HomeMy WebLinkAboutA004 - Council Action Form dated April 14, 2015 s
ITEM#: 61
DATE: 4/14/15
COUNCIL ACTION FORM
SUBJECT: ZONING ORDINANCE TEXT AMENDMENT PERMITTING SMALL
PRODUCTION FACILITIES OF ALCOHOL BEVERAGES IN CERTAIN
COMMERCIAL ZONES, INCLUDING BREWERIES
BACKGROUND:
The owner of the Olde Main Brewing Company (GSS BB, LLC) has requested a text
amendment to allow for the construction of a production brewery facility in conjunction
with an event center and tap room in the Highway Oriented Commercial (HOC) zoning
district. (See Attachment A) The applicant desires to move its brewery facility from the
current downtown location to allow for expansion of production to serve a wider
distribution area and create a large event gathering facility.
The request centers upon allowing for the manufacturing and production use of a
"brewery" in a commercial zoning district. Article 5 of Chapter 29 describes and
categorizes types of uses for listing within each zoning district. Ames limits principal
manufacturing uses to its industrial zoning districts. The City allows for
manufacturing and production uses within commercial areas when they are for
the purpose of producing materials for use or resale on site and as an accessory
use to the principal use. The current Olde Main restaurant and brewery and the new
Torrent Brewing Company operate under this definition at their respective downtown
locations. The applicant's other requested uses of event center and service of beer are
allowed as Entertainment, Restaurant, and Recreation uses within the HOC zoning.
Olde Main Brewing made a similar request in 2011 to allow for an event center use with
a brewery to be located in a General Industrial zoning district. The City approved the
amendment to the General Industrial zoning district to allow for event center use in
conjunction with a manufacturing use. The applicant did not proceed with the intended
project upon approval of the text amendment by the City Council.
In discussion with staff, the applicant indicates a desire to build and operate a 25,000
square foot facility that could produce between 15,000 to 25,000 barrels of beer
annually. A barrel of beer equates to approximately 31 gallons. This would be five to
ten times the current production capacity of Olde Main. To put this in another context,
the Brewers Association trade group estimates that in 2013 the state of Iowa produced
just less than 30,000 barrels of beer while the state of Minnesota produced over
300,000 barrels. There are no well known national or regional breweries in Iowa, while
Minnesota is the home of Summit Brewing and Surley Brewing, whom are two larger
craft brewers that exceed production of 100,000-200,000 barrels annually, in addition to
the large number of smaller microbreweries. Nationally, there was approximately 196
million barrels of beer produced with 15 million of it by craft brewers.
Breweries commonly have grain bin storage adjacent to the building, likely 30 feet or
less in height. They are served by typical semi-truck deliveries similar to a restaurant or
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other large retail use. The hours of operation will vary depending on the annual output
and the size of the production system. Production systems are described in their barrel
capacity for one session of brewing. Brewing will take approximately eight hours for a
batch before being transferred to fermentation tanks where the beer will ferment from 2
to 4 weeks, depending on the varietal. The storage and fermentation capacity often
dictates the size of the facility rather than the brewing capacity.
The question of allowing a production use in a commercial zone relates to the purpose
of a base commercial zoning district. In this case we are considering if allowing for a
small production use meets City interests for economic development and social
activity, while preserving appropriate commercial lands and compatibility with
neighboring properties. The small production issue could relate to more than alcohol
product sales of beer, distilled spirits, and wine, and could relate to other food uses with
large manufacturing/distribution components, such as bakeries, candy shops, and
coffee roasters. Standard retail or restaurant/cafe uses that produce items primarily for
consumption on site would not meet the definition of a manufacturing use that is
purpose of this report.
Definition of Use Options
Common industry terminology includes the term microbrewery for an establishment that
produces up to 15,000 barrels a year of which 75% are sold for off-site consumption. A
brewpub would be smaller in size and produce beer primarily for consumption on site.
A craft brewer is broad term meant to distinguish the brewers that exceed the
microbrew levels but do not reach the capacity of the largest national brewers. Craft
beer examples include Samuel Adams as the largest producer at over 2 million barrels
a year, but with many regional breweries fitting this definition as well in the 200,000
barrel a year range. Wineries and distilleries do not appear to have as neatly defined
sizes by trade organizations for reference.
However, these industry terms are not always used to establish zoning definitions. The
most common term would likely be microbrewery and the 15,000 barrel limit, but it
varies greatly from less than 3,000 barrels to significantly more at 60,000 barrels. This
wide range of definition exists because of the variety of industrial and commercial areas
these facilities may locate in different communities and what part of the brewery and tap
room use a city is concerned about managing. State regulation on alcohol production
and sales also vary considerably from state to state.
It appears that the volume of production can scale up quickly without a substantially
larger building size. This can be due to the layout of the facility and the number of
hours it operates. To staff, there does not appear likely that there would be a large
difference in a facility sized to produce 15,000 barrels and 30,000 barrels. Smaller
production facilities can be sized in rather small buildings of less than 5,000 square feet.
A small production facility could be defined by its size or capacity. Some cities define a
different process for approval based on size. Smaller facilities may be by right and
larger facilities require discretionary approval. For example Coralville, uses 650 gallons
a day (approximately 8,000 barrels annually) to separate the types of permits. Ft.
Collins Colorado allows microbreweries at 15,000 barrels annually by right in many
locations, and requires discretionary permits for others. Aurora and Denver Colorado
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allow breweries of 60,000 and 50,000 barrels as microbreweries and may locate in
commercial or industrial areas.
The trend recently with microbreweries is to include or allow for use of tasting rooms or
tap rooms where for on-site consumption of the product and promotion of the brand.
This varies in format from a small drinking area, a full bar, or restaurant along with the
brewery. Most of staff's research found references to allowing these tap room use as an
accessory use to a brewery. Some cities also considered the size and location of
brewery facilities and their accessory facilities as they reviewed zoning standards.
Staff recommends that the definition of small-production facility of a brewery,
distillery, or winery should include a requirement to have retail and service
component of tasting room or restaurant to be considered as a commercial use
rather than an industrial use. Staff does not recommend limiting the size if a project
requires a discretionary approval.
Approval Process Options
The approval process has three options. The use could be considered allowed by right
through administrative approval of a minor site development plan. This is the process
for most commercial uses, including entertainment, restaurant, and recreation uses. The
second option would be for a discretionary review by the Zoning Board of Adjustment of
an Exception or a Special Use Permit. This would be a means of having case-by-case
review of the proposed use and its suitability at a specific location. The third option
would be to require City Council approval of the use and site plan with a Major Site
Development Plan. This would also be a means of considering a project on case-by-
case basis focused on the site plan design and layout. Criteria for a Special Use Permit
and a Major Site Development Plan are included as Attachment B.
Staff believes the use of the discretionary review by the Zoning Board of
Adjustment of a Special Use Permit is the appropriate means to control the
intensity and mix of uses with the microbrewery type of use. This would require a
Special Use Permit regardless of the size of facility. It would allow for individual review
of the size and capacity of facility in consideration of its surroundings and design.
Zoning District Options
The City's Land Use Policy Plan supports concentrated commercial uses with
complementary uses to increase economic activity in focused areas. A stand alone
production/manufacturing use would not meet that goal on its own in a commercial area.
Allowing for a large amount of production uses in commercial zones would also concern
staff as there is a limited supply of well suited convenient commercial land while there is
industrial land available for manufacturing uses that are less reliant on location for their
success. However, when a production use accentuates an area and supports vitality
through its retail or service component then it can fit well within a commercial area and
be consistent with the Land Use Policy Plan and the purpose of a commercial zoning
district. A small brewery may help attract people from a citywide, regional, or even
larger market area, if it provides services or products to customers, such as
tours, gathering area, and event space. However, a large factory without a
customer component could detract from the activity and visual interest that helps
commercial uses.
The applicant desires to locate in HOC zoning. HOC zoning is the most common
commercial zone in the City. It is intended to-
" . . . allow auto-accommodating commercial development in areas already
predominantly developed for this use. The zone allows a full range of retail
and service businesses with a large local or citywide market. Development is
expected to be generally auto-accommodating, with access from major traffic
ways. The zone's development standards are intended to promote an open
and pleasant street appearance; development that is aesthetically pleasing
for motorists, pedestrians and the businesses themselves; and compatibility
with adjacent residential areas."
HOC locations range from areas along west Lincoln Way outside of Campustown to
central areas of Lincoln Way by Grand Avenue, all along South Duff, and areas along
South and Southeast 16th Street. (See Zoning Map) With this wide diversity of allowed
uses and locations in the City, HOC has a larger range of interactions with residential
and commercial uses than other zoning types in the City.
A microbrewery's primary use will be an industrial type use of manufacturing, but its ties
of the retail and service use of a taproom gives the microbrewery the sense of a
commercial use. Staff's review of Iowa cities reveals that microbreweries commonly are
within industrial areas, but smaller facilities are also plentiful in commercial areas.
Coralville appears to have the largest facility of Backpocket Brewing located in purely
commercial zoning area. Backpocket is sized to produce up to 25,000 barrels a year.
The use could be considered in other commercial zoning districts or within industrial
zoning districts. While other microbreweries may not desire the applicant's scale of
25,000 barrels of production, smaller producers may want the flexibility of selling more
products for off-site consumption than on site, as is allowed currently under the code.
Allowing for small production facilities that include a commercial component could then
be extended to areas such as Downtown, or Somerset, Campustown, etc. Alternatively,
the brewery use may be found to not be desirable in commercial areas and in that case
the City would only allow it in industrial zones with other uses categorized as
manufacturing.
Staff recommends that the use be allowed within HOC, Downtown, and
Campustown. These are all zoning districts meant for a larger scale of use and as
commercial destinations. Somerset is meant for neighborhood scale uses and would
not be an appropriate fit for a production brewery use.
The Planning and Zoning Commission reviewed the proposed text amendment at its
April 1, 2015 meeting and recommended approval of the text amendment on a 4-0 vote.
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ALTERNATIVES:
1. The City Council can approve on first reading an ordinance to amend the City of
Ames Zoning Ordinance Chapter 29 of the Municipal Code to include:
a. Definition of a Small Production Facility of a microbrewery, distillery, and
winery that includes retail and service commercial restaurant, tasting, or tap
room.
b. Amend Highway Oriented Commercial (HOC), Downtown(DSC), and
Campustown Service Commercial(CSC) zoning districts to allow for a Small
Production Facility with approval of Special Use Permit by the Zoning Board of
Adjustment.
Complete language of the draft ordinance is attached to this Council Action Form.
2. The City Council can modify the proposed text amendment definition, modify the
approval process, or reduce the number of allowed zoning districts.
3. The City Council can request additional information before making a approving an
ordinance on first reading.
4. The City Council can deny the proposed text amendment.
CITY MANAGER'S RECOMMENDED ACTION:
Popularity of small-production alcohol facilities is increasing in the Midwest and
nationally. In other communities, breweries have demonstrated entertainment and
tourism value. Establishing the proper location for such businesses is a complicated
policy challenge to balance competing interests of how to best use commercial land
resources.
The appropriate balance can be struck by allowing for the proposed production brewery
use in combination with traditional commercial uses of retail, restaurant, or bar uses and
requiring case-by-case review as a Special Use Permit. With the thought that the use
can be an activity generating use, it could appropriately be allowed in three of our more
intense commercial zoning districts of Highway Oriented Commercial(HOC),
Campustown Service Center(CSC), and Downtown Service Center(DSC).
Therefore, it is the recommendation of the City Manager that the City Council accept
Alternative #1, thereby approving the text amendment to allow small production facilities
for alcoholic beverages with commercial facilities as a special use permit in HOC, CSC,
and DSC.
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ATTACHMENT A
Scott Griffen
GSS BB,LLC
PO Box 1928
Ames,Iowa 50010
March 2, 2015
Honorable Mayor Anne Campbell and
Members of Ames City Council
515 Clark Avenue, PO Box 811
Ames, Iowa 50010
Dear Honorable Mayor and Members of Ames City Council,
I am writing to ask your assistance with a zoning limitation I have encountered. I would like to
locate a brewery and convention center at 1615 South Kellogg Street. I have enclosed an aerial
of the site I have optioned for the project. The current zoning would allow for the convention
center, but not the brewery.
Convention and meeting space is limited in Ames, I would like to provide additional options to
continue to bring groups to Ames and provide a unique environment for various events and
occasions.
The type of project I am proposing is gaining popularity across the United States, with a similar
example located in Minneapolis, Minnesota called Surly Brewing Company.
Identifying a location within the Ames community that provides a successful location and a
location that allows both activities is very limited because the project will have both industrial
(brewery) and commercial (convention center) uses. The available land at 1615 South Kellogg is
the only property I could currently identify within the community meeting the criteria for
successful location. With other similar projects being accommodated in communities, I would
ask for your assistance with the zoning ordinances to allow my project to move forward.
Other activities I am undertaking to assist with making the project successful is applying for
financial assistance from the Iowa Economic Development Authority. At this time I have
submitted an application for consideration.
Sincerely,
J
Scott Griffen
President of GSS BB, LLC
Attachment B
Major Site Plan Criteria 29.1502.4
(vii) City C'ouncit Decision, After the transmittal of the recommendation troln the
Plannin,,and!vain-Contrnission,the.City C'ounc'tl shall consider the application at a public hearing conducted as part
of a rc�-,ularly scheduled mc,eting. Notification of the public hearing shall be made by mail and posting, in accordance
with Sections 29.1500(2)(d)(i) and (iii) above. The City Council must approve, deny or mollify the Major Site
Development Plan approval application within hU days of the public hearing.
(el) Design Standards. When acting upon an application fora major site plan approval,the City
Council shall rely upon generally accepted site planning;criteria rind design standards, These criteria and standards are
nec ssary to fulfill the intent of the Zonim, Ordinance, the Land Use Policy Plan,and are the minimurn necessary to
safe,uard the public health.safety,aesthetics.. and general welfare. These criteria and standards include:
(i) The design of"the proposed development shall make adequate provisions for surface
and subsurface drainage to limit the rate of increased runoff ofsurface water to adjacent and down stream property;
(ii) The design of' the proposed development shall make adequate provision for
connection to water,sanitary sewer, electrical and other utility lines within the capacity limits of those utility lines;
(iii) The design of the proposed development shall make adequate provision for fire
protection through building placement, acceptable location of flammable materials,and other measures to ensure fire
safety;
(iv) The deign of the proposed development shall not increase the danger of erosion,
flooding, landslide,or other endangerment to adjoining and surrounding property;
(v) Natural topographic and landscape features of the site shall be incorporated into the
development design;
(vi) Thedesign ofinteriorvehicle and pedestrian circulation shall provide forconvenient
flow ot'vehicles and movement of pedestrians and shall prevent hazards to adjacent streets or property;
(vii) The design of outdoor parking areas,storage yards,trash and dumpster areas,and
other exterior features shall be adequately landscaped or screened to minimize potential nuisance and impairment to the
use of adjoining property.
(viii) The proposed development -shall limit entrances and exits upon adjacent streets in
order to prevent congestion on adjacent and surrounding streets and in order to provide for safe and orderly vehicle
movenrent:
(ix) Exterior fighting shall relate to the scale and location of the development in order
to maintain adequate security, wN bile preventing a nuisance or hardship to adjacent property or streets;
W 'File proposed development shall ensure that dust and other fornrs of air pollution,
noise disturbances,odor.glare.and other nuisances will be Limited to acceptable levels as prescribed in other applicable
State and City regulations;and
(xi) Site coverage,building scale,setbacks,and open spaces shall be in proportion with
the development property and with existing, and planned development and structures, in adjacent and surrounding
property.
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Attachment B
Special Use Permit 29.1503(4)
(+) Review Criteria. Before a Special Use Permit application can be approved,the Zoning Board of
Adjustment,hail establish that the following general aandards,as well as the specific standards outlined in subsections
(b).(c),and (d)below,where,applicable.have been or shall be satisfied. The Board's action shall be based on stated
lindings of fact. The, conditions imposed shall be construed as limitations on the power ofthe Board to act. A there
findim,that a use conforms to tho,,c conditions or a recitation of those conditions,unaccompanied by specific findings
of-fact, shall not be considered findings of fact for the purpose of complying with this Ordinance.
(.a) General Standards. The Zonim, Board o1'Adjustment shall review each application for the
purpose of determining that each proposed use meets the following, standards, :and in addition, shall find adequate
evidence that each use in its proposed location will:
(i') Be harmonious with and in accordance with the,general principles and proposals of
the Land Ilse Policy Plan of the City:
(ii) Be designed, constructed, operated. and maintained so as to be harmonious in
appearance with the existing or intended character of the general vicinity and that such a use will not change the essential
character of the area in which it is proposed.
