Letter of Determination

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1 , COLJN \ SAN FRANCISCO PLANNING DEPARTMENT May 28, 214 Regan Long and Sarah Fenson Lol Brewing Co., LLC P.O Box San Francisco, CA Site Address: Assessor s Block/Lot: Zoning District: Staff Contact: Dear Ms. Long and Ms. Fenson: Letter of Determination 165 Mission St. Suite 4 San Francisco, CA Reception: Fax: Planning Information: 69 Bluxome Street /19A WMUO (WSOMA MIXED USE-OFFICE) Jeff Speirs, (415) or jeffrey.speirs@sfgov.org This letter is in response to your request for a Letter of Determination regarding the property at 69 Bluxome Street. This parcel is loted in the Western SOMA Mixed Use - Office Zoning District (WMUO), Western SOMA Special Use District (SUD) and a 65-X Height and Bulk District. The request is to determine if the Planning Code would allow the proposed use (dba Lol Brewing Co.) operating with an ABC Type 23 License (Small Beer Manufacturer) at the subject property, and if so, under what conditions. Proposed Operation Lol Brewing Co. proposes to establish an ABC Type 23 License (Small Beer Manufacturer) at 69 Bluxome Street, currently a warehouse space of approximately 3,5 sf. The proposal is described in your request for a Letter of Determination and further clarified by (dated May 16, 214) as follows: Lol Brewing Co. would be a neighborhood small-batch boutique brewery producing approximately 3, barrels per year and include the brewery (approximately 1, so, cold storage (approximately 1, so, small office space (approximately 5 so and multi-purpose tasting room open to the public (no more than 1, so. Permanent mechanil bottling, or nning, equipment would not be installed; however, temporary mobile bottling equipment would be used. Determination Planning Code Section 845 states that the WMUO Zoning District is designed to encourage office uses along with small-sle light industrial and arts activities. Section permits "Light Manufacturing" uses, as defined in Section 89.54(, in the WMUO Zoning District; however, the Planning Code does not specifilly include a brewery in the definition of "Light Manufacturing." In reviewing your proposal, I have determined that a brewery operating with an ABC Type 23 License would be allowed at this lotion, given the use is "Light Industrial" in nature, subject to the following conditions: 1) production is limited to no more than 5, barrels per year; and 2) no permanent bottling or nning facilities are installed; however, temporary mobile bottling or nning facilities may be allowed up to 4 days per year. These conditions are necessary to ensure that the proposal operates consistent in a manner consistent with the definition of a "Light Manufacturing" use as defined in Section 89.54(.

2 Regan Long and Sarah Fenson May 28, 214 Lol Brewing Co., LLC Letter of Determination 69 Bluxome Street (415) Planning Code Section permits "Retail Sales and Services" uses, as defined in Section 89.14, in the WMUO Zoning District, but limits the amount allowed per lot (principally permitted up to 1, gsf, conditionally permitted from 1,1 to 25, and not permitted above 25,). The proposed multipurpose tasting room would provide a retail component for the brewery for on-site and off-site sales and would ocsionally be used as an edutional space to provide workshops related to brewing. Additionally, your request notes that a small kitchen may be added to provide snacks. The proposed multi-purpose tasting room would be allowed as a permitted use within the WMUO Zoning District subject to neighborhood notifition. APPEAL: If you believe this determination represents an error in interpretation of the Planning Code or abuse in discretion by the Zoning Administrator, an appeal may be filed with the Board of Appeals within 15 days of the date of this letter. For information regarding the appeals process, please contact the Board of Appeals loted at 165 Mission Street, Room 34, San Francisco, or ll (415) Sincerely, Scott F. Sanchez Zoning Administrator cc: Property Owner Neighborhood Groups Jeff Speirs, Planner SAN FRANCISCO 2 PLANNING DEPARTMENT

