2. THAT the Mayor and Corporate Officer be authorized to execute all documents relating to this matter.

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1 e. 1~.b ABBOTSFORD COUNCIL REPORT Report No.: PDS Executive Committee June 9, 2014 File No: IZB-005 To: From: Subject: Mayor and Council Christine Batchelar, Planner Zoning Bylaw Text Amendment - Microbreweries RECOMMENDATIONS 1. THAT Bylaw No , cited as "Abbotsford Zoning Bylaw, 1996, Amendment Bylaw No. 743", be given first and second readings at the next Regular Meeting of Council, and advance to an upcoming Public Hearing; and 2. THAT the Mayor and Corporate Officer be authorized to execute all documents relating to this matter. SUMMARY OF THE ISSUE Planning and Development Services has recently received two written requests through the Mayor's office to update the Zoning Bylaw to allow microbreweries and accessory limited retail sales and tasting areas, within industrial areas similar to other communities within the Lower Mainland. Staff are bringing forward a text amendment to the Zoning Bylaw to include a definition of a Microbrewery Use and allow the proposed use within both the Light Industrial Zone (11) and the General Industrial Zone (12). BACKGROUND The City of Abbotsford within the last six months had the first microbrewery establishment open for business (Surlie Brewing Company) and currently a second microbrewery (Old Abbey Ales) is in the process of opening, both are located within the 12 zone consistent with other manufacturing uses. The operators provided letters outlining their operations with some background information on the microbrewery industry (see Attachments A and B). Both letters from Old Abbey Ales and Surlie Brewing go into the many benefits of microbreweries and the growth the sector is experiencing. The microbrewery sector is growing and many neighbouring municipalities, including but not limited to the Township of Langley and Surrey have local microbreweries located within industrial areas with brewpubs being established within commercial areas. Local microbreweries support the economy with additional local jobs, increase in tourist visits, and provide a locally made product for local residents to enjoy. The microbrewery industry further utilizes local products in the production of the beer and supports the local agricultural sector with the use of hops and grains.

2 Report No. PDS Paae.., 2 of 4 DISCUSSION 1. The manufacturing of beer is an industrial use, however accessory uses that accompany microbreweries such as the retail sale of liquor is not currently permitted within the industrial zones as the sale of liquor falls under a licensee retail store use which is only permitted in some of the commercial zones. Staff is recommending the addition of a microbrewery definition and the inclusion of the microbrewery use to the 11 and 12 industrial zones within the Abbotsford Zoning Bylaw to accommodate the emerging microbrewery industry within the City of Abbotsford. 2. A brewery must obtain a manufacturing licence issued by the Liquor Control and Licencing Branch (LCLB). A brewery is defined by the LCLB as a company that makes beer and is permitted to provide free samples for tasting, operate a retail store and apply for four additional uses: a lounge - allows for customers to purchase and consume product made on site; special event area - for events such as weddings; tour area - where the customer can tour the site; and picnic area - where a customer can consume purchased product (similar to a winery picnic area) A lounge and special event uses require specific Local Government approval by way of a Council resolution for each application received. 3. The City of Abbotsford proposes to limit the LCLB definition of a brewery. The proposed microbrewery definition is as follows: "a facility for the brewing of beer that produces less than 15, 000 barrels per year and is licenced under a manufacturers licence by the Province of British Columbia; includes the following as an accessory use: areas for sampling, retail display and retail sales limited to 33% of the total gross floor area". The current proposed definition of a microbrewery would not allow for a lounge or special event use. If an existing or proposed microbrewery proposed such a use a site specific text amendment would be required along with a Council resolution to the LCLB. A microbrewery with a lounge use would be more suitable to a commercial zone possibly under a new use called brewpub which would permit a restaurant, lounge and brewery operation. The brewpub use within commercial zones will be looked at in greater detail as part of phase 2 of the major Zoning Bylaw update currently in progress. The proposed definition was reviewed by the two operators that are located within Abbotsford. The one operator currently in operation was supportive of the proposed definition as it allowed him to grow his business as a microbrewery. The second operator did not wish to see size limitations on the tasting room or lounge area and wished to see the definition mirror the LCLB manufacturing licence permitted uses. Staff proposes a limit to the retail and sampling area as the use is located within the industrial zones and 33% of the total gross floor area of an operation would ensure the use remains clearly accessory to the manufacturing use. Urban Systems (currently involved in the broader Zoning Bylaw update initiative) recommends

