HomeMy WebLinkAbout6.f. Request by the City Council to Amend the City Code Relating to Alcoholic Beverage Production Establishments
EXECUTIVE SUMMARY
City Council Meeting Date: May 20, 2015
AGENDA ITEM: Case 15-10-TA; Request by the City Council to
Amend the City Code Relating to Alcoholic
Beverage Production Establishments.
AGENDA SECTION:
Consent
PREPARED BY: Eric Zweber, Senior Planner AGENDA NO.
6.f.
ATTACHMENTS: Ordinance Relating to Alcoholic Beverage
Production Establishments; Lakeville
Ordinance Amendment; Shakopee Ordinance
Amendment; Excerpts from the April 2 and 28
Planning Commission Minutes.
APPROVED BY:
ddj
RECOMMENDED ACTION: Motion to adopt Ordinance B-243 an Ordinance Relating to
Alcoholic Beverage Production Establishments; Amending Rosemount City Code Sections
11-1-4, 11-4-1; 11-4-11, 11-4-13, 11-4-14, 11-4-15; 11-4-15-1, 11-4-16 and 11-6-1.
SUMMARY
The City Council has requested that the City Code be amended to allow taprooms and associated
businesses. Currently, the City Code views these businesses as a “Medium Manufacturing” facility allowed
in the GI: General Industrial zone. While this zoning designation may be appropriate for large brewers,
such as Summit or Surly or even the former Schmidt or Hamm breweries, this zoning designation is no
longer appropriate for the small craft breweries which operate a significant retail business through their
sales of pints to be consumed at the brewery taproom or in growlers purchased to be consumed at home.
To accommodate this request, the Zoning Ordinance must be amended to allow the various brewery
businesses (breweries, brew-on-premise stores, brewpubs, distilleries and wineries) in the appropriate
Zoning District with the appropriate regulations and the Business Regulation Ordinance must be amended
to allow the on-sale and off-sale of their products as allowed by State Statute. The Planning Commission
reviewed and recommended amendments to the Zoning Ordinance only. The City Council will conduct a
Public Hearing for the liquor license changes within the Business Regulation Ordinance at a future Council
meeting. Currently, the City has no applications for any of these types of brewery businesses, but the City
wants to be proactive to ease the approval process for future businesses. These changes will allow the City
to market the community to aid in attracting brewery businesses.
APRIL 28 PLANNING COMMISSION
The Planning Commission reviewed the Alcoholic Beverage Production Establishments Text Amendment
request and conducted a Public Hearing on April 28. No residents spoke during the Public Hearing.
Commissioner Freeman inquired about the status of the Cannon River Winery tasting room in Downtown
Cannon Falls that is not located at the winery’s vineyards. Staff stated Rosemount’s Business Regulations
Ordinance would require that tasting room separate from the farm winery property would need to be
associated with a wine license of a restaurant.
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Commissioner Henrie asked how issue regarding odor, traffic violations and crime would be addressed.
Staff stated that odors were addressed during the April 2 Planning Commission meeting and that traffic
violations and crime is not expected to be any greater than any restaurant in Rosemount that has a liquor
or a wine license.
Commissioner Forster asked if any non-conforming uses would be created by removing hotels, restaurants
and theaters from the C-3 district and restaurants from the BP districts. Staff responded that none of
those businesses exist in the C-3 and the BP districts and therefore no non-conforming uses would be
created.
Commissioner Kenninger clarified that the Planning Commission is reviewing and recommending
amendments to the Zoning Ordinance only. Staff responded affirmatively and stated that the appropriate
liquor license changes would be reviewed by the City Council during their May 20 meeting.
The Planning Commission recommended approval of the Zoning Ordinance text amendments within any
changes to the staff recommendations. The motion passed unanimously.
APRIL 2 PLANNING COMMISSION
Staff introduced the brewing topic and draft Ordinance language on April 2. Commissioner VanderWiel
asked about odors generated from these businesses and if the additional uses listed in the Farm Wineries
should be listed as accessory uses in the overall AG: Agricultural zoning district. Staff responded that
breweries do generate odors during the actual brewing, but do not generate odors during the fermentation
or canning processes because those are closed systems. A typical micro-brewery brews three (3) to five (5)
batches a week and each batch takes about four (4) hours to brew.
Staff has purposefully listed that Farm Wineries in the AG district can also have event spaces micro-
breweries, micro-distilleries, winery associated retail and restaurants without drive-throughs. Staff believes
that this is similar to golf courses (another conditional use) that commonly would have an event spaces, a
restaurant and a pro-shop. Staff does not support listing these uses separately as accessory uses because
then they can be included with any AG use, such as kennels or horticultural businesses.
Staff has discussed the proposed Ordinance with the City Attorney and she did not recommend any
changes to the draft Ordinance. The only change since April 2 is to correct an error on the bottom of
page 4 to correctly label the conditional uses within the BP: Business Park district.
BACKGROUND
Legal Authority
Ordinance amendments are legislative actions in that the City is creating new standards to regulate the
development of certain types of structures or use. Under the law, the City has wide flexibility to create
standards that will insure the type of development it desires.
Types of Alcoholic Beverage Production Businesses
Breweries: Staff is proposing to divide breweries into three categories based on the amount of production
consistent with the State license categories. Micro-breweries are breweries that produce no more than 3,500
barrels (about 48,000 cases) of beer annually. Small breweries are breweries that produce no more than
20,000 barrels (about 275,000 cases) of beer annually. Full breweries are breweries that produce more than
20,000 barrels of beer annually.
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State Statute allows micro-breweries and small breweries to sell on-sale glasses of beer or off-sale growlers
and 750 ml bottles at a “taproom” at or adjacent to the brewery. Breweries that produce more than 20,000
barrels and less than 250,000 barrels can sell on-sale glasses of beers, but cannot sell off-sale. Breweries that
produce more than 250,000 barrels cannot sell either on-sale or off-sale at their brewery.
Micro-Breweries: The majority of the craft breweries in the Twin Cities produces less than 3,500 barrels of beer
and would be classified in draft Ordinance as a micro-brewery. These micro-breweries typically get their raw
products delivered by semi-truck (similar to restaurant deliveries) and often self-distribute their kegs or cans
of beer with a van or box-truck owned by the micro-brewery. Micro-breweries do not normally need a truck
dock for their product, but it would be useful for moving their brewery equipment into their facility.
An important part of their business is the on-sale glasses of beer and the off-sale growlers (or 750 ml bottles)
at their taproom. The taproom is the face of the brewery and appears as a bar to the general public. While
nothing in State Statute prohibits micro-breweries from having an on-site restaurant, these small businesses
often would have a Brewpub license if they also serve food. Often, the micro-breweries would either allow
food to be brought in from local restaurants or request food trucks to visit their business. The City Council
will be considering food truck regulations when they consider the amendments to the Business Regulation
Ordinances. Due to the retail function of their business and their ability to complement local restaurants,
staff proposes to allow micro-breweries as permitted uses in the DT: Downtown and C-4: General
Commercial zoning districts.
Small Breweries: There are currently very few breweries in the Twin Cities that produce between 3,500 and
20,000 barrels of beer annually. Summit Brewery (when it was located on University Avenue) and Surly
Brewery (when it was located in Brooklyn Center) were producing this quantity of beer. It is expected that
some existing micro-breweries in the Twin Cities will out-grow their current locations when they produce
more than 3,500 barrels and will need a new location.
The new location would need to allow taprooms to provide the retail on-sale glasses of beer or the off-sale
growlers while having the truck docks necessary for delivery of raw materials and distribution of beer. To fit
the larger brewery equipment, small breweries are looking for buildings that have twelve (12) to sixteen (16)
feet of clear height within the building. Distribution from these small breweries is often a mix of regional
private distributers for their flagship brews and self-distribution of their smaller labels to the local bars and
liquor stores. Due to the mix of retail and manufacturing operations at a small brewery, staff proposes to
allow small breweries as permitted uses in the BP: Business Park and LI: Light Industrial zoning districts and
conditional uses in the C-3: Highway Commercial and C-4: General Commercial zoning districts. The
conditional use permit (CUP) is intended to mitigate the manufacturing portions of the business (truck
docks and equipment) from impacting adjacent retail commercial or nearby residential uses.
Breweries: Breweries produce more than 20,000 barrels of beer annually, which are more than 40,000 half
barrel kegs or 275,000 cases of beer. While State Statute would allow a taproom for on-sale glasses of beer,
this is a very minor portion of the breweries sales. The two breweries in the Twin Cities are the Summit
Brewery located in an industrial park at I-35E and West Seventh Street in St. Paul and the new Surly Brewery
in the industrial park northwest of MN 280 and University Avenue in Minneapolis. These businesses have
numerous truck docks for the regional private distributers and outdoor equipment for the delivery and
storage of their raw products. In the case of Surly, a number of their fermenters are also located outside.
Due to the industrial nature of these manufacturing facilities, staff proposes breweries as permitted uses in
the BP: Business Park, LI: Light Industrial and GI: General Industrial zoning districts. If these breweries
wished to have restaurants or entertainment like the new Surly Brewery, staff proposes that the brewery
would need to request a planned unit development (PUD) zoning. This would allow flexibility for the
individual business needs.
