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HomeMy WebLinkAbout8A, Planning Case 12-015 - Zoning Code Amendment and CUP Application at 1260 Red Fox Road to Allow a Microbrewery with Taproom ,- lZENHILLS Request for Council Action 8A Prepared By: Meagan Beekman, City Planner Council Meeting Date: October 29, 2012 Planning Case 12-015—Zoning Code Amendment and CUP Application at 1260 Red Fox Road to Allow a Microbrewery with Taproom Budgeted Amount: Actual Amount: Funding Source: NA NA NA Recommendation: 1. Approve Ordinance 2012-008 in Planning Case 12-015 to amend Sections 1305.04 and 1325.05 of the Zoning Code regarding Micro Breweries, Micro Distilleries, and Brewpubs in the City, as presented in the October 29, 2012, report to the City Council. 2. Approve publishing a summary of Ordinance 2012-008. 3. Approve Ordinance 2012-009 in Planning Case 12-015 to amend Chapter 5 of the City Code regarding brewer and taproom liquor licenses, as presented in the October 29, 2012, report to the City Council. 4. Approve publishing a summary of Ordnance 2012-009. 5. Approve Planning Case 12-015 for a conditional use permit (CUP) at 1160 Red Fox Road to allow a micro brewery and micro distillery with taproom, based on the findings of fact and submitted plans, as amended by the conditions of approval as presented in the October 29, 2012 report to the City Council. Supporting Documents: 1. Memorandum dated October 29,2012, from Meagan Beekman, City Planner. 2. October 3, 2012, Draft Planning Commission Minutes 3. Ordinance 2012-008 and Publication Summary 4. Ordinance 2012-009 and Publication Summary 5. October 3, 2012,Report to the Planning Commission 'It EN HILLS MEMORANDUM DATE: October 29, 2012 TO: Honorable Mayor& City Councilmembers Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner �,V� : SUBJECT: Planning Case#12-015 Applicant: Bartley Blume Property Location: 1160 Red Fox Road Request: Zoning Code Amendment and Conditional Use Permit Requested Action 1. Approve Ordinance 2012-008 in Planning Case 12-015 to amend Sections 1305.04 and 1325.05 of the Zoning Code regarding Micro Breweries, Micro Distilleries, and Brewpubs in the City, as presented in the October 29, 2012, report to the City Council. 2. Approve publishing a summary of Ordinance 2012-008. 3. Approve Ordinance 2012-009 in Planning Case 12-015 to amend Chapter 5 of the City Code regarding brewer and taproom liquor licenses, as presented in the October 29, 2012, report to the City Council. 4. Approve publishing a summary of Ordnance 2012-009. 5. Approve Planning Case 12-015 for a conditional use permit (CUP) at 1160 Red Fox Road to allow a micro brewery and micro distillery with taproom, based on the findings of fact and submitted plans, as amended by the conditions of approval as presented in the October 29, 2012 report to the City Council. City of Arden Hills City Council Meeting for October 29, 2012 Page 1 of 6 Background 1. Overview of Request: The City has received a proposal from Bent Brewstillery (Attachment D) 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. This application includes four distinct requests: 1. Zoning Code Amendment request from applicant to create two new land use definitions; micro brewery and micro distillery, and allow the new uses in the B-4 District as Conditional Uses. 2. Zoning Code Amendment originating from the City to further allow micro breweries and micro distilleries in the B-2, B-3, GB, I-Flex, and MB Districts as Conditional Uses; and to create a further new land use definition of Brewpuds, which would be allowed in the B-2, B-3, B-4, and MB Districts as conditional uses. 3. City Code Amendment to create two new liquor licenses for on and off-sale sales of microbrews brewed on site in a micro brewery 4. Approval of a Conditional Use Permit to allow a micro brewery and micro distillery with taproom at 1160 Red Fox Road. 2. Legal 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 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 to manufacture spirits by State Statute, but cannot provide on-sale or off-sale, 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. Municipal ordinances may be more restrictive than State law in terms of the sale of alcohol. City of Arden Hills City Council Meeting for October 29, 2012 Page 2 of 6 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 welfare of the owners and occupants of the surrounding land, in particular, and the community as a whole, in general, including but not limited to the following factors: 1. Existing and anticipated traffic and parking conditions; 2. Noise, glare, odors, vibration, smoke, dust, air pollution, heat, liquid or solid waste, and other nuisance characteristics; 3. Drainage; 4. Population density; 5. Visual and land use compatibility with uses and structures on surrounding land; adjoining land values; 6. Park dedications where applicable; and the 7. Orderly development of the neighborhood and the City within the general purpose and intent of this ordinance and the Comprehensive Development Plan for the City. Staff has been in contact with other cities that currently have micro breweries. Staff at St. Louis Park stated that they have had micro breweries in their city for many years and have never had an issue with odor. As a result they did not choose to regulate odor emissions more rigidly than the State already does. Findings of Fact The Planning Commission offers the following findings of fact for the Council's consideration. 