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2014-08-12 PC Agenda Packet PLANNING & ZONING COMMISSION MEETING Tuesday, August 12, 2014 8:00 PM 1. CALL TO ORDER - ROLL CALL – ADOPT AGENDA 2. MINUTES July 8 , 2014 Planning and Zoning Meeting (pages 1-3) 3. PUBLIC HEARINGS a. Public Hearing to Consider a Request from Omann Brothers Paving for a conditional use permit for expanding outdoor storage at 6551 LaBeaux Avenue NE, Albertville, MN (pages 4-13) b. Public Hearing to Consider an Amendment to the Federated Co-ops Planned Unit Development to Allow a 5,000 Square Foot Storage Building and Expanded Outdoor Storage at 11229 60th Street NE, Albertville, MN (pages 14-21) c. Public Hearing to Consider a Request from 5233 53rd Circle NE for a Fence Height Variance, Albertville, MN (pages 22-30) d. Public Hearing to Consider Zoning Amendments to Address the Location and Performance Standards of Breweries and Accessory Taprooms in Albertville, MN (pages 31-43) 4. OTHER BUSINESS a. None. 5. ADJOURNMENT City of Albertville 5959 Main Avenue NE P.O. Box 9 Albertville, MN 55301 Phone: 763-497-3384 UNAPPROVED PLANNING AND ZONING COMMISSION MINUTES TUESDAY JULY 8, 2014 1. CALL TO ORDER: Acting Chair O’Brien called the meeting to order at 7:00 p.m. 2. ROLL CALL: Present: Commissioner Jeffrey O’Brien, Commissioner Natalya Lindberg, and Commissioner Mark Barthel. Absent: Commissioner Dale Edgren, Commissioner Brian Totman, and Council Liaison Dan Wagner. Staff members present: Alan Brixius and Sue Schwalbe Others Present/Public: None 3. APPROVAL OF AGENDA Lindberg moved, second by Barthel to approve the agenda as submitted. Motion carried unanimously. 4. APPROVAL OF MINUTES Barthel moved, second by Lindberg to approve the minutes of January 14, 2014 with the following correction: Page 5. “Commissioner O’Brien stated a pedestrian bridge across Labeaux Avenue NE would be a huge improvement to the Outlet Mall and would like to see a brewery/tap room restaurant in the City of Albertville. Motion carried unanimously. 5. PUBLIC HEARINGS a. Public Hearing to Consider Text Amendment to Chapters 4600 and 4700 of the Albertville Zoning Code (Industrial Districts) revising Setbacks, Building Coverage and Building Heights. City of Al bertville Planning and Zoning Commission Minutes July 8, 2014 Page 2 Alan Brixius presented the planning reported dated June 4, 2014 to the Commission for their consideration. Recent development proposals in Albertville’s industrial districts have prompted staff a closer look at the Zoning Ordinance performance standards in the I-1, Limited Industrial and I-2, General Industrial districts. Changes would create greater flexibility in attracting new industrial development, expansion, and redevelopment in the City of Albertville. The main issues-- Building Height, Building Setbacks and Minimum District Size --were reviewed. • Maximum Building Height is currently 35 feet. Proposed 45 feet. • Front Yard Setbacks are currently 35 feet. Proposed 30 feet. • Side Yard Corner Lot Setbacks are currently 35 feet. Proposed 25 feet. • Side Yard Interior Lot Setbacks are currently 10 feet. No changes proposed. • Rear Yard Setbacks are currently 20 feet. No changes proposed. • Minimum District Size is currently five acres and 300 feet of street frontage for an industrial district. Proposal to remove provision. Commissioner Barthel questioned staff if this would be an issue next to a residential area. Brixius indicated most all activities will be in the rear of the building. Commissioner Barthel also inquired as to St. Michael’s plan for abutting properties. Brixius indicated St. Michael’s plan is very similar to Albertville’s proposed plan. Acting Chair O’Brien asked if the proposed amendments are comparable to other surrounding communities and agrees with proposed changes to keep the City of Albertville competitive with neighboring cities and communities. Staff explained the proposed are very consistent with all surrounding communities. Acting Chair O’Brien opened the Public Hearing. No one present. Lindberg moved, second by Barthel to close the Public Hearing. Motion carried unanimously. O’Brien moved, seconded by Barthel to recommend approval to the City Council of Zoning Text Amendment to Chapters 4600 and 4700 of the Albertville Zoning Code (Industrial Districts) Revising Setbacks, Building Coverage, and Building Heights. Motion carried unanimously. City of Al bertville Planning and Zoning Commission Minutes July 8, 2014 Page 3 4. OTHER BUSINESS a. Discussion of Zoning Amendment for Breweries and Accessory Taprooms. Alan Brixius presented the planning reported dated June 4, 2014 to the Commission for their consideration. A current popular business trend is craft beer breweries with accessory taprooms. Both a production brewery and a brewpub may sell beer for either off-site or on-site consumption. The sale of beer for off-site consumption (off-sale) involves selling to a wholesaler or retailer in the case of a production brewery, or may occur via the sale of carry-out containers (growlers) in the case of either a production brewery or a brewpub. The sale of beer for on-site consumption (on- sale) may occur in a taproom in the case of a brewery, or in a restaurant/bar in the case of a brewpub. A key distinction between a production brewery and a brewpub is that a production brewery typically sells more of its beer off-site, while a brewpub only brews beer for sale onsite in a restaurant/bar. Breweries with accessory taprooms exhibit land use characteristics associated with both industrial and commercial zoning districts, and as such warrant careful consideration by the City as to the most appropriate placement of the use. There are two approaches to a land use amendment permitting breweries and brewer taprooms. One would be to address potential land use issues in a series of general provisions, then allow the taproom use as a permitted use in the appropriate zoning district(s). With this approach, a potential user would prepare plans, request permits from staff, and providing the proposal meets the requirements of the zoning district and the established general provisions, the applicant would receive permits and construct the facility. The second approach would be to establish the use in selected commercial or industrial district(s) as a Conditional Use, along with a series of conditions that the applicant would have to meet as a baseline condition for CUP approval. The CUP process includes a required public hearing and the opportunity