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Brew-on-Premise and Wine-on-Premise Stores: A local example of this type of business is the Vine Park
Brewery on West Seventh Street in St. Paul. Customers can come to the store and use Vine Park’s home-
brewery equipment to produce beer. The customers come back about three weeks later to bottle and pick
up their beer to be consumed at home. Staff is proposing that brew and wine-on-premise stores be viewed
as any other retail store and staff is proposing to allow them as permitted uses in the DT: Downtown and
C-4: General Commercial zoning districts.
Brewpubs: A brewpub is a restaurant with a full liquor license that also produces their own beer on-site.
Twin City examples of brewpubs include the numerous Granite City restaurants, Rock Bottom Brewery in
Downtown Minneapolis, Town Hall Brewery on the West Bank, and Great Waters Brewery in Downtown
St. Paul. The State limits production to no more than 3,500 barrels, while most brewpubs produce much
less than that. Brewpubs are allowed to sell off-sale growlers for home consumption and most brewpubs do
not distribute to local bars or liquor stores.
Brewpubs function the same as any other sit down, full serve restaurants and therefore staff proposes to add
brewpubs into the existing zoning districts that allow eating and drinking establishments. Staff proposes to
allow micro-breweries as permitted uses in the DT: Downtown and C-4: General Commercial zoning
districts.
Distilleries: The State has recently begun to license distilleries based on production size as the State now
licenses breweries. Distilleries that produce less than 40,000 proof gallons annually (250,000 750 ml bottles
of 80 proof liquor) are proposed to be defined as a micro-distillery. The State Statute allows micro-
distilleries to have a cocktail room to provide on-sale glasses of the liquor that they produce, but there is no
provision to allow off-sale liquor at a micro-distillery. Additionally, no establishment can hold both a
taproom and cocktail room.
Locally, there is the Bent Brewstillery in Roseville that is both a micro-brewery and micro-distillery and
similarly Steel Toe micro-brewery in St. Louis Park shares a facility with Millers and Saints micro-distillery.
Both businesses have a taproom for the micro-brewery and therefore do not have a cocktail room. Loon
Liquor is Northfield is considering a cocktail room, but the majority of their sales is through self-distribution
of their liquor to local bars and liquor stores. Staff anticipates that the micro-distillery impacts are similar to
a micro-brewery and therefore staff proposes to allow micro-breweries as permitted uses in the DT:
Downtown, C-4: General Commercial, BP: Business Park and LI: Light Industrial zoning districts.
Full distilleries (greater than 40,000 proof gallons annually) function similar to full breweries and therefore
staff proposes breweries as permitted uses in the LI: Light Industrial and GI: General Industrial zoning
districts.
Wineries: State Statute allows farm wineries on property where the alcoholic beverages (wine, cider and/or
brandy) are produced with the majority of the ingredients produced on-site. Farm wineries are allowed to
sell their products both on-sale and off-sale at the farm. A local example of farm wineries includes the
Alexis Bailly Vineyards outside of Hastings.
Farm wineries often have other ancillary uses such as event spaces, restaurants or even micro-breweries or
micro-distilleries. Schram Vineyards Winery and Brewery outside of Waconia is both a farm winery and a
micro-brewery. Staff proposes to allow farm wineries as a conditional use in the AG: Agricultural zoning
district. Golf courses are currently allowed as conditional uses in the AG: Agricultural zoning district and it
is common that golf courses include event spaces and restaurants. Similarly, staff is proposing to allow
event spaces, restaurants, micro-breweries and micro-breweries at a farm winery, but not as separate stand-
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alone businesses. Micro-breweries and micro-distilleries would fit with a farm winery because Minnesota’s
climate would allow all the ingredients to be grown that are needed for beer or whiskey production.
Other Sections of the Zoning Ordinance to be Amended
Staff is taking this opportunity to correct and update other sections of the Zoning Ordinance related to
alcohol production outside of the uses within the zoning districts.
Definitions: Staff is adding definitions for all the alcoholic beverage producers and facilities discussed
above.
Remove General Manufacturing Definition: In 2006 and 2007, the City amended its Zoning Ordinances
regarding industrial uses that created Light Manufacturing, Medium Manufacturing and Heavy
Manufacturing definitions to make the LI: Light Industrial, GI: General Industrial and HI: Heavy Industrial
zoning districts. At that time, there was an existing definition for “Manufacturing, General” that includes
“alcoholic beverages”. General Manufacturing was removed as a use in all the industrial zoning districts, but
the definition was not removed from the Zoning Ordinance. Staff is proposing to remove the
“Manufacturing, General” definition from the Zoning Ordinance because it is no longer needed and would
confuse the other definitions of alcoholic beverage productions proposed to be added with this amendment.
Removing Uses in the C-3 and BP Districts: The C-3: Highway Commercial and the BP: Business Park
districts are intended for business that combine retail with manufacturing or repair. These districts are not
intended to be used for true retail or entertainment business. For this reason, staff has proposed to remove
restaurants, hotels and theaters from the C-3 district and only allowing restaurants in the BP district if they
are associated with a hotel.
Parking: Parking standards will need to be added to the Zoning Ordinance to address breweries, distilleries,
taprooms and cocktail rooms. Taprooms and cocktail rooms function similar to restaurants and bars,
therefore staff is proposing to add them to the same parking standard of one (1) parking stall per three (3)
seats.
Breweries, distilleries, and farm wineries are a mix of manufacturing and warehousing. The production of
beer, wine, or liquor is manufacturing, but all three productions need to age and/or ferment before the can
be packaged. For that reason, the one (1) parking stall per 300 square feet of manufacturing would require
excess parking while the one (1) parking stall per 2,000 square feet of warehousing would be grossly deficient
for parking. Staff proposes to require one (1) stall per 500 square feet of brewery, distillery or winery. This
is the same standard as Shakopee has adopted.
CONCLUSION & RECOMMENDATION
Staff recommends approval of the Ordinance allowing Alcoholic Beverage Production Establishments. This
recommendation is based on the findings made in this report and the details within the memorandum.
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City of Rosemount
Ordinance No. B-243
AN ORDINANCE RELATING TO ALCOHOLIC BEVERAGE PRODUCTION
ESTABLISHMENTS; AMENDING ROSEMOUNT CITY CODE SECTIONS 11-1-4,
11-4-1; 11-4-11, 11-4-13, 11-4-14, 11-4-15; 11-4-15-1, 11-4-16 AND 11-6-1
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS that
Ordinance B, adopted September 19, 1989, entitled “City of Rosemount Zoning Ordinance,” is
hereby amended as follows:
Section 1. The Rosemount City Code, Section 11-1-4: DEFINITIONS is amended as follows:
BREW-ON-PREMISES STORE: A facility that provides the ingredients and equipment for a
customer to use to brew malt liquor at the store as regulated by Minnesota Statutes, as may be
amended.
BREWERY: A facility that produces more than twenty thousand (20,000) barrels of malt liquor in a
calendar year as regulated by Minnesota Statutes, as may be amended.
BREWERY, MICRO: A facility that produces not more than thirty five hundred (3,500) barrels of
malt liquor in a calendar year as regulated by Minnesota Statutes, as may be amended.
BREWERY, SMALL: A facility that produces not more than twenty thousand (20,000) barrels of
malt liquor in a calendar year as regulated by Minnesota Statutes, as may be amended.
BREWPUB: A restaurant with a micro-brewery use operated on the same premises as the restaurant.
COCKTAIL ROOM: An area within a micro-distillery, or a premise adjacent to the micro-distillery
and under the same ownership as the micro-distillery, that provides the on-sale of the distilled liquor
produced by the micro-distillery.
DISTILLERY: A facility that produces distilled spirits as regulated by Minnesota Statutes, as may be
amended.
DISTILLERY, MICRO: A facility that produces not more than forty thousand (40,000) proof
gallons of distilled spirits in a calendar year as regulated by Minnesota Statutes, as may be amended.
FARM WINERY: A winery operated by the owner of a Minnesota farm with a majority of the
ingredients produced on the premises as regulated by Minnesota Statutes, as may be amended.
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MANUFACTURING, GENERAL: All manufacture, compounding, processing, packaging,
treatment or assembly of products and materials that may emit objectionable and offensive
influences beyond the lot on which the use is located. Such uses include, but are not limited to:
sawmills; refineries; commercial feedlots; acid; cement; explosives; flour, feed, and grain milling or
storage; meatpacking and slaughterhouses; coal or tar asphalt distillation; rendering of fat, grease,
lard or tallow; alcoholic beverages; poisons; exterminating agents; glue or size; lime; gypsum; plaster
of paris; tanneries; automobile parts; paper and paper products; glass; chemicals, crude oil and
petroleum products including storage; electric power generation facilities; vinegar works; junkyard;
auto reduction yard; foundry forge; casting of metal products; rock, stone, cement products; and all
uses permitted in the GI general industrial district.
