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HomeMy WebLinkAboutZOA-17-01cty of 'OrW heatidge ITEM NO: I. DATE: April 10, 2017 REQUEST FOR CITY COUNCIL ACTION f?TI'r TITLE: COUNCIL BILL NO. 05-2017 - AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES (CASE NO. ZOA-17-01) ® PUBLIC HEARING ❑ ORDINANCES FOR 1 ST READING (03/27/2017) ❑ BIDS/MOTIONS ® ORDINANCES FOR 2ND READING (04/10/2017) ❑ RESOLUTIONS QUASI-JUDICIAL: ❑ YES ® NO P Community Dev lopment Director City Manager ISSUE: The City's zoning code is currently silent with respect to all alcohol production facilities. On a case-by-case basis, the City has approved small brewery operations by classifying them as similar to light industrial or restaurant uses, as appropriate. The goal of this code amendment is to provide clarity in the code for staff and for potential businesses in terms of what and where certain types of alcohol production is permitted in the City. PRIOR ACTION: Staff raised this issue to City Council for discussion on December 5, 2016, and was directed to proceed with a code amendment to provide clarity and to establish reasonable regulations allowing small-scale alcohol production. At the January 5, 2017 Planning Commission meeting, staff presented a proposed regulatory framework, and commissioners expressed their support. At a public hearing on March 16, 2017, Planning Commission voted to recommend approval of the proposed ordinance, and draft meeting minutes from the public hearing are enclosed. On March 27, 2017, City Council approved the ordinance on first reading by a vote of 5-0. Council Action Form — Small-scale Alcohol Production April 10, 2017 Page 2 FINANCIAL IMPACT: It is difficult to predict the impact of this ordinance on potential sales tax generation and job creation; however, small-scale alcohol production has had a positive economic impact in the metro area and in Colorado as a whole. BACKGROUND: As the craft beer industry has expanded in Colorado and the Denver Metro area, the City's Community Development Department has experienced a continued level of interest from potential small-scale breweries and distilleries. The zoning code's silence on this land use has created unnecessary frustration, delay, and uncertainty for staff and business owners. Proposed Regulations The proposed ordinance provides a regulatory framework to allow small-scale alcohol production facilities in Wheat Ridge. Large-scale alcohol production is classified as "manufacturing," is allowed in industrial zone districts, and is not addressed by this code amendment. It is proposed the regulations for small-scale alcohol production be based on the size or production volume of an operation and whether the operation has a taproom. Taprooms provide a customer -facing element, which makes a service or retail -oriented zone district a more appropriate location. The provisions of the code amendment are summarized below. • Eating Establishment — The term "eating establishment" is currently used but not defined in the zoning code. A definition is proposed in the ordinance and will allow accessory alcohol production. These types of operations already exist in the City and a definition would provide clarity for future businesses. • Microbrewery, microdistillery, and microwinery — Definitions for each of these terms are proposed in the ordinance and each is based on production volume. The definitions and volume thresholds are consistent with state liquor laws, industry standards, and regulations in other communities. • Taproom — A definition for "taproom" is proposed in the ordinance, and this is the operational feature that would differentiate where in the City small-scale alcohol production is permitted. Those without a taproom would be permitted only in the Industrial -Employment and Mixed Use -Commercial Interstate zone districts. Those with taprooms would require a special use permit in the Neighborhood Commercial and Restricted Commercial zone districts, but would be permitted in all other commercial and mixed-use districts. Staff has worked closely with the Clerk's Office, which staffs the City's Liquor Licensing Authority. This code amendment would provide much needed clarity for staff and business owners and would modernize the zoning code relative to a well-established Colorado industry. Council Action Form — Small-scale Alcohol Production April 10, 2017 Page 3 RECOMMENDATIONS: Staff recommends approval of the ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 05-2017, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities, on second reading, and that it take effect 15 days after final publication." Or, "I move to postpone indefinitely Council Bill No. 05-2017, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities, for the following reason(s) " REPORT PREPARED BY: Lauren Mikulak, Senior Planner Kenneth Johnstone, Community Development Director Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 05-2017 2. Draft Meeting Minutes — March 16, 2017 Planning Commission Public Hearing CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER MATHEWS COUNCIL BILL NO. 05 ORDINANCE NO. Series 2017 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES WHEREAS, the City of Wheat Ridge is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in exercise of that authority, the City Council of the City of Wheat Ridge has previously enacted Chapter 26 of the Wheat Ridge Code of Laws pertaining to zoning, land use, and development; and WHEREAS, the City is witnessing increasing interest from operators of small- scale alcohol producers to locate new facilities in the City of Wheat Ridge; and WHEREAS, the City Council recognizes the possible benefits of allowing this use in the City relative to economic development; and WHEREAS, the City Council finds that this ordinance will provide much needed clarity in the zoning code regarding this use; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-123 (Definitions) of the Code is amended by the addition of the following definitions in their appropriate alphabetical locations: EATING ESTABLISHMENT. AN ESTABLISHMENT WHERE FOOD AND BEVERAGES ARE PREPARED AND SOLD TO THE PUBLIC, WHICH MAY INCLUDE ACCESSORY ALCOHOL PRODUCTION. MICROBREWERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) BARRELS PER YEAR OF FERMENTED MALT OR MALT LIQUOR BEVERAGES ON SITE. MICRODISTILLERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) GALLONS PER YEAR OF SPIRITUOUS BEVERAGES ON SITE. MICROWINERY. A FACILITY THAT PRODUCES NO MORE THAN ONE HUNDRED THOUSAND (100,000) GALLONS PER YEAR OF VINOUS BEVERAGES ON SITE. Attachment 1 TAP ROOM. A USE ASSOCIATED WITH AND ON THE SAME PREMISES AS A MICROBREWERY, A MICRODISTILLERY, OR A MICROWINERY FACILITY WHICH SELLS AND SERVES ALCOHOL BEVERAGES FOR CONSUMPTION ON THE LICENSED PREMISES, SELLS ALCOHOL BEVERAGES IN SEALED CONTAINERS FOR CONSUMPTION OFF THE PREMISES, OR BOTH. Section 2. Section 26-204 of the Code, Table of Uses for Commercial and Industrial Districts, is amended by the addition of the following rows in their appropriate alphabetical location: Uses NC RC C-1 C-2 I -E MICROBREWERY, MICRODISTILLERY, OR S S P P P MICROWINERY; WITH A TAP ROOM P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM MICROWINERY; WITHOUT A TAP ROOM Section 3. Section 26-1111.8. Permitted Uses, Commercial Services and Retail, in the mixed use zone districts, is amended by the addition of the following rows in their appropriate alphabetical location: Use Group MU -C MU -C Interstate MU -C TOD MU -N Commercial Services and Retail MICROBREWERY, MICRODISTILLERY, OR P P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM Section 4. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 5. Effective Date. This ordinance shall take effect 15 days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 5 to 0, this 27th day of March, 2017 and ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for April 10, 2017 at 7 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of , 2017. SIGNED by the Mayor on this day of , 2017. Joyce Jay, Mayor ATTEST: Janelle Shaver, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: March 30, 2017 Second Publication: Wheat Ridge Transcript Effective Date: Published: Wheat Ridge Transcript and www.ci.wheatridge.co.us 1. 2. 3. 4. 5. 6. City of l W heat fidge PLANNING COMMISSION Minutes of Meeting March 16, 2017 CALL THE MEETING TO ORDER The meeting was called to order by Chair OHM at 7:01 p.m. in the City Council Chambers of the Municipal Building, 7500 West 291h Avenue, Wheat Ridge, Colorado. ROLL CALL OF MEMBERS Conm ission Members Present: Commission Members Absent: Staff Members Present: PLEDGE OF ALLEGIANCE Dirk Boden Emery Dorsey Donna Kimsey Janet Leo Scott Ohm Vivian Vos Alan Bucknam Amanda Weaver Lauren Mikulak, Senior Planner Tammy Odean, Recording Secretary APPROVE ORDER OF THE AGENDA It was moved by Commissioner KIMSEY and seconded by Commissioner LEO to approve the order of the agenda. Motion carried 6-0. APPROVAL OF MINUTES —March 2, 2017 It was moved by Commissioner DORSEY and seconded by Commissioner KIMSEY to approve the minutes of March 2, 2017, as written. Motion passed 6-0. PUBLIC FORUM (This is the time for any person to speak on any subject not appearing on the agenda.) No one wished to speak at this time. Planning Commission Minutes March 16, 2017 Attachment 2 - 1 — 7. PUBLIC HEARING A. Case No. ZOA-17-01: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities. Ms. Mikulak gave a short presentation regarding the proposed ordinance. She entered into the record the contents of the case file, zoning code and the draft ordinance. She stated public notice requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. The Connnissioners did not have any questions for Ms. Mikulak. It was moved by Commissioner DORSEY and seconded by Commissioner KIMSEY to recommend approval of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities. Motion carried 6-0. B. Case No. ZOA-17-02: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of site design standards for site grading, retaining walls and stormwater faciiUies. Ms. Mikulak gave a short presentation regarding the proposed ordinance. She entered into the record the contents of the case file, zoning code, the contents of the digital presentation and the draft ordinance. She stated public notice requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. Commissioner VOS asked if detention ponds will be adjacent to impervious surfaces and if staff will get to view the developer's plans. Ms. Mikulak stated that a pond may or may not be adjacent to the impervious surface depending on the topography and design of the site. Typically, a pond is located on the the downhill side of a site, so it may or may not be visible. She also explained that staff will see the developer's plans. Commissioner VOS also asked if this ordinance will apply retroactively to the substandard designs that already exist. Ms. Mikulak explained that there will be no provision to make current facilities retroactive, but staff will be enforcing landscape maintenance to ensure that what exists is maintained. Planning Commission Minutes -2— March 2— March 16, 2017 Small Scale Alcohol • The City's zoning code is currently silent as it pertains to alcohol production facilities — large and small • On a case-by-case basis, we have approved licenses for small brewery operations, determining them to be most similar to restaurants — Rickoli and Colorado Plus are examples • However, when receive inquiries for potential larger micro breweries or distilleries, we can't provide a very concrete answer to these folks • As a general matter, we feel the City would like to embrace the burgeoning micro brewery and micro distillery industry that has become popular in CO • To that end, we have drafted an ordinance that makes "microbreweries, microdistilleries and microwineries" a permitted use in most commercial and mixed use districts, so long as they provide a tap room that is open to the public • Larger production facilities or facilities without a public tasting room would be a use by right only in our Industrial/Employment zone district • In defining the production threshold for what constitutes "micro", we have borrowed from a number of other front range jurisdictions and industry standards. We have aimed to be generous in those amounts to encourage these uses to locate in Wheat Ridge City of Wheat j, PLANNING COMMISSION Co mUNm DEVELoI'M ENr LEGISLATIVE ITEM STAFF REPORT MEETING DATE: March 16, 2017 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES CASE NO. ZOA-17-01 Pc ® PUBLIC HEARING ® CODE CHANGE ORDINANCE Case Manager: Lauren Mikulak Date of Preparation: March 7, 2017 SITMMARV- The City's zoning code is currently silent with respect to all alcohol production facilities. On a case-by-case basis, the City has approved small brewery operations by classifying them as similar to light industrial or restaurant uses, as appropriate. The goal of this code amendment is to provide clarity in the code for staff and for potential businesses in terms of what and where certain types of alcohol production is permitted in the City. Notice for this public hearing was provided by the Code of Laws. BACKGROUND: As the craft beer industry has expanded in Colorado and the Denver Metro area, the City's Community Development Department has experienced a continued level of interest from potential small-scale breweries and distilleries. The zoning code's silence on this land use, however, has created unnecessary frustration, delay, and uncertainty for staff and business owners. Staff raised this issue to City Council for discussion on December 5, 2016, and was directed to proceed with a code amendment to provide clarity and to establish reasonable regulations allowing small-scale alcohol production. At the January 5, 2017 Planning Commission meeting, staff presented a proposed regulatory framework, and Commissioners expressed their support for the approach. The enclosed ordinance includes the same provisions that were previously discussed with City Council and Planning Commission. Proposed Regulations The proposed ordinance provides a regulatory framework to allow small-scale alcohol production facilities in Wheat Ridge. Large-scale alcohol production is classified as "manufacturing," allowed in industrial zone districts, and is not addressed by this code amendment. The proposed regulations for small-scale alcohol production are be based on the size or production volume of an operation and based on whether the operation has a taproom. Taprooms provide a customer -facing element making an operation more appropriate to be located in a service- or retail - oriented zone district. The provisions of the code amendment are summarized below. • Eating Establishment — The term "eating establishment" is currently used but not defined in the zoning code. A definition is proposed in the ordinance and will allow accessory alcohol production. These types of operations already exist in the City and would provide clarity for new businesses in the future. Microbrewery, microdistillery, and microwinery — Definitions for each of these terms are proposed in the ordinance and each is based on production volume. The definitions and volume thresholds are consistent with state liquor laws, industry standards, and regulations in other communities. Taproom — A definition for "taproom" is proposed in the ordinance, and this is the operational feature that would differentiate where in the City small-scale alcohol production is permitted. Those without