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Item No: 5A Meeting Date: July 6, 2016 Type of Business: Planning Case SP -194-15 MUU-NDS VIEW MEMO To: Mounds View Planning Commission From: Jon Sevald, Planner Re: Consider Resolution 1053-16, a Resolution recommending approval of a Text Amendment to the Mounds View Municipal Code, Chapters 1102, 1113, 1114, 1115, and 1116 relating to breweries, brew pubs, micro -distilleries, taprooms, and cocktail rooms. Date: July 6, 2016 Introduction In recent years, a number of taprooms have opened in Minneapolis and St. Paul, and more locally in Lino Lakes and Anoka. There are plans for taprooms in Blaine and Coon Rapids as well. In order for one to open in Mounds View, the Zoning Code must be amended to allow the location; and the City's Liquor Licensing Code must be amended to regulate on -sale and off -sale of beer and alcohol. This proposed amendment only addresses the zoning part. The City Council will act on the liquor licensing separately. Discussion State laws were changed in 2011 (Surley Bill) to allow small breweries to sell alcohol to consumers, on and off the premises. Since then, a number of micro -breweries with taprooms have sprung up around the Twin Cities. A "brew pub" is a restaurant that manufactures their own beer. A "micro -brewery" or "micro -distillery" is a manufacturer of a limited quantity of alcohol, and may have a taproom or cocktail room on or adjunct to the manufacturing that acts as a bar. Over the past year, Mounds View has received inquiries about allowing a micro -brewery with a taproom. The City Code does not specifically permit this use, and therefore it is prohibited. The Planning Commission previously discussed this topic on April 15, 2015, and June 1, 2016, indicating a preference to allow brew pubs (brewery & restaurant), and micro -breweries with a taproom (bar) in the B-3 and B-4 districts. Amending the City Code to allow this type of use involves an amendment to the City's zoning regulations, and City liquor licensing regulations. The licensing ordinance is much more complex. Once Staff drafts the licensing requirements, this and the zoning amendment will be brought to the City Council.