STAFF REPORT. Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries (Countywide)

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1 COUNTY OF PRINCE WILLIAM 5 County Complex Court, Prince William, Virginia PLANNING MAIN (703) FAX (703) OFFICE wwwpwcgovorg/planning Christopher M Price, AICP Director of Planning November 05, 2014 STAFF REPORT Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries (Countywide) Planning Commission Public Hearing Date: November 05, 2014 Staff Recommendation: Adoption I Background is as follows: A Purpose of the Zoning Ordinance Section of the Code of Virginia states that zoning ordinances shall be for the general purpose of promoting the health, safety, or general welfare of the public B Purpose of Amendment Recent growth in the popularity of craft/microbreweries has generated interest in locating them in commercial settings where they have greater exposure to retail traffic At the same time, recent changes to the Code of Virginia allow for limited brewery licenses to be issued to breweries that manufacture no more than 15,000 barrels of beer per year on agricultural land where the crops used to make the ingredients of the beer are grown Such breweries are allowed to market and sell their products, including tasting and onsite consumption, with reasonable restrictions The current Zoning Ordinance does not provide for craft/microbreweries in commercial districts (unless associated with a restaurant) or limited breweries in the A-1, Agriculture district In addition, there has been an increase in interest in establishing distilleries for alcoholic beverages in the County The Zoning Ordinance does not include a definition of distilleries or designate them as by-right or special uses in any zoning district II Current Situation is as follows: A Application of Current Language The current Zoning Ordinance does not define craft breweries and distilleries however; the Ordinance does permit brewery and bottling facilities in the M-1, Heavy Industrial, and M/T, Industrial Transportation, districts In addition, brewery and bottling associated with (accessory to) a restaurant is permitted in the B-1, General Commercial, district The facilities designated for industrial districts are oriented to larger volume An Equal Opportunity Employer

2 November 05, 2014 Page 2 production and bottling of beer for wholesale distribution Brewing of beer accessory to a restaurant, permitted only in the B-1 district, requires that the primary use of the property be a full service restaurant, which limits the options for start-up craft/microbreweries In addition, there is no provision in the zoning ordinance for the manufacture/processing of distilled beverages B Proposed Remedy The proposed amendment will enable the County to meet the demand for increasingly popular uses (craft breweries, limited breweries and distilleries by allowing these uses in appropriate districts (limited breweries in A- 1Agriculture, craft breweries in B-1, B-2 B-3 and M-2 districts and distilleries in M-1 M-2 and M/T districts C Zoning Text Amendment Initiated On August 05, 2014, Supervisor May (DIR ), requested that staff review recent changes to the Code of Virginia regarding craft breweries, compare those changes to existing Zoning Ordinance regulations pertaining to breweries and initiate a zoning text amendment to bring the Zoning Ordinance into conformance with state law The Board of County Supervisors initiated the text amendment on October 7, 2014 (see Attachment B) D Zoning and Development Review Advisory Committee Copies of the proposed amendment were sent to each committed member with a request for response To date, two responses were received and we are currently awaiting for their comments E Planning Office Recommendation The Planning Office recommends adoption of Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries, as proposed in Attachment A F Planning Commission Public Hearing A public hearing before the Planning Commission has been properly advertised for November 05, 2014 III Issues in order of importance are: A Policy Does the amendment further the purposes of the Zoning Ordinance? B Community Input Have members of the community raised any issues? C Legal Are there any legal implications associated with this zoning text amendment? D Timing What are the timing considerations of the zoning text amendment?

3 November 05, 2014 Page 3 IV Alternatives beginning with the staff recommendation are as follows: A Recommend Adoption of Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries, to the Prince William County Zoning Ordinance 1 Policy The proposed text will further enable the purpose and intent of the Zoning Ordinance by encouraging economic development activities that provide employment and enlarge the tax base, including agricultural related employment 2 Community Input The Planning Office has received several inquiries as to the status of this text amendment from individuals/businesses interested in starting craft breweries/distilleries 3 Legal The adoption of the zoning text amendment will incorporate the proposed requirements into the Zoning Ordinance, which is enforceable by the County Legal issues resulting from Planning Commission action would be appropriately addressed by the County Attorney s Office 4 Timing The Planning Commission has until February 3, 2015, 90 days from the first public hearing, to take action on this proposal A recommendation to adopt the zoning text amendment would meet the 90- day requirement B Do Not Recommend Adoption of Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries, to the Prince William County Zoning Ordinance 1 Policy If the Board of County Supervisors does not adopt the proposed amendment, the opportunities for enhanced retail, entertainment, and tourism will not supplemented and existing businesses will not be maximized 2 Community Input The Planning Office has received several inquiries as to the status of this text amendment from individuals/businesses interested in starting craft breweries/distilleries 3 Legal Legal issues resulting from Planning Commission action would be appropriately addressed by the County Attorney s Office 4 Timing The Planning Commission has until February 3, 2015, 90 days from the first public hearing, to take action on this proposal A recommendation to deny the zoning text amendment would meet the 90- day requirement