a taproom would be permitted only in the Industrial -Employment and Mixed Use -Commercial Interstate zone districts. Those with taprooms would require a special use permit in the Neighborhood Commercial and Restricted Commercial zone districts, but would be permitted in all other commercial and mixed use districts. Staff has worked closely with the Clerk's Office, which staffs the City's Liquor Licensing Authority. This code amendment would provide much needed clarity for staff and business owners and would modernize the zoning code relative to a well-established Colorado industry. RECOMMENDED MOTION: "I move to recommend approval of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities." Exhibits: 1. Proposed Ordinance ZOA-17-01 /Small-scale Alcohol Production CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER COUNCIL BILL NO. ORDINANCE NO. Series 2017 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES. WHEREAS, the City of Wheat Ridge ("City") is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in exercise of that authority, the City Council of the City of Wheat Ridge has previously enacted Chapter 26 of the Wheat Ridge Code of Laws (the "Code") pertaining to zoning, land use, and development; and WHEREAS, the City is witnessing increasing interest from operators of small-scale alcohol producers to locate new facilities in the City of Wheat Ridge; and WHEREAS, the City Council recognizes the possible benefits of allowing this use in the City relative to economic development; and WHEREAS, the City Council finds that this ordinance will provide much needed clarity in the zoning code regarding this use; and NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-123 (Definitions) of the Code is amended by the addition of the following definitions in their appropriate alphabetical locations: EATING ESTABLISHMENT. AN ESTABLISHMENT WHERE FOOD AND BEVERAGES ARE PREPARED AND SOLD TO THE PUBLIC, WHICH MAY INCLUDE ACCESSORY ALCOHOL PRODUCTION. MICROBREWERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) BARRELS PER YEAR OF FERMENTED MALT OR MALT LIQUOR BEVERAGES ON SITE. MICRODISTILLERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) GALLONS PER YEAR OF SPIRITUOUS BEVERAGES ON SITE. MICROWINERY. A FACILITY THAT PRODUCES NO MORE THAN ONE HUNDRED THOUSAND (100,000) GALLONS PER YEAR OF VINOUS BEVERAGES ON SITE. TAP ROOM. A USE ASSOCIATED WITH AND ON THE SAME PREMISES AS A MICROBREWERY, A MICRODISTILLERY, OR A MICROWINERY FACILITY WHICH SELLS AND SERVES ALCOHOL BEVERAGES FOR CONSUMPTION ON THE LICENSED PREMISES, SELLS ALCOHOL BEVERAGES IN SEALED CONTAINERS FOR CONSUMPTION OFF THE PREMISES, OR BOTH. Section 2. Section 26-204 of the Code, Table of Uses for Commercial and Industrial Districts, is amended by the addition of the following rows in their appropriate alphabetical location: Uses NC RC C-1 C-2 I -E MICROBREWERY, MICRODISTILLERY, OR S S P P P MICROWINERY; WITH A TAP ROOM P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM MICROWINERY; WITHOUT A TAP ROOM Section 3. Section 26-1111.8. Permitted Uses, Commercial Services and Retail, in the mixed use zone districts, is amended by the addition of the following rows in their appropriate alphabetical location: Use Group Mu -C MU -C MU -C TOD MU -N Interstate Commercial Services and Retail MICROBREWERY, MICRODISTILLERY, OR P P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM Section 4. Severability, Conflicting_ Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 5. Effective Date. This ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to , this day of , 2017 and ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2017 at 7:00 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of 12017. SIGNED by the Mayor on this day of Joyce Jay, Mayor ATTEST: Janelle Shaver, City Clerk Approved as to Form .2017. Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Published: Wheat Ridge Transcript and www.ci.wheatridge.co.us 3 1 2 3. 4. 5. 6. ' City of W heat R�idge PLANNING COMMISSION Minutes of Meeting March 16, 2017 CALL THE MEETING TO ORDER The meeting was called to order by Chair OHM at 7:01 p.m. in the City Council Chambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. ROLL CALL OF MEMBERS Commission Members Present: Connnission Members Absent: Staff Members Present: PLEDGE OF ALLEGIANCE Dirk Boden Emery Dorsey Donna Kimsey Janet Leo Scott Ohm Vivian Vos Alan Bucknam Amanda Weaver Lauren Mikulak, Senior Planner Tammy Odean, Recording Secretary APPROVE ORDER OF THE AGENDA It was moved by Commissioner KIMSEY and seconded by Commissioner LEO to approve the order of the agenda. Motion carried 6-0. APPROVAL OF MINUTES — March 2, 2017 It was moved by Commissioner DORSEY and seconded by Commissioner KIMSEY to approve the minutes of March 2, 2017, as written. Motion passed 6-0. PUBLIC FORUM (This is the time for any person to speak on any subject not appearing on the agenda.) No one wished to speak at this time. Planning Commission Minutes March 16, 2017 -1— 7. PUBLIC HEARING A. Case No. ZOA-17-01: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities. Ms. Mikulak gave a short presentation regarding the proposed ordinance. She entered into the record the contents of the case file, zoning code and the draft ordinance. She stated public notice requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. The Commissioners did not have any questions for Ms. Mikulak. It was moved by Commissioner DORSEY and seconded by Commissioner KIMSEY to recommend approval of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities. Motion carried 6-0. B. Case No. ZOA-17-02: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of site design standards for site grading, retaining walls and stormwater facilities. Ms. Mikulak gave a short presentation regarding the proposed ordinance. She entered into the record the contents of the case file, zoning code, the contents of the digital presentation and the draft ordinance. She stated public notice requirements have been met, therefore the Planning Conn -fission has jurisdiction to hear this case. Comaiissioner VOS asked if detention ponds will be adjacent to impervious surfaces and if staff will get to view the developer's plans. Ms. Mikulak stated that a pond may or may not be adjacent to the impervious surface depending on the topography and design of the site. Typically, a pond is located on the the downhill side of a site, so it may or may not be visible. She also explained that staff will see the developer's plans. Commissioner VOS also asked if this ordinance will apply retroactively to the substandard designs that already exist. Ms. Mikulak explained that there will be no provision to make current facilities retroactive, but staff will be enforcing landscape maintenance to ensure that what exists is maintained. Planning Commission Minutes -2— March 2— March 16, 2017 Thankyou Don't have a presentation for this case, but I will make just a few comments. For the record, I'm ... Name/Dept I would like to enter into the record the case file, the zoning code, and the draft ordinance This code amendment addresses a small-scale alcohol production which has been a rapidly growing industry in Colorado, but is not addressed in our zoning code. This silence in the code has created a lack of clarity for staff and for business owners. This code amendment would provide several new definitions to address micro - breweries, micro -distilleries, and microwineries each classified as "micro" based on their production volumes. Those volume thresholds are consistent with industry standards, state laws, and other communities, and we've worked closely with the City Clerk's office which staff our liquor licensing authority. Along with the new definitions, we're updating the use charts to clarify that if a small-scale producer has a taproom or tasting room, they are permitted by right in the mixed use and commercial zone districts, with a need for a special use permit only in the neighborhood and restricted commercial districts. If there's no taproom, then we view the operation as a strictly manufacturing use which is only permitted in two most intensive zone districts: I -E and MU -C Interstate. Anything that exceeds the small-scale volume thresholds would simply be treated as a manufacturing use and be permitted where industrial uses are otherwise allowed. This approach is the same as what was discussed in January, when the Planning Commission expressed its support to move forward. This will go to City Council on April 10 for a public hearing. City of W heat --Midge KV\ I rP\ a. DATE: ITEM NO: DATE: March 27, 2017 REQUEST FOR CITY COUNCIL ACTION Itij cc TITLE: COUNCIL BILL NO. 05-2017 - AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES (CASE NO. -17-01) ❑ PUBLIC HEARING ® ORDINANCES FOR 1 ST READING 03/27/2017) ❑ BIDS/MOTIONS ❑ ORDINANCES FOR 2ND READING (04/10/2017) ❑ RESOLUTIONS QUASI-JUDICIAL: ❑ YES ® NO Community Dev lopment Director City Manager ISSUE: The City's zoning code is currently silent with respect to all alcohol production facilities. On a case-by-case basis, the City has approved small brewery operations by classifying them as similar to light industrial or restaurant uses, as appropriate. The goal of this code amendment is to provide clarity in the code for staff and for potential businesses in terms of what and where certain types of alcohol production is permitted in the City. PRIOR ACTION: Staff raised this issue to City Council for discussion on December 5, 2016, and was directed to proceed with a code amendment to provide clarity and to establish reasonable regulations allowing small-scale alcohol production. At the January 5, 2017 Planning Commission meeting, staff presented a proposed regulatory framework, and commissioners expressed their support. At a public hearing on March 16, 2017, Planning Commission voted to recommend approval of the proposed ordinance; meeting minutes from the public hearing will be included with the ordinance for second reading. Council Action Form -- Small-scale Alcohol Production March 27, 2017 Page 2 FINANCIAL IMPACT: It is difficult to predict the impact of this ordinance on potential sales tax generation and job creation; however, small-scale alcohol production has had a positive economic impact in the metro area and in Colorado as a whole. BACKGROUND: As the craft beer industry has expanded in Colorado and the Denver Metro area, the City's Community Development Department has experienced a continued level of interest from potential small-scale breweries and distilleries. The zoning code's silence on this land use has created unnecessary frustration, delay, and uncertainty for staff and business owners. Proposed Regulations The proposed ordinance provides a regulatory framework to allow small-scale alcohol production facilities in Wheat Ridge. Large-scale alcohol production is classified as "manufacturing," is allowed in industrial zone districts, and is not addressed by this code amendment. It is proposed the regulations for small-scale alcohol production be based on the size or production volume of an operation and whether the operation has a taproom. Taprooms provide a customer -facing element, which makes a service or retail -oriented zone district a more appropriate location. The provisions of the code amendment are summarized below. • Eating Establishment — The term "eating establishment" is currently used but not defined in the zoning code. A definition is proposed in the ordinance and will allow accessory alcohol production. These types of operations already exist in the City and a definition would provide clarity for future businesses. Microbrewery, microdistillery, and microwinery — Definitions for each of these terms are proposed in the ordinance and each is based on production volume. The definitions and volume thresholds are consistent with state liquor laws, industry standards, and regulations in other communities. • Taproom — A definition for "taproom" is proposed in the ordinance, and this is the operational feature that would differentiate where in the City small-scale alcohol production is permitted. Those without a taproom would be permitted only in the Industrial -Employment and Mixed Use -Commercial Interstate zone districts. Those with taprooms would require a special use permit in the Neighborhood Commercial and Restricted Commercial zone districts, but would be permitted in all other commercial and mixed use districts. Staff has worked closely with the Clerk's Office, which staffs the City's Liquor Licensing Authority. This code amendment would provide much needed clarity for staff and business owners and would modernize the zoning code relative to a well-established Colorado industry. Council Action Form — Small-scale Alcohol Production March 27, 2017 Page 3 RECOMMENDATIONS: Staff recommends approval of the ordinance. RECOMMENDED MOTION: "I move to approve Council Bill No. 05-2017, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities on first reading, order it published, public hearing set for Monday, April 10, 2017 at 7 p.m. in City Council Chambers, and that it take effect 15 days after final publication." Q "I move to postpone indefinitely the ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning the regulation of small-scale alcohol production facilities, for the following reason(s) " REPORT PREPARED BY: Lauren Mikulak, Senior Planner Kenneth Johnstone, Community Development Director Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 05-2017 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER COUNCIL BILL NO. 05 ORDINANCE NO. Series 2017 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING THE REGULATION OF SMALL-SCALE ALCOHOL PRODUCTION FACILITIES WHEREAS, the City of Wheat Ridge is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in exercise of that authority, the City Council of the City of Wheat Ridge has previously enacted Chapter 26 of the Wheat Ridge Code of Laws pertaining to zoning, land use, and development; and WHEREAS, the City is witnessing increasing interest from operators of small- scale alcohol producers to locate new facilities in the City of Wheat Ridge; and WHEREAS, the City Council recognizes the possible benefits of allowing this use in the City relative to economic development; and WHEREAS, the City Council finds that this ordinance will provide much needed clarity in the zoning code regarding this use; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-123 (Definitions) of the Code is amended by the addition of the following definitions in their appropriate alphabetical locations: EATING ESTABLISHMENT. AN ESTABLISHMENT WHERE FOOD AND BEVERAGES ARE PREPARED AND SOLD TO THE PUBLIC, WHICH MAY INCLUDE ACCESSORY ALCOHOL PRODUCTION. MICROBREWERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) BARRELS PER YEAR OF FERMENTED MALT OR MALT LIQUOR BEVERAGES ON SITE. MICRODISTILLERY. A FACILITY THAT PRODUCES NO MORE THAN FIFTEEN THOUSAND (15,000) GALLONS PER YEAR OF SPIRITUOUS BEVERAGES ON SITE. MICROWINERY. A FACILITY THAT PRODUCES NO MORE THAN ONE HUNDRED THOUSAND (100,000) GALLONS PER YEAR OF VINOUS BEVERAGES ON SITE. Attachment 1 TAP ROOM. A USE ASSOCIATED WITH AND ON THE SAME PREMISES AS A MICROBREWERY, A MICRODISTILLERY, OR A MICROWINERY FACILITY WHICH SELLS AND SERVES ALCOHOL BEVERAGES FOR CONSUMPTION ON THE LICENSED PREMISES, SELLS ALCOHOL BEVERAGES IN SEALED CONTAINERS FOR CONSUMPTION OFF THE PREMISES, OR BOTH. Section 2. Section 26-204 of the Code, Table of Uses for Commercial and Industrial Districts, is amended by the addition of the following rows in their appropriate alphabetical location: Uses NC RC C-1 C-2 I -E MICROBREWERY, MICRODISTILLERY, OR S S P P P MICROWINERY; WITH A TAP ROOM P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM MICROWINERY; WITHOUT A TAP ROOM Section 3. Section 26-1111.B. Permitted Uses, Commercial Services and Retail, in the mixed use zone districts, is amended by the addition of the following rows in their appropriate alphabetical location: Use Group MU -C MU -C MU -C TOD MU -N Interstate Commercial Services and Retail MICROBREWERY, MICRODISTILLERY, OR P P P P MICROWINERY; WITH A TAP ROOM MICROBREWERY, MICRODISTILLERY, OR P MICROWINERY; WITHOUT A TAP ROOM Section 4. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 5. Effective Date. This ordinance shall take effect 15 days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of to , this day of , 2017 and ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for , 2017 at 7 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. Attachment 1 READ ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of to , this day of , 2017. SIGNED by the Mayor on this day of , 2017. Joyce Jay, Mayor ATTEST: Janelle Shaver, City Clerk Approved as to Form Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Published: Wheat Ridge Transcript and www.ci.wheatridge.co.us Attachment 1 Kenneth Johnstone From: Kenneth Johnstone Sent: Tuesday, March 28, 2017 7:50 AM To: Kenneth Johnstone Subject: City Council - Gen, Kristi and George absent City Council - Gen, Kristi and George absent - Arbor Day - Dorothy Archer, 3640 Marshall, R-1 code and heights allowable - Colin, Perlmutter's office, making housing affordable conference ER Moratorium, - ordinance 1616 - Hoppe introduction - Carol Salzmann, raised consumer protection issues, proposed 12 month moratorium, status of house and senate bills, state moratorium to send department of health, 72000 patients a year, - Hoppe motion, Zach amendment to 12 months, Larry 2nd on amendment - 5-0 - Main motion - 5-0 Small scale alcohol production, Larry motion, Monica 2nd, 5-0 Design Standards, Monica motion, Hoppe 2nd, 4-1, Urban "no" Sent from my Wad Craft/micro/nano breweries in the Front Range (updated March 2017) New Belgium . Over 915,000 bbl in 2015 Fort Collins . Fourth largest craft brewer in the country Oskar Blues . 149,000 bbl in 2014 Longmont . 2nd largest in the state Great Divide . 41,900 in 2015 2201 Arapahoe St . 35,300 in 2016 Denver, CO , 6th largest in the state (in 2015) Rickoli • 2013 — 250 barrels 2014 Colorado - 1 . New Belgium — 945,367 2. Oskar Blues — 149,00 3. Odell — 99,517 4. Left Hand — 74,523 5. Craftworks — 64,464 (rock bottom, Gordon biersh) 6. Breck — 64,371 7. Great Divide — 41,923 8. Avery — 39,373 9. SKA — 30,567 10. Boulder — 29,333 11. Upslope — 19,600 12. Crazy Mountain — 15,500". Coors — 22 million barrels per year -- s f` -t -sr to 0 1 i Craft/micro/nano breweries in the Front Range (as of November 2012) New Belgium . Over 945,000 bbl per year Fort Collins • Cans and bottles on site • Fourth largest craft brewer in the country Oskar Blues • 41,000 bbl in 2010, grew to 59,000 bbl in 2011, 149,000 bbl in Longmont 2014 • Cans on site Great Divide • Opened 1994, several expansions in former dairy/yogurt plant 2201 Arapahoe St • 2010 expansion from 16,000 bbl to 32,000 bbl per year Denver, CO . Moved to new facility at 35th and Brighton Blvd in 2015, capacity for 100,000 bbl per year Dry Dock Opened 2005, retail and whole sale at Hampden location 15120 E Hampden 2011 expansion to 9,OOOsf, from 200 bbl per year to 3,200 bbl Aurora, CO . Seating capacity 180, 29 employees • Expansion 2013 to 4 acres near Tower Road • production: 2012-12,000 bbl/yr; facilities have the capacity to brew 30,000 bbl per year Denver Beer Co. • Opened 2011, expanded 2012, planning Arvada facility 1695 Platte St 1,300 bbl per year expanding to 3,500 bbl (outdated) Denver, CO Have canning facility at 4455 Jason St in Denver Renegade . Opened 2011 925 West 9th Ave . 1,200 bbl per year and growing (outdated) Denver, CO • Now canning with Mobile Canning (not a permanent on-site facility) Hogshead • Opened 2012 4460 W 29th Ave • 250 bbl per year (outdated) Denver, CO Trve • Opened 2012 227 Broadway • Nano brewer, 3 barrel system (outdated) Denver, CO Vine Street Pub • Opened 2008, started brewing in 2012 1700 Vine Street • 5,000 bbl per year Denver, Co Terms and Metrics: Microbrewery <15,000 barrels per yer Nanobrewery z <500 barrels Bbl = beer barrel = 31 gallons Keg='/2 barrel � 15-16 gallons ,- City of ��WhcatPs,d Dige MNT Memorandum TO: Planning Division FROM: Lisa DATE: September 23, 2016 SUBJECT: Alcohol Production Facility Regulations Recent years have shown a sustained rise in the number of alcohol production facilities nationally and in Colorado, particularly those producing at a smaller and more local scale than in the past. These newer facilities are commonly referred to as craft breweries, brewpubs and microbreweries. To a lesser extent, a rise in microwineries and microdistilleries is also present. r PI/ Some commonalities of these newer facilities include small scale production intended for local 7 distribution, tasting- or taprooms, and the facility may include a restaurant. The success some of these small facilities are experiencing is leading them to expand into larger scale production facilities, either at the same location, or to a new location more suited to distribution and manufacturing. The economic development impact of the craft brew industry is significant inyolorado. Per the Brewers Association in 2015, the state ha4284 craft breweries which produce 1,775,831 barrels of craft beer annually, and has a $2.7 billion impact on the state's economy per year. Chapter 26 of the Code of Laws is currently silent with respect to all alcohol production facilities. On a case by case basis, the City has approved small breweries and restaurants�with- accessory brewing facilities by classifying them as a similar light industrial or restaurant use, as appropriate. The Planning Department has experienced a continued level of interest by potential operators and it would be of benefit to the City to evaluate this use and determine if specific regulations are appropriate. Staff is undertaking an initial examination of whether alcohol production facilities are appropriate in Wheat Ridge, what the impacts could be, what the standards should be, and how to permit and regulate them. To date, no specific discussion has occurred with City Council Some neighboring jurisdictions have regulations for a more broad scope of these uses, including Denver, Fort Collins, Littleton, Englewood, and Boulder. Others only specifically reference alcohol production as an accessory use to a bar and/or restaurant, including Lakewood and Arvada. This memo identifies specific policy questions for alcohol production facilities. The purpose of the meeting is to seek feedback on specific questions, brainstorm other possible amendments, and review the project schedule and next steps. Background Research Use Categories Communities that include regulations for alcohol production facilities approach use categories in a variety of ways. It also makes sense to review how the State of Colorado categorizes different types of facilities, as well as how the Brewers Association is categorizing this industry. State of Colorado definitions "Brew pub" means a retail establishment that manufactures not more than one million eight hundred sixty thousand gallons (60,000 barrels) of malt liquor and fermented malt beverages on its licensed premises or licensed alternating proprietor licensed premises, combined, each calendar year. "Brewery" means any establishment where malt liquors or fermented malt beverages are manufactured, except brew pubs licensed under this article. "Distillery" means any establishment where spirituous liquors are manufactured. "Distillery pub" means a retail establishment: (a) Whose primary purpose is selling and serving food and alcohol beverages for on -premises consumption; and (b) That ferments and distills not more than forty-five thousand liters of spirituous liquor on its licensed premises each calendar year. "Limited winery" means any establishment manufacturing not more than one hundred thousand gallons, or the metric equivalent thereof, of vinous liquors annually within Colorado. "Vintner's restaurant" means a retail establishment that sells food for consumption on the premises and that manufactures not more than two hundred fifty thousand gallons of wine on its premises each year. "Winery" means any establishment where vinous liquors are manufactured; except that the term does not include a vintner's restaurant licensed pursuant to section 12-47-420. Brewers Association Market Segments "Microbrewery ": A brewery that produces less than 15,000 barrels of beer per year with 75% or more of its beer sold off-site. Microbreweries sell to the public by one or more of the following methods: the traditional three- tier system (brewer to wholesaler to retailer to consumer); the two-tier system (brewer acting as wholesaler to retailer to consumer); and, directly to the consumer through carry -outs and/or on-site tap -room or restaurant sales. As reference, the Brewers Association includes the following Colorado microbreweries in this classification: Brewery Rickoli, Wheat Ridge 2 r r • Denver Beer Co, Denver • Dry Dock —South Dock, Aurora • Epic, Denver, • Odyssey Beerwerks, Arvada 1� t • Tommyknocker, Idaho Springs • Twisted Pine, Boulder • Upslope, Boulder "Brewpub ": A restaurant -brewery that sells 25% of more of its beer onsite. The beer is brewed primarily for sale in the restaurant and bar. The beer is often dispensed directly from the brewery's storage tanks. Where allowed by law, brewpubs often sell beer "to go" and/or distribute to offsite accounts. Note: the association re -categorizes a company as a microbrewery if its offsite beer sales exceed 75%. As reference, the Brewers Association includes the following Colorado brewpubs in this classification (partial list): • Colorado Plus, Wheat Ridge • Coopersmiths, Fort Collins • Mountain Sun, Boulder • Oskar Blues, Lyons • Wynkoop, Denver • Yak and Yeti, Arvada "Contrdlet Brewing Company ": A business that hires another brewery to produce its beer. It can also e a brewery that hires another brewery to produce additional beer. The contract brewing ' cd pany handles marketing, sales and distribution of its beer, while generally leaving the Pre ing and packaging to its producer -brewery (which, confusingly, is also sometimes referred .to as a contract brewery). "Regional Craft Brewery ": An independent regional brewery with a majority of volume in "traditional" or "innovative" beer(s). "Regional Brewery ": A brewery with an annual production of between 15,000 and 6,000,000 barrels. As reference, the Brewers Association includes the following Colorado regional breweries in this classification (complete list): • Avery, Boulder • Boulder Beer Co, Boulder • Crazy Mountain, Edwards w'(� ' 1 • Dry Dock — North Dock, Aurora • Great Divide, Denver • Left Hand, Longmont 'j • New Belgium, Fort Collins • Odell, Fort Collins • Oskar Blues, Longmont • SKA, Durango 3 "Large Brewery ": A brewery with an annual beer production over 6,000,000 barrels. As reference, the Brewers Association includes the following Colorado large breweries in this classification (complete list): V\ • AC Golden, Golden • Anheuser-Busch Inc, Fort Collins • Breckenridge Brewery, Littleton • MillerCoors, Golden • The Sandlot Brewery at Coors Field, Denver Comparison Communities — See attachment for specific regulations There are a range of possible combinations for categorization based on an examination of other communities' regulations. Some possibilities include: , 1. Separate use categories for type of alcohol produced a. Brewery: a facilityalTi t pro—JUces fermented malt liquors b. Distillery: a facility that produces spirituous liquors c. Winery: a facility that produces vinous liquors 2. Further separate use categories based on production quantities. It should be noted that some communities use quantities that do not align with either the State of Colorado or the Brewers Association thresholds. a. Brewery, microbrewery, and brewpub b. Distillery, microdistillery, and distillery pub. v.L c. Winery, microwinery 3. Only include uses for beer and remain silent for other alcohol producing facilities a. Brewery, microbrewery, brewpub 4. Define smaller scale uses and remain silent on larger scale facilities, presumably then ? allowed in industrial zone districts as a manufacturing use. ' Discussion for New Regulations Zoning An evaluation of which zone districts each identified community allows these uses is also provided.aut a complete understanding of local context, it appears that the majority of the communit s s�o smaller scale breweries in most of their commercial and industrial areas. Most communities were silent with regards to larger facilities. It is presumed that these uses are classified as manufacturing and only permitted in industrial zone districts. This was confirmed when evaluating the zoning for New Belgium brewery in Fort Collins. Size Some communities include provisions related to the size of the brewery, or the size of the tap or tasting room. Boulder regulates zone districts permitted based on the square footage of the facility, although it should be noted that they effectively allow both small and large breweries in the same zone districts with one very minor difference. They also regulate the relationship of size of the tap room compared to the overall facility. Littleton only allows by -right facilities smaller than 6,000 s.f. in their downtown district unless approved with a CUP. Questions for Discussion 1. Should separate categories for each type of alcohol be considered? a. Recommend this consideration as we have received inquiries for a distillery use. 2. Should we amend our eating establishment definition to include alcohol production as an accessory use? a. Recommend this consideration. 3. Should provisions for quantities produced be included? a. Recommend some consideration based on production quantity. It is acknowledged that these may somewhat self -regulate based on the existing property, but Wheat Ridge does have outliers which may result in a fairly large operation in a low-key area which may not be appropriate. This is also the means by which the state and the industry classify different types of facilities, so it seems more consistent with how operators will understand their ability to fit within our v regulations. 4. Should provisions for facility size be included? G . f (_ a. Recommend not including this approach, rather take the production quantity approach. 5. Which zone districts should these be considered for? a. Recommend a more permissive approach if we have less intense/more intense categories. Next Steps Once the direction is determined based on the answers above, an evaluation of standards may be offered. When evaluating others' codes, these can include provisions for 1. Tap room and/or tasting room size and orientation requirements-�r�__._. 2. Parking requirements 3. Outside storage �Z a e! 4. Loading/unloading. a.