HomeMy WebLinkAboutITEM V-CMemorandum
WASHINGTON
To: Planning and Community Development Committee
From: Hillary Taylor, Senior Planner
CC: Kevin Snyder, Director
Date: March 22, 2011
Re: Code Amendment to allow "Small Craft Breweries and Distilleries", request for
direction on scope of work
Background
The question of whether to allow small craft breweries was raised in October of last year.
Staff presented a memo at the October 11, 2010 PCD meeting and after a brief discussion
the committee asked staff to work on the definitions and come back for more discussion. The
committee stated that "there is support for microbreweries and brewpubs with certain limits as
defined by the code and zoning definitions to prevent a tavern-like setting where all types of
liquor is sold."
This is not a discussion of whether or not to allow traditional "brewpubs". Brewpubs are
already addressed in the city's code (ACC 18.04.185) and are centered on the sale of food
and beer, and as such are already permitted as restaurants in the commercial zones in the
City. By contrast, "small craft breweries" ONLY brew beer; they typically do not sell food, but
eventually could if they wanted to, but would then need a business license for a restaurant,
and would need to be in a zoning district that allows restaurants. The economic model of a
small craft brewery is a commercial enterprise creating a beverage product for sale, similar to
a small craft soda pop maker, cider press, or an orange juice maker. The industry of small
craft breweries and distilleries is controlled by the State of Washington Liquor Control Board.
Currently tasting rooms associated with "small craft breweries and distilleries" are not allowed
in any zoning districts in the City of Auburn.
History
In 1880 there were approximately 2,300 commercial breweries in the U.S., then federal
prohibition of alcohol sales known as "Prohibition" occurred 78 years ago, and coincided with
the greatest depression yet known in the country and occurred in between the two world
wars. Only about 160 breweries survived Prohibition and the Great Depression. Between
1950 and 1990 five brewers dominated the domestic product market.
Today, there is what is referred to as a "beer renaissance" which is all about choice, flavor
and the art of brewing. Trail blazers of the period from the '60s through the '80s include craft
or micro breweries such as Anchor Steam, Sierra Nevada, Yakima Brewing & Malting Co.
and Mendocino Brewing Co. Craft beer sales continue to grow at a rate of 50 percent per
year while mass-produced light lager sales have gone flat. It is anticipated that the strong
interest in craft brewing will continue.
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Discussion
As the Pacific Northwest is one of the major areas of barley production in the country, it is
expected that the support for small craft breweries and distilleries will remain. The industry
has an associated element of tourism, small business promotion and local economy of
buying and selling products. Staff would like to discuss the following four (4) questions (A-D)
at the March 28th Committee meeting:
A) Should the following definitions be used? Staff would like to propose that the
definition of a "brew pub" is not necessary if a new definition for a small craft brewery or
distillery is adopted. If a small craft brewery or distillery and a restaurant are both
allowed uses in a particular district then a brew pub model can be opened for business
and the regulation regarding the amount of floor area would be eliminated from our
regulations and the governing of the liquor license will be controlled by the State. This
would eliminate unnecessary regulation by the City of Auburn.
a. Tavern
A Tavern is currently defined by the ACC as follows:
18.04.895 "Tavern" means an establishment operated primarily for the sale of
wine, beer or other alcoholic beverages that may or may not include the service of
food as an accessory use.
b. Brewpub
A Brewpub is currently defined by the ACC as follows:
18.04.185 "Brew pub," also known as a "microbrewery," means an eating and
drinking establishment which includes the brewing of beer, ale or malt beverage
as an accessory use to a full-service restaurant. The amount of beverage
produced on the premises cannot be less than 240 barrels or exceed 2,400
barrels in any calendar year. No more than 30% of the product brewed may be
sold off-premises in either bottles or kegs. A loading and unloading area must be
provided for. A full service restaurant as defined by ACC 18.04.804 must occupy
at least 51 percent of the gross floor area of the brew pub and restaurant,
combined. Any brew pub that does not meet the requirements of this definition will
be considered a tavern as defined by ACC 18.04.895.
c. Small craft brewery or distillery
A small craft brewery or distillery is not yet defined by the ACC. The Washington
State Liquor Control Board defines the two uses as follows:
A small craft distillery (in state only) is for distillers producing 60,000 gallons or
less of spirits with at least half of the raw materials used in the production grown in
Washington. Allows a craft distillery to contract distilled spirits for, and sell distilled
spirits to, holders of distillery licenses, manufacturer's licenses and grower's
licenses.
A microbrewery or a small craft brewery license is to manufacture beer in
Washington State. The license allows a microbrewery to sell beer of its own
production at retail for on and off-premises consumption, and to act as a distributor
for beer of its own production.
d. Tasting room
A tasting room is not yet defined by the ACC. The Washington State Liquor
Control Board defines the use as follows:
A tasting room is an additional location separate from the
production/manufacturing site, where the licensee may serve by the glass for on
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premise consumption, sample and sell at retail for off-premises consumption wine
or beer of its own production. The license limits the tasting rooms allowed to two
additional locations per licensed production/manufacturing facility.
B) Based on these definitions, in which zoning districts should these uses be
allowed? Please discuss the proposed chart:
Zoning district
Definition
M1 M2
C1
C2
C3
DUC
Tavern
X P
X
X
P
X
Small craft brewery or distillery
P P
P
P
P
P
Tasting room
P P
P
P
P
P
Brewpubs *
P P
P
P
P
P
X = not allowed
P = allowed in the zoning district
*(could be eliminated if both small craft beverage manufacturing and restaurants are
allowed in all of the zoning districts.)
C) Should tasting rooms be allowed at separate locations, or only at the same
premises of the manufacturing and production facility? The Mosby Farm
ordinance proposal asks for tasting rooms to be allowed at a separate location.
One option for the definition which does not intrinsically link the sale of items to the
production/manufacturing license:
18.04.894 A "tasting room" is an establishment that allows customers to taste samples
of wine, beer or spirits and has a state of Washington issued liquor license as a tasting
room. A tasting room may also include wine, beer, or spirits and related items sales,
marketing events, special events, entertainment, and/or food service. Establishments
that are classified by the state liquor board as bars, nightclubs, taverns or restaurants
are not included in this classification.
A second option for the definition which intrinsically links the sale of items to the
production/manufacturing license:
18.04.894 A "tasting room" means an additional location separate from, or on the
same site as, the production/manufacturing site, that allows customers to taste by
the glass samples of wine, or beer, or other alcoholic beverage and has a State of
Washington issued license to operate a tasting room. A tasting room may include
wine, or beer, or other alcoholic beverage for on premises sampling and for sale at
retail for off-premises consumption wine or beer, or other alcoholic beverage of its
own production.
D) A small craft brewery or distillery is a manufacturing operation. Should
these uses be allowed in the DUC zone? Or should only the tasting room use be
allowed?
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