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City of <br />Elk <br />River <br />Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />7.1 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Public Hearings <br />January 20, 2015 <br />Tina Allard, City Clerk <br />Zack Carlton, Planner <br />Item Description <br />Reviewed by <br />Ordinance Amendments for Zoning and Liquor <br />Cal Portner, City Administrator <br />Licensing Regarding Taproom, Brew Pubs, <br />Reviewed by <br />Wineries, and Similar Businesses <br />Ordinances reviewed by Peter Beck <br />Action Requested <br />1. Adopt, by motion, an ordinance amendment incorporating new license types in the liquor licensing <br />section of the city code. <br />2. Mayor Dietz to open and close the public hearing for the zoning ordinance amendment. <br />3. Adopt, by motion, an ordinance amendment modifying the city's zoning ordinance to define and <br />permit brewpubs, taprooms, farm wineries, and microbreweries. <br />Background /Discussion <br />The state legislature has made law changes allowing cities to issue new types of liquor licenses if adopted <br />into the city code. <br />Taproom and Cocktail Room Licenses <br />Cities in Minnesota can allow taprooms and cocktail rooms with a license. Think of these types of <br />businesses being similar to wineries that have a tasting room versus a bar. The room is an accessory use <br />to the manufacturing of the product. Taprooms are for malt liquor, such as beer, and cocktail rooms are <br />for distilled spirits, such as rums and vodkas. These types of businesses may only sell their own product. <br />Surly is an example of a taproom. City Code already allows for the licensing of taprooms. Tbis ordinance <br />amendment will allow for cocktail rooms. <br />Small Brewer's Off Sale License (Sale of Growlers) <br />Taprooms can sell growlers for patrons to take -home for consumption. These products are a half -gallon <br />in size. This ordinance amendment will allow for the off sale of growlers. Off -sales are limited to 500 <br />barrels per year and hours would be limited to the same hours of the liquor stores. <br />Cocktail rooms are not allowed to sell their product for take -home consumption. Patrons may visit a <br />cocktail room to try a product, but that product can only be sold to a wholesaler, who then distributes to <br />a retailer, such as a liquor store. <br />Brewpubs /Microbrewer Off -Sale License (Sale of Growlers) <br />There is no legislative definition for a brewpub. Staff has defined it as a state - licensed brewer under State <br />Statute 340a.301 Subd. 6(d) and having a restaurant. A brewpub is required to get an on -sale intoxicating <br />license from the city. <br />PV0WIBEO BI <br />INAMUR <br />