� ATTACHMENTS • Comparison community regulations • Zoning Maps 5 ZONING Zoning for Small -Scale Alcohol Production MARCH 2014 AMERICAN PLANNING ASSOCIATION OO ISSUE NUMBER 3 PRACTICE MICROBREWERIES 1 0 Zoning for Small -Scale Alcohol Production Zoning for Small -Scale Alcohol Production: Making Space for Brewpubs, Microbreweries, Microwineries, and Microdistilleries By David M. Morley, AIcP n communities across the country, beer titans like St. Louis -based Anheuser-Busch and Chicago -based MillerCoors are facing stiff competition from a host of locally owned and operated craft breweries. ".,1,q1,,19'126-Year Brewery Count •L 2,000 a� 1,500 m 0 1,000 L 500 Z 0 1890 1900 (1887-2013) (Prohibition) 1910 1920 1930 1940 1950 1960 1970 1980 Q The number of brewers is higher today than at any point during the loth century. Meanwhile, there is parallel growth in craft distilleries and small -volume wineries. While renewed interest in small-scale alcohol produc- tion is just one facet of the buy -local move- ment, it has special relevance for planning and zoning practitioners. Historically, few communities have used zoning to draw distinctions between alcohol production facilities of different types and sizes. More recently, though, numerous lo- calities have added provisions to their zoning codes that acknowledge the variety of alcohol producers. The primary motivation for these regulatory changes is a desire to ma a space for smaller producers to operate outside of industrial districts. The two most common small-scale alco- hol production uses to receive special zoning attention are brewpubs (restaurants combined with breweries) a7d micro reweries (small -vol- ume brewers with orwithout on-site sales). But references to micro istl enes (small -volume distilleries with or without on-site sales) and microwineries (small -volume wineries without on-site vineyards) are also on the rise. The purposes of this article are to high- light why the growth in small-scale alcohol pro- duction may merit zoning changes and to sum- marize how communities have amended their codes to add definitions, use permissions, and, in some cases, additional standards to sanction brewpubs and microproducers. THE BOOM IN SMALL-SCALE ALCOHOL PRODUCTION yt Gtr- 4 According to the Brewers Association, the trade group for small brewers, as ofJune 2013 there were 1,165 brewpubs and 1,221 microbreweries in the United States. By way of comparison, in the late 19705 there were only 89 commercial brewers of any type (Brewers Association 2013). This boom in small-scale production has spread to spirits and wine too. In April 2012 Time report- ed a 400 percent surge in microdistilleries in the U.S. between 2005 and 2012 (Steinmetz 2012). And according to statistics maintained by trade 2 2,538 1990 20011 2010 Brewers Association, Boulder, Colorado publisher Wines & Vines, the number of wineries producing between 1,000 and 5,000 cases per year grew 16.5 percent between August 2oii and January 2014 alone. These trends have significant economic development implications for localities across the country. In addition to satisfying demand for locally produced beer, wine, and spirits, microproducers often distribute their product regionally or nationally, bringing new money into their host communities. Furthermore, suc- cessful brewpubs and microiroducers can help enliven commercialud mixed use districts that would otherwise clear out after conven- tional retail and office hours. It's no surprise, then, that some communities are actively trying to lure high-profile microbreweries from other states (McConnell 2012). THE TROUBLE WITH REGULATORY SILENCE Despite the exp osive growth in brewpubs and microproducers, surprisingly few communities explicitly sanction small-scale alcohol pro- ZONINGPRACTICE 3.14 AMERICAN PLANNING ASSOCIATION page 2 Zoning for Small -Scale Alcohol Production duction facilities through their zoning codes. Without clear definitions and use permissions, planning staff or public officials are forced to make ad hoc use interpretations that. can dem, or even prevent otherwise desirable develop- ment. This regulatory silence creates uncertaini for business owners looking to make location decisions and secure financing, and it may have the effect of scaring away potential applicants. Finally, explicit definitions, use permissions, and use -specific standards allow communities to proactively address the potential negative effects o rewpu s and microproducers on surrounding areas, thereby minimizing future conflicts with neighbors. DEFINING USES Clearzoning standards forsmall-scale alcohol pro- duction facilities begin with clear use definitions. Generally speaking, there are two basic schools of thought about defining uses in zoning codes. Some communities try to define every conceivable potential use, while others rely on use groups (or categories) with similar operational requirements and attendant community effects. The first method can bring clarity and avoid some legal disputes over specific uses, but it may create unnecessarily complex regula- tions. The second method is part of larger trend away from proscriptive use regulations, as many communities focus more on a prescrip- tive approach to the form of development. In practice, most conventional new zoning codes use a hybrid of these approaches, with broad use categories, such as household living or general retail, and specific use definitions for a small subset of higher -impact or more conten- tious uses under each category. 3 Mirroring this broader conversation about the best approach to classifying and defining uses, communities that have added specific definitions for small-scale alcohol production facilities to their zoning codes generally take one of two approaches. Either they define brewpubs, microbreweries, microdistilleries, and microwineries as distinct uses, or they define an umbrella term that encompasses multiple types of production facilities. Communities that define microbreweries, microdistilleries, or microwineries as distinct uses often rely on a production volume thresh- old to distinguish between the "micro" and "conventional" version of a particular use. For microbreweries,15,000 barrels per year is a common threshold, which corresponds to the American Brewers Association's defined limit for a microbrewery. Given that there are no cor- responding industry definitions for microdistill- ery and microwinery, it is perhaps unsurprising that thresholds for these uses seem to vary more from place to place. When communities define brewpubs as a distinct use, the intent is usually to distinguish between accessory- and primary -use brewing facilities. Most communities stipulate that beer production in a brewpub must be accessory to a bar or restaurant, and many cap the volume of beer produced annually (usually less than 15,000 barrels). Furthermore, some jurisdic- tions quantify this subordinate relationship by limiting the percentage of floor area or sales attributable to the brewery component of the business. Definitions for brewpubs, microbrewer- ies, microdistilleries, and microwineries often include an acknowledgment that the alcohol produced will be consumed both on- and off- site. For "micro" facilities, the presumption is typically that on-site consumption will be ZONINGPRACTICE 3.24 AMERICAN PLANNING ASSOCIATION I Page 3 Zoning for Small -Scale Alcohol Production ZONINGPRACTICE 3.14 AMERICAN PLANNING ASSOCIATION I page 4 4 subordinate to off-site consumption. For brew - Examples of Use Definitions pubs, the opposite is true. Brewpub: Communities that define an umbrella • A retail establishment that manufactures not more than 9,000 barrels of malt liquor on term for multiple "micro" facilities tend to its licensed premises each calendar year. (Aurora, Colorado) stress spatial or operational features over pro- • A restaurant -brewery that sells 25 percent or more of its beer on-site. The beer is brewed duction volume limits. In some instances this primarily for sale in the restaurant and bar. The beer is often dispensed directly from the means a square footage limit on facility size or brewery's storage tanks. Where allowed by law, brewpubs often sell beer "to go" or dis- the proportion of a facility that can be used for tribute to off-site accounts. (Brewers Association) alcohol production. In other instances, there A restaurant with facilities for the brewing of beer for on-site consumption and retail sale at are no defined size limits, and the use defini- the restaurant. A brewpub must derive at least 40 percent of its gross revenue from the tion simply describes a set of operational char - sale of food. (Goodyear, Arizona) acteristics (e.g., alcohol production and sales A restaurant featuring beer that is brewed on-site. (Memphis -Shelby County, Tennessee) for on- and off-site consumption). A restaurant that brews beer as an accessory use, either for consumption on-site or in hand -capped, sealed containers in quantities up to one-half barrel sold directly to the USE PERMISSIONS consumer. Production capacity is limited to 5,000 barrels of beverage (all beverages Defining and regulating small-scale alcohol combined) per year. The area used for brewing, bottling, and kegging shall not exceed 30 production facilities allows communities to percent of the total floor area of the commercial space. A barrel is equivalent to 31 gal- permit small breweries, distilleries, and winer- lons. (Plainfield, Illinois) ies I` locaf ons that would be inappropriate for conventl� oral large-scale facilities. Typically, / this'translrates to permitting.brew.pubs,-micro- A small facility for the brewing of beerthat produces less than 15,000 barrels per year. It breweries, microdistilleriGs�pja.d microwineries may often include a tasting room and retail space to sell the beer to patrons on the site. In one a or more commercial or mixed (Asheville, North Carolina) trims either ty rieht with mialsteriaLappaoval, Any establishment where malt liquors are manufactured and packaged on- or off -prem- or subject to a discretionary use permit. ises, manufacturing more than 9,000 but less than 6o,000 barrels of malt liquor on its Permitting a use by right sends a clear sig- --- licensed premises each calendar year. (Aurora, Colorado) nal to potential developers and business own - A brewery that produces less than 15,000 barrels of beer per year with 75 percent or ers that the use is desirable in a certain zoning more of its beer sold off-site. Microbreweries sell to the public by one or more of the district. This approach presents applicants with following methods: the traditional three-tier system (brewer to wholesaler to retailer to the fewest hoops to jump through before ob- consumer); the two-tier system (brewer acting as wholesaler to retailer to consumer); taining zoning approval, but it is important to and, directly to the consumer through carryouts or on-site taproom or restaurant sales. note that most small-scale production facilities (Brewers Association) will still be subject to state or local licensing or A brewery (for malt beverages) that has an annual nationwide production of not less permitting laws that govern the plQruction, or than ioo barrels or more than io,000 barrels. (Missoula, Montana) sale of alcoholics �gxerages. The production of beer, regardless of the percentage of alcohol by volume, in quantities Requiring a ministerial approval for a use not to exceed 5,000 barrels per month, with a barrel containing 31 U.S. liquid gallons. communicates that the community is generally (Nashville -Davidson, Tennessee) supportive of the use in a certain zoning district, but this support is condition) aeon compliance Nanobrewery: with objective standards intended to minimize • The production of beer, regardless of the percentage of alcohol by volume, in quantities negative impacts on proximate uses. This ap- not to exceed 1,25o barrels per month. (Nashville -Davidson, Tennessee) proach gives planning staff an opportunity to re- view an application before the planning director Microdistiltery: orzoning administrator issues an "over-the-coun- A combination retail, wholesale, and small-scale artisan manufacturing business that pro- ter" permit. Often, communities use ministerial duces and serves alcoholic spirits or food on the premises. (Port Townsend, Washington) approval processes to confirm that a particular A facility that produces no more than 15,000 gallons per year of spirituous beverages application conforms to use -specific standards on-site and shall include a tasting room in which guests/customers may sample the (see additional standards discussion elow). product. (Fort Collins, Colorado) Permitting a use subject to a discre- A facility that produces alcoholic beverages in quantities not to exceed 35,000 gallons tionary use permit (often referred to as a per year and includes an accessory tasting room. A tasting room allows customers to conditional, special, or special exception taste samples of products manufactured on-site and purchase related sales items. Sales use permit) indicates that the community is of alcohols manufactured outside the facility are prohibited. (Evanston, Illinois) potentially supportive of the use in a certain zoning district, provided the specific spatial (continued on page 5) and operational characteristics of the use do not pose compatibility problems. Discretion- ZONINGPRACTICE 3.14 AMERICAN PLANNING ASSOCIATION I page 4 4 ary approval processes involve one or more public hearings before the local legislative body, planning commission, or zoning board renders a final decision on an application. Because the longer approval time frame and a greater de&,ree of uncertainty can discourage some applicants, it is important for communi- ties to reserve discretionary use permissions for locations or circumstances where objective standards are likely to be insufficient to en- sure compatibility. Since a brewpub typically has more in common with a restaurant than a factory, many communities permit brewpubs either by right or with ministerial approval in a wide range of commercial and mixed use districts. Mean- while, use permissions for microbreweries, microdistilleries, and microwineries vary con- siderably from place to place. With that said, though, many cities do permit microproduction facilities ;ither By right or with ministerial ap- proval in at least one commercial or mixed use district. Furthermore, it is relatively common Yo permit microbreweries, microdistilleries, or microwineries by right in more intense commer- cial or mixed use districts and subjecttoa dis- cretionary use permit in lessintense-districts. (See the table on page 6.) ADDITIONAL STANDARDS Many contemporary zoning codes limit use permissions with use -specific development or operational standards. By codifying additional standards for specific uses, the community can permit a wider range of uses without relying on discretionary use permits to ensure compat- ibility. In some cases, use -specific standards apply only in certain zoning districts, while in other cases the standards apply community- wide. So far, relatively few communities have adopted additional development or operation- al standards for small-scale alcohol production facilities. Among those that have, the most common provisions relate to outdoor storage, the size of the facility or volume of production, loading and unloading, and proximity either to sensitive uses or to other similar producers. Outdoor Storage Perhaps the most prevalent type of additional standards for brewpubs and microproducers are screening requirements or limitations on the amoun o space sl ess owners can use to store equipment, production waste, or product. In some cases these standards take Zoning for Small -Scale Alcohol Production Use Definition -s (continued from page G) Any place or premises wherein any wines or liquors are