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A brewpub can't distribute their house -made products to other retailers or wholesalers. They may only <br />sell their product for on -sale consumption (drinking on the premises) or they can get a Brewpub / <br />Microbrewer Off -Sale License through the city to sell only their product to their customers from their <br />pub in the form of a growler. This type of business is similar to a Granite City. Off -sales are limited to <br />500 barrels per year and hours would be limited to the same hours of the liquor stores. <br />Expansion of Temporary On -sale Intoxicating License <br />This is not a new license and it currently is limited to club, charitable, religious, or non - profit <br />organizations. State law has expanded to allow brewers, who manufacture fewer than 3,500 barrels of <br />malt liquor in a year (taprooms, brewpubs, or microbrewers) to get this license. The brewer has to be the <br />sponsor of the social event being held. This allows the brewer to sell on -sale intoxicating liquor (products <br />such as rums and vodkas that they don't manufacture). And the event could be held at other locations in <br />the city, similar to how the Rotary may get a license for the annual wine - tasting event. <br />Zoning <br />Current ordinances do not permit brewpub, taproom, farm winery, or microbrewery uses in any zoning <br />district. The following changes are necessary to permit the new businesses in the city. <br />Brewing <br />Staff s current recommendation includes adding three types of brewing establishments to the city <br />ordinances. Brewpubs brew on site and include a restaurant or food service, taprooms brew beer on site <br />and may or may not include food service, and microbreweries are of an industrial nature and primarily <br />brew beer for off -site distribution; however they may sell limited amounts on -site. The off -sale of beer <br />will be permitted via growlers (64 -ounce containers) depending on the specific liquor license held. <br />Staff recommends allowing brewpubs as a permitted use in the C -1 (Central Commercial), C -3 (Highway <br />Commercial), and DD (Downtown) zoning districts. Taprooms are recommended as permitted and <br />conditional uses in the C -1, C -3, and DD districts depending on production volume. Microbreweries are <br />recommended as a permitted use in the I -2 (Medium Industrial) district, and as a conditional use in the I- <br />1 (Light Industrial) and BP (Business Park) districts. Microbreweries will also be permitted to construct a <br />taproom with a conditional use permit and in accordance with all state statutes. Production for all uses <br />will be limited by statute and the type of license the brewer holds. <br />Wine Making <br />Staff recommends allowing wineries in the R -1a zoning district. A winery would be a permitted use when <br />a retail component is not included and a conditional use when retail sales of any type are introduced. By <br />only allowing on -site sales with a conditional use permit, the city has an opportunity to evaluate and <br />mitigate traffic and other impacts within a residential district, protecting the character of the area. <br />Financial Impact <br />An amendment to the fee schedule will be brought forward to Council at a future meeting in order to <br />include fees for the new license types. <br />Attachments <br />• Ordinance amendment to allow new types of liquor licenses <br />• Ordinance amendment amending the zoning ordinance <br />N: \Public Bodies \Agenda Packets \01 -20- 2015 \FINAL \LASERFICHE \x7.1 sr Liq Ord.docx <br />