(iii) Not be hazardous ordisturbing to existing or future uses in tilt same gcneral vicinity,
(iv) Be served adequately by essential public facilities and services such as highways.
streets. police, fire protection,drainage structure.refuse disposal, water and sewage facilities, and/or schools,
(v) Not create excessive additional requirements at public cost for public facilities and
se.rviccs:
(vi) Not involve uses, activities, processes. materials, equipment or conditions of
operation that will be detrimental to.any person,property or gcncral welfare by reason cafexccssive production of traffic,
noise,smoke. fumes.glare, of odors;and
(vii) Be consistent with the intent and purpose of'tile Zone in which it is proposed to
locate such use.
(b) Residential Zone Standards. The Zoning Board ofAdjustnhent shall review each application
Jul-the purpose ot'determining that each proposed use in a residential zone meets the following standards.as well as those
set forth in Section 29.1503(4)(a) above and. in addition, shall find adequate evidence that each use in its proposed
location will:
(i) Not create excessively higher levels oftraffic than the predominant pattern in the
area.and mat create additional traffic front the proposed use that would change the street classification and such traffic
shall not lower the level of service at area intersections,
(ii) Not create a noticeably different travel pattern than the predominant pattern in the
area. Spec ial attention inust be shown to deliveries or service trips in aresidential zone that are different than the normal
to and from work travel pattern in the residential area;
(iii)Not generate truck trips by trucks over 26,000 pounds g;.v.w(g-ross vehicular weight)to
and from site except for food delivery \chides, waste collection vehicles and moving vans:
(Ord.No. 4159, 9-24-1 3)
0y Not have noticeably different and disruptive hours of operation;
{v) Bc sufficiently desirable for the entire.community that the loss of residential hand
is justifiable:in relation to the benefit:
(vi) Be compatible in terms of Structure placement,height,orientation or scale with the
predominate building pattern in the area;
(vii) Be located on the lot with a greater setback or with landscape buffering to minimize
the impact of the use on adjacent property, and
(viii) Be consistent with all other applicable standards in the zone..
(c) Commercial Standards. The Zoning Board of Adjustment shall review-each application for
the purpose coldetermining that each proposed use located in a conhnacrcial zone meets the hallowing standards as well
as those set fiorth in Section 29.15(.)3(4)(a) above and, in addition, shall find adequate evidence that each use in its
proposed location will:
(i) Be compatible with the potential commercial development and use of property
planned to occur in area,
(ii) Represent the sufficiently desirable need for the entire community that the loss of
commercial land is justifiable in relation to the bcnel-w and
(iii) Be consistent with all other applicable standards in the zone.
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ATTACHMENT C — LAND USE POLICY PLAN
Related Goals and Objectives
Goal No. 1. Recognizing that additional population and economic growth is likely, it is the
goal of Ames to plan for and manage growth within the context of the community's capacity
and preferences. It is the further goal of the community to manage its growth so that it is
more sustainable, predictable and assures quality of life.
Objectives. In managing growth, Ames seeks the following objectives.
1.A. Ames seeks to diversify the economy and create a more regional employment
and market base. While continuing to support its existing economic activities,
the community seeks to broaden the range of private and public investment.
Goal No. 2. In preparing for the target population and employment growth, it is the goal of
Ames to assure the adequate provision and availability of developable land. It is the further goal
of the community to guide the character, location, and compatibility of growth with the area's
natural resources and rural areas.
Objectives. In assuring and guiding areas for growth, Ames seeks the following objectives.
2.A. Ames seeks to provide between 3,000 and 3,500 acres of additional developable
land within the present City and Planning Area by the year 2030. Since the potential
demand exceeds the supply within the current corporate limits, alternate sources shall be
sought by the community through limited intensification of existing areas while concentrating
on the annexation and development of new areas. The use of existing and new areas
should be selective rather than general.
2.B. Ames seeks to assure the availability of sufficient suitable land resources to
accommodate the range of land uses that are planed to meet growth. Sufficient
land resources shall be sought to eliminate market constraints.
2.C. Ames seeks a development process that achieves greater compatibility among new
and existing development.
Goal No. 4. It is the goal of Ames to create a greater sense of place and connectivity,
physically and psychologically, in building a neighborhood and overall community identity and
spirit. It is the further goal of the community to assure a more healthy, safe, and attractive
environment.
Objectives. In achieving an integrated community and more desirable environment, Ames
seeks the following objectives.
4.C. Ames seeks to psychologically connect the various living/activity areas through
closer proximity of residential areas and supporting commercial uses, common design
elements, and inclusion of community amenities such as parks and schools. The
connections should promote community identity.
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