manufactured for sale, not to exceed 5,000 gallons per year, generally referred to as a craft, boutique, or artisan distill- ery. Microdistilleries may or may not include an on-site tasting room, and may or may not operate in conjunction with an on-site restaurant or bar. For operation of an on-site tast- ing room or in conjunction with an on-site restaurant or bar additional permitting may be required. All relevant federal, state, and local regulations apply, including but not limited to TCA Title 57 and Memphis Code of Ordinances Title 7. For on-site sales by manufacturer compliance with TCA 57-3-204 applies. (Memphis -Shelby County, Tennessee) Microwinery: A combination retail, wholesale, and small-scale artisan manufacturing business that produces and serves wine and food on the premises. (Port Townsend, Washington) A facility that produces no more than ioo,000 gallons per year of vinous beverages on- site and shall include a tasting room in which guests/customers may sample the prod- uct. (Fort Collins, Colorado) A small wine producer that does not have its own vineyard, and instead sources its grape production from outside suppliers. Microwineries produce wine for sale on- or off-site. For the purposes of this chapter, a microwinery is limited to a production of no more than 2,000 barrels per year. On-site consumption is not allowed, other than sample tasting by customers shopping on-site. (Glenville, New York) Microbrewery, - A facility with no more than 3,000 square feet of floor area, for the production and pack- aging of alcoholic beverages for distribution, retail, orwholesale, on- or off -premises and which meets all alcohol beverage control laws and regulations. (Newport News, Virginia) An establishment for the manufacture, blending, fermentation, processing, and packag- ing of alcoholic beverages with a floor area of io,000 square feet or less that takes place wholly inside a building. A facility that only provides tasting or retail sale of alcoholic beverages is not a microbrewery, microdistillery, or winery use. (Dallas) A facility in which beer, wine, or other alcoholic beverages are brewed, fermented, or distilled for distribution and consumption, and which possesses the appropriate license from the State of Maryland. Tasting rooms for the consumption of on-site produced beer, wine, or distilled products are permitted on the premises. (Denton, Maryland) An establishment with a primary use as a table service restaurant where beer, liquor, wine, or other alcoholic beverage is manufactured on the premises in a limited quantity subordinate to the primary table service restaurant use. The gross floor area utilized in a microbrewery, microdistillery, or microwinery for the production of beer, liquor, wine, or other alcoholic beverage shall be no greater than the gross floor area utilized for the associated table service restaurant. A microbrewery, microdistillery, or microwinery may include some off-site distribution of its alcoholic beverages consistent with state law. A tasting room or taproom may exist in a microbrewery, microdistillery, or microwinery where patrons may sample the manufacturer's products. (Wooster, Ohio) the form of an outright prohibition on outdoor storage. To illustrate, Covington, Kentucky, flatly prohibits all outdoor equipment and storage for brewpubs and microbreweries (§§6.28.02— o3). Meanwhile, Dallas permits microbrewer- ies and microdistilleries to store spent grain outside in silos or containers, provided the storage is screened from view (C5iA-4.210(b) (y)(E)(ii)(cc)). And Novi, Michigan, prohibits all outdoor storage for brewpubs and micro - breweries, with the exception of storage in tractor trailers for a period less than 24 hours (§§i5omi.b and 1501.12.b). The two basic rationales for storage restrictions are aesthetics and public health. Outdoor storage can be an uninviting eyesore, especially in pedestrian -oriented areas. And left unattended, production waste may pro- duce foul odors and attract vermin. ZONINGPRACTICE 3.14 AMERICAN PLANNING ASSOCIATION I page 5 EXAMPLES OF DEFINED USES AND PERMISSIONS Zoning for Small -Scale Alcohol Production Permitted in One or More Mixed Use or Commercial Districts ZONINGPRACTICE 3-144 AMERICAN PLANNING ASSOCIATION I pope 6 11 Density By Right or Subject to Subject to 2010 (pop./square Ministerial Discretionary Additional Community State Population mile) Defined Uses Approval Use Permit Standards Asheville .............................................................................................................................................. NC 83,3931,856 microbrewery X X §7-16-1(c)(43) brewpub X §14-03-o8.4.0 Bismarck ND 61,272 1,986 microbrewery X .............................................................................................................................................. Bloomington IN 80,405 3,472 brewpub X §2O.05•o89 .............................................................................................................................................. Burlington .............................................................................................................................................. VT 42,417 4,116 microbrewery, X X Columbia .............................................................................................................................................. SC 129,272 978 microbrewery X §17-290 brewpub X §6.28 Covington KY 40,640 3,079 microbrewery X §6.28 microdistillery X §6.28 .............................................................................................................................................. microbrewery/ Dallas TX 1,197,816 3,5i8 microdistillery/ X §51A -4.210(b)(4) .............................................................................................................................................. winery microbrewery/ Denton MD 4,418 837 microwinery/ X .............................................................................................................................................. microdistillery microbrewery X X Fort Collins CO 143,986 2.653 microdistillery X X .............. ........................ ....................................................................... microwinery X X ......................... I....... Glenville NY 29,480 58o microbrewery X .............................................................................................................................................. microwinery X Goodyear AZ 65,275 341 brewpub X §4-2-15 .............................................................................................................................................. microbrewery X §4-2-16 brew pub X X §2.6.3.6 Memphis -Shelby TN 646,889 2,053 microbrewery X X §2.6.4.F .............................................................................................................................................. microdistillery X X §2.6.4.F Missoula .............................................................................................................................................. MT 66,788 2,428 microbrewery X Modesto .............................................................................................................................................. CA 201,165 5,457 microbrewery X X §10-3.203 microbrewery/ Newport News VA 180,719 2,630 microdistillery/ .............................................................................................................................................. microwinery X Novi MI 55,224 1,825 brewpub X X §1501.11 .............................................................................................................................................. microbrewery X X §1501.12 microbrewery X X Port Townsend WA 9,113 1,306 microdistillery X .............................................................................................................................................. microwinery X St. Petersburg FL 244,769 3,964 brewpub X X §16.50.045 .......................................... microbrewery XX ....................... §16.50.045 I................. ........................................................... microbrewery/ Wooster OH 26,119 1,601 microdistillery/ X microwinery ZONINGPRACTICE 3-144 AMERICAN PLANNING ASSOCIATION I pope 6 11 Facility Size or Volume of Production Some communities use additional standards to restrict the size of the facility, scale of produc- tion, or the relationship between the alcohol production facility and collocated food or bev- erage service. This is most common in codes where the use definition does not stipulate a specific production limit or the nature of the relationship between primary and accessory uses. However, communities can also use this type of operational standard to modify defined limits or relationships in lower -intensity zoning districts. For example, Asheville, North Carolina, limits microbreweries to 4,000 square feet of floor area in two specific office districts (§17-16- 1(c)(43)a.3). Columbia, South Carolina, limits microbrewery production to i,000 barrels per year in three lower -intensity commercial and mixed use districts (§17-290(2)). And Novi, Michigan, stipulates that no more than 5o per- cent of the gross floor space in a brewpub shall be used for brewing (§1501.11.e). Loading and Unloading A few communities have adopted additional standards stipulating the provision or location of loading spaces or prohibiting deliveries during certain hours. Both of these types of delivery restrictions can help brewpubs and mi- croproducers be better neighbors by minimiz- ing traffic congestion or limiting noise during certain times of the day. Still, it's important to t note that in some pedestrian -oriented districts j� it may be infeasible or undesirable to require dedicated loading spaces due to premiums on 1J space or urban design goals. As one example, Asheville, North Caro- lina, stipulates that all microbreweries must have an off-street or alley -accessible loading dock (§17.16-1(c)(43)a.4). Meanwhile, St. Pe- tersburg, Florida, discourages microbrewery ac- cess and loading from streets and requires any street -facing loading bays to keep their doors closed at all times, except when actively in use. The city also restricts service truck loading and unloading to the hours between 8 a.m. and 8 p.m., Monday through Saturday, and between 11 a.m, and 7 p.m. on Sundays and national holidays (§§16.50.045.4-6). Distancing Requirements A small number of communities have adopted distancing requirements that either limit the Vproximity of small-scale alcohol production V facilities to sensitive uses, such as schools or Zoning for Small -Scale Alcohol Production churches, or require a minimum separation between similar uses. For the first type of dis- tancing requirement, the rationale is to limit potential spillover effects on properties where children congregate. The rationale for the sec- ond type of requirement is to prevent an over - concentration of brewpubs or microproducers in a specific district. To illustrate, Novi, Michigan, requires microbreweries to be separated from one an- other by at least 2,500 feet (§1501.12.h). And Bismarck, North Dakota, requires property owner consent as a condition of approval for microbreweries located within 300 feet of a lot line for any school, church, library, or hospital (§14-03-08.4.u.1). CONCLUSIONS When localities choose to define and regulate small-scale alcohol production facilities as one or more distinct uses, it allows them to permit these uses in locations that would be inappro- priate for major industrial operations. By doing so, communities can set the stage to capitalize on the economic and placemaking benefits of brewpubs and microproducers. With that said, the preceding discus- sion only hints at the variety of approaches localities have taken to regulate brewpubs, microbreweries, microdistilleries, and microw- ineries. Furthermore, a number of communi- ties with thriving craft brewing and distilling scenes, such as Chicago and Portland, Ore- gon, have yet to single out small-scale alcohol production facilities for special zoning treat- ment. Others have made a conscious decision to minimize use -based restrictions in favor of prescriptive standards for the form of de- velopment. However, communities that don't thoughtfully consider regulatory alternatives for brewpubs and microproducers run the risk of being caught "flat-footed" by an applica- tion for a new facility that may be beneficial to the community but is inconsistent with current zoning. Finally, as with any significant potential zoning change, it can be helpful to talk to other communities that have taken a similar ap- proach to see what's working and what might need further attention. And, of course it's al- ways important to review both new provisions and the intent behind those provisions with residents, business owners, and other com- munity stakeholders before recommending or taking action. REFERENCES • Brewers Association. 2013. "Number of Breweries." Available at www.brewers association.org/pages/business-tools/craft- brewing-statistics/number-of-breweries. • McConnell, J. Katie. 2012. "Cities Court Craft Breweries." CitiesSpeak.org, August 9. Available at http://citiesspeak.org/2012 /o8/09/cities-court-craft-breweries. • Steinmetz, Katy. 2012. "A Booze of One's Own: The Micro Distillery Boom." Time, April 6. Available at http://business.time.com /2012/04/o6/craft-distillers. • Wines & Vines. 2014. "Wine Industry Metrics." Available at www.winesandvines .COM/tem plate. cfm?section=widc&widc Domain=wineries. VOL. 31, NO.3 Zoning Practice is a monthly publication of the American Planning Association. Subscriptions are available for $95 (U.S.) and $120 (foreign). W. Paul Farmer, FAICP, Chief Executive Officer; David Rouse, AICP, Managing Director of Research and Advisory Services. Zoning Practice (ISSN 3548-0135) is produced at APA. Jim Schwab, AICP, and David Morley, AICP, Editors; Julie Von Bergen, Assistant Editor; Lisa Barton, Design and Production. Missing and damaged print issues: Contact Customer Service, American Planning Association, 205 N. Michigan Ave., Suite 1200, Chicago, IL 6o6o1(312-431-9100 or customerservice@planning.org) within 90 days of the publication date. Include the name of the publication, year, volume and issue number or month, and your name, mailing address, and membership number If applicable. Copyright ©2o14 by the American Planning Association, 205 N. Michigan Ave., Suite 1200, Chicago, IL 60601-5927. The American Planning Association also has offices at 1030 35th St., NW, Suite 750 West, Washington, DC 20005-1503; www.pianning.org. All rights reserved. No part of this publication may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the American Planning Association. Printed on recycled paper, including 50-70% recycled fiber and 10 % postconsumer waste. 7 ZONINGPRACTICE 3.14 AMERICAN PLANNING ASSOCIATION I page 7 W V o — f`— Q M O VO QIn N L71 _ I Q O aLD Q Z o Z L Q °LnU °V) N Zoning for Small -Scale Alcohol Production 70NINo LSI R.RFWPUBS', MICROBREWERIES, 1\'AICRODISTILLERIES,,V-'-Ii�L.) UVVINEkIL.? l�Y a 12 r 0 a m L 7 Q W _ W f N TJ r. W { cu +' a- �� I ■ w > U 0 to i 9J � 7 r L U rt r CL J _r a W 0 m 1 �a F L. e U m v c r E A\ L 0 M V a� ^, L M a •L 4- a) c Q U U 4-� U E v7 D . � C O (U cu C Q •U M O O 0 0 co 0 E N cri W _ W f N TJ r. W { cu +' a- �� I ■ w > U 0 to i 9J � 7 r L U rt r CL J _r a W 0 m 1 �a F L. e U m v c r City of Golden Zoning Map 0 0.25 0.5 1 1.5 2 Miles Residential R-1 R -1A R-2 R-3 R -E Other AG CID PUD Map Current as of January 2014 Note: The OffidA Zoning Map of the G,y of Engleamd descdbed'n d,e zoos UDC is kn,t on file in the Office of d,e Cngle d Cry Cetk e _- Planned Unit Development Key Planned De veleemenf Kevwuo.xoi,.am vnb"`�ro�'wa win nl e1 rotme� WnMcu�+weem � ino mei e�w.ar. �m.peiwv„ .noeexm , -- Englewood City of Englewood Zoning Map Adopted as Part of the Unified Development Code, 2004, lncludin theFoll i Sub tAm t t g ow iig u sequen en men s. T tieexrwc �.