7.6. SR 12-15-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 7.6
Agenda Section Meeting Date Prepared by
Public Hearinj December 15, 2014 Zack Carlton, Planner I
Item Description Reviewed by
Ordinance Amendment Relating to Tap Rooms, Jeremy Barnhart,Deputy Director CODD
Brewpubs,Microbreweries, and Wineries Reviewed by
Cal Portner, City Administrator
Action Requested
Open and continue,by motion,the public hearing to the Tuesday,January 20, 2015, regular meeting of
the City Council.
Background/Discussion
Case No. OA 14-11
The craft brewing industry continues to grow at a rapid pace and the city proposes amending the
ordinance to allow brewers to establish a business in Elk River. Current city ordinances do not permit
these uses in any district and the changes are needed to allow them to locate within the city.
Brewing
Staff proposes adding three types of brewing establishments to the city ordinances. Brewpubs brew beer
on site and include a restaurant or food service. Taprooms brew beer on site and may or may not include
food service. Small Brewers (microbreweries) are of an industrial nature and primarily brew beer for off-
site distribution;however they may sell limited amounts on-site. The off-sale of beer will be permitted in
the form of growlers (64-ounce containers) depending on the specific liquor license held.
Staff recommends allowing brewpubs as permitted uses in the C-1 (Central Commercial), C-3 (Highway
Commercial), and DD (Downtown) zoning districts. Taprooms are recommended as permitted uses in
the C-1, C-3, and DD districts, and as a conditional use in the I-1 (Light Industrial), I-2 (Medium
Industrial), and the BP (Business Park) district when associated with a licensed brewery operation. Finally,
small brewers (microbreweries) are recommended as a permitted use in the I-2 district, and as a
conditional use in the I-1 and BP districts. Production for all uses will be limited by statute and the type
of license the brewer holds.
Wine Making
Staff also proposes allowing wineries in the R-1 a zoning district. A winery would be a permitted use when
a retail component is not included and a conditional use when retail sales of any type are introduced. By
only allowing on-site sales with a conditional use permit, the city has an opportunity to evaluate and
mitigate traffic and other impacts within a residential district,protecting the character of the area.
P a w E A E U s r
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Planning Commission
The Planning Commission had no concerns with the proposed changes and recommended approval 7-0.
No comments have been received for or against the amendment.
Public Hearing
No one spoke during the public hearing.
Liquor Licensing
Staff is also working on an ordinance amendment to allow for the licensing of the proposed uses. The
amendment will be ready for review by the City Council during their January 20, 2015, meeting. Due to
the complimentary nature of the two amendments, staff proposes continuing the public hearing for the
land use and zoning changes to ensure consistency within the ordinance and between the two documents.
Financial Impact
?None
Attachments
■ Planning Commission Staff Report dated November 25, 2014
N:\Public Bodies\Agenda Packets\12-15-2014\Final\x7.6 sr brewpubs wineries.docx
ECty lk - _ Request for Action
River
To Item Number
Planning Commission 4.3
Agenda Section Meeting Date Prepared by
Planning Items November 25, 2014 Zack Carlton,Planner I
Item Description Reviewed by
Ordinance Amendment Request by City of Elk Jeremy Barnhart, Deputy Director CODD
River Relating to Tap Rooms,Brewpubs, Reviewed by
Microbreweries, and Wineries
Public Hearing, Case No. OA 14-11
Action Requested
Recommend, by motion, modifications to the city ordinance to permit brewer taprooms, microbreweries,
and wineries.
Background/Discussion
The craft brewing and distilling industry continues to grow at a rapid pace and the city proposes
amending the ordinance to encourage a craft brewer to locate in Elk River. Current city ordinances do
not permit these uses in any district and the following changes are needed to permit the businesses to
locate within the city.
