4.5 PCSR 06-28-2016 City of
Elk .........„ Request for Action
River
To Item Number
Planning Commission 4.5
Agenda Section Meeting Date Prepared by
Public Hearings June 28,2016 Zack Carlton,Planning Manager
Item Description Reviewed by
City of Elk River Chris Leeseberg,Senior Planner
• Ordinance Amendment Relating to Distilleries in Reviewed by
Industrial and Commercial Zoning Districts,
Case No. OA 16-06
Action Requested
Recommend,by motion,approval of the Ordinance Amendment as described.
Background/Discussion
In 2015, the City Council adopted an ordinance amendment to allow craft breweries and tap rooms in a
number of commercial and industrial zoning districts.This change was in response to the growing
industry within the state,and the city's desire to attract new businesses to the city. Since the adoption of
that ordinance, staff has been approached by a craft distiller to establish a distillery within the city.This
industry has not experienced the same level of growth as brewing,primarily due to federal regulations and
the barriers to entry,but the state and region has seen a significant growth in new operations in the last
few years.To allow,and encourage,a distiller to open a new business in Elk River,an amendment to our
zoning ordinance is required.
Analysis
Parking
Parking for microdistilleries and associated cocktail rooms will be reviewed using the manufacturing,
restaurant,or bar requirements as outlined in city ordinances. The parking requirements will be calculated
based on the associated areas within the facility.
Odor
Manufacturing processes,like distilling, can create noxious odors that may be detected beyond the
property lines of the facilities. However, staff has not found any evidence that small distilleries regularly
generate complaints based on odor. Depending on the proposed siting and scope of the operation this
could become an issue for neighbors,and for that reason staff recommends allowing them as a
conditional use. The potential for noxious odors occurs when the drying or rotting byproducts are not
properly disposed of. Provided the waste products are removed promptly, staff does not expect odor to
be an issue for a majority of facilities.
Fire
Fire is of particular concern when discussing distilleries,as their ingredients and product can be highly
flammable.The Fire Code addresses these concerns and would be evaluated by the Fire Marshal at the
time of conditional use review and when a building permit is applied for. In situations where distilleries
have been denied or limited in other communities, fire concerns were identified as a rationale.
LNATUREI E1E1 � r
City staff proposes adding microdistilleries to the list of conditional uses in the C-3 (Highway
Commercial), I-1 (Light Industrial), I-2 (Medium Industrial), and BP (Business Park) zoning districts. The
state defines a microdistillery as a distillery producing premium, distilled spirits not exceeding 40,000 proof
gallons in a calendar year. This is the lowest licensing level from the state as well.
In order for the distiller to sell their product directly to the public,they must also receive a cocktail room
license. Staff recommends including cocktail rooms as an accessory use,when associated with a licensed
microdistillery.A cocktail room license does not prohibit the serving of food.The city liquor licensing
regulations have already been changed to allow for issuance of the required city licenses.
Financial Impact
None
Council Meeting
If acted on, this item will go to the July 18,2016, City Council meeting.
Attachments
• None
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