for Planning Commission and City Council Review. Commissioner O’Brien stated that staff has the correct focus by examining the zoning locations and requested staff to compose a City of Albertville Ordinance for the Planning Commission to review. No further business. O’Brien moved, second by Lindberg to adjourn meeting at 8:00 p.m. _____________________________ Sue Schwalbe, Recording Secretary 4 PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: August 6, 2014 RE: Albertville - Omann Brothers Paving Outside Storage CUP FILE: 163.06 - 14.03 BACKGROUND Omann Brothers Paving Inc. has submitted an application for a conditional use permit to allow an expansion of their outside storage area upon their 7.5 acre property located west of County Road 19 and north of Interstate I-94. Specifically, the expanded outdoor storage area is proposed to be located upon a recently acquired 2.5 acre parcel which abuts the north side of the Omann Brothers Paving site. Like the existing outdoor storage area, the expanded storage area is intended to be used to store materials and equipment related to the principal use. Also, like the existing storage area, the expanded storage area is proposed to be surfaced in gravel. The subject site is zoned I-1, Limited Industrial within which accessory outdoor storage is listed as a permitted conditional use. Thus, the processing of a conditional use permit is necessary to accommodate the proposed site activity. Attached for reference: Exhibit A: Certificate of Survey Exhibit B: Site / Landscape Plan Exhibit C: Grading Plan Exhibit D: Stormwater and Pollution Prevention Plan Exhibit E: Details ISSUES AND ANALYSIS Previous Approvals. In 1995, the City approved site and building plans for the Omann Brothers Paving facility. This approval included an office and maintenance building associated with the asphalt, earth moving, and constriction contracting operations. As 5 part of such approval, a conditional use permit was also processed to allow the outside storage of equipment and machinery on the west one-half of the property. The CUP was approved subject to various conditions intended to ensure compatibility with surrounding uses. Property Acquisition. The 2.5 acre site upon which the expanded outdoor storage activities are proposed was recently acquired by the applicant. Although the site abuts the primary Omann Brothers parcel, it holds a separate legal description. While staff does not feel it is necessary to legally combine the two parcels, it should be understood that the use of the 2.5 acre parcel for outdoor storage shall only be allowed as an accessory to the principal use. Access to the 2.5 acre parcel is provided via existing access easement from the east. Conditional Use Permit Evaluation Criteria. Applications for conditional use permit are subject to a specific set of evaluation criteria as outlined in Section 400.2.F of the Zoning Ordinance. The following is a listing of the criteria: 1. The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official city comprehensive plan. 2. The proposed use is or will be compatible with present and future uses of the area. 3. The proposed use conforms with all performance standards contained herein. 4. The proposed use will not tend to or actually depreciate the area in which it is proposed. 5. The proposed use can be accommodated with existing public services and will not overburden the City's service capacity. 6. Traffic generated by the proposed use is within capabilities of streets serving the property. Assuming compliance with all recommended conditions of project approval, the proposed outside storage activities will be in compliance with the preceding evaluation criteria. Site Plan. The submitted site plan depicts improvements proposed upon the 2.5 acre parcel of land upon which the expanded outside storage activities are proposed. As a condition of CUP approval, it is recommended that a site plan which encompasses the entire 7.5 acre site (both properties under the ownership of the applicant) be provided. 6 Such plan will illustrate the functional relationship between all site components. Additionally, such a site plan will graphically document the various site features of the new conditional use permit (applicable to both parcels) for record-keeping purposes. Outside Storage Requirements. Section1000.15.B of the Zoning Ordinance establishes a specific set of conditions applicable to accessory outside storage activities. The following is a listing of the various conditions followed by a staff comment: 1. The area occupied is not within a required front or required side yard. Staff Comment: The proposed outside storage area will not occupy a required front or side yard. Rather, the rear yard which is presently devoted to outdoor storage activities will be expanded northward. 2. The storage area is totally fenced, fully screened and landscaped according to a plan approved by the Zoning Administrator, and a landscape guarantee, as determined by the Zoning Administrator, is provided. Staff Comment: According to the submitted site plan, an 8 foot high chain link fence is to enclose the north, east and west sides of the proposed outside storage area. The type and height of the proposed fence matches that which presently exists upon the subject site. To ensure screening, it is recommended that slats be provided in all chain link fencing (existing and proposed). The submitted landscape plan calls for the placement of 13 coniferous trees along the proposed periphery of the outside storage area. Such tree plantings are spaced approximately 50 feet apart. To ensure an effective visual screen, it is recommended that such trees be staggered and spaced 25 feet on center. 3. If abutting a residential district or use, screening and landscaping is provided according to a plan approved by the Zoning Administrator. Staff Comment: The subject site does not border any residential uses. 4. The storage area is grassed or surfaced with asphalt, concrete, or crushed rock (concrete or granite) to control dust. Should an area surfaced with anything other than hard surfacing prove to be unmaintainable, the City shall require that a hard surface be installed within three (3) months of formal written notice to the property owner. Staff Comment: Like the existing outside storage area, the expanded outside storage area is proposed to be surfaced in gravel. In regard to surfacing requirements, the existing CUP states that gravel is an acceptable surfacing material provided maintenance problems do not occur (resulting in the off-site 7 transport of mud). In regard to surfacing, it is recommended that the City retain the right to require asphalt surfacing should problems arise. 5. All lighting shall be hooded and so directed that the light source shall not be visible from the public right of way or from neighboring residences and shall be in compliance with section 1000.10 of this Chapter. Staff Comment: According to the submitted site plan, four light poles (shoe box- type fixtures) are to be provided within the proposed outdoor storage area. As a condition of CUP approval, all exterior lights must be arranged to deflect light or glare away from public streets or adjacent properties. Further, such light poles may not exceed the maximum 30 foot height requirement of the Ordinance. 6. The storage area does not encroach upon required public or employee parking space(s), required loading space, or snow storage area as required by this Ordinance. Staff Comment: While the proposed outdoor storage area will not encroach upon existing snow storage areas, it is unclear where additional snow removed from the new outdoor storage area will be stored. This issue should be addressed by the applicant. 7. A site plan documenting the location and grading of the storage operation shall be submitted and shall be subject to the approval of the City Engineer. Staff Comment: As required, a site grading plan has been submitted for review. Such plan shall be subject to comment and recommendation by the City Engineer. RECOMMENDATION The applicant is requesting a conditional use permit to allow an expanded outside storage area. Provided certain conditions are imposed to minimize potential impacts, staff believes the activity can compatibly exist upon the subject site. In this regard, staff recommends approval of the conditional use permit subject to the following conditions: 1. The following conditions of approval shall be applied to the entire storage area on the larger 7.5 acre site (both properties under the ownership of the applicant). 2. Gravel surfacing of the outdoor storage area shall be allowed provided such surfacing material is properly maintained to avoid the creation and transfer of dust or mud onto abutting rights-of-way and other properties. 8 3. Outdoor storage materials shall be limited to construction vehicles, machines and equipment accessory to the principal use of the site. The outside storage area shall be kept organized and free of debris at all times. 4. The following landscaping-related conditions shall be satisfied: a. To ensure an effective visual screen, trees placed around the entire periphery of the proposed outside storage area shall be staggered and spaced 25 feet on center. b. All areas not planted with trees or shrubs shall be seeded or sodded with grass. c. A landscape guarantee for two years shall be provided for all proposed site plantings. 5. Chain-link fencing (8 feet in height with slats) shall be provided around the perimeter of the entire outside storage area (existing and proposed). 6. With the exception of vehicles and machinery, the storage of materials and/or equipment shall not exceed the height of the screen fence. No stacking of items may occur that exceed the height of the site screening. 7. Subject to the City Engineer’s comments and recommendations in regard to site grading and drainage activities. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Omann Brothers Paving Inc. 9 10 11 12 13 14 PLANNING REPORT TO: Adam Nafstad FROM: Emily Shively/ Alan Brixius DATE: August 6, 2014 RE: Albertville – Site and Building Plan Review for Federated Co-ops Inc., 11229 60th Street NE FILE: 163.06 – 14.02 BACKGROUND Federated Co-ops is planning to construct a new 5,000 square foot warehouse building in the western portion of their property. The warehouse building location is indicated on the preliminary plat approved approximately one year ago. At that time, Federated acquired two parcels and the property was rezoned to PUD specifically approving the existing agri-business uses and retaining underlying B-3 District zoning to permit the ongoing use of the property while anticipating long-term commercial redevelopment consistent with the Albertville Comprehensive Plan. Attached for reference: Exhibit A: Site Plan Exhibit B: Proposed Siding Materials and Building Type ISSUES AND ANALYSIS Site and Building Plan Review. The proposed warehouse building will be 5,000 square feet and provide enclosed storage for business inventory. Setbacks. As part of the PUD approval, 10 foot setbacks from the east, south, and west property lines were established. The proposed warehouse building will meet the setback requirement and abut the 10 foot drainage and utility easement that runs along the south property line. 15 Building Type and Standards. The applicant is proposing a pole construction warehouse building. As the use of the property is agriculture-related, this is permitted. However, since the location of the property is adjacent to Central Park and is more visible than typical agricultural buildings, a higher quality exterior material is required. The applicant has proposed white horizontal steel lap siding that will match the color of the existing buildings on the site and have a more residential character than typical metal siding. Outdoor Storage. Existing items stored on site where the building will be located will be moved to the northwest corner of the parcel. The existing fence will be relocated to accommodate construction of the new building as well. The expanded outdoor storage is being requested as part of this PUD amendment. Approval of the new outdoor storage must meet City standards as outlined in the recommendations section of this report. SUMMARY AND RECOMMENDATION The proposed warehouse building was reviewed as part of the site and building plans accompanying the rezoning and preliminary plat review undertaken in July 2013. Federated Co-ops is now planning to construct the building consistent with the previously approved plans. We are recommending approval of the site and building plans for the construction of a 5,000 square foot warehouse building. Approval may be granted with the following conditions: 1. The applicant must secure a fence permit and provide a detail of the proposed fence and a site plan that illustrates the location of the new fence. The applicant must fence in all outdoor storage areas to define and secure this use of the site. If the fence is chain link, the City may require slats be included in the fence. The need for this will depend on the final screening plan for the storage area. 2. Prior to clear cutting and grading of the site, the applicant must illustrate the limits of the proposed outdoor storage area and demonstrate the following: a. Areas of tree preservation. The applicant is proposing to save some of the existing trees along the north property line to screen the storage area from 60th Street. They must illustrate the limits of tree removal and trees to be saved to demonstrate what screening will remain. If the tree cover is determined to be inadequate, slats woven into the chain link fence may be required. b. The site grading must show drainage patterns and where stormwater will be collected, and treated. Site grading shall be reviewed and approved by the City Engineer. 