3 Mr. Scott Sanchez Zoning Administrator Office of the Zoning Administrator 165 Mission Street, Suite 4 San Francisco, CA 9413 ; L Ur Vlip :-. Date 4/21/14 Re: Letter of Determination for Lol Brewing Co., LLC: 69 Bluxome Street (District 6) Dear Mr. Sanchez, We are the founders of Lol Brewing Co., LLC seeking confirmation that the use of the above named property by Lol Brewing Co. as an Alcohol Beverage Control (ABC)-licensed Type 23 Small Beer Manufacturer is a permitted use under Planning Code Section 845, Western Mixed Use Office /MUO) - including a light manufacturing use (Sec., 89.54(), wholesale sales use (89.54(b)), accessory on-site retail (tasting room) use (89.14), and accessory office and storage use. We have discussed our plan extensively with both Corey Teague and Edgar Oropeza in the Planning Department. They have guided us to submit this letter of determination for our project. This WMUO-classified -3,5 square foot warehouse space is loted at 69 Bluxome Street, between 4th and 5th Streets. The building was retrofitted pursuant to San Francisco Building Code requirements in The building is currently zoned WMUO with an 85-X height limit. Records indite the building was built in We propose to convert the building space to a brewery and tasting room (under ABC Type 23 Small Beer Manufacturer license). Brewery production will consume 1, square feet for beer making (including mashing, fermenting, ingredient and keg storage, kegging and keg cleaning); additional accessory cold storage and barrel storage will consume 1, square feet (for serving on-site). The on-site taproom/tasting room will include a seating area not to exceed 1, square feet. Accessory office and storage space will encompass 5 square feet. Annual beer production is expected to reach 3, barrels; we d like the Planning Department to provide a maximum acceptable production pacity for our operation. No large, permanent bottling or nning equipment will be installed at this lotion. If bottling or nning of beer will be done at this space, it will be done by temporary equipment brought in to the space three to five times a year (a number to be determined acceptable by the Planning Dept.). A 1 There will not be large, permanent bottling equipment in the brewery. Rather the brewery will rent a mobile bottler/nner that will visit the brewery approximately 3-5 times per year for 1 day. The entire process from fermentor to n/bottle and labeling will occur inside the truck trailer holding the bottling/nning machinery. The roll-up door and curb-cut at the building frontage will accommodate the trailer entering the building. There is ample open area in the proposed brewery for the trailer to fit and for the bottles/ns to be loaded on pallets and stored within the storage areas of the building.

4 Sales of beer will occur both on-site in our taproom directly to customers, and via self-distribution of kegs, off-site distribution, and by internet or phone sales. All of these activities n occur under a Type 23 ABC license, which explicitly permits small-batch beer making for the purpose of on-site and off-site sales. The brewery will operate from 12noon - 1pm from Monday - Sunday. Beuse our brewery will be small-batch, we ll have a limited number of staff including a brewer, office manager, and two-three interns and/or servers. Based on the above, we seek a determination that the brewery, comprised of production, storage, office and retail sales, is a principally permitted at this WMUO-zoned lotion under light manufacturing use, wholesale sales use and retail sales under Planning Codes 845, and as defined in sections 89.54( and (b), and DETAILED PROPOSED OPERATION Lol Brewing Co. proposes to use this space for a neighborhood small-batch, boutique 1-barrel brewery under a Type 23 ABC license (Small Beer Manufacturer). The operation will include a brewery, a tasting room with a possible small prep kitchen for snacks, accessory storage and office space. We may use our tasting room from time to time as an edution space to provide workshops to edute the neighborhood patrons the making and history of beer in SF and abroad. We will operate a boutique brewery where all small batches of beer are brewed and consumed by neighborhood patrons - something far smaller and different from what one typilly thinks of when they think of a brewery. The volume of beer we intend to produce annually will reach 3,bbls - well below the Type 23 ABC threshold of 6, barrels. If possible, we would like to have the flexibility to produce more than 3,bbls if needed and kindly request that the Planning Department suggest an acceptable annual maximum production pacity for our operation. We intend to brew individual 1-barrel batches of beer three to four times per week, typilly in the morning hours. All beer making equipment will be housed within the building, buffering any noise. Steam vents will be installed so that all odors vent up through the roof and into the wind channels that circulate fresh air. Under our ABC Type 23 license, patrons will be able to purchase and consume beer we brew onsite in our tasting room. Also under our ABC Type 23 license, patrons may purchase "growlers" of our beer to-go (growlers are non-mechanized, hand-filled, jugs of beer). We ll also self-distribute a limited number of kegs from accessory storage via one small truck or van to lol and regional establishments. We may eventually hire a distribution partner but do not anticipate more than twothree keg deliveries/pick-ups per week. TENTATIVE LAYOUT Our final plans are in process, but we anticipate that the brewhouse, fermentors, serving tanks, dry

