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7.1 SR 05-19-2025The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To City Council Item Number 7.1 Meeting Date May 19, 2025 Prepared By Chris Leeseberg, Senior Planner Item Description Conditional Use Permit: AEGIR Brewing Company LLC, 19050 Industrial Blvd. NW Reviewed by Zack Carlton Cal Portner Tina Allard Action Requested Approve, by motion, the amended Conditional Use Permit with the following conditions to satisfy the standards set forth in Section 30-654: 1. The Conditional Use Permit shall not be recorded until the city building official and fire marshal have inspected and approved the building for compliance with all state and local building codes and all applicable conditions of approval have been completed. 2. The space labeled “Event Space” may only be used for corn hole/corn bag toss lanes; any other use shall require a special event permit. 3. All comments on the Comment Letter dated July 20, 2023, shall be addressed. 4. No tap room operations or expanded brewery operations can occur until: 1. The Conditional Use Permit has been recorded. 2. The building has received a Certificate of Occupancy. 5. A taproom license shall be obtained from the state and city. 6. No more than 20,000 barrels of its own brands of malt liquor may be brewed annually. 7. Parking areas shall be used for parking only, except for the 12 special events allowed per year. 8. Any outdoor patio area shall be delineated with a permanent fence and shall not be in required parking areas. 9. No demolition or construction activities can occur within or on the exterior of the building until the Conditional Use Permit is approved and a building permit has been applied for and issued. 10. Conditional Use Permit CU 20-15 shall become void. Background/Discussion The applicant is requesting an amendment to Conditional Use Permit (CUP) 23-17 to allow the parking areas to be used for all special event permit activities. Parking was the main topic of discussion during the review of the previous CUP, as the property lacks the required number of parking spaces by ordinance for day-to-day operations, creating ongoing issues of supporting their parking needs off-site. The inclusion of the following condition, addressing parking concerns, Page 130 of 197 supported the city’s approval of the previous CUP: parking areas shall be used for parking only and may not be used for outdoor patio areas or other activities such as, but not limited to, seating, bands, or events/shows. The applicant thought the parking condition, when the previous CUP was approved, was for day-to-day parking, not special event permits. He wants the condition to be like the original CUP and is now open to restricting the number of days to 4–5 times a year for events such as car shows, kids' events, etc. The applicant is allowed to have a maximum of 12 special events per year. Planning Commission During the public hearing, the applicant spoke in support of his request, outlining why he wanted to use the parking spaces during special events only. He said the parking lot is used for car shows and bean bag tournaments during special events. No one else spoke for or against the request, and staff have not received any comments since the commission meeting. The Planning Commission had limited questions and no concerns about the request and unanimously recommended approval, allowing the parking lot to be closed during the 12 special events. Financial Impact None Mission/Policy/Goal Appropriately govern in an ever-changing environment. Attachments 1. Planning Commission Staff Report dated 04-22-2025 2. CU 25-03 Recording Document 3. 7.1 Presentation Page 131 of 197 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity [ITEM_HEAD] Request for Action To Planning Commission Item Number 4.2 Meeting Date April 22, 2025 Prepared By Chris Leeseberg, Senior Planner Item Description Conditional Use Permit: AEGIR Brewing Company LLC, 19050 Industrial Blvd. NW Reviewed by Zack Carlton Action Requested Recommend, by motion, approval of the amended Conditional Use Permit with the following conditions to satisfy the standards set forth in Section 30-654: 1. The Conditional Use Permit shall not be recorded until the city building official and fire marshal have inspected, and approved, the building for compliance with all state and local building codes and all applicable conditions of approval have been completed. 2. The space labeled “Event Space” shall only be used for corn hole/corn bag toss lanes and any other uses shall require a special event permit. 3. All comments on the Comment Letter dated July 20, 2023, shall be addressed. 4. No tap room operations or expanded brewery operations can occur until: 1. The Conditional Use Permit has been recorded. 2. The building has received a Certificate of Occupancy. 