and Zoning Code Amendment City of Arden Hills City Council Work Session for August 20, 2012 P:IPlanni &lanning Cases120121Concept Review-Brewery Taproom License W-20-12- CC Memo-Brewery Taproom Discussion.doc Page 3 of 3 Attachment A Bent Brewstillery Executive Summary and Business Plan -ARR�DEfY_HILLS S� I Pbl 00- S L L E R Y B R E W T EXECUTIVE SUM' M,ARY 11 1. Introduction The last two decades have witnessed an explosion of beer styles available to the American public, primarily offered by small microbreweries and brewpubs. There are as many styles of beer available today, as there are wine styles! The growth of home brewing as a hobby is a factor adding to the demand for micro brewed products. This hobby is concentrated amongst higher income (upper/ upper- middle class) males and females, and is growing rapidly. Beer appreciation seems to be gaining a status and refinement comparable to wine tasting. 2,500 3 2,000 (1887-tune 2012) as L °O 1,500 t/N 1,000 O i 500 E Z 1990 1900 1910 3920 3910 1940 1950 1996 1970 3010 1996 2000 2010 Year O 0 Following closely behind craft brewing is craft distilling. Craft distilling is not a huge leap from craft brewing. Both processes use a lot of the same equipment and are done in small batches with attention to quality and creativity. Distilling is more than making corn squeezin's in the mountains of Kentucky. Distilling is a noble, artisan craft dating back 5,000 years. The craft has been diluted and commoditized by the mega-distillers just like the beer industry of 20 years ago. Total Number of Craft Distillers BY Year 200 so ; rte ..X1 o _ 1982 1984 1966 19!18 1990 1992 1994 1996 1998 2000 2002 2004 2006 2€08 2010 The recent distilling innovators have their roots in craft brewing. In 1993, Anchor Brewing, considered one of the first micro-breweries in the US, became the first brewery in the world with its own distillery. Nine years later, Dogfish Head, arguably the most famous craft brewery of today became the second. Today there are roughly 235 craft distilleries in the US, around 20 are operated by craft breweries. In addition to the aforementioned Anchor and Dogfish Head are Rogue's House of Spirits in Oregon, Ranger Creek in Texas, New Holland Brewing and Artisan Spirits in Michigan, Square One Brewery and Distillery in Missouri. Panther Distillery in Osakis, MN is proud to be the first craft distillery in MN, I would be proud to be the first craft distillery in the Twin Cities and the first Brewstillery in Minnesota. a 0 f f z - _ ---- 3 - �= 3 k I Z �--_ 4 3 5 .e 14 kv, s-3 4 1 ' 3 z 12 t 3 -, _j __j u Previous two graphics are from the white paper: "The US Craft Distilling Market: 2011 and Beyond" by Michael Kinstlick, CEO Coppersea Distilling, LLC 2. The Company Blume Brauhaus, LLC is a privately-funded, family-owned business serving the craft community of the Twin Cities, MN. Blume Brauhaus will do business as Bent Brewstillery featuring Beer, Bourbon and Spirits. The name Bent is used because most of the beers are not made to style. They are "bent" a little bit away from the norm. This sometimes comes from combining the best parts of 2 different styles. Similar but different(skewed). The Goal - Bent Brewstillery will provide products that the public wants in a comfortable, inviting atmosphere. The main company goal is to create a complimentary and mutually supportive business in Arden Hills that will become a "must-see" destination listing with the MN Board of Tourism. The Mission —To help fuel the Craft Beverage movement so that beer and bourbon can truly be appreciated again as a flavorful drink not just a mind-numbing anesthetic. To stop guzzling and start enjoying and understanding the true qualities of beer and bourbon. The company will market to the highest-end beer and bourbon drinker. The company will create an environment of mutual respect continually through honesty and integrity in all of our relationships with our workers, customers, partners, suppliers, and the public. The company mantra will be: "A Stranger is a Friend that we haven't shared a beer with yet." The Location —We are finalizing a lease with Roberts Development Co for 1168 Red Fox Road. This location is great for being noticed and will provide "drive-by" marketing in that all cars passing on nearby Lexington Ave and Interstate 694 will have easy access to the building. Since retail and tours is the goal, this location is perfect for access and exposure. It will create another"draw" to the surrounding businesses and be complimentary and mutually supportive. 