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Item No: 6 Meeting Date: April 6, 2015 Type of Business: Worksession Administrator Review: _______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Heidi Heller, Planning Associate Item Title/Subject: Discuss a Possible Code Amendment to Allow Brew Pubs, Taprooms, Distilleries, Breweries or Wineries The City Council discussed allowing businesses like brewpubs or taprooms in the City since they are becoming very popular after the State of Minnesota loosened up regulations relating to these types of businesses. The Planning Commission discuss this at their February 18, 2015 meeting and are supportive of allowing any type of brewery or winery business. A new taproom, Hammerheart Brewing (www.hammerheartbrewing.com) recently opened in Lino Lakes, and Minneapolis and St. Paul already have several, with more in the works around the state and in the metro area. Currently the Mounds View City Code does not address brewpubs, taprooms or any type of distillery, brewery or winery, therefore none of them are allowed. Below is part of an article from the Pioneer Press describing brewpubs and taprooms and the rules in Minnesota. The three-tiered system in Minnesota saw some loosening in 2011, when legislation known as the "Surly Bill" was signed into law. The legislation allowed breweries to open taprooms, which serve beer on site, and helped pave the way for Surly Brewing Co.'s $20 million brewery underway in Minneapolis. Moore, however, said the legislation was not a boost to brewpubs, which could already serve beer on site. But brewpubs do have some advantages over taprooms. Taprooms are limited to selling the beer made on site, whereas brewpubs can serve liquor, wine and beer made elsewhere. Brewpub owners can also open multiple locations, but breweries are limited to one taproom, said Schwarz, who is CEO and co-owner of Lift Bridge Brewing Co. in Stillwater. Lift Bridge opened a taproom following passage of the Surly Bill. There are different definitions, rules and state licensing for each type of liquor manufacturing business. Here are general definitions for each: - Brewpub is a restaurant that produces its own beer for onsite and growler sales, while also selling spirits and the beer of others. Brewpubs can serve their own beer -- and the beer and liquor of other companies -- to patrons, but they cannot can, bottle, or keg their beer to sell to bars, restaurants, and stores.