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Item No: 7D1 Meeting Date: August 22, 2016 Type of Business: Council Business Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Jon Sevald, Planner Item Title/Subject: Public Hearing, and Second Reading and Adoption of Ordinance 926, an Ordinance amending Title 1100 of the Mounds View City Code, Chapters 1102, 1113, 1114, and 1116 relating to Microbreweries, Microdistilleries, Taprooms, and Cocktail Rooms Introduction: A Taproom essentially is a bar which sells beer produced only on-site in a Microbrewery. Many Taprooms have opened in recent years in the Twin Cities. In order for one to locate in Mounds View, both the Zoning Ordinance (Title 1100) and the Business Licensing Ordinance (Title 500) must be amended. This Staff Report addresses the Zoning amendment. Discussion: This topic was discussed by the City Council on August 1st (Work Session) and August 8th (Introduction & First Reading). The consensus of the Council was to allow Microbreweries with or without a Taproom, and Microdistilleries with or without a Cocktail Room in appropriate zoning districts. There was additional discussion about setbacks between such uses, and schools and churches. These setbacks are addressed in Title 500 (Business License Regulations) and will be discussed in the next Staff Report, Item 7D2. Changes between First Reading and Second Reading: Two significant changes were made since the First Reading of Ordinance 926: 1. Definitions for Micro, Regional, and National breweries were removed. The three categories of breweries have been combined into “Microbreweries” to include any classification of brewery licensed by the State producing a maximum of 250,000 barrels per year. If larger, the brewery would not qualify for a Taproom per State law (MN Stat §340A.26, Subd 2; Prohibition), thus, Staff would interpret the brewery as “manufacturing”. The manufacturing of alcohol would be a permitted use in the I-1 district, whether as a Microbrewery, Microdistillery, or as the manufacturing of “food products”. 2. State law does not prohibit Taprooms from operating as a restaurant, thus, there is no need to regulate Brewpubs separate from Taprooms. “Brewpubs” was removed.