5 accessory storage and cold accessory storage will encompass 2, square feet of the main floor. The office and employee break room will consume -5 square feet, while the tasting room and seating will encompass no more than 1, square feet. A rough sketch of the floor plan is attached for reference. ARGUMENT Lol Brewing Co. is allowed under WMUO-Light Manufacturing Use, Section 845 Lol Brewing Co. intends to operate a business that directly matches the purpose/intent of the WMUO District, as defined in the San Francisco Planning Code, Section 845: "The Western Mixed Use Office (WMUO) District is designed to encourage office uses along with small-sle light industrial and arts activities." The WMUO principle permitted uses include: "office, general commercial, most retail, production, distribution and repair uses." Lol Brewing Co. is not a heavy manufacturer, but rather will produce small, boutique batches of unique beer using our reful, handcrafted recipe design and brewing processes - a blend of both light manufacturing and creative art. We will operate an artisan brewery, where small batches of beer are brewed and created with neighborhood feedback. Given our background in homebrewing, we consider our beers "custom-brewed" for our patrons. The volume of beer we intend to produce annually will reach 3, barrels, but no more than what is deemed appropriate by the Planning Department. Our annual production will be far below the ABC Type 23 threshold of 6, barrels. We will also will not have any heavy manufacturing equipment permanently installed on-site. Given our plan, our handcrafted operation fits well under the Light Manufacturing definition in Planning Code Section 89.54(: "Light manufacturing uses include production and custom activities usually involving individual or special design, or handiwork..." Furthermore, precedent has been set in San Francisco that ABC Type 23 breweries n be operated as - and determined as - light manufacturing. Cellar Maker Brewery at 115 Howard Street and 21St Amendment at 563 2nd Street are two current examples. Lol Brewing Co. wholesale sales is allowed under WMUO-Light Manufacturing Use, Section 89.54(b) Under our ABC Type 23 license, a large portion of our sales will be from distribution of our product via non-retail, wholesale sales (i.e., sales of kegged beer produced on-site). We ll self-distribute a limited number of kegs from accessory storage via one small truck or van to lol and regional establishments. We may eventually contract hire a distribution partner but we do not anticipate more than two-three keg deliveries/pick-ups per week. We may also opt to bottle (more likely n) limited quantities of our product for wholesale distribution. However, no large, permanent bottling or nning equipment will be installed at this lotion. If bottling or nning of beer will be done at this space, it will be done by temporary equipment brought in to the space three to five times a year (a number to be determined acceptable by the Planning Dept.).