3. The Plan Bent Brewstillery will start with a very small operation. The staff will consist of the owner, a bookkeeper/accountant, and an assistant brewer. The Brewstillery will be equal parts production and retail. The reason for the space and location is retail. Retail can only include products produced on the premises. 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 retail space will flow directly into the production area of the brewery and distillery. This will bring all visitors into the production side of the company giving them a sense of insertion into the process. The overriding idea and concept is to create a "destination" not a production facility. A destination that is more than just a location but an experience to be shared (and repeated). With continued success of both product lines and their successful combination into the Brewstillery, will come further growth and expansion of the company. More space will be secured and more employees will be hired. 4. Beer Product Descriptions a. Nordic Blonde— Blonde Ale This is a clean, crisp, SP,RAT;oNwR,,,H3 delicately balanced beer with subdued maltiness A clean,crisp, and a pleasantly delicately balanced refreshing tang in the Nordic Blonde beerwi finish. Because of the low a maltiness and a pleasantly refreshing hop bitterness and dry, tang in the finish. Because of the low light body this beer is hop bitterness and dry, light body this beer is easily mistaken for a light easily mistaken for a light lager.This beer is lager. These qualities L a brewed using our local make It a great summer pure water.We make 0 0 Abv 6.7% this popular beerstyle time beverage. These 3 $MR: 8 our own by using g G IBU: 27 some richer Munich qualities make it a great malts togndd deeper summer time beverage. C� First brewed: complex and deeper 04 Sep 4,2009 flavor. We make this popular This batch: Feb 18 2012 TCIt[ZIZ7f1 'TQZ.YI a(,6�r8_W./. L O Kegged:Mar 3,2012 beer style our own by a� Expires:Mar 3,2013 American Blonde Ale floi,n�am ® using some richer Munich Government Waming:1)Alcohol is the cause of and solution to all ofllfe's problems:2 Pregnantwomen should notdrinkcause malts to give it a more that's probably how they got into that situation to begin with);3)This product may contain material not suitable to all con- sumers;d)The consumption ofalcohol may make you thinkyouarewhispering when you are not;5)The consumpbonof complex and deeper alcohol is a majorfactor in dancing like a retard and may lead to serious rug bums on the forehead and chin area. flavor. b. Dark Side— Marzen Stout This distinctive hybrid '; beer style combines the light, clean feel of the traditional Oktoberfest ' (Marzen) lager with the rich, dark, creamy smoothness of the Stout. Especially unique is the rich darkness of this beer without the bitterness and heaviness of traditional Stout. It is brewed in the German tradition of an extra long boil to darken Dark Side to and smooth out the beer. Mackin'the •- This beer became what Feb Since••° we are known for and is '1-_­­tWarrtN:1)AJ�hol is the cause of and sokition to all of ffe!s problems;2)pregnant women sho,uld mot always on-tap in my ��Se that's probably how they got into that situatim to begin with;3)This product my writain material wt gijconsurne� 4 of musy make you think yw am whispering when you are mot;5)Thsc,omsumpticuof basement. Try one and Sa on the forehead and chin ama. Embrace Your Dark Side. SINCE 2007 • • • BERT BEER • •- • • 11' . creates J oera � - ,; the-WnI 1,10a Pale Ai, si.—ev,y thIck,verystru" . •- • a very. hoppy 11 pf nreict I r D 1 is more sot .l to sipping 9= � - • tD L SRM: 11 to chugg J.Truly a-I r - 3 . IBU: 4 A Definition Beverage _• 1 over-hoppe I in a go, LGOin is a play n the First brewed name for h r lup l., •--•- • • _ Apr 10.,2010 you dont that A Z yj Thisbatch: you might v t-kaH� • a Q Nov.11,2011 0 Bottled.Dec 2,aft 1 All ¢ J c r� •- _ O14 Exrims Dec 2,.2013 C UBER LUPIN' ••• • H©PFENREI H BEIR �wni ,.. r,.r „Duce, c ��;I�she m ice' • •• • • MACHT FREI! German 17 PA b,ucal beer �r1 rlvr platw<t - Some Guy • • Government Waming 11 Akohor is the cause of and solution to ag of Ide's problems;2 Pregnant women should not drink cause • •• • that's probably Vow they got hto that situation to begin with);3)This product may contain material not suitable to all con. samem;4)The ssraumpb'en of alcohol may maka you th nk you are whispering when you are not 5)The consumption of • • alcohol is a maar facto danoog I.ke a retard a-d-ay lead to serious mg burns on the forehead and chin area TRADITIONAL AL BAVARIAN SINCE 2007 • • - .