1. The applicant has shared parking agreements with the property to the south which will mitigate any parking impacts. 2. The proposal will have minimal impacts on noise, glare, odors, vibration, smoke, dust, air pollution, heat, liquid and solid waste. 3. The proposal is not anticipated to have an impact on odors because the State regulates odor emissions and other micro breweries have not adversely affected communities that they are located in. 4. The proposal will not affect drainage on the property. 5. The proposal will not affect the population density on the property. 6. The proposal would not be incompatible with the other buildings in the B-4 Zone. 7. The proposal is unlikely to significantly affect land values on the subject property or on neighboring properties. 8. The park dedication requirement does not apply in this application. Recommendation The Planning Commission reviewed this application at their October 3, 2012, regular meeting, and held a public hearing. Based on the findings of fact and the plans submitted,the Planning City of Arden Hills City Council Meeting for October 29, 2012 Page 4 of 6 Commission voted unanimously(4-0)to recommend approval of the application subject to the following three conditions: 1. The applicant shall abide by all state laws regarding the manufacturing, distribution and sale of alcohol. 2. The project shall be completed in accordance with the plans submitted as amended by the conditions of approval. Any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission. 3. Nuisance odors shall be kept in compliance with State Law. Requested Action 1. Approve Ordinance 2012-008 in Planning Case 12-015 to amend Sections 1305.04 and 1325.05 of the Zoning Code regarding Micro Breweries, Micro Distilleries, and Brewpubs in the City, as presented in the October 29, 2012, report to the City Council. 2. Approve publishing a summary of Ordinance 2012-008. (4/5 Vote) 3. Approve Ordinance 2012-009 in Planning Case 12-015 to amend Chapter 5 of the City Code regarding brewer and taproom liquor licenses, as presented in the October 29, 2012, report to the City Council. 4. Approve publishing a summary of Ordnance 2012-009. (4/5 Vote) 5. Approve Planning Case 12-015 for a conditional use permit (CUP) at 1160 Red Fox Road to allow a micro brewery and micro distillery with taproom, based on the findings of fact and submitted plans, as amended by the conditions of approval as presented in the October 29, 2012 report to the City Council. Options 1. Approve the proposal as submitted. 2. Approve the proposal with conditions (Recommended Action). 3. Deny the application with reasons for denial. 4. Table for additional information. The motions to approve Code Amendments are not dependent on approval of the CUP; however, approval of the CUP is dependent on approval of both Code Amendments. City of Arden Hills City Council Meeting for October 29, 2012 Page 5 of 6 Deadline for Agency Actions The City of Arden Hills received the completed application for this request on September 11, 2012. Pursuant to Minnesota State Statue,the City must act on this request by November 11, 2012 (60 days), unless the city provides the petitioner with written reasons for and additional 60 day review period. The City may, with the consent of the applicant, extend the review period beyond the initial 120 days. Attachments A. October 3, 2012, Draft Planning Commission Minutes B. Ordinance 2012-008 and Publication Summary C. Ordinance 2012-009 and Publication Summary D. October 3, 2012, Report to the Planning Commission City of Arden Hills City Council Meeting for October 29, 2012 Page 6 of 6 Attachment October 3, 2012, Draft Planning Commission Meeting Minutes The Planning Commission voted unanimously (4-0) to recommended approval for Planning Case 12-015 at their October 3, 2012, meeting -ARPEN HILLS City of Arden Hills City Council Meeting for October 29, 2012 October 3, 2012, Draft Planning Commission Minutes Planning Case 12-015 — Zoning Code Amendment and CUP; Bartley Blume, Bent Brewstillery; 1160 Red Fox Road—Public Hearing City Planner Meagan Beekman reviewed the Planning Commission is requested to consider approval of Planning Case 12-015 including a conditional use permit (CUP) for Bent Brewstillery for a micro brewery and micro distillery at 1160 Red Fox Road, as well as, amendments to Sections 1305.04 and 1320.05 of the Zoning Code to allow for the inclusion of microbreweries, micro distilleries and brewpubs as land uses. 