7.7. SR 07-18-2016
Request for Action
To Item Number
Mayor and City Council 7.7
Agenda Section Meeting Date Prepared by
Public HearingsJuly 18, 2016Zack Carlton, Planning Manager
Item Description Reviewed by
City of Elk River Chris Leeseberg, Senior Planner
Ordinance Amendment Relating to
Reviewed by
Distilleries in Industrial and Commercial
Cal Portner, City Administrator
Zoning Districts
Action Requested
Adopt, by motion, the Ordinance Amendment to allow micro distilleries and cocktail rooms in the City
of Elk River.
Background/Discussion
Case No. OA 16-06
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. 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 have seen a significant increase 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 micro distilleries 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.
City staff proposes adding micro distilleries 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 micro distillery 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
micro distillery. A cocktail room license does not prohibit the serving of food. The city liquor license
regulations have already been changed to allow for issuance of the required city licenses.
Financial Impact
None
Attachments
Ordinance Amendment
Strikethroughs to be removed
Underlines to be added
Ordinance 16 -
____
An Ordinance Amending Chapter 30 of the City of Elk River, Minnesota, City Code
of Ordinances to Permit Microdistilleries and Cocktail Room Uses
The City Council of the City of Elk River does hereby ordain as follows:
§,
SECTION 1.That 30-01of the City of Elk River Code of Ordinances shall be amended to add
the following definitions:
Cocktail Room means a licensed operation, accessory to a permitted microdistillery use, where
distilled spirits may be sold on-sale in accordance with state and local regulations.
a state licensed distillery producing distilled spirits with a total quantity not to
Microdistillery means
exceed 40,000 proof gallons in a calendar year
Proof gallon means one liquid gallon of distilled spirits that is 50 percent alcohol at 60 degrees
Fahrenheit
§,
SECTION 2.That 30-1024 (c) and (d) of the City of Elk River Code of Ordinances shall be
amended to add the following permitted and conditional uses:
(c) Accessory uses. Accessory uses in the C-3 district are as follows:
(7) Cocktail rooms
(d) Conditional uses. Conditional uses in the C-3 district are as follows:
(26) Microdistilleries
§,
SECTION 3.That 30-1292 (c) and (d) of the City of Elk River Code of Ordinances shall be
amended to add the following permitted and conditional uses:
(c) Accessory uses. Accessory uses in the I-1 district are as follows:
(3) Cocktail rooms
(d) Conditional uses. Conditional uses in the I-1 district are as follows:
(15) Microdistilleries
§ ,
SECTION 4.That 30-1293 (c)of the City of Elk River Code of Ordinances shall be amended to
add the following permitted and accessory uses:
(c) Accessory uses. Accessory uses in the I-2 district are as follows:
(3) Cocktail rooms
Last Updated March 2014
Strikethroughs to be removed
Underlines to be added
§ ,
SECTION 5.That 30-1294 (c) and (d)of the City of Elk River Code of Ordinances shall be
amended to add the following permitted and conditional uses:
(c) Accessory uses. Accessory uses in the BP district are as follows:
(7) Cocktail rooms
(d) Conditional uses. Conditional uses in the BP district are as follows:
(14) Microdistilleries
SECTION 6. That this ordinance shall take effect upon adoption and be published as provided by
law.
Passed and adopted by the City Council of the City of Elk River this 18th day of July, 2016.
______________________________
John J. Dietz, Mayor
ATTEST:
_______________________________
Tina Allard, City Clerk
Last Updated March 2014