•• • . • INSPIRATION WITH AN AMERICAN CRAFT TWIST - • BERT BEER w '• Br(nnrWrz Rp;i.uty -4'`� t; This beer is brewed using J w L Ill, our closest approximation - - • • - �� of the clear,pure water of � i- • • i ancient Bohemia.Our m f twist on this classic beer •� - • i style makes it stronger ` 0 L Abv: 6.6`'% � z. �., and richer with the •. -• t SMR: 8 ' exclusive use of premium 3 IBU: 37 � German malts and a little • , ftR�• darker with the use of First brewed: more proasted malts. Q Aug 21,2008 """" :�,�t,,,fd • • • •• - �L This batck Jan 28,2012 Kegged:Feb 2e,2012 • r Ekpires:Feb 26,2013 �T - �,� �l r'cmrirurr,�-r utn � -• • -`E Bohemian Czech Pilsner • Government Waming:I Alcoholis the cause of and solution to all of Ides problems;2 Pregnant women should not drink cause w • w • Chars 4 probably how they got into that situation to begin with):3)This product may contain material not suitable to all con- sumers: The consumption of alcohol may make you think you are whispering when you are not:5)The consumption of sIr_hc is a matorfacto in dancing like a retard and may lead to serious rug bums on the forehead and chin area. e. Current and future projects a. Pear Cider— Pear cider because my Wife and Daughter like it b. Cherry wheat beer— a light refreshing beer c. Smoked peat/Bbq beer— a great compliment to barbeque d. Honey and smoked Jalapeno beer— a great compliment to barbeque e. "Mother-In-Law" mix of a stout and bitter 5. Spirit Product Descriptions a. Un-Pure — un-aged Bourbon Whiskey made with cherry wood smoked malts, Cascade hops and cherry wood smoked malt infused b. Lead-Filled Snowshoe— oak aged bourbon with apple wood and smoked malts c. Ride the Lightning — hops infused corn whiskey d. Bourbon Stout— oak aged bourbon with stout beer characteristics of coffee, cocoa, toasty, caramel, vanilla, malts e. St Alfonzo's Pancake Bourbon — hickory smoked, maple, bacon f. Pure Malt Whiskey using all smoked malts (no corn) g. MNchello— a desert beverage that is sweetened by Minnesota maple syrup, brown sugar, and cinnamon h. Apple Jack— distill the leftovers from apple cider production infused with cinnamon 6. Where to go from Here The overriding idea is to create a complimentary and mutually supportive business in Arden Hills that will become a "must-see" destination listing with the MN Board of Tourism. To do this, I request the following: First, add a new Permitted Use for"Microbrewery/Microdistillery". This Permitted Use would then be applied to the building designated in The Location above. Second, amend the liquor license to include a brewer tap room as has been instated in Minneapolis, St. Paul, Stillwater (1St in MN), Excelsior, Lino Lakes, recently Roseville, and most recently St. Louis Park. Definitions: The Brewers Association Defines a Microbrewery: A brewery that produces less than 15,000 barrels of beer per year. Microbreweries sell to the public by the following methods: the traditional three-tier system; the two-tier system; and, directly to the consumer through carry outs and/or on-site tap-room sales. 2011 Minnesota Statutes; 340A.101; Subd. 17a. Defines a Microdistillery: "Microdistillery" is a distillery operated within the state producing premium, distilled spirits in total quantity not to exceed 40,000 proof gallons in a calendar year. �w n r � p s o; 0 C/1 � x � z w Q O w Q w u FAA x oc I i i mmmVi I � � mmmmma 0 i o � a i x as as as as � o BC I O c 000 =s 000 rl 000 Cc Cd Con N w w a3i C -o I w � iU � x U w ° as w � as M ya � w � � L N ys E � y ct L Ld a� 000oa 5 000 1 o0 Li 0 � � U a � N — Lt-.. a:- N c W �+ N y L u U W W W W N —— bA U yNy..,, O C40 Cd cz L L ct W L L O O y O w cd ................................ ... O � 9 c N z � w M Attachment August 6, 2012 City of St. Louis Park, Memo to Council on Taproom Brewery License and Zoning Code Amendment EN HILLS 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: City Council Meeting of August 6,2012(Item No. 6b) Page 2 Subject: First Reading of Liquor Ordinance Amendment—Brewer Taproom Licensing Liquor License Amendment: 1. A taproom license will be issued only to brewers that produce less than 3,500 barrels of malt liquor per year. State Statute allows taprooms at brewers that produce up to 250,000 barrels annually, however State Statutes only allow growler sales at breweries that produce up to 3,500 barrels annually. Staff chose to be consistent with the treatment of growler sales and taprooms and therefore set a 3,500 annual barrel production limit for both items. As a matter of comparison, Steel Toe currently produces 500 barrels annually. The owner of Steel Toe does not anticipate the 3,500 barrel limit becoming a hindrance in the future. 2. The malt liquor sold for consumption on site must be produced by the brewer on the licensed premises. This is a requirement of state law. 3. A brewer may have only one taproom license. This is a requirement of State Law. 4. Hours of operation for on-sale of malt liquor at a brewer taproom shall be within the following hours: Monday - Thursday: 3 pm to 8 pm Friday: 3 pm to 10 pm Saturday: 11 am to 10 pm Sunday: 11 am to 8 pm Federally Recognized Holidays: 11 am to 10 pm 5. A restaurant is not allowed at a brewery with a taproom license. The brewer would, however, be allowed to sell simple pre-packaged snacks (chips, peanuts, popcorn, etc.) for consumption on-site. This requirement is added to provide a distinction between a liquor license issued to restaurants and a brewery taproom. The intent of the taproom is to provide customers an opportunity to sample and enjoy the malt beverage produced by the brewery. It is not intended to provide a dining experience. If the City's zoning regulations allows restaurants in the location of the brewery, then the brewer can choose to abandon the taproom license and apply for an intoxicating liquor license which is typically issued to restaurants, and the brewer would need to comply with all requirements of that license, including food/liquor sale ratios. Recommendation The proposed amendments to Sections 3-32 and 3-57 of the city ordinance code would allow this type of activity and assure the city is in compliance with state statute. FINANCIAL OR BUDGET CONSIDERATION: Staff is recommending a license fee of$800 for an On Sale Brewer's Taproom License to cover costs of providing administration and enforcement. VISION CONSIDERATION: St. Louis Park is committed to promoting and integrating arts, culture and community aesthetics in all city initiatives. Attachments: Proposed Ordinance Proposed Resolution Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager City Council Meeting of August 6,2012(Item No.6b) Page 3 Subject: First Reading of Liquor Ordinance Amendment—Brewer Taproom Licensing ORDINANCE NO. -12 AN ORDINANCE AMENDING CHAPTER 3 OF THE ST. LOUIS PARK CODE OF ORDINANCES CONCERNING BREWER TAPROOM LICENSING THE CITY OF ST. LOUIS PARK DOES ORDAIN: SECTION 1. Chapter 3, Article Il, Division 1, Section 3-32 of the City Code is hereby amended by adding the following provisions: Sec. 3-32. Definitions. Brewer means a person who manufactures malt liquor for sale. SECTION 2. Chapter 3, Article II, Division 2, Section 3-57 of the City Code is hereby amended by adding the following provisions: Sec. 3-57. Classifications. (14) Brewer groom license. A brewer who has a license from the Commissioner of Public Safety to brew up to 3,500 barrels of malt liquor per year may be issued a license by the City for on-sale of malt liquor subject to the following conditions: a. The malt liquor sold on sale for consumption must be produced by the brewer on the licensed premises. b. No other beverages containing alcohol may be sold or consumed on the licensed premises b. A brewer mqy only have one taproom license. c. Hours of operation for on-sale of malt liquor at a brewer taproom shall be within the following hours: Monday - Thursday 3:00 p.m. —8:00 p.m. Friday 3:00 p.m. — 10:00 p.m. Saturday 11:00 a.m.— 10:00 p.m. Sunday 11:00 a.m. —8:00 p.m. Federally Recognized 11:00 a.m. — 10:00 p.m. Holidays d. A restaurant is not allowed at a brewery with a taproom license. City Council Meeting of August 6,2012(Item No.6b) Page 4 Subject: First Reading of Liquor Ordinance Amendment—Brewer Taproom Licensing SECTION 3. This ordinance shall be deemed adopted and take effect fifteen days after its publication. ENACTED this 20t' day of August, 2012, by the City Council of the City of St. Louis Park. Public Hearin /First Reading August 6, 2012 Second Reading August 20, 2012 Date of Publication August 30, 2012 Date Ordinance takes effect September 14, 2012 Reviewed for Administration Adopted by the City Council August 20, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney City Council Meeting of August 6,2012(Item No.6b) Page 5 Subject: First Reading of Liquor Ordinance Amendment—Brewer Taproom Licensing RESOLUTION NO. 12- RESOLUTION AMENDING RESOLUTION NO. 11-126 ADOPTING ANNUAL FEES FOR LIQUOR LICENSES FOR THE LICENSE TERM THROUGH MARCH 1,2013 BE IT RESOLVED by the City Council of the City of St. Louis Park as follows: WHEREAS, St. Louis Park City Code Section 3-59 authorizes the City Council to establish annual fees for liquor licenses by resolution in amounts no greater that those set forth in M.S.A. Chapter 340A; and WHEREAS, the City has adopted an ordinance authorizing brewer's to sell malt liquor beverages produced by the brewer on the licensed premises for on-sale consumption. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that Resolution 11-126 is amended by adding the following fee: Liquor License Type: 2012 Fee On Sale Brewer's Taproom $800 and Sunday Liquor License Reviewed for Administration: Adopted by the City Council August 20, 2012 City Manager Mayor Attest: City Clerk IffSt. Louis Park Meeting Date: August 6,2012 M I N N E S 0 T A Agenda Item#: 8a 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 Zoning Ordinance Amendment- Brewery Taprooms RECOMMENDED ACTION: Motion to Adopt First Reading of Ordinance amending the Zoning Code pertaining to Brewery Taprooms, and to set the second reading for August 20, 2012. POLICY CONSIDERATION: Does the City Council wish to make changes to the Zoning Code to allow brewer taprooms? BACKGROUND: MN Statutes were recently amended to allow municipalities to issue a taproom license to a state licensed brewer. The City has been approached by Steel Toe Brewing, located at 4848 35" Street in the Beltline Industrial Park, about allowing a Brewer Taproom at its facility (letter attached). Before the City can issue a taproom license, changes have to be made to the Zoning Ordinance to identify which zoning districts a taproom is allowed, and the conditions in which it can operate. 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 allow taprooms. As directed, staff prepared the attached amendment to the Zoning Ordinance for your review. The draft ordinance was reviewed by the City Attorney, and determined to be consistent with State Law and existing City Ordinances. A summary of the ordinance follows: Zoning Amendment: 1. Staff is proposing to create the following land use definitions that would be amended into the zoning ordinance: Taproom means a facility where on-sale of malt liquor produced by the brewer for consumption on the premises of, or adjacent to, the brewery location owned by the brewer at which the malt liquor is produced. Brewery means a facility that manufactures alcoholic and/or nonalcoholic malt liquor. This definition does not include breweries operated in conjunction with a restaurant as an accessory use. 2. Breweries are proposed to be allowed in the Business Park, Industrial Park and General Industrial Zoning Districts as permitted uses. Currently we consider breweries under the "manufacturing/processing" land use which is a permitted land use (Conditional Use Permit not required) in the Industrial Park and General Industrial Zoning Districts. Breweries are proposed to be permitted with the following condition: Business Park and Industrial Park - the brewery shall not produce more than 3,500 barrels per year. This requirement will maintain consistency with the growler and taproom requirements. City Council Meeting of August 6,2012(Item No. 8a) Page 2 Subject: First Reading of Zoning Ordinance Amendment-Brewery Taprooms General Industrial Park— no additional conditions. A brewery in this district can produce any amount of beverage; however, it will not be allowed to sell growlers once it exceeds 3,500 barrels per year (per state law). Staff also recommends that a taproom not be allowed in the General Industrial District even if it produces less than 3,500 barrels per year. The General Industrial District is intended to manufacture and warehouse items on a large scale. Therefore, it is not conducive to general public traffic looking for refreshment or entertainment activities. 