16 c. The applicant must install a ground cover over the outdoor storage area to control dust and mud. The surfacing material may be crushed rock or other material approved by the City Engineer. 3. Any new exterior lighting shall be 90 degree cutoff fixtures with the light source recessed into a hood or shield. This shall apply to either freestanding poles or building mounted lights. 4. The outdoor storage area shall only be used for the storage of equipment and/or materials related to the operation or services of the principal use of the property. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Federated Co-ops, 502 South 2nd Street, Princeton, MN 55371 EXHIBIT A17 EXHIBIT B18 EXHIBIT B19 EXHIBIT B20 EXHIBIT B21 22 PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: August 7, 2014 RE: Albertville – 5233 53rd Circle NE Fence Height Variance FILE: 163.06 – 14.04 BACKGROUND Nyles Gentz, owner of the single family home at 5233 53rd Circle NE, is requesting a variance from the City’s residential fence height of six feet to allow a 10 foot boundary line fence to be constructed along the entire length of his rear property line. The 10 foot tall fence is intended to provide visual relief from their neighbor to the west. Allegedly, the neighbor to the west chooses not to wear clothes within his house. He has occasionally exposed himself to the members of the Gentz family or their nanny while passing by his windows or when he lets his dogs out of the sliding glass door on his deck. The Gentz lot and home have similar elevations and as such, sight lines from the Gentz house windows, deck and yard are open to the adjoining property. The Gentz family have young children that have been exposed to their neighbor. They have contacted the Sheriff’s Department but have not received any relief because the neighbor stays within the confines of his house. The applicant has explored landscaping, however, this does not offer immediate resolution of the issue. Mr. Gentz has approached the City Council for suggestions for how to proceed and they indicated that a variance offers the option. Attached for reference: Exhibit A: Site Survey Exhibit B: Fence Examples Exhibit C: Proposed Fence Detail Exhibit D: Neighborhood Aerial 23 ISSUES AND ANALYSIS Fence Criteria. Section 1000.6 of the Albertville Zoning Ordinance establishes the following performance standards for residential fences: 1. All fences require a permit. 2. Boundary line fences must be located entirely on the property of the person constructing the fence. This will require the applicant to provide a site survey or locate the property corner monuments to allow the City Building Inspector to verify the fence location. 3. The fence must be constructed in a professional manner. Any fence over eight feet in height must be engineered to sustain wind loads. The construction drawings must include engineering footings and supports that can accommodate the additional height. 4. Boundary line fences cannot be solid walls. Boundary line fences shall be slatted to provide a minimum of 5% open areas throughout the fence panels to allow for the passage of air and drainage. 5. The proposed fence is a boundary line fence located in a rear yard drainage easement. The fence design and construction shall not interfere with neighborhood drainage patterns. The fence design must allow for the passage of stormwater. 6. Rear yard fences are limited to a six foot height. Due to sight lines from both their yards and raised deck, the applicant is requesting a taller, 10 foot fence to screen his neighbor. Variance Criteria. This request is unusual in that the taller fence is being requested to screen a neighbor’s personal habits rather than a land use. In considering the variance, the Planning Commission and City Council must make the following findings: 1. Is the variance for a 10 foot tall fence at this location a reasonable use of the property? Comment: The applicant is seeking immediate relief from his neighbor’s personal habits. Alternative screening methods (i.e., landscaping) will not provide full immediate screening. The proposed fence height is intended to screen the adjoining property from both the yard and first floor of the home. 2. Practical difficulties unique to the property. Comment: The physical difficulties with this situation is that both homes sit at similar elevations with relatively flat yards. This results in clear lines of sight between the homes from both the rear yard and the first floor of the home and 24 deck. Due to the design of the lots and blocks within this neighborhood, only the Gentz property has visual exposure to the property in question. 3. Literal interpretation of the ordinance would deny the applicant of rights commonly enjoyed by other properties in the same district. Comment: According to testimony from Mr. Gentz, the neighbor’s offensive personal behavior interferes with his family’s quiet enjoyment of their home, deck and rear yard. He has children that he doesn’t want exposed to his neighbor. The 10 foot fence will provide screening that would allow his family to use their property without the intrusion by the neighbor. 4. The variance is not a result of actions by the applicant. Comment: This situation has been created by the neighboring property. The applicant has contacted the Sheriff’s Department and filed complaints, however, this has not provided any relief. 