• .l'L1ra[7'l e7Ri7 eZ ■ E �_ a..le. wxact o,s�� n:a sel.,wxeo. o.6ne W xE SerMarxolx o.re�.a v, r.x,.raerx a,fnb arxerx/rl eri.ae ♦n ; SMee ar Nrx/rx erbea.. M 14 SnksolxOrt o.JYeve Nx >; Snipe/x011 Last Amended Date: July, 2014 Print Dafe: May, 2016 Nanlcleel Confect Iniormetlen t�EmaY Eryb.mJ'co Wro11010 -1 BWYq pv'rm. an aw. imp.me� g.q�.a to mroxx ME �z ME 53 "II ME f B _ 2016 I-2 -- UNOFFICIAL�o�..� r B-3. .._ ZONING MAP R-2 �� j m o _ i PD- B -2 P��\ ��^1,or.254 tp 7'51� 1-2R-1 rl PDR R-;1� 2;R 4 I s;k r t CA I -P\ 1 t a I1_p R f e EF R 3 cn R R 3 R,. Las w IPD�-�C ! A- R-1 mC A C -A PDCC - t a:B_7R$ 5a -E OS `8 2 , B 1 Rn R" L RE!B- tg 1 As�-5 i•, ¢I E os w PDR k PD T LI E p R2 �y �Vit �-� p 1 � ` R43Os - s�.' Fd� 19 s os RSI ADQJ 1 PrE r r 4 2B2 g @ B °°° - �� R-1 _ o•c ^'" m R E R -E. ... PD -R �I. •�' PD -R ✓ RE f �s A-1 !PD -1 OS PD -C I., `+ ±- R -L `,R 2. PD -C PiT R ,. ' o -c fPD R Q�l' f� -a> R-1 -r p p.' „t.., OS.°°� Pq.� B 2 PD -C v r d 11 Pb -R \ _ PD -C PD#3 ° PD C.O� c PD -C o- PBc R �/ PD -C PD -R. - -- �---�' PD1 a PDI PD --0 6 - Z � PD -C _ : y 'PD -I, PD -1 PD -1 r PD fi +�D-I' Poe .�� Q P t --- -1 - - --------------- �� PD_x Craft/micro/nano breweries in the Front Range (as of Nov 2012) New Belgium • Over 600,000 bbl per year Fort Collins • Cans and bottles on site • Third largest craft brewer in the country Oskar Blues • 41,000 bbl in 2010, grew to 59,000 bbl in 2011 Longmont . Cans on site Great Divide • Opened 1994, several expansions in former dairy/yogurt plant 2201 Arapahoe St . 2010 expansion from 16,000 bbl to 32,000 bbl per year Denver, CO . Bottling line on site, 5 cases per minute when on • 25 employees Dry Dock • Opened 2005, retail and whole sale at Hampden location 15120 E Hampden . 2011 expansion to 9,OOOsf, from 200 bbl per year to 3,200 bbl Aurora, CO . Seating capacity 180, 29 employees • Self distributes to bars, restaurants and liquor stores, 2 staff members • Expansion 2013 to 4 acres near Tower Road • Forecast production: 2013-10,000 bbl/yr; 2014 -20,000 bbl/yr; and 2015- 35,000 bbl/yr. Denver Brew Co. . Opened 2011, expanded 2012 1695 Platte St . 1,300 bbl per year expanding to 3,500 bbl Denver, CO . No bottling, on-site draft and draft accounts only Renegade • Opened 2011 925 West 9th Ave . 1,200 bbl per year and growing Denver, CO . Now canning with Mobile Canning (not a permanent on-site facility) Hogshead • Opened 2012 4460 W 29th Ave . 250 bbl per year Denver, CO Trve • Opened 2012 227 Broadway . Nano brewer, 3 barrel system Denver, CO Wit's End • Opened 2011 2505 West 2nd Ave . Nano brewery, 1 barrel system Denver, CO Terms and Metrics: Microbrewery <15,000 barrels per yer Nanobrewery = <500 barrels Bbl = beer barrel = 31 gallons Keg='/2 barrel = 15-16 gallons Tahh- of Cmmnarknn Cnmmnnity Alcnhnl Prnduction Facilitv regulations Other Provisions Jurisdiction Dermed Terms Size or Quantity Thresholds Zone Districts Production of fermented malt beverages, malt, special malt and vinous and spirituous liquors (brew pub), as Arvada No NA NA accessory to a principal restaurant use only Brewpub None Considered a restaurant use Primarily a restaurant use, may include some off-site distribution consistent with state law Distillery None A use with a manufacturer or wholesaler license under C.R.S., may include tasting room Brewery None A use with a manufacturer or wholesaler license under C.R.S., may include tap room Boulder <15,000 sf= IS -1, IS -2, IG, IMS, IM Taproom Less than 30% of total floor area or Associated with and on the same premises as a brewery 1,000 sf, whichever greater >15,000 sf= IS -1, IS -2, IG, Tasting Room Less than 30% of total floor area or IM Associated with and on the same premises as a winery or distillery 1,000 sf, whichever greater Winery None A use with a manufacturer or wholesaler license under C.R.S., may include tasting room Brewpub No more than 300 gallons per day Considered a restaurant use No more than 30% may be sold to off -premises customers Custom = no more than 111,000 Malt beverage manufacturing gallons/year (3,850 barrels) General = 110,000 or more (3,850 barrels) See zoning map identifying Denver Custom= no more than 100,000 where General is allowed, Code ties uses back to SIC codes and C.R.S. for definitions Wine, brandy and brandy spirits gallons/year all areas require some sort manufacturing General = 100,000 or more of special review Distilled and blended liquors Custom = no more than 11,000 manufacturing gallons/year General = 11,000 or more Englewood Brewpub Not more than 2,400 barrels/year M2, MUB1, MUB2, TSA, I1 and I2, see zoning map Taproom is a conditional use in all districts Micro brewery Not to exceed 15,000 barrels/year Golden NC, CC2, C1, C2 Allows both on- or off -premises distribution Micro distillery Not to exceed 200 barrels/year Micro winery Not to exceed 1,000 cases/year "Bar"- A commercial establishment offering on-site consumption of alcoholic beverages for sale by the drink and may include on-site accessory production of alcohol. Lakewood No NA NA "Restaurant"- A commercial establishment where meals are prepared and served to the public, which may or may not include seating facilities, a bar or lounge, or accessory on-site food or alcohol production. Brewery Within CA zone district (downtown), With a tasting room = CA, B-1 and B-2 Tasting room must be in the same building as the manufacturing of the beverage, and shall be oriented Distillery Littleton cannot exceed 6,000 sf unless Without a tasting room = I- toward the public facade. approved with a CUP 1, 1-2 and B-3 Winery Microbrewery No more than 15,000 barrels/year Generally these allowed in Fort Collins all commercial districts (they organize by corridor, Restaurant can include production of femiented malt beverages, and/or malt, special malt or vinous and Microdistillery No more than 15,000 gallons/year such as Haimony Corridor spirituous liquors as an accessory use. Microwinery No more than 100,000 gallons/year Commercial District) City of Wheat dge co MUNITY DEVELOPMENT City of Wheat Ridge Municipal Building 7500 W. 29" Ave. Wheat Ridge, CO 80033-8001 P: 303.235.2846 F: 303.235.2857 Small Alcohol Production Zoning Code Amendment October 19, 2016 • Goals for potential zoning code amendment o Clearly allow small alcohol production facilities in Wheat Ridge o Detennine appropriate locations (zone districts) o Detennine appropriate production quantities o Align with other City regulations for alcohol production and consumption • Overview of liquor licensing process — Yv1 i 30Lo t 0 I � s'- 6 i • Overview of possible zoning code amendment o New and amended definitions 9 o Inclusion in Use Tables Yv'I t • Identification of areas to be aligned in licensing and zoning o Tennis and definitions �< <. w e- • Approval and licensing procedures .!;-� �l aMIJ-1- COLORADO LIQUOR CODE PART 1 GENERAL PROVISIONS 12-47-101. Short title. This article shall be known and may be cited as the "Colorado Liquor Code". 12-47-102. Legislative declaration. (1) The general assembly hereby declares that this article shall be deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state and that no provisions of this article shall ever be construed so as to authorize the establishment or maintenance of any saloon. (2) The general assembly further declares that it is lawful to manufacture and sell for beverages or medicinal purposes alcohol beverages, subject to the terms, conditions, limitations, and restrictions in this article. 12-47-103. Definitions. As used in this article and article 46 of this title, unless the context otherwise requires: (1) "Adult" means a person lawfully permitted to purchase alcohol beverages. (2) "Alcohol beverage" means fermented malt beverage or malt, vinous, or spirituous liquors; except that "alcohol beverage" shall not include confectionery containing alcohol within the limits prescribed by section 25-5-410 (1) (i) (I), C.R.S. (2.5) "Alternating proprietor licensed premises" means a distinct and definite area, as specified in an alternating use of premises application, that is owned by or in possession of a person licensed pursuant to section 12-46-104 (1) (a), 12-47-402, 12-47-403, or 12-47-415 and within which such licensee and other persons licensed pursuant to section 12-46-104 (1) (a), 12-47-402, 12-47-403, or 12-47-415, are authorized to manufacture and store vinous liquors, malt liquors, or fermented malt beverages in accordance with the provisions of this article or article 46 of this title, as applicable. (3) 'Bed and breakfast" means an overnight lodging establishment that provides at least one meal per day at no charge other than a charge for overnight lodging and does not sell alcohol beverages by the drink. (4) 'Brew pub" means a retail establishment that manufactures not more than one million eight �'j�01 hundred sixty thousand gallons of malt liquor and fermented malt beverages on its licensed premises oron 5r,�.W licensed alternating proprietor licensed premises, combined, each calendar year. �J (5) 'Brewery" means any establishment where malt liquors or fermented malt beverages are manufactured, except brew pubs licensed under this article. (6) "Club" means: (a) A corporation that: (I) Has been incorporated for not less than three years; and (II) Has a membership that has paid dues for a period of at least three years; and (III) Has a membership that for three years has been the owner, lessee, or occupant of an establishment operated solely for objects of a national, social, fraternal, patriotic, political, or athletic nature, but not for pecuniary gain, and the property as well as the advantages of which belong to the members; (b) A corporation that is a regularly chartered branch, or lodge, or chapter of a national organization that is operated solely for the objects of a patriotic or fraternal organization or society, but not for pecuniary gain. (6.5) "Colorado grown" means wine produced from one hundred percent Colorado -grown grapes, other fruits, or other agricultural products containing natural sugar, including honey, manufactured by a winery that is located in Colorado and licensed pursuant to part 3 of this article. (6.6) "Common consumption area" means an area designed as a common area in an entertainment district approved by the local licensing authority that uses physical barriers to close the area to motor 4 Page 3 of 77 COLORADO LIQUOR CODE vehicle traffic and limit pedestrian access. (6.9) "Distill" or "distillation" means the process by which alcohol that is created by fermentation is separated from the portion of the liquid that has no alcohol content. (7) "Distillery" means any establishment where spirituous liquors are manufactured. (7.3) "Distillery pub" means a retail establishment: (a) Whose primary purpose is selling and serving food and alcohol beverages for on -premises consumption; and (b) That ferments and distills not more than forty-five thousand liters of spirituous liquor on its licensed premises each calendar year. (7.5) "Entertainment district" means an area that: (a) Is located within a municipality and is designated in accordance with section 12-47-301 (11) (b) as an entertainment district; (b) Comprises no more than one hundred acres; and (c) Contains at least twenty thousand square feet of premises that, at the time the district is created, is licensed pursuant to this article as a: (1) Tavern; (II) Hotel and restaurant; (III) Brew pub; (IV) Distillery pub; (V) Retail gaming tavern; (VI) Vintner's restaurant; (VII) Beer and wine licensee; (VIII) Manufacturer that operates a sales room pursuant to section 12-47-402 (2) or (6); (IX) Beer wholesaler that operates a sales room pursuant to section 12-47-406 (1) (b) (1); (X) Limited winery; or (XI) Lodging and entertainment facility licensee. (7.6) "Expert taster" means an individual, other than a qualified student or qualified employee, who is at least twenty-one years of age and who is employed in the brewing industry or has demonstrated expertise or experience in brewing. (7.7) "Ferment" or "fermentation" means the chemical process by which sugar is converted into alcohol. (8) "Fermented malt beverage" has the same meaning as provided in section 12-46-103 (1). (9) "Good cause", for the purpose of refusing or denying a license renewal or initial license issuance, means: (a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article or any rules and regulations promulgated pursuant to this article; (b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license in prior disciplinary proceedings or arose in the context of potential disciplinary proceedings; (c) In the case of a new license, the applicant has not established the reasonable requirements of the neighborhood or the desires of its adult inhabitants as provided in section 12-47-301 (2); or (d) Evidence that the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the establishment is located, which evidence must include a continuing pattern of fights, violent activity, or disorderly conduct. For purposes of this paragraph (d), "disorderly conduct" has the meaning as provided for in section 18-9-106; C.R.S. (10) "Hard cider" means an alcohol beverage containing at least one-half of one percent and less than seven percent alcohol by volume that is made by fermentation of the natural juice of apples or pears, including but not limited to flavored hard cider and hard cider containing not more than 0.392 gram of carbon dioxide per hundred milliliters. For the purpose of simplicity of administration of this article, hard 4 Page 4 of 77 COLORADO LIQUOR CODE cider shall in all respects be treated as a vinous liquor except where expressly provided otherwise. (11) "Hotel" means any establishment with sleeping rooms for the accommodation of guests and having restaurant facilities. (12) "Inhabitant", with respect to cities or towns having less than forty thousand population, means an individual who resides in a given neighborhood or community for more than six months each year. (13) "License" means a grant to a licensee to manufacture or sell alcohol beverages as provided by this article. (14) "Licensed premises" means the premises specified in an application for a license under this article that are owned or in possession of the licensee within which the licensee is authorized to sell, dispense, or serve alcohol beverages in accordance with this article. (15) "Limited winery" means any establishment manufacturing not more than one hundred thousand gallons, or the metric equivalent thereof, of vinous liquors annually within Colorado. (16) "Liquor -licensed drugstore" means any drugstore licensed by the state board of pharmacy that has also applied for and has been granted a license by the state licensing authority to sell malt, vinous, and spirituous liquors in original sealed containers for consumption off the premises. (17) "Local licensing authority" means the governing body of a municipality or city and county, the board of county commissioners of a county, or any authority designated by municipal or county charter, municipal ordinance, or county resolution. (18) "Location" means a particular parcel of land that may be identified by an address or by other descriptive means. (18.5) "Lodging and entertainment facility" means an establishment that: (a) Is either: (I) A lodging facility, the primary business of which is to provide the public with sleeping rooms and meeting facilities; or (II) An entertainment facility, the primary business of which is to provide the public with sports or entertainment activities within its licensed premises; and (b) Incidental to its primary business, sells and serves alcohol beverages at retail for consumption on <_—. the premises and has sandwiches and light snacks available for consumption on the premises. (19) [Editor's note: This version of subsection (19) is effective until January 1, 2019.] "Malt liquors" includes beer and shall be construed to mean any beverage obtained by the alcoholic fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof, in water containing more than three and two-tenths percent of alcohol by weight or four percent alcohol by volume. (20) "Meal" means a quantity of food of such nature as is ordinarily consumed by an individual at regular intervals for the purpose of sustenance. (21) "Medicinal spirituous liquors" means any alcohol beverage, excepting beer and wine, that has been aged in wood for four years and bonded by the United States government and is at least one hundred proof. (22) (a) "Optional premises" means: (I) The premises specified in an application for a hotel and restaurant license under this article with related outdoor sports and recreational facilities for the convenience of its guests or the general public located on or adjacent to the hotel or restaurant within which the licensee is authorized to sell or serve alcohol beverages in accordance with this article and at the discretion of the state and local licensing authorities; or (II) The premises specified in an application for an optional premises license located on an applicant's outdoor sports and recreational facility. (b) For purposes of this subsection (22), "outdoor sports and recreational facility" means a facility that charges a fee for the use of such facility. (22.5) "Package", "packaged", or "packaging" means the process by which wine is bottled, canned, kegged, or otherwise packed into a sealed container. (23) "Person" means a natural person, partnership, association, company, corporation, or organization Q Page 5 of 77 COLORADO LIQUOR CODE or a manager, agent, servant, officer, or employee thereof. (23.5) "Personal consumer" means an individual who is at least twenty-one years of age, does not hold an alcohol beverage license issued in this state, and intends to use wine purchased under section 12- 47-104 for personal consumption only and not for resale or other commercial purposes. (23.7) "Powdered alcohol" means alcohol that is prepared or sold in a powder or crystalline form for either direct use or reconstitution. (24) "Premises" means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area. (24.5) "Promotional association" means an association that is incorporated within Colorado, organizes and promotes entertainment activities within a common consumption area, and is organized or authorized by two or more people who own or lease property within an entertainment district. (24.7) "Qualified employee" means an individual who: (a) Is employed by a state institution of higher education; (b) Is engaged in manufacturing and tasting fermented malt beverages or malt liquors for teaching or research purposes; and (c) Is at least twenty-one years of age. (24.8) "Qualified student" means a student who: (a) Is enrolled in a brewing class or program offered at or by a state institution of higher education; and (b) Is at least twenty-one years of age. (25) "Racetrack" means any premises where race meets or simulcast races with pari-mutuel wagering are held in accordance with the provisions of article 60 of this title. (26) "Rectify" means to blend spirituous liquor with neutral spirits or other spirituous liquors of different age. (27) "Rectifying plant" means any establishment where spirituous liquors are blended with neutral spirits or other spirituous liquors of different age. (28) "Resort complex" means a hotel with at least fifty sleeping rooms and that has related sports and recreational facilities for the convenience of its guests or the general public located contiguous or adjacent to the hotel. For purposes of a resort complex only, "contiguous or adjacent" means within the overall boundaries or scheme of development or regularly accessible from the hotel by its members and guests. (29) "Resort hotel" means a hotel, as defined in subsection (11) of this section, with well-defined occupancy seasons. (30) "Restaurant" means an establishment, which is not a hotel as defined in subsection (11) of this section, provided with special space, sanitary kitchen and dining room equipment, and persons to prepare, cook, and serve meals, where, in consideration of payment, meals, drinks, tobaccos, and candies are finished to guests and in which nothing is sold excepting food, drinks, tobaccos, candies, and items of souvenir merchandise depicting the theme of the restaurant or the geographical or historic subjects of the nearby area. Any establishment connected with any business wherein any business is conducted, excepting hotel business, limited gaming conducted pursuant to article 47.1 of this title, or the sale of food, drinks, tobaccos, candies, or such items of souvenir merchandise, is declared not to be a restaurant. Nothing in this subsection (30) shall be construed to prohibit the use in a restaurant of orchestras, singers, floor shows, coin-operated music machines, amusement devices that pay nothing of value and cannot by adjustment be made to pay anything of value, or other forms of entertainment commonly provided in restaurants. (31) "Retail liquor store" means an establishment engaged only in the sale of malt, vinous, and spirituous liquors and nonalcohol products, but only if the annual gross revenues from the sale of nonalcohol products does not exceed twenty percent of the retail liquor store's total annual gross revenues. (31.5) "Sales room" means an area in which a licensed winery, pursuant to section 12-47-402 (2), limited winery, pursuant to section 12-47-403 (2) (e), distillery, pursuant to section 12-47-402 (6), or beer wholesaler, pursuant to section 12-47-406 (1) (b), sells and serves alcohol beverages for consumption on 4 Page 6 of 77 COLORADO LIQUOR CODE the licensed premises, sells alcohol beverages in sealed containers for consumption off the licensed premises, or both. (32) "School" means a public, parochial, or nonpublic school that provides a basic academic education in compliance with school attendance laws for students in grades one to twelve. "Basic academic education" has the same meaning as set forth in section 22-33-104 (2) (b), C.R.S. (33) "Sealed containers" means any container or receptacle used for holding an alcohol beverage, which container or receptacle is corked or sealed with any stub, stopper, or cap. (34) "Sell" or "sale" means any of the following: To exchange, barter, or traffic in; to solicit or receive an order for except through a licensee licensed under this article or article 46 or 48 of this title; to keep or expose for sale; to serve with meals; to deliver for value or in any way other than gratuitously; to peddle or to possess with intent to sell; to possess or transport in contravention of this article; to traffic in for any consideration promised or obtained, directly or indirectly. (35) "Sell at wholesale" means selling to any other than the intended consumer of malt, vinous, or spirituous liquors. "Sell at wholesale" shall not be construed to prevent a brewer or wholesale beer dealer from selling malt liquors to the intended consumer thereof, or to prevent a licensed manufacturer or importer from selling malt, vinous, or spirituous liquors to a licensed wholesaler. (36) "Spirituous liquors" means any alcohol beverage obtained by distillation, mixed with water and other substances in solution, and includes among other things brandy, rum, whiskey, gin, powdered alcohol, and every liquid or solid, patented or not, containing at least one-half of one percent alcohol by volume and which is fit for use for beverage purposes. Any liquid or solid containing beer or wine in combination with any other liquor, except as provided in subsections (19) and (39) of this section, shall not be construed to be fermented malt or malt or vinous liquor but shall be construed to be spirituous liquor. (37) "State licensing authority" means the executive director of the department of revenue or the deputy director of the department of revenue if the executive director so designates. (37.5) "Tastings" means the sampling of malt, vinous, or spiritous liquors that may occur on the premises of a retail liquor store licensee or liquor -licensed drugstore licensee by adult patrons of the licensee pursuant to the provisions of section 12-47-301 (10). (38) "Tavern" means an establishment serving alcohol beverages in which the principal business is the sale of alcohol beverages at retail for consumption on the premises and where sandwiches and light I snacks are available for consumption on the premises. (38.5) "Tax -paid wine" means vinous liquors on which federal excise taxes have been paid. (39) "Vinous liquors" means wine and fortified wines that contain not less than one-half of one percent and not more than twenty-one percent alcohol by volume and shall be construed to mean an alcohol beverage obtained by the fermentation of the natural sugar contents of fruits or other agricultural products containing sugar. (39.5) "Vintner's restaurant" means a retail establishment that sells food for consumption on the premises and that manufactures not more than two hundred fifty thousand gallons of wine on its premises each year. (40) "Winery" means any establishment where vinous liquors are manufactured; except that the term does not include a vintner's restaurant licensed pursuant to section 12-47-420. 12-47-104. Wine shipments - permits. (1) (a) The holder of a winery direct shipper's permit may sell and deliver wine that is produced or bottled by the permittee to a personal consumer located in Colorado. (b) The holder of a winery direct shipper's permit may not sell or ship wine to a minor, as defined in section 2-4-401 (6), C.R.S. (2) A winery direct shipper's permit may be issued to only a person who applies for such permit to the state licensing authority and who: (a) Operates a winery located in the United States and holds all state and federal licenses, permits, or both, necessary to operate the winery, including the federal winemaker's and blender's basic permit; 4 Page 7 of 77 I City of �Whca-tfkd g - COMMUNITY DEVELOPMENT Memorandum TO: Planning Division FROM: Lisa DATE: October 19, 2016 SUBJECT: Alcohol Production Facility Regulations This memo follows up on the planning division meeting held on October 14th to discuss a code amendment to allow alcohol production facilities. Definitions: To establish uses related to alcohol production, the following definitions are proposed to be added to the code. Include a definition for Restaurant to replace Eating Establishment. The following definition is proposed: Restaurant. An establishment where food and beverages are prepared and sold to the public, which may include accessory alcohol production, excluding taverns. f (� �! Amend the definition of tavern: � o z� vV I ' " �an�llo�✓S�-� Tavern. Any establishment selling by the drink fermented malt beverages or malt, vinous or spirituous liquors, as defined by the Colorado Revised Statutes, wjcl2gn�clude c c e Include definitions for production facilities and tap rooms. Microbrewery. A facility that produces no more than fifteen thousand (15,000) barrels per year of fermented malt beverages on site. �� VI>" Microdistillery. A facility that produces no more than fifteen thousand (15,000) gallons per year of spirituous beverages. Microwinery. A facility that produces no more than one hundred thousand (100,000) gallons per year of vinous beverages on site. Tap Room. A use associated with and on the same premises as a small scale alcohol production facility at which guests may sample the manufacturer's products and consume other nonalcoholic beverages Table of Uses Include these uses in the Table of Uses as follows: Tnhle of T TcPc — Cninrnercial and Industrial Districts Uses Notes NC RC C-1 C-2 I -E Microbrewery, microdistillery, or P S S P P P microwinery; with a Tap Room Microbrewery, microdistillery, or P microwinery; without a Tap Room TnhlP of i TcPc — Mixed I Tce Dktricts Permitted Uses Use Group MU -C MU -C Interstate MU -C TOD MU -N Commercial Services and Retail Microbrewery, microdistillery, or microwinery; with a Tap Room P P P P Microbrewery, microdistillery, or microwinery; without a Tap Room P Additional Provisions The inclusion of other provisio s, such as loading/unloading, outdoor storage, and parking where discussed. It was determined t at these are likely not necessary as part of an ordinance and should be adequately provided or in the existing code. Aq - , AV �, �V Vwt r�l Uj tk(-X Y101- V101VVfW M City Of Wheatfdge COMMUNITY DEVELOPMENT Memorandum TO: Planning Division FROM: Lisa DATE: October 11, 2016 SUBJECT: Alcohol Production Facility Regulations This memo follows up on the planning division meeting held on October 4`" to discuss a code amendment to allow alcohol production facilities. Definitions: To establish uses related to alcohol production, the following definitions are proposed to be added to the code. • Include a definition for Eating Establishments, Sit Down. It does not seem appropriate to allow this for drive thrus. Potentially, the use definition could be amended to restaurant as a modernization. The following definition is proposed: Eating establishment, sit down (or restaurant). An establishment where meals are prepared and sold to the public, which may include accessory alcohol production. • Amend the definition of tavern: Tavern. Any establishment selling by the drink fermented malt beverages or malt, vinous or spirituous liquors, as defined by the Colorado Revised Statutes, which may include accessory alcohol production. • Include definitions for production facilities and tap rooms. Option 1 Small scale alcohol production facility. A facility that produces no more than fifteen thousand (15,000) barrels per year of fermented malt beverages, or no more than fifteen thousand (15,000) gallons per year of spirituous beverages, or no more than one hundred thousand (100,000) gallons per year of vinous beverages on site. Tap Room. A use associated with and on the same premises as a small scale alcohol production facility at which guests may sample the manufacturer's products and consume other nonalcoholic beverages V Option 2 Microbrewery. A facility that produces no more than fifteen thousand (15,000) barrels per year of fermented malt beverages on site. Microdistillery. A facility that produces no more than fifteen thousand (15,000) gallons per year of spirituous beverages. Microwinery. A facility that produces no more than one hundred thousand (100,000) gallons per year of vinous beverages on site. Tap Room. A use associated with and on the same premises as a small scale alcohol production facility at which guests may sample the manufacturer's products and consume other nonalcoholic beverages Table of Uses Include these uses in the Table of Uses as follows: Table of Uses — Commercial and Industrial Districts Uses Notes NC RC C-1 C-2 I -E Small Scale Alcohol Production, with a P S S P P P Tap Room P Small Scale Alcohol Production, without/ P a Tap Room Table of Uses — Mixed Use Districts Permitted Uses Use Group MU -C MU -C Interstate MU -C TOD MU -N Commercial Services and Retail Small Scale Alcohol Production, with a Tap Room P P P P Small Scale Alcohol Production, without a Tap Room P P P Agricultural Districts The question was raised regarding the appropriateness of allowing alcohol production in agricultural districts. When examining the allowed uses in these districts, it is noted that there is a variety of other enterprises allowed by right or by SUP. These include: • Dog kennels, catteries and veterinary hospitals — SUP • Greenhouses and landscape nurseries, including both wholesale and retail sales of related products — Permitted • Governmental and quasi -governmental buildings, fire stations and public utility stations — Permitted with no outside storage, SUP with outside storage 2 When comparing other Denver Metropolitan communities, only Commerce City had a fair amount of Agricultural zoning and also includes alcohol production land uses. They do not allow them in their agricultural districts. Some consider alcohol production as related to Colorado's agricultural industry and therefore potentially appropriate in agricultural zone districts. However, most facilities do not grow their own product. Alcohol production could be considered as a special use in agricultural zone districts. There are some properties in Wheat Ridge where this may be completely appropriate, and some where it wouldn't be. This may be a policy question for Council's consideration. Production Quantities When attempting to determine an appropriate production volume limitation, the fermented malt beverage amount of 15,000 barrels annually is consistent with the industry classification for microbrewery. Determining an appropriate amount for distilleries and wineries proves more challenging as their trade organizations are more fragmented and less centered around classifications related to production volumes. When comparing other communities, these production volumes for micro facilities are extremely varied. When looking at other communities who also use 15,000 barrels of fermented malt beverage as a threshold, the following are used as thresholds for distilleries: • Golden — 200 barrels (6,200 gallons) • Fort Collins —15,000 gallons And for microwineries \ • Golden —1,000 cases (2,378 gallons) KAA ' • Fort Collins — 100,000 gallons (Denver also uses this 100,000 gallon quantity as a r threshold separating smaller and larger facilities) Additional Provisions The inclusion of other provisions, such as loading/unloading, outdoor storage, and parking where discussed. It was determined that these are likely not necessary as part of an ordinance and V should be adequately provided for in the existing code. State of Colorado definitions "Brew pub" means a retail establishment that manufactures not more than one million eight hundred sixty thousand gallons (60,000 barrels) of malt liquor and fermented malt beverages on its licensed premises or licensed alternating proprietor licensed premises, combined, each calendar year. "Brewery" means any establishment where malt liquors or fermented malt beverages are manufactured, except brew pubs licensed under this article. "Distillery" means any establishment where spirituous liquors are manufactured. "Distillery pub" means a retail establishment: (a) Whose primary purpose is selling and serving food and alcohol beverages for on -premises consumption; and (b) That ferments and distills not more than forty-five thousand liters of spirituous liquor on its licensed premises each calendar year. "Limited winery" means any establishment manufacturing not more than one hundred thousand gallons, or the metric equivalent thereof, of vinous liquors annually within Colorado. "Retail liquor store" means an establishment engaged only in the sale of malt, vinous, and spirituous liquors and soft drinks and mixers, all in sealed containers for consumption off the premises; tobaccos, tobacco products, smokers' supplies, and nonfood items related to the consumption of such beverages; and liquor -filled candy and food items approved by the state licensing authority, which are prepackaged, labeled, and directly related to the consumption of such beverages and are sold solely for the purpose of cocktail garnish in containers up to sixteen ounces. Nothing in this section shall be construed to authorize the sale of food items that could constitute a snack, a meal, or portion of a meal. "Vintner's restaurant" means a retail establishment that sells food for consumption on the premises and that manufactures not more than two hundred fifty thousand gallons of wine on its premises each year. "Winery" means any establishment where vinous liquors are manufactured; except that the term does not include a vintner's restaurant licensed pursuant to section 12-47-420. Other Colorado local definitions: Denver "Brewpub" A specific type of eating and drinking establishment. A facility at which malt, vinous, or spirituous liquors are manufactured on the premises, bottled, and sold on the same premises as where the eating and drinking services are provided. No more than 30% of the manufactured product may be sold to off -premises customers. The volume of liquor manufactured on the premises of the brewpub shall not exceed 300 gallons per day each calendar year. This use falls under "Eating and Drinking Establishment ", included along with references to fast food outlets, snack bars, taverns, bars and brewpubs. 11.12.5.3 Manufacturing and Production B. Specific Manufacturing and Production Use Types and Definitions 1. Manufacturing, Fabrication & Assembly, Custom Custom Manufacturing, Fabrication and Assembly uses are defined as either l .a. or l .b. below: Establishments engaged in the on-site assembly of completely hand -fabricated parts, or engaged in the on-site hand -manufacture or hand -fabrication of custom or craft goods. Goods are predominantly manufactured and fabricated involving only the use of hand tools or domestic -scaled mechanical equipment and kilns not exceeding 20 square feet in size. Typical uses include ceramic studios, fabrics, inlays, needlework, weaving, leather work, woodwork, metal or glass work, candle making facilities, or custom jewelry makers. b. Establishments that fall into one of the following SIC groups shall be categorized as Custom Manufacturing, Fabrication and Assembly uses; this use does not include or permit the production of marijuana concentrate: i. 2082 Malt beverage manufacturing of no more than 110,000 gallons per calendar year not otherwise defined as a "General" or "Heavy" Manufacturing, Fabrication and Assembly use. ii. 2084 Wines, brandy and brandy spirits manufacturing of no more than 100,000 gallons per year, or a manufacturing operation licensed by the State of Colorado as a "Limited Winery", provided the wines/brandy spirits manufacturing or Limited Winery use are not otherwise defined as a "General" or "Heavy" Manufacturing, Fabrication and Assembly use, and provided brandy and brandy spirits manufacturing uses shall be subject to the same limits on flammable liquids applicable to SIC Code 2085 (Distilled and Blended Liquor) uses in paragraph B.1.b.iii. below. iii. 2085 Distilled and blended liquors manufacturing of no more than 11,000 gallons per year not otherwise defined as a "General" or "Heavy" Manufacturing, Fabrication and Assembly use, and provided no more than 960 gallons of Class 1 B Flammable Liquids (ethanol) with an alcohol by volume (ABV) content of greater than 19% may be produced or utilized in production within a single building at any point in time, including bulk storage for the purposes of aging or awaiting shipment. Bottled distilled spirits and blended liquors are excluded from this limitation. 2. Manufacturing, Fabrication & Assembly, General General Manufacturing, Fabrication and Assembly uses are defined as: a. A manufacturing establishment primarily engaged in the fabrication or assembly of products from prestructured materials or components; or a manufacturing establishment whose operations include storage of materials; processing, fabrication, or assembly of products; and loading and unloading of new materials and finished products, and does not produce or utilize in large quantities as an integral part of the manufacturing process, toxic, hazardous, or explosive materials. Because of the nature of its operations and products, little or no noise, odor, vibration, glare, and/ or air and water pollution is produced, and, therefore, there is minimal impact on surrounding properties. b. Establishments that fall into one of the following SIC groups shall be categorized as General Manufacturing, Fabrication and Assembly uses, provided the operations of such use are consistent with Paragraph 2.a. above: i. 2082 Malt beverage manufacturing not otherwise defined as a "Custom" or "Heavy" Manufacturing, Fabrication and Assembly use; ii. 2084 Wines, brandy and brandy spirits manufacturing not otherwise defined as a "Custom" or "Heavy" Manufacturing, Fabrication and Assembly use, and provided: (a) wine manufacturing uses shall be limited to no more than 100,000 gallons per year, or a manufacturing operation licensed by the State of Colorado as a "Limited Winery"; and (b) brandy and brandy spirits manufacturing uses shall be subject to the same limits on flammable liquids applicable to SIC Code 2085 (Distilled and Blended Liquor) uses in paragraph B.2.b.iii. below. iii. 2085 Distilled and blended liquors manufacturing not otherwise defined as a "Custom" or "Heavy" Manufacturing, Fabrication and Assembly use, and provided no more than 960 gallons of Class 1 B Flammable Liquids (ethanol) with an alcohol by volume (ABV) content of greater than 19% may be produced or utilized in production within a single building at any point in time, including bulk storage for the purposes of aging or awaiting shipment. Bottled distilled spirits and blended liquors are excluded from this limitation. Boulder "Brewpub" means an establishment that is primarily a restaurant where malt liquor is manufactured on the premises as an accessory use. A brewpub may include some off-site distribution of its malt liquor consistent with state law. This use falls under "Restaurant ", included along with references to restaurant, Brewpub and taverns, uses are broken down by size and by hours of operation to determine which districts they are permitted in. "Distillery" means a use with a manufacturer or wholesaler license issued under § 12-47-401, et seq., C.R.S., and does not include any retail type liquor license under § 12-47-309, et seq., C.R.S., on the lot or parcel, that is primarily a manufacturing facility, where spirituous liquors are manufactured, that may include a tasting room that is less than or equal to thirty percent of the total floor area of the facility or one thousand square feet, whichever is greater. "Brewery" means a use with a manufacturer or wholesaler license issued under § 12-47-401, et seq., C.R.S., and does not include any retail type liquor license under § 12-47-309, et seq., C.R.S., on the lot or parcel, that is primarily a manufacturing facility, where malt liquors are manufactured on the premises, that may include a tap room that is less than or equal to thirty percent of the total floor area of the facility or one thousand square feet, whichever is greater. "Taproom" means a use associated with and on the same premises as a brewery, at which guests may sample the manufacturer's products and consume other nonalcoholic beverages. "Tasting room" means a use associated with and on the same premises as a winery or distillery, at which guests may sample the manufacturer's products and consume other nonalcoholic beverages. "Winery" means a use with a manufacturer or wholesaler license issued under § 12-47-401, et seq., C.R.S., and does not include any retail type liquor license under § 12-47-309, et seq., C.R.S., on the lot or parcel, that is primarily a manufacturing facility, where vinous liquors are manufactured, that may include a tasting room that is less than or equal to thirty percent of the total floor area of the facility or one thousand square feet, whichever is greater. Lakewood "Bar" A commercial establishment offering on-site consumption of alcoholic beverages for sale by the drink and may include on-site accessory production of alcohol. "Restaurant" A commercial establishment where meals are prepared and served to the public, which may or may not include seating facilities, a bar or lounge, or accessory on-site food or alcohol production. Arvada Production of Fermented Malt Beverages, malt, special malt and vinous and spirituous liquors (brew pub), as accessory to a principal restaurant use only. Lafayette "Brew pub" means an establishment, licensed as a brew pub by the appropriate local, state and/or federal authorities, where malt liquors or fermented malt beverages are manufactured, packaged or distributed, and which may also include sales of such products for on- or off -premises consumption. "Brewery" means an establishment, licensed as a manufacturer by the appropriate state and/or federal authorities, where malt liquors or fermented malt beverages are manufactured, packaged or distributed, and which may also include sales of such products for on- or off -premises consumption, and which does not meet the definition of brew pub, micro brew pub or micro brewery. "Micro brew pub" means an establishment, licensed as a brew pub by the appropriate local, state and/or federal authorities, where malt liquors or fermented malt beverages are manufactured, packaged or distributed with all production and manufacturing equipment and processes enclosed within a building, and which may also include sales of such products for on- or off - premises consumption, with manufacturing not exceeding a total of seventy-seven thousand five hundred (77,500) gallons (or two thousand five hundred (2,500) barrels, where one (1) barrel equals thirty-one (3 1) gallons) of malt liquor and fermented malt beverage on its licensed premises each calendar year and any off -premises wholesale distribution not exceeding twenty-five (25) percent of its total annual production. "Micro brewery" means an establishment, licensed as a manufacturer by the appropriate state and/or federal authorities, where malt liquors or fermented malt beverages are manufactured, packaged or distributed with all production and manufacturing equipment and processes enclosed within a building, and which may also include sales of such products for on- or off - premises consumption, with manufacturing not exceeding a total seventy-seven thousand five hundred (77,500) gallons (or two thousand five hundred (2,500) barrels, where one (1) barrel equals thirty-one (3 1) gallons) of malt liquor and fermented malt beverages on its licensed premises each calendar year and any off -premises wholesale distribution not exceeding twenty-five (25) percent of the total annual production, and which does not meet the definition of a micro brew pub. Englewood "Brew Pub". A retail establishment that manufactures not more than seventy-four thousand (74,000) gallons (2,400 barrels) of malt liquor or fermented malt beverages on its licensed premises, each calendar year.