TAPROOM: An area within a micro-brewery, small brewery or brewery; or a premise adjacent to
the micro-brewery, small brewery or brewery and under the same ownership as the micro-brewery,
small brewery or brewery; that provides the on-sale of the malt liquor produced by the micro-
brewery, small brewery or brewery.
WINE-ON-PREMISES STORE: A facility that provides the ingredients and equipment for a
customer to use to produce wine at the store as regulated by Minnesota Statutes, as may be
amended.
Section 2. The Rosemount City Zoning Code, Section 11-4-1: AG AGRICULTURAL DISTRICT
is amended as follows:
D. Conditional Uses: The following uses are conditional uses in the AG district, and are subject to
the conditional use permit provisions outlined in this title:
Farm wineries, with or without associated event spaces, micro-breweries, micro-distilleries,
winery-associated retail and restaurants without drive-through facilities, subject to the
following:
1. The site and building(s) shall be designed to limit the effects of this use on adjacent
properties and public rights of way. No loading docks or overhead vehicle doors
shall be on a side abutting any public rights of way or any residential use or district.
2. The principal building shall be the primary source for screening of the loading area
or any required outdoor equipment.
3. All drives, loading and parking areas for the farm winery and associated uses shall be
paved with a concrete or bituminous surface including concrete curbing.
4. Pedestrian circulation between the parking area and the farm winery and associated
uses shall be provided through sidewalks at least 5 feet in width and paved with
concrete, bituminous, pavers or similar hardscape.
5. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
Section 3. The Rosemount City Zoning Code, Section 11-4-11: DT DOWNTOWN DISTRICT is
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amended as follows:
B. Permitted Uses: The following uses are permitted uses in the DT district:
Brew-on-Premises and Wine-on-Premises Stores.
Brewpubs.
Micro-breweries, with or without associated taprooms.
Micro-distilleries, with or without associated cocktail rooms.
Section 4. The Rosemount City Zoning Code, Section 11-4-13: C-3 HIGHWAY DISTRICT is
amended as follows:
B. Permitted Uses: The following uses are permitted uses in the C-3 district:
Eating and drinking establishments without drive-through facilities.
Hotels and motels.
Theaters.
D. Conditional Uses: The following uses are conditional uses in the C-3 district, and are subject to
the conditional use permit provisions outlined in this title:
Small breweries, with or without associated taprooms, subject to:
1. The site and building(s) shall be designed to limit the effects of this use on adjacent
properties and public rights of way. No loading docks or overhead vehicle doors
shall be on a side abutting any public rights of way or any residential use or district.
2. The principal building shall be the primary source for screening of the loading area
or any required outdoor equipment.
3. Outdoor seating is subject to the performance standards outlined in this subsection
for outdoor seating and City Code Section 3-1-16.
Section 5. The Rosemount City Zoning Code, Section 11-4-14: C-4 GENERAL COMMERCIAL
DISTRICT is amended as follows:
B. Permitted Uses: The following uses are permitted uses in the C-4 district:
Brew-on-Premises and Wine-on-Premises Stores.
Brewpubs, excluding drive-through facilities.
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Micro-breweries, with or without associated taprooms.
Micro-distilleries, with or without associated cocktail rooms.
D. Conditional Uses: The following uses are conditional uses in the C-4 district, and are subject to
the conditional use permit provisions outlined in this title:
Small breweries, with or without associated taprooms, subject to:
1. The site and building(s) shall be designed to limit the effects of this use on adjacent
properties and public rights of way. No loading docks or overhead vehicle doors
shall be on a side abutting any public rights of way or any residential use or district.
2. The principal building shall be the primary source for screening of the loading area
or any required outdoor equipment.
3. Outdoor seating is subject to the performance standards outlined in this subsection
for outdoor seating and City Code Section 3-1-16.
Section 6. The Rosemount City Zoning Code, Section 11-4-15: BP BUSINESS PARK DISTRICT
is amended as follows:
B. Permitted Uses: The following uses are permitted uses in the BP district:
Breweries and small breweries, with or without associated taprooms, subject to:
1. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
Micro-distilleries, with or without associated cocktail rooms, subject to:
1. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
D. Conditional Uses: The following uses are conditional uses in the BP district, and are subject to
the conditional use permit provisions outlined in this title:
Drive-through facilities for restaurants and banks, subject to the requirements of the C-3
district in subsection 11-4-13D of this chapter.
Eating and drinking establishments, without drive-through facilities.
Hotels and motels, with or without associated restaurants located within, attached or
adjacent to the hotel or motel.
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Section 7. The Rosemount City Zoning Code, Section 11-4-15-1: LI LIGHT INDUSTRIAL
DISTRICT is amended as follows:
B. Permitted Uses: The following uses are permitted uses in the LI district:
Breweries and small breweries, with or without associated taprooms, subject to:
1. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
Distilleries
Micro-distilleries, with or without associated cocktail rooms, subject to:
1. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
Section 8. The Rosemount City Zoning Code, Section 11-4-16: GI GENERAL INDUSTRIAL
DISTRICT is amended as follows:
B. Permitted Uses: The following uses are permitted uses in the GI district:
Breweries, with or without associated taprooms, subject to:
1. Outdoor seating is subject to the performance standards outlined for outdoor
seating City Code Sections 3-1-16 and 11-4-14D.
Distilleries
Section 9. The Rosemount City Zoning Code, Section 11-6-1: OFF STREET PARKING
REQUIREMENTS is amended as follows:
H. Off Street Parking Required: The minimum number of off street parking spaces required shall be
as follows:
Business Uses:
Breweries, distilleries and farm wineries 1 per 500 GFA
Restaurants, cafes, bars, cocktail rooms and taprooms 1 per 3 seats
Section 10. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its
passage and publication according to law.
[Underlined material is new. Stricken material is deleted.]
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Adopted this 20th day of May, 2015 by the City Council of the City of Rosemount, Minnesota.
By:
William H. Droste, Mayor
ATTEST:
By:
Clarissa Hadler, City Clerk
Published in the Rosemount Town Pages the _____ of May, 2015.
July 2, 2014
ZONING ORDINANCE AMENDMENT
JULY 7, 2014 CITY COUNCIL MEETING
Item No.
Proposed Action
Staff recommends adoption of the following motion: Move to approve an ordinance
amending Title 11 of the City Code (the Zoning Ordinance) and a summary ordinance for
publication concerning brewpubs and similar uses, as presented.
Passage of this motion will allow brew on premises, brewery, small brewery, brewpub,
distillery, micro -distillery, farm winery, tap room and tasting room uses in certain agricultural,
commercial and industrial zoning districts.
Overview
The Planning Commission and Planning Department staff recommends approval of the
attached ordinance amending the Zoning Ordinance to allow brew on premises, brewery,
small brewery, brewpub, distillery, micro -distillery, farm winery, tap room and tasting room
uses in certain agricultural, commercial and industrial zoning districts. The Planning
Commission held a public hearing on the proposed Zoning Ordinance amendment at their
June 19, 2014 meeting and unanimously recommended approval. There was public
comment from one resident seeking clarification on the proposed amendment.
Primary Issues to Consider
What prompted this Zoning Ordinance amendment?
Supporting Information
Staff analysis of primary issues
Ordinance amending Title 11 of the City Code and summary ordinance for publication
June 19, 2014 draft Planning Commission meeting minutes
f\ June, 12,,2014 TPC memorandum, including a redlined version of the amendment
Daryl K*rey, Planyrirt Director
Financial Impact: $ None Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.): Zoning Ordinance
Notes:
Zoning Ordinance Amendment
July 7, 2014 City Council Meeting
Page 2
Staff Analysis of Primary Issues
What prompted this Zoning Ordinance amendment?
Community and Economic Development Department and Planning Department staff
initiated a review and discussion with the Planning Commission on the allowance of brew
on premises, brewery, small brewery, brewpub, distillery, micro -distillery, farm winery, tap
room and tasting room uses in certain agricultural, commercial and industrial zoning
districts at their March 20, 2014 work session. The review and discussion was initiated by
staff due to the increased in these types of businesses in the Twin Cities Metropolitan Area
and the response of other cities, not just Minneapolis and St. Paul, to allow these types of
uses in their city.
While Lakeville has yet to be approached by one of these businesses, the proposed
amendment is a proactive measure to get out in front of the growing interest in brewpub
type uses in the Twin Cities suburbs.
ORDINANCE NO.
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE AMENDING THE LAKEVILLE CITY CODE.
THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS:
Section 1. Section 11-2-3 of the Lakeville City Code (Definitions) is
hereby amended to add following definitions:
BREW ON PREMISES: A facility that provides the ingredients and equipment for
a customer to use to brew malt liquor at the store. Alcoholic beverages may not
be sold or otherwise provided to customers of a brew on premises store, unless
the owner of the brew on premises store holds the appropriate liquor license.
Customers using the brew on premises store must be of the minimum age
required to purchase intoxicating liquor. Malt liquor brewed by a customer in the
store must not be sold and must be used by the customer solely for personal or
family use.