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. Municipal ordinances may be more restrictive than State law in terms of the sale of alcohol. City Planner Meagan Beekman reviewed the proposed land use definitions. Staff was directed at the August 20, 2012 City Council work session, 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. Brewpubs also provide food and can also serve alcoholic products other than those brewed on site. City Planner Meagan Beekman continued 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. Staff has prepared draft amendments to the zoning code that reflect these recommendations. City Planner Meagan Beekman reviewed currently Arden Hills Zoning Code allows breweries and distilleries, as well as distributors of alcohol, in zoning districts that allow manufacturing and processing. The draft zoning code 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 would also be 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 application has submitted information addressing their request for a Zoning Code Amendment and CUP. Rather than make adjustments to the existing land uses within the Code, Staff is recommending creating three new land uses that would then be added to appropriate districts throughout the City. The new land uses would be micro-breweries, micro distilleries, and brew pubs. Staff is recommending that micro breweries and micro distilleries be allowed as Conditional Uses in the B-2, B-3, B-4, GB, I-FLEX and MB zoning districts. Staff is also recommending that brewpubs be allowed as Conditional Uses in the B-2, B-3, B-4 and MB zoning districts. City Planner Meagan Beekman reviewed the following CUP criteria would apply to micro breweries, 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 welfare of the owners and occupants of the surrounding land, in particular, and the community as a whole, in general, including but not limited to the following factors: 1. Existing and anticipated traffic and parking conditions; 2. Noise, glare, odors, vibration, smoke, dust, air pollution, heat, liquid or solid waste, and other nuisance characteristics; 3. Drainage; 4. Population density; 5. Visual and land use compatibility with uses and structures on surrounding land; adjoining land values; 6. Park dedications where applicable; and the 7. Orderly development of the neighborhood and the City within the general purpose and intent of this ordinance and the Comprehensive Development Plan for the City. City Planner Meagan Beekman reviewed the Planning Commission must make a finding as to whether or not the proposed application would adversely affect the surrounding neighborhood or the community as a whole based on the aforementioned factors. The following findings assume that the Zoning Code is amended to allow micro breweries and micro distilleries as Conditional Uses in the B-4 District. Staff offers the following findings for consideration: Conditional Use Permit Evaluation Findings: 1. The applicant has shared parking agreements with the property to the south, which will mitigate any parking impacts. 2. The proposal will have minimal impacts on noise, glare, odors, vibration, smoke, dust, air pollution, heat liquid, and solid waste. 3. The proposal is not anticipated to have an impact on odors because the State regulates odor emissions and other micro breweries have not adversely affected communities that they are located in. 4. The proposal will not affect drainage on the property. 5. The proposal will not affect the population density on the property. 6. The proposal would not be incompatible with the other buildings in the B-4 Zone. 7. The proposal is unlikely to significantly affect land values on the subject property or on neighboring properties. 8. The park dedication requirement does not apply in this application. City Planner Meagan Beekman stated no letters, e-mails or telephone calls from property owners or occupants have been received regarding this planning case. Staff Recommendations Based on the submitted plans and findings of fact, Staff recommends approval of Planning Case #12-015 for a Zoning Code Amendment and Conditional Use Permit at 1160 Red Fox Road. Staff recommends the following three conditions be included with the approval: 1. The applicant shall abide by all state laws regarding the manufacturing, distribution and sale of alcohol. 2. The project shall be completed in accordance with the plans submitted as amended by the conditions of approval. Any significant changes to these plans, as determined by the City Planner, shall require review and approval by the Planning Commission. 3. Nuisance odors shall be kept in compliance with State Law. Commissioner Holewa asked about the land use chart presented and requested Ms. Beekman go through the zoning areas the micro-breweries would not be allowed. Ms. Beekman stated the City has no land in the I-2 District. The 1-1 District is encompassed by Land O'Lakes and Boston Scientific corporate campuses. City Planner Beekman provided the definition of Brew Pubs. Mr. Bartley Blume 3287 Owasko Heights Road, Shoreview appeared before the Commission and explained his plan for craft beers and craft spirits. He would like to be the pioneer in the production of craft spirits. He wants his facility to be a tourist attraction where people would come to visit his business and have tours of the facility. He also plans a taproom where people can relax and have a beer. The on-sale/off-sale license is unique. Only the beers and spirits produced there can be sold there. The hours of operation would be very different from the surrounding businesses and would most likely be 4— 10 p.m. This is a very high traffic area and he is hoping to get business from the traffic that is already there. There would be no odors. Mr. Blume stated the Blue Fox is possibly concerned about competition but he has spoke with a manager and they are very interested in carrying his line in their bar/restaurant. This business would be a family owned business that would bring tax monies into the City. He feels it would be an advantage to the City. Commissioner Holewa asked when the business would be operational and Mr. Blume stated hopefully by the first of the year with the taproom opening 3-4 months after that. Commissioner Holewa asked about the food requirement. Mr. Blume stated most licenses require with a liquor license food be served that is prepared onsite. Commissioner Holewa asked who signed the memorandum of understanding regarding parking and Mr. Blume stated Roberts Development Co. Vice Chair Thompson opened the public hearing at 6:55 p.m. No one appeared to address the Commission. Vice Chair Thompson closed the public hearing at 6:56 p.m. The City of Arden Hills received the completed application for this request on September 11, 2012. Pursuant to Minnesota State Statue, the City must act on this request by November 11, 2012 (60 days) unless the city provides the petitioner with written reasons for and additional 60 day review period. The City may, with the consent of the applicant, extend the review period beyond the initial 120 days. Vice Chair Thompson asked about the liquor license. City Planner Beekman stated the application for the liquor license will go to the Council at their October 29, 2012 City Council Meeting Commissioner Holewa moved, seconded by Commissioner Zimmerman, to recommend approval of amendments to Sections 1305.04 and 1320.05 of the Zoning Code to allow for the inclusion of micro breweries, micro distilleries, and brewpubs as land uses as presented in the October 3, 2012, report to the Planning Commission. The motion carried unanimously (4-0). Commissioner Zimmerman moved, seconded by Commissioner Holewa, to recommend approval of a conditional use permit (CUP) to allow a micro brewery and micro distillery at 1160 Red Fox Road, based on the findings of fact, as amended by the Conditions of Approval presented in the October 3, 2012, report to the Planning Commission. The motion carried unanimously (4-0). This planning case will be on the October 29, 2012, City Council meeting agenda. Attachment Ordiance 2012-008 and Publication Summary -flAZEN�HILLS City of Arden Hills City Council Meeting for October 29, 2012 ORDINANCE 2012-008 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS ORDINANCE NO.2012-008 AMENDMENTS TO SECTIONS 1305.04 AND 1325.05 OF THE ZONING CODE REGARDING MICRO BREWERIES,MICRO DISTILLERIES,AND BREWPUBS IN THE CITY. The Arden Hills City Council Ordains: Section 1305- Definitions 1305.04 Definitions Microbrewery.A facility that manufactures and distributes intoxicating malt liquor or wine in total quantity not to exceed 250,000 barrels a year.A microbrewery may have space dedicated as a taproom to distribute on-sale and off-sale alcohol in compliance with MN state statute 340A.301, subd.6b. Microdistillery.A facility that manufactures and distributes premium,distilled spirits in total quantity not to exceed 40,000 proof gallons in a calendar year. Brewpub.A restaurant that also has a facility that manufactures and distributes intoxicating malt liquor or wine in total quantity not to exceed 250,000 barrels a year on the premises. Section 1320—District Provisions 1320.05 Land Use Chart. Zoning Districts' ,Uses: R-1 R-2 R-3 R-4 NB B-I B-2 B-1 B-4 CC GB 1-1 I-2 1-FLEX MR iccobrewery C___.G....... C.... __ ._ ._. C._......... Mrerodistillery C C C C C C Brewpub ORDINANCE 2012-008 Effective Date. This Ordinance shall be effective the day following its publication or on the day following the publication of an Ordinance Summary approved by the Arden Hills City Council. Adoption Date. Passed by the Arden Hills City Council on this 29`h day of October,2012. DAVID GRANT,MAYOR ATTEST: PATRICK KLAERS, CITY ADMINISTRATOR Publication Date: November 7th,2012 CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA SUMMARY OF ORDINANCE NO. 2012-008 On the 291h day of October, 2012, the Arden Hills City Council adopted Ordinance No. 2012-008, and by four affirmative votes pursuant to Minn. Stat. §412.191, Subd. 4, directed that a summary of Ordinance 2012-008 be published. Ordinance 2012-008 is entitled"Amendments to Sections 1305.04 and 1325.05 of the Zoning Code Regarding Micro Breweries, Micro Distilleries, and Brewpubs in the City." A full copy of Ordinance 2012-008 is available for inspection by any person during regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden Hills, Minnesota 55112. The Ordinance is also available online at http://www.ci.arden- hills.mn.us. Attachment Ordinance 2012-009 and Publication Summary -AVEN�HMLS City of Arden Hills City Council Meeting for October 29, 2012 Ordinance 2012-009 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS ORDINANCE 2012-009 AN ORDINANCE AMENDING SECTIONS 500.1 and 500.3 OF THE CITY CODE The Arden Hills City Council hereby ordains that Chapter 5, Sections 500.1 and 500.3 of the City Code shall hereby be amended as follows: 500.1 Definitions. Subd. 16 Brewer. A person who manufactures malt liquor for sale and/or distribution. Subd. 17 Brewer Taproom. A facility on the premises of and accessory to a licensed brewery intended for the on-sale consumption and limited off-sale of beer produced on site by the brewer as authorized by Minnesota statutes section 340A.301, subdivision 6b. 500.3 Types of Licenses. 