5. The variance requested is the minimum variance needed to accomplish the intended purpose of the applicant. Comment: The applicant initially approached staff and Council requesting a 12 foot fence. After analysis, the applicant has reduced the fence height sufficient to screen the yard, deck and first floor of the home. SUMMARY AND RECOMMENDATION The variance request is unusual in that it addresses a neighborhood conflict rather than a land use issue. The applicant has sought other avenues to remedy the situation and has found no relief. This variance application and fence construction will provide the applicant and his family immediate relief from a difficult situation. If the Planning Commission agrees with the analysis of this report and finds that the applicant meets the approval criteria, we would recommend approval of the variance to allow a 10 foot tall fence along the rear property line of 5233 53rd Circle NE with the following conditions: 1. The applicant locate property monuments and mark the corners of the property to show the location of the fence in relationship to the property lines on the lot to allow the Building Inspector to verify that the fence is entirely on the applicant’s property. 2. The applicant must provide engineered construction plans for the 10 foot tall fence showing footings, supports, and fence panel design along with an application for a fence permit for review and approval by the Building Inspector. 25 3. The placement and construction of the fence shall not interfere with or obstruct the site or block stormwater drainage patterns along these shared property lines. 4. The fence shall not be a solid wall, rather each panel must provide a minimum of 5% open space for passage of air, light and stormwater. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Nyles Gentz EXHIBIT A26 EXHIBIT B 27 EXHIBIT B 28 EXHIBIT C29 EXHIBIT D 30 31 MEMORANDUM TO: Adam Nafstad FROM: Alan Brixius/Michelle Barness DATE: August 7, 2014 RE: Albertville – Brewer Taproom Ordinance FILE NO: 163.05 – 14.09 BACKGROUND On July 8, 2014 the Planning Commission discussed the topic of permitting breweries in the community. A memorandum introducing types of brewery uses, brewery licensing, and brewery land use issues was provided for consideration at that time. The Planning Commission made a determination that breweries with taprooms should be permitted in commercial zoning districts in the community, given certain performance and licensing standards can be met by the brewery business. City ordinance will need to be amended to: 1) Create a taproom on-sale license for breweries, 2) Create an off-sale growler license for breweries, 3) Allow breweries with taprooms in commercial districts, and 4) Create performance criteria for taprooms in commercial districts. This memorandum summarizes current ordinance regulating the on- and off-sale of alcohol in the community, and provides an overview of proposed ordinance amendments to permit breweries with taprooms. ISSUES ANALYSIS State Licensing Requirements for Brewers. The State of Minnesota has different licensing requirements for different brewery operations. A brewer can pursue licensing for the wholesale of malt liquor, for the on-sale of malt liquor in a taproom at the brewery location, and to be able to off-sale malt liquor in growlers from the brewery location. The following are license requirements for these uses: 32 State of Minnesota licensing: 1) Small brewer license (for brewers listed under MN Statute 340A.301 Subd 6, clause (c), (i) or (j)). 2) Malt beverage wholesale license (if wholesale is intended). Local municipality licensing: 1) Taproom license for on‐sale of malt liquor produced at the brewery (the City fills out a certification form to the State indicating that the license has been granted). 2) Small brewer off‐sale license for the sale of growlers (the application is to be forwarded to the state for review & follow‐up). Current Liquor Licensing and Regulation in Albertville. Malt liquor is typically defined as intoxicating liquor. Currently, the City only issues Intoxicating Liquor On- Sale Licenses to hotels, clubs, restaurants, and exclusive liquor stores, and Intoxicating Liquor Off-Sale Licenses are issued only to exclusive liquor stores. In addition, the City may issue Sunday On-Sale Intoxicating Liquor Licenses to any hotel, restaurant, or club which has facilities for serving at least thirty (30) guests at one time and which has an on-sale license; this is to permit on-sale intoxicating liquor sales on Sunday in conjunction with the serving of food. Intoxicating liquor licenses are required to adhere to general regulations of City Code Title 4, Chapter 1 Alcoholic Beverages pertaining to license processing, fees, eligibility, business operations, conditions and restrictions. Specific requirements are provided for music, entertainment, and outdoor sales associated with the on-sale of intoxicating liquor. In the past, the City has only granted on-sale liquor licenses to businesses that are also providing food service, and has required that a certain percentage of business come from the sale of food. The State of Minnesota does not require food sales in a brewery taproom, but does not prohibit a brewery from attaining a restaurant license to sell food in association with the sale of beer. As the current on-sale and off-sale intoxicating liquor licenses are not issued to breweries, and the requirement for food sale is integral to current liquor licensing, staff recommends the creation of new on- and off-sale malt liquor licensing specific to breweries with taprooms in the community. Many other communities have taken this approach to be able to specify criteria for malt liquor licensing as required by the State, and to differentiate operation and licensing requirements for this unique land use. Ordinance Amendments to Permit Breweries with Taprooms. Title 4, Chapter 1 Alcoholic Beverages, Section 4-1-4 Classification of Licenses: To permit breweries with taprooms in the community, Chapter 1 Alcoholic Beverages will need to be amended to provide the following under Section 4-1-4 Classification of Licenses: 33 1) A Brewery Taproom License, authorizing on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. This license may be issued to the holder of a brewer’s license under Minnesota Statute 340A.301, subd.6, clauses (c), (i), and (j). 