3. Taprooms are proposed to be located in the Business Park and Industrial Park Zoning Districts with the following condition: Up to 25% of the gross floor area of the Brewery in a Business Park District, and up tol5% in the Industrial Park Zoning District may be used for any combination of retail and a taproom. The 25% and 15% floor area limitations are already established in the Business Park and Industrial Park Zoning District for retail and service uses. Staff is proposing to include the taproom in the area limitation so that the total of all taproom, retail and other accessory uses in total do not exceed the 25% or 15% limitation. Liquor License Amendment: Changes are also proposed to the Liquor License Ordinance to license taprooms and establish criteria and conditions specific to taprooms. Both the Liquor License amendment and the Zoning Ordinance amendment will be heard by the City Council on August 6th. The Liquor License amendment is scheduled separately because a public hearing is required to be conducted by the City Council. There is a separate staff report for that item that summarizes the proposed liquor license amendment. Planning Commission Action: A public hearing was held at the July 18, 2012 Planning Commission meeting. Jason Schoneman, owner of Steel Toe Brewery, spoke in favor of the amendment. The Commission voted (6-0)to recommend approval of the ordinance. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: St. Louis Park is committed to promoting and integrating arts, culture and community aesthetics in all city initiatives. Attachments: Proposed Ordinance Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning & Zoning Administrator Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager City Council Meeting of August 6,2012(Item No. 8a) Page 3 Subject: First Reading of Zoning Ordinance Amendment-Brewery Taprooms ORDINANCE NO. -12 AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING BY AMENDING SECTIONS 36-4 DEFINITIONS, 36-233 BP BUSINESS PARK DISTRICT, 36-243 I-P INDUSTRIAL PARK DISTRICT, AND 36-244 I-G GENERAL INDUSTRIAL DISTRICT THE CITY OF ST. LOUIS PARK DOES ORDAIN: Findings Sec. 1. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 12-18-ZA). Sec. 2. The St. Louis Park Ordinance Code, Sections 36-4, 36-233, 36-243, and 36-244 are hereby amended by adding underscored language. Section breaks are represented by ***. Sec. 36-4. Definitions. *** Brewery means a facility that manufactures alcoholic and nonalcoholic malt liquor. This definition does not include breweries operated in conjunction with a restaurant as an accessory use. *** Taproom means a facility where on-sale of malt liquor produced by the brewer for consumption on the premises of, or adjacent to, the brewery location owned by the brewer at which the malt liquor is produced. *** Sec. 36-233. BP business park district. *** (c) Uses permitted with conditions. A structure or land in any BP district may be used for one or more of the following uses if it has a floor area ratio (FAR) of less than 1.0 and complies with the performance standards as stated in Section 36-232 and the conditions stated below: 1 Brewery. The conditions are as follows: a The brewery shall not produce more than 3,500 barrels of malt liquor per year. b Up to 25% of the gross floor area of the Brewery may be used for any combination of retail and a taproom. City Council Meeting of August 6,2012(Item No. 8a) Page 4 Subject: First Reading of Zoning Ordinance Amendment-Brewery Taprooms Sec. 36-243. I-P industrial park district. (c) Uses permitted with conditions. A structure or land in an I-P district may be used for one or more of the following uses if its use complies with the conditions stated in section 36-242 and those specified for the use permitted in this subsection: (11) Brewery. The conditions are as follows: a The brewery shall not produce more than 3,500 barrels of malt liquor per year. b Up to 15% of the gross floor area of the Brewery be used for any combination of retail and a taproom. Sec. 36-244. I-G general industrial district. (b) Permitted uses. The following uses are permitted in an 1-G district. (15) Brewery. Sec. 3. The contents of Planning Case File 12-18-ZA are hereby entered into and made part of the public hearing record and the record of decision for this case. Sec. 4. This Ordinance shall take effect fifteen days after its publication. Public Hearing - Planning Commission July 18, 2012 First Reading August 6, 2012 Second Reading August 20, 2012 Date of Publication August 30, 2012 Date Ordinance takes effect September 14, 2012 Reviewed for Administration Adopted by the City Council August 20, 2012 City Manager Mayor Attest: Approved as to Form and Execution: City Clerk City Attorney