Brewing
There are two types of brewing establishments that the city may consider permitting. The first,
microbreweries (small brewers), focus on production for distribution and may sell no more than 500
barrels on-site for off-sale consumption, per state statute. The on-site sale must be in the form of a 64-
ounce container commonly known as a growler or in 750 milliliter bottles. On-sale beer sales are not
permitted. These uses are manufacturing in nature and would be best suited in light industrial districts
with access to city water. The bottling phase of production can be very loud and may be a potential
nuisance to nearby uses. In addition, they are often high water users, and require significant distribution
infrastructure. For those reasons staff recommends adding them as a Conditional Use in the I-1 (Light
Industrial) and BP (Business Park) districts and as a permitted use in the I-2 (Medium Industrial) district.
The second type, brewer taprooms and brewpubs, have been some of the fastest growing segments of the
brewing market since being approved by the state legislature. A brewer taproom must be licensed by the
state and the city via Sec. 6-52 (9) and is limited in the amount of beer they may produce. These
businesses may include food service or may be an accessory use to an existing one. Staff recommends
adding brewer taprooms as both a permitted and accessory use in the C-1 (Central Commercial), C-3
(Highway Commercial), and DD (Downtown Districts). This will provide brewer taprooms with the
opportunity to locate in a vacant space or establish their business as an accessory use to an existing
operation they own.
Finally, brewer taprooms are manufacturing in nature and the impacts of a manufacturing business
located in or near commercial operations must be considered. Current state and city regulations limit a
brewer taproom to producing 250,000 barrels annually, or approximately 21,000 gallons of beer per day.
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In consideration of the neighboring businesses and the impacts of a manufacturing operation, staff
recommends including a limit to production at 10,000 barrels annually,with an opportunity to expand via
Conditional Use Permit.
Wineries
Similar to brewing,wineries and wine making have received additional interest over the past few years and
the city is interested in accommodating the growing industry.
Wineries require open areas for growing grapes and other fruit which is agricultural in nature, the
manufacturing of the products are industrial, and on-site sales are retail. Due to the multiple uses
associated with a winery staff proposes including wineries as both a permitted and conditional use in the
R-1a district. Wineries will be classified as a permitted use when there is no on-site sale of products and as
a conditional use when a retail component is included. This Conditional Use Permit provides the city with
an opportunity to evaluate parking, drive-aisles, buildings, and the overall operations of the business.
Ordinance Definitions
Microbreweg—A microbrewery is a facility that is licensed under Minn. Statute Section 340A.3011 Subd.
6(c), (i), or (j) and may brew no more than 20,000 barrels of its own brands of malt liquor annually. The
on-site sale of malt liquor is limited to off-sale only. Off-sale malt liquor shall be sold in 64-ounce growler
or in 750 milliliter bottles, and is limited to 500 barrels annually.
Brewer Taproom—A brewer taproom is a facility on or adjacent to premises owned by a brewer licensed
under Minn. Statute Section 340A.301, Subd. 6(c), (i), or (j) and produces less than two hundred fifty
thousand (250,000) barrels of malt liquor annually, and where the on-sale and consumption of malt liquor
produced by the brewer is permitted pursuant to Minn. Statute Section 340A.301 Subd. 6(b).
Brwpub—A restaurant-brewery that primarily sells malt liquor on site in a restaurant and bar. The malt
liquor is often dispensed directly from the brewery's storage tanks and on-site sales may occur in both on-
sale and off-sale forms. The off-sale malt liquor shall be sold in a 64-ounce growler or 750 milliliter bottle.
The owner of a brewpub must hold a brewer taproom license.
Farm Vineg—A Farm Winery means an agricultural processing facility used for the fermenting and
processing of grape and other fruit juices into wine or the re-fermenting of wine into sparkling wine. The
facility shall be licensed and follow all provisions of Minn. Statute Section 340A.315.
Growler—Container used in the packaging and sale of malt liquor, 64-ounces in size (1/2 gallon).
Financial Impact
None
Attachments
■ None
N:ADepartments\Community Development\Planning\Case Files\oA\oA 14-11 Tap Rooms\oA 14-11 Alcohol Manufacturing.docx