9. Brewer taproom license. A brewer who has a license from the Commissioner of Public Safety to brew up to 250,000 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. C. A brewer may only have one taproom license. d. Hours of operation for on-sale of malt liquor at a brewer taproom. No sale of intoxicating liquor for consumption on the licensed premises may be made before 8:00 a.m. or after 10:00 p.m. on Monday through Sunday. e. 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. 10. Brewer Off-Sale Malt Liquor 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 Page 1 of 3 Ordinance 2012-009 may with the approval of the Commissioner of Public Safety be issued a license by the City for off-sale of malt liquor subject to the following conditions: a. The malt liquor sold off-sale must be produced and packaged on the licensed premises. b. Off-sale of malt liquor shall be limited to the legal hours for off-sale pursuant to section 500.3, Subdivision 9(d). C. The malt liquor sold off-sale must be removed from the licensed premises before the applicable off-sale closing time pursuant to section 500.3, Subdivision 9(d). d. The malt liquor sold off-sale shall be packaged in 64-ounce containers commonly known as "growlers" or 750 milliliter containers commonly known as "bombers" and shall have the following requirements for packaging: 1. The containers shall bear a twist type closure, cork, stopper or plug. 2. At the time of sale, a paper or plastic adhesive band, strip or sleeve shall be applied to the container or bottle and extend over the top of the twist type closure, cork, stopper or plug forming a seal that must be broken upon opening of the container or bottle. 3. The adhesive band, strip or sleeve shall bear the name and address of the brewer/licensee selling the malt liquor. 4. The containers or bottles shall be identified as malt liquor, contain the name of the malt liquor, bear the name and address of the brewer/licensee selling the malt liquor, and the contents in the container packaged as required herein shall be considered intoxicating liquor unless the alcoholic content is labeled as otherwise in accordance with the provisions of Minnesota Rules, part 7515.1100. e. The retail sales for a brewer/licensee under this subsection may not exceed 3,500 barrels per year, provided that off-sales may not total more than 50 percent of the brewer/licensee's production or 500 barrels, whichever is less. f. A brewer operating a brewer taproom may hold or have an interest in other retail on-sale licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent or employee of, any other manufacturer, brewer, importer, or wholesaler or be an affiliate thereof, whether the affiliation is corporate or by management, direction or control. Notwithstanding this prohibition, a brewer licensed under this provision Page 2 of 3 Ordinance 2012-009 may be an affiliate or subsidiary company of a brewer licensed in Minnesota or elsewhere if that brewer's only manufacture of malt liquor is: 1. As a brewer taproom as defined herein and limited to the regulations of a brewer taproom by this chapter; 2. Manufactured in another state for consumption exclusively in a restaurant located in the place of manufacture or brewing; or 3. Manufactured in another state for consumption primarily in a restaurant located in or immediately adjacent to the place of manufacture, if the brewer was licensed subject to the regulations herein on January 1, 1995. Effective Date. This Ordinance shall become effective the day following its publication. Adoption Date. Passed by the City Council of the City of Arden Hills the 29th Day of October, 2012. DAVID GRANT, MAYOR ATTEST: PATRICK KLAERS CITY ADMINISTRATOR Publication Date: Page 3 of 3 CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA SUMMARY OF ORDINANCE NO. 2012-009 On the 291h day of October, 2012,the Arden Hills City Council adopted Ordinance No. 2012-008, and by four affirmative votes pursuant to Minn. Stat. §412.191, Subd. 4, directed that a summary of Ordinance 2012-009 be published. Ordinance 2012-009 is entitled"Amendments to Chapter 5 of the City Code Regarding Brewers and Taprooms in the City." A full copy of Ordinance 2012-009 is available for inspection by any person during regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden Hills, Minnesota 55112. The Ordinance is also available online at http://www.ci.arden- hills.mn.us. Attachment October 3 , 2012, Report to the Planning Commission http://www.ci.ardenhills.mn.us/planningcase ,AMEN HILLS City of Arden Hills City Council Meeting for October 29, 2012