2) A Brewery License for Off-Sale of Malt Liquor, authorizing off-sale of malt liquor at a brewer’s licensed premises, which has been produced and packaged by the brewer. This license may be issued to brewers licensed under Minnesota Statute 340A.301 Subd.6, clause (c), (i), (j), or (d). The City should make a determination as to whether the current Sunday on-sale intoxicating liquor license should be amended to allow breweries to attain the license. As described, breweries are not required by the State to have a restaurant in association with on-sale of malt liquor, but may hold a restaurant license with other on- or off-sale liquor licenses if desired. If a brewer’s taproom decides against holding a restaurant license, and the City would like to provide the option for them to conduct Sunday on-sales, a new Sunday on-sale license specific to Brewer’s taprooms may need to be provided. Title 4, Chapter 1 Alcoholic Beverages, Section 4-1-11 Conditions of License: In addition, Section 4-1-11 Conditions of License should be amended to provide specific criteria for a Brewery Taproom License, a Brewery License for the Off-Sale of Malt Liquor, or a Brewery Sunday On-Sale License. Criteria are drawn from liquor licensing regulations provided in State Statutes 340A.301, or respond to the need for licensees to adhere to general liquor licensing standards provided in Chapter 1 Alcoholic Beverages, or to land use requirements within the Zoning Ordinance (which will be addressed further). Brewery Taproom License: • A brewer may hold only one (1) brewer taproom license, and may not have an ownership interest in a brewery licensed under MN Statute 340A.301, subd.6, clause (d). • If the brewer also holds a wholesale license, the brewer may not distribute more than 20,000 barrels or manufacture more than 25,000 barrels of its own brand of malt liquor annually. • The on-sale of malt liquor may only be sold Monday through Saturday, unless a Sunday sales license is attained, and during the hours that “on-sale” of liquor may be made. • A brewery must demonstrate compliance with all zoning ordinance standards pertaining to breweries with accessory taprooms. 34 • All other provisions of this chapter shall be applicable to such licenses and licensees unless inconsistent with the provisions of this section. • Nothing in this section shall preclude the holder of a brewer taproom license from also holding a license to operate a restaurant at the taproom location. A Brewery License for Off-Sale of Malt Liquor: • The amount of malt liquor sold at off sale may not exceed 500 barrels annually. • Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in the jurisdiction in which the brewer is located, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores. • The malt liquor must be packaged in 64 ounce containers known as growlers and may have the following packaging requirements: o Growlers must bear a twist-type closure, cork, stopper or plug. o At time of sale, paper or plastic adhesive band, strip or sleeve shall be applied to the container and extend over the top of the closure, forming a seal. o The band, strip or sleeve must bear the name and address of the brewer, and the must be identified as malt liquor, contain the name of the malt liquor, and bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless labeled otherwise. • The brewer seeking the license may not brew more than 20,000 barrels of its own brands of malt liquor annually. • A brewer may only have one off-sale license. Appendix A, Zoning Ordinance: Ch. 0200 Rules and Definitions: The definitions section of the ordinance will need to be amended to provide definitions for common brewery terms, including brewery, brewpub, and taprooms. The following are recommended definitions: BREWERY: A business which manufactures, processes and warehouses malt liquor for wholesale distribution, or directly sells beer product for on-site consumption on the brewery premises or for off-site consumption as growlers. BREWPUB: A brewer that holds one or more retail on-sale licenses, and who manufacturers fewer than 3,500 barrels of malt liquor in a year at one license premises, 35 the entire production of which is solely for consumption on tap on the brewery site, or for off-sale from the brewery in the form of growlers. TAPROOM: A room that is ancillary to the production of beer at a production brewery where the public can purchase and /or consume only the beer produced on site. Ch. 4300 B-2 Limited Business District, Ch. 4350 B-2A Special Business District , Ch. 4400 B-3 Highway Commercial District, Ch. 4500 B-4 General Business District, and Ch. 4501 B-W Business Warehousing District: The Planning Commission made a determination that breweries with taprooms could be a conditional use in all commercial districts. Therefore, the B-2, B-2A, B-3, B-4, and B- W Districts will need to be amended to list breweries as a conditional use. Ch. 2900 Reserved: In addition, Chapter 2900 (currently reserved) should be added to the Zoning Ordinance to list specific standards for allowing breweries as conditional uses in commercial districts. Conditional use standards for breweries should address the following land use issues: 1) The provision of adequate space for brewing, packaging, and warehousing large quantities of malt liquor on the brewery site. A cap on the scale of production may also be considered, to manage the amount of space required for manufacturing operations. Minnesota State Statute limits production to 250,000 barrels for brewer taprooms, to 25,000 barrels for brewers with new wholesale licenses, and to 20,000 barrels annually for breweries applying for licenses to sell off-sale growlers. 2) The transportation of malt liquor from a brewery location for sale at surrounding retail locations. This may result in an increase in truck traffic in the commercial area, which will need to be managed. If a brewery parcel is unable to provide off street loading, it would be reliant on loading on a public street or alley, in which case the City should consider creating a cap on the number of trucks that are allowed to use the public right of way for loading purposes each day. 3) Outdoor storage at the brewery site. 4) Odors associated with manufacturing of malt liquor on the brewery site. 5) The compatibility of the brewery site and buildings with surrounding commercial businesses. 6) Exterior lighting of the brewery site. 7) Music, entertainment, and or outdoor sales of product associated with a taproom. 36 CONCLUSION AND RECOMMENDATION The Planning Commission should discuss licensing and land use recommendations for allowing breweries in the community as raised in this report, and provide feedback on the attached draft ordinance amendments, which include: 1. An amendment to Title 4, Chapter 1 Alcoholic Beverages, Section 4-1-4 Classification of Licenses, to create a “Brewery Taproom License,” a “Brewery License for Off-Sale of Malt Liquor,” and to provide brewpubs as a candidate for the existing “Intoxicating Liquor On-Sale Licenses.” The Planning Commission should provide feedback on how to address the issue of Sunday on-sale intoxicating liquor licenses for breweries with taprooms that do not hold a restaurant license. 2. An amendment to Title 4, Chapter 1 Alcoholic Beverages, Section 4-1-11 Conditions of License, to create a list of criteria associated with both the taproom license, and the off-sale malt liquor license. 3. An amendment to Appendix A, Zoning Ordinance, Chapter 0200 to define breweries, taprooms, brewpubs, and growlers. 4. An amendment to Appendix A, Zoning Ordinance, Chapter 2900 to provide specific standards for allowing breweries with taprooms as conditional uses in commercial districts. 5. An amendment to Appendix A, Zoning Ordinance, Ch. 4300 B-2 Limited Business District, Ch. 4350 B-2A Special Business District , Ch. 4400 B-3 Highway Commercial District, Ch. 4500 B-4 General Business District, and Ch. 4501 B-W Business Warehousing District to allow breweries with taprooms as a conditional use, subject to the requirements of Title 4, Chapter 1 and Zoning Ordinance Chapter 1000 pertaining to the licensing and regulation of brewery uses. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri 37 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. ___________ AN ORDINANCE AMENDING CHAPTER 0200 RULES AND DEFINITIONS TO DEFINE BREWERY TERMS, AN ORDINANCE DEFINING ‘CHAPTER 2900 BREWERIES’ WITHIN THE ALBERTVILLE ZONING ORDINANCE, IN ORDER TO PROVIDE STANDARDS FOR CONDITIONAL BREWERY USES IN COMMERCIAL DISTRICTS, AND AN ORDINANCE AMENDING ALBERTVILLE ZONING ORDINANCE CHAPTER 4300 B-2 LIMITED BUSINESS DISTRICT, CHAPTER 4350 B-2A SPECIAL BUSINESS DISTRICT, CHAPTER 4400 B-3 HIGHWAY COMMERCIAL DISTRICT, CHAPTER 4500 B-4 GENERAL BUSINESS DISTRICT, AND CHAPTER 4501 B-W BUSINESS WAREHOUSING DISTRICT TO PROVIDE BREWERIES WITH TAPROOMS AS A CONDITIONAL USE IN THE CITY OF ALBERTVILLE THE CITY COUNCIL OF THE CITY OF ALBERTVILLE ORDAINS: Section 1. Chapter 0200 Rules and Definitions, Section 200.2 Definitions, of the Albertville Zoning Ordinance, is hereby amended to read as follows: BREWERY: A business which manufactures, processes and warehouses malt liquor for wholesale distribution, or directly sells beer product for on-site consumption on the brewery premises or for off-site consumption as growlers. BREWPUB: A brewer that holds one or more retail on-sale licenses, and who manufacturers fewer than 3,500 barrels of malt liquor in a year at one license premises, the entire production of which is solely for consumption on tap on the brewery site, or for off-sale from the brewery in the form of growlers. TAPROOM: A room that is ancillary to the production of beer at a production brewery where the public can purchase and /or consume only the beer produced on site. Section 2. The Albertville Zoning Ordinance, is hereby amended to read as follows: Chapter 2900: Breweries with Taprooms/Brewpubs 2900.1 Purpose: The regulation of breweries in this ordinance is to establish standards and procedures by which breweries can be conducted within the city without jeopardizing the health, 38 safety and general welfare of residents and/or the surrounding neighborhood. This chapter establishes the city's minimum requirements for the establishment of a brewery in a commercial district. 2900.2 Declaration of Conditions The planning commission may recommend and the council may impose such conditions on the granting of a brewery conditional use permit as may be necessary to carry out the purpose and provisions of this chapter. 2900.3 Requirements; General Provisions Breweries shall be allowed as a condtional use in the B-2, B-2A, B-3, B-4, ad B-W zoning districts, subject to the following criteria: A. The owner of the brewery qualifies for and receives a State of Minnesota brewer license and a malt liquor wholesale license (if wholesale of malt liquor is an intended activity) from the State of Minnesota, according to Minn. Statutes Section 340A.301. B. An accessory taproom for the on-sale of beer produced on the brewery site shall require a Brewery Taproom License from the City of Albertville, according to City Code Ch. 1 Alcoholic Beverages. C. On-site sale of beer in the form of growlers shall require a Brewery/Brewpub License for Off-Sale of Malt Liquor, according to City Code Ch. 1 Alcoholic Beverages. D. The brewery must adhere to the following production limits: 1. A brewery with just a taproom license: Total production of malt liquor may not exceed 25,000 barrels annually and distribution may not exceed 20,000 barrels annually. 2. A brewery with a license for off-sale of malt liquor: Total production may not exceed 20,000 barrels annually, and liquor sold off-sale may not exceed 500 barrels. 3. A brewpub: Total retail sales at on-or-off sale may not exceed 3,500 barrels per year, and liquor sold off-sale may not exceed 500 barrels. The brewer shall annually submit production reports with the request to renew a brewer taproom or off-sale malt liquor license. E. The brewery facility provides adequate space for off-street loading and unloading of all trucks greater than 22 feet in length. In the absence of off-street loading, the City 39 may impose limits on deliveries or shipments using the public right of ways, including regulating the number of trucks per day and the hours that deliveries are permitted. F. Loading docks shall be located and designed so they are screened from adjoining public streets or adjoining residential zoning. G. No outdoor storage is permitted on the site, with the exception that waste handling (refuse and/or recycling) may occur in an enclosure that is fully screened from adjoining streets and residential zoning. H. No odors from the business may be perceptible beyond the property line. Section 3. Chapter 4300 B-2 Limited Business District, Section 4300.4 Conditional Uses, of the Albertville Zoning Ordinance, is hereby amended to read as follows: The following are conditional uses in a B-2 district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) Breweries with taprooms/brewpubs. Breweries are subject to the licensing provisions of title 4, chapter 1 of the city code, and the performance standards for such uses provided in chapter 2900 of this ordinance. Section 4. Chapter 4350 B-2A Special Business District, Section 4350.4 Conditional Uses, of the Albertville Zoning Ordinance, is hereby amended to read as follows: The following are conditional uses