BREWERY: A facility that produces beer, ale or other beverages made from malt
by fermentation and containing not less than one-half of one percent alcohol by
volume.
BREWERY, SMALL: A brewery that produces not more than twenty thousand
20,000) barrels of malt liquor in a calendar year as regulated by Minnesota
Statues, as may be amended.
BREWPUB: A small brewery with a restaurant use operated on the same
premises as the brewery.
DISTILLERY: A facility that produces ethyl alcohol, hydrated oxide of ethyl,
sprits of wine, whiskey, rum, brandy, gin, or other distilled spirits, including all
dilutions and mixtures thereof for non -industrial use.
FARM WINERY: A winery operated by the owner of a Minnesota farm producing
table, sparkling or fortified wines from grapes, grape juice, other fruit bases or
honey with a majority of the ingredients produced on the premises.
MICRODISTILLERY: A distillery producing premium, distilled spirits in total
quantity not to exceed forty thousand (40,000) proof gallons in a calendar year as
regulated by Minnesota Statues, as may be amended.
TAPROOM: An area for the on -sale consumption of malt liquor produced by the
brewer for consumption on the premises of a brewery or an abutting property in
common ownership of the brewer, which may include sales of malt liquor
produced and packaged at the brewery for off -premises consumption as allowed
by Minnesota Statutes, as may be amended.
TASTING ROOM: An area for the on -sale consumption of distilled spirits or
wine produced on the premises of or abutting a winery or distillery and in
common ownership to the producer, which may include sales of beverages
produced and packaged at the winery or distillery for off -premises consumption
as may be allowed by Minnesota Statutes as may be amended.
Section 2. Section 11-19-13 of the City Code (Off -Street Parking
Requirements — Minimum Spaces Required) is hereby amended to modify the
following existing requirement:
Restaurants, clubs, lodges,Fspaspace per 40 square feet of dining area and 1
brewpubs, taprooms, tasting rooms ce for each 80 square feet of kitchen area.
Section 3. Section 11-46-11 of the City Code (AP District Interim Uses)
is hereby amended to add the following provisions:
G. Farm wineries with tasting rooms.
Section 4. Section 11-47-9 of the City Code (RA District Interim Uses)
is hereby amended to add the following provisions:
G. Farm wineries with tasting rooms.
Section 5. Section 11-72-3 of the City Code (C-2 District Permitted
Uses) is hereby amended to add the following provisions:
S. Brew on premises.
T. Brewpub.
Section 6. Section 11-72-7 of the City Code (C-2 District Conditional
Uses) is hereby amended to add the following provisions:
V. Microdistilleries with tasting rooms.
W. Small breweries with tap rooms.
Section 7. Section 11-73-3 of the City Code (C-3 District Permitted
Uses) is hereby amended to add the following provisions:
R. Brew on premises.
S. Brewpub.
Section 8. Section 11-73-7 of the City Code (C-3 District Conditional
Uses) is hereby amended to add the following provisions:
U. Microdistilleries with tasting rooms.
V. Small breweries with tap rooms.
Section 9. Section 11-74-3 of the City Code (C -CBD District Permitted
Uses) is hereby amended to add the following provisions:
N. Brew on premises.
O. Brewpub.
Section 10. Section 11-74-7 of the City Code (C -CBD District Conditional
Uses) is hereby amended to add the following provisions:
U. Microdistilleries with tasting rooms.
V. Small breweries with tap rooms.
Section 11. Section 11-75-3 of the City Code (OP District Permitted
Uses) is hereby amended as follows:
E. Reserved.
3
Section 12. Section 11-75-3 of the City Code (OP District Permitted
Uses) is hereby amended to add the following provisions:
M. Microdistilleries with or without tasting rooms.
N. Small Breweries with or without Tap Rooms.
Section 13. Section 11-75-7 of the City Code (OP District Conditional
Uses) is hereby amended to add the following provisions:
M. Breweries and small breweries with or without taprooms.
N. Distilleries and micro distilleries with or without tasting rooms.
Section 14. Section 11-85-3 of the City Code (I -CBD District Permitted
Uses) is hereby amended to add the following provisions:
M. Microdistilleries with or without tasting rooms.
N. Small Breweries with or without tap Rooms.
Section 15. Section 11-86-3 of the City Code (1-1 District Permitted
Uses) is hereby amended to add the following provisions:
S. Breweries and small breweries.
T. Distilleries and microdistilleries.
Section 16. Section 11-86-7 of the City Code (1-1 District Conditional
Uses) is hereby amended to add the following provisions:
M. Taprooms accessory to a brewery or small brewery.
N. Tasting rooms accessory to a distillery or microdistillery.
Section 17. Section 11-87-3 of the City Code (1-2 District Permitted
Uses) is hereby amended to add the following provisions:
T. Breweries and small breweries.
U. Distilleries and microdistilleries.
2
Section 18. Section 11-87-7 of the City Code (1-2 District Conditional
Uses) is hereby amended to add the following provisions:
M. Taprooms accessory to a brewery or small brewery.
N. Tasting rooms accessory to a distillery or microdistillery.
Section 19. This ordinance shall be effective immediately upon its
passage and publication.
ADOPTED this 7th day of July, 2014, by the City Council of the City of
Lakeville, Minnesota.
ATTEST:
CITY OF LAKEVILLE
L'yj
Matt Little, Mayor
Charlene Friedges, City Clerk
5
SUMMARY ORDINANCE NO.
CITY OF LAKEVILLE
DAKOTA, COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 11 (THE ZONING ORDINANCE)
OF THE LAKEVILLE CITY CODE
This ordinance amends Title 11 of the Lakeville City Code. Amendments have been
made to the following sections of Title 11 (the Zoning Ordinance) concerning brew on premises,
brewery, small brewery, brewpub, distillery, micro -distillery, farm winery, tap room, and tasting
room uses in certain agricultural, commercial and industrial districts:
Title 11 (Zoning Ordinance)
Chapter 2-3 (Definitions)
Chapter 19-13 (Off -Street Parking Requirements)
Chapter 46-11 (AP District Interim Uses)
Chapter 47-9 (RA District Interim Uses)
Chapter 72-3 (C-2 District Permitted Uses)
Chapter 72-7 (C-2 District Conditional Uses)
Chapter 73-3 (C-3 District Permitted Uses)
Chapter 73-7 (C-3 District Conditional Uses)
Chapter 74-3 (C -CBD District Permitted Uses)
Chapter 74-7 (C -CBD District Conditional Uses)
Chapter 75-3 (O -P District Permitted Uses)
Chapter 75-7 (O -P District Conditional Uses)
Chapter 85-3 (I -CBD District Permitted Uses)
Chapter 86-3 (I-1 District Permitted Uses)
Chapter 86-7 (I-1 District Conditional Uses)
Chapter 87-3 (I-2 District Permitted Uses)
Chapter 87-7 (I-2 District Conditional Uses)
A printed copy of the entire ordinance is available for inspection by any person during
the City Clerk's regular office hours.
Approved for publication by the City Council of the City of Lakeville, Minnesota this 7`t'
day of July, 2014.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
Planning Commission Meeting Minutes, June 19, 2014 Page 5
Chair Lillehei indicated the public hearing will now move to Agenda Item S.B.
Mr. Licht stated that City staff had initiated a review of the allowance of brewpubs,
tap rooms, small breweries and similar uses within the City based on increased
interest in such businesses within the Twin Cities area and the response of other
cities to accommodate these uses within commercial and industrial zoning districts.
He indicated that the Planning Commission had an initial discussion of this issue at
their March 20, 2014 work session and directed City staff to draft amendments to the
Zoning Ordinance for further consideration at a public hearing.
Mr. Licht stated that brewpubs, breweries, micro-distille :;'`distilleries and wineries
are all regulated under Minnesota Statutes 340A as t . ;volume of beverages that
may be 1) produced by the facilities, and 2) sold on - of the premises.
Mr. Licht reviewed the definitions of these fa ' s based on xisting definitions
outlined by State Statute for consistency ommon urs g of the uses
being regulated both by the State and rough the Zoning O nce. These
definitions are included in the June 12, 2 ,_,Manning _ .
Mr. Licht reviewed the zoning districts theseN
City staff proposes to allow th ivities as
which are listed in the June 12, Wing
Mr. Licht stated that the allowance
retail service busi uld be
district in which t 're Ici d. He
the off-street D g requir nts in
include brew taproo nd ta:
uses.
s will be allowed and whether
a permitted or conditional use,
oh beverage production and
rformance standards of the
that ity staff is proposing to amend
11-19-13 of the Zoning Ordinance to
ns within the category of restaurant
fheepingi$' ed the draft Zoning Ordinance amendment includes one
cion. _ stated that commercial recreation is currently listed
permitte a an a conditional use within the OP District. The intent is
uses be al d as nditional use subject to the performance standards
Section 11-7.A of the Zoning Ordinance. The draft Zoning Ordinance
amendnm - t includes :tion of commercial recreation as a permitted use in the OP
District. `
Chair Lillehei a t d`for any comments from the audience.
Comments from the audience.
