Loading...
HomeMy WebLinkAbout2012-001 Council Ordinances1St Reading: January 9, 2012 Publication: January 31 , 2012 2nd Reading: January 23, 2012 Effective: March 1 , 2012 Council Member Roeser moved for adoption of the following ordinance: CITY OF LINO LAKES ORDINANCE NO. 1-12 AN ORDINANCE AMENDING SECTIONS 1, 7 AND 8 OF THE ZONING ORDINANCE TO CLEARLY ADD BREWERIES, BREWER TAPROOMS, AND BREW PUBS IN CERTAIN ZONING DISTRICTS Section 1 Findings Section 2, Subdivision 1 of the Zoning Ordinance requires consideration of possible adverse effects of a proposed zoning amendment and that the judgment of a proposed amendment to the Zoning Ordinance shall be based upon, but not limited to, the following factors: 1. The proposed action has been considered in relation to the specific policies and provisions of, and has been found to be consistent with, the official City Comprehensive Plan. Beverage production and bottling is an industrial operation that will only be allowed on lands zoned Light or General Industrial in compliance with the comprehensive plan, and Brew Pubs are restaurants that on a limited basis produce beverages along with food to serve to customers and will only be allowed on lands that are zoned Limited and General Business in compliance with the comprehensive plan. 2. The proposed use is or will be compatible with present and future land uses of the area. These uses are similar in operation to other uses that occur in the respective zoning districts and therefore will not cause compatibility issues with the present or future land uses of the areas they will occupy. 3. The proposed use conforms to all performance standards contained herein. These uses will need to comply with the performance standards of the zoning ordinance as they develop. 4. The proposed use can be accommodated with existing public services and will not overburden the City's service capacity. The proposed uses will only be allowed in Limited Business, General Business, Light Industrial, and General Industrial zones that are located along major roadways and on utility mains with capacity to serve industrial and commercial operations. 5 5. Traffic generation by the proposed use is within capabilities of streets serving the property. The proposed uses will only be allowed in Limited Business, General Business, Light Industrial, and General Industrial zones that are located along major roadways and on utility mains with capacity to serve industrial and commercial operations. The Lino Lakes Planning & Zoning Board held a public hearing on the amendment on December 14, 2011, and unanimously recommended approval of the amendment. Section 2 Amendment of Zoning Ordinance Approved The City Council of Lino Lakes ordains that Section 1, Subdivisions 2.B of the Zoning Ordinance is hereby amended as follows (deleted text in strikethrough, added text in underline): Beverage production and bottling. A facility for the production and bottling of beverages including but not limited to soft drinks, milk, beer, wine, spirits, etc., but not including hazardous or toxic materials. Brewer taproom. Facility on the premises of, or adjacent to, a malt liquor beverage production facility / brewery intended for the on -sale and consumption of malt liquor produced by the brewer pursuant to Minnesota Statute section 340A.301, subdivision 6b. A brewer taproom may include a restaurant. Brew Pub. A restaurant that conducts the retail sale of malt liquor brewed on the premise and licensed under Minnesota Statute section 340A.301, subdivision 6(d). Areas used exclusively for brewing operations shall not exceed 25 percent of the total floor area. Included within this use is the off -sale of malt liquor produced on site in refillable growlers pursuant to Minnesota Statutes section 340A.301, subdivision 7(b). Section 3 Amendment of Zoning Ordinance Approved The City Council of Lino Lakes ordains that Section 7 of the Zoning Ordinance is hereby amended as follows (deleted text in strikethrough, added text in underline): Section 7, Subdivision 2.F.8 and Section 7, Subdivision 3.F.10: Restaurants and Brew Pubs without drive-through service facilities and without outdoor dining or seating. 