in a B-2A district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) Breweries with taprooms/brewpubs. Breweries are subject to the licensing provisions of title 4, chapter 1 of the city code, and the performance standards for such uses provided in chapter 2900 of this ordinance. Section 5. Chapter 4400 B-3 Highway Commercial District, Section 4400.4 Conditional Uses, of the Albertville Zoning Ordinance, is hereby amended to read as follows: The following are conditional uses in a B-3 district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) 40 Breweries with taprooms/brewpubs. Breweries are subject to the licensing provisions of title 4, chapter 1 of the city code, and the performance standards for such uses provided in chapter 2900 of this ordinance. Section 6. Chapter 4500 B-4 General Business District, Section 4500.4 Conditional Uses, of the Albertville Zoning Ordinance, is hereby amended to read as follows: The following are conditional uses in a B-4 district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) Breweries with taprooms/brewpubs. Breweries are subject to the licensing provisions of title 4, chapter 1 of the city code, and the performance standards for such uses provided in chapter 2900 of this ordinance. Section 7. Chapter 4501 B-W Business-Warehousing District, Section 4501.4 Conditional Uses, of the Albertville Zoning Ordinance, is hereby amended to read as follows: The following are conditional uses in a B-W district, subject to additional requirements set forth in this ordinance: (Requires a conditional use permit as regulated by chapter 400 of this ordinance.) Breweries with taprooms/brewpubs. Breweries are subject to the licensing provisions of title 4, chapter 1 of the city code, and the performance standards for such uses provided in chapter 2900 of this ordinance. THIS AMENDMENT SHALL BE IN FULL FORCE AND EFFECTIVE IMMEDIATELY FOLLOWING ITS PASSAGE AND PUBLICATION Approved by the Albertville City Council the ________________, 2014. _________________________ Jillian Hendrickson, Mayor _________________________ Kimberly Olson, City Clerk 41 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA ORDINANCE NO. ___________ AN ORDINANCE AMENDING ALBERTVILLE CITY CODE CHAPTER 1 ALCOHOLIC BEVERAGES, SECTION 4-1-4 TO IDENTIFY BREWPUBS AS CANDIDATES FOR THE EXISTING ON-SALE INTOXICATING LIQUOR LICENSE AND TO PROVIDE ON- SALE/OFF-SALE MALT LIQUOR LICENSES FOR BREWERIES AND BREWPUBS, AND SECTION 4-1-11 TO PROVIDE SPECIFIC LICENSING CONDITIONS FOR THE ON-SALE/OFF-SALE OF MALT LIQUOR BY BREWERIES AND BREWPUBS, WITHIN THE CITY OF ALBERTVILLE THE CITY COUNCIL OF THE CITY OF ALBERTVILLE ORDAINS: Section 1. Chapter 1 Alcoholic Beverages, Section 4-1-4 Classification of Licenses, is hereby amended to read as follows: A. Intoxicating Liquor On-Sale Licenses: On-sale intoxicating liquor licenses may be issued only to hotels, clubs, restaurants, brewpubs (licensed under Minn. Stat. 340A.301, Subd. 1.(d).), and exclusive liquor stores, and shall permit on-sale of liquor only. I. Brewery Taproom License: A brewery taproom license authorizes on-sale of malt liquor produced by the brewer for consumption on the premises of or adjacent to one brewery location owned by the brewer. This license may be issued to the holder of a brewer’s license under Minnesota Statute 340A.301, subd.6, clauses (c), (i), and (j). J. Brewery/Brewpub License for Off-Sale of Malt Liquor: A brewer’s off-sale license authorizes off-sale of malt liquor at a brewer’s licensed premises, which has been produced and packaged by the brewer. This license may be issued to brewers licensed under Minnesota Statute 340A.301 Subd.6, clause (c), (d), (i), or (j). Section 2. Chapter 1 Alcoholic Beverages, Section 4-1-11 Conditions of Licenses, is hereby amended to read as follows: L. Brewery Taproom License: 1) A brewer may hold only one (1) brewer taproom license, and may not have an ownership interest in a brewpub licensed under MN Statute 340A.301, subd.6, clause (d). 42 2) If the brewer holds a wholesale license, the brewer may not distribute more than 20,000 barrels or manufacture more than 25,000 barrels of its own brand of malt liquor annually. If an off-sale malt liquor license is also attained, the brewer may not manufacture more than 20,000 barrels annually. 3) The on-sale of malt liquor may only be sold Monday through Saturday, unless a Sunday sales license is attained, and during the hours that “on-sale” of liquor may be made. 4) A brewery must demonstrate compliance with all zoning ordinance standards pertaining to breweries with accessory taprooms. 5) All other provisions of this chapter shall be applicable to such licenses and licensees unless inconsistent with the provisions of this section. 6) Nothing in this section shall preclude the holder of a brewer taproom license from also holding a license to operate a restaurant at the taproom location. M. Brewery/Brewpub License for Off-Sale of Malt Liquor: 1) The amount of malt liquor sold at off sale may not exceed 500 barrels annually. 2) Off-sale of malt liquor shall be limited to the legal hours for off-sale at exclusive liquor stores in Albertville, and the malt liquor sold off-sale must be removed from the premises before the applicable off-sale closing time at exclusive liquor stores. 3) The malt liquor must be packaged in 64 ounce containers known as growlers and may have the following packaging requirements: a. Growlers must bear a twist-type closure, cork, stopper or plug. b. At time of sale, paper or plastic adhesive band, strip or sleeve shall be applied to the container and extend over the top of the closure, forming a seal. c. The band, strip or sleeve must bear the name and address of the brewer, and the must be identified as malt liquor, contain the name of the malt liquor, and bear the name and address of the brewer selling the malt liquor, and shall be considered intoxicating liquor unless labeled otherwise. 4) The brewer seeking the off-sale license shall not brew more than 20,000 barrels of its own brands of malt liquor annually. 43 5) A brewpub’s production of malt liquor for retail sales at on-or off-sale shall not exceed 3,500 barrels annually. 6) A brewer may only have one off-sale license. THIS AMENDMENT SHALL BE IN FULL FORCE AND EFFECTIVE IMMEDIATELY FOLLOWING ITS PASSAGE AND PUBLICATION Approved by the Albertville City Council the ___________________________, 2014. _________________________ Jillian Hendrickson, Mayor _________________________ Kimberly Olson, City Clerk