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2014-10-14 PC Packet PLANNING & ZONING COMMISSION MEETING Tuesday, October 14, 2014 7:00 PM 1. CALL TO ORDER - ROLL CALL – ADOPT AGENDA 2. MINUTES August 12, 2014 Planning and Zoning Meeting (pages 1-4) 3. PUBLIC HEARINGS a. Public Hearing to Consider a Sign Code Text Amendment Pertaining to Advertising Devices, Definitions and Performance Standards (pages 5-24) b. Public Hearing to Consider an Amendment to the Albertville Zoning Code and Liquor Licensing to Establish Performance Standards for Breweries and Taprooms and to Allow Them Within the City’s Commercial Zoning Districts by Conditional Use (pages 25-37) 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, AUGUST 12, 2014 1. CALL TO ORDER: Acting Chair Totman called the meeting to order at 8:00 p.m. 2. ROLL CALL: Present: Chair Brian Totman, Commissioner Jeffrey O’Brien, Commissioner Natalya Lindberg, Commissioner Mark Barthel and City Council Representative Dan Wagner. Absent: Commissioner Dale Edgren. Staff Members Present: Alan Brixius and Sue Schwalbe Others Present/Public: Nyles Gentz, 5233 53rd Circle NE; Tonya Hosch, and Tim Praught, 11568 52nd Street NE; Brian Fero, 6575 Labeaux Avenue NE; Jim Omann, Omann Brothers Paving, 6551 Labeaux Avenue NE 3. APPROVAL OF AGENDA O’Brien moved, second by Barthel to approve the agenda as submitted. Motion carried unanimously. 4. APPROVAL OF MINUTES O’Brien moved, second by Lindberg to approve the minutes of the July 8, 2014 Planning Commission meeting. Motion carried unanimously. 5. 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. Alan Brixius presented the planning report dated August 6, 2014 to the Commission for their consideration. 1 City of Albertville Planning and Zoning Commission Minutes August 12, 2014 Page 2 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 intended to be used to store materials and equipment related to the principal use. Commissioner Barthel questioned the staggering of the trees and feels that will be sparse. Omann Brothers Representative then requested the Commission require more trees and less fencing as fencing slats are too hard to maintain. Brixius stated slats are less expensive and recommended a new landscape plan be submitted. Chair Totman then opened the Public Hearing. As no comments were made, the Public Hearing was closed. Edberg moved, second by Barthel to approve the request from Omann Brothers Paving for a conditional use permit for expanding outdoor storage at 6551 Labeaux Avenue NE, with staff recommended 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. 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. Motion carried unanimously. 2 City of Albertville Planning and Zoning Commission Minutes August 12, 2014 Page 3 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. Alan Brixius presented the planning report dated August 6, 2014 to the Commission for their consideration. 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. Chair Totman opened the public hearing. As no comments were made the Public Hearing was closed. Edberg moved, second by Lindberg to approve the request 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 with the conditions outlined in the August 6, 2014 planning report. Motion carried and roll call vote: Edgren: Yes O’Brien: Yes Lindberg: Yes Barthel: Abstain Motion carried. Commissioner Barthel abstained as he is employed by Federated Co-ops. c. Public Hearing to Consider a Request from 5233 53rd Circle NE For a Fence Height Variance, Albertville. Alan Brixius presented the planning report dated August 7, 2014 to the Commission for their consideration. Nyles Gentz, owner of the single family homes 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. Chair Totman then opened the Public Hearing. Nyles Gentz was available for questions or comments. Abutting neighbors were also present who indicated they have had the same issues with the same neighbor. 3 City of Albertville Planning and Zoning Commission Minutes August 12, 2014 Page 4 The Public Hearing was closed. Edberg moved, second by Lindberg, to approve the request from 5233 53rd Circle NE for a Fence Height Variance with staff recommended condition: 1. Construction drawings must be submitted by a licensed engineer. Motion carried unanimously. d. Public Hearing to Consider Zoning Amendments to Address the Location and Performance Standards of Breweries and Accessory Taprooms in Albertville. Alan Brixius presented the planning report dated August 7, 2014 to the Commission for their consideration. 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. Commissioner Barthel questioned staff if licensing and production issues will be handled by the State. Brixius stated yes and only the land use issues will be handled by the City. Edberg moved, second by Lindberg, to table the request until the next scheduled Planning Commission meeting. Motion carried unanimously. 