6 Precedent has been set for this type of temporary, contracted mobile bottling operation in a response letter dated May 17, 21 in regard to 53 Bluxome St., where a mobile bottling trailer is allowed to bottle wine at 53 Bluxome for 1 day three times per year. 2 Lol Brewing Co. on-site retail taproom is allowed under WMUO-Retail Sales Use, Sec Under the ABC Type 23 Small Beer Manufacturer license, patrons will be able to purchase and consume beer we brew on-site in our tasting room. Also, under ABC Type 23 license, patrons may purchase "growlers" of beer to go. Our tasting room will not exceed 1, square feet - well below 3% of the entire 69 Bluxome St. space. Our retail space also does not exceed any building or zoning limitations. Therefore, our use falls well within the defined retail use specifitions in Section 89.14, "a commercial use which provides goods and/or services directly to the consumer and not for resale and is accessible to the general public." Precedent has been set for a ABC Type 23 co-existing light manufacturing brewery and on-site retail tasting room by Triple Voodoo Brewing at 2235 Third Street (response letter dated July 26, 213). MUO is distinctly lled out in the Triple Voodoo response letter as a viable lotion (under similar conditions) for an ABC Type 23 Small Beer Manufacturer 3. CONCLUSION Based on the arguments and descriptions above: Lol Brewing Co. is planned to be a small, boutique brewery that is applible as light manufacturing use defined in Section 89.54(. There will be no massive mechanil operations, no 18-wheeled trucks and no noxious fumes. Therefore, this business should be allowed to operate at 69 Bluxome St. under WMUO use defined in Section 845. Lol Brewing Co. s planned wholesale sales distribution operation is a non-retail component of our business and is applible as defined in Section 89.54(b). Therefore, this component of our business should be an allowed use at 69 Bluxome St. under WMUO use defined in Section 845. Lol Brewing Co. s retail tasting room is applible as retail as defined in Section Our retail space does not exceed any building or zoning limitations, therefore should be allowed at 69 Bluxome under WMUO use defined in Section "No permanent bottling equipment will be installed within the building. Equipment would be rried out in a mobile bottling trailer on site for only 1 day three times a year" - Planning Department Response letter dated May 17, 21 in response to Ms. Dick representing City Vinters San Francisco Winery Letter of Determination dated April 27, 21. "A Department of AJcohol Beverage Control Type 23 License (Small Beer Manufacturer) may be allowed within other zoning districts assuming similar conditions of operation. These other zoning districts include but are not limited to the MUG (Mixed Use General), the MUR (Mixed Use Residential) and the MUO (Mixed Use Office)." - Planning Department Response letter dated July 26, 213 in response to Triple Voodoo Letter of Determination dated April 19, 213.

7 Most important, our business is built on the premise of enhancing the lol neighborhood. The culture we have built - and continue to build - is based on the foundation of community and edution. Our business will be a place where folks n learn more about beer, and enjoy a pint with neighbors from near and far. For the above reasons, we respectfully request that you issue a Letter of Determination finding the proposed brewery and tasting room to be an approved business for this address and district. Please do not hesitate to contact us at (415) or additional information. n!qcrewlncicqqqm if you need Best Regards, - Th Reqan Long, - ounder and CEO Lol Brewing Co., LLC Sarah Fenson, Co-Founder and CFO Lol Brewing Co., LLC

8 ROUGH SKETCH OF LOCAL BREWING CO. AT 69 BLUXOME STREET ( ) (not to exact sle; do not distribute. Areas/sections represent general area where equipment will reside) A I Dry Storage Main Office!Vork area Fermentor Area ( 1 Brewhouse+ Platform Area co M Cl) + >4 I.- I-. m Cold Storage + Serving Tanks IL Tasting Room Bath rooms ) 4- E * Area accessible for vehicle entry if needed ) 4- C/) -3 ft

These are only to be used to estimate areas of use. Areas/sections represent general area where equipment will reside.

9 ROUGH SKETCH OF LOCAL BREWING CO. AT 69 BLUXOME STREET (NOTE: These are not final drawings and they are not to exact sle and therefore should not be distributed. These are only to be used to estimate areas of use. Areas/sections represent general area where equipment will reside.) Dry Storage Main Office Desk Work area Fermentor Area (t 1 Fii ( 1 Brewhouse+ Platform Area Cn Cz (D. U) C) CU 4-. Ci) + > Q) Q) Cold Storage + Serving Tanks Tasting Room Bath rooms *Area accessible for vehicle entry if needed C) C ( 4 3 ft

Letter of Determination

Letter of Determination SAN FRANCISCO (Clerically Amended - December 30, 2014) 1650 Mission St. Sue 400 San Francisco, CA 94103-2479 December 2, 2014 San Francisco, CA 94107 Site Address: Assessor s Block/Lot: Zoning District: