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HomeMy WebLinkAboutITEM IV-A CITY OF Memorandum * WASHINGTON To: Planning Commission From: Hillary Taylor, Senior Planner CC: Kevin Snyder, AICP, Planning and Development Director Date: April 28, 2011 Re: Proposed Code Amendment to allow "Small Craft Breweries and Distilleries" Backaround The question of whether to allow small craft breweries was raised at the Planning and Community Development Committee (PCDC) at their October 11, 2010 meeting. After a brief discussion, the Committee asked staff to work on the definitions and come back for more discussion. Staff revisited this proposal with the PCDC at their March 28, 2011 meeting. The Committee gave staff direction as to which definitions for small craft breweries and distilleries should be used. The Committee preferred to keep the definitions similar to the definitions adopted by the State Liquor Control Board. Direction was also provided on which 00"1 definitions for a tasting room should be used. The Committee preferred to intrinsically link the tasting room element to a manufacturing production element. Based on these definitions, the PCDC provided staff with direction on which zoning districts should these uses be allowed. The Committee agreed that small craft breweries and distilleries and tasting rooms should be allowed in commercial and manufacturing zones and stated that tasting rooms should be allowed at separate locations from the manufacturing/production facility. The Committee was specifically asked if these uses should be allowed in the Downtown Urban Center (DUC) zone, and they agreed that if the use was clearly defined to not be a tavern like setting, that the uses should be allowed in the DUC zone. History 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. 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. Page 1 of 2 AUBURN * MORE THAN YOU IMAGINED Discussion Staff proposes to amend the zoning ordinance to allow small craft breweries and distilleries and tasting rooms in the commercial, manufacturing, and downtown zones in the City of Auburn. Staff proposes to amend Section 18.04 to include definitions for a small craft brewery or distillery and a tasting room. Staff proposes to eliminate the definition of brew pub as the definition will no longer be necessary. Staff proposes to amend the following zoning districts to allow small craft breweries, distilleries, and tasting rooms: Section 18.26 C1 Light Commercial, Section 18.28 C2 Central Business District, Section 18.29 Downtown Urban Center, Section 18.30 C3 Heavy Commercial, Section 18.32 M1 Light Industrial, and Section 18.34 M2 Heavy Industrial. Proposed Definitions: A small craft distillery 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 breweryy 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. 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. At the May 17, 2011 Planning Commission meeting, staff would like feedback from the Commission on the proposed amendments. The public hearing before the Commission is scheduled for June 7, 2011. Page 2 of 2 AUBURN* MORE THAN YOU IMAGINED