6. OTHER BUSINESS None. O’Brien moved, second by Barthel to adjourn meeting at 9:15 p.m. _____________________________ Sue Schwalbe, Recording Secretary 4 5 PLANNING REPORT TO: Adam Nafstad FROM: Alan Brixius DATE: October 8, 2014 RE: Albertville – Nelson Billboard Permit Appeal FILE NO: 163.06 – 14.05 BACKGROUND In June 2014, City staff met with Sheila DeVine of Warnert Commercial Real Estate LLC to discuss options for the construction of a billboard on Block 1, Lot 1, Field Plaza 2nd Addition (the lot west of Space Aliens). In that meeting, we discussed whether this site qualified as a billboard site under Albertville’s Sign Ordinance. The discussion resulted in a follow up email dated June 23, 2014 (Exhibit C) that outlines staff findings that the site does not meet City Code standards. On July 21, 2014, the City received a permanent sign permit application to construct a dynamic billboard on Block 1, Lot 1, Field Plaza 2nd Addition. After a phone discussion with the applicant, City staff issued an August 7, 2014 letter denying the sign permit finding that the site is not eligible for a billboard (Exhibit D). On August 22, 2014, the City received a request for Council appeal of the sign permit denial (Exhibit E). The City Council, upon hearing of the appeal on September 15, 2014, directed City staff to re-examine the Albertville Sign Code pertaining to billboards and effectuate an ordinance change to accommodate this billboard request. In encouraging the ordinance change, the Council noted the following findings: 1. The City’s Comprehensive Plan promotes the improvements to CSAH 19 and Interstate 94 to provide for a full interchange. The City has secured right-of-way to facilitate these improvements. The subject site will qualify as a billboard site when these improvements are in place. 2. Through the Sign Code performance standards, the City may only have three eligible billboard sites remaining in the City. 6 3. The construction of dynamic billboards will provide opportunities to promote community businesses and community events. Attached for reference: Exhibit A: Billboard Analysis Map Exhibit B: Site Location Map Exhibit C: Email Correspondence from Sheila DeVine Exhibit D: Denial Letter, August 7, 2014 Exhibit E: Appeal Letter, August 22, 2014 Exhibit F: Draft Ordinance, October 8, 2014 Exhibit G: Applicant Letter, September 18, 2014 ISSUES AND ANALYSIS Section 10-7-6 of the Albertville Sign Ordinance governs advertising devices (billboards). Provision 10-7-6.A.1 states: “Advertising devices shall only be allowed within one hundred feet (100') ("adjacent area" as defined in section 10-7-2 of this chapter) on either side of Interstate Highway 94, according to the provisions of this subsection.” Section 10-7-2, Definitions defines adjacent area as follows: “ADJACENT AREA: A strip of land one hundred feet (100') in width immediately adjacent to and along and parallel to the right of way, except for off ramps, takeoff ditches or similar areas where the area shall be measured from the prolongation of the normal right of way.” As stated in the City’s letter of denial, City staff made the following findings for denial: 1. The site in question is not immediately adjacent to the Interstate right-of-way. The site is separated from the Interstate by property owned by the City of Albertville. Without this adjacency, the site will not be eligible for a billboard. 2. A second issue exists relating to setbacks. Section 10-7-6 requires advertising devices to meet the minimum setback of the base zoning district. The site is zoned B-3 which requires a 20 foot rear yard setback. The City-owned property to the north has a depth of 88 feet. Even if the property were considered immediately adjacent to the Interstate right-of-way, the 88 foot depth of the City property and the 20 foot setback required on the property places the proposed sign more than 100 feet from the Interstate right-of-way outside of the defined adjacent area. 7 The applicant’s appeal suggests that approval of the sign should be granted on the following grounds: 1. The ordinance does not make reference to the adjacency requirement and the adjacent areas by definition may include multiple tiers of lots provided they are within 100 feet of the Interstate right-of-way. 2. The City-owned right-of-way that lies between the applicant’s lot and the Interstate 94 right-of-way is intended to be used as Interstate right-of-way with the development of Phase 2 of the Interchange improvements and should be considered part of the Interstate 94 right-of-way. The applicant cites Section 100.3 of the Zoning Code