6 Section 4 Amendments of Zoning Ordinance Approved The City Council of Lino Lakes ordains that Section 8 of the Zoning Ordinance is hereby amended as follows (deleted text in strikethrough, added text in underline): Section 8, Subdivision 1.G.1 and Section 8, Subdivision 2.G.1: Beverage production and bottling, including public tours of the facilities and gift shops containing merchandise directly related to the facility. Bottling establishments to include beverages such as soft drinks, milk, etc., but not including hazardous or toxic materials. Section 8, Subdivision 1.H.7 and Section 8, Subdivision 2.H.7 Brewer taprooms accessory to a malt liquor beverage production and bottling facility. Section 8, Subdivision 1.H.8 and Section 8, Subdivision 2.H.8: Liquor sales, on sale through brewer taprooms and off sale pursuant to Minnesota Statutes section 340A.301, subdivision 7(b), all accessory to a malt liquor beverage production and bottling facility. Section 8, Subdivision 1.J.6 and Section 8, Subdivision 2.J.6 Accessory outdoor dining or seating facilities intended for consumption of food or beverages purchased on site, provided that requirements of Section 3, Subd. 15 are met. Section 5 Zoning Ordinance and City Code Stand as Amended As above amended, the Zoning Ordinance shall stand as initially passed and previously amended. Section 6 In Effect According to City Charter This ordinance shall be in force and effect from and to the Lino Lakes City Charter. tt st: Julianne B. el , 'ty Clerk Adopted by the Lino Lakes City Council this 23rd day of January 2012. The motion for the adoption of the foregoing ordinance was duly seconded by Council Member Rafferty and upon a vote being taken thereon, the following voted in favor thereof: Tneoroiio ng votes agathst s 'Donnell, (am r its passaglei d publication according eff Reinert n • e: Stoesz, Reinert none Whereupon said ordinance was declared duly passed and adopted. 7 CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Paul Bengtson MEETING DATE: January 23, 2012 TOPIC: Second Reading of Ordinance Number 1-12, amending the Zoning Ordinance to add brewpubs, beverage production and bottling, and taprooms as uses allowed in certain zoning districts. Resolution Number 12-09, summary of Ordinance Number 1-12 VOTE REQUIRED: 4/5 INTRODUCTION In 2011, Minnesota state law was changed to create a new class of liquor license called a brewer taproom license. The "Surly Bill," as it became known, provides new opportunities for micro breweries to sell their malt liquor products directly to the public on-site. Shortly after the passage of that bill, the City Council discussed the potential economic development opportunities for the City and directed staff to initiate the zoning ordinance and City Code amendments necessary to provide for these types of uses. BACKGROUND Current Statutory Licensing Scheme The licensing scheme for breweries is somewhat complicated. Small breweries are informally divided into two groups: brew pubs and microbreweries. Brew pubs (e.g. Granite City and Rock Bottom) are primarily retail establishments (restaurant/bar), with a small brewing business on the side. Microbreweries are production facilities who sell wholesale to retailers, albeit on a small scale. The Surly Bill allows some of these microbreweries to enter the on-site retail malt liquor sales business (i.e., the taprooms). The following table sets forth the statutory licensing authority and shows what the breweries are allowed to sell under state law: Type of Brewery Licensing Authority under M.S. § 340A.301 On -Sale? Off -Sale? Taproom Allowed? Brew pub Subd. 6(d) Yes, all liquor per on- sale intoxicating liquor license Yes, growlers only, per "growlers license" Not applicable Micro: < 2,000 barrels per year Subd. 6(i) Yes, malt liquor per taproom license Yes, growlers only, per "growlers license" Yes Micro: 2,000 to 3,500 barrels Subd. 6(j) Yes, malt liquor per taproom license Yes, growlers only, per "growlers license" Yes > 3,500 barrels per year Subd. 6(c) Yes, malt liquor per taproom license No Yes Note the following additional limitations: 1. Brew pubs and small breweries can off -sale growlers only if they have a so-called "growlers license" that specifically addresses such sales. Currently, the City does not have that type of license as an option. The City's liquor code will have to be modified to provide for it. 2. State law does not allow breweries to conduct off -sales of any containers other than growlers. A microbrewery cannot sell its own 12 -pack of bottles, for example, on a retail basis to an individual customer; it can only sell such bottles wholesale to retailers. 3. State law severely restricts "tastings" and "complimentary samples." Brewers in Minnesota cannot offer free samples of beer like major breweries do in other states. 