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Item No: 1 Meeting Date: August 1, 2016 Type of Business: Discussion Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Jon Sevald, Planner Item Title/Subject: Breweries, Brewpubs, Distilleries, and Taprooms Introduction: Since the 2011 “Surly Bill” was passed by the Legislature allowing micro-breweries to sell alcohol on-site (versus selling through distributors), many micro-breweries with taprooms have opened across Minnesota. Staff has received two or three inquiries if one would be allowed in Mounds View. In order for a taproom to be located in the City, the Municipal Code, Title 500 (Business License Regulations) and Title 1100 (Zoning Code) must be amended. Discussion: As of January 2016, there were 75 licensed micro-breweries in Minnesota, including 29 brew pubs, and 21 tap rooms. Alcohol manufacturing and retailers are licensed by the MN Dept. of Public Safety, and by individual cities. Key Terms (simplified): Brew pub: A restaurant with an on-site brewery, licensed for on-sale and/or off-sale. Micro-Brewery: A MN licensed manufacturer of up to 2,000 barrels (62,000 gallons). Micro-Distillery: A MN licensed manufacturer of up to 40,000 gallons. On-Sale: Retail sales of alcohol limited to on-site consumption. Off-Sale: Retail sales of alcohol limited to off-site consumption. Tap Room / Cocktail Room: A brewery/distillery with an adjacent bar for on-sale and/or off-sale of growlers. Title 1100: Zoning Code: The Planning Commission discussed this topic on April 15, 2015, and July 6, 2016, recommending approval of an amendment to the Zoning Code. In summary, Brew Pubs would be treated similar to restaurants; Tap Rooms/Cocktail Rooms would be treated similar to a bar; and National/Regional breweries/distilleries would be treated similar to manufacturing.