5. A taproom license shall be obtained from the state and city. 6. No more than 20,000 barrels of its own brands of malt liquor may be brewed annually. 7. Parking areas shall be used for parking only and may not be used for outdoor patio areas or other activities such as, but not limited to, seating, bands, or events/shows. 8. Any outdoor patio area shall be delineated with a permanent fence and shall not be in required parking areas. 9. No demolition or construction activities can occur within or on the exterior of the building until the Conditional Use Permit is approved and a building permit has been applied for and issued. 10. Conditional Use Permit CU 23-17 shall become void. Background/Discussion The applicant is requesting an amendment to Conditional Use Permit (CUP) 23-17 to allow the parking areas to be used for all special event permit activities. Parking was the main topic of discussion during the review of the previous CUP as the property lacks the required number of parking spaces by ordinance for day-to-day operations, creating ongoing issues of supporting their parking needs off-site. Inclusion of the following condition addressing parking concerns Page 132 of 197 supported the city’s approval of the previous CUP: that parking areas shall be used for parking only and may not be used for outdoor patio areas or other activities such as, but not limited to, seating, bands, or events/shows. The applicant is allowed to have a maximum of 12 special events per year. Staff continue to have the same concern about on-site parking and relying 100% on city streets or neighboring parking lots. Applicable Regulations The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location: 1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the city. With proper on-site parking, the proposed industrial use, within the industrial park, will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience, or general welfare of the neighborhood or the city. 2. Will be consistent with the comprehensive plan. The property is guided for industrial uses, and the proposed use is a considered use in the industrial zoning district. The use will be consistent with the Comprehensive Plan. 3. Will not impede the normal and orderly development and improvement of surrounding vacant property. With the exception of a city-owned (EDA) parcel, there are no other vacant properties in the development. The use will not impede the normal and orderly development and improvement of surrounding vacant property. 4. Will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares. The applicant has had issues supporting their parking needs on-site in the evenings. Utilizing street parking as a substitute for required on-site parking can adversely impact large vehicular traffic (semi-trucks) within an established industrial area and would affect the surrounding business uses. The primary parking for this use will be for taproom customers and may occur after the traditional business hours of industrial uses. Some industrial users can operate 24/7. Due to ongoing parking issues, the following condition was approved with the previous CUP: parking areas shall be used for parking only and may not be used for outdoor patio areas or other activities such as, but not limited to, seating, bands, or events/shows. This is the condition the applicant has requested to be removed. 5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations. As outlined in standard #4, street parking could be detrimental for existing businesses due to the potential of reduced drive widths for large truck deliveries to navigate through. 6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. The proposed amendment will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. Page 133 of 197 7. Will fully comply with all other requirements of this Code, including any applicable requirements and standards for the issuance of a license or permit to establish and operate the proposed use in the city. The use will need to fully comply with all other requirements of this Code, including any applicable requirements and standards for the issuance of a license or permit to establish and operate the proposed use in the city. A freestanding sign was installed on the property without a permit. A sign permit shall be applied for. Financial Impact None Mission/Policy/Goal Appropriately govern in an ever-changing environment. Attachments 1. Location Map 2. Narrative 3. Aerial 4. CU 23-17 Recording Document Page 134 of 197 Page 135 of 197 THERE IS NO CHANGE TO OUR CURRENT BUILINDING OR LAYOUT. I was unsure of the exact plan that was submitted with the last CUP and didn’t want to add any confusion to this new CUP. We are applying to amend our current CUP to allow the use of our own entire property to be used for events when we have acquired a special event permit. No change to the building or property layout or any other operations are being