4. The Surly Bill provided that it does not preclude "the holder of a brewer taproom license from also holding a license to operate a restaurant at the brewery." The "license to operate a restaurant" refers to the license obtained from the State Department of Health; it has nothing to do with liquor sales. Nothing in the Surly Bill allows an attached restaurant to have an intoxicating liquor license, as restaurants often do. In fact, the combination of a brewer's license and an intoxicating liquor license is expressly prohibited (except for brew pubs). So, if a brewery decides to open a restaurant as part of its taproom, the only liquor that can be served there is malt liquor brewed on site. Zoning Ordinance — Micro breweries Definition Clarification — Bottling Plants The definition section of the Zoning Ordinance does not contain a definition pertaining to breweries or any other kind of bottling plants. In the sections relating to the Light and General Industrial (LI and GI) zoning districts, however, there is listed, as a permitted use, "Bottling Establishments to include beverages such as soft drinks, milk etc., but not including hazardous or toxic materials." Staff interprets the term "beverage" to include beer, wine, and spirits, and it is the staff's position the production of such beverages, whether by brewing, distilling or vinification, is appropriate in the LI and GI zoning districts. Consequently, such facilities are arguably already possible under the existing language. But, to provide more clarity, staff is proposing to add a definition for "beverage production and bottling" that will specifically reference beer, wine and spirits production. Tap Rooms Tap rooms are not defined, or even mentioned, in the Zoning Ordinance. The amendments include a definition of tap rooms and characterize them as accessory uses to breweries with a taproom license. This will necessarily limit taprooms to the LI and GI districts. Restaurants The Surly Bill does not preclude breweries with a taproom license from operating a restaurant, but the existing Zoning Ordinance does not allow restaurants in the LI and GI districts where the breweries would be located. In order make them permissible, the amendments will include restaurants in the definition of a taproom. By linking restaurants to taprooms, no other types of restaurants will be permitted in the LI and GI districts. As mentioned above, these restaurants will be limited to serving malt liquor brewed on the premises. Liquor Sales The Zoning Ordinance addresses liquor sales not just by the type of facility (bar, restaurant, liquor store, etc.), but also as a separate type of use. For example, in the General Business district, "liquor sales, on and off sale" is itself listed as a permitted use, without being linked to any type of facility. Not surprisingly, the industrial districts do not list liquor sales as a permissible use. For the sake of consistency, the proposed amendments add liquor sales to the LI and GI districts. Such sales will be linked to taprooms and listed only as a use accessory to a beverage production and bottling facility. This will allow breweries to conduct their limited malt liquor sales in their taprooms without allowing liquor stores, bars, brew pubs, etc. to move into the industrial districts. Facility Tours and Gift Shops There has been discussion about allowing breweries to conduct tours and have gift shops, much like the large-scale breweries elsewhere. Given that such uses are likely to be quite minor relative to the overall production facilities, staff feels that they can be included as part of the permitted use under beverage production and bottling. Outdoor Dining Also included in the amendments is a provision that allows for outdoor dining or seating facilities at the brewery taprooms in the LI and GI districts. This is handled by administrative permit. Zoning Ordinance — Brew Pubs 3 As discussed above, brew pubs are essentially retail restaurants/bars with a small micro brewery business. They are licensed under a different statutory provision than typical microbreweries. Currently, only the Limited and General Business (LB and GB) districts allow both restaurants and on sale/off sale liquor sales. Because brew pubs operate as restaurants with on -sale liquor licenses and possibly also off -sale growler licenses, staff is proposing that only within those zoning districts should brew pubs be allowed. The amendments add a definition for brew pubs, and add them as permitted uses in the LB and GB districts. RECOMMENDATIONS On December 1, 2011 the Economic Development Advisory Committee met and discussed the proposed ordinance amendment, ultimately recommending approval of the ordinance changes. On December 14, 2011 the Planning and Zoning Board met and discussed the proposed amendment, unanimously recommending approval of the ordinance changes with additions to cover outdoor dining for brewer's taprooms and direct retail sale of refillable growlers. Staff recommends dispensing with the full reading of the ordinance and approval of the second reading of Ordinance Number 1-12. ATTACHMENTS 1. Ordinance Number 1-12 2. Resolution Number 12-09 4