Robert Powell, 11774 -205th Street W.
Mr. Powell stated that the amendment doesn't say if this amendment is only
for commercial establishments. If he has a winery on his farm, does the
proposed amendment impact him?
Planning Commission Meeting Minutes, June 19, 2014 Page 6
Mr. Licht stated that the proposed amendment addresses commercial on -sale and
off -sale liquor activities regulated under State Statute and would not affect someone
producing wine or beer on their property for their own consumption.
Motion was made by Reuvers, seconded by Boerschel to close the public
hearing at 6:54 p.m.
Ayes: Lillehei, Reuvers, Maguire, Boerschel.
Nays: 0
Chair Lillehei asked for comments from the Planningemission. Discussion
points included: -:11- ._
Chair Lillehei asked if an existing restauraeta1 1]
beer inside their building. Mr. Licht indic9 t the
Would there be a requirement that ain portion
sales be for food? Mr. Licht state this is addre:
Under the Surly Law, tap rooms asting rooms are
requirement.
The Planning Commission concurre tF
and will be a nice ame for the re
appreciation for staffL, oactive o
businesses like these t Lake%
thanked Mr. Licht and City ff fo or
be allowed to brew
ild.
n establishment's
State Statute.
e , om the food
s a very positive amendment
of Lakeville. They expressed
is issue so as to encourage
W
W The Planning Commission
amendment.
Motion was mad uire, by'llf#wers to recommend to City
Council approva a Zo Ordin
x
amendment to allow brew on premises,
brewery, sma I ery, bre ub, disti , micro -distillery, farm winery, tap room,
and tasting rd mouses in : ain agnc al, commercial or industrial district, as
presented.
Ay e' ag Soerschel, Lillehei
0
aaF ~•!s.. 4c
Th Y# eing no furth =£
usineh
the meeting was adjourned at 6:57 p.m.
k
Respect ily submitte .a
Penny Brevig, Recording Secretary
ATTEST:
Brooks Lillehei, Chair
TPC3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231.5840
Facsimile: 763.427.0520
TPCg Plan ni ngCo. corn
MEMORANDUM
TO: Daryl Morey
FROM: Daniel Licht, AICP
DATE: 12 June 2014
RE: Lakeville — Zoning Ordinance; Brewpubs/Tap Rooms
TPC FILE: 135.01 —14.01
BACKGROUND
1temNo,'!D'b_
The Community and Economic Development Department and Planning Department
have initiated a review of the allowance of brewpubs, tap rooms, small breweries and
similar uses within the City of Lakeville based on increased interest in such businesses
within the Twin Cities Metropolitan Area and the response of other cities to
accommodate these uses within commercial and industrial zoning districts. The
Planning Commission had an initial discussion of the issue at a work session on 20
March 2014 and directed City staff to proceed with drafting amendments to the Zoning
Ordinance for further consideration at a public hearing.
Exhibits:
A. Draft Zoning Ordinance amendment
B. 20 March 2014 Planning Commission work session minutes
ANALYSIS
Uses. Brewpubs, breweries, micro -distilleries, distilleries and wineries are all regulated
under Minnesota Statues 340A as to the volume of beverages that may be 1) produced
by the facilities and 2) sold on or off-site of the premises. An on -sale, off -sale or
special purpose liquor license would need to be obtained for any of these businesses to
operate within the City, which would be coordinated through the City Clerk. Minnesota
Statutes has allowed for brewpubs to have a liquor license for sale of alcoholic
beverages produced and consumed on site as the business also sold food the same as
a restaurant. Minnesota Statues 340A were amended in 2011 to allow breweries to
have on-site tap rooms and off -sale products. Distilleries are currently not allowed to
have on or off sale liquor except for sampling in limited amounts but have been included
in the proposed amendment in anticipation of possible future amendments to Minnesota
Statutes. City staff proposes to define these facilities based on the existing definitions
outlined by State Statute for consistency and common understanding of the uses being
regulated both by the State and City through the Zoning Ordinance:
BREW ON PREMISES: A facility that provides the ingredients and equipment
for a customer to use to brew malt liquor at the store. Alcoholic beverages may
not be sold or otherwise provided to customers of a brew on premises store,
unless the owner of the brew on premises store holds the appropriate liquor
license. Customers using the brew on premises store must be of the minimum
age required to purchase intoxicating liquor. Malt liquor brewed by a customer in
the store must not be sold and must be used by the customer solely for personal
or family use.
BREWERY: A facility that produces beer, ale or other beverages made from malt
by fermentation and containing not less than one-half of one percent alcohol by
volume.
BREWERY, SMALL: A brewery that produces not more than twenty thousand
20,000) barrels of malt liquor in a calendar year as established by Minnesota
Statutes, as may be amended.
BREWPUB: A small brewery with a restaurant use operated on the same
premises as the brewery.
DISTILLERY: A facility that produces ethyl alcohol, hydrated oxide of ethyl,
sprits of wine, whiskey, rum, brandy, gin, or other distilled spirits, including all
dilutions and mixtures thereof for non -industrial use.
FARM WINERY: A winery operated by the owner of a Minnesota farm producing
table, sparkling or fortified wines from grapes, grape juice, other fruit bases or
honey with a majority of the ingredients produced on the premises.
MICRODISTILLERY: A distillery producing premium, distilled spirits in total
quantity not to exceed forty thousand (40,000) proof gallons in a calendar year as
established by Minnesota Statutes, as may be amended.
TAPROOM: An area for the on -sale consumption of malt liquor produced by the
brewer for consumption on the premises of a brewery or an abutting property in
common ownership of the brewer, which may include sales of malt liquor
produced and packaged at the brewery for off -premises consumption as allowed
by Minnesota Statutes, as may be amended.
TASTING ROOM: An area for the on -sale consumption of distilled spirits or
wine produced on the premises of or abutting a winery or distillery and in
common ownership to the producer, which may include sales of beverages
2
produced and packaged at the winery or distillery for off -premises consumption
as may be allowed by Minnesota Statutes, as may be amended.
Zoning Districts. City staff proposes to make allowance for uses combining the
production of alcoholic beverages with on -sale and off -sale activities as either a
permitted or conditional use in the following zoning districts:
Farm wineries would be allowed within the rural zoning districts of the City as interim
uses in anticipation that the property may at some point be included within the Municipal
Urban Service Area and guided for urban land uses. There is also the need to ensure
that a farm winery use will have adequate access in terms of public streets and other
City infrastructure needed to support a use with a commercial element in a rural area.
The C-2 and C-3 Districts allow a broad range of retail and service commercial
businesses. The C -CBD District provides a desirable character and destination -type
location that may be attractive to these businesses. Allowance of Brew on Premises
stores and brewpubs within these districts as permitted uses is consistent with the intent
of these zoning districts and would be compatible with other permitted uses in the same
district.
Small breweries with tap rooms and micro -distilleries with tasting rooms, with production
and sales limited by Minnesota Statutes, are proposed to be allowed as conditional
uses in the C-2, C-3 and C -CBD Districts given their more industrial nature but with an
inherent commercial attraction. The conditional use process will allow the City to review
the location of a proposed small brewery or micro -distillery to ensure compatibility with
existing and proposed surrounding land uses, adequate access and adequate
infrastructure to serve such uses. The same uses are proposed to be allowed as
permitted uses in the OP and I -CBD Districts based on the transitional nature and
higher amenities of the OP District and the limited scope of the I -CBD District within
Downtown Lakeville that would be anticipated to be desirable for such a business
location.
Finally, small breweries with tap rooms and micro -distilleries with tasting rooms would
be conditional uses in the 1-1 and 1-2 District again to ensure compatibility of the use at
a proposed location but from the perspective of introducing a retail/service business
within an industrial area. Breweries and distilleries with production not limited by
Minnesota Statutes would be allowed as a conditional use with the OP District based on
the other lower intensity uses allowed in this zoning district and the need to consider
compatibility and infrastructure capacity for a proposed location. Breweries and
3
AP R -A C-2 C-3 C -CBD OP I -CBD 1-1 1-2
Farm winery with tasting room I I
Brew on Premises P P P
Brewpub P P P
Small Breweries w/ tap room C C C P P C C
Micro Distilleries w/ tasting room C C C P P C C
Breweries C P P
Distilleries C P P
Farm wineries would be allowed within the rural zoning districts of the City as interim
uses in anticipation that the property may at some point be included within the Municipal
Urban Service Area and guided for urban land uses. There is also the need to ensure
that a farm winery use will have adequate access in terms of public streets and other
City infrastructure needed to support a use with a commercial element in a rural area.
The C-2 and C-3 Districts allow a broad range of retail and service commercial
businesses. The C -CBD District provides a desirable character and destination -type
location that may be attractive to these businesses. Allowance of Brew on Premises
stores and brewpubs within these districts as permitted uses is consistent with the intent
of these zoning districts and would be compatible with other permitted uses in the same
district.
