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<br />Request for Action <br /> <br /> <br />To Item Number <br /> <br />Mayor and City Council 7.7 <br />Agenda Section Meeting Date Prepared by <br /> <br />Public HearingsJuly 18, 2016Zack Carlton, Planning Manager <br />Item Description Reviewed by <br /> <br />City of Elk River Chris Leeseberg, Senior Planner <br /> <br /> <br />Ordinance Amendment Relating to <br />Reviewed by <br />Distilleries in Industrial and Commercial <br />Cal Portner, City Administrator <br />Zoning Districts <br /> <br />Action Requested <br /> <br />Adopt, by motion, the Ordinance Amendment to allow micro distilleries and cocktail rooms in the City <br />of Elk River. <br /> <br />Background/Discussion <br />Case No. OA 16-06 <br /> <br />In 2015, the City Council adopted an ordinance amendment to allow craft breweries and tap rooms in a <br />number of commercial and industrial zoning districts. This change was in response to the growing <br />industry within the state, and the city’s desire to attract new businesses. Since the adoption of that <br />ordinance, staff has been approached by a craft distiller to establish a distillery within the city. This <br />industry has not experienced the same level of growth as brewing, primarily due to federal regulations and <br />the barriers to entry, but the state and region have seen a significant increase in new operations in the last <br />few years. To allow, and encourage, a distiller to open a new business in Elk River, an amendment to our <br />zoning ordinance is required. <br /> <br />Analysis <br />Parking <br />Parking for micro distilleries and associated cocktail rooms will be reviewed using the manufacturing, <br />restaurant, or bar requirements as outlined in city ordinances. The parking requirements will be calculated <br />based on the associated areas within the facility. <br /> <br />Odor <br />Manufacturing processes, like distilling, can create noxious odors that may be detected beyond the <br />property lines of the facilities. However, staff has not found any evidence that small distilleries regularly <br />generate complaints based on odor. Depending on the proposed siting and scope of the operation this <br />could become an issue for neighbors, and for that reason staff recommends allowing them as a <br />conditional use. The potential for noxious odors occurs when the drying or rotting byproducts are not <br />properly disposed of. Provided the waste products are removed promptly, staff does not expect odor to <br />be an issue for a majority of facilities. <br /> <br /> <br /> <br /> <br />