4 November 05, 2014 Page 4 V Recommendation is that the Planning Commission concurs with Alternative A and recommends adoption of Zoning Text Amendment #PLN , Limited/Craft Breweries and Distilleries Staff: Nick Evers, Attachments: A Proposed Text Amendment B BOCS Initiating Resolution

5 Attachment A Proposed Text Amendment ARTICLE I TERMS DEFINED PART 100 DEFINITIONS The Zoning Administrator shall strictly construe the following terms and definitions In the event a term is not defined in this section, the Administrator shall refer to other chapters of the Prince William County Code and to the Building Code for guidance If ambiguity remains, the Zoning Administrator shall then rely upon the conventional, recognized meaning of the word or phrase (eg, current edition, Merriam-Webster s Dictionary) In determining what activities comprise components of any use defined herein, the Zoning Administrator may consult the current edition of the North American Industrial Classification Standards The definitions provided herein shall not be deemed, not shall they be construed to be, a listing of the uses permitted in the zoning districts created by this Chapter Distillery - A facility for distillation of fermented products to produce distilled beverages with a high alcohol content Such facility may include bottling, packaging, warehousing and distribution Limited/Craft brewery - a commercial facility that is licensed by the Virginia Department of Alcohol Beverage Control and produces fermented malt beverages on-premises in quantities up to 15,000 barrels per year for a brewery located on a farm in Prince William County on land containing a minimum lot area of two (2) acres zoned agricultural (the Farm ) and owned or leased by such brewery or its owner, and for which the agricultural products used by the brewery in the manufacture of its beer are grown on the farm; and up to 10,000 barrels per year for a brewery not located on the Farm The brewery may include on-premise retail sale, tasting, or consumption of beer during regular business hours Any sale of fermented malt beverages which is manufactured outside the facility is prohibited ARTICLE III AGRICULTURAL AND RESIDENTIAL DISTRICTS PART 300 GENERAL REGULATIONS Sec Generally Permitted Uses The following uses shall be permitted in all agricultural and residential zoning districts (unless specifically noted otherwise), subject to the standards set forth for each use 10 A farm winery, or brewery with a limited brewery license subject to the provisions of :1 of the Code of Virginia, in the A-1 district, on lots of two (2) acres in area or greater only, shall be permitted by right (a) The following shall be considered by-right accessory uses at farm wineries, and breweries with limited brewery licenses: (i) other agriculture products the production and harvesting of fruit, barley, other grains, hops and Page A-1

6 Attachment A Proposed Text Amendment (ii) the manufacturing of wine; and/or beer (up to a maximum of 15,000 barrels of beer per calendar year); (iii) the storage and sale of wine or beer produced by the winery or brewery including retail sales, direct sales and shipment, as well as wholesaling; (iv) the on-premises sale, tasting, or consumption of wine or beer produced by the winery or brewery during regular business hours within the normal course of business of such winery or licensed brewery (v) the provision of on-site winery and/or brewery tours (vi) wine tasting (b) In addition to the above by-right accessory uses, the following restrictions shall apply: (i) A restaurant and/or commercial kitchen shall be allowed only on a farm winery, or brewery with a limited brewery license, of ten (10) or more acres (ii) Special events shall be permitted only on a farm wineries winery, or brewery with a limited brewery license, of ten (10) acres or larger Any special event in which more than one hundred fifty (150) people are anticipated will require a Temporary Activity Permit Special events include, but are not limited to, meetings, conferences, banquets, dinners, wedding receptions, private parties and other events conducted for the purpose of marketing wine, and/or/beer, produced on the premises (iii) Music, art or other entertainment and cultural activities shall be allowed as accessory activities to a special event PART 301 AGRICULTURAL DISTRICT Sec Uses Permitted by Right The following uses shall be permitted by right in the A-1 district: 1 Except for the keeping of domestic fowl as regulated in Part 508, agricultural uses, the keeping of livestock, and fishery uses, farm wineries and breweries with limited brewery licenses in accordance with Sec , on lots two (2) acres or greater For lots principally used for agricultural purposes, the limits on the number of horses and other domestic equines provided in subsection shall not apply for lots ten (10) acres or larger in size Accessory structures such as, but not limited to, barns, sheds, and stables shall be permitted as required for bona fide agricultural uses ARTICLE IV COMMERCIAL, OFFICE AND INDUSTRIAL DISTRICTS PART 401 COMMERCIAL DISTRICTS Sec B-1, General Business District; Purpose and Intent The B-1 district is intended to implement the regional commercial center and general commercial land se classifications of the comprehensive plan It is generally intended to provide areas for community-scale retail, office and institutional uses in appropriate areas The purpose of this district is to also promote retail employment opportunities and to enhance the tax base of Prince William County The B-1 district is not designed to implement the non-retail employment based Page A-2