Small breweries with tap rooms and micro -distilleries with tasting rooms, with production
and sales limited by Minnesota Statutes, are proposed to be allowed as conditional
uses in the C-2, C-3 and C -CBD Districts given their more industrial nature but with an
inherent commercial attraction. The conditional use process will allow the City to review
the location of a proposed small brewery or micro -distillery to ensure compatibility with
existing and proposed surrounding land uses, adequate access and adequate
infrastructure to serve such uses. The same uses are proposed to be allowed as
permitted uses in the OP and I -CBD Districts based on the transitional nature and
higher amenities of the OP District and the limited scope of the I -CBD District within
Downtown Lakeville that would be anticipated to be desirable for such a business
location.
Finally, small breweries with tap rooms and micro -distilleries with tasting rooms would
be conditional uses in the 1-1 and 1-2 District again to ensure compatibility of the use at
a proposed location but from the perspective of introducing a retail/service business
within an industrial area. Breweries and distilleries with production not limited by
Minnesota Statutes would be allowed as a conditional use with the OP District based on
the other lower intensity uses allowed in this zoning district and the need to consider
compatibility and infrastructure capacity for a proposed location. Breweries and
3
Distilleries would be allowed within the 1-1 and 1-2 Districts as permitted uses given that
they are essentially production and distribution facilities consistent with other industrial
uses allowed as permitted uses in these districts and taprooms or tasting rooms would
be allowed as conditional uses.
Performance Standards. Allowance of the various alcoholic beverage production and
retail service businesses would be subject to the performance standards of the district in
which they are located to include, but not limited to, lot requirements and setbacks,
screening and landscaping, signs, exterior building materials and the like. City staff is
proposing to amend the off-street parking requirements in Section 11-19-13 of the
Zoning Ordinance to include brewpubs, taprooms and tasting rooms within the category
of restaurant uses. The off-street parking requirement for the production element of the
business would be considered under the standard applicable for manufacturing or
warehouse uses already established in Section 11-19-13 of the Zoning Ordinance.
OP District Commercial Recreation. The draft Zoning Ordinance amendment
includes one housekeeping provision. City staff noted that commercial recreation was
listed both as a permitted use and as a conditional use within the OP District. The
intent is that such uses be allowed as a conditional use subject to the performance
standards listed in Section 11-75-7.A of the Zoning Ordinance. The draft Zoning
Ordinance amendment includes deletion of commercial recreation as a permitted use in
the OP District.
CONCLUSION
A public hearing is has been noticed for 19 June 20114 to consider an ordinance
amending the Zoning Ordinance to allow for brewpubs, microbreweries with tap rooms,
farm wineries and micro distilleries with tasting rooms and breweries and distilleries as
allowed uses within various zoning districts. City staff recommends approval of the
proposed ordinance amendment in the form attached hereto.
C. Steven Mielke, City Administrator
David Olson, Community and Economic Development Director
Roger Knutson, City Attorney
4
ORDINANCE NO.
CITY OF LAKEVILLE
DAKOTA COUNTY, MINNESOTA
AN ORDINANCE AMENDING THE LAKEVILLE CITY CODE.
THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA ORDAINS:
Section 1. Section 11-2-3 of the Lakeville City Code (Definitions) is
hereby amended to add following definitions:
BREW ON PREMISES: A facility that provides the ingredients and equipment for
a customer to use to brew malt liquor at the store. Alcoholic beverages may not
be sold or otherwise provided to customers of a brew on premises store. unless
the owner of the brew on premises store holds_ the appropriate liquor license.
Customers., using the brew on premises store must be of the minimum ape
required to purchase intoxicating liquor. Malt liquor brewed by a customer in the
store must not be sold and must be used by the customer solely for personal or
family use.
BREWERY: A facility that produces beer, ale or other beverages made from malt
by fermentation and containing not less than one-half of one percent alcohol by
volume.
BREWERY. SMALL: A brewery that produces not more than twenty thousand
20.000) barrels of malt liquor in a calendar year as regulated by Minnesota
Statues, as may be amended.
BREWPUB: A small brewery with a restaurant use operated on the same
premises as the brewery.
DISTILLERY: A facility that produces ethyl alcohol, hydrated oxide of ethyl.
sprits of wine, whiskey, rum, brandy, gin. or other distilled spirits, including all
dilutions and mixtures thereof for non -industrial use.
FARM WINERY: A winery operated by the owner of a Minnesota farm producing
table, sparkling or fortified wines from grapes, grape juice, other fruit bases or
honey with a majority of the ingredients produced on the premises.
EXHIBIT A
MICRODISTILLERY: A distillery producing premium, distilled spirits in total
quantity not to exceed forty thousand (40.000) proof gallons in a calendar year as
regulated by Minnesota Statues, as may be amended.
TAPROOM: An area for the on -sale consumption of malt liquor produced by the
brewer for consumption on the premises of a brewery or an abutting property in
common ownership of the brewer, which may include sales of malt liquor
produced and packaged at the brewery for off -premises consumption as allowed
by Minnesota Statutes, as may be amended.
TASTING ROOM: An area for the on -sale consumption of distilled spirits or
wine produced on the premises of or abutting a winery or distillery and in
common ownership to the producer, which may include sales of beverages
produced and packaged at the winery or distillery for off -premises consumption
as may be allowed by Minnesota Statutes as may be amended.
Section 2. Section 11-19-13 of the City Code (Off -Street Parking
Requirements — Minimum Spaces Required) is hereby amended to modify the
following existing requirement:
Restaurants, clubs, lodges, 1 space per 40 square feet of dining area and 1
brewpubs, taprooms, tasting rooms space for each 80 square feet of kitchen area.
Section 3. Section 11-46-11 of the City Code (AP District Interim Uses)
is hereby amended to add the following provisions:
G. Farm wineries with tasting rooms.
Section 4. Section 11-47-9 of the City Code (RA District Interim Uses)
is hereby amended to add the following provisions:
G. Farm wineries with tasting rooms.
Section 5. Section 11-72-3 of the City Code (C-2 District Permitted
Uses) is hereby amended to add the following provisions:
S. Brew on premises.
T. Bmmub.
Section 6. Section 11-72-7 of the City Code (C-2 District Conditional
Uses) is hereby amended to add the following provisions:
V. Microdistilleries with tasting rooms.
W. Small breweries with tap rooms.
Section 7. Section 11-73-3 of the City Code (C-3 District Permitted
Uses) is hereby amended to add the following provisions:
R. Brew on premises.
S. Brewpub,
Section 8. Section 11-73-7 of the City Code (C-3 District Conditional
Uses) is hereby amended to add the following provisions:
U. Microdistilleries with tasting rooms.
V. Small breweries with tap rooms.
Section 9. Section 11-74-3 of the City Code (C -CBD District Permitted
Uses) is hereby amended to add the following provisions:
N. Brew on premises.
O. Bmmub.
Section 10. Section 11-74-7 of the City Code (C -CBD District Conditional
Uses) is hereby amended to add the following provisions:
U. Microdistilleries with tasting rooms.
V. Small breweries with tap rooms.
Section 11. Section 11-75-3 of the City Code (OP District Permitted
Uses) is hereby amended as follows:
E. indooF Gemmerreal reGFeatmen. Reserved
Section 12. Section 11-75-3 of the City Code (OP District Permitted
Uses) is hereby amended to add the following provisions:
M. Microdistilleries with or without tasting rooms.
N. Small Breweries with or without Tan Rooms.
Section 13. Section 11-75-7 of the City Code (OP District Conditional
Uses) is hereby amended to add the following provisions:
M. Breweries and small breweries with or without taprooms.
N. Distilleries and micro distilleries with or without tasting rooms.
Section 14. Section 11-85-3 of the City Code (I -CBD District Permitted
Uses) is hereby amended to add the following provisions:
M. Microdistilleries with or without tastina rooms.
N. Small Breweries with or without tap Rooms.
Section 15. Section 11-86-3 of the City Code (1-1 District Permitted
Uses) is hereby amended to add the following provisions:
S. Breweries and small breweries.
T. Distilleries and microdistilleries.
Section 16. Section 11-86-7 of the City Code (1-1 District Conditional
Uses) is hereby amended to add the following provisions:
M. Taprooms accessory to a brewery or small brewery.
N. Tastina rooms accessory to a distillery or microdistillery.
Section 17. Section 11-87-3 of the City Code (1-2 District Permitted
Uses) is hereby amended to add the following provisions:
T. Breweries and small breweries.
U. Distilleries and microdistilleries.
4
Section 18. Section 11-87-7 of the City Code (1-2 District Conditional
Uses) is hereby amended to add the following provisions:
M. Taprooms accessory to a brewery or small brewery.
N. Tastina rooms accessory to a distillery or microdistillery.
Section 19. This ordinance shall be effective immediately upon its
passage and publication.
ADOPTED this day of , 2014, by the City Council of the
City of Lakeville, Minnesota.
ATTEST:
CITY OF LAKEVILLE
L'Yj
Matt Little, Mayor
Charlene Friedges, City Clerk
5
Planning Commim m Wol* Sms Minutes - Mari 20, 2014 Page 2
Frank psey indicated that City staff has received numerous requests over the past
few years Ilow the keeping of chickens in residential zoning districts. He stated that
the City Coun .scussed allowing chickens in residential districts at their February 20
work session and rred the item to the Planning Commission for discussion. The
City Council's intent is t City staff will draft an amendment to the Zoning Ordinance to
allow chickens in residents ning districts for consideration by the Planning
Commission and City Council. stated that chickens are defined in the Zoning
Ordinance as a farm animal and a lowed on farm properties in agricultural zoning
districts. He described the research h s conducted of other area cities that are
similar to Lakeville (the research findings a 'sted in Mr. Dempsey's March 14"' memo
to the Planning Commission).
Six of the seven Planning Commission members are o sed to allowing chickens in
residential districts because it could create land use confliThey stated that the
keeping of chickens is more appropriate in a rural setting than i in an urban area.
They indicated that Lakeville is unique and they don't think we sho Ilow chickens in
residential districts just because some of other cities are allowing them.
Commissioner Grenz stated if chickens are allowed in residential zoning disti
performance standards should include a minimum setback from an adjoining
well as coop size and setbacks.
Brewpubs
Daryl Morey stated that there has been increased interest in the establishment of
brewpubs, taprooms and micro -breweries in the Twin Cities area since state legislation
was passed in 2011 allowing these types of uses. The legislation allows breweries to
sell pints of beer for consumption on the premises instead of the beer wholly being
shipped out for consumption off the premises. He stated that these uses combine the
manufacturing of beer, essentially an industrial use, with the on-site sale of beer, with or
without food, which is more of a retail use. Since brewpubs and taprooms are not
specifically currently identified in the Zoning Ordinance, Planning Department and
Community and Economic Development Department staff are recommending the City
consider an ordinance amendment to address these uses before a request is received
from a potential business to locate in Lakeville. Planning Commission comments:
Concern was expressed about the potential for odors from the beer
manufacturing process to impact adjacent residential uses.
Concern was expressed about potential accessory uses, like live bands, and
their compatibility with adjacent residential uses.
The use seems more appropriate when food sales are included (like Granite City
in Eagan). Suggested using kitchen size or number of seats as a food service
requirement instead of gross sales receipts when allowed in a commercial zoning
district.
EXHIBIT B
Planning Commission War* Session Minutes - MWO 20,1014 Page 3
The Planning Commission directed staff to prepare an amendment to the Zoning
Ordinance to allow brewpubs, taprooms, micro -breweries and similar uses in certain
commercial zoning districts subject to specific performance standards.
The work session adjourned at 7:40 p.m.
Respectfully submitted,
i
Brooks Lillehei, Chair
ORDINANCE NO. 877
AN ORDINANCE OF THE CITY OF SHAKOPEE APPROVING AN AMENDMENT TO
CITY CODE SECTIONS 11.02 (DEFINITIONS), 11.35 (NEIGHBORHOOD
COMMERCIAL), 11.36 (HIGHWAY BUSINESS), 11.37 (COMMUNITY
COMMERCIAL), 11.40 (CENTRAL BUSINESS DISTRICT), 11.42 (MAJOR
RECREATION), 11.44 (LIGHT INDUSTRY), 11.46 (HEAVY INDUSTRY), 11.47
(BUSINESS PARK), 11.61 (PARKING), 11.87 (CONDITIONAL USE PERMIT
STANDARDS FOR BUSINESS ZONES), 11.88 (CONDITIONAL USE PERMIT
STANDARDS FOR INDUSTRY ZONES)
_____________________________________________________________________________
WHEREAS, The City of Shakopee has proposed amendments to several sections of the
Zoning Ordinance regarding breweries, wineries, brewpubs, distilleries, and taprooms; and
WHEREAS, notices were duly sent and posted, and a public hearing was held before the
Planning Commission on November 7, 2013 at which time all persons present were given an
opportunity to be heard; and
WHEREAS, the Planning Commission recommended that City Code Sections 11.02,
11.35, 11.36, 11.37, 11.40, 11.42 11.44, 11.46, 11.47, 11.61, 11.87, 11.88 be amended to include
language pertaining to breweries, brewpubs, wineries, distilleries, tasting rooms and taprooms;
and
WHEREAS, the City Council heard the matter at its meeting on December 3, 2013; and
THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS:
Section 1 – That City Code Chapter 11 (Zoning) is amended to add the language as follows:
Language which is underlined shall be added. Language which is struckthrough shall be deleted.
Section 11.02, (Definitions)
16. Brewery: A facility that produces for sale beer, ale, or other beverages made from malt by
fermentation and containing not less than one-half of one percent alcohol by volume.
17. Brewpub: A Small Brewery that operates a restaurant on the same premises as the brewery,
whose malt liquor production per calendar year may be limited by MN State Statute.
33. Distillery: A facility that produces Ethyl Alcohol, hydrated oxide of ethyl, spirits of wine,
whiskey, rum, brandy, gin, or other distilled spirits, including all dilutions and mixtures thereof,
for nonindustrial use.
43. Farm Winery: A winery operated by the owner of a Minnesota farm and producing table,
sparkling, or fortified wines from grapes, grape juice, other fruit bases, or honey with a majority
of the ingredients grown or produced in Minnesota. A Farm Winery may include a tasting room.
81. Malt Liquor: any beer, ale, or other beverage made from malt by fermentation and
containing not less than one-half of one percent alcohol by volume.
83. Micro-distillery: A facility that produces Ethyl Alcohol, hydrated oxide of ethyl, spirits of
wine, whiskey, rum, brandy, gin, or other distilled spirits, including all dilutions and mixtures
thereof, for nonindustrial use not to exceed 40,000 proof-gallons per calendar year.
151. Small Brewery: A brewery that produces no more than 20,000 barrels of malt liquor in a
calendar year.
158. Taproom: An area for the on-sale consumption of malt liquor produced by the brewer for
consumption on the premises of or adjacent to one brewery location owned by the brewer. A
taproom may also include sales for off-premises consumption of malt liquor produced at the
brewery location or adjacent to the taproom and owned by the brewer for off-premises
consumption, packaged subject to MN Statute 340A.301, subdivision 7(b), or its successor.
159. Tasting Room, Winery / Distillery: An area for the on-sale consumption of distilled spirits
or wine produced on the premises of, or adjacent to one winery or one distillery and in common
ownership to the producer of the wine or distilled spirits. The tasting room area may include
sales for off premises consumption of products produced by the owner of the winery or distillery
location if permissible by state law. (Re-letter all entries accordingly).
Section 11.35, (Neighborhood Commercial, NC), Subd. 2 (Permitted Uses)
I.) Brewpubs;
Section 11.35, (Neighborhood Commercial, NC), Subd. 3 (Conditional Uses)
L). Farm Wineries producing less than 50,000 gallons of wine per calendar year with tasting
rooms;
M.) Micro-Distilleries with tasting rooms;
N.) Small Breweries with taprooms;
O.) Taprooms. (Re-letter all entries accordingly).
Section 11.36, (Highway Business, B-1), Subd. 2 (Permitted Uses)
P.) Brewpubs;
Section 11.36, (Highway Business, B-1), Subd. 3 (Conditional Uses)
AC). Farm Wineries producing less than 50,000 gallons of wine per calendar year;
AD.) Micro-Distilleries;
AE.) Small Breweries;
AF.) Taprooms. (Re-letter all entries accordingly).
Section 11.37, (Community Commercial, CC), Subd. 2 (Permitted Uses)
L.) Brewpubs
Section 11.37, (Community Commercial, CC), Subd. 3 (Conditional Uses)
N). Farm Wineries producing less than 50,000 gallons of wine per calendar year;
O.) Micro-Distilleries;
P.) Small Breweries;
Q.) Taprooms. (Re-letter all entries accordingly).
Section 11.40, (Central Busines District, B-3), Subd. 2 (Permitted Uses)
O.) Brewpubs;
Section 11.40, (Central Business District, B-3), Subd. 3 (Conditional Uses)
N). Farm Wineries producing less than 50,000 gallons of wine per calendar year with tasting
rooms;
O.) Micro-Distilleries with tasting rooms;
P.) Small Breweries with Taprooms (Re-letter all entries accordingly).
Section 11.42, (Major Recreation, MR), Subd. 2 (Permitted Uses)
M.) Brewpubs;
Section 11.42, (Major Recreation, MR), Subd. 3 (Conditional Uses)
N). Farm Wineries producing less than 50,000 gallons of wine per calendar year;
O.) Micro-Distilleries;
P.) Small Breweries with Taprooms (Re-letter all entries accordingly).
Section 11.44, (Light Industry, I-1), Subd. 2 (Permitted Uses)
K.) Breweries;
L.) Distilleries;
M.) Wineries (Re-letter all entries accordingly).
Section 11.44, (Light Industry, I-1), Subd. 3 (Conditional Uses)
S.) Taprooms;
T.) Winery / Distillery Tasting Rooms (Re-letter all entries accordingly).
Section 11.46, (Heavy Industry, I-2), Subd. 2 (Permitted Uses)
P.) Breweries;
Q.) Distilleries;
R.) Wineries (Re-letter all entries accordingly).