requested through this CUP. Page 136 of 197 Page 137 of 197 Page 138 of 197 Page 139 of 197 CITY OF ELK RIVER SHERBURNE COUNTY CONDITIONAL USE PERMIT Case No. CU 25-03 Permit. Subject to the terms and conditions set forth herein, the City of Elk River hereby grants a conditional use permit (“Permit”) requested by AEGIR Brewing Company LLC, for the following use: Conditional Use Permit to operate a Tap Room/Continue Brewing Operations at 19050 Industrial Blvd. NW Property. The Permit is for the following described property (“Subject Property”) in the City of Elk River, Sherburne County, Minnesota: Lot 4, Block 2, EXCEPT the East 80 feet, ELK RIVER INDUSTRIAL PARK, according to the map or plat thereof on file and of record in the office of the County Recorder of Sherburne County, Minnesota. Owner. Owner of the Subject Property at time of the approval of the Permit: True Blue Properties LLC, owner Conditions. The Permit is issued subject to the following conditions to satisfy the standards set forth in Section 30-654: 1. The Conditional Use Permit shall not be recorded until the city building official and fire marshal have inspected, and approved, the building for compliance with all state and local building codes and all applicable conditions of approval have been completed. 2. The space labeled “Event Space” shall only be used for corn hole/corn bag toss lanes and any other uses shall require a special event permit. 3. All comments on the Comment Letter dated July 20, 2023, shall be addressed. 4. No tap room operations or expanded brewery operations can occur until: a. The Conditional Use Permit has been recorded. b. The building has received a Certificate of Occupancy. 5. A taproom license shall be obtained from the state and city. 6. No more than 20,000 barrels of its own brands of malt liquor may be brewed annually. Page 140 of 197 7. Parking areas shall be used for parking only except for the 12 special events allowed per year. 8. Any outdoor patio area shall be delineated with a permanent fence and shall not be in required parking areas. 9. No demolition or construction activities can occur within or on the exterior of the building until the Conditional Use Permit is approved and a building permit has been applied for and issued. Termination of Permit. The Permit shall remain in effect only for so long as the conditions set for the herein are complied with. The City may revoke the Permit following a public hearing for violation of the terms and/or conditions set forth in the Permit. Lapse. If within two (2) years of the issuance of the Permit the proposed work described in a conditional use permit has not been substantially completed, the permit shall expire and become void, except that the council may, following recommendation of the planning commission, extend the permit for an additional period determined by the council on the receipt of a request for a permit extension prior to its expiration. A conditional use permit authorizes only the use specified in the permit and shall expire if, for any reason, the authorized use ceases for more than six (6) months. Criminal Penalty. Both the owner and any occupant of the Subject Property are responsible for compliance with the permit. Violation of the terms of the Permit is a criminal misdemeanor. Recording. The Permit shall be recorded against the title to Subject Property. Dated: May 19, 2025 CITY OF ELK RIVER By: ___________________________________ Mayor By: ___________________________________ City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF SHERBURNE ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2025, by John J. Dietz and Tina Allard, respectively, the Mayor and City Clerk of the City of Elk River, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by the City Council. ____________________________________ DRAFTED BY: Notary Public City of Elk River 13065 Orono Parkway Elk River, MN 55330 763-635-1032 Page 141 of 197 AEGIRConditional Use Permit Page 142 of 197 Page 143 of 197 Background §Amendment to CUP (CU 23-17) §To allow parking areas be used for all 12 special event permits Page 144 of 197 Background §Parking - main topic during previous CUP review §Lacks number of required parking for day-to-day operations §Creating ongoing issues of supporting their parking needs off-site §Existing condition: §That parking areas shall be used for parking only and may not be used for outdoor patio areas or other activities such as, but not limited to, seating, bands, or events/shows. Page 145 of 197 Planning Commission §Applicant outlined his request §No one spoke for or against the request §The PC had limited questions and no concerns §Unanimously recommended approval §Allowing the parking lot to be closed during the 12 special events Page 146 of 197 Action Requested §Approve, by motion, the amended CUP with the 10 conditions outlined in the memo Page 147 of 197