7 Attachment A Proposed Text Amendment land uses reflected in the Comprehensive Plan; non-retail uses, however, are permitted within the district to complement and support the retail purposes Sec Uses Permitted by Right The following uses shall be permitted by right in the B-1 district: 1 Adult day-care facility 2 Alarm systems operations, office 6 Brewery and bottling associated with a restaurant 15 Craft brewery (not to exceed production of 10,000 barrels per year May or may not be associated with a restaurant) Sec B-2, Neighborhood Business District; Purpose and Intent The B-2 district is intended to implement the neighborhood commercial land use classifications of the Comprehensive Plan The B-2 district is designed to provide for areas of neighborhood-scale retail, and to a lesser extent, office and institutional uses but particularly consumer product and service centers in appropriate areas The purpose of this district is also to promote employment opportunities and to enhance the tax base of Prince William County Sec Uses Permitted by Right The following uses shall be permitted by right in the B-2 district: 1 Adult day-care facility 2 Assisted Living Facility 10 Craft brewery (not to exceed production of 10,000 barrels per year May or may not be associated with a restaurant) Sec B-3, Convenience Retail District; Purpose and Intent The intent of the B-3 district is to provide for areas within the rural area as defined by the Comprehensive Plan where convenience goods and services may be located The B-3 district is intended to implement the convenience retail land use classification of the Comprehensive Plan Page A-3

8 Attachment A Proposed Text Amendment The Purpose of this district is to serve nearby residents, rather than pass-by or regional traffic, promote employment opportunities, and enhance the tax base of Prince William County Sec Uses Permitted by Right The following uses shall be permitted by right in the B-3 district: 1 Adult day-care facility 2 Assisted Living Facility 5 Craft brewery (not to exceed production of 10,000 barrels per year May or may not be associated with a restaurant) PART 403 INDUSTRIAL DISTRICTS Sec M-1, Heavy Industrial District; Purpose and Intent The M-1 district is intended to implement the industrial employment land use classification of the comprehensive plan The purpose of this district is to also promote employment opportunities and to enhance the tax base of Prince William County It is designed to provide areas for and to encourage development of heavy and intensive industrial processing, manufacturing and storage with limited retail and service uses Retail or residential and low intensity employment uses are generally incompatible with the nature of uses contemplated in the M-1 district Sec Uses Permitted by Right The following uses shall be permitted by right in the M-1 district: 1 Alarm systems operations, office 2 Ambulance service, commercial 19 Distillery Sec , Light Industrial Zoning District; Purpose and Intent The M-2 district is intended to implement the flexible use employment center land use classification of the Comprehensive Plan It is also intended to implement the industrial employment center land use classification as a transition to the flexible use employment center land use classification The purpose of this district is to also promote employment opportunities and to enhance the tax base of Prince William County It is designed to provide areas for research and development centers, light industrial manufacturing, warehousing, wholesaling and related office Page A-4

9 Attachment A Proposed Text Amendment and institutional uses, and not for retail and service uses except in support of the uses primarily intended Sec Uses Permitted by Right The following uses shall be permitted by right in the M-2 district: 1 Alarm systems operations, office 2 Ambulance service, commercial 11 Craft brewery (not to exceed production of 10,000 barrels per year) 12 Distillery (not to exceed production of 5,000 gallons per year) Sec M/T, Industrial/Transportation; Purpose and Intent The M/T district is intended to implement the industrial employment land use classification of the Comprehensive Plan The purpose of this district is to also promote employment opportunities and to enhance the tax base of Prince William County It is designed to provide areas for and encourage development of heavy industrial uses, and in particular for including those which generate considerable truck and/or heavy equipment traffic, or which require access to more than one mode of transportation Facilities involving specialized transportation and industrial equipment, together with related supporting services, should be located in the M/T district since, by their nature, such uses must be served by transportation facilities capable of handling the type and amount of traffic generated Sec Uses Permitted by Right The following uses shall be permitted by right in the M/T district: 1 Alarm systems operations, offices 2 Ambulance service, commercial 21 Distillery Page A-5

10 Attachment B BOCS Initiating Resolution Page B-1

11 Attachment B BOCS Initiating Resolution Page B-2