3 Report No_ PDS (n- 2 01~~ Paqe 3 of 4 '"' incorporating a size limitation within industrial areas, which will direct commercial type uses to the commercial zones_ Agricultural Strategy Three Agricultural Strategy Objectives support the microbrewery industry_ The applicable strategy objectives are: Enhance Opportunities for Agricultural Enterprise To pursue and support initiatives to increase the role agriculture as the economic Iynchpin of the local economy, particularly in the rapidly growing sectors of agri-tourism and peri-urban direct market agriculture. Pursue and Support Agri-Industriallnvestment To explore the potential to integrate the economic growth and development of the City with the opportunities presented by the presence of its large Agriculture sector. To pursue and support opportunities for innovative, value-added, community-based industry with high quality employment, income and wealth generation. Cultivate Public Support for Agriculture Communication Plan To link City agriculture to converging trends involving the celebration of local food, food experiences, regional agro-tourism. If supported by Council, the Zoning Bylaw Amendment will proceed to a Public Hearing. Two advertisements for the Public Hearing will be published in the City Page of the local newspaper and Council will be provided with copies of any feedback received. FINANCIAL PLAN IMPLICATION No financial plan implications are anticipated. IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN ANDIOR COUNCIL DIRECTION The proposed text amendment to include a microbrewery use as a permitted use within the 11 and 12 zones is consistent with the policies contained within the City's Official Community Plan and Agricultural Strategy.

4 Report No. PDS Page 4 of 4 SUBSTANTIATION OF RECOMMENDATION Planning staff recommends support for the proposed text amendment to add a microbrewery definition to the Zoning Bylaw and amend the 11 and 12 zones to permit a micro brewery with accessory retail sales and tasting areas as permitted use within the industrial 11 and 12 zones. Prepared by: Christine Batchelar Planner Dep~rtmenHeaApproval: Siri Bertelsen General Manager of Planning & Development Services Darren Braun Director of Development Planning Ene!. Attachment A - Surlie Brewing Company Letter dated May 1, 2014 Attachment B - Old Abbey Ales Letter dated May 19, 2014 Attachment C - Zoning Amendment Bylaw No

5 SURLIE " EwiNG coh!abl. ATTACHMENT A i T QWllline Road Abbotsford, B C \,2T 6GJ i 39 MAY U 1 l01l, 2014/05/01 M ayo r Bruce Ba nman Cit y of Abbotsford32315 South Fraser Way Abbotsford, S.c. V2T l W7 Mayor Banman: I am writing in regards to the brewing industry. I have recently opened the first craft brewery in Abbotsford. My provincial license allows for accessory use of the facility for onsite tastings, as well as retail and growler sales, in the designated area of the floor plan. The Abbotsford City by-laws do' not currently allow the sale of alcohol in an industrial zone. Small local breweries help bolster the local economy. In our province, one of every 5 kegs on tap is made by a brewery in S.c. The December 2012 BC liquor Distribution Branch notes that breweries with a production of over 160,000 HL experienced a -3.87% change in packaged product, while breweries with an annual production of up to ls,ooo hl experienced a change in packaged product. The benefits of a strong craft brewing industry have already been experienced in nearby municipalities through increased tourist traffic and job creation. The Canadian brewing industry supports one out of every 100 jobs in Canada, and generates $5.8 billion in government revenues in the form of product, income and corporate taxes. The brewing industry is over 3 times larger than the distilling and winery industries combined. Portland, Oregon, with a population of 600,000, sustains 72 local breweries, which employ lout of 345 workers. There is an interest from the public to support locally made products, including beer, thus fostering a stronger local economy. I am looking to be able to provide tastings, as well as sell my product, made on-site, in bottles and growlers as an accessory use of my facility. Thank you for your consideration. Sincerely Tim Brown CI;

6 May 19 ATTACHMENT B Dear Mr. Mayor, Council, and To Whom It May Concern; I am writing to you regarding our new production craft brewery to be located at 1 A Fraser Highway, Abbotsford, BC. The purpose of this letter is to inform you of our intent related to the brewery operations. Further to the aforementioned, I would like to bring to your attention the need for change of certain by-laws which would allow Old Abbey to operate a brewery tasting room and lounge similar to the many successful craft breweries in Vancouver and other surrounding municipalities. Old Abbey Ales Ltd is a new production craft brewery located in the Abbotsford municipality. The brewery is still moving through the municipal permitting phase, however, the brewery has been granted its brewery manufacturing and tasting room license from the provincial government. As a production craft brewery, Old Abbey Ales will have four separate revenue streams. The following is an overview of the areas of operation: Brewing of beer for local, regional, national and international distribution Wort production for local, regional, national and international distribution In-house brewery tasting room with retail and brewery off sales (growlers etc... ) In-house brewery lounge for on-site consumption As a production brewery, the business will require a full time staff for all areas of the operation. Old Abbey will be drawing its employees from the local community. The brewery will employee upwards ~f fifteen people at full capacity. There are three full time workers currently employed including; John Ohler, Chief Operating Officer/General Manager, Tony DeWald, Head Brewer, and John Piccolo, Tradesman. Both John and Tony are highly experienced and well-known in the craft brewing industry. For the information of the Mayor and Council, the craft brewing sector is a booming industry which saw 16% growth in 2013, with estimates indicating that number will double in It is proven that craft breweries generate tremendous benefits to the community in which the brewery is located. Some ofthese benefits include: Tremendous positive economic impact on many levels Utilization of labor from local work force Utilization of professional services from local businesses Tremendous positive social impact on municipality Utilization of locally produced raw materials and ingredients Support of local charitable causes throughout the year

7 Craft beer is one of the hottest trending topics in social media. It is because of this, craft breweries have the ability to generate a tremendous impact outside the community they are located in. As a founding member of one of the most recognized craft breweries in NOlih America, my former brewery constantly made international news due to our unique marketing campaigns and the fact that we were one of the top winning breweries at world beer competitions. It is this kind of awareness that draws attention to Canada and the community that the brewery is located in. Our goal at Old Abbey is to create the kind of attention that wi II get the world talking. Critical to our success at Old Abbey Ales will be the introduction of our brewery tasting room and eventual brewery lounge. Our brewery license allows for the aforementioned, however, Abbotsford bylaws do not allow this type of entity to exist. As mentioned in my opening statement, Vancouver and surrounding municipalities allow craft breweries to operate tasting rooms and lounges, and as such, the businesses are flourishing. Six out of the seven breweries we visited in Vancouver last week can hardly even keep up with the demand from consumers at their tasting rooms alone. We are asking that the City of Abbotsfol'd amend the laws to allow Old Abbey, as well as existing and future craft brewel'ies, to operate tasting rooms and brewery lounges as permitted in our provincial license. On behalf of Old Abbey Ales, and the craft brewing community at large, I want to thank you for your time and consideration of this matter. Sincerely, John Ohler President, Beverage Consulting Group Chief Operating Officer, Old Abbey Ales Ltd. I A Fraser Highway, Abbotsford, BC C

8 CITY OF ABBOTSFORD ATTACHMENT C ABBOTSFORD ZONING BYLAW, 1996, AMENDMENT BYLAW NO. 743 Bylaw No ZB005 The Council of the City of Abbotsford, in open meeting assembled, ENACTS AS FOLLOWS: 1. CITATION Bylaw No may be cited as "Abbotsford Zoning Bylaw, 1996, Amendment Bylaw No. 743". 2. AMENDMENTS Bylaw No cited as "Abbotsford Zoning Bylaw, 1996", as amended, is hereby further amended by: (a) adding the definition of "Microbrewery Use" to Section 120, Definitions, in alphabetical order, with the following: "MICROBREWERY USE means a facility for the brewing of beer that produces less than 15,000 barrels per year and is licenced under a manufacturers licence by the Province of British Columbia; includes the following as an accessory use: areas for sampling, retail display, and retail sales limited to 33% of the gross floor area."; and (b) adding "Microbrewery Use" as a permitted use to Sections , and , in alphabetical order. READ A FIRST TIME this PUBLIC HEARING HELD this READ A SECOND TIME this READ A THIRD TIME this APPROVED by the Minister of Transportation and Infrastructure this ADOPTED this I hereby certify this to be a true copy of the original bylaw R. Bruce Banman Mayor Katie Karn Deputy City Clerk William Flitton Corporate Officer Final Draft June 9, 2014

====~~ ABBOTSFORD COUNCIL REPORT. Report No. EDP January 13, 2012 File No: /Moxie's Classic Grill

====~~ ABBOTSFORD COUNCIL REPORT. Report No. EDP January 13, 2012 File No: /Moxie's Classic Grill ====~~ Report No. EDP007-2012 January 13, 2012 File No: 4320-60/Moxie's Classic Grill COUNCIL REPORT Regular Council To: From: Subject: Mayor and Council Darren Braun, Senior Planner Council Hearing on