relating to the Comprehensive Plan as the basis for requiring the City to approve the appeal and issue the sign permit as below: “100.3: RELATION TO COMPREHENSIVE MUNICIPAL PLAN: It is the policy of the city that the enforcement, amendment, and administration of this ordinance be accomplished with due consideration of the recommendations contained in the city comprehensive plan as developed and amended from time to time by the planning commission and city council of the city. The council recognizes the city comprehensive plan as the policy to regulate land use and development in accordance with the policies and purpose herein set forth. (Ord. 1988-12, 12-19-1988)” NEW ORDINANCE LANGUAGE Exhibit F is the proposed draft ordinance for Planning Commission and City Council consideration. The proposed changes affect Section 10-7-2, Definitions and Section 10-7-6, Advertising Devices. Section 10-7-2, Definitions. In revising the definition of adjacent area, staff is working to achieve the following objectives: 1. The new definition includes the site subject to the appeal within the adjacent area definition. This site is currently separated from the existing freeway right-of-way by City-owned right-of-way. While the City-owned right-of-way is intended to facilitate future improvements to the CSAH 19/Interstate 94 access, it currently has the existing site lying outside of the adjacent area and not eligible for a billboard until the Interstate 94 improvements are completed. 2. The definition clearly eliminates properties that do not physically abut the Interstate or City-owned rights-of-way for Interstate access improvements from the adjacent area. These properties are not eligible for billboards. 8 3. The definition also requires the entire billboard to be located within 400 feet of the midpoint of the center median of the two opposing traffic lanes. This measuring point, as illustrated below, provides a constant point of measurement. The 400 foot width is inclusive of all the existing billboard signs. The changes to the definition of adjacent area is intended to add clarity for the application of the billboard regulations. The impact of the changes include the subject site as an eligible billboard site. Based on this ordinance change and current sign standards, the City may have three eligible sites available in the City (see Exhibit A). Section 10-7-6, Advertising Devices. The changes to the advertising devices section of the Albertville Sign Code include: 1. Repeal of the previous 100 foot adjacent area width reference in favor of the new adjacent area definition. 2. Acknowledgement and waiver of damages resulting from future improvements to the CSAH 19/Interstate 94 bridge, ramps and traffic lanes. The City has approved conceptual plans for the CSAH 19/Interstate 94 ramps and C-D Road, however, final construction plans are not complete. In allowing the construction of a sign at this site, the applicant risks some obstruction sight lines to a billboard from future improvements to CSAH 19/Interstate 94. In allowing the billboard to be installed prior to Interstate improvements, the City will require the waiver of potential damages. 3. The City, in accommodating billboards, wishes to enhance their overall appearance. In this regard, the final amendment requires an enhanced architectural treatment of the billboard supports. 9 CONCLUSION AND RECOMMENDATION The attached Albertville Sign Code amendment provides a clear definition of adjacent area and establishes performance standards to improve billboard appearance. Based on these factors, staff is recommending approval of the Sign Code amendment. With this approval of the Sign Code amendment, Mr. Nelson may proceed with the billboard permit for the property at Block 1, Lot 1, Field Plaza 2nd Addition with the submission of plans that demonstrate: 1. Location of the billboard entirely within the defined adjacent area and meets the zoning district setbacks. 2. The support structure meets the established architectural standards. 3. The applicant provide the written acknowledgement and waiver of damages from future CSAH 19/Interstate 94 access improvements. The applicant has also offered free community advertising on the new sign (see Exhibit G). The applicant’s attorney will present a user agreement to the City Council. c: Kim Olson Sue Schwalbe Paul Heins Mike Couri Stephen Nelson Patrick Cole, Larkin Hoffman Z 0 1,000 2,000 3,000 4,000500Feet Albertville Billboard Study A B C D E F G H I J K ML N O P Q R S T U V W X Y AA BB / Prolongation of the normal ROW Adjacent Area: A strip of land 100 ft in width immediately adjacent to and along and parallel to the right of way, except for off ramps, takeoff ditches of similar areas where the area shall be measuredfrom the prolongation of the normal right of way. Source: Wright County, DNR, & Northwest Associated Consultants. Date: October 2, 2014.Note: For planning purposes only. 400 ft. buffer from center median Questionable 1,000 ft spacing City Limits Parcels 1,000 ft spacing EXHIBIT A10 Wright County, MN Date Created: 9/9/2014 Parcel ID 101R Sec/Twp/Rng n/a Property Address Alternate ID n/a Class n/a Acreage n/a Owner Address n/a District n/a Brief Tax Description n/a (Note: Not to be used on legal documents) Last Data Upload: 9/9/2014 7:45:38 AM 451 ft Overview Legend Roads CSAHCL CTYCL MUNICL PRIVATECL TWPCL City/Township Limits c t Parcels EXHIBIT B 11 From: Sheila DeVine [mailto:sdevine@warnert.com] Sent: Thursday, July 03, 2014 10:23 AM To: Alan Brixius Subject: RE: Space Aliens Second lot - Billboard Good morning Al, Can you tell me when you think the right of way might finally be developed? Of course, the owners are asking me as well as the other prospect I have. If they put their business on this site… when will the road come through… as they will want to take it into consideration for their building and what it will do to their business once it is constructed and in use. Crystal ball question, I know. Just looking for your personal opinion…. SHEILA L. DE VINE WARNERT COMMERCIAL REAL ESTATE, LLC 320.492.3230 Cell www.warnertcommercial.com PEOPLE DOING BUSINESS WITH PEOPLE From: Alan Brixius [mailto:abrixius@nacplanning.com] Sent: Monday, June 23, 2014 11:39 AM To: sdevine@warnert.com Cc: anafstad@ci.albertville.mn.us; mike@couriruppe.com; sschwalbe@ci.albertville.mn.us; kolson@ci.alb ertville.mn.us Subject: Space Aliens Second lot - Billboard Sheila: I tried to phone you last week regarding this matter but was unsuccessful. A few weeks ago we met and discussed the possibility of locating a billboard on the second Space Alien Lot, in researching this location we find that it meets the 1000 foot setback between the billboards on the south side of the interstate. However, the site fails to meet the Adjacent Area definition of the Albertville Sign Ordinance, that requires any billboard to fall in a strip of land 100 feet in width immediately adjacent to and along and parallel to the Interstate right of way. Currently there is city street right of way that separates the Space Alien lot from the interstate. While this right of way will eventually be dedicated as Interstate Right of Way when the County Road 19 ramp is installed, until this happens the site in question is not eligible for a billboard. City Staff asked the council if they would grant any exception for the Space Alien site or if the City would allow the bill board on the City owned right of way. The council was not receptive to either of these options due to the following concerns. 1. The Council is not inclined to place the billboard on City right of way and take away this future opportunity from the private property owner. 2. The Council is not willing to waive the Adjacent Area provision, not knowing what the future plans for the County 19 ramp may be with regard to ramp location or bridge height. We are concerned that the future ramp design / bridge design may interfere with the billboard location, sight lines or other operation features that may result in conflicts between the city and EXHIBIT C12 the sign owner. We do not want to deal with claims of damages or takings when the ramp is constructed. Sheila, in summary, this site may be eligible for billboard in the future once the right of way is dedicated and the ramp is constructed. However, it does not meet code requirements now. Please call me if you have any further question on this matter. Alan Brixius, AICP Northwest Associated Consultants, Inc. 4800 Olson Memorial Hwy, Suite 202 Golden Valley, MN 55422 Phone: 763-231-2555 Fax: 763-231-2561 abrixius@nacplanning.com EXHIBIT C13 August 7, 2014 Mr. Stephen Nelson 7656 128th Street W. Apple Valley, MN. 55124 Re: Billboard request for 11200 60th Street NE. Job No: 163.05 General Dear Mr. Nelson; The City of Albertville has received your application for a billboard to be constructed at property located at 11200 60th Street NE. in Albertville. Unfortunately upon review of your application against the Albertville Sign Code we find that the site does not qualify as a billboard site, based on the following findings. Section 10-7-6 Advertising Devices states: “Advertising devices shall only be allowed within one hundred feet (100’) (“adjacent area as defined in section 10-7-2 of this chapter) on either side of Interstate Highway 94, according to the provisions of this subsection. And Section10-7-2 Definitions: Defines Adjacent Area as follows: Adjacent Area: A strip of land one hundred feet (100’) in width immediately adjacent to and along and parallel to the right of way except for off ramps, takeoff ditches or similar areas where the area shall be measured for the prolongation of the normal right of way. The site in question is not immediately adjacent to the interstate right of way. The site is separated from the Interstate by property owned by the City Albertville. Without this adjacency the site will not be eligible for a billboard. A second issue that exists relates to setbacks. Section 10-7-6 requires advertising devices to meet the minimum setback of the base zoning district. The Site is zoned B-3 which requires a 20 foot rear yard setback. The city owned property to the north has a depth of 88 feet. Even if your property were considered immediately adjacent to the interstate right of way, the 88 foot depth of the city property and the 20 foot setback required on your property places your proposed sign more than 100 feet from the Interstate right of way. EXHIBIT D14 2 Due to the aforementioned conditions, we must deny your sign and building permit application for 11200 60th Street in Albertville. Per our phone conversation, this is an administrative denial and you may pursue an appeal of this decision to the Albertville City Council per Chapter 600 of the Albertville Zoning Code. You can find both the city code and development applications forms at the city of Albertville’s website www.ci.albertville.mn.us If you have any further questions regarding this permit or the appeal application or process please contact me at your convenience. Albertville City Planner, Alan Brixius, AICP EXHIBIT D15 EXHIBIT E16 EXHIBIT E17 EXHIBIT E18 EXHIBIT E19 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA DRAFT 10/8/14 ORDINANCE NO. 2014-_____ AN ORDINANCE AMENDING CHAPTER 7, SIGN REGULATIONS OF THE ALBERTVILLE CITY CODE PERTAINING TO SECTION 10-7-2 DEFINITIONS OF ADJACENT AREA AND SECTION 10-7-6 ADVERTISING DEVICES THE CITY COUNCIL OF THE CITY OF ALBERTVILLE ORDAINS: SECTION 1. Chapter 7, Section 10-7-2 Definitions of the Albertville Sign Code is hereby amended to read as follows: Adjacent Area: A strip of land one hundred feet (100’) in width immediately adjacent to and along and parallel to the right-of-way, except for off-ramps, takeoff ditches, or similar areas where the area shall be measured form the prolongation of the normal right-of-way. For the purpose of Section 10-7-6 of this Ordinance, adjacent area shall be defined as a strip of land that is immediately adjacent and parallel to Interstate 94 through Albertville and meets both of the following criteria: 1. The adjacent area shall only include land parcels or lots that directly abut the Interstate 94 right-of-way, or City-owned right-of-way intended for future interstate access improvements, otherwise known as CSAH 19/Interstate 94 and CSAH 37/Interstate 94 interchange improvements. Parcels acquired solely for drainage and utility or ponding purposes shall not be considered an adjacent area. Parcels that do not directly abut the aforementioned rights-of-way are not within the adjacent area. 2. The adjacent area shall be limited to a strip of land four hundred feet (400’) in width measured from the midpoint of the center median between the opposing traffic lanes of Interstate 94 and extending out either sides of Interstate 94 (see graphic below). EXHIBIT F20 SECTION 2. Chapter 7, Section10-7-6.A.1 Advertising Devices is hereby amended to read as follows: 10-7-6: ADVERTISING DEVICES: A. General Standards: Advertising devices shall comply with the standards in this subsection: 1. Advertising devices shall only be allowed within one hundred feet (100’) the adjacent area, as defined in Section10-7-2 of this Chapter. , on either side of Interstate 94, according to this subsection. SECTION 3. Chapter 7, Section 10-7-6.A. General Standards is hereby amended to add the following language: 10. Advertising devices shall have the vertical support structure of the sign (such as pole) concealed with architectural embellishments consisting of natural stone, brick, masonry panels, or stucco over eighty (80) percent of the exterior face on all sides of the structure. 11. No sign permit to erect an advertising device on parcels or lots that are abutting City-owned right-of-way intended for future interstate access improvements, shall be issued unless an acknowledgement and waiver of future damages is first signed by the applicant and all property owners and submitted to the City. Said acknowledgement and waiver shall be in the form approved by the City Attorney, and shall acknowledge that future construction of CSAH 19/Interstate 94 and CSAH 37/Interstate 94 interchange improvements may impact the visibility of the proposed device/sign. The acknowledgement and waiver shall require the applicant and property owners to hold the City harmless and waive all damage claims arising as a result of such improvements, including, but not limited to, claims arising from the obstruction of the view of any advertising device installed on the permitted property pursuant to a sign permit issued by the City. Said acknowledgement and waiver shall not apply to damages resulting from the physical occupation of the applicant’s real property by the City. Said acknowledgement and waiver shall be submitted to the City with the application for a sign permit. Failure to submit such acknowledgement and waiver shall result in a denial of the requested sign permit or the refusal of the City to process the application due to its incomplete status. EXHIBIT F21 THIS AMENDMENT SHALL BE IN FULL FORCE AND EFFECTIVE IMMEDIATELY FOLLOWING ITS PASSAGE AND PUBLICATION. Approved by the Albertville City Council this ____ day of ___________ 2014. __________________________ Jillian Hendrickson, Mayor Attest: ___________________________ Kimberly A. Olson, City Clerk EXHIBIT F22 EXHIBIT G23 EXHIBIT G24 25 MEMORANDUM TO: Adam Nafstad FROM: Alan Brixius/Michelle Barness DATE: August 7, 2014 / Revised October 8, 2014 RE: Albertville – Brewer Taproom Ordinance FILE NO: 163.05 – 14.09 BACKGROUND On August 12, 2014 the Planning Commission held a public hearing and discussed the topic of permitting breweries in the community. The Planning Commission continued the public hearing to allow additional public input. The attached draft ordinance includes the Planning Commission’s suggestions from the August meeting. 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: 26 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: 27 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. 28 • 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, 29 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. 30 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 31 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA DRAFT 10/8/14 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 2900.2: Declaration of Conditions 2900.3: Requirements; General Provisions City of Albertville County of Wright Ordinance No. 2014 - ___ Commercial Breweries Page ___ 32 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, 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 conditional 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 twenty-five thousand (25,000) barrels annually and distribution may not exceed twenty thousand (20,000) barrels annually. 2. A brewery with a license for off-sale of malt liquor: Total production may not exceed twenty thousand (20,000) barrels annually, and liquor sold off-sale may not exceed five hundred (500) barrels. 3. A brewpub: Total retail sales at on-or-off sale may not exceed three thousand five hundred (3,500) barrels per year, and liquor sold off-sale may not exceed five hundred (500) barrels. City of Albertville County of Wright Ordinance No. 2014 - ___ Commercial Breweries Page ___ 33 4. 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 twenty-two (22) feet in length. In the absence of off-street loading, the City 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: City of Albertville County of Wright Ordinance No. 2014 - ___ Commercial Breweries Page ___ 34 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.) 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 this ______ day of ______________, 2014. _________________________ Jillian Hendrickson, Mayor ATTEST: _________________________ Kimberly A. Olson, City Clerk 35 CITY OF ALBERTVILLE COUNTY OF WRIGHT STATE OF MINNESOTA DRAFT 10/8/14 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). City of Albertville County of Wright Ordinance No. 2014 - ___ Breweries License Page ___ 36 2) If the brewer holds a wholesale license, the brewer may not distribute more than twenty thousand (20,000) barrels or manufacture more than twenty-five thousand (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 twenty thousand (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 five hundred (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 sixty-four (64) ounce containers known as growlers or in seven hundred fifty (750) milliliter bottles, and must 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 twenty thousand (20,000) barrels of its own brands of malt liquor annually. City of Albertville County of Wright Ordinance No. 2014 - ___ Breweries License Page ___ 37 5) A brewpub’s production of malt liquor for retail sales at on-or off-sale shall not exceed three thousand five hundred (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 this _____ day of ______________, 2014. _________________________ Jillian Hendrickson, Mayor ATTEST: _________________________ Kimberly A. Olson, City Clerk