Section 11.46, (Heavy Industry, I-2), Subd. 3 (Conditional Uses)
Q.) Taprooms;
R.) Winery / Distillery Tasting Rooms (Re-letter all entries accordingly).
Section 11.47, (Business Park, BP), Subd. 2 (Permitted Uses)
K.) Breweries;
L.) Distilleries;
M.) Wineries (Re-letter all entries accordingly).
Section 11.47, (Business Park, BP), Subd. 3 (Conditional Uses)
L.) Taprooms;
M.) Winery / Distillery Tasting Rooms (Re-letter all entries accordingly).
Section 11.61, (Parking), Subdivision 4E (Table 2) #3 (Business/ Industry)
a.) Breweries: 1 per 500 square feet of floor area, or employee on largest shift, whichever is
greater
b.) Brewpubs: 1 per 3 seats + 1 per 50 square feet of congregation area.
c.) Distilleries: 1 per 500 square feet of floor area, or employee on largest shift, whichever is
greater + 1 per 50 square feet congregation area.
d.) Wineries: 1 per 500 square feet of floor area, or employee on largest shift, whichever is
greater.
e.) Taprooms: 1 per 3 seats + 1 per 50 square feet of congregation area.
f.) Tasting Room, Winery / Distillery: 1 per 3 seats + 1 per 50 square feet of congregation area
Section 11.87, (Conditional Use Permit Standards for Business Zones), Subd. 2
Farm Wineries:
1. Waste products must be disposed of in a timely manner and in such a way to reduce
odors.
2. Outdoor seating areas are to operate no later than 10:00 p.m.
3. The operator must supply the Planning Department with annual production reports.
Micro-Distilleries:
1. Waste products must be disposed of in a timely manner and in such a way to reduce
odors.
2. Outdoor seating areas are to operate no later than 10:00 p.m.
3. The operator must supply the Planning Department with annual production reports.
Small Breweries:
1. Waste products must be disposed of in a timely manner and in such a way to reduce
odors.
2. The operator must supply the Planning Department with annual production reports.
Taprooms:
1. On or Off premises sales require a liquor license.
2. Outdoor seating areas are to operate no later than 10:00 p.m.
Tasting Rooms, Winery / Distillery:
1. On or Off premises sales require a liquor license.
2. Outdoor seating areas are to operate no later than 10:00 p.m.
Section 11.88, (Conditional Use Permit Standards for Industry Zones), Subd. 2
Taprooms:
1. Taproom and retail areas must not exceed 25% of the floor area of the brewery operation.
2. On or Off premises sales require a liquor license.
3. Outdoor seating areas are to operate no later than 10:00 p.m.
Tasting Rooms, Winery / Distillery:
1. Tasting room and retail areas must not exceed 25% of the floor area of the operation.
2. On or Off premises sales require a liquor license.
3. Outdoor seating areas are to operate no later than 10:00 p.m.
Section 2. The City Council adopts the following findings of fact relating to the request to
modify the language in the City’s zoning ordinance regarding Landscape Services and
Contractors in the Highway Business Zone.
Criteria #1 That the original zoning ordinance is in error;
Finding #1 There has been no evidence that the original zoning classification is in error, the
proposed text amendment is for uses that are similar to some of the existing
uses permitted by the zoning ordinance. The proposed text amendment brings
clarity to the zoning ordinance for businesses that do not necessarily fit within
current classifications, and also provides defined quantities regulating the size of
facilities within commercial areas versus industrial areas.
Criteria #2 That significant changes in community goals and policies have taken place;
Finding #2 There have not been significant changes in community goals and policies,
however Shakopee has developed as a tourist destination and the proposed text
amendment allows for destination type businesses.
Criteria #3 That significant changes in City-wide or neighborhood development patterns have
occurred;
Finding #3 There has been no evidence presented that either city-wide or neighborhood
development patterns have changed. The proposed text amendment is for uses that
are similar to bars and restaurants or other currently permitted industrial uses.
Criteria #4 That the Comprehensive Plan requires a different provision;
Finding #4 The Comprehensive Plan does not require a different provision.
Section 3. Effective Date. This ordinance shall be in effect from and after the date of its
passage and publication.
Adopted in ___________ session of the City Council of the City of Shakopee, Minnesota held
this ______ day of ____________, 2013.
_____________________________
Brad Tabke, Mayor
ATTEST:
__________________________
City Clerk
Published in the Shakopee Valley News on the _____ day of _____________, 2013.
EXCERPT OF DRAFT MINUTES
PLANNING COMMISSION REGULAR MEETING
APRIL 2, 2015
7.b. Text Amendment Related to Alcoholic Beverage Production Establishments (15-10-TA)
Senior Planner Zweber summarized his report for the Planning Commission.
Councilmember Nelson is on hand to answer any questions. Mr. Nelson is the one who first
recommended to proactively amending the liquor related uses text amendment.
Commissioner Kenninger inquired about the approval process. Mr. Zweber states that the permitted
use wouldn’t need to come before the Planning Commission or the City Council but would need to
come before the Planning Commission and City Council for a Conditional Use Permit if one of
these businesses wanted to add a drive thru lane or patio seating. The liquor license would need
approval by City Council. Kenninger inquired about the next action needed by the Planning
Commission. Mr. Zweber stated that a public hearing will be held April 28th for the Planning
Commission and that recommendation would be forwarded to May 19th for City Council. City staff
will need the Commissioner’s comments by April 21st.
Commissioner VanderWiel inquired about the odors that these types of businesses produce. Mr.
Zweber stated that odors are only produced during the brewing process; brewing takes about 4
hours and typically would occur about 3 times a week. The odors produced are similar to smells
produced by a bakery. The fermenting process lasts between 18 days to 45 days, depending on the
beer; no odors are produced as it is a closed system. She is also concerned that some of the wording
is too ambiguous. Mr. Zweber stated that he is working with City Attorney to clarify the language
before it comes up for public hearing.
EXCERPT OF DRAFT MINUTES
PLANNING COMMISSION REGULAR MEETING
APRIL 28, 2015
5.d. Request by The City of Rosemount for a Text Amendment Related to Liquor Related
Businesses (15-10-TA)
Senior Planner Zweber summarized his report for the Planning Commission.
Commissioner Freeman stated that the Cannon Falls Winery tasting room is separate from their
farm and asked if that would that be allowed in Rosemount. Zweber stated that City Council would
have to make the decision about licensing. Currently, a business like Cannon River Winery would
need to get a license attached to a restaurant to be allowed in current liquor licensing.
Commissioner Henrie stated that these changes are to make more favorable to attack these types of
businesses, but wondered if staff has looked at the negative effects. Zweber stated that the last time
the Commission discussed this topic, the only issue discussed was odors. The City Council had a
discussion about these businesses at a work session and there were not astounding issues that arose.
The City Council did not want an ordinance that was more restrictive than neighboring
communities. Zweber asked about what specific concerns Henrie had. Henrie stated his concerned
are odor, traffic violations, and crime. Zweber stated the City Council had much discussion about
compliance checks in regards to who is buying beverages. The City council had previously discussed
traffic stops when there were a number of comments by residents and business owners that the
police are more aggressive than they need to be. The City Council did not give the Police
Department any direction to change the way that they conduct traffic stops. Odors were discussed
in past meeting and deemed they would not be any odor concerns. Concerns about crime would be
similar to those at a restaurant with a liquor license.
Commissioner Kurle inquired about discussions in the past about concerns in increased crime across
businesses in neighboring communities. Zweber thought that Kurle was thinking about the
Council’s discussion of Marcus Theater adding a liquor license when they add a restaurant. Zweber
stated that staff had inquired with other cities that have theaters with liquor licenses and that they
found that there wasn’t an increase in calls when liquor was present. The crime level was related to
the area the theater was located, not that liquor was present.
Commissioner Forster clarified what was being asked of the Commission, to recommend they
approve the revision related to alcohol businesses in the Zoning Ordinance, as well as remove some
uses. Zweber confirmed that was correct. Forster also inquired if removing those uses would create
any non-conforming uses. Zweber stated that there are not any current business with the uses
proposed to be removed and therefore no non-conforming uses would be created. Since there are
no businesses affected, no notices were sent.
Commissioner Kenninger clarified that amendments are being made to the Zoning Ordinance, but
that the establishments being proposed as a permitted use would still need to apply for a liquor
license.
The public hearing was opened at 7:58 pm.
Public comments: None
MOTION by Kurle to close the public hearing.
Second by Forster.
Ayes: 7. Nays: 0. Motion Passes.
Public Hearing closed at 7:58 pm
Additional Comments: None
Motion by Kenninger to Recommend that the City Council Approve the Ordinance
Relating to Alcoholic Beverage Production Establishments; Amending Rosemount City
Code Sections 11-1-4, 11-4-1, 11-4-11, 11-4-13, 11-4-14, 11-4-15, 1-4-15-1, 11-4-16 and 11-
6-1.
Second by Kurle
Ayes: 7 Nays: 0 Motion approved.